How to hire in today’s project-based economy

Have you noticed that modern organisations seem to be in a never-ending cycle of back-to-back transformations? As we attempt to keep up with an ever-accelerating pace of change, a subtle but important shift has taken place in the way companies operate. Top-down, role-based hierarchies are giving way to project-based organisational structures in a trend observers have branded “the project economy”.  

Driven by faster product lifecycles, spurred by the constant need to innovate and enabled by technological efficiencies, worldwide project-oriented activity is predicted to surge to $20 trillion by 2027, with around 88 million people transitioning to project management roles.   

Projects – which are by nature focused on changing a business rather than simply running it – give organisations the opportunity to innovate, transform and adapt faster. The project-based approach is as much as mindset as it is a practical structure, helping teams rally around clear deliverables and objectives. The workforce itself is becoming more fluid in response, with managers assembling high-performing, agile teams made up of internal and external resources as and when required.  

Below, we explore how organisations can adapt their hiring and talent management approach to thrive in this new reality.

Adapting to the project economy 

Don’t worry – adapting to the project economy doesn’t mean heads of HR will need to throw out their recruitment strategies and start from scratch. Instead, hiring managers should reconsider the way they think about roles and capabilities, open the door to temporary workers and invest further in learning and development pathways. Writing for Forbes, Executive Coach Rebecca Zucker recommended thinking about the project-based approach as “an internal gig economy”.  Shifting to a project-based model doesn’t automatically guarantee an increase in generated value, however. Researchers found that only 35% of projects undertaken worldwide are considered successful (on budget, on time, on target), meaning trillions of dollars and countless hours are wasted every year. Evolving your hiring and training practices will reduce this risk and increase the likelihood of success in this new environment. 

Hiring and talent management in project economy

If your organisation is contemplating a project-based model, here are some factors to consider when hiring for the project economy.

Structure your hiring around your organisation’s portfolio of projects.

The goal is to build high-performing internal and external talent pools that can be rapidly assigned to multidisciplinary, cross-functional teams. Categorising projects and workers will enable you to assemble teams faster to tackle a specific mission.

Hire project management experts before competition heats up.

As the project economy gains steam, the size and number of projects carried out are expected to skyrocket. Every organisation will need someone to manage all that complexity. Organisations can expect competition for project management talent to increase dramatically (with an accompanying rise in salaries). Get ahead of the competition by hiring senior project management leaders now. 

In the project economy, everybody needs project management skills.

Avoid having a situation where project management skills are concentrated in the hands of a few experts at the top of your organisation. Technical skills and subject matter expertise will always be crucial, but all candidates should also be assessed on softer skills including project management, their change management ability, coach-ability, business acumen, autonomy and adaptability. 

Shifting to a project economy will boost engagement

IBM Executive Cindy Anderson explained how the “projectification of work” is more engaging for workers than being hired to fill a single, specific role: “Next-generation knowledge workers, increasingly, are less interested in lifetime employment than in fulfilling, engaging assignments that allow them to build skills and experiences they can take anywhere.”  

Open the door to temporary workers

There’s no right or wrong way to create a project team. It could be made entirely of internal workers or be completely outsourced to a third-party team. Most commonly, project teams are made up of a mixture of internal staff and external experts who join the team for the length of the project, then move on.  

Decentralise and empower

Project teams won’t thrive if the organisation attempts to manage them with the traditional, top-down command-and-control model. Empower teams to work autonomously through a collaborative model built around shared goals, values and purpose.    

Leverage tech-enabled talent acquisition and talent management strategies

Ensure your HR technology is fit-for-purpose in the project economy. For example, managers should be able to search the HR system by a specific capability to discover the right people they need to join an upcoming cross-disciplinary project team. The system should also flag areas where hiring or training is necessary to avoid talent gaps for future projects.  

Get agile

While agile is a distinct methodology, a lot of its principles (such as continuous improvement and cross-functional teamwork) can be very useful in the project economy. Assess candidates for their flexibility and willingness to learn, respond to feedback and consider using agile approaches as a key part of your learning and development program to get the most out of project teams.    

Transitioning to the project economy is a project in itself and is best managed iteratively rather than attempting a sudden, enterprise-wide switch. Start by choosing an upcoming project in the near to mid-term, review the hiring or training required to build an effective cross-functional team, then empower your new project team with the technology and freedom they need to thrive. Organisations that can adapt their hiring and training to the project economy will have a clear advantage in the new world of work.