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John Yuva

Upwork’s Work Without Limits: Grand Redesign with Tim Sanders

Upwork, a global talent and work platform, recently held its Work Without Limits summit as an in-person and streaming event in Chicago. The main stage was filled with customer and enterprise presenters, including Upwork’s Tim Sanders, vice president of client strategy, who discussed the grand redesign opportunity and what the breakdown of the old rules of work means for companies today. (Check out the Future of Work Exchange‘s coverage of the event.)

Defining Grand Redesign

Sanders began his session with a fascinating story about the rise of Shantanu Narayen to CEO of Adobe Inc. in 2007. Adobe was a behemoth software company known for its innovative products like Illustrator, Photoshop, Acrobat, and many others. In the industry, it was second only to its rival Microsoft.

However, in 2007, the company experienced the ramifications of software piracy, losing $1 billion. A year later, the Great Recession took its toll on the company’s flagship Adobe Creative Suite product offering. At a $1,800 price point, companies closed their wallets and revenue declined 20% within the first eight weeks of the recession.

What was Adobe’s response? Mark Garrett, Adobe’s chief financial officer in 2008, recognized the potential of cloud-based subscription models. Thus, the company embarked on its grand redesign, transforming from a physical product-oriented company to a 100% digital, cloud-based subscription service. In 2012, Adobe released Creative Cloud to the world with an entry-level price point of less than $60 compared to $1,800.

Sanders noted that Adobe’s grand redesign was one of the biggest turnarounds in corporate history, growing its market cap from $15 billion in 2012 to more than $200 billion today. Knowing not to rest and accept the status quo, especially during a recession, the company leveraged the opportunity to combine desktop, mobile, and services into a single customer package — shutting the door to the competition.

Our Present Grand Redesign Opportunity

This brings us to today. Sanders explains that companies are experiencing another period of great disruption — the COVID-19 pandemic and its impacts. Now is the time to move beyond the status quo and redesign the workplace. He says there are six workplace design options on the table.

  1. Remote first. Companies that choose this design option fully embrace remote work and use it strategically as part of their operational and talent acquisition models.
  2. Remote-friendly. More organizations are choosing a remote-friendly design that embraces a distributed workforce for certain roles, talents, and situations. It is not a complete remote first transition, but companies are willing to consider it as a possible default. Sanders says that if companies are not remote first, they must accept remote-friendly to be competitive.
  3. Remote for now. This has been the workplace design model for many companies since the beginning of the pandemic. However, this model will disappear as companies commit to a long-term design strategy.
  4. Hybrid by role. Essentially, certain roles (e.g., doctors, nurses, warehouse workers, etc.) must be in-person due to the work type. Other roles can be accomplished remotely.
  5. Hybrid-by-day mix. In many ways, this is simply a compromise for those who want to be remote. It allows remote work for two to three days per week. The drawbacks? There are no savings on real estate costs and there’s a reliance on local talent.
  6. Onsite first. Everyone is required to work on-site with few to no remote work options. For retail organizations, Sanders questions whether it’s necessary for marketing or back-office technology employees to work on-site. There are remote work opportunities that could be leveraged.
Tim Sanders, VP of Client Strategy at Upwork, discusses “The Grand Redesign.” (Photo credit: Upwork)

Identify Your Model to Rewire Your Organization for Remote-First

Which workplace design model represents your company? Answer that question first, says Sanders, then pose three additional questions.

  1. Are you satisfied with the talent in your local markets to make you competitive to achieve digital transformation and stand-up artificial intelligence? Are you ready? Are your local markets really that strong?

And as a follow-up question, are there any remote-first companies running recruitment ads in your market? If so, that’s going to change the picture even if you think you’re comfortable with the strength of your local market.

  1. Have your leaders figured out managing based on outcomes or are they still stuck in the past of AAA management — attendance, attitude, and aptitude?

If your leaders have learned how to manage based on outcomes, then they’re completely equipped to manage without seeing people physically every day in the office.

  1. Have you invested in tools and training for people to learn how to collaborate and culture-build at a distance?

Culture is not about your office. Instead, culture is a conversation led by leaders about how we do things here. It’s about storytelling and how we succeeded in the past. If you want to build a better culture, focus on cadence, not location.

Sanders says these are the questions to ask yourself. The good news? As you embrace remote-first (or at the very least, remote-friendly) workplace design, you are going to rewire the organization.

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Develop Your Soft Skills for the Future

When I think about the Future of Work, communication, collaboration, and innovation immediately come to mind. There is an elicited sense of interconnectedness between companies and their suppliers, leaders and their workforce, and among employees themselves. What is the success enabler of the Future of Work? If you tear back the curtain, it’s soft skills that are driving business outcomes and workforce interactions.

Think this is a new revelation? Not quite. In 1918, the Carnegie Foundation published Charles Riborg Mann’s A Study of Engineering Education, which cited that 85% of a person’s job success is a product of soft skills and that only 15% of success is based on technical knowledge. Even more than 100 years ago, the criticality of workplace soft skills was being emphasized. However, the pandemic helped bring soft skills into sharper focus as other Future of Work elements (e.g., flexibility, remote work, empathetic leadership) became mainstream concepts and areas of importance.

Soft Skills in the Age of COVID-19

Our new normal is a volatile, fast-moving business environment. Companies must adopt a more proactive approach toward market change and customer demand. As such, the silos that exist within the four walls of many enterprises must come down. Workplace silos are the barriers to soft skill execution.

Even leading up to the pandemic, LinkedIn’s 2019 Global Talent Trends report revealed that soft skills (91%) were the top trend transforming the workplace as cited by talent professionals. Soft skills, such as creativity, adaptability, and time management, are critical to the future of recruiting and HR. In the same LinkedIn report, several vital statistics emerged:

  • Eighty percent of survey respondents said soft skills are increasingly important to company success.
  • When hiring talent, 91% of respondents said soft skills were as important or more so than hard skills.
  • In the case of a bad hire, 89% agreed that the employee typically lacked soft skills.

Since the pandemic, the need for soft skills has only amplified. The remote workforce environment during the previous two years brought soft skills into the spotlight as employees adjusted to communicating and collaborating virtually with colleagues and partners. Learning to work together on a project as a remote team or understanding the emotional needs of your team members amid a pandemic reinforced why soft skills are essential. For some, it brought attention to further invest in their soft skills toolset.

Essential Soft Skills for the Future of Work

Navigating today’s workplace with both a remote and in-person workforce requires a host of soft skills to operate efficiently and productively. The following are several soft skills and how they affect the Future of Work.

Emotional intelligence. At its core, emotional intelligence is the ability to make human connections and understand the perspectives of others. This soft skill is essential from the highest levels of the enterprise downward. Empathetic leadership is now a desired trait for senior leaders and people managers. However, without possessing emotional intelligence, it will be difficult for those managers to grasp how their actions affect the team dynamic or to sense the feelings of others. It is crucial that employees at every level continually develop their emotional intelligence skill set. How you react to challenging situations or adapt to change speaks volumes about your level of EI. Do not underestimate the consequences of hiring candidates who lack emotional intelligence.

Creativity. Some may consider creativity a soft skill reserved for the marketing department or other content/design-oriented functions. Not so. Creativity refers to assessing a situation or challenge and developing a solution that’s unique or outside the box. Consider procurement and its ability to devise alternative sourcing channels in the face of adversity. Often, those solutions are outside what companies have considered in the past. Automation continues to replace certain job tasks; however, technology lacks the ability to “think” creatively like humans. Thus, creativity is a soft skill that will always trump the “0”s and “1”s of a machine. Seldom does a situation not benefit by asking: Have you thought about doing it another way?

Critical thinking and analysis. Data is all around us. How we gather data and interpret it to make decisions is a valuable soft skill. Procurement and HR receive an abundance of data on workforce output and operational needs. Critical thinking and analysis can lead to the discovery of significant productivity trends the company can then address. The ability to use data to evaluate situations and offer solutions is a soft skill that will always be in demand. You want those people who can find an outlier among a sea of data and propose innovative solutions.

Adaptability and learnability. Technology is evolving quickly and processes are redesigned frequently. The ability to roll with changes and adapt is a vital soft skill. There’s no longer room for the excuse “we’ve always done it this way.” In some cases, companies must reinvent themselves to survive a market or industry transition. Adjusting successfully to change of any magnitude can help put employees on the path to leadership roles.

Learning what needs to be known is also a soft skill imperative. When companies seemingly overnight went remote operationally, it forced those who are uncomfortable with change and learning new skills to make that transition. Going forward, companies should use the pandemic as an example to motivate employees about their ability to adapt and learn.

Assess Candidate Soft Skills

With just a few soft skills described previously, how can companies assess the soft skills of job candidates? In the 2019 LinkedIn report, 57% percent of respondents said their company lacked a formal process for soft skill assessment. While it can be challenging to assess, there are methods to evaluate a job candidate’s soft skills.

First and foremost, companies should identify what soft skills are most pertinent to their workforce. Company surveys and interviews can help HR determine those specific skill sets to then build questions into talent screening and interviewing processes. LinkedIn identified online tools, such as Koru and Pymetrics, that screen candidates for soft skills.

During the interview process, not only ask candidates what soft skills they think will benefit the role but prepare an exercise to put those skills into action. It may be a project that requires working alongside potential team members to gauge collaborative and teamwork effectiveness. Introduce problem-solving challenges that are specific to the role to ascertain candidates’ critical thinking and cognitive flexibility soft skills.

Technical skills and knowledge (hard skills) remain important workforce attributes. However, soft skills enable employees to learn hard skills if they don’t already exist. A workforce with strong soft skills can weather the storms with adaptability, critical and creative thinking, collaboration and coordination, and compassion.

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Four-Day Work Week Put to the Test

While remote and hybrid work models are nearly synonymous with the Future of Work, the four-day work week is gaining renewed attention as a characteristic of workplace flexibility. Certainly not a novel concept, the pandemic helped elevate four-day work week discussions as companies sought to bring employees back into the office. Advocates of the four-day work week are encouraging companies to join pilot programs to test the waters and determine its viability.

It is important to differentiate the four-day work week model from a compressed work week. Employees who work a compressed week are still working 40 or more hours over four days. A four-day work week means working 8 hours per day, 32 hours per week with the same pay as a 40-hour week.

However, various studies have shown that a four-day work week can produce higher productivity levels compared to employees working more days with longer hours. A four-day work week can also lead to lower stress levels as well as a happier and more loyal workforce. When employees know that their company values flexibility and work/life balance, there’s a greater commitment toward enterprise goals. It is this insight that led to a drastic change in work hours/days in the early 1900s.

Work Hours and Days Not Etched in Stone

Historically, until the 20th century, the work week spanned six days, averaging 80-to-100 hours per week, with the majority of labor working in factories or heavy manufacturing. In 1926, however, the Ford Motor Company transitioned to five days, 40 hours per week due to productivity insights of its workers. TIME highlighted Henry Ford’s philosophy on this in his company’s Ford News in October, “Just as the eight-hour day opened our way to prosperity in America, so the five-day workweek will open our way to still greater prosperity … It is high time to rid ourselves of the notion that leisure for workmen is either lost time or a class privilege.”

The Fair Labor Standards Act, passed in 1938 and amended in 1940 by Congress, made the 40-hour work week standard. Thus, the notion that the work week cannot be anything less than five days, 40 hours per week is not realistic given our current times. As evidenced by the Future of Work movement, today’s workplace landscape shows yet another tectonic shift in workforce productivity and engagement.

Now, more than ever, with remote work becoming a mainstream workforce model, it is relevant to further explore the four-day work week concept. And that’s exactly what hundreds of companies are undertaking across the world from Europe to North America and beyond.

Largest Four-Day Work Week Pilot Launched in the UK

The largest-ever four-day work week pilot is occurring in the United Kingdom from June to December 2022. Led by 4 Day Week Global in partnership with leading think tank Autonomy, the 4 Day Week UK Campaign, and researchers at Cambridge University, Boston College, and Oxford University, there are more than 70 organizations varying in size and sector participating in the six-month trial, including over 3,300 employees who are being paid one day off weekly during the six-month pilot.

According to Joe O’Connor, 4 Day Week Global CEO, “The organizations in the United Kingdom pilot are contributing real-time data and knowledge that are worth their weight in gold. Essentially, they are laying the foundation for the future of work by putting a four-day week into practice, across every size of business and nearly every sector, and telling us exactly what they are finding as they go,” he says.

“We are learning that for many it is a fairly smooth transition and for some there are some understandable hurdles — especially among those which have comparatively fixed or inflexible practices, systems, or cultures that date back well into the last century,” O’Connor adds.

With the pilot now at its halfway point, all participating organizations were sent a series of questions with multi-choice answers on a scale of 1 to 5. According to 4 Day Week Global, of those that responded (41 out of the 70 companies), here are some insights on the four-day work week at this juncture in the trial:

  • 88% of respondents stated that the four-day week is working “well” for their business at this stage in the trial.
  • 46% of respondents say their business productivity has “maintained around the same level,” while 34% report that it has “improved slightly,” and 15% say it has “improved significantly.”
  • On how smooth the transition to a four-day week has been (with ‘5’ being “extremely smooth” and ‘1’ being “extremely challenging”), 29% of respondents selected ‘5’, 49% selected ‘4’ and 20% selected ‘3’.
  • 86% of respondents stated that at this juncture in the trial, they would be “extremely likely” and or “likely” to consider retaining the four-day week policy after the trial period.

A Bright Future for Workplace Flexibility

The outlook is encouraging for four-day work week adoption for some of the companies involved in the pilot. The fact that 49% of the company respondents are seeing an improvement in business productivity is something to note as well. The Future of Work Exchange will follow up once the pilot concludes in December.

In the meantime, if your company is interested in a 4 Day Week Global pilot in the United States or Canada, information can be found here.

Ultimately, companies will need to determine how a four-day work week impacts their business and workforce model. Flexibility of any kind within today’s enterprises is critical to talent acquisition and retention. Companies that tested but decided against adopting a four-day work week have still realized the importance of flexibility and implemented other measures from no-meeting Thursdays to seasonal half-day Fridays. Determine what is meaningful from a stress and work/life balance perspective and use that as a starting point for a flexible workplace program.

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Unretired but not Irrelevant

Since the beginning of the Great Resignation in 2021, millions of workers have left the workforce — many retiring from the job market altogether. However, some of those retirees have now unretired and reentered the workforce. According to Nick Bunker, economic research director for North America at the Indeed Hiring Lab, as of March 2022, 3.2% of workers who retired a year earlier are now employed. What does this mean for companies and the Future of Work? Essentially, there remains a large talent pool of unretired seniors who bring varied skillsets and interest in remote work — a perfect combination for a pipeline of contingent labor.

The Pandemic Spurs Mass Retirement

Most of the planet can relate to how COVID-19 affected our work lives. Throughout the first two years of the pandemic, many senior workers decided to retire from the workforce. However, it occurred in unprecedented numbers.

During a Federal Reserve Bank of St. Louis podcast titled “Retirements Increased During the COVID-19 Pandemic: Who Retired and Why?,” Miguel Faria-E-Castro, a research economist at the Federal Reserve Bank of St. Louis, remarked on the number and the reasons for retirements beyond what was expected as the baby boomer generation exits the workforce.

“… And actually, I find that there were about 2.6 million excess retirees on top of what those trends would predict. And there are many reasons why people are retiring during COVID-19. There’s the fact that older people tend to be more susceptible to severe illness from COVID-19,” he says.

“There’s the fact that many of these older workers had to care for loved ones who used to be in daycare institutions that were now subject to lockdowns, and there’s also the fact that asset values were rising very rapidly during the COVID-19 pandemic, which might have influenced the value of pension and retirement accounts,” Faria-E-Castro adds.

Despite the reasons behind retirements, 2022 witnessed the return of many retired workers to the workforce.

A Generational Return

While retirement numbers reached unprecedented levels, the availability of COVID-19 vaccines, along with simpler and more obvious reasons like boredom and a sense of purpose, prompted retired workers to find employment.

Other reasons to return include:

Inflation. According to the latest U.S. Department of Labor data, the inflation rate for the United States is 8.3% for the 12 months ended August 2022 — an increase of 8.5% previously. Higher prices throughout a variety of industry sectors including food and beverage and consumer products are causing financial hardships for retired workers. Returning to the workforce is helping to ease that burden as well as pay for rising healthcare expenses

Tight labor market. A tight labor market means available jobs. Prior to the pandemic, employment opportunities for older workers were less plentiful and even scarce. However, with the enticement of flexible hours and remote work to fill open positions, enterprises are opening their doors to unretired employees — and they’re taking those opportunities.

Higher wages. Companies understand that the lack of talent requires a higher wage to lure candidates. Unretiring to supplement pension and Social Security payments is helping to offset inflationary pressures on monthly expenses.

Leverage Senior Talent for Greater Value

Now that senior workers are returning to the workplace, how can companies best utilize this unique talent pool? In her Forbes article, “Is the ‘Great Resignation’ Actually a Mass Retirement,” Avivah Wittenberg-Cox, CEO of 20-first, a global balance consultancy based in London, highlighted three critical areas for how companies can retain older workers.

Build senior talent into your D&I strategy. When examining the makeup of your workforce, how many are older employees? It is critical to know the age distribution of your workplace for a variety of reasons. First, it may be a sign that the enterprise lacks diversity in its senior talent. There is much to be said about a multi-generational workplace and the advantages of pairing younger workers with more seasoned employees. Second, tribal knowledge is rarely written down for the benefit of others. Whether it’s processes, procedures, or shortcut efficiencies, companies rarely capture that knowledge before employees retire and it’s gone forever. Third, transparency in your age distribution can lead to a strategic outlook on potential succession plans. It should also serve as a significant part of your knowledge management process.

Invest in professional development. As humans, we’re always learning. And in today’s enterprises, change is a constant. With that in mind, professional development should not be an investment for only younger talent. Despite many multi-generational workforces, ageism is still present within companies. Today’s D&I initiatives should focus on removing that practice and the barriers it creates for senior employees. Having purposeful work is just as important to the older workforce as any other segment. Unretired employees often want to learn new skillsets to broaden their experiences and provide meaningful outcomes to the enterprise.

Flex the workplace model. As retired workers return to the workforce, they’re looking for remote and work/life balance opportunities — which complements the Future of Work paradigm. Understanding the purpose of why an employee is unretiring can help shape how best to utilize their skills. It also opens a dialog about the potential tenure of a senior employee. Rather than a sudden departure that often occurs with traditional retirement, companies can plan eventual exits and ensure knowledge capture and a succession strategy.

The Future of Work is not generation-specific. It encompasses all generations within the workforce from Gen Z to Baby Boomers. In fact, it is Baby Boomers who can serve as a valuable source for continent labor. Those coming out of retirement to find a second calling or support a former company or industry in a new and beneficial way have much to offer. And leveraged strategically, the knowledge of this generation of workers can spark innovation and provide a unique dynamic within multi-generational teams. At the end of the day, age is just a number.

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Mental Health Central to Workforce Strategy

The topic of mental health in the workplace is one that companies have struggled to address in the past. A stigma around mental health issues has plagued employees from seeking appropriate help. According to a report from Mental Health America (MHA), 2022 Mind the Workplace: Employer Responsibility to Employee Mental Health, “47% of employees know what mental health services they can use when struggling with a mental health concern, but only 38% would be comfortable using their company’s services for a mental health concern.” Fearful of being judged or even losing their jobs, employees chose to suffer in silence. And then a global pandemic occurred.

Suddenly, this unprecedented global event brought mental health out of the shadows and into the mainstream light. The abrupt transition moving to remote work, coupled with the natural stress, fear, and anxiety of living through a pandemic made mental health applicable to nearly everyone. Employees expressed their fears and stress in Zoom sessions with colleagues. And companies realized the importance of supporting employees through these difficult times with employee assistance programs (EAPs) and wellness promotion in corporate communications.

Mental Health Issues are Ever-Present

Now, 2.5 years into the pandemic, COVID-19 is considered a part of our daily existence — unlikely to be fully eradicated. However, this doesn’t mean employees simply accept that reality and life goes on. Quite the contrary. COVID-19 represents only one of the myriad reasons why dialogue around employee mental health must progress and evolve.

We live in a volatile world with inflation, wars, and climate issues that contribute to stress, anxiety, and depression. According to its report, 2022 State of Workforce Mental Health, Lyra states that “84 percent of workers surveyed experienced at least one mental health challenge over the past year, from issues such as stress and burnout to diagnosable conditions including depression, anxiety, bipolar disorder, and PTSD.” The pandemic served as the catalyst for a wider discussion on mental health in the workplace — one that must continue long term.

Approaching Mental Health Strategically

As companies recalibrate from operating remotely, the workforce must also adjust. There are many remote workers who prefer to remain remote. Companies cannot ignore those preferences. Mental health awareness and support should complement the priority of rebalancing the workforce model.

What can that look like for companies to ensure remote and in-person employee mental health needs are acknowledged and supported? Below are several enterprise approaches identified by Lyra and MHA that bring mental health to the forefront with intent and compassion.

  • Invest in employee mental health strategically and with purpose. While an EAP program is a suitable start to offering an outlet for employees, it falls well short of strategic investment. Instead, commitment from the highest levels of the organization that mental health is a priority should occur. Training is essential for leadership, human resources, and managers to recognize and address mental health issues with their employees. Not only does training help remove existing stigma, but it also encourages open communication and enables early detection of stress, burnout, and other mental health conditions. Equally important, a training and communication initiative fosters a sense of inclusiveness.
  • Provide a workplace structure conducive to positive mental health. Working remotely provided flexibility and work/life balance for many employees. As more companies require workers to return to the office, it’s critical to recognize those who thrive in a remote or hybrid structure. Higher productivity and positive mental health are two outcomes that accompany a flexible workforce model.
  • Encourage an open dialog and feedback for mental health needs and concerns. Company surveys and programs that gauge how the enterprise is following through on its mental health pledge opens honest lines of communication and feedback that only strengthen those efforts. And don’t wait until a high attrition rate occurs before initiating a survey. Commit to a quarterly or bi-annual questionnaire to allow progress for any changes instituted.
  • Remove barriers to quality mental health care. An employer health plan may include mental health coverage but lack the proper resources and treatment options that a separate mental health plan can provide. An employee survey can help determine if the current health plan is adequate for mental health needs.

Are companies seeing success with these efforts? In an op-ed for the Milken Institute titled, “The Future of Work Depends on Investing in Mental Health,” Christopher Swift, Chairman and CEO for The Hartford, writes, “Within our organization, we have created digital platforms and in-person programs to allow for open dialogues, trained leaders on mental health essentials, and provided guidance on inclusive language to help dispel stigma and lead with empathy,” he says.

“Over the years, we have continually expanded mental health education and evidence-based resources for our employees and their families. In turn, employees have leveraged these benefits, joined in courageous conversations, shared their mental health journey, and expressed appreciation via company communication platforms,” Swift adds.

The positive mental health of our workforce is critical to employee satisfaction, engagement, and productivity — all factors that lead to a healthy bottom line. Make mental health a strategic imperative for your workforce strategy.

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Expand Your Enterprise and Workforce in the Metaverse

Last week, part one of this two-part series on the metaverse, explored the technologies behind the metaverse curtain and what the possibilities are for the remote and in-office workforce. This week, we’ll examine how companies can leverage the metaverse for greater workforce and operational efficiencies.

The Enterprise in the Metaverse

When it comes to the future of the internet, it is the metaverse that often comes to mind. Integrated technologies working together to form a virtual interactive world. While its current existence offers cutting-edge interactivity, much of the grand potential of the metaverse is yet to come. What lies on the horizon will most certainly influence the future of work and what it means to collaborate and exist as an enterprise.

Currently, enterprises that want to enhance their production processes, for example, can now replicate their facility using digital twin technology. By simulating production lines or other assets, organizations can determine potential failures before they occur and develop mitigation strategies.

Within the metaverse, this same concept can exist but with remote workers’ avatars in a virtual space, viewing a 3D replica of a facility, machine, product, or other asset. The virtual meeting space could be an auditorium or other large venue with global participants representing a cross-section of the product development team and supplier base. It would no longer require expensive travel and accommodate any number of people.

The differentiator between digital twins today and those in the metaverse is the use of technologies like artificial intelligence, machine learning, and Internet of Things to provide photorealistic representations of the asset. Better still is the power of data analytics for real-time feedback to simulate real-world conditions in a virtual setting.

Developing a new product? Simulate a stress test to ensure the expected tolerance levels hold true under real-world conditions using artificial intelligence and machine learning. Working with an architectural firm for a new facility? Not only can you review the blueprints but tour the completed building in its entirety within the metaverse. These are just a couple of examples of how enterprises can leverage the metaverse for operational efficiencies.

Digital Image and the Future of Work

Want to take digital twin technology and apply it to the future of work in the metaverse? Those possibilities are growing. Our appearance can be replicated in virtual worlds — a critical part of our digital identity — in the metaverse. Union Avatars, for example, has a creator tool to construct full-body avatars based on scanned selfies and photographs to transplant into the virtual universe. Thus, it allows an avatar, with our physical representation, to converse with colleagues and customers as we appear in real life.

Taking it a step further, imagine your avatar on its own attending virtual business meetings and taking notes, or completing lower-value tasks, while you focus on strategic projects and execution. Two versions of yourself — physical and digital — accomplishing two different types of work simultaneously. Those possibilities are evolving and could be game-changing for Future of Work strategies.

Born and Operated in the Virtual

For the remote workforce, it can often feel as if the company has no physical existence. The primary use of Slack, Zoom, and Microsoft Teams for communication and collaboration only enhances that sense of the virtual. However, the future is coming where companies are born and operated exclusively in the metaverse, relying on virtual currency for transactions.

Looking for an attractive plot to build your enterprise? A CNET article detailed how millions are being paid for virtual real estate. It is entirely conceivable to build and operate a corporation within a vast virtual economy — populated with avatars working and living their best digital life. Blockchain will be critical to the stability of metaverse financial systems. As the foundational technology for cryptocurrencies and non-fungible tokens (NFTs) to exist, blockchain security is a significant focus.

The possibilities seem endless in the metaverse. There is little doubt that the Future of Work will find its place in this virtual realm. How transformative will the metaverse be for the remote and contingency workforce? Considering the vast amount of data analytics and Industry 4.0 technology involved, entire industries devoted exclusively to the metaverse will emerge. Now is the time to explore what the metaverse could mean for enterprises and their remote workforces. The potential is there for the metaverse to become the next disruptive business force.

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The Impact of the Metaverse on the Business Arena

The metaverse. It is widely accepted that science fiction novelist Neal Stephenson first coined the term “metaverse” in his 1992 novel Snow Crash, where characters access a 3D world through VR goggles. More recently, Steven Spielberg’s adaptation of Ready Player One provided a visual interpretation of the metaverse (The Oasis) with multiple worlds populated by avatars in every describable form. While we’re still years away from realizing the depictions of the metaverse in novels and film, today’s metaverse provides an exciting glimpse of what’s on the horizon for virtual engagement and the future of work.

Metaverse Defined

What is the metaverse? Simply stated, it is a virtual world(s) where people interact as 3D avatars, gaming, socializing, and working. That immersive experience is made possible by several technologies. Virtual reality and head-mounted displays, coupled with spatial technology and augmented reality bring the immersion to life. Other technologies like blockchain, artificial intelligence, and machine learning act as the brains for the metaverse, enriching the virtual environment through automated transactions, decision-making, and world-building.

The metaverse ecosystem is a vast network of hundreds of companies from a variety of industries all working toward developing specific metaverse attributes — infrastructure, economy, user experience, etc. And there are many metaverse platforms (e.g., Decentraland, The Sandbox, etc.) to put your virtual stake in the ground as no one owns the metaverse (yet).

Transition from Gaming to Business

Much of the metaverse is rooted in gaming. Unsurprisingly, children (and adults) are well-versed with virtual worlds through Minecraft (140 million monthly players), Fortnite (250 million-plus active users), and Roblox (30 million daily players). This bodes well for future generations adapting to the virtual world of work.  As consumers take several steps into the virtual realm with products like Meta’s Oculus and HTC’s VIVE, corporations are now moving closer to their own metaverse offerings. McDonald’s, Nike, Amazon, and companies in sectors like healthcare, finance, and hospitality are taking the plunge into the virtual expanse.

The culmination of virtual worlds leads to a vast decentralized multiverse of metaverses. The Meta metaverse, the Microsoft metaverse, the Nike metaverse, and so on. Does the future hold a centralized, singular metaverse where users can interact with other virtual platforms outside their metaverse sandbox? Whether it’s attending a virtual conference, reviewing specifications with a global supplier, or brainstorming at a virtual corporate retreat, the ability to engage other metaverses or link them together could forever alter business and the future of work as we know it.

A Virtual Work Future

The pandemic itself propelled the world’s workforce into remote work, ushering in a new normal where video conferencing replaced in-person interaction and collaboration. Today, as many companies recalibrate, there’s an urge to bring remote workers back into the office. Instead, now is the time to embrace hybrid and remote work as the future that it is. The timing for the metaverse could not have been better. It has the potential to offer not only enhanced remote workforce experiences but entirely new business models. Here are just a few examples of how the metaverse could impact and revolutionize the future of work.

  • Talent recruitment. Recruiting talent can become a more immersive experience for candidates through virtual and augmented reality. Application submittals could launch a link to a virtual environment that allows virtual interaction with human resources or company recruiters. Using augmented reality, candidates might be asked to complete certain virtual tasks related to the job. Results of those exercises can provide greater insight into viable candidates and narrow the talent pool to gold and silver applicants.
  • Employee onboarding. Company onboarding can be hit or miss. Some enterprises have a specific onboarding process, complete with presentations and meet and greets. What some companies fail to realize is that onboarding is the first official interaction with a new hire. If that process is disorganized or nonexistent, retention rates could suffer. The metaverse can automate the onboarding experience, bringing to life virtually how the company operates, its mission, and how a new hire’s work is purposeful in achieving enterprise objectives.
  • New Zealand-based UneeQ, for example, specializes in the development of digital humans who serve as AI-powered customer experience ambassadors. With this technology, a company can create a virtual onboarding experience using digital humans to automate the process of introducing new hires to all that the company has to offer.
  • Team collaboration. Much of the metaverse is about social interaction. Critics of remote work and the ability to collaborate effectively are missing the bigger picture. Virtual collaborative technologies are now available from dozens of providers (e.g., Gather and NOWHERE) that are innovating the space. Whether it’s creating a virtual workroom or lounge, gathering our digital selves (avatars) together for brainstorming and deep learning can bring a sense of immersive that can’t be replicated in a 2D Zoom session. One could argue that utilizing cutting-edge virtual technology to collaborate may result in even more out-of-the-box thinking.
  • Training and development. Using virtual and augmented reality, coupled with gamification, training and development can be redefined. Enter a 3D space to learn how to operate a new machine or medical device using haptic gloves to replicate the feeling of a physical object. Or attend a virtual training session followed by activities that test what was learned. All of these examples can be enhanced with gamification elements to build excitement and participation around T&D. Earning virtual badges for completed training modules or high scores on virtual tasks, for example, are ways that companies are flipping the script on learning and development and increasing employee engagement with the process.

The metaverse holds incredible promise for enterprises and the future of work. Part Two on the metaverse will explore how organizations can use virtual reality for product development and operational efficiencies, as well as the emergence of virtual enterprises and economies.

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Can We Measure Empathy at Work?

As part of the Future of Work Exchange (FOWX), we host a regular podcast featuring coverage of industry news, software developments, Future of Work happenings, and, most importantly, conversations with industry thought leaders. Recently, our own Christopher J. Dwyer, architect of the Exchange and host of the Future of Work Exchange Podcast, had the tables turned on him: Afterhours, sponsored by Utmost and hosted by Neha Goel, the company’s vice president of marketing, featured Christopher as part of its Contingent Workforce Radio series.

Neha and Christopher discussed a variety of issues related to the state of talent and the future of work (click to listen to the full interview). This is an excerpt from that conversation. (Note that this excerpt has been edited for readability.)

Neha Goel: As we explore the human element in the workplace, let’s talk about another tenant of the Future of Work — empathetic leadership. Is this something you are seeing put into action? And can empathetic leadership be measured in a meaningful way?

Christopher J. Dwyer: Yes and no. I feel like there is an appointed effort. There is a very focused effort for leaders to be more deliberate in leading with empathy and leveraging conscious leadership tactics. But, I do not think many organizations have a handle on how to measure it.

That is where we need to go as business leaders. It is tough to measure something like that, however, because it is so qualitative. How do we know that we are doing the right things as leaders? Or how do we know that we are leading in the right way? How do we know that our employees are having a positive experience and that they feel safe and comfortable? Do they feel that they are part of an inclusive culture?

It circles back to the question of how to measure those things. NPS scores are not going to help. Informal surveys may give you some type of picture. This is the next big leadership challenge going into the second half of the year and into 2023. It can be difficult measuring not just empathy, but how cognizant you are of your leadership and its impact.

It is encouraging to see that more leaders are very conscious of their styles of leadership. But you still see many leaders who are not flexible and still rigid — the Elon Musk-type celebrity CEO who does not care about flexibility or employee feelings, and insists we need you in the office and you need to be part of the team. (Editor’s note: check out yesterday’s article on Malcolm Gladwell’s horrible take on remote work.)

We are so far past that. I have been saying for over two years that there is no way you can put a positive spin on a worldwide pandemic that has killed so many people. It has disrupted life so much. But if you were to take the positives of the fallout from the pandemic, there are many accelerants from the Future of Work angle that came to light.

You have remote work, the reliance on automation and tech, and the desire to be more data-led to gain a better understanding of where we are going as a business and how we are going to survive. But there is the other piece where leaders need to realize that they need to change their leadership style or risk losing workers.

“I am going to lose the talent that exists in my business, and I do not want that to happen.” I do see leaders doing it, but measuring it continues to be a challenge. I do not think many organizations have that figured out yet.

NG: That is fair. It would be fascinating to have you back in a few months and see potential progress.

CJD: Absolutely. I look at some of the most read articles on the Future of Work Exchange since we launched, and one of the top three articles is a piece on why empathy is the only way forward.

A reason it is one of the most popular pieces is that business leaders are interested in trying to hone their style to be more flexible, more empathetic, and more conscious in thinking about their workforce and their staff.

I remember the early days of the pandemic quite clearly. Memories of COVID-19 close contacts and quarantining, 14-day isolations, and kids unable to go to school. Neha, you have young kids, as I do. How disruptive was it to have kids at home for weeks and months at a time? And remote learning was not exactly a conducive way to learn for them (even though it’s a great way to work, haha).

Truly conscious leaders understood how difficult that was for their staff. And they were the ones who were offering flexible options or realizing that, “Hey, this person needs to sit with his or her daughter as she does second grade remotely. Yes, he or she is going to be offline for a couple of hours, but will be back in the afternoon.”

It is leaders who truly step into their workforce’s shoes and acknowledge what everyone is going through and recognizes the need to support them through this. Those are the leaders who are realizing their workforce is happier. They are more engaged. They know that we are here to support them.

I would love to come back in four or five months and say we have a couple of real-life cases we can share of how a business was able to measure its effectiveness. Did our profits go up? Did we have less turnover? I think those could be some of the early metrics to use.

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Procurement’s View of Direct Sourcing

The role of procurement is ever-evolving. Chief Procurement Officers are executing strategies in a world wrought with immense volatility and unpredictability. While the scale of disruption is unlike anything witnessed in a century, procurement serves as the rudder for many enterprises, helping navigate this uncharted territory.

It is a position that CPOs are accustomed to — think back to The Great Recession from the not-too-distant past. Times of change and uncertainty are when procurement takes center stage. Amid current supply shortages and extended lead times, procurement’s sphere of influence has expanded to talent acquisition and the Future of Work.

What kind of scene did procurement walk into? It’s well-documented how the pandemic forever-altered workplace dynamics when tens of millions of workers shifted from on-premise to remote working. And as the pandemic abated, The Great Resignation took hold with millions leaving their jobs or the workforce entirely. It’s also important to mention that the workforce itself is transitioning from what was mostly full-time employees to nearly 50% contingent workers. The Future of Work Exchange (FOWX) cited in its recent article, Where Does the Extended Workforce Go From Here?, that “FOWX research pegs contingent labor at 47% of the average company’s total workforce, a statistic that is only expected to grow in the months and years ahead.”

Enterprises are now waging a war for talent amidst a highly competitive recruiting environment where traditional recruitment methods alone are no longer viable. It requires a several-pronged approach and internal ownership using direct sourcing to plan, execute, and manage a talent pipeline for the future success of the organization. It’s nearly table stakes to operate with agility and resiliency. The competitive differentiator is attracting talent that brings new outlooks and outcomes to your global market and envisions markets and lines of business yet to be explored. Procurement should be right at home in this environment, adjusting to the intricacies of talent acquisition and the concept of direct sourcing for recruitment.

According to Ardent Partners’ The Direct Sourcing Toolkit, “talent pool creation and development” was the leading priority for talent and workforce management in 2020. And, in 2021, Ardent and FOWX research pointed to talent and skills access as a core priority heading into 2022. The question remains, then: How can procurement approach talent acquisition and a direct sourcing strategy?

First and foremost, it requires collaboration with HR to understand the talent needs of the enterprise. Where are there gaps in specific departments? Are there major initiatives with vacancies in key roles? Does the organization need additional support for promotional or seasonal purposes?

Procurement complements HR in this effort because of its cross-functional relationships and deep understanding of operations and ongoing product development. Leverage those relationships to glean insight into talent issues and where the organization could use support. It may be necessary to form a talent committee with representation from various business units. Communicate the new direction for talent recruiting and the shift to direct sourcing. Since the enterprise is curating and managing its own talent pipeline, leaders should be encouraged to recommend prospective candidates — both passive and active — from their own networks.

As the talent pool(s) builds with new and on-demand candidates, such as alumni, silver medalists, and former freelancers and contractors, they can be segmented based on their skillsets and competencies for various types of roles. Procurement can collaborate with IT to ensure recruitment and talent management applications and platforms [e.g., applicant tracking systems (ATS) and vendor management systems (VMS)] integrate well with the larger enterprise network.

Many enterprises utilize external partners to meet their contingent workforce management objectives. Monitoring various talent channels is resource-intensive and requires a dedicated team. Procurement can lead the search and selection of a Managed Service Provider (MSP), for example, which has access to supplier networks for talent needs across the enterprise and supply chain. Expertise with supplier selection and relationship management pays dividends when procurement leads this effort — cost awareness, contract management, and relationship building with the MSP. It also ensures procurement’s continued involvement with the direct sourcing program and the opportunity to influence its future direction.

Technology is critical to a direct sourcing program. An ATS and VMS are core to attracting and managing a contingent workforce. However, Industry 4.0 solutions (e.g., artificial intelligence (AI) and predictive analytics) are now being utilized with direct sourcing initiatives to fine-tune potential candidate placement and predict talent needs. These technologies are integrated into many manufacturing operations, so it’s no surprise that talent management is now benefiting from a human perspective as well. Here again, procurement is well-versed in the use and potential of AI and predictive analytics. Where are there opportunities to further leverage AI to achieve talent management objectives? How far can predictive analytics provide mitigation against critical talent shortages or succession dilemmas? Imagine using a digital twin to simulate the workforce needs in the next decade?

Procurement has a vital role in today’s talent management initiatives. Leading direct sourcing programs alongside HR is not only good for business, but a necessity in today’s frenetic labor market.

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