COVID accelerated the growth of freelance work. At the onset of the pandemic, 3 in 4 hiring managers expanded their recruitment of independent contractors (often despite full-time hiring freezes). But unlike wiping down our groceries with Lysol, freelancing was no temporary trend.
In the new book Open Talent: Leveraging the Global Workforce to Solve Your Biggest Challenges, John Winsor and Jin Paik of Harvard Business School aim to equip business leaders with a shared language to navigate the evolving talent landscape. They spoke with b. together via email about the new-school versus old-school approach.
b.: What is open talent, exactly, and why is there no going back from it?
Winsor and Paik: Until now, the term “open talent” has mainly been associated with tech workers, but what we’re discussing goes beyond that … moving past just crowdsourcing and gig work.
In this post-COVID era, digital technology has allowed for the rise of a new class of creators and freelancers by radically reducing the cost of production. These micro-entrepreneurs look at work as a thing to do, fitting it into their lifestyles, instead of a place to go or a definition of who they are.
The other big contributing factor to the growth of open talent is the lack of talent. Korn-Ferry estimates that by 2030, there will be 85 million tech jobs that cannot be filled because of a lack of candidates, costing companies $8.5 trillion. The war for talent is over. Talent won. No matter who you are, the best talent doesn’t want to work for you.
b.: What kind of solutions are best sourced through open innovation?
Winsor and Paik: Open innovation, often through contests or community engagement, taps into a diverse pool of perspectives and capabilities, recognizing the potential for groundbreaking solutions beyond the confines of traditional in-house approaches. Governments and corporations have experimented extensively with open innovation for centuries. … NASA and others found open innovation solutions 4 to 5 times cheaper and 8 to 10 times faster.
b.: Is open innovation limited to enterprise-level organizations?
Winsor and Paik: In fact, the flexibility and adaptability of open innovation make it a valuable strategy for businesses of all sizes and types, including small businesses such as restaurants. … The key is to tailor the open innovation process to fit the scale and specific needs of the business, ensuring that the costs are justified by the potential value of the ideas and solutions generated.
b.: Is it safe to say that businesses still need (some) full-time, in-house employees? How can leaders know when to leverage freelance talent and when to hire a candidate the old-fashioned way?
Winsor and Paik: It’s a strategic balancing act, tailored to each project’s needs, the organization’s objectives, and the resources at hand. Often, the most effective approach blends these strategies, drawing on the strengths of each to forge a path to success …
The first step on this journey is to experiment by starting with something manageable — a minor project, perhaps, or a problem that doesn’t strike at the core of the business. … By establishing specific goals for their open talent initiatives and measuring their success, leaders can clearly see the impact and value of this new approach.
Open Talent is available now.