A trend we have seen gain increasing popularity in recent times is that of “renting” employees. Companies have found that it is often beneficial to hire freelance experts or even outsource entire teams for one-time purposes instead of hiring full-time resources that will most likely become expendable to the organization once the job has been done. We can even call this phenomenon the HR counterpart of the ‘’Just in Time’’ concept where resources are hired on a need-basis, thereby reducing the cost to company.

These freelancers are usually individuals who want the flexibility to maintain their own independent lives while not being bound by a tight contract. Therefore, this arrangement proves to be a win-win for the outworkers and companies involved. The companies have access to resources as and when they are required while not having to deal with the tedious, time consuming procedure of hiring permanent employees or dealing with dismissals later on. At the same time, it suits the freelancers who seek to pursue other objectives in life, while earning a living.

Contractual employment helps to augment the workforce when the need is short term – for example, when a company requires additional resources for a single project but does not want to expand its capacity permanently. It creates flexibility for the employer and freelancer, enabling both to pursue their larger goals. Employers can tap into niche, expert talent on a need-basis, leading to greater versatility of talent. This no-strings-attached concept also makes it easier to comply with various regulations while ensuring that the core culture and values of the organization are more stable and long-term.

What we do at Dale Carnegie India is a perfect example of the success of such a strategy. To meet our vast training requirements, we have hired a pool of freelance trainers. This gives them the elasticity to explore other avenues of work and pursue their own goals. At the same time, it saves us the task of hiring full-time trainers, which would be underutilized if hired on a permanent basis. This arrangement allows us to meet our training needs as and when they arise and has enabled us to explore business opportunities we didn’t have the capacity to fulfill with our limited training resources. It also saves us the cost and effort of getting a full time employee on board. Moreover, we are able to access a wider diversity of talent, as they come from different industries, have varying experiences and are able to generate a more versatile debate.

During the global financial crisis several European countries engaged in ‘lending’ and ‘borrowing’ employees temporarily. At the time, most organizations were refraining from increasing their capacity; however their need for certain skills still existed. Other organizations that had the resources would “lend” their employees or teams to companies that needed them for a short period, thus preventing layoffs and dismissals within their organizations. This helped tackle the daunting issue of unemployment and saved organizations excess costs associated with hiring a full-time team for a single requirement.

While workforce mobility presents all the previously illustrated benefits, it is vital that organizations implement the model tactfully. Ultimately, the individuals they hire on a contractual basis will be contributing to the overall productivity of the organization and it is crucial to ensure that they are satisfied and engaged. Findings from Dale Carnegie Training India’s Employee Engagement Study (2014) revealed that one of the emotional attributes of engagement is feeling valued. As such, the organizations mindfully need to treat their employees - temporary or permanent as valuable people with skills rather than people with valuable skills.

The bottom line is that in a world in which vast, diverse talent is available at every nook and corner and where companies are rapidly expanding and innovating, an ecosystem that allows for both parties to thrive while boosting employment opportunities, is the future.