The world of work has undergone huge changes over the past decade, driven by technological advances, automation and changing employee expectations. Flexible workforce management has become more and more important for companies as the ability to forecast workloads has become more complex and the need to react quickly has increased. How have these changes affected traditional staffing models and what new solutions do companies now need?
Work planning – are long-term contracts outdated?
Traditional staff leasing is based on long-term employment contracts, where workers are usually recruited full-time and for a longer period. This model was well suited to the industrial economy of the 20th century, where production volumes were stable and labour needs predictable. Nowadays, however, in many sectors – such as retail, logistics and services – labour supply is more dynamic and depends on external factors such as the arrival of cargo ships in Europe, the weather or even paydays.
In the European Union, 46% of workers say that their job does not offer enough flexibility, especially when it comes to working time and place. This is backed up by Eurostat data showing that self-employed workers have much more flexibility than salaried workers when it comes to taking short holidays or changing working hours. Flexible workforce management allows companies to adapt to constantly changing needs and to reduce the risks arising from rigid working arrangements.
GoWorkaBit’s experience with hundreds of companies in Estonia shows that we no longer forecast labour needs for a year or even a quarter. Often a month is already too long a planning period and companies look at their labour needs on a weekly and daily basis – how much, who and where they need.
💡 Read more: Has traditional labour renting had its day?
Automation and increased flexibility
A McKinsey study shows that more than 50 million jobs in Europe could change or disappear over the next decade due to automation, meaning companies will have to adapt their workforce strategies. Many sectors that have traditionally hired workers on a long-term basis are beginning to favour more flexible solutions. In the retail and logistics sectors, workloads can fluctuate not only seasonally but also during the day, depending on demand. Therefore, companies need workforce models that can react quickly and adjust staffing levels to current needs.
Flexible workforce management and use of technology
Today’s businesses need to embrace new workforce management solutions that use technology and smart workforce planning to forecast workloads and find the right people at short notice. Technology platforms enable companies to monitor workforce needs in real time and adjust staffing levels to the current situation. This is very different from traditional staffing, which does not offer flexibility, responsiveness or the ability to make changes at short notice.
Flexible workforce management can help companies increase productivity and employee satisfaction. Surveys show that 65% of HR managers believe that flexible working increases business efficiency, while rigid working arrangements can reduce employee engagement and competitiveness.
Summary
Traditional staff leasing no longer meets the dynamic needs of the modern world of work. Companies that want to stay competitive need to adapt to rapidly changing workforce demands by offering more flexible solutions that allow them to manage their workforce more efficiently and respond faster. Flexible workforce management is not only a preference for employees, but also a necessary strategy for companies to optimise labour costs and maintain a workforce balance that matches workloads.
Sources:
- “Trends in flexible working arrangements”, CIPD – Source.
- “Flexible Working Trends 2023”, Neeyamo – Source
- “Flexibility at work – statistics”, Eurostat – Source
- “The future of work in Europe”, McKinsey – Source.