Tuesday, October 23, 2007

Is Talent on Demand all it's Hyped Up to Be?

Welcome to the plug and play workforce. In a tough market environment, the argument for trading fixed-burn compensation for variable compensation is compelling. That said, there are unique challenges in managing an independent workforce that doesn't really, well, work for you.

Creating and growing a productive corporate culture is hard enough on the inside. Gathering an army of independent contractors emailing strategic plans in their bathrobes and getting them to work as a team isn't exactly a no-brainer. And you can't just buy your way out of this quandary either.

Even so, the strategy of having the flexibility to scale up and down as needed, "rent" skill sets with the click of a mouse and get outside of your internal politics, to go "beyond the wall" has potential.

Buy In At The Top

If you don't have key people inside the company that have a vested interest in navigating the stumbling blocks to building a high performance remote workforce, buy a lottery ticket. Are your bosses in the C-Suite on board with the initiative? Do your people know they are behind it?

Like any business process, outsourcing strategic work to independent consultants carries some risk of competitive conflicts that you probably don't even see.

Sleeping with the Enemy

It is reasonable to assume "pay as you go" hires are working on the outside for your competitors or partners and allies of your competitors. "Indies" are a tight knit community that share information from across the invisible walls. You can't just slap a confidentiality agreement on their desk and hope for the best. Let's be real. People talk.

Commoditizing Intellectual Capital

Ok, some Instant Message. Or send an Avatar. Regardless of how information travels, it does so in real time at a very rapid clip. Instead of negotiating to get the cheapest price per thousand brain cells, pay a premium for full time accountability while building deeper ties to the company that make Indies feel that they are valued team members.

Barbarians at the Gate

Invariably, there will be resistance to "outsiders" from your "inside" team. That's why support at the top is so critical. Senior management needs to be intimately involved with these delicate relationships to ensure that a territorial middle manager doesn't torpedo your initiative by alienating your contractors.

In all fairness to the employees under you, they may have legitimate concerns about channel conflict, cannibalization and job security. It is management's responsibility to address them. Your people may even save you from costly mistakes almost as often as they give you a migraine. So, is Talent on Demand all it's cracked up to be? I guess it depends on who you talk to, who they talk to and how well the process is managed.

This commentary and analysis was written by Andrew Ellenberg, group executive producer for Entercom Communications Corp. which owns and operates News Radio 980 KMBZ. Copyright 2007. All rights reserved.