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Direct Sourcing

Improving the Impact of Direct Sourcing: Driving ROI Through Dynamic Talent Strategies

Direct SourcingEvents by John Yuva on

In today’s frenetic business climate, there are many factors that can prohibit the modern enterprise from succeeding. Perhaps the largest of these is the major skills gap that exists within a majority of businesses today, and the inability to support critical projects and initiatives with the necessary expertise. The past three years have marked a significant shift in the world of talent acquisition, with a global pandemic setting the stage for a complete transformation of the workforce. Amidst economic uncertainty and the need to navigate uncharted waters, organizations have come to realize that finding, engaging, and deploying top talent is no longer just an advantage, but rather a critical imperative.

Direct sourcing has emerged as the most viable and powerful of talent engagement strategies to boost the depth and quality of talent, enhance skills pipelines, and contribute to forward-looking talent acquisition initiatives. While direct sourcing programs remain the “hottest” of strategies today, there is a question of how to improve their ROI and enhance the overall value that direct sourcing brings to the contemporary organization.

Join Ardent Partners’ SVP of Research, Christopher J. Dwyer, along with LiveHire’s Executive Vice President, Karen Gonzalez, as they discuss the landscape of direct sourcing today and how it fits into 2023’s Future of Work-led business arena. Gonzalez and Dwyer will unveil strategies for improving the overall ROI of direct sourcing and how to position programs to succeed, and thrive, in the months and years ahead. Click here (or below) to register for next week’s exclusive event.

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Elevate Your Future of Work Processes with Blockchain

Business LeadershipContingent WorkforceDirect SourcingTechnology and InnovationUncategorized by John Yuva on

One of blockchain’s chief benefits is the ability to authenticate and protect information. With today’s decentralized workforces, there is a variety of information possibly at risk, including payroll, insurance, health, and personnel data. Similarly, HR and enterprise recruiters want assurance that potential job candidates and their résumés are authentic and accurate. Blockchain technology has the potential to provide the necessary verification and protection of such sensitive workplace data.

Here are three Future of Work areas where blockchain technology could provide critical verifications and safeguards, particularly for the contingent and gig workforce — from the recruitment to the contracting and payment process.

Recruitment

As direct sourcing becomes more ubiquitous, the need for data verification grows because of the sheer volume of candidate information entering job portals. It can be time intensive for HR and enterprise recruiters to verify qualifications and references. Blockchain can help in the recruitment process.

  • A candidate’s digital identity on a personal blockchain can save tremendous time authenticating a résumé and associated work experience. It serves as a single source of truth for that individual.
  • Colleges and universities are now issuing digital degrees through blockchain that candidates can provide a direct link to on their résumés. This same concept of virtual credentials can apply to training certificates and performance reviews for future authentication.
  • Reduce opportunities for fraudulent candidate information while providing greater confidence in using search engines and other aggregate technologies to automate candidate recommendations and selection.

In a Datatechvibe article, the author states another reason to embrace blockchain for recruitment purposes, “HR managers may become more predictive in anticipating HRM developments by embracing blockchain. They can replace vacant positions faster because the technology cuts the time it takes by leaps and bounds, and they can also improve the data’s legitimacy and dependability.

“Furthermore, they can scale quickly, resulting in a larger candidate pool and a larger data repository to collect data.”

Smart Contracts

When selection of job candidates for contracted or temporary work occurs, an enterprise can institute a smart contract on a blockchain. IBM describes smart contracts: “Smart contracts work by following simple ‘if/when…then…’ statements that are written into code on a blockchain. A network of computers executes the actions when predetermined conditions are met and verified.

“These actions could include releasing funds to the appropriate parties, registering a vehicle, sending notifications, or issuing a ticket. The blockchain is then updated when the transaction is completed. That means the transaction cannot be changed, and only parties who have been granted permission can see the results.”

Such employment contracts provide transparency and immutability for all parties and enable greater enforcement of their terms, conditions, and penalties. With a growing percentage of contingent labor, enterprises can initiate a smoother and more immediate payment system while also benefiting from a paperless process.

Payroll

With smart contracts in place, payroll is where blockchain can add immense value. Much of an enterprise’s most sensitive data resides in payroll — tax documents, pay stubs, benefits information, etc. Blockchain can protect these sensitive records from potential fraud and cybersecurity threats.

In terms of the payment process for contingent and gig workers, enterprises can establish a secure peer-to-peer network and use blockchain for near-instantaneous payment without the involvement of financial institutions. Thus, they can receive instant payment once their contractual obligations are met — without waiting for a pay period or invoice processing.

Blockchain is even more critical for international contractors and gig workers. The Future of Work is a global paradigm with accessible talent worldwide. However, some professionals cannot set up a bank account in their country. Blockchain and peer-to-peer networks solve that issue. In an article for Tech Target, Pam Baker, a technology and blockchain expert, says that with cross-border payments, “Traditional electronic payments (to the receiving country) can be stymied by local regulations and IT security schemes that blockchain payroll systems can overcome.”

Implementing blockchain technology into Future of Work processes will not occur overnight. Enterprises need to work with financial institutions, managed service providers, and other partners to adopt the technology and establish protocols. However, blockchain holds great promise as more organizations pursue digital transformations. The foundation exists to bring blockchain into HR process design. Like many things in business, communication and collaboration will be essential to blockchain’s implementation and realization.

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Scalability, Sustainability, and Direct Sourcing

Direct Sourcing by Christopher J. Dwyer on

This month, Ardent Partners and the Future of Work Exchange will publish its landmark Direct Sourcing 2023: Scalable Processes, Sustainable Talent research study. Today’s article is a sneak peek of the report, which is sponsored by Opptly and WorkLLama.

The phrase “sustainability” typically elicits thoughts of an enterprise operating in a manner that positively affects the environment, general community, or society. In the workforce arena, however, sustainability translates into the ability for businesses to sustain their own ecosystem of talent through the agile utilization of dynamic talent sources and channels. Direct sourcing and its many inner workings fit firmly into this concept of talent sustainability.

By utilizing direct sourcing methods and technology (and, subsequently, executing consistent maintenance of internal talent communities/pools), businesses are able to build a more seamless bridge to talent sustainability. By leveraging workforce solutions (such as extended workforce technology, VMS, etc.), direct sourcing channels, and both private and public talent communities, etc., self-sustaining outlets of talent allow enterprises to

  • Better align evolving skills requirements across the enterprise given product development and the progression of the greater organization.
  • Enhance the ways existing expertise and skillsets across the enterprise can be leveraged for real-time utilization, and;
  • Allow hiring managers and other HR/staffing executives to leverage nurture and candidate experience strategies to ensure that all networked workers are amiable and open to reengagement for new and/or continued projects and initiatives.

With the frequent occurrences of major skills gaps or a lack of high-impact expertise, the notion of talent sustainability can assist organizations in generating self-sustaining ecosystems of candidates who can be leveraged in an agile and on-demand manner to meet the evolving needs of global business.

Scalability is often a goal for many modern enterprise functions, as businesses that can scale processes and strategies reap much value. In the world of talent acquisition and human capital management, scalability takes on new meaning… considering that a worldwide health crisis launched many organizations into the new and uncharted territory of aligning workforce depth with fast-shifting market dynamics.

Regarding direct sourcing, scalability translates into two distinct ideas:

  • Amplifying and enhancing direct sourcing processes via harmonious internal synergies and end-to-end automation so the strategy can be applied to hiring initiatives across the greater organization
  • Harnessing the undeniable value of direct sourcing to effectively scale the workforce as internal and external factors dictate
  • When properly implemented and utilized, direct sourcing has an impact on both FTE and non-employee hiring, meaning that businesses can leverage talent communities and talent pools, as well as deep talent nurture capabilities, to quickly scale their workforce as they see fit.

The Direct Sourcing 2023: Scalable Processes, Sustainable Talent market research study publishes later this month.

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Data Delivers…But With Privacy Controls

Business LeadershipDirect SourcingGeneral InsightsHRTechnology and InnovationUncategorized by John Yuva on

The innovative technologies available to enterprises for talent acquisition and talent management are growing exponentially. Along with the growth in HR technology is the vast amount of data that comes with it. Direct sourcing solutions, for example, collect an enormous volume of data about potential candidates. Now with the power of artificial intelligence (AI), an even deeper analysis of employee data can be accomplished. While these insights can be game-changing for workforce productivity and employee engagement strategies, there remains a question about employee privacy.

Technology Pushes Privacy Boundaries

HR is the keeper of the most sensitive employee data in the enterprise from social security numbers to performance reviews to salary information. This standard information has always been under lock and key. However, technology is now extending data into more delicate areas, leading to privacy and security concerns. Consider wearables technology that enterprises are now experimenting with. Used extensively in retail and logistics environments, organizations can now track employee behaviors and health metrics, such as blood pressure, sleep patterns, and daily steps to monitor well-being and engagement.

While HR technologies can help with employee and organizational engagement, enhance efficiencies, streamline processes, and improve executive and managerial decision-making, what are the privacy and security issues of such advancements?

  • Data monitoring protections. The collection of data through monitoring or surveillance technologies opens the door to sensitive employee information. Whether it’s work habits and behaviors, such as productivity or attendance metrics, or more general health-related information, enterprises should establish clear policies and communicate transparently about the purpose and extent of monitoring to address privacy concerns. In the case of wearables, what are the objectives of using these devices? How will the information be stored? And who has access to it?
  • Data access controls. One of the biggest issues is simply the access and sharing of candidate and/or employee information. More HR data is now accessible by a larger stakeholder pool. HR personnel, managers, executives, and external service providers are privy to employee data. It is essential to establish strict access controls and protocols to ensure that only authorized individuals can access the data. Moreover, the sharing of employee data with external vendors or partners should be governed by clear policies and data protection agreements to protect employee privacy.
  • Data ethics guidelines and processes. How data is used by enterprises can come under great scrutiny if ethical guidelines are not instituted to prevent misuse or discrimination. Guidelines should begin with obtaining consent from employees to collect, use, and store their personal information. Similarly, enterprises should allow employees access to their information for review and correcting inaccuracies. As organizations integrate artificial intelligence tools into their HR solutions, an audit of algorithms should occur to prevent any biases.

HR technology is ushering in innovations that can truly transform and revolutionize the workplace and workforce strategies. However, the immense data generated can erode employee trust if not properly shared and protected. Compliance with privacy laws and regulations both in the U.S. and abroad is absolute. Equally critical is transparency with contingent and permanent employees around the collection, usage, and storage of data. Communicate that data privacy and individual rights are extremely important to the enterprise, as are cybersecurity measures.

Workforce analytics alongside other forms of intellectual property are competitive differentiators that enterprises must protect. Complacency is not an option in today’s data-driven world.

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Technology Adoption an Accelerant for Future of Work

Direct SourcingGeneral InsightsHRSolution ProvidersTalentTechnology and Innovation by John Yuva on

Within the last few months, coverage of technologies like artificial intelligence (AI) and augmented reality have heated up. With apps such as ChatGTP, anyone can test the AI waters and its relevancy to workplace efficiencies. Recent Ardent Partners and Future of Work Exchange research indicated the adoption of new workforce technology and solutions is an enterprise imperative for 68% of survey respondents.

One of the defining characteristics of the Future of Work is digitization. Enterprises are now operating with more remote and hybrid workplaces. Thus, technology is imperative to a cohesive and efficient workforce. What this means for the individual employee is more daily immersion in various technological platforms and solutions. Upskilling will be a critical aspect for workers as they harness more advanced technologies to communicate, collaborate, and execute their roles.

Digital employee experience (DEX) is a term that describes how effective workers are in using digital tools. DEX is a growing area of interest as companies adopt a plethora of digital tools to augment their dispersed workforces. Companies want to ensure the tools they have integrated into the workplace are intuitive and enhance worker productivity.

Tom Haak, director at the HR Trend Institute, says, “Technology offers enormous opportunities to improve the life of people in and around organizations. In HR, the focus is still too much on control and process improvement, not enough on really improving the employee experience.”

Today, with remote and in-person workers, enterprises must bridge those two environments and focus on technologies that both attract and retain workers regardless of where they work. Technology that supports the Future of Work comes in a variety of forms. Often, artificial intelligence (AI) permeates many digital solutions, providing automated processes and data outputs for better workforce decision-making.

Throughout the remainder of the year, the Future of Work Exchange will be highlighting several technologies from blockchain to e-wallets, and how they impact Future of Work strategies. However, the following are technologies that business leaders and employees are using now and, in the future, to enhance the DEX and drive workplace efficiency and community.

Communication and Collaboration

The COVID-19 pandemic put communication and collaboration to the ultimate test. Enterprises and employees experienced first-hand the potential of digital communication as they grew accustomed to using Zoom, Slack, and Microsoft Teams. These platforms proved that remote work could, in fact, be accomplished with the same productive and strategic outcomes as in-person work models. It is one of the major reasons why remote and hybrid workforce options were embraced by enterprises post-pandemic.

There are several communication and collaborative tools to serve the enterprise and its remote and in-person workforce. Basecamp provides both a communication and collaborative platform to keep projects on schedule and lines of communication open. Trello also makes project management run smoothly regardless of where an employee is based.

Beyond these more common collaborative solutions, companies are utilizing chatbots for internal use for collaborative purposes and employee support. ServiceNOW, for example, offers its Virtual Agent solution to bring people to the same collaborative workspace or provide answers to employee questions.

Another evolving collaborative offering is the virtual whiteboard for use during company and team meetings. Companies such as Miro, MURAL, and Stormboard provide effective tools for diagramming and presenting in real time.

Big Data (Predictive and People Analytics)

Volumes of data flood enterprises from a variety of sources. For HR and other business leaders, big data is crucial to their Future of Work strategies, generating analytics across the talent acquisition and talent management landscape. Predictive analytics, for example, will grow as a key component of direct sourcing initiatives to curate a pipeline of potential job candidates.

According to a post on the Future of Work Exchange (FOWX), “While predictive analytics are not commonplace today, soon, a majority of enterprises will look to scenario-building as a way to enhance overall talent intelligence. Predictive analytics, in this realm, will augment the organization’s overall knowledge of its in-house skills as well as the expertise available externally (across all talent communities, including talent pools).”

Where predictive analytics will help prepare the enterprise for its future talent needs, people analytics are necessary to understand how employees are embracing digital tools and applications. Are shared applications being utilized by the workforce? Is there participation in virtual workspaces? What are employee sentiments around an enterprise’s digital transformation? People analytics help answer these questions and provide key insights into employee productivity, well-being, and digital adoption.

Virtual Reality

In a previous post, FOWX explored the possibilities of the metaverse. Virtual reality will stretch the limits of employee interaction and community. Virtual workspaces where employee avatars can converse and strategize are likely to come to fruition in the coming years. It levels the playing field for remote and in-person employees by creating a setting for everyone regardless of location.

Artificial intelligence is also a major piece of the virtual reality offering. Currently, employees can create an avatar to complete repetitive tasks using AI or communicate with customers to answer product questions. As technology advances, the potential influence of virtual reality on the Future of Work will only increase. Today’s chatbots are just the beginning of how enterprises can leverage the virtual world and bridge humans with AI.

Just as the Future of Work evolves, so too will the technologies that support it. There are dozens of software applications on the horizon to benefit business leaders and their employees. Explore the options and how they align with your workforce strategy.

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Chatbots and Direct Sourcing — A Natural Fit?

Business LeadershipContingent WorkforceDirect SourcingGeneral InsightsHRTalent AcquisitionTechnology and Innovation by John Yuva on

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 some stunning results. While the consumer side of AI is gaining attention, it’s important not to overlook the applicability and possibility of the technology for direct sourcing and contingent workforce needs.

Today, there are several providers of AI-based tools for optimizing the direct sourcing of contingent 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.

Screening Candidates

Candidate screening can be time intensive. Thus, chatbots are assisting in this process by asking a set of pre-defined questions to candidates and identifying those who meet the required qualifications. This can save HR and recruiters significant time and resources by filtering out unqualified candidates and moving forward only those who will speak directly with hiring managers.

Scheduling Interviews

With dozens of potential candidates, chatbots can assist in coordinating interviews, ensuring that HR and hiring managers have appropriate time blocked out for other tasks. Streamlining this workflow process allows a quick and efficient means of interview scheduling. While this is a more tactical task, it’s an essential one that automation can complete.

Pooling Talent

A major element of direct sourcing is the curation and storage of candidate data. Chatbots can help build and maintain a database talent pool. This information can be used to match candidates with future job openings, streamlining the candidate selection process. The next level of this process is using AI to slice data further based on skills and competencies, which seems a natural progression as enterprises transition to skills-based hiring.

Engaging Candidates

One of the tenets of Future of Work is engagement, beginning at the candidate stage. Not surprisingly, chatbots can engage with candidates throughout the recruitment process by answering their questions, providing updates on the status of their application, and offering personalized support. According to HybridChat, a chatbot solution provider, 74% of job seekers stall in the application process. Chatbots can engage with the candidate and answer questions that lead to a completed application. This all contributes to improving the candidate experience and increases the likelihood of a successful hire.

While this only touches the surface of the capabilities of chatbots, such AI technology can play a valuable role in direct sourcing processes helping HR, recruiters, and managers automate time-consuming tasks, improve candidate engagement, and ultimately identify the best candidates for a given position. Recruitment automation using AI and machine learning will only increase with time. What this means is the potential for more enterprises to adopt direct sourcing strategies to leverage the technology and the efficiencies that come with it. With digital transformations leading many organizational objectives, the integration of automated recruiting tools like chatbots and other AI applications brings value add to workforce strategies.

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How Does Direct Sourcing Fit Into Today’s Talent-Driven Environment?

Direct SourcingTalentTalent Acquisition by Christopher J. Dwyer on

Over the past three years, the talent acquisition landscape has undergone a significant transformation, largely driven by the global pandemic. In the face of economic uncertainty and unprecedented challenges, organizations have realized that attracting and deploying top talent is no longer just an advantage but a critical necessity. As we navigate this new era, the ability to foster innovation, creativity, and drive has become essential to survival and success. It is abundantly clear that the post-pandemic world will reward those who can attract and retain the best talent.

To thrive in the competitive and uncertain labor market, businesses must do whatever it takes to stay ahead of the game. This means expanding their talent pipelines, improving hiring strategies, and scaling talent acquisition in ways that benefit the organization in the long term. While direct sourcing is not a new strategy, it has gained popularity due to its alignment with the direction of the world of work and talent.

Direct sourcing allows organizations to leverage an internally-led, internally-developed “recruitment agency” that removes third-party staffing suppliers. This enhances the overall control of talent engagement in terms of both quality and spend, while also ensuring consistency in branding, communication, and culture across all departments involved in talent attraction. As a result, direct sourcing has evolved from a novel idea in 2019 to a proven strategy that allows businesses to align their core initiatives with available skillsets and maximize the overall impact and value of their talent community.

While basic direct sourcing programs can generate tangible benefits, such as cost reductions and talent pipeline expansion, the stakes are much higher than that. Strategic approaches to direct sourcing have evolved significantly since the concept’s rapid rise a few years ago. In 2023, direct sourcing is no longer just the sum of its parts. Instead, it represents a near-perfect alignment with the direction of business today and in the foreseeable future. The labor market remains unsettled, and economic uncertainty continues to prevail. Businesses are engaged in a fierce battle for talent as unemployment reaches historic lows, and millions of job openings go unfilled.

Moreover, the Future of Work movement and its resulting transformations actively call for businesses to shift their hiring strategies. These factors together represent both a new challenge and a new opportunity for direct sourcing: to help enterprises cultivate a flexible and scalable workforce that drives true talent sustainability.

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Talent Sustainability Through Direct Sourcing

Business LeadershipDirect SourcingDiversity and InclusionGeneral InsightsTalent by John Yuva on

In 2023, direct sourcing is more than the sum of its parts; rather, it represents near alignment with the direction of business now and in the relative future. The labor market is still unsettled, while economic uncertainty (unfortunately) still rules the day. Businesses are in a continued war for talent, as unemployment sinks to historic lows and millions of job openings remain.

In addition, the Future of Work movement and resulting transformations actively dictate that businesses shift their hiring strategies. All of these facets together represent both a new challenge and a new opportunity for direct sourcing: helping enterprises cultivate a flexible and scalable workforce that drives true talent sustainability.

Direct Sourcing Evolves

Enterprises need sustainable talent most to remain competitive and enable future agility. Direct sourcing can help enterprises achieve talent sustainability through several means.

Tapping the Pipeline

First and foremost, it’s about building a talent pipeline of potential candidates, which can be tapped into immediately. By cultivating a talent pipeline, enterprises can proactively source and develop talent, avoiding circumstances where critical roles are vacant for long periods. Often, organizations struggle to implement adequate succession plans. Direct sourcing can help make succession planning a reality — a critical component of a sustainable talent strategy.

Linking Diversity to Innovation

A flexible workforce is not just associated with work models but culture as well. Fostering a diverse and inclusive workforce through direct sourcing opens the door to varying perspectives on enterprise challenges. Contingent and permanent job candidates view flexibility as a means to encourage diversity, equity, and inclusion — a driver for talent retention and enterprise innovation. Diversity-focused organizations, networks, and forums are channels for direct sourcing engagement. And by sourcing talent from diverse channels, enterprises can build a more inclusive and diverse workforce that better reflects the communities in which they operate.

Building a Talent Community

One of the biggest challenges with direct sourcing is building a pipeline of quality candidates. What is the solution? Organizations must transform their engagement efforts by leveraging the very strength of direct sourcing itself — building relationships through intentional and strategic talent outreach. Engaging with talent directly helps to build relationships with candidates and to foster a sense of connection with the organization. This can lead to higher retention rates and a more immersed and committed workforce.

In some cases, HR and business leaders must cultivate relationships over a longer period. This is where talent communities can benefit. A talent community is a group of individuals who have expressed interest in working for a particular company or in a particular industry. Talent communities can take many forms, from LinkedIn groups to online forums. At their core, talent communities provide a platform for organizations to connect with candidates and nurture relationships over time. They are also ideal for expanding the employer brand to a wider audience and communicating the organizational culture — both leading to attracting top talent and creating a competitive differentiator for the enterprise.

Direct sourcing is not simply a portal for attracting potential job candidates. Instead, it’s a strategic imperative that is paramount to enterprise talent sustainability. And with sustainability comes organizational agility, flexibility, and resiliency — all of which enable an enterprise to thrive in a volatile marketplace.

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The Link Between Direct Sourcing and Talent Sustainability

Direct SourcingTalent by Christopher J. Dwyer on

In just a few weeks, Ardent Partners and the Future of Work Exchange will publish their Direct Sourcing 2023: Scalable Processes, Sustainable Talent research report. “Talent sustainability” is a key focal area not only for direct sourcing strategies, but greater talent acquisition initiatives, as well. Let’s revisit a critical piece from 2022 on the link between these talent-driven programs.

Many HR, talent acquisition, and contingent workforce program leaders overlook particular phases of direct sourcing, especially talent curation and segmentation, since they have been conditioned to manage their processes within the confines of a traditional contingent workforce management (CWM) initiative that follows more procurement-oriented procedures (i.e., supply management, heavy cost focus, etc.). Even under a centralized CWM program, the most critical direct sourcing strategies and capabilities require more time, focus, and resources than what is typically available with non-employee workforce management.

For example, talent curation is a critical piece to the direct sourcing puzzle and is considered crucial to the entire hierarchy of the process. In a direct sourcing program, recruiting expertise (via an MSP, talent curation partner, etc.) curates talent for the business, ultimately helping its client build a deep talent cloud or community using a series of augmented approaches, including branded job portals, targeted ads and recruitment marketing campaigns, and artificial intelligence-led candidate matching. The solution that is leading the direct sourcing program can also leverage the organization’s brand power to attract potential candidates, as well.

While some enterprises maintain deep pools of talent that are more “general” in scope, these may not be effective from an agile workforce perspective. Organizations typically overlook talent pool segmentation and maintain a single repository of talent pool candidates; this failure to segment is a missed opportunity to build a nimbler approach to finding candidates based on geography, skillset, role, etc. Talent pool segmentation enables enterprises to better “organize” their candidates for easier, faster, and better alignment with future requirements, as well.

A typical first step in talent community segmentation is to conduct due diligence around candidate skillsets, past work history, compensation, proficiency, and overall enterprise hiring alignment. Segmentation is what allows a business to be more dynamic in how it addresses its talent needs. It also answers many current sourcing challenges while fostering relationships with candidates with emerging and new skillsets or expertise.

By spending more time in the initial phases of direct sourcing (and, subsequently, executing consistent maintenance of internal talent communities/pools), businesses are able to build a more seamless bridge to “talent sustainability,” which the Future of Work Exchange defines as a by-product of leveraging workforce solutions (such as extended workforce technology, VMS, etc.), direct sourcing channels, and both private and public talent communities, etc. to build self-sustaining outlets of talent that 1) map to evolving skills requirements across the enterprise given product development and the progression of the greater organization, 2) reflect existing expertise and skillsets across the enterprise that can be leveraged for real-time utilization, and, 3) allow hiring managers and other talent-led executives to leverage nurture and candidate experience strategies to ensure that all networked workers are amiable and open to reengagement for new and/or continued projects and initiatives.

The Great Resignation has become more volatile, and with its wide-sweeping ramifications playing critical roles in how enterprises structure their workforce in the second half of the year, it is crucial that strategies such as direct sourcing contribute to overall talent scalability. Leveraging the power of direct sourcing’s key elements (and associated technology) can assist businesses in maximizing the positive elements of the “Talent Revolution” and parlay them into means of attracting the best-fit, highest-quality talent. Talent sustainability will be the way businesses thrive in the near future…and direct sourcing is a direct link to get them there.

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The Recession-Ready Enterprise

Business LeadershipContingent WorkforceDirect SourcingGeneral InsightsTalent AcquisitionTechnology and Innovation by Christopher J. Dwyer on

There has been great debate in recent months about a recession. Are we already in a recession? If a recession occurs, will it be light or something more impactful? Or will the economy be resilient and avoid a recession entirely? Enterprises in technology and media industries are already reacting to recession fears by laying off tens of thousands of workers. As we move further into 2023, how could a recession impact the extended workforce?

Business As Usual

There’s no doubt we’re experiencing challenging economic times. However, businesses must continue with mission-critical projects and initiatives that often require specialized expertise. The skills gap remains inherent in many enterprises, leading to continued demand for contingent workers. And as the Future of Work Exchange research indicates, 47.5% of the enterprise workforce is comprised of extended workers. That figure cannot be ignored, especially during times of economic distress.

Digitization Evolution and Workforce Mercenaries

Despite the recessionary climate, there is an enterprise evolution occurring: digitization. Whether it’s talent acquisition platforms, accounts payable solutions, or larger enterprise resource planning systems, businesses are transforming from tactical (manual) to strategic (digital) strategies across the operational landscape. And with digitization comes the extended workforce.

As more enterprises pursue digitization, mission-critical hyper-specific skillsets and expertise are not only preferred but required. Transforming into the digital era means companies are implementing new technologies that leverage artificial intelligence, machine learning, blockchain, and other Industry 4.0 automation. Enterprise integration of these technologies requires specific skill sets and competencies that are often outside the capabilities of existing permanent employees.

Hiring full-time employees for digitization projects and initiatives does not make fiscal sense (particularly during a recession) unless the role is a data analyst or scientist critical to interpreting daily analytical outputs. Otherwise, contingent workers specializing in digital transformation integration and implementation are the ideal choices — aligning contractual agreements with workforce budgets. Hyper-skilled talent is the future for enterprises expanding their product and service offerings through automation.

Supply chain and procurement are fields that employ hyper-skilled talent. Enterprises will hire a chief procurement officer to transform the procurement department through digitization and eliminate manual processes. A timeline may last two years, but once the project is complete, the individual seeks out other organizations with transformation as a critical initiative. These types of workforce mercenaries are much more abundant today than a decade ago. Their sole purpose is the execution of strategically detailed operational initiatives to elevate the enterprise competitively before taking on a new assignment elsewhere.

Sourcing such talent is already available to many organizations through workforce platforms and processes.

The Recession-Ready Enterprise

Direct sourcing and talent marketplaces are now table stakes for enterprise competitiveness. The use of these channels is necessary to source extended workers and hyper-skilled talent with current, specialized competencies. Recent Future of Work Exchange research found that 82% of businesses utilized more extended talent in 2022 than in 2021. During a recession, organizations can specify specific hours for extended workers who are already accustomed to flexible schedules or defined project timelines.

The workforce mercenary is likely to find an abundance of opportunities in a recession with 73% of businesses planning to divert external talent to mission-critical type initiatives and projects over the next six months. This is a clear sign that organizations are taking a more proactive stance against a possible recession than in the past. It appears quite possible that talent acquisition strategies will also shift during a recessionary period as the extended workforce closes critical skill gaps.

Enterprises with the ability to scale their extended workforce before, during, and after a recession are best positioned to weather an economic downturn. Seek workforce mercenaries for those transformational initiatives, while leveraging external talent for skills gap challenges. It’s a critical balance, but one that separates the modern enterprise from those still operating at a tactical level.

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