The moment of Interim Managers and Freelance
1. Environmental turbulence
Companies are currently facing a globalization that is increasing what is called environmental turbulence. (According to the Ansoff matrix).
We are in the changeover from the “Change to Discontinuous” phase. The environment is becoming more complicated and the needs for talent are changing. Faced with this phase change, companies are becoming more and more organized according to what the market needs. It is moving from clear hierarchies to groups created to respond to market demands. The adaptation to these has to be very fast and with the lowest possible cost.
2. Transaction costs
Transaction costs are a very important factor. We are talking about costs in time and money. These costs can be classified into three types: ex ante costs, agreement cost and ex-post cost.
The cost of hiring freelancers, both in time and in money, is much lower than that of a full-time employee. The cost of finding, negotiating, formalizing, maintaining, managing and terminating the collaboration is, for a freelancer, a fraction of what it is for a permanent executive. And in such changing environments as the current and future ones, there is an increasing need for different professionals. And, if you want to remain competitive, that change must be carried out with the lowest cost in terms of time and money.
3. Planning considerations
The planning of the workforce that is going to be needed becomes more complex and relevant. In planning the workforce, two variables must be considered: the uniqueness of human capital and its value to the organization. According to the degree of importance of these variables and the combination point of both, the type of recruitment varies.
Considering the different combinations in the matrix, we can conclude that companies will increasingly need professionals in the “flexible layers” and less and less in the stable core of the organization.
In regions like Benelux, the development of freelance is moving very quickly. At the moment, it accounts for 21-22% of executives and pro- fessionals and it is expected that before the end of this decade it will reach 28-30%.
There are no figures on Spain, but the trend is clear and it is moving forward.
In order to remain competitive in this new economic context, companies need to focus on their key activities. Which implies that they have to define what is really important and create the most efficient organization possible.
Anything that departs from the issues that enter into this very narrow fo- cus will be managed by projects responsible for “flexible layers”, whether internal or external and, in this case, the external layers and if they are Executives, will be freelance.
Companies are increasingly looking for flexibility in their management positions. Freelancers are becoming increasingly important to these companies. This flexibility is valid for effective and efficient navigation both in calm waters and in turbulent situations. Freelancers are, increasingly, the oil that lubricates the engine of the economy.
…Companies are increasingly looking for flexibility in their management positions