Mumbai: Global companies are shifting away from the traditional model of hiring full-time employees to work 9-to-5 shifts to a new collaborative, transparent and technology-enabled approach, says consulting company Deloitte Touche Tohmatsu Ltd.
The so-called open talent economy is similar to the open source model that transformed software development, Deloitte said in a report released on Thursday. The evolving workforce is a mix of full-time employees, contract and freelance talent, and, increasingly, talent with no formal ties to a company.
“The open talent economy represents a recognition that companies are ecosystems and networks. 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,” Jeff Schwartz, global leader for marketing, eminence, and brand human capital at Deloitte Touche Tohmatsu, said in a statement.
The Open Talent Economy report outlines five core processes which are forecast to become the start of a new framework for planning and managing talent.
These include a shift from the traditional planning and acquiring of talent to designing, branding, attracting and accessing it; from training and deployment to participation, learning and leadership networks; from performance management to performance engagement; from compensation and benefits to experience and rewards and from company employee value proposition to ecosystem talent brand.
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 organizational livelihood and career. In contrast, the emerging challenge is to plan and design work for, and to access, personnel of all types – on the balance sheet, in joint ventures, in contract and outsourced relationships, freelancers and open source.
In a rapidly evolving business environment, companies are recognizing 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, Deloitte said.
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.
There are other important conditions for success that companies should plan for understanding requisite infrastructure changes, risks, global tax implications, strategic alliances, and entirely new governance arrangements, the report said.
“Talent decisions you make today will determine what kind of organization you run tomorrow,” said P. Thiruvengadam, senior director, human capital consulting, at Deloitte 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,” he said in the statement.