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Today most companies combine three types of work forces. 1) A full-time employee, 2) A full-time or part-time contracted employee from another firm (e.g., Wipro or Cap Gemini) 3) Free-lancers (directly or via an intermediate firm) Full-time employees are usually the backbone of any company and its culture with contracted and free-lancers being mixed in to expand expertise and manage oscillating workloads in a cost-effective manner. We may now want to think of a fourth type of worker to reflect the forces of technology, shifting demographics and new mindsets: The Fractionalized Employee. Imagine if one could get both the continuity and loyalty of a long-term employee with the flexibility of cost management of a part time employee and the expertise of a free-lancer and do so in a way that both grows employees and retains them in the long run. Every employee in the company is given a choice to work 100%, 75% or 50% of their time. They get to select this at the beginning of every year or can adjust to a different level when a life event occurs No longer does an employee have to choose between staying or going or being torn trying to do two things at one time. If they wish to try out a different type of non-competitive job it behooves their employer from letting them do so because retaining half or three quarters of a talented person is better than zero. As importantly these external skills or vocations will make the employee better rounded and probably more productive. And there will be cost savings from both reduced compensation but also eliminating the friction and cost of severance, re-hiring, and training. And as AI makes companies realize they need to change, adapt and manage new talent mixes, fractionalized employment allows for a smart way to manage costs by dialing down employee cost while ensuring the dignity of continued employment, the security of continued health care and the enablement of those employees using the non-employment time to earn revenue or build new skills for an AI age or take care of personal needs. This will not just retain talent but attract new talent including the more seasoned who might only want to work half time. For the employee they do not have to give up an income stream, health benefits or a part of their identity to build new skills, pursue new horizons or take care of life’s events. The Fractionalized Employee model will allow companies to retain talent, grow talent, mix, and match talent in ways that are truly win-win. Employees gain greater flexibility, optionality, opportunity for growth, managing life stages, and time to build additional expertise. Employers can attract new types of talent, retain stars, elongate the careers of seasoned experts and long time employees, calibrate costs in humane ways that do not negatively impact culture, and enhance adaptability to changing circumstances. https://lnkd.in/gt_WypB8