The traditional image of a full-time, in-house team gathered around a conference table to discuss projects has significantly transformed.

In recent years, finding and attracting talent has become a critical challenge for organizations. A report by Boston Consulting Group and the World Federation of People Management Associations (WFPMA) revealed that over 70 percent of HR professionals cite talent gaps and people challenges as their biggest business obstacles.

Whether it’s the ability to find the right skills, the need to scale teams quickly, or a desire for a more flexible workforce as needs change, managing an organization’s talent needs is both harder and more important than ever. “Companies, especially in the last 12-18 months, have prioritized workforce flexibility for obvious reasons. Being able to scale up and down, whether it’s one or two people or even an entire team, based on their needs and the company’s performance, is a conversation we constantly have with folks,” said Vinnie Levine, Managing Director at Cypress HCM.

Today, the concept of blended teams – which combines the strengths and expertise of internal employees with the diverse skills of external talent – has emerged as a powerful, collaborative talent model. It’s become more apparent than ever that it’s possible and more beneficial to operate in a blended team model. But how can you ensure you get the best from this approach?

Understanding the Blended Team Approach

A blended workforce allows organizations to tap into a broader pool of skills and expertise, offering greater flexibility and adaptability. By leveraging this approach, organizations can respond more effectively to changing business needs and market demands.

However, successfully building a blended team is more than just finding individuals with the right skills. It involves recognizing that teams need the right mix of strengths and talents. This means understanding that existing team members may not always have the skills needed for every situation, and sometimes, augmenting the team with additional expertise is necessary.

So, when should you hire a full-time employee, engage a contractor, or consider a contract-to-hire arrangement?

Let’s discuss…

When to Hire Full-Time Employees

Full-time employees form the backbone of any organization, providing stability, continuity, and a deep understanding of the company’s culture and processes.

Hiring full-time employees offers many advantages. It’s ideal for employers who want consistent, long-term team members invested in building company culture and achieving the company’s mission.

However, there are some drawbacks to consider. Hiring full-time employees comes with several additional expenses. Your company is responsible for wages, benefits, employment tax, income and unemployment tax withholdings, workers’ compensation insurance, overtime pay, and training expenses. Additionally, full-time employees need opportunities for growth—such as upskilling, promotions, raises, or other development—or they may stagnate, which can lead to decreased satisfaction and higher turnover rates.

Ensure your organization is ready to invest in full-time employment by carefully considering the following questions:

• Is the need for support temporary or ongoing?
• Is the work core to the business?
• Does the work require them to be on-site or have access to internal systems?
• Will a full-time hire bring a skill or capability to the organization that is currently missing?

When to Engage a Contractor

Contractors, including 1099 consultants, play a vital role in the blended talent approach by providing specialized skills and flexibility. Instead of hiring full-time employees who need to handle a variety of tasks, contractors with specific expertise can efficiently complete a wide range of projects on a temporary basis.

Hiring contractors or 1099 consultants has several advantages. It’s ideal for organizations needing highly skilled, short-term team members who can perform independently without supervision or company-supplied tools.

However, while contractors offer many benefits, there are also some drawbacks. Contractors have more autonomy than employees and can decide how best to accomplish tasks, with what tools, and in what timeframe. Most employers use contractors for specific or short-term projects. Once a project is complete, contractors typically move on to other assignments or clients. This constant turnover can disrupt a company’s workflow and culture.

Consider the following questions when deciding whether to engage a contractor or a 1099 consultant:

• Do I need these skills long-term or just to fill a short-term gap?
• Do I require access to a specialized skill set or a quick turnaround?
• Does this work require on-site supervision?
• Does the scope of work involve training or development?

When to Consider Contract-to-Hire

Contract-to-hire offers a practical solution for organizations facing uncertainty, skill shortages, or economic challenges. It allows companies to maintain operations while planning for future growth.

Deciding whether to have contract-to-hire positions depends on the nature of your business and the work to be performed. Like full-time employees and contractors, contract-to-hire has its benefits and disadvantages. One of the biggest advantages is that it allows both organizations and candidates to evaluate if the employment will be a good long-term fit. It also streamlines the hiring process, enabling you to fill critical skill gaps more quickly.

However, contract-to-hire also has limitations. Some job seekers may hesitate to accept such positions due to concerns over job security. Additionally, there is always the risk that the engagement may not be successful, requiring you to restart the candidate search.

Considering a contract-to-hire engagement? Ask yourself the following questions:

• How immediate is my hiring need?
• Do I foresee a long-term need for this role?
• Do I have the budget for a full-time position?
• Can I promote or better utilize my current staff to support this need?

The Strategic Advantage of Blended Teams

Adopting a blended team approach offers organizations a range of benefits, including enhanced productivity, increased diversity, flexibility, and financial convenience. It opens new avenues for talent acquisition by enabling organizations to tap into a wider talent pool and engage top-notch professionals regardless of geographical boundaries.

A blended approach not only boosts productivity and diversity but also enhances innovation, improves talent acquisition and retention, and provides agile responsiveness.

To be successful, the blended approach must be viewed as a strategic capability, not just a business tactic. How can an organization establish a blended workforce as a strategic advantage? It starts with understanding your goals, identifying resource gaps, and knowing what talent best aligns with your business strategy.

Best Practices for Implementing a Blended Team Approach

Companies that successfully blend their workforce have a strategic advantage in the war for talent. Rather than investing months to hire full-time employees with hard-to-find technical skills, a project leader can quickly scale teams as needs change.

“The companies that are most efficient with hiring and are the best at it, they’re very good about planning ahead,” said Levine.

Organizations that view blended teams as a strategic capability have a clear business plan, established organizational processes, and a collaborative workforce culture.

Developing a sustainable blended team requires four key steps:

Step 1: Assess Your Business Needs
Before embarking on this journey, assess your organization’s specific needs and objectives. What skills are needed to achieve the company’s goals? Do you have the breadth and depth of skills and experiences required? What are the near-term versus longer-term requirements? Addressing these questions as part of your talent assessment will help you develop your blended strategy and determine where flexible workers are best utilized.

Step 2: Establish Clear Processes and Frameworks
Standard processes and systems cannot be used as-is when expanding from a traditional workforce to a blended workforce. Seventy percent of HR teams expect to create blended workforce policies moving forward. Processes and systems need to be adapted or rethought for contractors. For example, organizations should manage and pay employees and contractors using different systems. Onboarding processes will also differ for contractors, emphasizing contractual elements (such as master services agreements, statements of work, and nondisclosure agreements) to enable them to hit the ground running from the moment onboarding is completed.

Step 3: Create a Culture of Collaboration and Teamwork
When different types of workers come together to work towards common goals, fostering an environment that encourages cooperation and open communication is crucial. Creating opportunities for teamwork is key. Encouraging cross-functional collaborations or assigning projects that require input from various team members can help build trust and improve working relationships.

Step 4: Focus on Outcomes and Performance
When embarking on any endeavor, whether it is a strategic program or a simple project, defining and aligning on the desired outcomes is essential. Building a blended workforce is no different—you must define your goals, align them with your overall business objectives, and set measurements to gauge success. What types of metrics should be tracked for a blended workforce? It’s important to track outcomes and manage performance across three levels:

• The organizational level – How well are you leveraging blended teams?
• The project level – How well are outcomes being delivered?

Embracing the Future of Work with a Blended Talent Strategy

For leaders and companies ready to embrace the future of work, a blended talent strategy provides the agility needed to achieve company goals. By leveraging the strengths of full-time employees, part-time workers, and contingent workers, companies can access a diverse pool of talent and perspectives, enhancing collaboration, innovation, and productivity.

With remote capabilities and technological advancements, blended Technology and Engineering  teams are set to play a pivotal role in shaping the Tech landscape and driving organizational growth and success.

It’s time to move beyond traditional talent management and adopt the blended workforce model. 

Connect with our team of experts to learn how you can benefit from a blended workforce in your organization.