TheCareerGrid

One of Australia’s top HR experts warned that ‘Employers who automatically hire contractors to plug their skills gaps risk being left with a redundant workforce’.

Alex Badenoch, a former group executive at Telstra, talks about skills development and how there is no substitute for on-the-job training. “I think the best training is experience. There’s no replacement for it”. Companies who rely on outsourcing key roles to contractors fail to improve their subject expertise within permanent staff.  

This really resonates with me. Of course, like many things, the outsourcing model is a great method of working or plugging gaps, and the downside is what you are outsourcing, or what you are bringing contractors in for.

If you are hiring a contractor, or outsourcing your payroll, and you own a graphic design business, that probably works better than directing employing a permanent payroll officer, right? Or if you are creating a new software and you’re not an IT company, yes it makes sense to outsource this function. 

But if you are hiring contractors to start up or complete projects for you each time you have one, this might cause more skill gaps then you already have. Your graphic design company can benefit from this skill set being embedded into the business by a current employee. 

This links back to lots of aspects of people and talent that were a big push in 2023. Things like learning and development and skills based recruitment and talent. 

So, how do you know which employee might already possess these skills? Especially in a larger organisation. Internal advertisements are a good way to start. You can quickly deploy people where required, and also utilise their skills to teach and support other staff members. 

But what if they learn everything and then leave? If you are thinking this way then you are thinking about it all wrong. People and Talent strategies are not isolated. You need to embed these strategies into your culture. People might learn it all and leave, people might also learn it all and stay, and teach others, and continue the positive cycle. You might find yourself in an environment where you don’t need to rely on contractors to come in and complete work that staff are capable of performing. 

What are your thoughts on the reliance of outsourcing in your organisation. Does it work? Or does it hurt?

We would love to hear from you. If you have a question you would like us to answer, send it in to info@thecareergrid.com

Content derived from the Australian Financial Review Article titled ‘If you want a skilled workforce, go easy on hiring contractors’.