The multi-channel workforce is here. And it's believed to already represent 30-50% of the workforce. Discover more about the multi-channel workforce and how to manage it effectively below.
In this guide:
The multi-channel workforce is another name for the liquid workforce, where digital technology, social change and market forces are turning organisations on to a more flexible, scalable, elastic resourcing model.
It can be referred to as the multi-channel workforce as there are distinct channels used for the attraction and on-boarding of workers. These channels include:
The advantages of using a multi-channel workforce come from the improved diversity and availability of resourcing options over the traditional permanent recruitment. For example, by adopting a multi-channel strategy you immediately overcome some of the location, salary, and time-to-hire problems of hiring permanent members of staff.
The main issue resulting from managing a workforce that comes from a number of different channels is a decentralisation of reporting and management information.
In other words, if you source two different types of external resource, they'll usually end up being managed by two different systems.
And in the worst case, they'll bypass your systems entirely.
The end result is a hidden workforce, where a lack of visibility and control creates security, compliance and regulatory risk.
As discussed in the guide to overcoming the challenges of managing a freelance workforce, the resulting problems include:
Without visibility of where and how freelancers are engaged in an organisation, it is possible for 'phantom' skills shortages to appear. For example, one department can have a number of freelance software developers engaged but underutilised, whilst another department could be struggling to find and hire freelancers with the same skills.
Frequently unnecessary hiring is a by-product of the apparent skills shortages caused by a lack of visibility. It's easy to see how an organisation, in it's desire to move projects along, can hire freelancers unnecessarily when they could have unseen, underutilised freelancers already engaged elsewhere.
Where there is a lack of visibility, no single point of 'truth', it's common for an organisation to be engaged with a number of very similar freelancers, doing very similar jobs, but paying very different rates. Of course, this creates cost inefficiencies (compounded by the unnecessary hiring and underutilisation factors).
It's possible to engage a freelancer with as little as a verbal brief. Without a formal contract or statement of work, this exposes the organisation to a risk of incorrect or incomplete work being delivered.
Unless there is a system in place to remove the freelancer from accessing sensitive business information when their contract finishes, freelancers with access to internal systems or those who are included on internal email distribution lists pose a data/information security risk.
An example of regulatory risk is the IR35 legislation in the UK. If a freelancer is deemed to be a 'disguised employee', both the freelancer and the organisation could be liable for financial penalties. Without the right checks being made, it is possible for a line manager to unknowingly create an IR35 risk by hiring a freelancer for a role that looks like employment.
There are three core concepts to master in order to manage a multi-channel workforce:
Being able to make effective resourcing decisions starts with having a complete, accurate view of your current resourcing options, engagements and costs.
Any technology you use should connect and share important data. This means choosing FMS and/or VMS technologies that integrate with each other. Check out our buyers guide to choosing the right FMS for more information.
It's basic human nature, people won't adopt to something new if it doesn't offer an improvement over the old way.
A proven method of ensuring adoption is to replace cumbersome legacy (or even manual) systems with modern FMS software offering customisable onboarding, intelligent project matching, configurable project milestones and bespoke reporting.
Freelancers are not employees. They are not bound, or managed, by the same rules and it is common for hiring managers, line managers and operational teams to experience challenges as they start to engage a larger number of freelancers.
Learn more about direct sourcing in recruitment and how to manage this workforce channel strategy.