Flexible working: how managed services addresses more workforce needs than you may think

Recruiting and retaining talent has always been a priority for organisations and the impact of the pandemic has forced many to be more creative - and radical - in their approach. As many reassess elements such as where we work, the tasks that make up our roles and the opportunities for development that incentivise employees there is an emerging opportunity to use managed services as a way to support these plans.

And while there has always been a role for managed services to plug gaps or temporarily support an ambitious change programme amid lean resourcing, there’s more that it can help employers achieve. The challenge is to reassess that relationship - and consider it from a perspective of business partnership - in order to also look at how it can help with your long-term plans around upskilling and lasting value. In other words, to move from short-term outsourcing to sustained business outcomes.

A ‘great rethink’ on what we want from work

Our recent PwC workforce survey laid bare the challenge that faces employers. Over half of UK workers are currently weighing up whether they should move jobs. 1 in 5 are very, or extremely, likely to look for another job in the next year. Conversations are no longer confined to just bringing in the new skills and specialised talent that help organisations grow, but what’s needed to make sure those responsible for the day-to-day running stay.

In a climate of cost pressures, this can’t be solved with salary and benefits alone. It will take a renewed focus on the quality of employment offered. And the power of professional development and upskilling shouldn’t be underestimated. 68% of survey respondents prized a fulfilling job, giving employers a clear steer on how to differentiate themselves in a crowded market.

That opportunity is laid bare by the fact that our survey had only 31% of people feeling they had a clear plan to progress their career with their current employer. So we know there is both a desire for progression and the necessary scope to improve. The question is, how do employers who may not be specialists in areas such as payroll, tax or other back office functions do that in a meaningful and cost effective way?

Addressing workforce gaps with a business partner - not just an outsourcer

Those essential and universal business processes, critical functions such as tax, accounting or HR, can sometimes feel like an unloved part of an organisation. Few would consider them drivers of differentiation or growth - but when overlooked, they can certainly hold organisations back from achieving their full potential. The trick is finding ways to bring innovation, technology and best practice to these areas - and not necessarily relying on doing this all alone. Looking more imaginatively at how this can be delivered means not only are efficiencies found, but staff are upskilled and given access to new challenges, ways of working and opportunities. But to deliver on this potential needs applied, operational transformation - not simply process outsourcing. Which needs a different relationship with managed services - one more reflective of business partnership.

For example, by bringing in specialists from a business partner to work alongside the inhouse workforce can both show them the art of the possible through improving existing processes and operations and introducing new technology. At the same time, though, that partnering focus can develop staff’s skills to increase the feeling that this is part of a rewarding career.

“The group were struggling to keep on top of the growing complexity of European tax compliance as well as the challenge of locating and retaining tax professionals of an appropriate calibre. For me it's been a really interesting experience to take core tax technical advice, and then have a responsibility to ensure that gets embedded within the business, and really making sure rather than it just being advice, it becomes real for the clients.”

^{David Yates, Tax Partner, PwC UK}

In terms of how this can help upskill existing staff, our EMS team’s work with Nottingham City Council serves as another example. We ran a formal Change Academy, training their staff in crucial functions allowing the council to upskill staff while reducing on-going dependency on consultants. This approach is about delivering sustained outcomes, not a short-term fix.

“We have been incredibly fortunate to have such wonderful people supporting our development - both to us as Change Academy graduates and to our transforming organisation. Many thanks to all of you”

^{John, Change Academy Graduate, 2022}

Transformational support - whether for the short or long term

It’s equally risky for organisations in the current climate to overburden employees by not resourcing correctly. Tactical deployment of the right expertise is a way of making sure that staff don’t feel isolated or stressed out.

We see that many organisations are using this period of time to take on a wave of transformation or technology-led changes to respond to the changing market conditions. But in order to focus and adopt these changes successfully, organisations need the right business partner who can stand up teams quickly.

It’s essential to get a partner to work alongside existing teams - to design solutions and improvements that work for them. Rarely do off-the-shelf solutions neatly apply to an organisation - they require either customisation or a fully bespoke solution. And during this process, existing staff need experts alongside them making sure the changes are operationalised correctly and to their needs. By looking again when contracting out the advice, to push for support on delivering this alongside teams on the ground, business leaders can ensure that they get the results they need from in terms of the short-term transformation as well as the sustained business outcomes. Transformation that doesn’t stop when the project does.

“I’m really excited for what the next few years hold. We've got a fantastic nucleus of a team. We're working really well with our clients. This is one of the great things about this [EMS PMO as a Service] is, we're focused on continuous improvement, we're focused on meeting the next challenge and beating the next challenge. If we are continually learning, continually developing and building this service into new areas, then that is a fantastic outcome for both PwC and our clients.”

^{Bill Gasson, Consulting Partner, PwC UK}