Direct Sourcing Archives - The Future of Work Exchange

How Direct Sourcing Drives Talent Sustainability

Direct Sourcing Talent Acquisition by Christopher J. Dwyer on 04/16/2024

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.

Talent Experts on FOWX — The Current and Future State of Direct Sourcing and More

Business Leadership Direct Sourcing Diversity and Inclusion HR Podcast Solution Providers Talent Technology and Innovation by John Yuva on 03/14/2024

Our “Talent Expert Series” on FOWX features podcast excerpts of today’s Future of Work thought leaders who appear on The Future of Work Exchange Podcast. The series continues with an excerpt from Season 7, Episode 15 featuring Christy Forest, CEO and Executive Director at LiveHire, who discussed the current state of direct sourcing, the future of this high-impact strategy, the reality of total talent management, and much more.

Click to listen to the full interview. Note that this excerpt has been edited for readability.

Christopher Dwyer: For this week’s edition of The Future of Work Exchange Podcast, I’m thrilled to welcome Christy Forest, CEO and executive director at LiveHire, for a discussion about the current and future state of direct sourcing, the role of skills-based hiring, and the ever-decisive concept of total talent management.

Christy, you’ve been in our space for a long time and have first-hand knowledge and expertise in our industry. Things are evolving rapidly, particularly workforce technologies which are very transformative these days. What are your thoughts on the workforce solutions market in general?

Christy Forest: The workforce solutions market is constantly evolving. It is this intermix of technology and humanity and all these different players in the ecosystem. Today, we’re seeing some structural shifts in skills coming through. And that’s about as old as time in how often that occurs. However, what’s different is that everything truly happens faster. It’s all about agility for corporates. We experienced this with COVID-19 in such a short period where some companies boomed and others busted. Presently, even if hiring is down, it’s the opportunity to adopt approaches that ready you for the rebound.

Organizations just keep pedaling hard and fast. And the workforce solutions industry is evolving rapidly to keep pace with that. We’re at a moment where executives are asking how they can move faster and smarter and evolve their organizations in the face of such change. Looking at the workforce solutions market through the lens of technology, it’s about what gives you visibility and data for insight to make good decisions as well as what gives you candidate and staff engagement because the (candidate and employee) power has shifted forever. It’s not going back. I think about those three things — the insights from data for better decisions, the engagement, and the speed of outcomes — that’s agility. Executives who are thinking about how they’re transforming in the face of change and partnering across the ecosystem are experiencing the evolution firsthand.

CD: Let’s shift now to direct sourcing. Data, intelligence, agility, and scalability are all hallmarks of direct sourcing. LiveHire has been a direct sourcing pioneer for over a decade. Where are we at with direct sourcing from a place of technology, maturity, and the like?

CF: It’s certainly been interesting to see the maturity and the evolution. One of the great things is the convergence on the definition of direct sourcing, which is a milestone in many ways. Along with this is also the commitment to scale when undertaking direct sourcing — it is not solely about cost savings. Scaling is so important and powerful.

At LiveHire, we make data-driven decisions and consider how our technology faces off at scale and delivers outcomes. For one client, we built a talent community of nearly 100,000 candidates within a year. Achieving a powerful talent community gives you quality and scale. When thinking about direct sourcing at scale and how our technology faces off, we’re constantly interrogating our data and examining it at a precise level level — how to achieve stronger recruiter productivity and candidate experience. Doing so at scale is what leads to corporate results.

CD: Defining direct sourcing is not straightforward. Simply having a curation partner or technology to build talent communities is not enough for a successful direct sourcing program. You need more than that. How can businesses be truly successful at direct sourcing?

CF: You first need to focus on the fundamentals. Be clear about direct sourcing and that it’s more than redeployment in a small part of your talent program. It is leveraging your brand at scale. There are three legs of the stool widely discussed: technology, a curation partner, and an EOR. You must have those pieces of the puzzle. However, go the next step and be willing to engage the hiring managers and drive an expectation and commitment to the program to establish a priority window and help the organization feel confident as the talent pools build and scale. We have found that an MSP can be a very strong partner in this effort. TAPFIN leads and champions this for its clients and does it very well. Having that dialog and success conversation that’s led by the data and insights relative to the talent in the pools is vital. Those are the biggest factors we’ve seen.

CD: As we look at the future of direct sourcing, where does it go from here? And why does it go there?

CF: The future needed now is if you’re not doing direct sourcing using your brand and adopting it at scale, then start there. Create a world where stronger candidates fit with the organization as well as offer a better experience for the candidate and hiring manager — and do it with cost savings in mind. What evolves from that is more data and insight into the potential of your workforce. The question is how do we use this information to lift our competitiveness? This opens an opportunity for HR and procurement to come together in a powerful way to answer that question. Ultimately, you want to bring those answers to the executive committee and the board showing how direct sourcing increased the enterprise’s competitiveness by being smarter with the data available and knowing what needs development to win. Candidate pools, skills, and on-demand insights help lead that conversation. This ultimately takes us back full circle to where you’ve got agility.

Click HERE to access the full podcast.

Digital Staffing’s Impact on the Future of Work

Contingent Workforce Direct Sourcing Talent Technology and Innovation by Christopher J. Dwyer on 03/12/2024

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.

DOL Ruling Leaves Uncertainty for Contingent Workers

Business Leadership Contingent Workforce Direct Sourcing General Insights HR Talent Acquisition by John Yuva on 02/20/2024

(Author Note: This article intends to inform about a critical government ruling taking effect in a few weeks as well as encourage discussion on social media. See a post by Christopher Dwyer, managing director of the Future of Work Exchange, this week on LinkedIn to share your opinions and feedback.)

Enterprises of all sizes rely on contingent workers as a critical segment of their workforce and operational support. However, a final ruling on the 2021 IC Rule issued by the U.S. Department of Labor (DOL) has the potential to upend the gig economy when it goes into effect on March 11. The ruling brings into focus how organizations classify an employee versus a contractual worker under the Fair Labor Standards Act. The final ruling presents stricter guidelines on independent contractor classification. The ramifications on labor costs, workforce policy, and talent strategy could be significant.

A Ruling Focused on Guidance

The purpose of the DOL’s ruling is twofold: 1) institute guidelines for how to classify workers as independent contractors and 2) prevent employee misclassification — a serious problem that the DOL says “impacts workers’ rights to minimum wage and overtime pay, facilitates wage theft, allows some employers to undercut their law-abiding competition and hurts the economy at-large.”

According to Acting Secretary of Labor, Julie Su, “Misclassifying employees as independent contractors is a serious issue that deprives workers of basic rights and protections,” she explained. “This rule will help protect workers, especially those facing the greatest risk of exploitation, by making sure they are classified properly and that they receive the wages they’ve earned.”

Separately, the DOL’s final ruling rescinds the Trump era 2021 Independent Contractor Rule that the “department believes is not consistent with the law and longstanding judicial precedent.”

The DOL published the following to describe and explain its final ruling: This final rule rescinds the Independent Contractor Status Under the Fair Labor Standards Act rule (2021 IC Rule), that was published on January 7, 2021, and replaces it with an analysis for determining employee or independent contractor status that is more consistent with the FLSA as interpreted by longstanding judicial precedent.

The misclassification of employees as independent contractors may deny workers minimum wage, overtime pay, and other protections. This final rule will reduce the risk that employees are misclassified as independent contractors while providing a consistent approach for businesses that engage with individuals who are in business for themselves.

Since the issuance of the final ruling last month (January 9), its reception has trended toward the negative. One of the biggest concerns is the lack of clarity in the ruling itself.

Resounding Opposition Follows Final Ruling

While the ruling is designed to offer protections (e.g., overtime pay, benefits, etc.) for employees misclassified as contingent workers, it brings possible drawbacks to both workers and organizations. Reaction to the ruling was met with criticism and concern by several industry representatives.

Marc Freedman, U.S. Chamber of Commerce Vice President of Workplace Policy — Link:

“The Department of Labor’s new regulation redefining when someone is an employee or an independent contractor is clearly biased towards declaring most independent contractors as employees, a move that will decrease flexibility and opportunity and result in lost earning opportunities for millions of Americans,” he said.

“It threatens the flexibility of individuals to work when and how they want and could have significant negative impacts on our economy. Making matters worse, the rule is completely unnecessary, as the Department continues to report success in cracking down on bad actors that are misclassifying workers. The U.S. Chamber will carefully evaluate our options going forward, including litigation,” Freedman added.

Emily Dickens, Society for Human Resource Management (SHRM) Chief of Staff, Head of Public Affairs and Corporate Secretary — Link:

“The DOL’s action … ‘underscores the importance of clear and consistent regulations, fostering diverse business relationships essential for the demands of the modern economy. HR plays a vital role in ensuring proper worker classification,’ she said.

‘However, the ongoing shifts in regulatory guidance impose compliance burdens and legal uncertainties on HR professionals and business executives.’”

Timothy Taylor, Holland & Knight Labor, Employment and Benefits Attorney (in an article for Law360) — Link:

Taylor’s expressed concerns about the challenges the rule poses for both businesses and independent contractors: “There are no real surprises, but the rule is just going to remain very challenging and very problematic for businesses and for workers who want to retain their independent status across the board,” he said.

Chris Spear, American Trucking Associations’ President and CEO — Link:

“I can think of nothing more un-American than for the government to extinguish the freedom of individuals to choose work arrangements that suit their needs and fulfill their ambitions. More than 350,000 truckers choose to work as independent contractors because of the economic opportunity it creates and the flexibility it provides, enabling them to run their own business and choose their own hours and routes. That freedom of choice has been an enormous source of empowerment for women, minorities, and immigrants pursuing the American Dream,” Spear said.

It is clear based on opinions from some of the largest industry groups that we haven’t heard the last about the DOL’s final ruling.

Uncertainties Ahead for Enterprises and the FOW

The true impact of the final ruling on workers, enterprises, and the Future of Work at large, has yet to be seen. However, here are a few closing thoughts on how things could change moving forward.

Labor costs. Should organizations find themselves classifying more workers as employees (who were previously independent contractors), expect a steep rise in labor costs for those employers. Purportedly, to prevent misclassifications and system abuse, there are stricter guidelines around classifying workers as independent contractors.

Workforce planning. With nearly 50% of an enterprise’s total workforce comprised of contingent labor, the final ruling could have significant implications on talent allocation. With fewer contingent workers, how does that affect talent acquisition and total talent management strategies? Having the right talent at the right time could take on an entirely new meaning.

Direct sourcing strategy. A global talent pool to attract and hire contingent workers is a major component of direct sourcing. Enterprises with a focus on skills-based hiring have boundaryless options when it comes to contingent labor. However, a reduction in contingent labor coupled with stricter remote work policies suddenly shrinks the potential labor pool drastically.

Worker flexibility. The benefit of work-life balance for an employee is often viewed as an acceptable tradeoff to higher compensation. The same holds true for contingent workers. The scheduling flexibility and client freedom are just a couple of benefits afforded to contingent workers. Under the final ruling, however, those advantages could disappear under an “employee” classification. For example, a noncompete clause as an employee could affect the livelihood of a contingent worker.

FOW paradigm. A Future of Work principle is about being future ready by sourcing talent to execute today as well as tomorrow. Contingent workers are the backbone of that principle. A government ruling that could impact a large percentage of nearly 50% of the workforce is worth taking a closer look. Enterprises hire contingent workers for many strategic positions. It would serve them well to find a happy medium around labor protections for this critical workforce segment.

The Future of Work Exchange will continue to cover this issue and others like it. We encourage you to provide your opinions and feedback. Follow our managing director and thought leader Christopher Dwyer on LinkedIn to be part of the discussion.

The Future of Work 2024

Business Leadership Direct Sourcing Diversity and Inclusion Events by Christopher J. Dwyer on 02/13/2024

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:

Talent Experts on FOWX — Evolution of Staffing and Growth of Extended Workforce

Direct Sourcing General Insights Podcast Solution Providers Talent Talent Acquisition Technology and Innovation Uncategorized by Christopher J. Dwyer on 01/25/2024

Our “Talent Expert Series” on FOWX features podcast excerpts of today’s Future of Work thought leaders who appear on The Future of Work Exchange Podcast. The series kicks off with an excerpt from Season 7, Episode 12 featuring Kara Kaplan, CEO of High5, as she discusses a range of topics from the evolution of staffing to the growth in the extended enterprise to the next stage of direct sourcing.

Click to listen to the full interview. Note that this excerpt has been edited for readability.

Christopher Dwyer: Let’s begin with your general insights into the staffing industry, especially given your unique vantage point with High5. When you think of the evolution of staffing and the rise and continued growth of the extended workforce, where are we today?

Kara Kaplan: For starters, the evolution of staffing and the emergence of the extended workforce has ushered in this profound transformation that we’re seeing. It’s a fundamental shift in how companies view and engage with talent. The traditional employment model has been supplemented and, in some cases, supplanted by an extended workforce. Thus, you see many organizations today, if not most, embracing the extended workforce as an integral component of their talent strategy.

And when we look at the term “employee” in general, it’s really evolving with these new models. You have everything from full-time, part-time, contract, gig, remote, hybrid, shared and other terms emerging. Those organizations that rigidly stick to the traditional relationship are going to find themselves fighting an uphill battle. Conversely, enterprises that appreciate and use a mix of workforce models will ultimately be the ones that succeed and have access to more talent and better talent.

It’s more of an adaptation to the new global economy that we now live in and all the complexities and opportunities that are part and parcel of that global shift. At the end of the day, organizations need to embrace this evolution not as an option but more as a strategic imperative. The exciting thing is that organizations are starting to do that.

CD: There is definitely a talent revolution occurring and obviously companies like High 5 fit into that. However, how do you see companies like High5 and other digital staffing platforms fitting into this change in talent acquisition?

KK: Today’s talent revolution signifies a profound shift in how organizations acquire and engage talent. We’re seeing it become much more commoditized. Talent is more dynamic and diverse, as well as more digitally connected than ever before. With the rise of talent marketplaces and digital staffing solutions, they’ve been instrumental in reshaping talent acquisition strategies and truly enabling organizations to adapt and thrive in this global landscape.

At their core, talent marketplaces democratized new access to a global pool of talent. These platforms are empowering organizations to source talent with levels of speed and accuracy that were not possible just a short time ago. For example, in the recent past, when working with many staffing agencies, there was a significant amount of manual effort required in matching a worker with a shift — even if they had a robust ATS, it would only benefit them to a degree. However, today’s digital staffing solutions driven by artificial intelligence and automation have redefined the recruitment process and streamlined nearly everything from candidate sourcing to screening to onboarding and payrolling. It saves a vast amount of time and resources.

CD: In our industry when you think about digital staffing, what comes to mind is BMS, MSP, direct sourcing, total talent, workforce management technology, and artificial intelligence. AI has moved beyond hype and is generally accepted as table stakes in our industry. What are your views on AI and its impact?

KK: To your point, we can’t have this conversation without talking about generative AI and what it means. However, the idea that AI is table stakes for competitive differentiation may be overly simplistic. While AI can undoubtedly provide a significant edge, it’s not a cure-all as companies are seeing. Enterprises still have to remain focused on their core offerings and the human aspect of talent as well as customer relationships to build a sustainable competitive advantage. It’s certainly an exciting time for AI but also a scary one as well. AI is not going away and we’ll continue to hear frequently about the technology, but going forward we need to think about AI in the right way and in the smart way.

CD: Let’s pivot to direct sourcing which was gaining momentum even before the pandemic and is now another table-stakes strategy for businesses if they want to deepen their talent pool and scale their workforce. There’s so much more to direct sourcing than simply contingent recruitment process outsourcing (RPO). With that in mind, where do you see direct sourcing heading?

KK: So much has changed in just the year since I started High5. There’s no doubt that direct sourcing has emerged as a pivotal force in recruiting and is definitely here to stay. There are sessions at major conferences dedicated to direct sourcing with brands like Northern Trust, Toyota, and Meta espousing its benefits. When that starts to happen, the more prominence direct sourcing will have. Clearly, in terms of the future of direct sourcing, the benefits are there. However, its adoption will require an education process. Anytime an education process is involved, it’s going to slow things down, particularly from a sales cycle perspective, but that process plays a vital role in ensuring that organizations realize the efficacy of direct sourcing. To be successful means ensuring that best practices are being followed. When direct sourcing initiatives fail, it’s because they didn’t follow best practices. Again, I’m extremely bullish on the future of direct sourcing, but I do think it will take some time for that education to catch up.

CD: Before we wrap up, 2023 is quickly coming to an end. What do you see on the horizon in the year ahead?

KK: I wish I had a crystal ball. For us, 2024 is about strengthening our position in the market. Being known as the “tech first” company, we’re making heavy investments in our tech enablement, our marketplace, and our other platforms. We have a great deal of excitement around some of our recent tech acquisitions and the compelling value proposition that creates for us going forward.

The Four Trends That Will Shape the Way(s) We Work in 2024

Business Leadership Contingent Workforce Direct Sourcing Talent Talent Acquisition by Christopher J. Dwyer on 01/03/2024

By now, we’ve all heard the many elucidations on the year ahead. From predictions and financial outlooks to economic forecasts and market guesses, there are so many thoughts on how the next twelve months will unfold from business, talent, technology, and leadership perspectives.

So, essentially, we’re in for another year in which the Future of Work movement will continue to reshape and transform the very ways we think about how (and why) we work.

2023 was a watershed year. Artificial intelligence fully sped its hype train in circles around both business and consumer personas, while dire-then-rosy-then-dire-again-then-optimistic economic outlooks pushed all of us onto a nonstop financial rollercoaster. The labor market remained (and remains) a tad volatile, even though it’s showing signs of slowing steadily based on jobs data heading into the final five or six weeks of 2023 (with an approximate 12%-to-14% drop in job adds in December from November).

And then there’s cooling inflation, as well, which will (hopefully) contribute to a strong economic year as a better balance between supply and demand converges with a full year of economic and labor market consistency.

The Future of Work Exchange believes there are dozens of factors that will shape the foundation of 2024. Here are, however, four of the most critical trends:

The effects of artificial intelligence won’t be measured by its utilization, but rather its impact. Attempting to measure the adoption of AI-based technology is difficult (even though we’ve tried that here at the Exchange many times before) because artificial intelligence utilization isn’t always rooted in enterprise software nor is it fully-integrated into core operational systems. It will be critical for businesses to measure the true effects of AI via its impact rather than how many users or how broadly the technology is being leveraged, i.e., is AI contributing to better talent matches?, is AI augmenting core roles?, is AI enabling deeper and more educated talent decision-making?, etc.
The “human factor” is beyond crucial…it’s essential. The term “empathy” became omnipresent in the wake of the COVID-19 pandemic as more and more workers craved non-financial support from their leaders, mentors, and employers. The pandemic was more than a transformational event; it forced professionals to view their jobs and careers from a human perspective (“mortality” being a major factor in the face of death, loss, and disruption) and, consequently, resulted in a shift from leaders towards compassion and empathy. While some attributes of the human factor were lost when businesses declared “normalcy” back in fashion, the mantra still rings true: the Future of Work thrives on humanity. As talented workers have more choices than ever before, and as new jobs/roles are decided upon by candidates from more than just compensation (like charity, workplace culture, diversity, inclusion, etc.), the “human factor” is an essential piece of the Future of Work movement.
The next 12 months will shape the very future of business leadership. Are leaders made, or, are leaders born? This was always a fundamental question that unfortunately paved the career roads for many a professional for the past few decades. “Leadership” in and of itself is a nebulous concept given that every enterprise executive shares varied responsibilities, each with a tinge towards “strategic” or “tactical” that dictates how, when, and why they lead. The stakes have changed, though, and so has the very definition of leadership; it’s not just “management,” it’s mentorship, coaching, and conscious thinking that drives productivity, humanity, culture, and inclusion. Leaders have the potential to impact not just the financial or economic successes of their respective organizations, but also how the organization is perceived to future talent and how candidates determine its overall workplace environment. In 2024, business leadership hits a tipping point.
The blended workforce represents the future of talent acquisition. It’s no longer a question of how the extended workforce will impact the greater business arena…it’s how much value it will drive. Ardent Partners and Future of Work Exchange research pegs the contingent workforce at 49.5% of the average company’s total workforce, a figure that, ten years ago, Ardent predicted would become a reality given the trajectory of non-employee talent. It’s not just the overall size of the extended workforce, though, that makes it such a high-value Future of Work attribute, but rather the ecosystem around this workforce that represents so much innovation and evolution. AI-fueled talent acquisition, the continued growth of direct sourcing, the convergence of VMS and HR-led technology, massive shifts in how businesses find and engage talent, and the next great era of the Gig Economy all point to the extended workforce as a key Future of Work tenet in 2024 and beyond.

Future of Work 2024: Predictions for the Year Ahead (Part III)

Business Leadership Contingent Workforce Direct Sourcing Diversity and Inclusion General Insights HR Solution Providers Talent Acquisition Technology and Innovation by Christopher J. Dwyer on 12/27/2023

The Future of Work Exchange continues its series on 2024 Future of Work predictions, courtesy of the industry’s brightest thought leaders and executives. The below insights are peeks into what the year ahead may bring for organizations across the globe regarding talent, technology, and work optimization. (Read Part I and Part II of our predictions series.)

“Peak AI hype will fade. However, the most innovative and competitive companies will take on the true challenge of AI’s digital disruption – its people. The paramount skill sought by companies will be “good judgement,” elevating it from a soft skill to a crucial human-in-the-loop necessity. Companies will realize that their AI adoption challenge isn’t access to technology, it’s access to people with the skills and bandwidth to stand up the programs. – Tim Sanders, VP of Client Strategy, Upwork

“2024 will see increased dissolution of silos between extended and FTE workforce management, accelerated by integrative technologies and the demand for more flexible, high-impact talent strategies.” – Jeff Mike, Head of Insights and Impact at Flextrack

“Classifying independent contractors (and avoiding misclassification) will be even more crucial in 2024. Compliance risk is always a concern when engaging a large contingent workforce. Growing companies may mistakenly classify someone as an “independent contractor” when that person should technically receive the benefits of “employment.” U.S. labor laws are becoming more specific, with a new proposed Six-Factor “Economic Realities” Test to determine worker status on the horizon. Companies must be mindful of labor laws and IC classification, as each country (and even each U.S. state) has its own nuances. Misclassifying employees as independent contractors carries risks and penalties, including fines, jail time, or being banned from talent acquisition in that country. Cover your compliance bases in 2024!” – The Team at WorkSuite

“A lot of excitement around AI and the Future of Work is still about how it’s generating efficiencies and improvements. But, as companies go past that initial fervor and move towards a more strategic transformation there’s going to be even more demands on finding skills, upskilling and shaping a new look organization. Businesses will need to learn from digital transformation and recognizing that as work changes, an extended workforce is more able to have the skills to plan and deliver those changes.” – Sandeep Dhillon, CEO, Talmix

“The era of corporate monoculture is over. Gen Z is the most culturally aware, globally-connected generation we’ve seen, and they bring a variety of backgrounds, skills, and expectations to the workplace. For 2024, expect far less desire to conform and a greater emphasis on customizable benefits and perks, along with increased consideration of mental health and ethics. The one-size-fits-all, US-centric approach to culture building will be replaced by employee-driven, bottom-up programs that prioritize self-directed engagement and cross-cultural learning. As part of that, executives will need to be trained on cross-culture (and cross-generational) communication. This is a generation that has learned to set their own rules and build skills on the fly, evolving and learning alongside the technology they used to study and connect. Now that they’re in the workplace, Gen Z doesn’t want to be micromanaged; they crave trust, autonomy, and flexibility in their work. Given freedom to experiment, this generation will continue to reinvent the way we look at work, including working remotely, hybridly, and independently as preferred career choices.” – Jessica “JJ” Reeder, Director of Remote Organizational Effectiveness, Upwork

“The proliferation of artificial intelligence as viable and accretive to decision-making has been remarkable to witness this year. The toothpaste is fully out of the tube and there’s no turning back. What’s interesting to see, however, is how some of our predictions last year on the impact of AI on the workforce evolved with the benefit of hindsight. It was originally thought that AI would have an outsized impact on front-line work and those in traditionally blue-collar roles, perhaps as automation took hold in factory and warehouse settings, but as it turns out, many are predicting a greater degree of disruption on IT and marketing roles, which could have profound implications on we view job roles and structures, especially in tech. Conversely, I predict that AI will be beneficial to industrial staffing and the supply chain workforce ecosystem as we realize with increasing confidence how certain job functions aren’t easily performed by anyone other than highly-skilled human beings. There’s a combination of judgment, experience, intelligence, and physical dexterity that coexists seamlessly within the skilled trades, and that’s a confluence of assets that we haven’t yet seen AI capable of credibly pulling off, nor do I see that as likely in the near future.” – Vinda Souza, VP of Corporate Communications, Employbridge

“I expect to see increasing collaboration and maybe even consolidation of traditional parts of the ecosystem with some of the newer entrants. The recently-announced Upwork partnerships with VMS providers have beaten the New Year’s Eve chimes, and I’m sure we’ll see more marketplaces embedded with MSP partnerships and VMS integrations, as the enterprise puts more emphasis on the extended workforce, and wants to bring all the components together. We’re describing 2024 as the year of the grown-up talent marketplace, and instead of competing against centralized programs, they’ll be a part of it.” – Dorothy Mead, VP of Marketing and Brand, Talmix

“Distributed work is going to continue to grow and become “smarter” as we all learn how to work differently. Technology is only getting better at connecting us and removing friction that remote work used to have e.g. dropped calls, lack of knowledge-sharing tools, etc. In fact, according to our recent research, days in the office do not directly correlate to higher performance because trust and flexibility are at the core of fostering distributed teams. As people analytics continues to mature as a discipline, thanks in large part to AI, we’ll be able to better customize work arrangements based on data, allowing for greater individualization of work.– Dr. Kelly Monahan, Managing Director, Upwork Research Institute

“Recruitment technology companies have been trying to solve the problem of shift scheduling for years, with varying degrees of success. Now that we’ve reached a tipping point, I predict that AI will help effectively connect candidates with gig work opportunities that not only match their skill sets, but also accommodate their scheduling preferences – and it will be quick and seamless. All of this ties into a broader theme of mobile platforms and artificial intelligence making life easier for workers – to find, apply for, and manage multiple gig jobs, but most importantly, to offer greater flexibility and control over their work lives and futures. Over the past several years we’ve seen increasing consolidation across the staffing ecosystem and the infusion of private equity into staffing, although that cooled somewhat in 2023. For next year, I anticipate that AI-driven efficiencies and advancements in experience design will lead to further market consolidation, with larger staffing firms acquiring and/or integrating with smaller, specialized firms that shore up gaps in segmentation or technical capability. This consolidation, in turn, will ideally lead to a more unified jobseeker experiences, giving candidates broader access to varied job opportunities through the availability of fewer, but more feature-rich and extensible, platforms.” – Colin Mooney, Chief Transformation Officer, Employbridge

Future of Work 2024: Predictions For The Year Ahead (Part II)

Business Leadership Contingent Workforce Direct Sourcing Diversity and Inclusion General Insights Talent Talent Acquisition Technology and Innovation by Christopher J. Dwyer on 12/19/2023

“The workforce solutions landscape is evolving rapidly, driven by the impact of AI and its present and future influence on comprehensive total talent solutions. In this dynamic environment, the industry is positioned to break existing boundaries, harnessing technology in new and innovative ways. Emerging are more robust ecosystems that will provide integrated, transformative solutions. The widespread adoption of AI is set to reshape the course of the industry, empowering companies to excel in a fiercely competitive, skills-based talent market. The compelling combination of AI and human expertise is positioned to further reduce friction between talent and work, advancing the industry and effecting positive change.”– Lori Hock, CEO, Opptly

“The healthcare landscape is evolving rapidly. Forget cookie-cutter approaches to recruiting and retaining top-tier clinicians in 2024. Expect facilities to embrace personalized staffing solutions – flexible schedules, internal gig options, and tailored international recruitment. It’s a dynamic ecosystem, and specialized support companies, with their diverse technology and services, will be vital partners for healthcare organizations navigating this terrain.” – Matt Jensen, SVP Client Services, RightSourcing by Magnit

“2024 is the year we’re going to see practical potential unleashed with artificial intelligence on HCM processes, including enabling more sophisticated job-candidate matching beyond the algorithmic matching of today. We’ll also start to see deep learning being leveraged to analyze a candidate’s skills, experiences, and preferences, to not only materially generate better job matches but also potentially improve on-the-job performance. Meanwhile, I expect that predictive analytics will help on the client side by better forecasting labor market trends, allowing staffing firms to not only proactively align candidates with appropriate future opportunities, but also identify new talent pools and segments with increasing demand.” – Colin Mooney, Chief Transformation Officer, Employbridge

“High5 anticipates a rising trend in organizations embracing direct sourcing platforms to engage talent directly, bypassing conventional recruitment methods and facilitating agile hiring processes. The emphasis will also shift more towards conversational vetting, which goes beyond conventional skills challenges. Moreover, in today’s landscape, connecting with passive candidates will have a heightened significance in 2024. We see technology, such as High5, playing a pivotal role in this scenario, enabling organizations to leverage digital tools for targeted outreach, personalized communication, and efficient talent relationship management.” – Kara Kaplan, CEO, High5

“In 2023 we saw the first few raindrops of AI but I think that as we step into 2024, we should prepare for the downpour of impact, as AI, Machine Learning and Automation continue to transform our industry. These advances in technology mean that people will become increasingly free of admin burden, allowing us to focus on more of the strategic and relationship-based elements of our work.” – Andrew Erlichman, VP, Sales/Channel Partner Strategy, Guidant Global

“In 2024, a significant shift, perhaps a ‘Great Rebalancing’, seems imminent within the contingent workforce sector. Large corporations will grapple with challenges in attracting top-tier talent due to the lingering impact from layoffs, return-to-office mandates, and weakened diversity initiatives. Astute companies will take note of the cost of reputational damage and rather than solely focusing on imposed resource constraints and rate reductions, forward-thinking companies will redirect their emphasis towards evaluating savings by prioritizing risk mitigation. Their focus will shift towards avoiding legal disputes or negative publicity, acknowledging the preservation of reputation holds substantial value in cost-saving measures. Meanwhile small and mid-sized firms, leveraging their nimbleness, will swiftly attract superior talent, driving business growth and opening the door for greater investment in innovation. These entities will excel in integrating AI into workforce strategies, navigating M&A activities, and fostering inclusivity among the contingent workforce. Service providers mirroring this agility are poised to revolutionize how buyers source and manage contingent workers, heralding a more balanced standard for human-centricity within workforce decisions. This evolution entails greater integration between all workers regardless of their classification and will drive a focus on discussing ‘total talent’ as a practical solution.” – Cara Kresge, Chief Revenue Officer,

“While we are confident that AI will become more embedded in the recruiting process, we believe there will be more emphasis on how to do so in order to ensure there are fair, equitable and ethical outcomes. When it comes to recruiting, there is unconscious bias in how people make their hiring decisions. AI models can reinforce this bias, leaving candidates, like moms and women of color, at a disadvantage. It is important to design models to avoid assumptions and biases by excluding data such as historic hiring outcomes or gaps and potential exclusionary characteristics. Companies that take a more human-modeled approach whereby modeling is designed by what we learn from recruiters, for example, can reinforce tactics that produce more ethical results and decrease tactics that do not. We will continue to see a significant uptick in AI experimentation in the coming year, so the challenge for companies is to not only help minimize bias as we learn, but avoid excluding or overlooking qualified candidates, potentially missing out on highly qualified people who can provide great value to your company.” – Jess Dominiczak, Chief Product Officer, The Mom Project

“2024 will be the year that talent professionals fully adopt and incorporate automation and artificial intelligence into their recruitment strategies. In 2023, we saw many staffing and recruiting professionals explore and discover how generative artificial intelligence such as ChatGPT can boost efficiency. However, to keep pace with the industry in 2024, firms will need automation and artificial intelligence to power their entire recruitment processes, from front end to back end. As a result, staffing and recruiting teams will be able to quickly hire top candidates, build strong talent pipelines, engage candidates more effectively, and generate more actionable data about their talent-acquisition and job-fulfillment efforts. Automation and artificial intelligence will no longer be nice-to-haves; they’ll be must-haves, especially as firms continue to navigate a fluid economy and an ongoing talent shortage.”– Sameer Penakalapati, Founder and CEO, Ceipal

Future of Work 2024: Predictions For The Year Ahead (Part I)

Business Leadership Contingent Workforce Direct Sourcing Diversity and Inclusion General Insights HR Solution Providers Talent Talent Acquisition Technology and Innovation by Christopher J. Dwyer on 12/18/2023

It’s that time of year again when we leverage our insights and experiences from the year that was to effectively look forward to the months ahead. The Future of Work Exchange is excited to share a variety of commentary from thought leaders and executives from across the industry. Today is the first in a multi-part series that will run through the end of next week.

“In 2024, we will see real examples of total talent management (or total workforce optimization) where organizations use newly available tools to get visibility into their entire workforces and use that to drive both better decision-making and to ensure compliance with an increasingly complex regulatory environment.” – Brian Hoffmeyer, SVP of Market Strategies, Beeline

“The Future of Work demands a cognitive contingent workforce management platform, a central nervous system for talent that orchestrates every channel. This platform won’t just hire; it will predict, adapt, and learn — anticipating your needs and delivering the right talent, right when you need it. Human expertise augmented by AI will create a workforce that’s nimble, responsive, and thrives in a constantly evolving landscape.” – Vidhya Srinivasan, Chief Product and Marketing Officer, Magnit

“2024 will be the year that differentiated talent sources start to become more accessible through a single point of entry. VMS platforms, Direct Sourcing platforms, and Marketplace aggregators will become better integrated, allowing organizations to have more coordinated access to all types of contingent labor (contract, consultant, gig, freelance, SOW).” – Kevin Leete, Senior Director of Sales, WorkLLama

“The contingent labor market presents the greatest opportunity for disruption. Over the past decade, we have seen only incremental changes as the value of this workforce segment is increasingly recognized. The need for agility will only continue to grow and when paired with increasing talent shortages, organizations need to broaden their view and approach to ensure their workforce strategies will be both competitive and sustainable.” – Amy Doyle, Global Leader, SVP, Talent Solutions TAPFIN

“AI will benefit the workforce by creating more jobs, improving efficiencies, and powering our imagination to rethink how we work.” – Sunil Bagai, CEO, Prosperix

“In 2024, we expect to see RPO making a comeback and more organizations will leverage their employer brand to attract and engage contingent labor through technology-enabled talent communities and direct sourcing. Unsurprisingly, services procurement is also high on the agenda, given it represents a largely untapped opportunity for procurement to drive huge strategic and efficiency gains as well as cost savings. All of this will pave the way for a more integrated approach to workforce solutions and dare I say it, possibly even total workforce solutions.” – Sara Gordon, SVP Client Relationships, Guidant Global

“Everyone loves a good headline and nowhere more so than tech, where we were inundated in 2021-22 by stories of ‘Quiet Quitting’ and the ‘Great Resignation,’ and of course, the ubiquity of remote work in a COVID-informed knowledge work ecosystem. First, let’s not forget that from the vantage point of the supply chain, most of the talent that support this incredibly robust ecosystem have been working onsite without interruption before, during, and after the pandemic. But for traditionally office-based professionals, a lot has changed in 2023. The pendulum has swung away from white-collar talent and if not directly toward employers, then to somewhere abstract that seems relatively inaccessible to either party. The ‘Great Resignation’ has been replaced by the ‘Great Reckoning’ – a realization that forcing computer-reliant workers back to the office, when they’ve proven historically that they can be effective working remotely – will result in neither increased satisfaction nor increased productivity.

Also, all these RTO mandates conflate work volume with visibility and suggest a level of short-term memory recall. Back before the pandemic, in tech at least, we spent most of our time in an office, but we weren’t particularly heads-down. There were a lot of lunches out, a lot of chit chat in meeting spaces, and a lot of running out midday to go to the gym, meaning that productivity can be higher when those things aren’t a convenient option. That being said, the concept of culture in a world of remote knowledge work is tricky, for precisely that reason. People are working incredibly hard remotely, grinding as it were, without being able to interface with people face-to-face or separate their home and work worlds. That leaves us collectively on the precipice of burnout and contributes to an already epidemic amount of loneliness. For 2024 I predict a radical refocusing on creating cultural connection, leveraging technology and the platform ecosystem to generate and cultivate stronger bonds between people, greater alignment and efficiency, and an increasing level of honesty and authenticity around the concept of identity and fulfillment within a professional context.” – Vinda Souza, VP of Corporate Communications, Employbridge