How is the gig economy influencing succession planning strategies for businesses?

Traditionally, succession planning has focused on identifying and developing internal candidates for key leadership positions. However, the rise of the gig economy necessitates a broader talent pool that includes not just full-time employees but also gig workers. Organizations are now looking at how to integrate freelancers, consultants, and part-time workers into their succession plans. This shift requires a reevaluation of talent management systems, leadership development programs, and the criteria used to assess potential successors. For instance, leadership qualities in a gig economy might emphasize adaptability, digital proficiency, and the ability to lead remote, diverse teams.

According to a report by McKinsey Global Institute, approximately 20% to 30% of the working-age population in the United States and the European Union engage in some form of independent work. This significant portion of the workforce cannot be overlooked in succession planning. Organizations must develop strategies to assess the skills, performance, and potential of gig workers, just as they do for full-time employees. This may involve leveraging technology and data analytics to track and evaluate the contributions of gig workers to organizational goals.

Furthermore, the gig economy encourages a more flexible, project-based approach to work. Succession planning in this context may mean identifying individuals who can lead specific projects or initiatives rather than fill traditional, permanent roles. This approach requires organizations to be more agile in their succession planning processes, constantly updating and adjusting plans based on changing project needs and worker availability.

One of the key challenges in integrating the gig economy into succession planning is building a robust talent pipeline. With the transient nature of gig work, organizations must find ways to maintain relationships with high-performing gig workers and keep them engaged with the organization. This could involve creating talent communities or pools where gig workers can stay connected with the organization, learn about new opportunities, and access development resources. Accenture's research highlights the importance of leveraging digital platforms and social media to engage with gig workers and build a sense of community and belonging.

Moreover, organizations need to rethink how they offer development opportunities to gig workers. Traditional career development programs designed for full-time employees may not be suitable for gig workers. Instead, offering microlearning opportunities, project-based learning experiences, and access to mentoring and coaching can be more effective. These strategies not only help in developing gig workers for future roles but also in retaining them by offering value beyond just monetary compensation.

Succession planning in the gig economy also requires a shift in mindset from seeing gig workers as temporary solutions to viewing them as integral parts of the talent pipeline. This means recognizing the strategic value gig workers can bring, such as specialized skills, fresh perspectives, and agility. By doing so, organizations can leverage the gig economy to enhance their succession planning strategies and ensure a continuous flow of talent for critical roles.

Several leading organizations are pioneering in adapting their succession planning strategies to the gig economy. For example, Google has long been known for its innovative approach to talent management, employing a significant number of gig workers alongside full-time employees. Google has developed systems to evaluate the contributions of all workers, regardless of their employment status, and identify potential leaders from within this diverse talent pool. This approach allows Google to tap into a wide range of skills and perspectives for leadership roles.

Another example is PwC, which launched the Talent Exchange, a platform that connects freelance professionals with short-term projects at PwC. This platform not only helps PwC manage its project-based workforce needs but also serves as a talent pipeline, allowing PwC to identify and develop relationships with high-potential gig workers who could play more significant roles in the future.

These examples illustrate the potential of integrating the gig economy into succession planning. By leveraging technology, rethinking development opportunities, and recognizing the value of gig workers, organizations can build a more flexible, responsive, and robust succession planning strategy that is fit for the future of work.