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Direct Sourcing

Future of Work 2025: Predictions for the Year Ahead (Part II)

2024 was another watershed year for the world of work and talent…and 2025 promises to be another transformational period in business history. Ardent Partners and the Future of Work Exchange are excited to unveil a series of predictions over the next few weeks from industry thought leaders.

“2025 is a year of growth and transition.  We will see a seamless integration of technology and human potential as the workforce continues to evolve with the advances in AI.”

Janette Marx, CEO, Airswift 

“Gone are the days of operationally-led MSPs; in 2025, there will be even more of an expectation of “self-service” from enterprises. MSPs will not survive without next-generation technology that can enable self-serve, omni-channel talent acquisition and talent management approaches. This will be critical as skills-based hiring becomes more of a focus for business leaders in 2025. There will be a need for the convergence of self-service functionality, Best-in-Class platforming, and modernized talent community/talent-pooling development.”

Tammy Browning, SVP and President, KellyOCG

“Clients will start demanding the highest levels of service.  They are looking for partners who are in the service business that happens to be technology-enabled.  Companies with exemplary service offerings will win!”

Denise Stalker, SVP, Managed Services, TalentProcure

“I believe in 2025 we are going to see the rapid development of AI coupled with more concrete regulation. I think we can all agree that AI is going to be pivotal in the human capital space and that the hesitancy around adoption because of the unknown will continue to diminish as we understand more about how AI works. I look forward to exploring AI in the extended workforce and will also be interested to see how regulations will come to follow. 

Often times with uncertainty we see a rise in extended workforce utilization, but what that looks like I predict will be different than previous years. While, yes, there will likely be an increase in your traditional staff augmentation there will also be increased utilization of outsourced organizations through services procurement as well as increased utilization of talent platforms. This will create challenges in getting a full read of your extended workforce unless you make a conscious effort to consolidate your workforce data into one system.”

Taylor Ramchandani, VP of Strategy, VectorVMS

“2024 was the year of resilience, and in 2025, the U.S. staffing industry is expected to continue its transformation, driven by technological advancements, changing workforce expectations, and macroeconomic factors. Temporary staffing will likely see a rise in demand due to ongoing flexibility in employment patterns across sectors such as healthcare, IT, and logistics. The healthcare sector, in particular, may experience significant growth, spurred by aging demographics and an ongoing demand for skilled healthcare professionals. Similarly, the IT sector will likely fuel demand for temporary talent to address project-based needs in emerging technologies like AI, cloud computing, and cybersecurity.

Permanent placement and direct-hire services are expected to grow with the rise of hybrid and remote work models, employers may focus on sourcing highly-skilled, geographically-diverse talent. Additionally, executive search is projected to grow as companies prioritize leadership with expertise in navigating digital transformation and sustainability challenges. 

One area where we can continue to experience significant growth is the Gig Economy and freelance staffing platforms, using AI-driven platforms to connect employers with niche talent pools, particularly in creative, IT, and technical roles. These trends suggest staffing organizations will thrive if they’re increasingly specialized, technology-driven, and aligned with the needs of a flexible, skills-oriented workforce.”

Greg Iannuzzi, Director of Client Solutions, Ceipal

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Let’s Set the Record Straight on Direct Sourcing

As you may know, the Future of Work Exchange moved to a subscription format a short time ago. Ordinarily, this article would only be accessible to FOWX subscribers. However, today’s article on direct sourcing will be available to all until midnight on December 16. Given the rampant discussion on direct sourcing and its outlook, direction, etc., the FOWX felt that this piece should be accessible to all readers for a short period. Enjoy!

For nearly 20 years, I’ve seen talent trends, shifts, and “fads” come and go. There is no industry that invites divisiveness like the world of talent and work. Making contingent workforce management less tactical and more strategic was once seen as crazy, yet today the extended workforce comprises 49.8% of the average company’s total talent, and, businesses regularly rely on this top-tier labor to get work done.

Total talent management deserves a major mention, as it still (yes…still) drives executives absolutely nutty on completely opposite sides of the spectrum: it’s either the wave of the future, or, it’s a pipe dream mired in conjecture and theory. (My take: there’s incredible value in elements of total talent management, particularly total talent intelligence. The ability to make snap worker decisions based on information and data on your total talent resources is the real benefit of any total talent management strategy/program.)

Direct sourcing has reached a similar level of conjecture, and, rightfully so: since the waning days of pre-pandemic times, “direct sourcing and talent pools” have routinely been a top-three workforce strategy, according to Ardent Partners and Future of Work Exchange research. Furthermore, during the pandemic, direct sourcing emerged as a viable, flexible strategy for businesses that 1) wanted to scale up or down based on rollercoaster-like market conditions, 2) keep those laid off during the worst of the pandemic engaged with the organization and cultivated within an easily-recruitable talent community, 3) wanted to maintain their brand (and keep it front-and-center) in front of potential candidates, 4) support burgeoning skills-based hiring efforts, and, 5) desired to centralize their total talent resources and available skills.

There is no question today regarding the value of direct sourcing; we all realize what it can do, what it can generate, etc. The real quandary (and it’s a painful one, given the discourse on social channels liked LinkedIn) is this: how does direct sourcing actually work?

There are several schools of thought here. The simplest explanation is that an enterprise can leverage its own talent acquisition and contingent workforce teams to create an internal “recruitment agency” that blends branded job portals, curation (internally-led or outsourced), and marketing-fueled engagement with VMS or ATS technology (for sourcing and management) and EOR (for payrolling and compliance) for workforce management. Add in some level of automation to place current contractors, contingent workers, retirees, alumni, silver medalists, etc. into talent pools, and, boom, a direct sourcing program is born.

This very non-intricate approach thrives on simplicity: engage candidates, curate them, and provide internal TA and recruitment teams with access to these workers. The past several years has seen a shift, however, in how direct sourcing is approached. Deeper automation, specific functionality offered by direct sourcing platforms, a sharper focus on skills-based hiring, more attention on the marketing/brand aspects, and the power of artificial intelligence are all transforming what direct sourcing truly means today in 2024.

Here’s where some of the scuttlebutt meanders and gets us to a point of “theory vs. reality” within the direct sourcing discussion. Do businesses really need point direct sourcing platforms? Is there a real role for AI? Is there even a true DEFINITION for direct sourcing? Where does VMS fit in? Is it true that direct sourcing technology is just next-gen ATS? And, finally, does direct sourcing have a place within the contemporary extended workforce program?

Let’s tackle these one-by-one, because that’s just how we do things here at FOWX.

The rest of this article is available by subscription only.

Introducing a New Subscription Model

To continue providing valuable insights and resources on the future of work and extended workforce management, we’re transitioning our site to a paid subscription model. While some posts will remain free, subscribing will grant you exclusive access to in-depth analysis, market research, expert interviews, and actionable strategies that will help improve your business. Solution providers and practitioners are invited to join today and gain a competitive edge by tracking the industry’s important innovations, emerging trends, and best practices.

Click here to learn more.

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The FOWX Fifteen: AMS.

The FOWX Fifteen is an exclusive series at the Future of Work Exchange that highlights the industry’s innovative and disruptive platforms, solutions, and offerings that are driving the Future of Work movement. These providers are actively pushing talent technology innovation and ushering in a new, digital era of workforce management, staffing, and talent acquisition.

The Background

The talent technology industry is awash in innovation. Whether it’s AI-fueled functionality, next-generation managed services, or progressive workforce management capabilities, there is no better or more ideal time to be a talent acquisition, HR, or extended workforce leader than right now.

A talent-centric, candidate-oriented world of work means that enterprises require a level of elegance, automation, and efficiency to effectively maximize new and exciting hiring strategies. Progressive concepts such as direct sourcing, digital recruitment, skills-based hiring, and Best-in-Class talent technology stacks are all elements that now fuel the Future of Work movement.

Enter AMS.

Why They Were Selected

AMS was purpose-built for the Future of Work, with an impressive arsenal of talent acquisition and workforce management services, all buoyed by the powerful AMS One platform. AMS One comprehensively streamlines workforce (traditional and extended) management through integrated digital capabilities, seamlessly enabling comprehensive recruiting, hiring, engagement, and operational (scheduling, workforce planning, payment processing, and reconciliation) functions within a unified suite of functionality.

Furthermore, AMS stands as a robust service provider that impeccably blends MSP, RPO, talent acquisition, and direct sourcing solutions together in an sophisticated, cohesive manner. The company’s Best-in-Class recruitment-driven offerings are anchored in global talent expertise and an innovative service delivery model that prioritizes forward-thinking talent strategies and approaches. And, with progressive solutions like the DE&I gamechanger AMS Omnis, AMS continues to thrive in an evolving world of work.

In Their Own Words

“AMS is honored to be named a global leader by Ardent Partners and the Future of Work Exchange, reflecting our unique ability to drive transformative talent acquisition outcomes. As a trusted partner to some of the world’s most well-known organizations worldwide, we deliver comprehensive talent solutions—across MSP, RPO, direct sourcing, talent advisory, and digital solutions—all powered by cutting-edge technology and a relentless focus on innovation.

Today’s talent landscape is rapidly evolving, with a growing need for agile external workforce strategies. Our capabilities enable TA and HR leaders to adapt swiftly to this shift, helping companies leverage their brand to attract, engage, and retain critical talent on a global scale. Our award-winning solutions, like AMS One, combine deep domain expertise, data-driven insights, and advanced AI to optimize strategic talent initiatives. This accolade reinforces AMS’s commitment to empowering organizations to build high-performing teams and unlock new value through the external workforce. As the Future of Work unfolds, we’re here to ensure our clients stay ahead embracing change.” –Christoph Niebel, Chief Client Officer and President, Americas

The Outlook

AMS is positioned as a Future of Work-driven, talent-oriented, and innovation-heavy workforce solutions stalwart, seamlessly transforming talent acquisition through total talent intelligence and digitized hiring optimization. By converging advanced AI-powered functionality with agile direct sourcing and recruitment methodologies, AMS will continue to empower organizations to navigate the complex talent ecosystem with unprecedented, strategic precision.

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The FOWX Fifteen: Opptly

The FOWX Fifteen is an exclusive series at the Future of Work Exchange that highlights the industry’s innovative and disruptive platforms, solutions, and offerings that are driving the Future of Work movement. These providers are actively pushing talent technology innovation and ushering in a new, digital era of workforce management, staffing, and talent acquisition.

The Background

Quick…name the most electrifying word in today’s business landscape. I’ll give you 10 seconds. Wait, you didn’t even need 10 seconds, did you?

“Artificial intelligence” rolls off your tongue faster than a machine learning algorithm processes data..and for good reason: AI has become the cornerstone of innovation, seamlessly weaving through enterprise ecosystems – from the intricate networks of IT and analytics to the strategic realms of finance and talent acquisition.

Recent groundbreaking research from Ardent Partners and Future of Work Exchange reveals a transformative landscape: an overwhelming 82% of businesses entered 2024 with a strategic mandate to amplify their artificial intelligence capabilities. Even more revealing? Among HR and talent acquisition leaders, that number skyrockets to nearly 95% – a clear signal of a profound technological revolution.

This isn’t just about technological adoption, though; it’s about a fundamental reimagination of talent strategy. AI represents more than a tool – it’s a strategic accelerant that empowers talent leaders to transcend traditional boundaries. By harnessing next-generation analytics, organizations can now dynamically map, find, and engage talent, while simultaneously building robust, forward-looking skills taxonomies that don’t just predict the Future of Work – they actively shape it.

Enter Opptly.

Why They Were Selected

Opptly’s core offerings revolve around progressive functionality within direct sourcing, candidate engagement, skills-based hiring, and skills taxonomy development. However, the platform is so much more than the sum of these attributes, as the solution is a true “people technology” that is actively blazing a path forward within the Future of Work movement.

The proprietary and future-leaning artificial intelligence-driven technology within the Opptly platform represents the veritable future of AI in talent acquisition. Opptly’s advanced AI offerings seamlessly match the best talent with mission-critical opportunities by analyzing deep professional insights, skills, expertise, and project requirements in real-time, all while factoring in progressive candidate elements such as culture, diversity, etc.

Through sophisticated machine learning algorithms and NLP-augmented functionality, Opptly optimizes the entire talent lifecycle – from sourcing and vetting to engagement and project success – delivering unparalleled efficiency and precision in the direct sourcing, talent acquisition, and workforce management ecosystems.

In Their Own Words

“Opptly is proud to be included amongst other Best-in-Class platforms and solutions in the talent technology arena. This accolade is a testament to our unwavering commitment to truly unbiased artificial intelligence that can revolutionize the ways businesses find, engage, and manage their total talent. Opptly represents the future of hiring – where cutting-edge technology meets human potential, creating a seamless, intelligent, and equitable dynamic that transforms how organizations and talent connect, collaborate, and succeed.” – Lori Hock, CEO of Opptly

The Outlook

Simply put, Opptly is a pure technological representation of the Future of Work movement: next-generation functionality, AI-fueled talent innovation, and cutting-edge, skills-based hiring offerings that are actively revolutionizing the ways businesses address how work is done. As artificial intelligence continues to dominate talent acquisition strategies, Opptly and its progressive AI sophistication will continue to help enterprises dynamically adapt to modern workforce trends, seamlessly match top-tier talent with critical opportunities, transform their talent strategies, and provide an intelligent and infinitely scalable competitive advantage.

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Digital Credentials Provide Talent Visibility, Skill Recognition

As people’s careers progress, they establish a professional profile comprised of a resume, portfolio, performance reviews, letters of recommendation, degrees, certifications, memberships, and other career achievements. Often, these paper-based items are dispersed and sometimes forgotten over time. However, they are all critical pieces of employees’ professional identities that make them unique in the workforce. Even more important, they represent their skills and competencies to potential or current employers.

What is the answer? Enter the world of digital credentials.

A Digitized, Verifiable Professional Profile

At the foundational level, candidates convert their professional profiles into digitized and verifiable credentials that enterprises access quickly and securely when recruiting or promoting staff. In today’s aggressive labor market, having digital credentials is a competitive differentiator in the workforce. It separates a candidate’s application from random submissions, thus streamlining the selection process and generating cost savings for the hiring enterprise through greater efficiencies.

The rest of this article is available by subscription only.

Introducing a New Subscription Model

To continue providing valuable insights and resources on the future of work and extended workforce management, we’re transitioning our site to a paid subscription model. While some posts will remain free, subscribing will grant you exclusive access to in-depth analysis, market research, expert interviews, and actionable strategies that will help improve your business. Solution providers and practitioners are invited to join today and gain a competitive edge by tracking the industry’s important innovations, emerging trends, and best practices.

Click here to learn more.

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Direct Sourcing Gains an Assist with Chatbots

The dial on artificial intelligence (AI) has been turned up to such a degree that anyone can now experiment with the technology. AI tools from ChatGTP to Lensa are putting the power of AI into the hands of everyday folks — with stunning results. While the consumer side of AI continues to gain attention, it’s important not to overlook the applicability and possibility of the technology for direct sourcing and extended workforce needs.

Today, there are several providers of AI-based tools for optimizing the direct sourcing of extended workers. One of the most recognizable and popular tools is chatbots. This technology has evolved significantly over the years from a more scripted application to one of conversational AI realization. Through developments in natural language processing, users have a difficult time recognizing whether it’s a human or a bot they’re interacting with.

How are chatbots contributing to efficiencies in direct sourcing efforts? It’s occurring in several ways, allowing HR, business managers, and recruiters to focus on more strategic aspects of total talent management initiatives.

The rest of this article is available by subscription only.

Introducing a New Subscription Model

To continue providing valuable insights and resources on the future of work and extended workforce management, we’re transitioning our site to a paid subscription model. While some posts will remain free, subscribing will grant you exclusive access to in-depth analysis, market research, expert interviews, and actionable strategies that will help improve your business. Solution providers and practitioners are invited to join today and gain a competitive edge by tracking the industry’s important innovations, emerging trends, and best practices.

Click here to learn more.

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Value of Artificial Intelligence Delivers for Human Resources

Artificial intelligence (AI) has fully broken through the parameter of the Future of Work — where HR can effectively engage with AI technologies to deliver automation and sustainable talent outcomes. The complex decision-making of today’s HR professionals makes AI a near necessity to achieve recruitment and total talent management objectives in the current enterprise. By leveraging AI, machine learning, and data analytics, HR professionals can automate many manual tasks while enhancing the employee lifecycle experience.

The embrace and utilization of AI technologies is proving transformational for HR professionals and their industry. According to Sameer Maskey, founder and CEO for Fusemachines, and adjunct associate professor at Columbia University, in a Forbes article, “Clearly, AI is primed to disrupt the HR industry as we know it. In fact, with AI, HR teams are poised to serve as a critical and strategic ‘talent insights engine’ of an organization,” he says.

“However, this advancement requires HR professionals to do more than just embrace the technology to unlock automation-powered efficiencies and data-driven decisions. It requires them to identify novel applications of AI, such as a virtual recruiter, or employ simulated AI-augmented work settings for recruitment that will increase the efficiency of the HR team even further. Doing this will take candidate and employee engagement to a whole new level,” Maskey adds.

While HR is reaping the benefits of AI for such automated tasks such as payroll and benefits administration — essential responsibilities of HR — there are even greater strategic opportunities to truly revolutionize core talent acquisition and talent management areas.

AI Elevates Direct Sourcing Strategies and Employee Retention Execution

AI tools and machine learning algorithms are aiding HR professionals in streamlining workforce processes across the enterprise. The following are several areas where AI can bring immediate value to human resources and provide valuable insights into workplace strategy and dynamics.

The rest of this article is available by subscription only.

Introducing a New Subscription Model from the Future of Work Exchange.

To continue providing valuable insights and resources on the future of work and extended workforce management, we’re transitioning our site to a paid subscription model. While some posts will remain free, subscribing will grant you exclusive access to in-depth analysis, market research, expert interviews, and actionable strategies that will help improve your business. Solution providers and practitioners are invited to join today and gain a competitive edge by tracking the industry’s important innovations, emerging trends, and best practices.

Click here to learn more.

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The Future of Work Exchange Podcast, Episode 801: Direct Sourcing Panel Discussion With Beeline, Opptly, Raise, and Talent Solutions TAPFIN

Season Eight of the Future of Work Exchange Podcast kicks off with a dynamic panel discussion on direct sourcing. Rebecca Valladares (Opptly), Brian Hoffmeyer (Beeline), Tim Rhodes (Raise), and Matthew McCartney Waggle (Talent Solutions TAPFIN) join me to discuss the state of direct sourcing, AI’s impact on hiring and recruitment, the future of direct sourcing programs, how skills-based hiring will reshape talent acquisition, and more. Tune in!

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Artificial Intelligence, Contingent Workforce Management, and the Future of Work (On-Demand Webinar)

Earlier this week, Ardent Partners and the Future of Work Exchange hosted an exclusive webcast focused on AI-powered contingent workforce management and its impact within the Future of Work movement. I was joined by Opptly’s Lori Hock (CEO), Beeline’s Colleen Tiner (Chief Product Officer), and NLP Logix’s Matt Berseth (CIO, co-founder) to discuss a wide range of hot topics under the artificial intelligence umbrella, including:

  • The true adoption and utilization of artificial intelligence within today’s extended workforce programs, hiring strategies, and talent acquisition initiatives.
  • The link between AI and skills-based hiring.
  • How businesses can move from an “education phase” to “adoption phase” for their AI initiatives.
  • How AI can supercharge and optimize direct sourcing strategies.
  • Why AI-fueled skills taxonomies are the foundation of a skills-based hiring approach.

Check out an on-demand replay of the webinar below.

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The Technology Revolution and its Impact on Talent Acquisition and Workforce Management

It almost seems like we are floating in a constant vacuum of evolution. The economy continues to spin, technology progresses at an unprecedented clip, businesses continue to optimize their operations in such a way that they no longer resemble the past, and, most critically, the talent arena remains in a state of perpetual growth and revolution.

No other industry is as impacted by the developments in the technology space as much as talent acquisition and workforce management. The advent and rapid deployment of artificial intelligence has absolutely transformed so many facets of both ordinary life and the business spectrum, however, its impact is ever-present in a world in which its many automated arms have the ability to revolutionize so many organizational attributes.

The rest of this article is available by subscription only.

Introducing a New Subscription Model

To continue providing valuable insights and resources on the future of work and extended workforce management, we’re transitioning our site to a paid subscription model. While some posts will remain free, subscribing will grant you exclusive access to in-depth analysis, market research, expert interviews, and actionable strategies that will help improve your business. Solution providers and practitioners are invited to join today and gain a competitive edge by tracking the industry’s important innovations, emerging trends, and best practices.

Click here to learn more.

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