Executive contracting and the market dynamic
Market volatility and uncertainty are creating challenges for businesses globally, but nowhere is this more evident than in HR. For HR leaders in Australia, this volatility is even more magnified by the shortage of talent across many key sectors.
Access to specialist skills and niche expertise is top of the agenda, but also needs to be balanced against the numbers to manage risk. Executive contracting can help an organisation source and leverage specialised talent when and where it’s needed. This is why Australian companies are increasingly moving towards a contracting strategy for executive roles.
According to a recent Cornell HR Review article, 67% of senior executives are planning to maintain ‘leaner’ organisations by outsourcing work or hiring contract workers. Meanwhile, IBM is forecasting that 50% of global CEO’s expect to increase the number of contingent workers over the next three years.
Executive contracting defined
Contract or contingent staff provide specialist skill sets based on an organisation's specific needs. Usually based on hourly, monthly, or all-inclusive rates, contract talent can be hired to address specific projects or broader, longer-term business requirements, ensuring that businesses don’t lose momentum and revenue streams due to staffing restrictions. Contracting also opens the door to a pool of quality professionals with rich and relevant experience that may otherwise be hard to identify and attract. Analyst firm, Aberdeen Group backs this point stating that, ‘Most companies view non-permanent labour as a high-value strategy.”