General Insights Archives - The Future of Work Exchange

Upwork Survey Identifies Fastest-Growing Skills

Business Leadership Contingent Workforce General Insights Solution Providers Talent Technology and Innovation by John Yuva on 03/28/2024

The world of work is rapidly evolving as technologies like artificial intelligence (AI) shift how work gets done. Enterprises are turning to AI for transformative workplace results, leading to increases in upskilling and technology adoption within the contingent and permanent workforce. This opens the door for freelancers and contractors who meet the skills demand from organizations to leverage new technology for greater efficiencies and substantial insights.

Growth in Data Science & Analytics Category

What skills are needed now and in the future? Upwork, the world’s work marketplace connecting businesses with independent talent, released its report “In-Demand Skills 2024” highlighting the critical skills workers need across a variety of categories. The report revealed that Data Science & Analytics is one of the fastest-growing work categories as generative AI modeling and machine learning produce strong demand from businesses. Upwork revealed that the AI and machine learning subcategory on the company’s platform saw 70% year-over-year growth in the fourth quarter of 2023, as clients and independent professionals collaborate on today’s most cutting-edge projects.

The Upwork report identified several fastest-growing work categories and skill sets where contingent labor can deliver the greatest value. As the examples below illustrate, artificial intelligence and automation in general are heavily sought after for 2024 and beyond.

Data Science & Analytics — Top 3 Fastest-Growing Skills: Generative AI Modeling, Machine Learning, Data Analytics
Coding & Web Development — Top 3 Fastest-Growing Skills: Scripting & Automation, Database Development, and Web Design
Sales & Marketing — Top 3 Fastest-Growing Skills: Marketing Automation, Sales & Business Development, Email Marketing.

This year’s “In-Demand Skills” report noted several new skills emerging in the top 10, including medical and executive virtual assistance, as well as development & IT project management and digital marketing campaign management.

Skills-Based Hiring in the Age of Emerging Tech

With the demand for specific skills, organizations are turning more toward skills-based hiring to meet their workforce needs. According to Kelly Monahan, managing director of the Upwork Research Institute, “Every company is vying for the best talent and there remains huge demand for a broad range of skills across the Upwork marketplace as businesses big and small are finding solutions in the growing reservoir of skilled independent professionals,” she said.

“In 2024, emergent technologies like generative AI are having a major impact on the skills-based economy. Of course, business demand for these types of skills is increasing, but we’re also seeing a complementary impact, whereby AI technology is driving greater demand for all types of work across our marketplace,” Monahan added.

Growing Demand for AI Expertise

Monahan’s comments also align with the current influence of AI on the workforce. According to a report released by the International Monetary Fund (IMF) entitled, “Gen-AI: Artificial Intelligence and the Future of Work,” nearly 40 percent of global employment is exposed to AI. As more solution providers integrate artificial intelligence into their offerings, that percentage is likely to increase. Enterprises are turning to AI to streamline business processes and automate tactical tasks that provide workers with more time for strategic planning.

This is good news for freelancers and contractors upskilling or with existing expertise in artificial intelligence, machine learning, and data analytics. According to Jacqueline DeStefano-Tangorra, an AI consultant on Upwork, “As technology rapidly changes and more specific expertise is needed, more and more businesses are coming to Upwork to find the solutions they need,” she said.

“Consequently, the demand for my skill set has never been higher. Upskilling and becoming an AI professional on Upwork has opened many doors. I get to work on interesting projects and I am a stronger partner for my clients as I’m more efficient, productive, and can deliver better outcomes,” DeStefano-Tangorra added.

Employee Experience and the Power of Engagement

Business Leadership Diversity and Inclusion General Insights HR Talent by John Yuva on 02/29/2024

One business constant over the last four years is uncertainty. Whether it’s the economy, geopolitics, or the overall market, enterprises must contend with that sense of the unknown. As such, having a flexible and agile workforce is essential when market dynamics shift. Flexibility and agility often derive from employee experience (EX) initiatives. Organizations that prioritize employee experience are more internally aligned and can better pivot when needs arise.

However, essential to employee experience is understanding that it goes beyond employee satisfaction. Rather, it is a strategic imperative that directly influences organizational culture, success, and the ability to navigate an ever-changing business landscape.

Employee Experience Begins and Ends with Engagement

A core element of employee experience is engagement — with a lack of engagement consequential to an enterprise. For leading organizations, engagement begins in the recruitment/hiring phase where an emphasis on desired skillsets and cultural alignment contributes to talent retention; engagement is then prioritized through the last day of employment with workers serving as enterprise ambassadors in their next opportunity.

What are the consequences of low employee engagement? According to an article by Jim Harter, Ph.D., Chief Scientist, Workplace for Gallup, a 2023 survey of U.S. employee engagement of full- and part-time employees showed a 1% decline between mid-year (34%) and end-of-year (33%). This reflects an overall contraction of 3% compared to the annual high of 36% in 2000 when Gallup first began reporting U.S. employee engagement statistics.

A 1% mid-year decline and a 3% overall-high decrease may seem minuscule, but Harter points out the significance. “Each percentage point gain or drop in engagement represents approximately 1.6 million full- or part-time employees in the U.S.,” he writes. “Trends in employee engagement are significant because they are linked to many performance outcomes in organizations. Not engaged or actively disengaged employees account for approximately $1.9 trillion in lost productivity nationally.”

The bigger observation from the Gallup survey is that nearly 70% of organizations are not actively engaging with workers. This presents an even bigger challenge for their talent retention, productivity, and market competitiveness efforts.

A Thriving Employee Experience

Employee experience begins with a culture shift — one with an intentional and sustainable foundation. It is not a finite strategy, but rather an evolving enterprise mission. Today’s Future of Work paradigm encompasses many elements that contribute to a successful employee experience approach. The following are EX areas that can have the greatest benefit to an organization’s success, productivity, and overall well-being.

Remote and hybrid flexibility. Here at FOWX, we’ve talked extensively about remote and hybrid work. Since the pandemic, the flexibility to work remotely has become one of the biggest EX benefits. Many organizations made remote/hybrid work models a permanent choice for employees. However, over the last year, several of these same enterprises pulled back on remote work and implemented return-to-office mandates. The employee response was swift in some cases, with workers publicly protesting these decisions. Studies have shown that productivity increases with remote/hybrid work models and leads to improved employee well-being. Organizations should focus on providing tools that foster virtual team-building activities and creating policies that support work-life balance.

Employee empowerment. When workers are empowered to perform their jobs and advance their skillsets, it instills a sense of trust and greater employee satisfaction. As more organizations pursue digital transformation, they introduce new workflow technologies and platforms. These technology investments are to streamline processes, enhance productivity, and enable global collaboration. To thrive in this evolving digital environment, business leaders should empower workers with continuous learning opportunities, such as right-skilling, upskilling, and other training programs. This “people” investment contributes to a more positive and productive employee experience.

DE&I focus and promotion. Despite growing criticism and legislation surrounding diversity, equity, and inclusion (DE&I) initiatives, workers continue to value enterprises that actively promote DE&I and implement policies and programs to address existing gaps. Younger generations in particular expect organizations to align with societal expectations through the integration of diverse hiring practices and unconscious bias training. Such programs not only create a workplace where workers feel valued, respected, and recognized but can lead to higher levels of engagement and innovation.

Human-centric culture. When organizations prioritize their employees, the culture reflects this by placing importance on employee mental health and well-being. This generally requires empathetic leadership capable of addressing work-life balance issues that can lead to stress and burnout. A human-centric culture is an employee experience-first workplace, offering remote work opportunities, setting boundaries for work-related issues, providing mental health services and encouraging their use, and fostering a check-in management approach whereby managers meet with team members weekly to evaluate workloads and gauge overall well-being.

Employee experience is a central Future of Work topic that FOWX will continue following. How enterprises approach EX amid growing in-office mandates and DE&I criticisms is yet to be seen. However, there’s little denying that EX is an underlying factor in business success. At the end of the day, employees are the lifeblood of enterprises. How workers perceive their organization and culture is significant to productivity outcomes and overall organizational health. In today’s modern business environment, EX is essential.

DOL Ruling Leaves Uncertainty for Contingent Workers

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

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

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

A Ruling Focused on Guidance

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

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

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

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

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

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

Resounding Opposition Follows Final Ruling

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

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

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

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

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

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

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

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

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

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

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

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

Uncertainties Ahead for Enterprises and the FOW

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

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

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

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

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

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

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

Talent Experts on FOWX — Trends and Strategies in 2024

Business Leadership General Insights Podcast Solution Providers Talent Technology and Innovation Uncategorized by John Yuva on 02/07/2024

Our “Talent Expert Series” on FOWX features podcast excerpts of today’s Future of Work thought leaders who appear on The Future of Work Exchange Podcast. The series continues with an excerpt from Season 7, Episode 14 featuring Jen Torney, Global Vice President of Client Experience and Partnerships for Talent Solution TAPFIN, and Brian Hoffmeyer, SVP of Market Strategies for Beeline, as they discuss talent trends and strategies for 2024.

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

Chris Dwyer: Jen and Brian, thank you so much for joining me today. Before we jump into 2024, what surprised you most about 2023?

Brian Hoffmeyer: Good question. It means you think we’ve been doing this for so long that nothing surprises us anymore. One interesting thing is that Beeline is pushing heavily into what we call the mid-market, which are smaller companies with under a billion in corporate revenue. What’s been surprising and educational are the needs of mid-market companies and how similar they are to larger enterprises we’ve worked with around contingent labor. The mid-market is using more contingent labor and looking to balance cost, quality, and how long it takes to find people. So, there are similarities there. Equally interesting is how the mid-market is looking for this very turnkey, fast-to-deploy, nimble solution. That’s been very educational for everyone.

Jen Torney: Those are great points, Brian. Two things surprised me most. The first was a disappointment. With the legislation we saw in 2023 around affirmative action and the pace of change around diversity, the attention toward it is evolving. Thankfully, there are a lot of champions in the industry making sure there’s still a focus on diversity.

The second was the chaos of the economy and the impact on our clients’ workforces. There were layoffs, then rehiring, then layoffs. It’s never been that unpredictable. It was a lot of change, which shouldn’t be all that surprising with the last couple of years we’ve had. But the unpredictability that happened was interesting.

CD: As we move through 2024, what are your biggest predictions for the year?

BH: We’re going to see real total talent management start to happen and I’m excited about that. I also believe we’re going to see an AI correction if you will, where companies are realizing that the providers they’re relying on are not using AI in the right way and exposing them to risk. And because areas like large language models (LLMs) are growing so quickly in a variety of industries, we can expect some form of regulation put around them. This is already occurring in the EU.

JT: I couldn’t agree more on the AI aspect. There’s a sort of false understanding of what providers are even doing with AI. There’s a lot of hyperbole. In terms of predictions, I’m going to throw my hat in the ring and say there won’t be a recession … but maybe a slow recovery. I may very well be wrong. It might still be a tricky year. I do think there’s going to be more mergers and acquisitions activity. We’re already seeing some acquisitions. In this type of economy, with the 2023 books closed, there will be more acquisitions in the market.

CD: I have dual questions here. Where do both technology and services go in 2024? We’ll begin with Jen and managed services.

JT: I’ll be so bold as to say some of the work we’ve been doing with our partners, Beeline specifically, will begin to converge and intertwine with what we do with our core technology partners. Some of the direction that MSPs are going is becoming more outcome-based focused and less processing management. We have so much expertise to lend and truly believe that organizations are seeking advisory direction and support — particularly on supply and procurement strategy. In addition to recommending a supplier, it’s more about how you are buying and understanding the right strategy to engage and achieve the most value for what you’re trying to drive toward. That’s going to be a big but slow shift.

BH: We’ve started this evolution of who Beeline is because of the new things we have rolling out. We have products that are available to serve parts of the market we have never had before. That will continue. It’s part of what we want to be, which is offering great experiences and products for every persona involved in contingent labor. We’re already doing that with Beeline Professional, our solution for the mid-market, as well as some of the work we’re doing with suppliers that I’m incredibly excited about.

CD: We’ve talked about what surprised us and some 2024 predictions. Let’s close with what each of you would to see most in 2024 — not what you expect to happen — but what you would most like to see.

JT: I have two. The first is I’d like to see Beeline top its 80s party from the CWS Summit. Very much looking forward to that. My real honest answer, and not to sound beauty pageantry, is I’d love to see more world peace. 2023 was a volatile year concerning civil unrest. There’s nothing more I’d like to see than some of that quiet down. I know that’s probably not realistic to see it completely resolved, but that’s my utopian answer.

BH: Challenge accepted for the Beeline party. My answer was going to be similar. The word I’d use is normalcy. We had two-and-a-half years of the pandemic. And 2023 with economic uncertainty, the war in Ukraine for the last few years, and what’s going on in Gaza. We’re now in a year of a political presidential election cycle that’s going to be horrible, no matter what side you’re on. I would just like to see normalcy and civility. I’ve always loved the saying, “moderation in all things, including moderation.”

Adopt the Lifelong Learner Mentality

Business Leadership General Insights Talent by John Yuva on 02/01/2024

The early weeks of the new year are an ideal time to reflect, revise, and rejuvenate. What professional goals do I want to accomplish in the new year? Where am I in my career trajectory? Do I have the skills and knowledge to meet my objectives? These are all relevant and important questions when assessing one’s professional future. However, what if you could keep those questions at the forefront all year, every year, throughout your professional life — with goal assessment and attainment a constant? Adopting a lifelong learning mentality makes professional development a daily driver and career advancement a priority.

Adaptability to Shifting Trends

Lifelong learning is a growing aspect of the Future of Work as shifting workplace trends require greater adaptability. As such, workers are taking more control of reskilling and upskilling efforts to remain ahead of the curve. In fact, according to ManpowerGroup’s 2023 Workplace Trends Report, 57% of employees are pursuing training outside of work.

“What’s important to people is that they have the relevancy of skills that are marketable today as the world of work evolves,” says Nimo Shah, director of MyPath and Experis Academy for ManpowerGroup.

Personal Growth, Employee Retention

Becoming a lifelong learner involves making professional development and discovery an ongoing initiative. It can mean dedicating a portion of the week to reading about new technologies or trends online, joining a networking or professional group, or enrolling in a class or certificate/degree program to learn new skills. Whatever the path, it’s about commitment to personal and professional growth. This can pay dividends when growing one’s professional brand and deeper connections within the enterprise.

An article by Georgia Tech’s Professional Education department, states, “As employees’ expectations change, lifelong learning can play an integral role in helping them integrate more deeply into the workplace. …If companies invest in lifelong learning options and advocate for the personal and professional development of their teams, it could help with employee retention.”

Journey Toward Professional Discovery

Need some guidance on your lifelong learning journey? The following are strategies to incorporate (one or all) into your daily, weekly, or monthly self-development regimen.

Maintain stretch goals. Setting goals and achieving them provides a sense of accomplishment. However, having stretch goals provides direction and motivation to go beyond what is already achieved. Typically, stretch goals are difficult to reach, if not impossible, but having more attainable goals that are related to a stretch goal can result in some unexpected and positive results — as well as innovative thinking. A stretch goal on the lifelong learning path could be to read 50 business books in a year when your annual average is five books. But with certain goals in place, you’re able to read 12 books (one per month).

Utilize learning channels. Whether it’s online or in-person learning, there are several options to reskill, upskill, or pursue a second career. Udemy, for example, has 57 million users and more than 213,000 courses covering a wide range of categories. LinkedIn Learning (formerly Lynda.com) is another excellent e-learning option boasting more than 22,000 courses. If earning a certificate in a specified area of study is your goal, consider a community college. Certificate programs can be completed within months and provide the essential skills for career advancement.

Recalibrate network strategies. How many of us use LinkedIn mostly to approve or make the occasional connection request, browse posts, and tinker with our profile? Commit to recalibrating our networking strategy (particularly on LinkedIn) to really connect. Use the platform to join groups and engage with members. Like posts and leave comments. Reach out to prolific LinkedIn members and subject matter experts to ask questions and initiate dialogue. Attend LinkedIn live events on topics of interest. LinkedIn is populated with tens of thousands of members who are eager to share their knowledge and provide insight into your journey of lifelong learning.

Chase curiosity and wonder. Simply put, if you’re curious about something, find the answer. What is the potential impact of generative AI on my enterprise and its industry? Start researching and reaching out to subject matter experts on LinkedIn to get insights. Lifelong learning is often about chasing the bigger questions and educating yourself while finding the answers. Create a Top 10 list of topics you want to know more about, then three questions under each topic to explore. Prioritize the topics/questions based on your goals and timetable. Lifelong learning is about the journey.

Document the known and unknown. Create a spreadsheet for topics of curiosity and include valuable links to your findings. Individual sheets within a spreadsheet for different topics. Complement the spreadsheet with a journal documenting your thoughts, wins, and losses of lifelong learning. Often, putting pen to paper (or fingers to keys) can lead to unexpected connections and a-ha moments. It’s why going down this path frequently results in innovative thinking and outcomes. Document your progress for a month and see how it feels. You may be surprised how rewarding and motivating it can be to see tangible progress of your goals.

Build a schedule that integrates one or more of these strategies and track short- and long-term progress. Look for a mentor or coach who can provide supportive accountability and insight into growth areas.

Enterprise Support and Reward

While lifelong learning is more of a personal journey for an employee, it doesn’t mean enterprises can’t be active guides. Managers who take an interest and participate in their employees’ professional development can generate growth and career opportunities while gaining benefits as well.

As part of LinkedIn’s Global Talent Trends report, Stephanie Conway, senior director of talent development at LinkedIn, says employees who set clear career goals are more focused on the skills to attain those objectives.

“An important enabler in my experience is a shift away from looking at specific job titles when helping employees consider their next move. Instead, it is more effective to identify specific skills they want to develop and experiences that might help them do that,” Conway says.

“A first step is to show employees what career development at your company looks like – through any number of programs, like job shadowing, rotations, or sharing internal-mobility stories. This can both further personal career development and start to build organizational resilience and agility,” she adds.

Lifelong learning begins with that spark of curiosity that can open the door to a world of possibilities. Take charge of your personal and professional development to achieve your workplace and longer-term career goals.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The Next Stage of Total Talent Management: Value Chain Management

Business Leadership General Insights Talent Uncategorized by John Yuva on 01/23/2024

Whether enterprises realize it or not, it is time to approach total talent management as an ecosystem value chain. Like supply chains, which are not linear segments but rather a spiderweb of inputs, the total talent ecosystem has a similar construct. With enterprise talent and strategy at the center hub, the various talent inputs such as FTEs, gig workers, contractors, and external talent serve as spokes that feed into organizational strategic objectives. As an ecosystem, it is about accessing the best talent from an arsenal of channels.

Using a sports analogy, enterprises now have a valuable “bench of players” from whom to select for various projects and initiatives. With total talent intelligence, organizations can tap employees with specific skillsets that may not be core to their current roles. Through the utilization of HR solutions, there should be transparency in the full depth that each employee brings to the enterprise.

Total Talent Management…Enabled By Today’s Tech

There are few reasons for enterprises not to have extended workforce systems to enable total talent intelligence and human capital systems integration. Research from Ardent Partners and the Future of Work Exchange indicate that 65% of businesses plan to utilize their workforce solutions to enable total talent intelligence over the next couple of years. And 90% have integration enabled between HR and contingent workforce systems (such as integration between HRIS and VMS platforms).

With extended workforce systems, organizations can achieve full transparency, management, and oversight of employees in all talent channels. Direct sourcing solutions bring even more capabilities through automation to build ever-growing talent communities to expand needed skillsets. Ultimately, enterprises want to achieve transparency in their ecosystem value chain where employees are looking beyond its four walls and into their larger contribution to suppliers and customers.

The Value Chain Mindset

The ecosystem value chain mindset can be advantageous with today’s focus on purpose-driven work. Knowing how they’re contributing to larger enterprise goals and objectives provides employees with a sense of purpose and accomplishment. Organizations have done a better job of showing workers how their roles stretch beyond their workspace and into broader operations.

However, it is now time to bring greater awareness to the value chain and the shifting approach to workforce intelligence and management. The competitive environment and volatile labor marketplace require an opening of the curtain so to speak and an unveiling of how the workforce (and all its channels) are unified in the larger operational scope. Doing so can lead to several advantages:

Enhances talent engagement and acquisition. Workplace cultures are evolving as are leadership styles, which makes total talent management even more critical. How is the enterprise attracting new talent? What is the approach for total talent acquisition? Is the process centralized for increased visibility? Are there guidelines and processes for sourcing talent within all channels? The answers to these questions will affect overall talent engagement, acquisition, and retention.

Transforms talent management to maximize the ecosystem value chain. The traditional approach of focusing primarily on permanent employees and their respective roles to achieve specific responsibilities lacks relevance in today’s Future of Work paradigm. Organizations require agility and flexibility to react to market changes and consumer demand. Those shifts don’t occur on their own. They are made by employees who must respond to new processes or with new skillsets. With a transformative talent ecosystem focused on a variety of channels to drive value chain competitiveness, organizations are better aligned for successful outcomes. It is essentially putting the enterprise in a position to have the right talent, at the right time, for the right need.

Attracts the best talent through the promotion of a total talent strategy. As part of an organization’s total talent management strategy, promoting this approach to prospective employees can attract talent looking for purpose-driven roles. The opportunity to use unique skillsets outside of an employee’s core role is a recruitment tool that shouldn’t be overlooked. This is particularly true for contingent workers, whether they be contractors, gig workers, or other external talent. Often, these employees lack a sense of belonging and contribution to the greater enterprise. All channels of a talent ecosystem are equal in their support of the value chain. It is the skillsets, not the talent channel, that is the priority. Communicating this to potential talent and explaining how such a strategy is executed, could be transformative for recruitment as well.

A talent ecosystem with a holistic approach to value chain management and strategy is the next phase of total talent management. Leveling the playing field through talent channels ensures workforce and organizational stability.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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