Chapter 1
Hiring alone isn't enough.
Workforce models are becoming more fluid. More organisations have increased their use of project-based and freelance talent, automation and internal mobility than have increased permanent headcount.
In the past three years, organisations are far more likely to have increased project and freelance talent, automation and internal mobility than to have increased permanent employees.
Faced with a skills gap, two-thirds still hire. But upskilling, automation, redeployment and outsourcing now follow at close range. The hard part is execution at scale, and the risk that critical knowledge stays locked inside individuals rather than systems.
Project-based and freelance talent have increased the most in the past three years
Percentage of organisations that have increased each of these in the past three years
| Item | Share of executives |
|---|---|
| Project-based or freelance talent | 62% |
| Automation of tasks and processes to reduce reliance on manual work | 59% |
| Internal talent mobility and redeployment | 57% |
| Redesign of roles and job structures | 55% |
| Temporary or contract workers | 53% |
| Outsourcing to third-party providers | 51% |
| Permanent employees | 38% |
62% of organisations have increased project-based or freelance talent in the past three years, against 38% that increased permanent employees. Automation rose in 59% of organisations and internal talent mobility in 57%.
What the Workforce Adaptability Leaders do differently
The Leaders are not less dependent on AI. They have fewer emergencies. Because they invest earlier in hiring and capability, they fall back on redeployment and outsourcing as corrective measures far less often.
How organisations approach a skills gap
Workforce Adaptability Leaders compared with everyone else
| Measure | Everyone else | Leaders | Difference |
|---|---|---|---|
| Hiring new talent | 65% | 74% | +9 |
| Upskilling and reskilling existing employees | 63% | 70% | +7 |
| Automating the function or AI solutions | 62% | 61% | -1 |
| Redeploying existing employees | 57% | 45% | -12 |
| Outsourcing | 52% | 49% | -3 |
Workforce Adaptability Leaders are more likely to close a skills gap by hiring, at 74% against 65%, and by upskilling, at 70% against 63%. They are markedly less likely to redeploy existing employees, at 45% against 57%.
See Change Earlier
What change will have the greatest impact on your workforce over the next three years, and are you prepared for it?
What to do now
- 1
Map where business demand, technology and skills needs are changing fastest, rather than only tracking current vacancies.
- 2
Treat hiring, upskilling, redeployment, outsourcing and automation as connected levers instead of separate decisions.
- 3
Build mechanisms to move knowledge as well as people, especially where expertise sits with long-serving employees.
- 4
Use external partners to accelerate access to new capabilities, but decide early what you should build internally.