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Christopher J. Dwyer

How Direct Sourcing Drives Talent Sustainability

In today’s dynamic business landscape, the age of “omni-channel talent acquisition” has emerged, providing businesses with diverse options to source and manage their workforce. From digital staffing marketplaces to traditional vendors and staffing suppliers, professional services, talent networks, and social media platforms, the choices are abundant. With this wealth of talent channels, matching project requirements with suitable skillsets has become more accessible than ever. Yet, securing top talent has grown increasingly challenging and competitive. Organizations that effectively harness direct sourcing and talent pools can cultivate a flexible, adaptable workforce, granting them a competitive advantage in a market that values agile, talent-centric responses to evolving business challenges and demands.

When it comes to direct sourcing, even the most basic programs can indeed yield tangible value, yet the stakes are higher than mere cost reduction and talent pipeline expansion. While these remain fundamental aspects, strategic approaches have evolved significantly since the concept’s rapid ascent years ago. In 2024, however, direct sourcing transcends its components; it embodies alignment with current and future business trajectories. Amidst an unsettled labor market and prevailing economic uncertainty, businesses engage in an ongoing battle for talent, confronted by historically low unemployment rates and millions of unfilled job openings. Concurrently, the Future of Work movement necessitates a shift in hiring strategies. Together, these factors present both a challenge and an opportunity for direct sourcing: enabling enterprises to foster a flexible and scalable workforce that sustains genuine talent development…and, more importantly: talent sustainability.

Over the past four years, direct sourcing has emerged as a dominant force in talent and workforce discussions, offering businesses a flexible avenue to engage directly with talent. Its profound impact on candidate experience, referral management, and talent community development has revolutionized how workers interact with potential employers, automated referrals, and cultivated on-demand talent pools. Additionally, direct sourcing leverages AI-driven technologies to enhance talent acquisition processes, streamlining candidate matching, assessment, and engagement, thereby optimizing recruitment outcomes.

As a preferred strategy for achieving genuine scalability and talent sustainability, direct sourcing aligns with organizations’ strategic goals, ensuring long-term prosperity by fostering employee engagement, development, and well-being. In addition, embracing socially responsible and ethical talent management practices further enhances workforce sustainability and equity, benefiting both the organization and its employees.

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Announcing the “2024 VMS Technology Advisor” Report

Vendor Management System (VMS) platforms are considered the cornerstone of the workforce solutions market, delivering sophisticated and automated functionality that holistically oversee critical facets of contingent and extended workforce management. Integrated seamlessly with Managed Service Providers (MSPs) in many cases, the VMS model has firmly established itself as a mature and pivotal platform in the ever-advancing realm of workforce management technology.

While early VMS iterations primarily served as automated procurement tools for staffing suppliers, these platforms have metamorphosed into the central “nexus” dictating all aspects of contingent and extended workforce management. Contemporary VMS solutions not only harmonize effortlessly with the principles of the Future of Work movement but also showcase remarkable advancements in navigating the intricacies of the modern workforce. In today’s dynamic, globalized technology market, Vendor Management Systems play a decisive role in charting the course of the “extended workforce.” This term encapsulates the next evolutionary phase, and modern VMS platforms have made substantial leaps in aligning with this progressive paradigm.

Ardent Partners and the Future of Work Exchange are excited to announce the publication of the 2024 edition of its VMS Technology Advisor report, the market-leading guide designed to help procurement, HR, human capital, and talent acquisition executives navigate the complex and mature VMS solutions marketplace. The new report analyzes and assesses the primary VMS solution providers in the marketplace today and offers a variety of strengths, considerations, and market fits for each VMS platform evaluated as part of the rigorous research study.

For procurement, HR, and talent acquisition executives, and especially leaders tasked with managing extended and contingent workforce programs, this is the go-to guidebook for VMS solution selection. Access the report here.

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Digital Staffing’s Impact on the Future of Work

In the ever-evolving landscape of talent and work, the phrase “digital staffing” has emerged as a pervasive buzzword, encompassing a wide array of solutions designed to streamline the process of finding, engaging, and sourcing workers. This term has transcended its origins and evolved into a transformative force that is reshaping the way businesses access and manage their talent pools. Ardent Partners and the Future of Work Exchange (FOWX) have often discussed digital staffing technology as a game-changer in the greater world of work.

At its core, digital staffing technology represents solutions that empower enterprises to hire freelance, independent, and contingent talent without the need for intermediary systems or suppliers. These solutions traverse beyond just the recruitment process; they encompass end-to-end workforce management, encompassing vital components such as project management, worker tracking, worker classification, compliance, and risk mitigation. In essence, digital staffing technology is a multifaceted approach that revolutionizes how companies access, engage, and manage their extended workforce (which, as FOWX research has found, comprises upwards of 49.5% of the average company’s total workforce).

As 2024 rolls on, it becomes abundantly clear that digital staffing technology is no longer confined to the basic online talent portals and freelancer networks that once characterized its typical candidate reach. Instead, today’s digital staffing platforms have morphed into full-fledged workforce management automation tools. They not only facilitate candidate engagement but also play pivotal roles in talent community development, talent pool creation, candidate experience management, and other progressive facets of extended workforce management. These platforms have transcended the boundaries of simple talent acquisition and have ushered in a new era of efficiency and innovation in workforce management.

Ardent Partners and the Future of Work Exchange recently discovered that utilization of digital staffing solutions has experienced an exponential growth of nearly 800% over the past five years. This statistic is nothing short of a testament to the profound impact these platforms have had on the Future of Work movement and the broader world of work and talent. It signifies a paradigm shift in how businesses approach talent acquisition and workforce management, reflecting an industry-wide recognition of the potential and benefits that digital staffing technology brings to the table.

One of the most significant drivers behind the rapid adoption of digital staffing technology is the pressing need for organizations to be more agile and adaptive in an ever-changing business landscape. The Gig Economy, remote work trends, and the desire for flexible talent solutions have all converged to make digital staffing technology a paramount consideration for forward-thinking enterprises.

These platforms provide companies with the agility to scale their workforce up or down as needed, ensuring they can swiftly adapt to market shifts or unforeseen challenges. Moreover, they grant organizations the power to tap into a global talent pool, unlocking an unprecedented level of diversity and expertise. In an era where talent is a critical competitive advantage (and often an enterprise’s top differentiator), these solutions empower businesses to secure the best-fit talent, regardless of geographical constraints.

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The Fluidity of the Future of Work

For well over a decade, the “Future of Work” phrase has elicited both excitement and confusion. There is an inherent joy associated with the pathways of progression around the concepts of “work,” yet, complexities remain from defining exactly what is the “future state” of how we work. As the phrase, and its subsequent movement, caught fire in the midst of the COVID-19 pandemic while the rules of work changed, the “Future of Work” became a foundational piece of business lexicon and we bore witness to an ever-evolving landscape of revolution, innovation, and technology.

Four years ago at this time, many of us (well, let’s be honest: all of us) were focused on the most critical of all Future of Work accelerants: remote and hybrid work. Who could know back then that this would open the floodgates into new and exciting ways of structuring workplace environments?

The Future of Work Exchange has oft-discussed this concept of “acceleration” in that pandemic-era restrictions, and, by consequence, the forced changes of how we work, pushed enterprises across the globe into a new era of work optimization.

With our backs against the proverbial wall, we responded by innovating. And by innovating, we continued to transform how we work, when we work, and where we work.

With nearly a quarter of 2024 in the books (time flies, doesn’t it?), the landscape of Future of Work-led shifts within the workplace (and how we work) represents the true fluidity of this movement; as technology continues to progress and as businesses seek to innovate around the areas of proficiency, efficiency, and productivity, we can anticipate a continuous evolution in the workplace dynamics, such as:

  • The much-vaunted four-day workweek. The Exchange’s John Yuva wrote about this strategy in 2023, finding that four-day workweeks “lead to lower stress levels as well as a happier and more loyal workforce,” as well as a major increase in productivity. The issue keeping the strategy from adoption, though? The vertical-to-vertical adherence to four days instead of five means that there’s a gap in customer- and client-facing servicing, leaving managers to struggle over another staffing issue in an era when the labor market is already volatile.
  • “Chronoworking” as a potential workplace disruptor. Chronoworking is innovative as it aligns work schedules with individuals’ peak productivity times, optimizing performance and creativity. However, its adoption can be challenging due to the need for a shift in traditional work paradigms, potential resistance from established routines, and the necessity for effective communication and coordination among team members following varied schedules
  • The convergence of new workforce generations and the importance of workplace culture. With Boomers mostly out of the workforce and Gen Xers approaching the last decade or so of their careers, it means that millennials and Gen Z workers represent the majority of today’s talent. Although this shift has been happening in some capacity over the past few years, the newer blend of workers means that there’s the utmost pressure on leaders to shore up workplace culture and ensure that the “work experience” meets the evolving requirements and desires of the younger generation.
  • The impact of AI on the workplace. Artificial intelligence is the next great level of innovation, with generative AI as its calling card. Generative AI is poised to revolutionize the future workplace by automating complex tasks, fostering creativity, and enhancing overall efficiency. Through its ability to autonomously generate content, solutions, and insights, generative AI will free up human resources to focus on higher-level decision-making and innovation. This transformative technology holds the potential to reshape workflows, streamline processes, and create a more dynamic and adaptive work environment, ultimately driving increased productivity and competitiveness in the evolving landscape of the modern workplace.

 

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When a Return to the Office and Workplace Culture Collide

Although it’s hard to believe, it’s been four years since the beginning of the COVID-19 pandemic. And in that time, several key Future of Work “accelerants” took the business arena by storm. The extended workforce, long a viable source of talent, saw a remarkable increase in utilization as businesses sought true workforce scalability in the face of uncertain times.

Direct sourcing began to take off as a means of nurturing talent communities and developing a near-self-sustaining source of on-demand expertise. Skills-based hiring emerged as a way to look “beyond” costs and pay rates to revolutionize how enterprises innovative and leverage next-generation skillsets.

Empathy-led leadership and emotional intelligence became crucial endeavors to separate the successful leaders from those that would eventually lose their staff to the Great Resignation. And, of course, the most famous Future of Work accelerant of all, remote and hybrid work, drew most of the spotlight and headlines.

In the wake of social distancing and quarantines and general fear of spreading a once-in-a-lifetime virus, many businesses (that could do so) quickly transitioned to a remote-first infrastructure. This, of course, raised numerous challenges, from issues with trust to concerns over worker productivity. As we know by now, the move to a hybrid workplace resulted in more benefits than drawbacks: in addition to staff having more control over their schedules, they also found that work-life integration vastly improved, as did overall wellness and satisfaction with their leadership, teams, and general everyday business lives. (And, of course, we covered all things remote work here on the Future of Work Exchange.)

While there were very early opponents of the remote work model (hi, Elon) and others that continued to rebel against the thought of workers being at their home offices (James Gorman, we see you), there was a clear and resounding outcome: remote and hybrid work would forever be a foundational element of the world of work.

Four years now removed from the beginning of the pandemic and three years since the arrival of highly-effective vaccines (not to mention two-plus years since the first inklings of “normalcy”), businesses have spent the past 18 or so months dabbling in “return-to-office” mandates that have essentially divided enterprise leaders, with some calling for extreme, pre-pandemic office structures and others sticking to pandemic-era hybrid formats.

While the benefits of both remote and hybrid workplaces are proven and abundantly clear at this stage, the hard truth is that, at some point, companies were bound to slowly increase the number of required days in office, regardless of their stance on RTO mandates.

The business arena of 2024 is the closest we know that resembles pre-pandemic life, and, as such, represents an opportunity for enterprise executives to harken back to those days when offices were bustling and proximity collaboration was an everyday occurrence. However, as stated here on the Exchange in the past, there’s no shoving that genie back into the bottle; workers and professionals not only desire the benefits of remote work, but have also learned the best ways to balance work-life integrational attributes within this model over the past few years.

Today, business leaders are engaged in a tug-of-war with their staff over RTO mandates and the best possible means of balancing “required in-office days” with ensuring workers want to come back to the office. And there’s a major aspect here that is critical to the future of in-office and traditional workplace structures: culture.

“Why would people abandon the comfort of their routine for a commute to the office? Culture is the answer. It’s the way they are treated upon arrival, the atmosphere of the building, and the motivation they feel from leaders and their fellow team members. Culture is empowering and dictates success, fueled by the everyday people who create it,” says Jim Love, Director, Strategic Client Solutions at Talent Solutions TAPFIN.

The very essence of an organization’s identity, values, and camaraderie is intricately tied to its culture, and this moment in time, when RTO mandates are becoming a norm, demands a deliberate and strategic approach. A thriving workplace culture is not merely a byproduct but a catalyst for productivity, innovation, and employee well-being. As employees transition back to shared physical spaces and traditional workplace environments, the culture sets the tone for collaboration, engagement, and a sense of purpose.

As RTO mandates become a part of the fabric of 2024, workplace culture will be the key to convincing workers to come back to the office.

“Culture isn’t one thing. It’s all the small things. And it doesn’t start at the top down. It starts when you smile at the front desk associate. Or when you thank the maintenance staff for the great work they do. Those compounding and small-but-mighty actions are what make people want to feel part of something bigger. Give them a reason to come back – make it ingrained in who you are as an organization,” says Love.

Neglecting the critical role of workplace culture in return-to-office mandates risks creating a sterile environment void of inspiration, hindering the potential for collective achievement and sustained success. In this pivotal juncture, organizations must not only welcome employees back to their desks but reinvigorate them with a vibrant, inclusive, and empowering culture that fuels the journey ahead.

Adds Love, “Don’t just acknowledge and appreciate culture…create and sustain it. Preach your culture, and when necessary, use words. It is the foundation we build to bring people together. When it’s created and sustained, people will come back. Authenticity is what matters…and your culture should shout that!”

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Navigating the Current and Future State of Total Talent Management

I’ve been in the Future of Work, talent acquisition, and workforce management arenas for nearly 18 years. Over that time, I’ve witnessed (as many of us have) two equally-devastating economic downturns, multiple waves of technological innovation, numerous hype cycles of various proportions, the continued evolution of talent management, and one worldwide pandemic that set off Future of Work-era accelerants that have shaped how we work today. Suffice to say, the last two decades have brought tremendous change to the greater world of work and talent.

Even though I identify as an “elder millennial” or “geriatric millennial,” I feel as if I’ve spent enough years in the business world to truly understand what is hype, what is theory, and, of course, what is reality. And in discussions with industry peers, procurement leaders, HR executives, talent acquisition leaders, Chief People Officers, and many, many workforce solution providers over the years, there is no strategy, concept, or topic that draws more debate than total talent management.

For years, conversations around total talent management typically follow one of three separate paths:

  • Total talent management is a revolutionary concept that will allow businesses to better strategize around their workforce given the real-time skills visibility and resource intelligence that TTM provides (via total talent acquisition, total talent intelligence, procurement and HR collaboration, and integrated VMS, RPO, HRIS, and similar systems).
  • Total talent management could one day be a reality, however, in an era when both traditional and extended talent engagement, acquisition, and management each have their separate, critical issues, businesses can tap into “elements” of TTM to derive some value (i.e., total talent intelligence).
  • Total talent management is nothing more than a myth.

There are, as well, arguments that sit in-between the bullets above, as many business leaders believe that total talent management could already be occurring in some mature organizations that have homegrown capabilities combined with cutting-edge strategies and technology to effectively centralize talent acquisition and talent management under a single program. Such a scenario could very well be a reality, given that there is no true set of guidelines for total talent management outside of the expected outcomes of such an initiative, particularly real-time talent intelligence (“total talent intelligence”), enhanced tracking and resource insights, skills-based and intelligence-led hiring, and on-demand fulfillment of new and open roles given existing expertise, depth of the workforce, etc.

The question then arises: Can something without a true current state envision a future state? The debate on total talent management challenges us to consider whether a concept that remains nebulous in its widespread adoption today can truly evolve into a standard practice tomorrow. Despite the skepticism and varying perspectives, one cannot dismiss the potential transformative power that TTM holds in reshaping the future of work and talent management.

In essence, a so-called “future state” of total talent management would revolve around and include these concepts:

  • Artificial intelligence as a central source of automation, knowledge, data, and insights, all of which catalyze skills-based hiring, real-time candidate recommendations based on total talent resources, and predictive modeling/scenario-building that enables deeper, long-term workforce planning (taking account of the total workforce).
  • An interweaving of next-generation integration that blends the best of VMS, ATS, RPO, direct sourcing, and digital recruitment technology to effectively streamline total talent acquisition processes.
  • Utilization of direct sourcing functionality and talent community capabilities to lean on company branding and workplace culture to build a sustainable talent model.
  • A strategic level of collaboration between internal divisions, particularly procurement, HR, talent acquisition, and recruitment, that transcends typical cross-functional coordination to effectively drive advanced talent engagement and sourcing.
  • An innovative spin on skills-based hiring that places expertise and skills at the very center of both traditional recruitment and non-employee candidate engagement to assess the presence of skills within the entire workforce and select or adapt the most suitable engagement method (and worker or resource) for the needed prerequisites.

As the total talent management debate unfolds, navigating between skepticism and optimism, the envisioned “future state” beckons—an era where artificial intelligence fuels skills-based hiring, next-gen integration revolutionizes acquisition processes, and strategic collaboration across divisions reshapes talent engagement. Whether TTM remains a nebulous concept or transforms into a standard practice, its potential to redefine the Future of Work and talent management cannot be dismissed, challenging us to envision a transformative landscape ahead.

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The Future of Work 2024

Back in December, the Future of Work Exchange hosted an exclusive webcast focused on the trends and strategies that would shape the world of talent and work in 2024. Opptly’s Lori Hock (CEO), Beeline’s Teresa Creech (Chief Corporate Development Officer), and Talent Solutions TAPFIN’s Bill Peters (VP of Global Workforce Strategy) joined me to discuss the current and future impact of artificial intelligence, the continued evolution of direct sourcing, the reality of total talent management, the criticality of diversity, and much more. If you missed the webinar, check out an on-demand replay below:

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The Future of Work Exchange Podcast, Episode 715: A Conversation With Christy Forest, CEO and Executive Director at LiveHire

The Future of Work Exchange Podcast welcomes Christy Forest, CEO and Executive Director at LiveHire, to discuss the current state of direct sourcing, the future of this high-impact strategy, the reality of total talent management, and much more.

This week’s podcast, sponsored by Worksuite, also highlights the importance of “balance” between human-centricity and digital evolution.

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“Balance” in the Future of Work: Harmonizing Human Centricity and Digital Evolution

It can be tough to strategize around the best-fit approach for optimizing how we get work done. Digital-focused plans have been top-of-mind for the past several years, with the concept of “digital transformation” a rightly-hyped strategy that prioritizes automation, linkage of enterprise systems, scalability of core processes, and (most importantly) real-time convergence and access of insights and data.

However, the “digital enterprise” cannot survive on technology alone. Innovation does not occur in a vacuum, regardless of just how advanced businesses software (and hardware) is across the greater organization. “Human centricity” should be heralded as a proactive and forward-thinking approach that places not just people in the center of work optimization, but the skillsets inherent within the human workforce.

From here, the old adage of what’s “better” for the business: people or technology? Digitization or humanization? Which is the best path forward, especially during what could be a rollercoaster, frenetic 2024?

First, though, there is the caveat of automation being different than digitization, which is different than innovation. All three are inherently linked, however, there is a vast separation between automating menial tasks and truly innovating around an enterprise’s core products and offerings.

Innovation is the key here, because, frankly, innovation only happens when there is a balance between human-centric strategies that prioritize skillsets and expertise and digital-focused initiatives that aim to harness the power of next-generation technology and platforms (a la artificial intelligence) to blaze a path ahead.

Innovation, thus, is not confined to technological advancements or next-generation platforms or solutions alone; it thrives when human creativity collaborates with cutting-edge tools. A true, innovation-ready mindset encompasses a culture that encourages collaboration, experimentation, and the continuous development of skills.

Organizations need to foster an environment that values and invests in the growth of their human capital, recognizing that the synergy between technology and human inventiveness is the recipe for transformative breakthroughs, and, consequently, sustained success during an era of globalized competition.

How is this “balance” achieved, then? Harmonizing digitization and humanization sounds simple on the surface, but more difficult to truly execute:

  • Prioritize the adoption, and more importantly, understanding of artificial intelligence and how it can augment, enhance, and power core businesses processes.
  • Invest in a skills-based hiring strategy that supersedes traditional talent acquisition approaches and instead places skillsets/expertise at the core of talent engagement initiatives.
  • Capitalize on the flexibility and agility inherent within today’s extended talent-heavy workforce and leverage expertise from non-employee workers to drive complex projects that require advanced skillsets.
  • Cultivate an environment that values and invests in the growth of the human workforce.
  • Recognize that the synergistic harmony between people and technology is the key to unlocking innovation and sustained organizational success.

In the pursuit of an optimal path forward, businesses must strive for a symbiotic approach that aligns technological investments and next-generation automation with the cultivation of a skilled and adaptable (and agile) workforce. The success of the modern enterprise in 2024 hinges on its ability to integrate digital advancements with a human-centric focus to foster innovation.

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