Creating Value and Impact Through The Alternative Workforce

Executing Performance Management Strategies to Unlock the Full Potential of Alternative Talent.
Creating Value and Impact Through The Alternative Workforce

Executing Performance Management Strategies to Unlock the Full Potential of Alternative Talent.

As many companies increase their reliance on the alternative workforce to meet evolving talent demands, human resources (HR) and organizational leaders can take subsequent actions to adjust their performance management approaches to fit the needs of new worker types. Organizations should consider implementing the appropriate processes to understand the performance of the alternative workforce—not just in the present moment, but also as part of an effort to forecast how their talent needs may change moving forward. As part of the performance management process, organizational leaders should be able to clearly define work expectations, understand work outputs and deliverables, and evaluate these outputs for each of the various types of alternative workers2 (contractors, gig workers, freelancers, crowd workers, and coemployment PEOs).

If alternative workers are projected to drive further business outcomes, then their objective performance toward those outcomes should be defined, evaluated along the way, and course-corrected where needed. This can include activities ranging from the objective assessment of their output to the appropriate parties providing feedback to support their potential next assignment. Since the different types of alternative workers experience unique relationships to the organization, HR has the imperative to thoughtfully outline work while providing business leaders and managers with the tools, guidance, and resources to execute work and administer processes that deliver outcomes consistent with work expectations of the organization. Importantly, HR, business leaders, and managers should be mindful of the human experience, meaning the development of an ongoing relationship as appropriate while providing a positive experience for alternative talent.

Performance management for the alternative workforce While the complexities involved with supporting various alternative worker types may be a recent challenge, organizations have long struggled with delivering an effective and engaging performance management approach. Too often viewed as an annual process of retrospective evaluations and seemingly subjective assessments, performance management carries a negative stigma characterized by having a negative 60 Net Promoter Score (NPS®).3 However, the “rank-and-yank” methodologies of decades past have succumbed to more purposeful feedback approaches that occur on a continuous basis and, under best-case scenarios, make the experience feel just as much a part of workflows as work itself.

Key Takeaways

About This Report

1. Understand your worker options

2. Define work to be completed

3. Set clear expectations

4. Prepare performance procedures

5. Support team leaders and team members

6. Consider how technology can be utilized

About the Publisher

This publication contains general information only and Deloitte is not, by means of this This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional adviser. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication

Publish Date

August 2021