Deloitte alternative workforce

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Deloitte study reveals the alternative workforce is becoming mainstream

The concept of an alternative workforce includes the employment of contractors and freelance/independent, gig, and crowd workers.

Deloitte alternative workforce

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A study of Global Human Capital Trends, undertaken by Deloitte, has revealed that alternative workforce models are steadily becoming the new-normal in South Africa’s job market.

While the trend has already transformed the way global corporations and small businesses achieve their operational goals, focus on the innately human aspects of production is beginning to take hold in South Africa. From traditional conglomerates to start-up enterprises, the concept of humanising workflow by optimising the employee’s experience has now entered the mainstream.

Businesses understand, now more than ever before, that a positive, personalised client experience – held as the gold standard of consumer-based commerce – is intrinsically linked to the work environment and the ethos incubated amongst staff.

The world is rapidly changing, and with it, traditional notions of employment and production in the new-age of hyperawareness.

This expansion of consciousness extends beyond the consumer. In this year’s Global Human Capital Trends survey, Deloitte discovered how an amalgamation of tailored employee experiences and the adaptation of alternative labour fed into the modern, mainstream work environment.

According to Deloitte, reliance on alternative labour is most prevalent in the following sectors:

  • IT
  • Operations
  • Marketing
  • Innovation/research and development (R&D)

What is an alternative workforce?

The concept of an alternative workforce includes the employment of contractors and freelance/independent, gig, and crowd workers. As noted by Deloitte, the idea of alternative labour is expanding across all sectors, becoming the new-normal:

“For many years, people viewed contract, freelance and gig employment as ‘alternative work’ options, considered supplementary to full-time jobs.

Given the growing skills shortage in South Africa, leveraging and managing ‘alternative’ workforces will become essential to business growth in the years ahead.”

An alternative workforce allows businesses to diversify traditional methods of production. This bespoke approach is not intended to nullify the fundamental values of a core workforce but rather to complement it and operate in unison to achieve optimum results.

Why are businesses choosing to invest in alternative workforces?

Central to the concept of an alternative workforce is tailored talent management. Skilled contractors, specialising in their respective fields, offer a massive advantage to companies looking to expand and improve operational effectiveness. In short, expertise-for-hire has become an integral part of the corporate arsenal.

According to South African respondents surveyed by Deloitte:

  • 66% use contractors because of scarce technical skills
  • 50% use contractors and independents for their innovation and design skills
  • 52% use contractors to deliver capabilities that are hard to recruit/retain

Deloitte explains that while use of alternate labour is gaining more and more traction within South Africa, many companies expanding their repertoire are still falling short of the mark, especially in terms of managing contractors. The Global Human Capital Trends survey states:

“Even among organisations with policies and standards, our experience suggests that a strategic, enterprise-wide approach is rare.

What is needed is a wholesale rewiring of how organisations operate in terms of alternative labour – one that allows it to connect the appropriate talent with the appropriate roles, no matter how that talent is sourced.”

Deloitte Global Human Capital Trends study

The study of Global Human Capital Trends, published by Deloitte, looks at three main categories related to a successful social enterprise, with strong attention to reinvention with a human focus:

  • The future of the workforce
  • The future of the organisation
  • The future of HR

The study reveals, with data, how these categories are influenced by global trends in the corporate sphere. The study is of specific significance to South African business owners because of its local surveys and expert analysis.

To find out more, visit Deloitte’s online portal and download the South African Human Capital Trends report from the right-side panel.