Blended Workforce in Software Development: Why is it Popular (and How to Get Started)
In November 2016, Forbes predicted that more companies will build a blended workforce by 2017, but the pandemic changed the paradigm. The Covid-19 pandemic made remote work a necessity and safety requirement. No longer was it just an option in some particular fields, but companies are eliminating barriers to implement remote work broadly. By doing so, they have opened themselves to more possibilities.
On top of that, many businesses moved online due to the pandemic. That led to a scarcity of top tech and software development talent, making it one of the hardest recruitment landscapes over the last 25 years.
In this article, we will discuss what a blended workforce is, who makes up a blended workforce, its benefits, challenges, and how to get started.
What is a Blended Workforce?
A blended workforce combines employees on a variety of contracts including full-time, part-time, freelance, contractors, and temporary employees. Each employee contributes to the company in a different manner and helps make the workforce more diverse.
Who Makes Up a Blended Workforce?
A blended workforce includes a variety of workers. We will discuss various types of workers within a contingent workforce and what sets them apart below.
Employees
Full-time or Part-time Employees work for a single employer and are paid a fixed hourly rate or annual salary. They’re usually part of the office or remote team and are hired to fill a particular role rather than working on a single project.
Such employees also get benefits from the employers such as healthcare, vacations, and a retirement plan and pay taxes. These employees are a part of the company and are usually required to serve a notice period before leaving the company.
Temporary Workers
Temporary workers or temps are employees of an organization that are hired to work on a specific project for a particular period of time. They’re similar to contractors, but contractors work for themselves, and unlike them, temporary employees are employees of a specific company.
Freelancers
Freelancers are self-employed individuals who work on both short-term and long-term projects with various clients. They don’t receive employee benefits like the employees, do not serve a notice period, and pay their own taxes.
What makes a freelancer unique and attractive to many is the ability to pick their own projects and set their own working hours. Generally, freelancers work remotely, but on occasion, they visit their employer’s offices and meet them in person.
Individual Contractors
Similar to freelancers, contractors also set their own working hours, pay their own taxes, choose their clients, and do not receive employment benefits. However, unlike freelancers, contractors usually work with only one client at a time. They work on a contract basis that defines a specific period of time. Contractors commonly work in IT, business, consulting, and creative industries.
Outsourced Teams
Outsourcing is the practice of hiring teams outside of your current workforce to perform tasks that were traditionally performed by the in-house team. Outsourced software development teams are an excellent option when the workload is too much for the in-house team. It's also an opportunity to diversify your workforce. Most outsourced teams are made up of people from different corners of the world, speaking different languages, and adding a unique perspective to the team. For example, at Parasolve, we have a multicultural team that can provide support in five languages! That allows you to hire talent without compromising quality and exploring markets that you've never considered before.
Why is a Blended Workforce Gaining Popularity?
A blended workforce offers flexibility that a conventional workforce lacks. More and more are opting towards a more flexible lifestyle over a secure job, and that is why a blended workforce is gaining popularity.
According to a survey report by Intuit, currently, roughly 25-30 percent of America’s workforce is contingent (consisting of freelancers, independent contractors, and consultants). Furthermore, in the upcoming years, over 80 percent of the large corporations are planning to substantially increase the use of a more flexible workforce.
Outsourcing projects, especially IT projects is also gaining popularity over the years. According to the Deloitte Global Outsourcing Survey, 57% of organizations believed that outsourcing allows them to focus completely on their business activities. Currently, the most outsourced IT function is software and app development. A study by Avasant shows that now about 60% of companies are outsourcing at least part of their software and application development. Working with a software factory instead of hiring permanent employees not only reduces cost, but gives organizations the flexibility to find and hire top talent without having to go through an extensive hiring process. That in turn speeds up the development and helps you beat the competition to the market.
Benefits of a Blended Workforce
A blended workforce offers many benefits, but the benefits go beyond going through a complex recruitment process to hire employees and insurance costs of permanent workers. Let’s take a look at some common benefits of a blended workforce.
Diversity: A blended workforce is usually more diverse as compared to permanent employees. People hire freelancers from anywhere in the world, and having unique experiences and skills offer a fresh perspective and help teams solve problems more efficiently.
Happier Teams: Contingent workers are usually happier than permanent staff. They work out their own schedules, have more flexibility, and are ultimately working towards building their own business.
Access to Specialized Skill Sets: While permanent employees have their own specialized skill sets, a contingent workforce allows you to find people with a specific skill set easily. Employers can outsource development projects to gain agility and speed in deploying new technologies.
A Wise Financial Decision: The ability to hire people with a specific skillset without having to go through the traditional hiring process makes contingent workforces a wise financial decision. There’s no need to fill a position, and after completing the designated work, the contractor leaves, and the company does not need to fill the position again.
Improved efficiency: Not depending on a particular team for a project increases efficiency. The freelancers usually work on outsourced software projects and working on a variety of projects improves their skillset and efficiency.
Challenges of a Blended Workforce
A blended workforce offers many advantages but it also comes with its own set of challenges. We will discuss a few challenges that come with a blended workforce.
Timezones and Schedules: A common problem with the contingent workforce is conflicting schedules. Freelancers and contractors can be hired from anywhere in the world, and they work in different time zones and have their own schedules. That makes it difficult to work at the same time or get the whole team together.
Maintaining Company Culture: Contractors, unlike permanent employees, are committed to the work, and not the company. With team members coming and going all the time, it can be difficult to maintain a positive culture within the company.
Tracking Performance: Unlike conventional employees, contingent workers don’t are long-term employees. That makes it difficult to manage growth and track their performance.
How to Get Started with a Blended Workforce?
Getting started with a blended workforce is easy, but you need to keep an open mind throughout the way. It requires partners who can source and select top talent from multiple candidate sources simultaneously, and manage the process of screening, recruiting, and paying people locally and globally. Ultimately, it’s important that every company experiments to find how they can manage a contingent workforce effectively, over time.
