Are skilled contingent workers neglected? Evidence from a cross-sector multiple case study on organizational career management practices
Introduction
The nature of work and the labor market has shifted drastically in recent years, and so have careers (Marler et al., 2002). Driven by evolving labor market dynamics, such as the gig economy, new patterns of work arrangements are significantly growing in an ever more flexible and turbulent socio-economic environment (Fisher & Connelly, 2017; Kassinis & Stavrou, 2013). This new environment leads to changes, such as less linear and sustainable career paths, for individuals (Cappelli & Keller, 2013; De Vos & Van der Heijden, 2017; Sullivan & Baruch, 2009). It also leads to challenges for companies in their career and workforce management strategies (Camuffo and De Stefano, 2016, Roos and Menden, 2019), in search of greater flexibility to meet market needs.
The gig economy is, in fact, seen as a catalyst of trends for companies that are increasingly outsourcing functions or using labor market intermediaries (LMIs) to hire workers to perform specific tasks for a limited period, in a quest for flexibility. Furthermore, the gig economy has a considerable impact on workers who are increasingly described as being independent, experiencing short-term employment relationships (Meijerink & Keegan, 2019). As employment relationships have become much shorter and labor markets more unstable, traditional work arrangements have shifted toward a more nuanced global labor market that includes several forms of non-standard work arrangements, such as contingent ones (Barley and Kunda, 2004; EuroFound, 2020; Kunda et al., 2002).
The number of contingent workers has risen to approximately 6 million in the United States (US Bureau of Labor Statistics, 2018). In Europe, the number of self-employed workers has boomed to 22 million people in 2021, according to a Boston Consulting Group and Malt (2020) report. This situation reflects the increase of the contingent workforce over the past decades (Kunda et al., 2002; Rassuli, 2005), and more drastically in very recent years (EuroFound, 2020; Semenza & Pichault, 2019). Despite such a rise, few empirical studies have been conducted with the aim to enhance knowledge on the career management of skilled contingent workers (SCWs), from an organizational standpoint.
In this study, we draw attention on SCWs. These are either consulting firm employees or freelancers contracting directly with a client company or contracting through an intermediary (Cappelli & Keller, 2013; Connelly & Gallagher, 2004; David, 2005). They perform work at clients' premises next to employees, directly collaborating with them, but are not being offered benefits or support as regular employees. In addition, we focus on organizational career management (OCM) practices, traditionally offered to regular employees by human resource management (HRM) departments. We question the extent to which they may be applied to SCWs, as their careers unfold within organizational contexts. This study offers insights on OCM practices aimed at SCWs and initiates a debate on companies’ responsibilities in career management of such a workforce. Our main research question is: “How are organizations supporting the careers of SCWs?” We wish to contribute to the field of career management and to the larger field of HRM by addressing the inclusion of SCWs in HRM practices.
This article is structured as follows. We first provide a literature review on SCWs, followed by a review on OCM practices. We then present our methodological design, followed by an analysis of the empirical cases we investigated. Drawing on this analysis, we discuss our findings by referring to contextual variables that are likely to explain the various OCM practices developed by organizations for SCWs. Eventually, we present our theoretical and practical contributions.
Contingent work is commonly defined as “any job in which an individual does not have an explicit or implicit contract for a long-term employment or one in which the minimum hours can vary on a non-systematic manner” (Polivka & Nardone, 1989, p. 11). In their well-known study, Connelly and Gallagher (2004) differentiated between four forms of contingent work: temporary agency workers, independent contractors, direct-hired workers, and seasonal workers. Many years later, David (2005) introduced the idea of SCWs. Even though contingent work arrangements represent an array of work arrangements, one should not study those various forms of work arrangements together. There may be significantly differences on several aspects between them (Connelly & Gallagher, 2004). One common feature of contingent work arrangements is the short-term facet of their relationships established with client companies (Bidwell, 2009).
With the growing presence of contingent workers in companies (Koene & Purcell, 2013), internal labor markets are being split between internal and external workforces. On one hand, regular employees are likely to benefit from an ongoing employment relationship, which may be supported by an HR department through a number of policies and practices. On the other hand, the HRM literature has shown that contingent workers experience a time-specific employment relationship and are barely supported by the HR department (Bidwell, 2009; Stirpe et al., 2014). They rarely benefit from any career development policies and practices that are traditional concerns of employees (Virtanen et al., 2003), do not receive employment benefits from the client organization (Fisher & Connelly, 2017), do not enjoy the same benefits as regular employees (Ghio, 2002), and may be more affected by job insecurity (Probst et al., 2018).
Contingent workers are often seen as additional external resources for companies (Lepak & Snell, 1999) and organizations often utilize them to reach a certain level of flexibility and adaptability (Cappelli & Neumark, 2004; Kalleberg et al., 2003). When contingent workers provide a high value to a core business activity and possess specific and scarce skills that are difficult to obtain on the labor market, it becomes interesting for companies to attempt to hire such workers permanently and invest in them. In other cases, companies may not be willing to internalize them (Lepak & Snell, 1999).
We stick to David's definition of SCWs, in which they “do not have explicit (i.e., formal, clearly defined, and communicated agreements) or implicit (i.e., an understanding between employees and employers but not formalized through a written agreement) contracts to stay with an organization for an indefinite period of time” (2005, p. 33). SCWs are often hired for their specific skills, usually linked to their high level of education (David, 2005). Even though the HRM literature provides evidence that their use is often limited to companies' periphery activities, SCWs are increasingly being included in core activities (Bidwell, 2009). It is especially so with the rise of the gig economy (Meijerink & Keegan, 2019; Pichault & McKeown, 2019). Resorting to SCWs in core activities may in fact help improve company performance as they bring in new ideas and knowledge. However, the overall costs of such workers, the loss of internal knowledge and expertise, or even the lack of guidance when resorting to them may explain a potential managerial fear of using them (Redpath et al., 2007). Still, in opposition to other forms of contingent workers, companies can create net value from the use of independent contractors (Fisher & Connelly, 2017).
In this study, we therefore focus on two types of actors: independent contractors, also seen as freelancers, who may use the support of a LMI and consulting firm employees. SCWs may thus find themselves in a triangular relationship with an intermediary and a client company, or an employer and a client company (Cappelli & Keller, 2013).
Career management is defined as “attempts made to influence the career development of one or more people” (Arnold, 1997, p. 19). Career management theories have drawn greater attention over the career literature in the early 21st century (Bagdadli & Gianecchini, 2019; Baruch & Peiperl, 2000; De Vos et al., 2009; King, 2004). Research on career management has taken different directions over time, focusing first on OCM and subsequently on individual career management (ICM). The first covers elements an organization builds to manage its workers' careers, whereas the latter refers to workers' proactivity, actions, practices, or strategies for her/his own career management, that can be aligned with organizational goals (De Vos et al., 2009). In this study, we focus on OCM, which has traditionally been bound to regular employees’ careers. We focus on the practices that are derived from OCM to enhance our understanding on the possible OCM that can be offered to SCWs.
OCM represents the activities, programs, and interventions built and undertaken by the organization to plan and manage its workforce careers (De Vos et al., 2009; Sturges et al., 2002). OCM consists of practices based on a career management strategy. In the career literature, OCM bundles (also known as systems or sets) are composed of a series of career management practices provided formally or informally by companies (Baruch & Peiperl, 2000). Such practices offer more diversity and flexibility for individuals (Baruch, 2004). OCM practices are implemented by an organization to help individuals control and navigate their career path in that organization, and to support organizational needs and goals as well (Bagdadli & Gianecchini, 2019; De Vos et al., 2009).
OCM bundles may include practices, such as formal career and succession planning, internal promotion, mentoring programs, coaching, development centers, trainings, or talent reviews (Bagdadli & Gianecchini, 2019). Various bundles displaying numerous OCM practices have been suggested and scholars have tried to generate comprehensive sets of OCM practices from empirical research (e.g., Baruch & Peiperl, 2000; De Vos et al., 2008; Eby et al., 2005; Lewis & Arnold, 2012), even if bundles of practices cannot be generalized once and for all, given their space and context-specific nature (De Vos & Cambré, 2017). Still, Bagdadli and Gianecchini's (2019) systematic review of the topic offers an analysis of the various OCM practice bundles available in the literature. They pointed out a series of practices that are present in each of those bundles. However, such practices remain exclusively focused on companies' internal workforce and on more traditional work arrangements.
With the advent of new career models (Arthur & Rousseau, 1996; Hall, 2002), the debate on career management responsibility has shifted from companies to the willingness of individuals who supposedly take control of their career. Yet, authors have stressed the importance of not placing the sole responsibility for career management in the hands of individuals, but rather to consider a global perspective by including their broader professional environment (Reichel & Mayrhofer, 2009). It echoes a dreamlike free agent perspective (Kunda et al., 2002). That is to say, partisans of this theory argue for an individualistic narrative in which workers’ agency is at the forefront of career situations, whether it is the choice and the number of assignments, the place of work, trainings, the autonomy of work, or the choice of a global lifestyle. However, the situation can differ greatly in practical terms as workers may not always be fully knowledgeable and in control of all facets of their career. It may in fact lead workers to encounter “dark sides” (Kunda et al., 2002, p. 256), such as feeling estrangement and insecurity, being driven by and tied to the labor market dynamics, experiencing lower levels of autonomy, or more globally precarious situations (Kunda et al., 2002; Pichault & McKeown, 2019). The free agent perspective, as it is the case in other theories (Arthur & Rousseau, 1996; Hall, 2002), takes a view that emphasizes workers as solely in charge of their career.
While advocates of purely individually enacted careers suggest new roles for individuals in their career management by setting aside reliance on organizational practices (Arthur & Rousseau, 1996; Hall, 2002; Kunda et al., 2002), the general understanding of OCM still needs to be developed and enhanced (Segers & Inceoglu, 2012) in light of skilled contingent work arrangements. Reasons for this are twofold. First, workers are experiencing unpredictable and less linear career paths more than ever before (Akkermans et al., 2018). Second, companies remain the primary environment in which careers unfold (Inkson et al., 2012; Lips-Wiersma & Hall, 2007Lips‐Wiersma & Hall, 2007). Hence, workers are still bounded to organizations even though they may adopt self-management strategies (Baruch & Peiperl, 2000). OCM therefore remains an important component for independent contractors or consulting firm employees working at companies’ premises, whose careers still unfold in organizational contexts.
Several calls have been made to explore the careers of non-standard workers (Lo Presti et al., 2018; Volmer & Spurk, 2011) and the role of organizations in their career development (De Vos & Cambré, 2017; Garbe & Duberley, 2019). Companies’ policies and practices change over time, and career path and career management issues have progressively been enlarged to both internal and external workers. However, one must recognize that little is known about the OCM of SCWs navigating through a number of assignments in multiple companies for a mid- or long-term period (van den Born & van Witteloostuijn, 2013). In fact, SCWs are overly tied to the idea of self-managed careers (King, 2004).
In this study, we aim to fill this gap by focusing specifically on the OCM practices offered to SCWs. SCWs are expected to increase in number and are already well present in many organizational contexts. In the present scenario, it appears relevant to study the OCM practices they are offered and the career support they are provided by companies. Considering their presence within companies and their significant added value to core and peripheral businesses, it would be relevant to expect these companies to develop a number of practices to support and retain them for the duration of the assignment.
Section snippets
Method
This study is qualitative and relies on a multiple case study design (Eisenhardt, 1989; Yin, 2014). Our sample includes companies operating in the Belgian labor market, which is highly institutionalized and stands at an intermediate position between the strict French labor market and the lax Dutch labor market (Xhauflair et al., 2017). We purposefully selected three Belgian companies, resorting to a significant number of SCWs and operating in three sectors: banking and insurance (Insurall),
Analysis
The previous section offered three dimensions that allow the analysis of OCM practices offered within companies to be expending to their total workforce. This section best describes the three cases investigated in this study, regarding the career management practices provided towards SCWs. As shown below, the three cases highlight varying ways of managing SCWs' careers. First, we present the context of each company, the skilled contingent workforce they resort to, and their HRM department.
Results
As described in the previous section, the three cases differ greatly in regard to the culture, size, and sector in which they operate. They have distinct HR departments and offer different OCM practices. Table 2 summarizes the cases and characterizes companies’ OCM practices delivered to SCWs through the three dimensions: the degree of formalization, the degree of individual focus, and the degree of differentiation. Insurall stands at one end of the spectrum, as the company hardly involves SCWs
Discussion
In this section, several research propositions will be suggested and discussed. They represent attempts to link the three dimensions of OCM practices with three contextual variables that are likely to explain the use of SCWs and may contextualize the OCM practices offered to them (see Fig. 2). We do not claim to establish causal relationships between such contextual factors and OCM practices. Rather, these propositions pave the way for further research on OCM practices directed to SCWs.
Implications and further research
Our research constitutes a pioneering study in examining the OCM practices targeting SCWs. From a theoretical standpoint, our study paves the way for further research on career management for such a population of workers. It has long been thought that SCWs experienced only transactional relationships with client companies, as it was understood that both parties agreed to do so. Our study provides an analytical framework that is likely to enhance the understanding of formal and informal SCWs’
Conclusion
While most research is centered on career management of regular employees (King, 2004; Kossek et al., 1998; Sturges et al., 2002), this article focuses on OCM practices dedicated to SCWs. Existing studies often view careers of SCWs as self-managed and devoid of organizational support (King, 2004; Lo Presti et al., 2018). This vision emphasizes the willingness of individuals to control their careers and does not account for HRM policies and practices. However, we observed that SCWs may be
Funding source
This work was supported by the “Fonds de la Recherche Scientifique (FNRS)” and the “Fonds Wettenschappelijk Onderzoek – Vlaanderen (FWO)” under EOS Project n°O017618F.
Declaration of competing interest
None.
References (76)
- et al.
Organizational career management practices and objective career success: A systematic review and framework
Human Resource Management Review
(2019) - et al.
Emerging trends in contingent work research
Journal of Management
(2004) - et al.
Current thinking on contemporary careers: The key roles of sustainable HRM and sustainability of careers
Curr. Opin. Environ. Sustain.
(2017) - et al.
Externalizing employment: Flexible staffing arrangements in US organizations
Social Science Research
(2003) - et al.
Non-standard work arrangements and national context
European Management Journal
(2013) Career self-management: Its nature, causes and consequences
Journal of Vocational Behavior
(2004)- et al.
Examining the human resource architecture: The relationships among human capital, employment, and human resource configurations
Journal of Management
(2002) - et al.
Moderating effects of contingent work on the relationship between job insecurity and employee safety
Safety Science
(2018) - et al.
Differentiating the workforce: The performance effects of using contingent labor in a context of high-performance work systems
Journal of Business Research
(2014) - et al.
Tales of the unexpected: Integrating career shocks in the contemporary careers literature
SA Journal of Industrial Psychology
(2018)
Managing careers into the 21st century
The link between business strategy and industrial relations systems in American steel minimills
Industrial and Labor Relations Review
The economics of labor market intermediation: An analytic framework
Gurus, hired guns, and warm bodies: Itinerant experts in a knowledge economy
Career management practices: An empirical survey and implications
Human Resource Management
Labour flexibility and regional development: The role of labour market intermediaries
Regional Studies
Comparing the national contexts
Do peripheral workers do peripheral work? Comparing the use of highly skilled contractors and regular employees
ILR Review
Labor market intermediaries and the new paradigm for human resources
The Academy of Management Annals
Drivers of freelance career success
Journal of Organizational Behavior
Freelancing in Europe 2021
Using thematic analysis in psychology
Qualitative Research in Psychology
Managing sustainable development programmes: A learning approach to change
Work as commons: Internal labor markets, blended workforces and management
Classifying work in the new economy
Academy of Management Review
External churning and internal flexibility: Evidence on the functional flexibility and core-periphery hypotheses
Industrial Relations
Qualitative research designs: Selection and implementation
The Counseling Psychologist
The unexpected employee and organizational costs of skilled contingent workers
Human Resource Planning
Equality, Non-Discrimination and Work-Life Balance in Belgium
Career management in high-performing organizations: A set-theoretic approach
Human Resource Management
To move or not to move?: The relationship between career management and preferred career moves
Employee Relations
The professional career on the right track: A study on the interaction between career self-management and organizational career management in explaining employee outcomes
European Journal of Work & Organizational Psychology
A cross-level investigation of the relationship between career management practices and career-related attitudes
Group & Organization Management
Building theories from case study research
Academy of Management Review
New Forms of employment: 2020 update, new forms of employment series
Lower cost or just lower value? Modeling the organizational costs and benefits of contingent work
Academy of Management Discoveries
Cited by (13)
Professional characteristics of board secretaries and litigation risks
2024, Finance Research LettersEmployability skills: Profiling data scientists in the digital labour market
2022, European Management JournalCitation Excerpt :In summary, the role of the data scientist is becoming increasingly valuable in an array of fields in the global labour market. Nevertheless, this rapidly evolving profession is situated in the intersections among technological development, the concrete needs of a data-dependent market and the requirement for a highly interdisciplinary skillset that the individual pursuing this career must acquire through education and experience (Sulbout et al., 2022). This complex constellation of variables, as observed from the perspectives of different related stakeholders, creates an intricate scenario in which mismatches between the supply and demand of needed talent are not unexpected.
Ethical Culture in Organizations: A Review and Agenda for Future Research
2024, Business Ethics Quarterly(Not) seeing eye to eye on developmental HRM practices: perceptual (in)congruence and employee outcomes
2024, International Journal of Human Resource ManagementA relationship between perceived investment in temporary employee development and organizational performance: an empirical study
2023, Journal of Organizational Effectiveness