By Doug Edmonds, Head of Sales and Solutions APAC, TestMSP
I met with six clients in Queensland, Australia recently and all six were in the process of restructuring. It was a similar story at a recent HR forum and then again at a global procurement conference. Agility, change, adaptability; these are words I’m hearing again and again from clients, colleagues, and industry commentators, and it reflects a business environment that feels anything but certain. According to PwC, 2023 saw a 68% increase in bankruptcies compared to the previous year, as companies struggled with higher borrowing costs and economic pressures. This trend has continued into 2024, with further increases in restructuring activities anticipated as many companies face ongoing financial difficulties and limited options for relief.
Uncertainty seems to be a connecting thread across the globe right now, and as our 2024 Test Global Re:work Report highlights, more than half of executives say poor workforce planning is holding them back. Senior leaders everywhere are looking to dial up workforce agility to ensure they can navigate rising inflation and global economic downturn.
But what does an agile workforce look like? How do you nurture individual agility? And what tools and technology do organisations need to invest in to ensure they’re flexible enough to weather incoming storms? In this blog, I share three ways organisations can begin to build the foundation for long-term agility.
Reassess your workforce mix.
Finding the right labor mix has never been more important. An organisation’s blend of contract, freelance, and permanent talent – as well as its use of automated tools – can define how well (and how fast) it responds to change. But you can’t be truly agile without an effective contractor base. Growing the contingent workforce can empower leaders to streamline quickly in leaner times and scale up rapidly to respond to new opportunities. We’re now seeing an increased demand for contingent labour in markets that have traditionally preferred permanent talent, as leaders look for ways to bake adaptability into their business model. It can also be useful to reassess the location of key talent. Not only does this approach offer greater efficiency and value for money, but it can also help organisations to grow their local market presence and knowledge.
Develop individual agility to power workforce agility.
Lots of business leaders think about agility from a structural or macro perspective, and this is an essential part of shaping an agile workforce. But to unlock true adaptability, it must be baked into your culture. People who are comfortable with change, feel empowered by new challenges, and can respond quickly to new environments are invaluable in an agile workforce, and these skills should be sought out and nurtured. It’s also vital to ensure the search for agility doesn’t lead to burnout. Asking workers to do more with less repeatedly can overstretch and exhaust them. A true, long-term, agile workforce strategy must work for both a company and its people.
Choose the right strategic workforce partners.
Transforming workforce agility across a global business is rarely something you can do alone. It’s crucial to choose consultants and strategic partners who understand your world, your business environment, and your people. Technology that increases internal workforce visibility is a great place to start, as it’s tough to power effective workforce transformation without a clear understanding of where you are today. Analytics tools that allow for further insights and future planning are also becoming increasingly valuable in an uncertain world.
At TestMSP, we help global organisations understand and effectively transform their workforces to meet business goals and increase agility to navigate complex challenges. But we’re much more than consultants – we’re a partner you can trust to give it to you straight. We know the industry like the back of our hands, and we know how frustrating it is when providers over promise, but then offer a one-size-fits-all workaround. That’s why we work to the idea of ‘no fluff, just fit.’ We get to know your business intimately, so we can provide honest, truly tailored advice – giving you the agility you need to thrive.
Get agile or get left behind.
Workforce adaptability is so important right now. Yes, it’s an environment of intense change, but change opens up huge innovation opportunities, and those leaders and organisations who push boundaries now will reap greater rewards in the future. If you’d like to chat about workforce agility or find out more about the ways TestMSP supports organisations in your region, our experts would love to connect.