We live at a pivotal time in history. A time where human interaction is changing from that of generations past, leading to significant cultural and behavioural change.
Technology is helping drive this transformation. Like Marshall McLuhan said, “the medium is the message.” Increasingly, people are connecting online rather than face to face. This enables us to stay continually connected whilst having a greater geographic reach. But it is also driving another change. Connectivity is altering our behaviour in relation to asset ownership. Take, for example, the younger generation’s eschewing of motor vehicles, which are seen as an unnecessary expense. In fact, technology is enabling people to efficiently share such resources. Car owners can now use an app to rent out their vehicle for short-term use when they are not using it, and others can enjoy a better, more reliable vehicle than if they had to buy it themselves.
I believe we have only begun to see the beginning of this trend. I foresee it extending to housing, employment and other spheres. And therein lies the challenge to current mindsets. The ‘need’ to own everything must change. Be it owning assets or ‘owning’ a particular skill set. Businesses will increasingly begin to engage a particular skill rather than employ it as the drive for profitability encourages a more efficient use of resources.
This is where Morpho Advisory comes in. Why employ a highly skilled treasury/markets/risk management function for 365 days of the year when, in practice, your business may only need those skills for a percentage of that time? Sure, you will be paying more on a daily rate basis than if you ‘owned’ these skills, but in absolute terms you will be saving a significant amount every year. Not to mention saving on administration and the hidden costs of holiday pay, sick leave, paid maternity leave, Kiwisaver, ACC levies, insurance, equipment, training & office space. Better still, by being more strategic in your utilisation of skilled resources you will also benefit by engaging more experienced people.
Seek engagement rather than employment and retain the best skills that are not just competitive in terms of cost, but deliver real value to your business.