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Direct Sourcing

The Talent Supply Chain Is Evolving…It’s Time to Rethink How We Approach It

Contingent WorkforceDirect SourcingEventsTalentTalent Acquisition by Christopher J. Dwyer on

Earlier this month, I had the pleasure of joining Prosperix‘s CEO, Sunil Bagai, and Defiant Solutions’ Bryan Pena for a spirited discussion on the evolution of the talent supply chain. Everything You Know About The Talent Supply Chain Is Wrong featured some new Ardent Partners and Future of Work Exchange research, as well as a high-energy roundtable chat focused on how businesses can balance the power of today’s progressive labor market with the proper strategies for thriving in the months ahead.

If you missed the live event, we have you covered. Check out an on-demand edition below.

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What WorkLLama’s $50M Funding Means for the Direct Sourcing Arena

Direct SourcingSolution ProvidersTalent AcquisitionTechnology and Innovation by Christopher J. Dwyer on

Direct sourcing dominates many of the talent-oriented discussions in our wonderful industry today more so than ever before. Heading into the months before the pandemic began, Ardent Partners and Future of Work Exchange research found that direct sourcing strategies and talent pool development were the top two priorities heading into 2020.

The omniscience of those findings was on point: for the first 18 months or so of the pandemic, direct sourcing exploded due to its ability to drive real workforce scalability (in a time when it was needed most) and improve the candidate and hiring manager experiences. Now that the pandemic is waning and entering an endemic state, direct sourcing is still as vital as ever to businesses that focus on candidate centricity and a talent-led approach to workforce engagement.

Last week, WorkLLama, one of the industry’s leading direct sourcing technology platforms, announced that it had secured $50 million in funding (organized and facilitated by Fairpoint Partners). Now, funding in HR tech is not a rare event, however, within the direct sourcing space, this represents so much more than an innovative solution garnering significant funding.

WorkLLama’s suite of technology does not just fall under the greater “direct sourcing” banner, but rather reflects the “Direct Sourcing 2.0” model that Ardent Partners and the Future of Work Exchange pioneered 18 months ago to reflect the next generation of innovation that has contributed to the future of the direct sourcing technology industry.

“I’ve been lucky to have been involved first-hand since direct sourcing was introduced to the market many years ago,” said Kevin Poll, WorkLLama’s SVP of Strategy and Business Development. “Fast forward to today and seeing the market demand for next-gen direct sourcing technology, it’s exciting and validates the market opportunity and the belief in our innovation and growth. Not only will we help all talent connect to meaningful work, but I’m also personally looking forward to how this investment will allow us to continue advancing the platform to help underrepresented communities.”

WorkLLama has become a leading direct sourcing platform not just because of their overall commitment to the arena, which has been apparent since they entered the enterprise market back in 2016, but rather because the company has leveraged progressive thinking to fuel a new era of direct sourcing, ATS, and end-to-end talent management functionality. The WorkLLama platform, including its unique Sofi bot, offers users with advanced functionality, artificial intelligence, access to superior talent, an enhanced candidate experience, and the enablement of repeatable and scalable direct sourcing processes all contribute to a more advanced direct sourcing program.

“WorkLLama was established in 2016 to solve long-standing challenges within the talent attraction, engagement, nurturing, and retention space,” said Saleem Khaja, COO and co-founder. “Since our inception, we’ve led with the most robust, client-centric, and configurable solution available, with a central mission to provide the highest-level consumer-like experience to talent. This funding is an important milestone in our journey to enable both organizations and talent to become even more successful.”

The massive level of funding here speaks volumes about the direct sourcing technology industry for several reasons:

  • Direct sourcing has moved beyond the “peripheral platform” spectrum within the talent technology ecosystem. Just a few years ago, direct sourcing solutions were considered peripheral technology; that is, platforms that contributed to extended workforce management and talent acquisition without the standing of Vendor Management Systems and HRIS solutions. Today, that has changed. WorkLLama’s funding is a direct reflection of the criticality of these platforms in driving better candidate outcomes and optimizing talent engagement and recruitment.
  • Artificial intelligence is now table-stakes for any technology in the workforce solutions market. One of WorkLLama’s leading-edge innovations is the application of AI and machine learning throughout the platform, which shines in its candidate nurture functionality and particularly its Sofi conversational bot. Sofi harnesses the power of AI to automate and facilitate candidate communication and engagement; the WorkLLama platform also leverages AI to catalyze digital recruitment and referral management, two attributes of direct sourcing that are crucial for programmatic success.
  • The candidate experience and the hiring manager experience are paramount. One of the more interesting developments in the direct sourcing technology arena is the commitment to and focus on “experience-led” aspects of talent acquisition. With a volatile labor market, the candidate experience is, of course, critical (something that WorkLLama achieves through its deep nurture and engagement functionality). What has also become important, however, is the hiring manager experience by arming these professionals (and other talent acquisition leaders) with robust offerings that can facilitate skills assessment, develop deep talent communities, and streamline talent engagement and hiring.

“CEO, CHRO, and CPO leaders face unprecedented challenges as they evaluate new workforce strategies to find and engage talent in today’s market,” said WorkLLama’s CEO and co-founder, Sudhakar Maruvada. “WorkLLama’s growth, especially in direct sourcing, shows that these leaders are invested in innovative solutions to keep up with the changing landscape of work and workers. This investment will allow us to continue to build on our key differentiators and mission of treating candidates like customers.”

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The Top Talent Challenges of 2023 (So Far)

Business LeadershipContingent WorkforceDirect SourcingTalentTalent Acquisition by Christopher J. Dwyer on

The business arena is shrouded in disruption and uncertainty, given the volatility of the labor market, supply chain risks, and economic challenges that are plaguing a variety of industries across the globe. With talent as the modern enterprise’s top competitive differentiator, it is no wonder that these external factors are placing pressure on talent-specific operations within the average organization, particularly workforce oversight, extended and contingent workforce management, skills analysis, talent engagement, talent acquisition, services procurement, etc.

In another exclusive Future of Work Exchange infographic, we highlight some brand new Ardent Partners research and unveil the top talent-oriented challenges for businesses (thus far) in 2023.

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Five Reasons Why Direct Sourcing Can Supercharge Hiring

Direct SourcingTalent by Christopher J. Dwyer on

The Future of Work Exchange has long discussed the value, impact, and power of direct sourcing. Over the past three years, direct sourcing has dominated discussions across the world of talent and work, and rightfully so: Direct sourcing represents a dynamic entry-point to talent sustainability. Considering its impact on the candidate experience (transforming how workers engage with potential employers), referral management (automated, mobile-optimized referrals), and talent community development (boosting talent curation and progressing into a new stratosphere of on-demand talent pools), direct sourcing is a robust strategy to developing real workforce scalability…and talent sustainability.

Today, we are excited to present an exclusive infographic, Five Reasons Why Direct Sourcing Can Supercharge Hiring.

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Skills-Based Is the New Workforce Frontier

Business LeadershipDirect SourcingGeneral InsightsHRTalent AcquisitionTechnology and InnovationUncategorized by John Yuva on

We have recently talked about gamification and digital credentials as strategies for greater employee engagement, collaboration, and skills development. As enterprises re-engineer their workforce architectures toward a skills-based organization, these strategies will play a critical role in that initiative.

Why is skills-based the next workforce frontier? Simply put, traditional, antiquated job description-defined roles are ineffective in today’s volatile business landscape. Enterprises require agility and flexibility to respond appropriately to operational and market changes. A skills-based workforce architecture supports that requirement by aligning employee skills with project-focused initiatives. Deploying employees with specific skill sets to solve problems and ensure business continuity is a Future of Work vision.

Purpose of Work Redefined

With a nimble and responsive workforce, enterprises can leverage their talent using a more holistic approach while generating a greater sense of work purpose for employees. According to an article in Training magazine, “Skills-based organizations have a more agile and employee-centric approach to work where employees are valued for their skills rather than their job title, level, or educational qualifications.”

“It is a new operating model of work where employees are matched to tasks and projects based on skills, capabilities, and interests. Focusing on skill sets instead of job experience can help organizations optimize their talent pool.”

However, the success of this workforce model depends heavily on the ability to define work within the enterprise. What is the work that can ultimately provide a competitive advantage in the marketplace? Where in the organization does the most critical work reside? What skillsets and capabilities are most valued to accomplish the work required? How does the enterprise capture, structure, and utilize skillset data?

The critical answers to these questions are all part of the foundation of a skills-based structure.

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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.

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A Time for Workforce Management Innovation

Direct SourcingSolution ProvidersTalent AcquisitionTechnology and Innovation by Christopher J. Dwyer on

Humans are what drive the Future of Work today. What it all comes down to, in essence, is that a business relies on its people to get work done, to survive, and to thrive. The workforce has undergone some seismic shifts over the past several years, from the rise of the extended workforce to non-employee talent becoming a source of real enterprise agility.

Ardent Partners and Future of Work Exchange research has discovered that 82% of businesses leveraged more contingent workers and sources of external talent in 2022 than in 2021, a powerful statistic that represents the relative power of the extended workforce, its overall value, and its impact on enterprise operations.

Considering that the specter of an economic recession lingers, as well as Year Four of the Pandemic That Will Not End, this means that now, more than ever before, businesses will require Best-in-Class strategies and solutions for engaging the best-fit, best-aligned talent, and, of course, managing it in a frictionless way.

What this means, of course, is that the workforce solutions market is what will set the tone for enterprises as they reimagine their outlook for 2023 and ensure that talent-fueled agility is the foundation for success in the year ahead.

The great news, though, is that this technology industry is abound with innovation. Heavyweight platforms like Beeline bring cutting-edge workforce management functionality and a talent-centric focus that will assist enterprises in achieving true total workforce management, while solutions such as Magnit seamlessly connect top-tier direct sourcing, services procurement, total talent intelligence, and VMS technology under a frictionless platform approach. SAP Fieldglass continues to innovate around its idyllic blend of VMS, services procurement, and candidate management functionality, all of which are built on a foundation of high-powered analytics and intelligence offerings. Prosperix brings a truly unique “VMS network” vision to life through its next-generation solution, and VNDLY (a Workday company) converges procurement-centric solutions with the HR bliss of the Workday suite of technology. Coupa Software’s contingent workforce tool is an exemplary confluence of VMS technology, business spend management automation, and real-time talent visibility.

Technologies like Opptly are redefining talent acquisition via artificial intelligence-fueled functionality and dynamic candidate matching tools. LiveHire represents the convergence of deep direct sourcing, ATS, and CRM technology and real total talent management solutions. WorkLLama is a strong reflection of “Direct Sourcing 2.0,” in which robust, end-to-end workforce management technology catalyzes progressive candidate-focused functionality. HireGenics brings the power of enterprise brand management, “MSP 4.0” innovation to the direct sourcing arena. Worksuite (formerly Shortlist) continues to provide enterprises with an all-in-one, flexible platform that combines the power of VMS, digital staffing, and services procurement. HireArt’s unique approach converges workforce management functionality with forward-thinking talent curation, direct sourcing, and compliance management tools.

The realm of digital staffing is also actively contributing to the workforce innovation arena. Upwork, a giant in the talent marketplace solutions landscape, offers wide-scoping workforce management technology that is built on perhaps the world’s largest talent community. Toptal continues to revolutionize what “workforce agility” means to the modern business by enabling development of fully-scalable teams of top-tier, remote talent. The Mom Project’s continued evolution reflects their commitment to broad-based talent acquisition, streamlined talent engagement operations, and Best-in-Class enterprise technology. Talmix leverages global talent intelligence and next-level automation to revamp the talent acquisition process.

Catalant‘s Expert Marketplace is more than a digital staffing solution, offering 80,000+ experts and freelancers in an enterprise platform that facilitates project-scoping, team management, payments, and compliance and risk management. GR8 People‘s innovative “Everyone Platform” is a stout, end-to-end tool that encompasses the best of recruitment technology, direct sourcing, ATS, and CRM that enables total talent management and a revolutionary candidate experience.

Artificial intelligence and next-level analytics are now front-and-center in the world of workforce management technology. HiredScore is an AI-fueled platform with “talent orchestration” technology that is perfectly-aligned with the evolving world of work’s need for real-time talent intelligence. Glider.ai continues to revolutionize candidate intelligence through assessment, interviewing, and engagement innovation.

With talent as the very nexus of the contemporary enterprise in 2023 and a linchpin to true business and workforce agility, organizations have access to the dynamic solutions that can transform talent acquisition, reimagine talent engagement, and spark next-generation workforce management.

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Revisiting the Blueprint for Direct Sourcing Success

Direct Sourcing by Christopher J. Dwyer on

Over the past few years, direct sourcing has emerged as perhaps the hottest talent-led strategy in the world of both talent acquisition and contingent workforce management. In pre-pandemic times, businesses understood that expanding their talent engagement efforts on building internal talent communities (via enterprise-led “agencies” that eschewed middle entities like staffing suppliers) was a powerful way to infuse new skillsets into the greater organization. During the pandemic, direct sourcing served as a robust means of keeping candidates engaged during uncertain times and augmenting workforce scalability. Today, direct sourcing represents the very future of talent acquisition.

With an ever-increasing number of talent channels, including digital staffing marketplaces, traditional staffing vendors, professional services, talent networks, and social media platforms, the ability to match project requirements with available skillsets has never been easier. However, it has also never been more competitive or difficult.  Businesses that harness the power of direct sourcing and talent pools have the ability to develop an agile workforce which can be the key differentiator needed to advance and grow in a marketplace that rewards dynamic, talent-led responses to new business pressures and challenges…especially what could be ahead as 2023 unfolds.

With so many organizations yet to undertake this journey, it is imperative to revisit these guidelines for direct sourcing success:

  • A deep understanding of total enterprise skillsets is required. No matter the industry, each organization is comprised of a collection of skillsets that, in aggregate, contribute to how work is done. Direct sourcing programs thrive on “skillset intelligence;” without it, initiatives lose their flair. If hiring managers understand which skillsets are in abundance or in high demand and which will be needed in the near future, building initial talent attraction strategies will be much more effective.
  • Integrated procurement, HR, and talent acquisition competencies are necessary for early-stage direct sourcing. The capabilities of these three units are required for a direct sourcing program to succeed: 1) procurement’s influence will drive hard cost savings through talent channel optimization, 2) HR’s impact will guide hiring managers and stakeholders to engage the strongest candidates, and 3) talent acquisition will drive the strategic vision for how to source talent based upon current and expected needs.
  • Focus on both brand and experience. The employer brand can be powerful in today’s labor market; many candidates want to ensure that they work for organizations that share their cultural and societal values. Also, the omnipresent notion of the “candidate experience” should guide direct sourcing processes such that job recruits experience a positive journey no matter if they are merely sitting in a talent pool or actively engaged for an open position or project.
  • Segmentation is more valuable than it initially seems. Segmenting talent pools may seem like a basic strategy; however, it can pay incredible dividends. Talent pool segmentation, be it via geography, compensation, skill, remote or in-person, certification, etc., allows hiring managers to quickly focus in on the talent required for a highly-complex project or initiative. Taking the time during the front-end of the direct sourcing process to segment talent pools can be hugely impactful to the overall program.
  • In direct sourcing, selecting and utilizing the right solutions is job one. The inherent power of today’s contingent workforce, human capital, and digital staffing solutions provides enterprises with the ability to automate crucial aspects of talent pool development and integrate these sources into the business’ broader talent acquisition processes. MSP solutions, VMS technology, and direct sourcing platforms all contribute to create a human- and technology-led direct sourcing program, helping to launch the initiative and ensure that all hiring managers have the ability to quickly access available talent pools.
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The Recession-Ready Enterprise

Business LeadershipContingent WorkforceDirect SourcingGeneral InsightsTalent AcquisitionTechnology and Innovation by John Yuva 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 through the first quarter of 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.

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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BEST OF 2022: The Link Between Direct Sourcing and Talent Sustainability

Direct SourcingTalent by Christopher J. Dwyer on

[The Future of Work Exchange will be back next week with all-new content and insights to kick off the new year. Until then, enjoy our “Best Of” series that revisits some of our most-read articles from 2022.]

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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Future of Work Predictions for 2023 (Part IV)

Business LeadershipDirect SourcingGeneral InsightsTechnology and Innovation by Christopher J. Dwyer on

Welcome to an exclusive series here at the Future of Work Exchange that will feature predictions, insights, and trends for 2023 that will shape the Future of Work in the months ahead. We polled technology and solution provider executives and asked them how they believe the world of work and talent will continue to evolve in 2023 and beyond:

Christy Forest, CEO and Executive Director, LiveHire

“It’s the greatest talent reshuffle in recent history and it isn’t over yet. Companies will respond to the fierce competition for talent alongside their looming concerns of recession with one critical capability: agility. We will see a very welcome shift…from what was a lot of talk and not a lot of action, a lot of dabbling and not enough commitment to finally creating a truly agile approach to optimize the mix of permanent and contingent workers to meet fluid business needs. This requires internal collaboration and a mindset shift but it will happen because…

We will see more and more power in the hands of candidates and employees, a higher bar set by them for transparency and experience, and only the best companies will earn their engagement and their time. So the most progressive companies will take more ownership of their brand, start their journeys in earnest to direct sourcing programs and total workforce management solutions that enable them to meet the market where it is and move ahead of the competition.”

Pam Cohen, Chief Research and Analytics Officer, Werklabs/The Mom Project

“The Future of Work is fluid; success will depend on an intricate alliance between employers and talent that embraces life outside of work and allows for the existence of both woven into each day. From this, employers will find enhanced loyalty and retention of all types of workers, and talent will find the opportunity to grow within their jobs without feeling the need to leave in order to experience other aspects of their life.”

Nancy Miller, , Atrium

“Lines will start to blur in types of work just like lines have blurred in categories of HR tech for temporary/independent talent markets. Workers want to do work that excites them and where they can add value…they want to leave a mark. Technologies should make it easy for those workers to find this work regardless of what labor category it “places” them in, i.e., temporary worker, contractor, independent contractor, full-time employee, flexible talent, etc. Another trend I predict is that talent acquisition platforms are expanding to be more versatile regarding the labor categories they cater to. In example, platforms originally built for direct hire/perm placements will continue to productize and launch modules for contract work. Vice versa – we are seeing many platforms built for contract hiring to now also offer direct hire recruiting solutions. HR tech as a whole will move toward omni-channel solutions to engage people through all channels.”

Morten Bruun, Managing Director, North America, Worksome

“The push for a more agile workforce will drastically expand in 2023. We’re coming on the back off a large number of layoffs in the tech industry. Any technology will say a) innovation is the key for their success, and b) people are what create innovation. This leaves you in a dilemma: How can I continue to innovate in an environment where we’re reducing headcount growth? You essentially want to make sure that you have an agile workforce that you quickly can scale up and down and move to the areas where you need innovation the most.

The Great Resignation, Great Reshuffling, quiet quitting, and some of the other 2022 trends we’ve been seeing—will those stick around? I actually don’t think it matters whether they will continue or not. The interesting aspect of the Great Resignation is not that a bunch of people quit their job; the interesting aspect is why they quit their job. People are sick and tired of a traditional working model with no flexibility, that’s why they quit. It’s not unlikely that we won’t see the same volume of people quitting their job during a recession, but it’s important to realize that the sentiment isn’t gone. The sickness is still there, even though the symptoms are gone.

It’s abundantly clear that legacy tech in the workplace/people space isn’t solving the problem for companies. This is particularly true in the contingent workforce space. Around 90% of large enterprises have a VMS in place, but more than 50% of them are citing the lack of efficiency in their contingent workforce program as their #1 challenge.”

Connor Heaney, Managing Director, CXC Global EMEA

My predictions for the Future of Work are:

  • An increased interest in Africa as a remote talent pool to combat talent scarcity in Western economies.
  • As organizations seek to solve the talent supply issue, they will start to become more willing to employ and engage workers from different backgrounds: non-university educated, disabled, neurodiverse, veterans, and folks with minor criminal records.
  • Increased regulation in the Gig and Open Talent Economy as a result of the EU directive on platform workers. This has the potential to be hugely disruptive to the sector.”

Marlon Rosenzweig, CEO and Co-Founder, WorkGenius

“We expect 2023 to be a year of growth for freelance even if the economy shrinks. Demographic change and lack of immigration built up a talent shortage that will persist. “

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