Tech and digital transformation are evolving at a breakneck pace. Specialised skills are not always available within tech departments.
This is where the hybrid workforce model, a blend of permanent employees and contract talent, offers a solution. When companies lack the necessary tech talent to meet their objectives, the hybrid workforce model is a lifeline.
A hybrid workforce model
A hybrid workforce model enables businesses to fill critical skills gaps, particularly in complex areas like Enterprise Resource Planning (ERP) and cloud migration, without the long-term commitment of full-time hires.
The term 'hybrid workforce' has gained new prominence. Beyond its common use to describe remote and in-office working, it’s also a strategic blend of in-house staff and contractors, vital for digital transformation.
The challenge and opportunity
For HR teams, talent acquisition specialists, and hiring managers, the hybrid model presents both challenges and an opportunity. The key is to see contract talent not as a temporary fix, but as a strategic asset. Well-integrated contractors can bring experience, new perspectives, and approaches to problem-solving. They are often experts in a specific domain, having worked on similar projects across organisations. Contractor insight can be invaluable. In digital transformation projects, it helps avoid common pitfalls and fast-tracks project delivery.
A successful hybrid model
A successful hybrid model rests on a clear understanding of business and project needs. Before engaging contractors, the tech team should conduct a skills gap analysis. For example, a business migrating to a new cloud-based ERP system might identify a lack of in-house expertise in areas such as data migration, system integration, or change management for the new platform. Skilled contractors with experience in that ERP system can be onboarded to lead these critical workstreams.
Contractors solving the IT skills shortage
A report, IT and Tech Skills Gap Report 2024, by Hyve Managed Hosting found that 81% of UK businesses experience difficulties due to a shortage of skilled tech professionals. That’s why employers are increasingly looking for specific, project-based skills rather than hiring for a permanent role. This is the core rationale behind hiring contractors for digital transformation, which requires niche, temporary expertise in areas such as Cloud ERP, AI and data analytics.
A 2025 Guidant Global report notes that 75% of employers foresee blending their internal and external teams over the next one to two years to fill technical skills gaps.
This model is built for speed. With specific needs in high-demand areas like cloud computing, where employers are turning to contractors, businesses can deploy expert teams fast to avoid project delays and maintain their competitive edge.
Integrating permanent and contract staff
The integration process is paramount. Contractors can plug skill gaps without diluting company culture or distracting from long-term business goals. It’s a common misconception that contractors are simply external resources.
To be effective:
- Contractors must be treated as part of the core team. This means providing them with the necessary access to information, tools, and, crucially, a clear understanding of the company's culture and long-term goals.
- Onboarding should be streamlined, ensuring they can get up to speed quickly and start adding value from day one.
- Communication is key; regular check-ins and open dialogue between permanent staff and contractors help to build trust and a cohesive working environment.
How line managers can integrate teams
Start with shared goals
Kick off projects by bringing permanent staff and contractors together for a joint session or away day. This helps everyone align on objectives, understand each other’s roles, and build rapport.
Facilitate collaboration
Treat contractors as part of the core team by including them in regular meetings and knowledge-sharing sessions. This prevents an “us vs them” culture and encourages collaboration and learning.
Address pay resentment
Permanent staff may feel frustrated when contractors earn higher day rates. Line managers should explain the trade-offs (short-term contracts, lack of benefits, less stability) and balance this by recognising and rewarding the long-term contributions of their permanent employees.
Hybrid workforce model benefits
The benefits of this model extend beyond filling a skills gap.
- Cost-Effectiveness: It can be a cost-effective alternative to a full-time hire, particularly for project-based work with a defined end date.
- Speed to Delivery: Contractors can be onboarded quickly, helping projects hit the ground running and avoiding costly delays.
- Flexibility: Businesses can scale teams up or down based on project demand.
- Knowledge Transfer: Experienced contractors often share best practice and upskill permanent staff, leaving a lasting capability in-house.
- Reduced Risk: Bringing in specialists lowers the risk of mistakes in complex projects, ensuring compliance, security, and smooth delivery.
- Competitive Edge: In a competitive talent market, engaging with a diverse pool of talent is a significant advantage.
The hybrid workforce model is a modern approach to talent management. It enables businesses to build robust, agile teams capable of tackling complex digital transformation challenges. This is not a temporary trend but the future of how organisations build and manage their tech capabilities.
Looking for skilled contractors?
At NU Concept Solutions, we connect organisations with skilled contract talent. Get in touch with us today to find the expertise you need, when you need it.