The current situation with the Covid-19 pandemic, which no one was prepared for, has caused a wave of layoffs and unemployment to reach record levels worldwide. Even in the post-crisis world, many things will not be the same as before – particularly regarding job positions and the way we work. Many career experts, on the contrary, predict the emergence of an entirely new labor market.
Joe Mullings from the prestigious staffing company MRI, Inc. shared his insights on the topic of the modern form of the interim economy.
The new form of the interim economy will include the classic interim project economy as we know it – primarily contract workers, various freelancers, temporary workers, independent consultants, or Interim Managers, as well as millions of “former” employees, managers, and experts who wouldn’t have imagined a few months ago that they would one day work for themselves.
According to Joe Mullings, this phenomenon was triggered by the rapid and unpredictable change in the labor market caused by the coronavirus. In the past, freelance or entrepreneurial positions were more a matter of personal preference, motivated by lifestyle, career growth, the possibility of additional income, or gradually returning to the workforce after a longer period without employment. This form of cooperation was also more common in certain areas – particularly in tourism and leisure activities or information technology.
Over the past decade, we have seen significant progress in the transition from the permanent full-time employment model to the “employment” on a contract basis model, whether full-time or part-time. However, working from home was still more the exception than the rule.
In the current situation and given the economic damage caused by the pandemic, both large and small businesses will reconsider returning to the original work system and full staff capacity. They will reassess the level and impact of personnel costs, benefits, and other related expenses on the company’s operations in these difficult economic times. The solution will be the utilization of the new form of the interim economy.
The difference between the classic project-based interim economy and the new interim economy lies mainly in the fact that the former was a personal choice, and freelancing was developing in a healthy environment a few months ago. But the new form of the interim economy represents, at least in the near future, more of a survival strategy and a bridge to returning to the standard employment model, from both the employer’s and employee’s perspectives.
In the classic interim project economy, companies utilized the services of experienced external individuals who had specific knowledge and skills and could immediately intervene in a project that had a beginning and an end. However, in the modern interim economy, external resources will start being used for all types of positions at all levels of a company’s operations.
The new situation also brings a radical change in how and where people perform their work. The results of a recent study showed that 40% of all job positions can be performed from home, whereas before the pandemic, the estimate was only at 3%. This trend is supported by large companies announcing that many of their employees will continue to work from home permanently (e.g., Facebook, Twitter). Several surveys confirm that even employees themselves (almost 60%) would prefer to continue working from home even when businesses and schools reopen.
