By Tess Birch, Director of Executive Search, Gibson Consultants
It seems that the future of work is here. Increasingly, executives are asking us about flexible work, especially people later in their career. Some have already embraced this alternative approach to employment, while others are still at the curiosity stage.
“Flexible work” has quickly become the term that implies a few different ways of engaging with an employer:
- Fractional is best thought of as part-time. This can be as little as a few hours per month or as much as a few days per week. This is where we have seen the most growth in recent years.
- Interim is another word for temporary. Interim assignments often resemble full-time work from a commitment standpoint, but they are expected to be temporary.
- Advisory is like traditional management consulting, where someone is offering specialized expertise, often to executive or senior management teams.
- Project-based engagements are what the term suggests: a specific commitment to a project; the scope and duration are defined by the project.
All these approaches involve the worker being paid a set rate, whether it’s per hour, per month, or per project. There is usually no bonus eligibility, benefits, equity, or severance. Sometimes introductions to prospects are involved, and these are often compensated by commission or referral fees.
While this topic often conjures up the image of a fractional finance executive helping a company get its financial foundation and practices in place to scale, these flexible arrangements can be applied to just about any function in a healthcare company.
This flexible approach to work has been gaining popularity at an increasing rate for good reasons for both the employer and worker.
Benefits to Employer
- Avoiding headcount and budget approvals, and sometimes the bureaucratic burden that goes with them
- Accessing an extra pair of hands when unable to hire full-time because of a hiring freeze or a strategic decision to run lean in anticipation of a company sale
- Often getting higher powered talent than would otherwise be available on a traditional FTE basis
- Flexibly scaling up or down the workforce needed to tackle short-and medium-term objectives; in most arrangements, the employer and workers agree that the scope and duration can be increased or decreased to meet mutual desires and needs
- Getting additional help on board in days rather than weeks or months
- Ensuring the best fit for the need; if using a firm to source and manage these engagements, the national candidate pool is available, since many of these arrangements are fully or mostly remote (the fit is likely to be better than the founder’s college roommate)
- Getting to know a worker, and vice versa, before converting to a full-time hire (“try before you buy”)
- Having someone do the work for the three – six months it may take to complete a search for a full-time hire
- Helping executives become more effective by removing work that can be done by others
Benefits to the Worker
- Affording a desired life balance; with this model’s popularity with people later in their career, many feel they have earned the right to manage their careers on their own terms
- Allowing a choice of work intensity: some may work an interim role resembling full-time for four – six months and then take a few months off; others may work one day a week for three different companies
- Expanding horizons by working with multiple companies at the same time, being exposed to different business opportunities, solutions, and personal networks
- Getting to know a potential employer before choosing to sign on (“try before you buy”)
- If engaged through a firm, getting paid right away instead of having to wait to get paid
Other Practical Considerations
Flexible workers can choose to be independent contractors, or they can become W-2 employees of a firm that places flexible workers (e.g., a consulting firm). If choosing to work as an independent contractor, the best practice is to get a federal tax ID number (e.g., an LLC) and get insurance in that LLC’s name. General liability insurance is the minimum suggested. Depending on the type of work, professional liability and errors and omissions are also recommended coverages.
This approach is not for everyone. Some people are only comfortable with the steady paycheck that comes with full-time employment. But, for those ready to try something new, or not ready (or not able) to leave the workforce entirely, it can be a gratifying and invigorating option.
The obvious benefits to the employer and the worker suggest that flexible work arrangements are here to stay and will continue to grow in popularity.
