A talent firm has urged HR teams to ensure companies take a long term approach to people management.
This comes following a recent report revealing companies with long term views outperform their peers, despite the perceived need for persistent short-term planning.
The study showed that long term planning in companies resulted, on average, with a profit boost of 81 per cent more than competition.
However, more and more companies are focussing on the short-term, ‘gig economy,’ which relies on temporary employment and contracted freelance individuals instead of actual staff workers.
Younger generations are considered to be less likely to commit to one company for long periods of time compared to older generations, and as the gig economy continues to grow, more talented individuals are seeking out the short term route for quicker, more immediate work.
Talent management and acquisition firm, Alexander Mann Solutions, believes this could actually damage the future growth of firms that want to commit to long term planning.
“As more professionals take up the ‘gig’ employment option that an increasingly flexible business environment allows, it is arguably natural to see more companies focus on short term hiring needs,” said Lisa Forrest, global head of talent acquisition at Alexander Mann Solutions.
“Rather than admitting defeat and taking a limited view on talent management, firms need to rethink their approach and maximise the tools available to them in order to develop people strategies that are both relevant to existing needs and flexible enough to meet future demand.”