Charles Spinelli on Managing Workforce Ecosystems

Charles Spinelli: How HR Manages Workforce Ecosystems

According to Charles Spinelli, Human Resources, or HR, is vital to any organization. Today, he discusses a trend that the department has to execute and negotiate well -- manage workforce ecosystems.

HR has almost always focused on permanent employees. However, other types of workers, like gig workers, contractors, and employees working for and with supply chain partners, play an important role in the company's delivery of its service.

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In the U.S., Charles Spinelli points out that 16 percent of Americans have earned money via gig platforms. It was also reported that in approximately 40 percent of companies, one in every four workers is a gig worker. A big part of the entire workforce goes unmanaged. This means HR is missing a chance to make a substantial impact.

Experts have mentioned that 2023 is the year when HR should start to manage the complex workforce ecosystem well beyond permanent employees. This will have three implications.

First is that HR will become actively involved in managing its contingent workforce. It will integrate contractors, gig workers, and external contributors into the HR value chain. This is a must-do from a value creation perspective and a risk viewpoint. HR's often hands-off attitude towards temporary staff leads to a two-tiered workforce. This has even led companies in the world to struggle to manage adequately.

Second, HR can help create a more blended workforce ecosystem in today's platform economy. Third, it can add value to external contributors.

Take Airbnb, for example. It is the largest hotel chain without any properties. Then you have Uber, the largest taxi company without any drivers. Platforms like YouTube, Netflix, and TikTok outsource most of their content. These organizations are highly dependent on their contributors. As such, there is a role for HR to play in making said contributors part of their people practices.

Finally, Charles Spinelli says HR should share best practices with supply chain partners, vendors, and service providers.

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The post-pandemic era has shown the significance of value chains from a production and reputational perspective. For example, Rihanna's fashion label Fenty Beauty took a lot of heat as it was accused of child labor in its supply chain.

HR may not drive partnering decisions, but it certainly has a unique opportunity to shore up best people practices throughout the supply chain.

Experts anticipate seeing more sample initiatives in 2023, including mentoring programs for seasoned HR professionals, job rotation across the supply chain, and creating communities of expertise. Charles Spinelli explains that business is not a zero-sum game, especially not regarding partners. This is where HR can create tremendous value through workforce ecosystems.

Charles Spinelli shares his thoughts and insights on human resources in his blogs. Read them on this site.