They’re Not Employees, They’re People

Abstract

In this essay, business thinker Peter Drucker examines the changing dynamics of the workforce--in particular, the need for organizations to take just as much care and responsibility when managing temporary and contract workers as they do with their traditional employees. Two fast-growing trends are demanding that business leaders pay more attention to employee relations, Drucker says. First is the rise of the temporary, or contract, workers; 8 million to 10 million temp workers are placed each day worldwide. And they're not just filling in at reception desks. Today, there are temp suppliers for every kind of job, all the way up to CEO. Second, a growing number of businesses are outsourcing their employee relations to professional employee organizations (PEOs)--third-party groups that handle the ever mounting administrative tasks associated with managing a company's employees. (Managers can easily spend up to one-quarter of their time on employee-related rules, regulations, and paperwork.) Driving these trends, Drucker observes, is the shift from a dependency on manual labor to create wealth and jobs to a dependency on specialization and knowledge. Leaders are increasingly trying to keep up with the needs of many small groups of product or service experts within their companies. Temps and PEOs free up leaders to focus on the business rather than on HR files and paperwork. But if organizations outsource those functions, they need to be careful not to damage relationship with their people in the process, Drucker concludes. After all, developing talent is business's most important task--the sine qua non of competition in a knowledge economy.

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