Is Traditional “Temping” Dead?

As IQN and our customers know, workforce management has changed dramatically. In the U.S., we’re starting to see a shift toward a non-traditional way of work. Workers are looking for greater flexibility and control over where and how they work. Employers are looking for greater flexibility and control over how they complete projects and respond to market changes.

IQN CTO Sherry Hammons explains how IQN technology is changing to support this shift in the article A Foundation for the Future of Total Workforce Management (in this issue of IQN Monthly). On the other hand, in Europe and around the globe, that shift has already happened and is moving ahead at full force.

So why is the European Union so far ahead of the curve with its use of non-employee workers? We spoke with Manfred Vogels, IQN’s VP of Business Development in Continental Europe, to get his perspective.

Q: What does the rise of the contingent workforce look like?
A: If a company hires a temp worker, there are all kinds of risks. For example, in many European countries, if temp workers are employed for more than 24 months, they can claim a permanent job. The employer then risks non-compliance for having incorrectly categorized that worker. If you reclassify the temp worker as a freelance or contract worker, their cost may go up, but the compliance risk is addressed.

The problem with calling non-permanent workers “temps” goes beyond compliance, though. The traditional concept of a temporary worker is that it’s someone who is working to find a permanent job. That concept is history. Today, many workers want to have the flexibility to make ongoing choices in their careers and their lives.

Q: Why is Europe so far ahead of the U.S.?
A: A lot of factors come into play. One major factor in the shift has been that labor laws across different countries vary tremendously. For example, traditional temp labor has been allowed in the U.K. and the Netherlands since the early 1950s. In Italy and Spain, it was not allowed until 2002 or 2003, so there is a huge disparity in the way non-employee labor is treated.

To cut through this complexity, both employers and workers needed to ensure they had the necessary flexibility. European companies needed a way to classify workers so that they could comply across all borders and operate more efficiently. The need for this was urgent, so that is one main reason I feel Europe is ahead in this shift.

Q: How does IQN technology bring value to this flexible model of workforce management?
A: IQN Compass brings all of management together in a single place — not just employees and non-employees, but total workforce management. The technology needs to roll in the direction of the flexible workforce, but it needs to go beyond our needs today. Organizations don’t just need to have a process for managing workers from requisition to paycheck; they also need the capabilities to deal with different styles of engagement.

For example, the SOW module in IQN is and will continue to be very important to supporting our new model. But beyond the ability to engage workers in an SOW contract, organizations need to be able to clearly see when the SOW is a better choice than another form of contract for completing a specific project.

For this type of decision making, instant analytics are critical. The ability to make data visible during decision making is groundbreaking. It enables you to examine your options and make better decisions in the moment that they’re needed. It goes beyond running simple reports. It means you can run scenarios that compare outcomes if different decisions are made. For example, what is the result if an entire piece of work is outsourced versus hiring several temp workers to come in and do the job? Those are the kinds of decisions IQN Compass will enable.

IQN Compass will also provide a complete overview of who is working where, with what skillsets. This fluidity and visibility is especially critical as organizations are taking a new view of who is responsible for workforce management. Today, multiple parts of the organization have a stake in hiring outside workers. So now, your stakeholders in HR and procurement, for example, can both have access to talent information.

It’s game-changing to know that whenever you need talent, you have access not just to outside resources, but to people who are already working for you or have applied to do a job for you in the past. Those kinds of capabilities are going to help our customers to be really effective at managing a very diverse and mobile workforce.

Everything IQN is doing supports the goal of bringing clarity and control to the complex, shifting landscape of workforce management. Learning from our European counterparts is just part of how we work to solve not just today’s challenges, but tomorrow’s.

[cta]How well is your company able to support the shift to the new global workforce? Lend your voice to the conversation!

We invite you to be an active part of the IQN Community. Share your questions, concerns, insights and creativity by contacting events@iqnavigator.com.[/cta]