A flat world economy cannot exist without technology!
Computer systems are allowing us to work collaboratively on an international scale, presenting us with valuable talent and transforming the traditional standards of work conditions.
The international workforce has allowed for a new form of talent, referred to by CXC Global in the whitepaper “Engaging the World Wide Workforce” as “critical talent.”
As the world market evolves, CXC states that it is changing from “a fundamental reliance on physical labor performed by large numbers of unskilled workers to a preponderant dependence on machines, technology, and more-highly-skilled, knowledge workers.”
This development pushes companies to source talent who are highly skilled in not only their industry but also emerging technologies, allowing for stronger global connections. This affects every area of the world economy, and most directly affects the human resource departments of these organizations.
A vital component of the international market is the increased use of traditional labor intermediaries working on a temporary basis to provide specific services to a business. CXC’s whitepaper states that;
in the contingent workforce world of the past twenty years, the dominant form of intermediation was organized around staffing supplier intermediaries.
Over time, as the use of this contingent workforce increased, this workforce supply chain became more extended, more sophisticated, and more technologized.
The increase in contingents can be credited to the expansion of opportunities available to the average company as new markets began to emerge and technology made it possible to interact with them. Staffing suppliers can source more labor in a wider talent pool.
CXC reports that while this expansion was occurring, as was the use of contract workforce intermediaries, who stand to negotiate between employers and freelance or independent workers.
These intermediaries focus on mostly legal and policy issues, such as “ensuring that a worker engaged in a specific work arrangement would be classified correctly, making sure the worker is paid and tax compliance is handled under the correct classification,” and “providing services to both businesses and workers to ensure that compliance is maintained, records are managed, and payments are fulfilled.”
Most contract workforce intermediaries tailor HR systems to the needs of the business, assessing engagement and wellness then providing the applicable services.
While these have to date been the most common business services, the flat world economy has produced the requirement for two new forms of intermediaries, defined by CXC as “Online Work Platforms” (OWP) and “Work Arrangement Services” (WAS).
OWP intermediaries provide tech platforms, removing the need for staffing suppliers and directly linking organizations to critical talent for temporary work. CXC reports that “these work arrangements have tended to originate from small businesses as opposed to larger enterprises.”
WAS intermediaries, on the other hand, enable companies to legally pay talent across borders, providing support and guidance for HR when it comes to allotting compensations and wages to temporary or international workers. These services typically work out of more than one location, and have proved to be a significant player in the modern economy.
The human resource function in many businesses is changing, mostly notably in a recruitment sense.
Businesses must ensure they are exploiting the use of technology systems to possess and sustain the refined type of talent needed to succeed in a flat world economy.
Intermediaries can make this process smoother, and in some areas of business, they are already moonlighting as HR officers.
(c) New To HR.