The extended workforce has revolutionized the ways work gets done, giving businesses an opportunity to react dynamically to real-world problems and challenges while leaning on an agile network of top-tier skillsets and expertise. Future of Work Exchange research has consistently found that enterprises drive incredible value from the utilization of the extended workforce, especially in the face of a continued global pandemic that has reinforced the need for flexible talent, the ability to scale staff, and align mission-critical projects with all-world expertise.
Ardent Partners and the Future of Work Exchange define the extended workforce as “the evolution of contingent labor and accounts for major transformations and talent shifts happening in today’s world of work and talent. The extended workforce’s strategic value and impact are driven by the utilization of contractors, freelancers, gig workers, talent pool candidates, professional services, and other forms of non-employee talent, and is enabled by innovation within talent acquisition (such as digital staffing, direct sourcing, and talent marketplaces).”
There’s a big piece of the extended workforce value proposition that cannot be ignored: contingent workforce management (CWM). The extended workforce represents evolution and progression, and CWM reinforces the need to apply both tactical and strategic capabilities, as well as the right technology, to drive many layers of value from this growing bucket of talent (which now represents nearly 47% of the average company’s total talent).
The non-employee workforce represents something entirely different than it did years ago. Today’s non-employee talent is a core element to organizational success, enabling businesses with the level of workforce agility required to become more dynamic in response customer, competitor, and market actions. With nearly half of the total workforce considered contingent in some sense, it is incumbent upon businesses to drive maximum value from their extended workforce. Ignoring this area of talent is essentially ignoring almost half of the people running the enterprise – executives that ignore the extended workforce in 2021 are guilty of human capital management malpractice.
There are several nuances to contingent workforce management in 2021, some of which are progressive concepts that reinforce the shifting links between talent and the way work is addressed and done. Other distinctions inherent in today’s extended workforce are direct ramifications of a challenging 2020 and reflect the major shifts in 1) how enterprises now perceive their skillsets and expertise, 2) how these workers support mission-critical projects and initiatives, and 3) how the impact of crucial changes (societal changes, progression of technology, etc.) in the talent acquisition arena will continue to transform how work is done.
In 2021, the average business is actively addressing critical organizational endeavors with a variety of non-employee skillsets and talent, choosing to converge their traditional full-time workers with the unique expertise inherent in the extended talent pool. Future of Work Exchange research finds that the typical business, however, must leverage a series of tool, solutions, and strategies to derive the true value of this workforce:
- Contingent workforce management practices have long followed a robust blend of technology, process, and strategy orientation that is marked by efficiencies across the end-to-end spectrum of talent and work. Best-in-Class programs are built on core capabilities that drive consistent talent acquisition approaches, proper optimization of talent channels and sources, and cross-functional coordination between key internal stakeholders.
- Technology and innovation are central to the Future of Work movement. As businesses transform the way they engage and leverage talent, and as they undergo major shifts in work optimization, automation will be the ultimate linchpin for these strategies. Best-in-Class organizations are actively relying on several key technology platforms to better engage talent, enhance workforce management, and drive flexibility and agility, such as VMS platforms, extended workforce solutions, digital and on-demand staffing, MSPs, and direct sourcing technology.
- Eighty-two percent (82%) of Best-in-Class enterprises have integrated SOW management and services procurement into their core CWM programs, a fact that reinforces the need for businesses to effectively track, monitor, and manage all elements of their extended workforce (not just the contingent laborers). Often augmented by VMS or extended workforce solutions, Best-in-Class businesses have integrated capabilities into their programs that include resource-tracking, milestone and delivery date visibility, full sourcing and bidding processes, and other processes required to manage what is often considered the largest chunk of non-employee workforce spend.
In looking at the role of the extended workforce, the key to success is multifaceted and wide-spanning: embrace the evolution of talent, tap into both traditional and progressive platforms, and leverage next-generation strategies to best align the workplace environment with the ideal-fit talent and skillsets. Top-performing organizations are leading the next era of work optimization because they are actively adapting to the major shifts in the talent and work arena while also cultivating a culture of agility and flexibility.
