Managing workforce ecosystems in the future of work

For time immemorial, the definition of employment has largely been dictated by employers. After all, they are the ones with the vacancies, it makes sense that they have the biggest say over how workers are classified and categorized. Right? Well not for much longer it seems.

Thanks to the rise of remote working, the gig economy, freelancing, and crowdsourced contractors, the idea of what it means to be ‘employed’ by a company is changing.

A study conducted by MIT Sloan Management Review has discovered that there is now a new way to consider workers, one that stretches beyond the confines of “employee.” And it has been dubbed workforce ecosystems.

What are workforce ecosystems?

Essentially workforce ecosystems are a reflection of the changing workforce; a holistic way of looking at those who contribute toward company goals outside of the traditional full and part-time roles. But managing employees and managing workforce ecosystems present fundamentally different challenges.

How workforce ecosystems present a new strategic challenge

To date, the way in which human resources have been able to manage and support employees has created a singular successful blueprint. One which can be widely replicated across multiple distinct industries. But areas from talent acquisition and performance management, to benefits and employer-employee relations, could require addressing and eventual reform.

This is because the foundational roots of these long-held practices are based on the concept of individuals joining a company for the long haul and gaining more rewards, perks and privileges as their role evolves. And this simply isn’t a reality many find themselves in.

Given contemporary worker expectations, technological advancements, and new career intentions, organizations are presented with two paths: to proceed as normal, continuing to manage disparate resources (such as internal employees, external workers, and complementor companies) with different, sometimes overlapping, systems. Or they can invest in a new approach, that speaks to and unifies each disconnected element.

But it’s worth noting, this isn’t a one-stop fix. It presents a wealth of complexity and nuance which not every company will want to readily adopt. One only has to look to regulatory compliance, pay equity, fairness acts, and a host of other mandatory legal requirements, to see how quickly matters become complicated.

So where’s the strategic value?

By redefining structures and realigning focus, workforce ecosystems are able to utilize any individual, organization or technology that creates value for the company. And by better understanding reliance and interdependencies, companies can develop best practices for the wider workforce.

Well managed workforce ecosystems also double as a cost saving measure. As tracking and maintaining various discordant systems can be reduced and sometimes removed altogether.

There’s also the fact that a company with a keen eye on the future of work, which takes active steps to pioneer and innovate, signposts itself as a progressive thought leader. And subsequently signals to workers of every variety that no matter how you choose to work, your organization is prepared to make the concessions and adjustments to ensure both parties fully benefit.

How to effectively manage workforce ecosystems

So how do forward looking organizations evolve their talent processes to move away from being primarily employee-centric, and closer to a diverse community of workers and resources? The first step is a reconsideration of several traditional areas.

The language we use, for example, must change. To avoid ostracizing internal and external personnel, we have to step away from narrow, restrictive workforce planning. Additionally, talent acquisition could also step toward an integrated, multifunctional process that spans across HR, Procurement, and IT teams.

Effective workforce ecosystem management also affects our understanding of career paths. Investing in opportunity marketplaces and other external talent marketplaces, helps reveal individual interest and experience.

What characteristics do effective workforce ecosystem leaders possess?

Reorienting for team-based and project-based goals takes a certain type of management mindset. An adaptability and excitement for the prospect of something new, which will revolutionize how work is assigned and completed.

Workforce ecosystem leaders should be able to co-ordinate cross-functional management and interdepartmental objectives and targets. These leaders will also be consciously aware of the challenge ahead and already be investigating the best way to implement sizeable changes. Including the hiring of new relevant posts. According to the initial MIT Sloan Management Review study, 79% of what they call Intentional Orchestrators, feel they will be able to fill these vacancies in the next 18-24 months.

And these new hires shouldn’t simply be seen as individuals conforming to the standard definition of employment thus far. A greater dependence will be given to finding external workers with specialized skills. And with these skills will be the challenge of new systems for verifying credentials and authenticating experience. But internal workers shouldn’t see this as a threat; these roles are all designed to ensure the shared team and project-based goals are being met faster and more efficiently.

This business strategy is a very new one and still in its infancy but, at this crucial moment, businesses have a signpost in this study. A marker flagging their attention to explain there is a very sharp turn down the road and preparations should be made now, to careen gently around the corner.

To stay ahead of the curve means seeking out advice and insight from thought leaders. Check out the list of thought leaders speaking at UNLEASH America 2023.