highlights for australia - fieldglass · 55%. 61%. 65%. 54%. 58%. 54%. the external workforce...

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Research in collaboration with

Highlights for Australia


Focus your forcesThe rapid growth of the external workforce—the use of non-payroll workers and contracted services providers to get work done—is one of the most important business stories of our time with far reaching implications for both employers and employees.


Get the full report at externalworkforce.fieldglass.com

48% of workforce spend in Australia is on the external workforce. It is 44% globally.

https://externalworkforce.fieldglass.com/download?utm_source=slideshare&utm_medium=content&utm_campaign=external-workforce-insights-anz



Those who manage external labour effectively find it to be a driver of competitive advantageand those who don’t risk being left behind.Our research provides an unprecedented deep dive into the ways the external workforce is sourced, managed, and deployed, and how it can pay off for a business.




We identified four key forces transforming how work gets done.

It’s about the core

Cost is not the whole story

Visibility is everything

The multi-channel workforce is on

the rise



Generatemomentum

Force One

The multi-channel workforce is on the rise



Companies are using the multi-channel workforce to get work done.




25% 45% 63% 43% 15%85% 80% 73% 68% 43%

On-demand onlinemarketplaces for

freelancers

Staffing agencies Service providers Source ourselves Alumni

The expected growth of these channels suggests an ongoing demand for external workers.Channels used to access external talent today, and expected in three years, in Australia:Respondents could select all that apply

Today In three years




Talent strategy is increasingly dependent upon sourcing strategy.

Only 25% of executives in Australia stated that they strongly agree that their organisation has a talent strategy that encompasses employees and the external workforce despite the latter comprising nearly half of their workforce spend. The global average is 19%.



Ensurecriticalmass

Force Two

It’s about the core



We would be unable to conduct business as usual without an external workforce.

It provides a rich well of talent and is increasingly critical to business strategy.

“Agree” and “Strongly agree” responses

Australia

50%

Global

46%

The external workforce has become essential to core operations.




68% 98%73% 91%

Today In three years

Australia Global

“Important”’ and “Extremely important” responsesThe importance of external workers in sourcing skills that are in scarce supply:

Digital skills and other specialised capabilities can make or break a business so meeting the demand for talent is essential.




Challenges in accessing specialised skills such as AI and machine learning, data science and industry-specific expertise is the #1 market trend for the fastest-growing companies around the world.



Acceleratevalue

Force Three

Cost is not the whole story



Controlling costs is not the principal driver for using an external workforce.



The external workforce provides benefits beyond hard numbers.



55% 65% 58%61% 54% 54%The external workforce challenges our

employees to do their best work.Our external workforce Improves our culture by

bringing in new people with differentbackgrounds and experiences.

The external workforce raises the bar for ouremployees by bringing in new sources of skills

and talent.

Many executives say the external workforce makes a positive impact on overall workforce performance and the culture of their organisation. “Agree” and ”Strongly agree" responses

GlobalAustralia



Expand yourline of sight

Force Four

Visibility is everything



70% 60% 55% 55% 53% 50% 48%65% 60% 62% 54% 68% 66% 64%Operating at fullcapacity/meetingmarket demands

Managing costs Achievingsustainability

goals/shrinkingcarbon footprint

Reducing risk Developing orimproving

products/services

Increasing speed tomarket

Increasingorganisational agility

How important is the external workforce in meeting the following business goals?“Important” and “Extremely important” responses

Australia Global

The external workforce is now seen as essential to improving business performance.




The lack of visibility into the external workforce is a serious problem for most companies.

A fundamental truth of business is that you can’t manage what you don’t measure, so these new work arrangements require a new kind of management.



Learn from the Pacesetters who are leading the pack. Around one in ten companies that responded to our survey demonstrate markedly superior performance in managing and extracting value from the external workforce.



They stand out in three important ways:

Pacesetters are charting the way forward for others in this still evolving field.

Effective management of the external workforce

Business impact of these workers

Visibility into the external workforce



Pacesetters are much more informed on details regarding their non-payroll workers and services providers and are more likely to say that their C-level executives are informed as well.

Visibility: Pacesetter executives are more in the know.



83% 81% 71% 61% 55% 43%43% 46% 44% 43% 33% 34%45% 43% 40% 43% 25% 30%

Responsibilities Labour rates Compliance withnegotiated rates

Quality of work Access to systemsand confidential info

Who they are

“Highly informed" responses Pacesetters Non-Pacesetters Australia

How informed are you personally about the following details of your non-payroll workers?




84% 82% 75% 60% 52%49% 43% 46% 40% 42%43% 28% 43% 33% 38%

Responsibilities Who is doing the work Duration of work Quality of work Access to systems andconfidential info

“Highly informed" responses Pacesetters Non-Pacesetters Australia

How informed are you personally about the following details of services providers doing work for your organisation?



Effective management: Pacesetters show how much other companies could benefit from more effective management.Pacesetters find it much less challenging to perform a wide range of external workforce management duties more effectively.



29% 40% 42% 43% 51%59% 61% 57% 54% 61%50% 35% 28% 43% 40%

Inconsistencies in talentor project quality

Managing digital/cybersecurity

Compliance with local taxlaws, labour laws,

regulatory, etc.

Finding high-qualityresources at the right rate

Tracking resource andproject quality

“Really” and ”Extremely challenging" responses Pacesetters Non-Pacesetters Australia

How challenging are the following aspects of managing your external workforce?



Business impact: Pacesetters stand out when it comes to realising value beyond cost control.Pacesetters reap more business value from their external workforce.



“Agree” and “Strongly agree” responses – global results

88% 59% 58%

Our external workforce enables us to improve our company’s overall financial performance

79% 52% 70%

Our external workforce is a keylever in enabling our business

performance

58% 46% 63%

Our external workforce helpsus compete in a digital world

Pacesetters Non-Pacesetters Australia

Our external workforce enables us to improve our company’s overall financial/business performance and/or helps us compete in a digital world.




The external workforce: is it on your C-suite agenda?

Companies should increase their visibility into the

external workforce—and the total workforce—to better thrive in a digital world.

These vital assets are critically undermanaged. Shouldn’t the

same rigour you use to manage your employees be applied to your contingent workers and

services providers?

The external workforce should be a C-suite imperative, given its size and that it enables such animpressive range of business

outcomes.




Take action today.Capture the full value of the workforce transformation by managing your external workforce more effectively.

Ensure your leadership has visibility into the scope, activities and quality of your external workforce, the challenges at hand, the benefits realised—and those that could be realised.

Know the true value of your external workforce, whether they are most critical to getting products to market faster, providing difficult-to-access skills, driving digital transformation efforts, or controlling costs.

Anticipate the skills you will need in the future—and those in short supply. Determine a strategy to acquire, retrain, or source these skills through the external multi-channel workforce.

Apply workforce strategies to all labour sources, both external and traditional. Embrace the external workforce for the skills and ideas that this talent brings and make them a part of organisational objectives and purpose.


Oxford Economics conducted an in-depth telephone survey with 800 senior executives from mid-sized to large companies in 16 industries and 14 countries plus the Nordic region of Europe in late 2017 and early 2018. The survey focused on labour trends, including the use and management of an external workforce, today and in the future, and its impact on business and financial performance.

About our research

CONTACT US

Have questions about the research?

or ACCESS THE FULL REPORT

https://externalworkforce.fieldglass.com/resources?utm_source=slideshare&utm_medium=content&utm_campaign=external-workforce-insights-anz#section-2


highlights for australia - fieldglass · 55%. 61%. 65%. 54%. 58%. 54%. the external workforce...

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