Exploring the Employment Formula for Digital Organizations: Which Works Better, Hiring New Talent, Developing Existing Employees, or Hiring Temporary Staff?

To successfully drive and transform into a digital organization, the question arises: which employment formula suits various organizations best? Is it hiring new talent, developing existing employees, or hiring temporary staff? The Buy-Build-Borrow approach, or simply '3B', offers diverse perspectives. According to Dr. Bowornan Thongkhalya, President of the Personnel Management Association of Thailand (PMAT), regardless of the approach, the core principle revolves around achieving excellent results and success for the organization.

Meanwhile, a survey on Thailand's digital transformation by Deloitte Thailand indicates that:

To successfully drive and transform into a digital organization, when faced with the choice between hiring new talent, developing existing employees, and hiring temporary staff (Buy-Build-Borrow), most organizations tend to prefer "hiring temporary staff".

PwC Thailand suggests that if the situation continues to drag on, we may see Thai companies increasingly considering contingent workforce, outsourcing, and hiring freelancers to create flexibility in managing workforce and costs. This prediction follows a survey of 699 CEOs across 67 countries conducted between June and July 2020 (CEO Panel Survey) regarding emerging business models and significant trends arising from the COVID-19 pandemic. It found that 78% of business leaders will adopt more remote working policies, while 76% rely on technology and automation, and 61% manage workplace density.

The COVID-19 pandemic has led to a shift towards more work-from-home arrangements. PwC Thailand estimates that 20% of Thai companies currently have policies allowing employees to work from home permanently to ensure employee safety, while also reducing costs such as office rent, utilities, and maintenance expenses.

Many organizations have also opted for a hybrid approach, allowing employees to choose between working from home or coming to the office for meetings or workshops. Prolonged remote work can lead to stress and difficulty in balancing work and personal life. Data shows that most employees prefer to work from home about two days a week.

The quality of work and productivity from remote locations undoubtedly presents challenges. Therefore, organizations need to establish new practices and tools to measure performance, utilizing technology to track work, assess results, and assist employees in resolving issues promptly. Some tasks may also benefit from automation.

Moreover, motivating and engaging employees, even while working from home, is crucial for business leaders. They must create new work experiences for employees and seek opportunities for social interaction to build relationships and networks. It may also be necessary to set guidelines for breaks during the day and promote a culture of punctuality.

However, if the COVID-19 situation persists, it is likely that Thai companies will shift towards hiring contingent workers, outsourcing, or increasing the use of freelancers for specific tasks or projects. This approach provides companies with flexibility in managing workforce and costs, as these employment models can significantly reduce long-term expenses associated with permanent employees, aligning with the current high uncertainty.

PwC Thailand states that changes in work patterns or hiring methods will inevitably impact employees' work lives in one way or another. However, developing new skills, particularly flexibility and adaptability, will enable employees to enhance their work efficiency and adjust themselves appropriately to the rapidly changing modern world.

Meanwhile, the blog prakal.com explains the principles of '3B' and its pros and cons. Regardless of the method chosen, it is essential to study the impacts, assess urgency and readiness, and consider long-term futures. Some methods may be suitable for short-term needs, while others may be more sustainable in the long run. Clear consideration is necessary before deciding which approach to adopt in formulating human resource management strategies for the organization:

- Build: Developing personnel involves hiring suitable employees and investing in their development to meet the organization's requirements. When the organization needs to implement new systems, it will develop and upskill existing employees. This method is beneficial as it ensures employees understand the organization's culture well. However, it can be time-consuming, and existing personnel may have limitations in their development.

- Borrow: Borrowing personnel involves bringing in skilled individuals from other organizations to fill specific needs. This can take various forms, such as agreements to share employees between organizations with complementary strengths or outsourcing skilled individuals to establish systems initially. Once established, the organization's personnel can take over. This method is advantageous for its speed but may result in a lack of understanding of the organization's culture and potential gaps during the transition. After completion, it is essential to develop existing employees to manage the new tasks.

- Buy: Buying talent involves acquiring skilled individuals from other organizations to produce results within the organization. This method is quick as it does not require internal development, and the new hires become part of the organization immediately. However, the downside is that if the wrong hire is made, it can lead to immediate issues. Some individuals may excel in their work but have differing attitudes and values from the organization, potentially causing long-term problems. Another challenge is managing employee compensation, as hiring talent often requires offering higher salaries than the market rate, sometimes even exceeding the compensation of existing employees.

SOURCE: www.bangkokbiznews.com