For years, companies treated team size as something fixed. Headcount plans were set annually, roles were defined in advance, and hiring was optimised for stability rather than speed.
That model is broken.
In its place, a new structure has settled: the Elastic Team.
Elastic teams are built to expand and contract based on real work needs, not long-term assumptions. They combine a stable core with flexible, on-demand expertise, allowing companies to move faster without sacrificing quality.
Why the Traditional Team Model Is Under Pressure
Several forces are converging to make rigid team structures harder to sustain.
First, work itself has changed. Projects are shorter, roadmaps shift more often, and new technologies appear faster than most hiring cycles can accommodate.
Second, workers are changing. According to Deloitte’s Global 2025 Gen Z and Millennial Survey, Gen Z and Millennials are projected to make up 74% of the global workforce by 2030, and they increasingly prioritise flexibility, meaningful work, and continuous learning over traditional career ladders. Only 6% of Gen Z respondents say reaching senior leadership positions is their primary career goal, signalling a shift away from long, linear career paths.
Third, speed has become a competitive advantage. The same Deloitte survey shows that nearly one-third of Gen Z respondents plan to switch employers within the next two years, reflecting a workforce that is far more mobile and opportunity-driven than previous generations.
Together, these trends make it risky to lock all capacity into permanent roles.
What Is an Elastic Team?
An Elastic Team is made up of two layers:
The Core Team
The core team owns long-term strategy, architecture, and product direction. These are the people who ensure continuity, culture, and decision-making stability.
The Elastic Layer
The elastic layer consists of specialists brought in as needed. This may include freelancers, contractors, or project-based contributors with specific expertise.
They are added when:
And scaled back once the work is complete. The result is a team that adapts to reality instead of fighting it.
Why Elastic Teams Perform Better
Elastic teams outperform rigid teams for three main reasons.
1. Faster Time to Impact
Because elastic teams hire for skills rather than titles, they reduce the time spent searching for “perfect” long-term fits. Work starts sooner, and impact happens faster.
This matters in a world where, according to Deloitte, 57% of Gen Z and 56% of Millennials already use GenAI tools at work, accelerating how quickly skilled individuals can contribute across organisations.
2. Better Skill Matching
Traditional roles bundle many responsibilities into one job description. Elastic teams unbundle them.
Instead of hiring one person to cover everything, companies bring in exactly the expertise required for a specific outcome. This leads to higher-quality execution and less skill dilution.
3. Lower Long-Term Risk
Elastic teams reduce the risk of over-hiring during growth phases and painful corrections later. Capacity becomes adjustable, which is especially important in uncertain economic conditions.
As Deloitte highlights, cost-of-living pressures and financial uncertainty remain high among Gen Z and Millennials, reinforcing the importance of flexible, sustainable work models for both companies and workers.
A Simple Example of an Elastic Team
Consider a SaaS company preparing for a major project launch.
After launch, the elastic layer scales down. No layoffs. No long-term overhead. Delivery stays on track.
That is elasticity in action.
The Bigger Shift
The rise of the elastic team is not about freelancers versus employees. It is about designing organisations that can change without breaking.
In a market defined by uncertainty and speed, elasticity is not a workaround. It is a strategy.
Companies that embrace elastic teams will move faster, manage risk better, and access talent that rigid structures simply cannot.
Source: Deloitte Global 2025 Gen Z and Millennial Survey (23,482 respondents across 44 countries).