Contractor alliances and the new world of work

As the arrangements under which many people work are undergoing radical transformation, the conventional view of work - a permanent, full-time job within a formalised work organisation - is no longer relevant for many working people (Curtain 1996). More and more people are responsible for finding their own work, not as employees in stable organisations but through temporary short-term and contractual working arrangements (ACIRRT 1999; VandenHeuvel & Wooden 1999). Sometimes contractors join up with others in what can be called 'loosely coupled strategic alliances' (Owen & Bound 1998). The problem is that little is known about the knowledge, skills and attitudes required by contractors working in alliances with others to operate successfully, how the existing vocational and education training (VET) system meets these needs and the implications for VET for the future. This problem is at the heart of the current research study.

This study is exploratory in nature and therefore the results need to be interpreted with caution. However, the conclusions drawn may be suggestive of processes operating elsewhere in the labour force. It is contended that there are similarities in demands applying to contractors and employees in contemporary organisations. This is because, in contemporary work organisations, changes in work structures have resulted in workers employed on a permanent basis also being expected to 'act like subcontracted workers' (Smith, V 1997, p.331).

The qualitative design of this study is based on a case-study approach. Six strategic alliances were selected across three States and across different industries. Case studies were selected in New South Wales, Victoria and Tasmania. Purposeful sampling was used to identify strategic alliances for participation in the research. In all, 25 interviews were conducted, 13 with people participating in contractor alliances and 12 with those who were identified as stakeholders in the research study (for example, contracting organisations, VET providers). The alliances included:

• a business services alliance, where two of the six contractors involved were interviewed. The type of service provided by this alliance included the development and/or adaptation of systems including software and/or hardware to meet clients' office needs
• a building and construction alliance, which consisted of the two contractors interviewed and who operated their own small businesses, both of which were registered as partnerships. The work undertaken was residential painting, although it sometimes included internal painting of office blocks
• a community services alliance, which consisted of an independent contractor who had operated very successfully on her own for 10 years. The second alliance member, trading under her own name, combined working arrangements including working as an independent contractor and working as a part-time, casual employee of a large institution
• an environmental engineering alliance, which consisted of two contractors associated with two incorporated companies
• a training alliance, which consisted of interviewing three contractors, each from three incorporated companies. This alliance developed and delivered vocational education and training programs
• a communications and information technology alliance, where two contractors were interviewed from a loose network of creative writers and designers who used and developed information technology

The knowledge, skills and attitudes required by contractors to operate successfully can be described within four categories:

• the technical/specialist knowledge they have (their job content knowledge)
• the management skills required by people responsible for their own work
• the ability to work effectively with others
• the capacity for self-awareness and skills related to learning and development

The key findings include the following:

• In terms of technical skills, all contractors interviewed needed to be proficient in their job-specific technical knowledge and skills in order to value and market that work appropriately and to undertake the work reliably. Some alliances were formed where contractors had the same technical skills and knowledge and in these cases the alliance served the purpose of assisting contractors to manage the uneven demands for work. In other cases alliances were based on complementary job-specific knowledge and skills and the alliance served the purpose of expanding opportunities to undertake work.
• To work effectively in an alliance, contractors need to be able to recognise the strengths and limitations of their own technical/specialist skills and knowledge and that of others. They required a range of skills associated with managing the work, skills in identifying client needs, working with clients and managing client expectations.
• Contractor alliance members needed a strong sense of their own abilities. Metacognitive strategies and cultural understanding appear to be critical in contractor alliance work.

Key findings in relation to how learning occurred and its implications for VET include the following:

• The knowledge, skills and attitudes needed to maintain technical proficiency were obtained through a variety of means, including VET courses, teaming up with others who had the proficiencies, seeking information and talking with others. VET courses were used for a variety of purposes, including to extend networks and to learn skills for future needs.
• Learning by doing is supported by reading, using the Internet, learning from others in the alliance and through the use of networks.
• Better integration of research information on particular business sector trends into the VET sector is needed to support particular industry and business strategies.
• VET providers need the capacity to deliver short, just-in-time content, and require support to enable them to do so innovatively and creatively in a way that meets the demands of the target audience.
• There is a need to re-evaluate pre-service programs in terms of how they assist people to prepare for a new world of working arrangements where they may need to be more reliant on their own resources to find work, including seeking contracts and being self-employed.
• People involved in contractor alliances participate in many communication processes, including self-expression, as well as mutual problem identification, needs identification, conflict resolution and negotiation.
• Management-focussed courses need to be structured to include the knowledge, skills and attitudes required to plan, organise and manage a range of activities both individually and collectively, including the use of tools, such as those found in technologies, which enhance collaborative work. Such courses need to be specifically targetted at contractors, including those working in alliance arrangements.
• More work needs to be undertaken into group identity in relation to the concept of 'temporary teams' and its relationship to performance.
• Work on the competency 'cultural understanding' needs to recommence and be expanded to incorporate use of culture in both work and other social contexts.
• Further development should be undertaken on an additional generic competency 'learning to learn'. These attributes should subsequently be incorporated into all pre-service programs and schools.