For most professional and B2B services firms, human capital constitutes the largest single cost driver of business activities. The current pace of change across consulting, legal, accounting services, and other professions is driving massive shifts in human capital requirements, skill transformation needs, and talent shortages. At the same time, top-tier talent is increasingly harder to recruit, develop and retain. Professional services firms are recognizing that they are not immune to the Great Resignation.
That’s why more and more firms are beginning to leverage a mix of employees and contingent workers to meet their clients’ needs, deliver competitive services and solutions and transform themselves. An extended workforce approach helps firms reduce fixed costs, leverage specialized skillsets for varying periods, increase capacity and individual flexibility or even innovate and grow in new markets. Building management capabilities for an extended workforce that combines internal and external resources will define the success of many professional services firms in the coming years. This article outlines some fundamental building blocks for designing a workforce ecosystem strategy and management capability.