Contingent Workforce Archives - The Future of Work Exchange

Millennials and Gen Z Transforming Frontline Work, Part 1

Contingent Workforce Events Talent Talent Acquisition Technology and Innovation by John Yuva on 03/13/2025

Did you miss Ardent Partners’ recent webinar, Shifting Expectations: How Younger Generations are Transforming Frontline Work, that shed light on how the frontline workforce is undergoing a dramatic transformation as Gen Z and Millennials become the dominant demographic, creating new challenges for procurement and talent acquisition leaders managing their flexible workforce.

Moderated by Ardent Partners’ Andrew Bartolini, the session featured industry experts, Christopher Dwyer, SVP of Research at Ardent Partners, and JB Nussbaum, VP of Enterprise Sales for Network, who explored the evolving demographics of frontline workforces and the external workforce strategies to optimize shift fulfillment.

In this three-part series, we provide some of the webcast highlights and a link to the full event.

Let’s begin with Part One and the key takeaways around how the workforce is undergoing a generational shift, with Millennials now being the largest working group and Generation Z expected to overtake them, bringing new expectations shaped by digital engagement and a preference for flexibility.

A Demographic Shift in the Workforce

The workforce is undergoing a significant demographic transformation, with the rise of younger generations reshaping the landscape of employment. While Baby Boomers are gradually retiring, Generation X still maintains a presence in the workforce. However, Millennials have now become the largest working generation, and in the coming years, Generation Z is expected to overtake them. This shift is not only changing the composition of the workforce but also altering workplace expectations and demands.

New Generations, New Expectations

Millennials and Generation Z bring unique perspectives and expectations to the workforce, influenced by their upbringing in a digital era. Their preferences for flexibility, purpose-driven work, and digital engagement are redefining traditional employment structures. The impact of this generational shift is particularly pronounced in the frontline workforce, which constitutes approximately 80% of the global workforce. Frontline workers span a wide range of industries, including public safety, food service, retail, healthcare, manufacturing, logistics, education, and customer service.

The Rise of the Gig Economy

Historically, discussions about workforce demographics were not as prevalent as they are today. However, businesses now recognize the need to adapt to the changing expectations of younger workers. The rise of the gig economy over the past decade further illustrates the evolving nature of work, with many employees seeking flexible schedules and greater control over their work-life balance. This trend has been accelerated by economic factors such as inflation, as well as the widespread adoption of remote work.

Flexibility and Autonomy: Key Drivers for Younger Workers

The gig economy, initially driven by the desire for flexibility and autonomy, has grown in response to economic pressures and shifting workplace norms. Many individuals, particularly younger workers, view gig work as an opportunity to supplement their income, gain experience, and achieve a better balance between work and personal life. Millennials and Gen Z, in particular, prioritize control over their schedules, which has made gig and shift-based work highly appealing to them.

Adapting Hiring and Workforce Management Strategies

From a business perspective, it is essential for hiring managers, HR professionals, and recruiters to acknowledge and adapt to these generational changes. Millennials and Gen Z now form the backbone of the frontline workforce, making it imperative to develop strategies that cater to their unique expectations. Effective talent acquisition and management strategies should incorporate flexible work arrangements, opportunities for career growth, and a strong emphasis on employee well-being.

The Power of Digital Engagement

One of the key factors in attracting and retaining younger frontline workers is digital engagement. Millennials and Gen Z are digital natives, and they prefer mobile-first communication and technology-driven work environments. Employers who leverage digital tools for recruitment, onboarding, scheduling, and internal communication will be better positioned to engage and retain these workers.

Well-Being as a Workplace Priority

Another crucial aspect is the prioritization of well-being. Younger workers place a high value on mental and physical wellness, seeking employers who support a healthy work-life balance. Businesses that integrate wellness programs, provide growth opportunities, and foster a sense of purpose within their workforce will be more successful in attracting and retaining talent.

The Future of Work: Adapting to a New Generation

Ultimately, the demographic shift in the workforce serves as a wake-up call for businesses to reevaluate their employment strategies. The expectations of Millennials and Gen Z are shaping the future of work, necessitating a shift toward more flexible, purpose-driven, and digitally connected workplaces. Organizations that recognize and adapt to these trends will not only improve their ability to attract top talent but also create a more engaged and productive workforce in the years to come.

The Future of the MSP Model Hinges on Future of Work Innovation

Contingent Workforce Procurement Solution Providers Technology and Innovation by Christopher J. Dwyer on 03/03/2025

Earlier this year, I wrote a feature on the next generation of Managed Service Providers that focused on how these solutions have evolved over the past several years to meet the dynamic needs of recruitment, contingent workforce, and talent acquisition programs across the globe.

Ordinarily, another feature would take, let’s say, a few months before revisiting the scope of MSPs, right? Well, no. There’s so much more to be said about how the MSP model is becoming a nexus of Future of Work innovation.

“Innovation” in and of itself is an interesting concept; given where we are in the greater Future of Work movement, the talent technology industry is awash in new technology, enhanced functionality, fresh approaches to automation, and a convergence of both old- and new-school hiring strategies.

Late last year, Ardent Partners and the Future of Work Exchange had the opportunity to evaluate and analyze the Managed Service Provider arena. The MSP Solution Advisor provider landscape highlighted the strengths and differentiators of 13 global managed services solutions.

One of the major learnings for me, even after nearly two decades in this industry, revolved around the idea of innovation within the MSP world. Many enterprises that leverage the MSP model for extended workforce management do so with “traditional” outcomes in mind: outsourced CW processes, payroll support, staffing supplier management, with a sprinkle of “next-gen” approaches like direct sourcing and skills-based hiring.

However, the Managed Service Provider structure is a foundational solution for talent engagement, workforce management, and Future of Work-era thinking for a major reason: many of these providers are actively blending their robust features with offerings that drive scalability, talent sustainability, and talent intelligence.

Companies mentioned in this article include Magnit, Airswift Resourcing, HireGenics, and KellyOCG.

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Optimize Your CWM Strategy with AI

Contingent Workforce Direct Sourcing Solution Providers Talent Talent Acquisition Technology and Innovation by John Yuva on 02/20/2025

Artificial intelligence is becoming a permanent fixture as part of today’s enterprise operations and talent management approaches, serving as an essential technology for contingent workforce management (CWM) strategies that streamline candidate pairings with operational needs while increasing transparency of available skillsets and workforce contributions. Whether shoring up talent gaps or scaling needs, AI provides external workforce insights invaluable to HR and recruitment professionals and business leaders. The evolution of artificial intelligence will mean the emergence of more CWM opportunities.

Enterprises and HR executives who are not at least exploring the possibilities of AI’s impact on CWM will find themselves at a competitive disadvantage when sourcing talent and executing extended workforce strategies. Beeline stated that the “effects of AI in extended workforce management are just beginning and can be seen shaping how jobs are described, how candidates are evaluated, and how contracts are written. AI will soon be employed for more strategic outcomes like workforce planning, workforce optimization, and total workforce management.”

AI Paves Several Paths for CWM

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Holistic Talent Orchestration: The Future of VMS Technology

Contingent Workforce Solution Providers Technology and Innovation by Christopher J. Dwyer on 02/18/2025

When I first began my career in the talent technology industry, Vendor Management Systems (VMS) were considered “eProcurement for staffing” and not the true enterprise behemoths they are today. The truth is that this wasn’t a natural evolution for the world of VMS and extended workforce automation; these systems had to prove their worth through a mix of grit, innovation, and market-shifting functionality.

A little over a decade ago, when enterprise software giant SAP acquired Fieldglass (a VMS pioneer), I was quoted as saying, “By 2020, half of the global workforce will be considered “contingent” or “external.” At that point, upwards of a third (33%-to-34% and growing) of the workforce was considered external. From 2015 to the early weeks of 2020, we were getting closer and closer to that 50% threshold…and then something happened that sparked another spark in contingent workforce growth.

The COVID-19 pandemic was, of course, a watershed moment in both human and business history; it was a global health crisis that sparked an economic crisis that sparked Future of Work accelerants that we all leverage today five years later (like remote and hybrid work, for instance). During the hardest, earliest months of the pandemic, businesses needed to scale up or scale down their workforces based on fluctuating conditions; when cases were down and demand for products/services returned, hiring managers and talent leaders shored up the workforce with contingent labor. When demand waned (especially during the very difficult 2020-2021 winter), it was easier to scale down with a temporary workforce.

It was well before this, though, that the VMS platform more than proved its worth for a simple reason: the external workforce kept growing. No other solutions (technology, that is) were as well-fit and aligned with managing this growth like Vendor Management Systems.

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Reimagining Contingent Workforce Management: A Strategic Imperative for 2025

Contingent Workforce Direct Sourcing HR Solution Providers Talent Acquisition by Christopher J. Dwyer on 02/03/2025

If I ever want to show my age, all I need to say is this:

I’ve been in the contingent workforce and HR tech space for nearly 20 years.

Now, like most of the folks in our amazing industry, I got here by accident. While I love the CWM space and the many, many friends I’ve made along the way, I didn’t set out to be an in analyst in this arena when I was college. (No, I aspired to be a journalist, a conversation for another day…)

So, I say this seeing so many market-shifting events, including the “perfect storm” of the contingent workforce’s growth spike in 2008-2009, a “reawakening” during the pandemic, and today’s AI-driven, skills-based hiring arena:

The CW programs of today aren’t built for tomorrow….

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thods within extended workforce management.

The 2025 MSP Playbook, Part II

Contingent Workforce Events by John Yuva on 01/30/2025

This week is part two of my discussion recap with Brad Martin, Chief Revenue Officer for Atrium, during our recent exclusive webcast where we focused not only on the 2025 trends that will shape the Future of Work, but also the impact of the Managed Service Provider (MSP) model on those areas in the months ahead.

As businesses face the challenges of a fast-evolving workforce landscape, the intersection of innovation in technology and hiring initiatives has become a critical area of focus. My conversation with Brad shed light on key trends shaping the future of workforce management, from cutting-edge tech stacks to achieving meaningful talent goals.

Innovating Talent Technology: The Rise of Specialized Tech Stacks

Today’s talent technology stacks have an increasing role in driving efficiency and agility for businesses. The tools available today, such as direct sourcing platforms, artificial intelligence, and compliance technologies, have surpassed those of just five or six years ago. These advancements allow companies to manage their workforce more comprehensively, extending beyond traditional staffing to include freelancers, contractors, and other non-employee talent.

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The New Reality of Total Talent Management

Contingent Workforce Direct Sourcing Solution Providers Talent Acquisition Technology and Innovation by Christopher J. Dwyer on 01/27/2025

Before you begin to scream, give me a few minutes here. I promise it’s worth it.

There are several phrases that send our industry into huffy-puffy overdrive and cause undue stress. However, no concept, idea, phrase, or whatever draws more scrutiny and frustration than “total talent management.”

Way back in 2012 (which seems like forever ago), I co-authored the industry’s very first paper on total talent management. Back then, with wide eyes and a dreamy attitude, I concluded that “total talent management should not just be a pipe dream for enterprises, but rather an accepted future state that will eventually become the foundation of all recruitment and talent acquisition strategies.”

Yeah, that “eventually” in there…let’s ignore it for a second.

Back then, the extended workforce comprised, on average, 25% of the average company’s total talent pool. Back then, solutions like RPO, MSP, VMS, etc. weren’t evolving or innovating as quickly as they are today. And, back then, we weren’t awash in new and exciting talent acquisition strategies (like skills-based hiring) that are representative of the changing times of a post-pandemic labor market.

So, flash-forward to 2025.

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The 2025 MSP Playbook, Part I

Contingent Workforce Direct Sourcing Events by Christopher J. Dwyer on 01/21/2025

Just last week, I had the opportunity to join Atrium and their Chief Revenue Officer, Brad Martin, for an exclusive webcast focused not only on the 2025 trends that will shape the Future of Work, but also the impact of the Managed Service Provider (MSP) model on those areas in the months ahead. Today’s article is the first of a two-part series that will recap Brad and I’s discussion.

The “Strategic” Contingent Workforce Program: A Major Priority for 2025

Nearly 65% of organizations (as discovered by Ardent Partners and Future of Work Exchange research) state that they plan to develop a more strategic foundation around their contingent workforce programs in 2025. As the extended workforce marches to its 50% threshold (49.7% of the average organization’s total workforce is now considered non-employee), it is critical that businesses take a more deliberate pathway towards managing this type of talent in lieu of leveraging traditional, archaic, and “tactical” approaches that undermine the greater impact of the contingent workforce.

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Mental Health Steps Out of the Workforce Shadows

Contingent Workforce HR by John Yuva on 01/16/2025

Today’s remote and in-person workforce is doing more with fewer people, which is putting renewed focus on a critical Future of Work topic — employee mental health. When left untreated, mental health concerns can lead to substantial costs for enterprises — $60,000 annually for one organization and $105 billion nationwide — according to the Center for Prevention and Health Services. The COVID-19 pandemic helped bring the issue of employee mental health further into the forefront. However, HR and workplace leaders must do more to recognize and address what has historically been a stigma-plagued health issue. Ignoring the effects of workplace stress, anxiety, and burnout often leads to productivity and performance decline as well as employee satisfaction and retention challenges.

A Prevalent Health Issue

In its “2025 Workforce Mental Health Trends Forecast,” report, Lyra cites stress as the “common denominator” most affecting workplace mental health where “more than 1 in 3 HR and benefits leaders identified work-related stress and burnout as the most common challenge impacting employees, citing ‘excessive workload’ as the main work-related factor negatively affecting mental health.”

Among the report statistics:

50% of respondents reported that stress and anxiety impact their workers throughout the past year
39% of HR and benefit leaders cite financial stress as a top-three factor affecting workforce mental health (more than doubling last year’s 18%)
24% ranked managerial stress as the third-leader workplace stressor by HR and benefit leaders
22% cited incivility and unruly behavior at work as negatively impacting their mental health.

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The NPS Fallacy and Why We Need To Continue to Embrace the MSP and VMS Models

Contingent Workforce Talent Acquisition Technology and Innovation by Christopher J. Dwyer on 01/13/2025

The past five years have brought unprecedented change to the greater world of work. The COVID-19 pandemic forced businesses across the globe to reevaluated business operations in the face of critical change. Too, the ramifications of the virus itself on human lives (both physical and emotional) sparked people to reimagine how they approached the very concept of “life.”

The unimagine toll of the pandemic was, of course, heartbreaking. Talk to anyone who lost someone from COVID, or, speak to someone who is still suffering from the devastating effects of long COVID. Don’t ever forget how unemployment sparked to 15% in those early, scary months.

I’ve often said (many times on the Future of Work Exchange Podcast) that it’s incredibly difficult to find a “silver lining” amongst the destruction. However, what occurred in the direct wake of the pandemic and throughout the years that followed was a new sense of “thinking” that cascaded from reevaluating business processes into questioning just exactly how we got work done.

So, we head into 2025 with a sharp sense of wonder unlike any other year before. We are free to question anything and everything, free to desire innovation, and, of course, free to pursue the change that we need to experience in order to evolve.

The world of work and talent has long been buoyed by several key solutions, particularly MSP and VMS, that have anchored many of the world’s foremost extended workforce and talent acquisition programs. Now, you may be wondering: “Chris, what the hell is going on? What do MSP and VMS have to do with “change” and “desire” and “evolution” and the pandemic and such?”

Good question. It has become commonplace to push back on ordinary conventions both in our personal and professional lives. We are free to question and ask “Why?” in the face of continued change in business operations, daily life, etc.

I’ve spent nearly 20 years in the extended workforce, HR tech, and talent technology industries. I’ve seen monumental change, I’ve seen transformation first-hand, and I’ve experienced the so-called “evolution” that we all like to believe occurs as technology and innovation continue to expand.

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