Global companies are seeing a dramatic shift away from the classical employment model of hiring full-time employees to work a typical 9 to 5 hour shift to a new collaborative, transparent, technology-enabled approach.
What the open source model did for software development, the open talent economy is doing for work. This “open talent economy” approach is outlined in The Open Talent Economy report launched by Deloitte Touche Tohmatsu Limited (DTTL).
Today’s evolving workforce is a portfolio of full-time employees, contract and freelance talent, and, increasingly, talent with no formal ties to a company at all.
People move from role to role and across organisational boundaries more freely than ever. The younger, connected, globally mobile people are managing their careers on their own terms. Where their parents may have sought job security, they prize engagement and meaning.
This means that organisations must reinvent their sense of what they have to offer talent and even what it means to “have” talent in the first place.
“The open talent economy represents a recognition that companies are ecosystems and networks," says Jeff Schwartz, global leader for marketing, eminence, and brand human capital, DTTL. "Increasingly, we are seeing companies recognize that much of the talent that is critical to their success do not work directly for them, but may be contractors, parts of joint ventures, independent workers or parts of open source talent networks: it is critical to manage talent beyond the balance sheet.”
The Open Talent Economy report outlines five core processes which are forecasted to become the start of a new framework for planning and managing talent across the open talent economy:
• From plan and acquire to design, brand, attract and access - The open source economy will present new challenges to workforce planning.
The historical model was focused on filling capability requirements by hiring people, full or part time, to work for the company as employees, with the accompanying expectations of an organisational livelihood and career. In contrast, the emerging challenge is to plan and design work for, and to access, workforces of all types – on the balance sheet, in joint ventures, in contract and outsourced relationships, freelancers and open source.
• From training and deployment to participation, learning and leadership networks – In today’s rapidly evolving business environment, companies are recognising the value of moving from command-and-control training and deployment approaches to new models built around projects and networks.
In a world of continually changing project portfolios, the demand moves from outfitting and deploying employees to creating learning, leadership, and work networks that become the backbone of work structure and employee development.
• From performance management to performance engagement - Companies will need to develop new measures, new processes and new expectations for what success looks like on all sides of the employer-worker relationship.
As the workforce extends to third-party organizations, individuals and the human cloud of ideas and effort; performance management will face the challenge of evolving to measure engagement, development, quality, interest, access and output.
• From compensation and benefits to experience and rewards - The historical focus of total rewards programs has been on grading and sorting employees into bands while designing compensation structures and benefits schemes that generally prioritise health and retirement benefits.
There are at least two emerging challenges for total rewards programs in the open talent economy.
The first is to keep pace with the rapidly changing expectations of full-time employees across all the generations in the workforce, from veterans and boomers to millennials.
The second challenge for total rewards is to begin the complex process of creating rewards, meaning, and careers for employees who are not on a company’s balance sheet.
• From company employee value proposition to ecosystem talent brand - As companies deliberately design and build talent networks that incorporate on-and off-balance-sheet workers, freelance workers, and open source talent, the corporate brand and employee value proposition will need to be reengineered with an eye to attracting and engaging multiple sources of talent.
These five re-imagined talent processes will help organisations to engage and leverage people across the open talent ecosystem, claims Deloitte.
However, there are other important conditions for success that companies should plan for such as: understanding requisite infrastructure changes, risks, global tax implications, strategic alliances, and entirely new governance arrangements.
“Talent decisions you make today will determine what kind of organization you run tomorrow,” says P Thiruvengadam, senior director, Human Capital Consulting, Deloitte in India. “Indian companies will do well in understanding the rapidly changing global demographics and demonstrating how it can integrate capabilities into the global talent supply chains of multinational companies.”