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Technology Adoption an Accelerant for Future of Work

Direct Sourcing General Insights HR Solution Providers Talent Technology and Innovation by John Yuva on 05/08/2023

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

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

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Chatbots and Direct Sourcing — A Natural Fit?

Business Leadership Contingent Workforce Direct Sourcing General Insights HR Talent Acquisition Technology and Innovation by John Yuva on 05/01/2023

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

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

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

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Optimize Your Staffing Suppliers

Business Leadership Contingent Workforce Diversity and Inclusion General Insights HR Solution Providers Talent Acquisition by John Yuva on 04/18/2023

The contingent workforce is now an essential component of enterprise execution and competitiveness. For many organizations, direct sourcing or online marketplaces are a primary means of securing non-employee talent. However, enterprises continue to utilize traditional staffing suppliers as well. In some cases, these relationships are based on a long-standing foundation for sourcing contingent workers.

Staffing suppliers, however, come with their own risks and rewards. Ongoing oversight is necessary to ensure these relationships are optimized and the organization’s staffing and workforce goals are met. The following are several considerations when managing staffing suppliers for contingent workforce engagement.

Track supplier performance for greater optimization. There are metrics for a host of business processes; the same should be true of staffing suppliers and their impact on talent management goals. According to Prosperix, a provider of workforce innovation solutions, staffing suppliers are not just meeting a talent need but contributing to a total talent management ecosystem. As such, a service-level agreement (SLA) detailing specific performance metrics must be established with regular tracking to mitigate potential risks.

What performance metrics are critical and specific to staffing suppliers? Prosperix says four KPIs are the most important.

Submissions to Positions
Submissions to Interview
Submissions to Hire
Assignment Completion

“These KPIs measure each staffing supplier’s responsiveness, whether they source an appropriate number of candidates, the quality of those candidates related to open positions, and whether they source reliable hires who successfully complete their assignments. Any staffing vendor that does those well is a worthy partner,” explains Prosperix.

Gain transparency and flexibility with contingent workers. Similar to enterprises being unaware of their supply chain’s second- and third-tier suppliers, many organizations lack adequate HR tracking of the identity and location of their contingent labor. This lack of transparency puts the organization at great risk for fraud, theft, etc. Awareness of potential risks and global compliance issues when engaging with contingent workers are paramount.

Equally important is having flexibility for how and where contingent labor works and resides. Globalization and the technologies to bridge teams from afar only broaden the talent pool — a good thing for organizations and their total talent management objectives. “Increasingly, workers choose how they want to work. Accommodating freelancers, independent contractors, alumni, interns, and project workers for difficult-to-fill positions and establishing a network of suppliers across a larger geography helps expand recruitment pipelines and improves access to qualified talent,” Prosperix says.

Communicate with your staffing suppliers. Signing the contract with a staffing supplier doesn’t mean the relationship goes on autopilot. Quite the opposite. A staffing supplier should receive the same level of due diligence and supplier management as any critical supplier. Often, it requires weeks or months to adequately track performance and determine supplier effectiveness. Thus, it’s imperative to have specific staffing targets identified and communicated.

Communication is a basic tenet of any business relationship. However, with talent management and matching contingent workers with specific positions, a lack of communication between HR and a staffing supplier could mean a significant loss in revenue and training costs. A supplier could lack a quality talent pool of contingent workers or an absence of diversity in its mix of candidates. Today’s skills-based hiring also presents additional challenges for staffing suppliers. Does the enterprise require a specialized niche of skilled labor? If so, can the staffing supplier tap into a large talent pool with those skills? Effective communication can help mitigate potential risks and ensure the organization attracts contingent workers that meet its talent requirements.

Staffing suppliers remain a value channel for sourcing contingent workers. Like any supplier relationship, however, performance and optimization are only achieved if HR and business managers have their staffing needs clearly defined and communicated.

Employee Engagement Still Lacks Execution

Business Leadership Contingent Workforce General Insights HR Technology and Innovation by Christopher J. Dwyer on 04/13/2023

Today’s enterprises can be characterized as fast-paced, ever-evolving to effectively respond to a more dynamic marketplace. Within the hustle and bustle lies a critical workforce need that is often overlooked: employee engagement. The concept can be confused with simply offering employees certain monthly perks identified from a quick survey. However, it goes much deeper than that and reaches beyond permanent, full-time employees to those in the extended workforce, as well.

A well-rounded definition of employee engagement comes from Engage For Success: “Employee engagement is a workplace approach resulting in the right conditions for all members of an organization to give of their best each day, committed to their organization’s goals and values, motivated to contribute to organizational success, with an enhanced sense of their own well-being.”

Powerful, Yet Underutilized

It is that commitment toward oneself and the enterprise that makes employee engagement such a powerful workforce approach. Yet, as a Gallup survey indicates, only 36% of U.S. employees are engaged in their work and workplace. The number is even lower on a global scale, with only 20% of employees engaged at work.

However, for those enterprises with a fully entrenched employee engagement system, the results speak for themselves. According to Gallup, those leading organizations are experiencing the following benefits:

An increase of 18% in productivity (sales)
An increase of 23% in profitability
A decline of 40% in quality issues (defects)

Achieving these results requires engagement with every worker. With nearly half (nearly 48%) of today’s enterprises comprised of contingent workers (per Ardent Partners and Future of Work Exchange research), employee engagement must include this critical workforce segment. When faced with the possibility of losing extended talent following a project or other initiative, employee engagement could be the competitive differentiator to retain them.

Engagement Strategies

Remote and hybrid work models can pose some challenges to employee engagement strategies. However, Gallop says “…highly skilled managers who set clear expectations, are in touch with each person through meaningful weekly conversations and have high accountability” will be necessary to execute employee engagement in a remote/hybrid work model.

A hybrid model is the most conducive to employee engagement because “…it can provide flexibility that considers several factors simultaneously — the individual’s life situation and strengths, the needs of the team they work on, health concerns, and the organization’s culture and business objectives,” Gallop says.

The following are various employee engagement strategies that can lead to a more motivated and productive workforce.

Invest in the candidate/employee experience. From the moment an enterprise engages with a candidate through that individual’s employment with the organization, the candidate/employee experience should be part of that journey. Communication and illustration of the company’s core values, for example, should be front and center to provide a sense of belonging and set the tone of the culture. Those values are then reinforced by managers and team leaders to create an open and positive work environment.
Integrate technology into the employee engagement process. Digital solutions permeate the workforce landscape. Apps to streamline the onboarding of contingent workers, collaboration tools for in-person and remote teams, and others all play a role in employee engagement. Research by Ardent Partners and the Future of Work Exchange says that 73% of businesses plan to utilize AI to measure and track and enhance employee engagement and the candidate experience. According to HR Cloud, “With the use of AI and collaboration tools, employees can become highly engaged since these technologies simplify tasks. Technology today allows efficiency, increases flexibility, and allows employees to work within the allocated time.”
Conduct regular workplace assessments. As the enterprise workforce evolves, it’s essential to measure the pulse of the workplace through assessments. Gauge overall feelings about workplace culture, leadership effectiveness, and work/life balance to name a few. Nearly 80% of businesses plan to conduct formal workplace culture assessments by the end of 2023, according to research from Ardent Partners and the Future of Work Exchange. Results will serve as a foundation for any changes to employee engagement initiatives.
Communicate, communicate, communicate. Motivate employees by encouraging them to share their thoughts, feelings, and ideas. One-on-one meetings with managers each week creates an emotional connection to the organization. Contingent workers must also be part of these weekly one-on-ones. Gaining their input can lead to productivity insights and improvements, as well as enhance their connection with their team members and colleagues.
Promote transparency with the contingent workforce. When it comes to the inner workings of the enterprise, the extended workforce should be part of those discussions. Whether they’re company meetings, employee retreats, or other communication and bonding activities, transparency with contingent workers can lead to greater trust, loyalty, and commitment. The more extended workers know about the organization and what goes on behind the scenes, the more they identify with its objectives and successes.

In his updated Gallup article, Jim Harter, Ph.D., chief scientist for Gallup, succinctly lays out the importance of an engaging workplace coupled with great managers — regardless of the economic climate. “Amid changes in workplaces and the economy, building an engaging workplace with great managers remains centrally important. During tough times, it predicts the resiliency of the workforce,” Harter says. “During recovery times, with lower unemployment, it predicts the retention of star employees. During all times, engaging workplaces with great managers build an organizational reputation and employment brand.”

Avoid Passing on Passive Job Candidates

Business Leadership Diversity and Inclusion General Insights HR Talent Acquisition by John Yuva on 04/06/2023

When we talk about Future of Work job candidates, it’s often in the context of active recruiting through direct sourcing initiatives, talent marketplaces, or online recruiting platforms. With the transition to skills-based hiring, attracting and selecting the right candidate is even more critical in meeting enterprise goals. As such, it may be time to expand the talent pipeline and include passive job seekers. This candidate segment can lie under the recruitment radar among the hundreds of active job applicants vying for coveted organizational roles.

Passive but Silently Active

Who are passive job candidates? These mostly employed individuals are not currently looking for employment opportunities. Many are happy in their place of work, but should the right career opportunity present itself, they could be persuaded to leave. According to Zippia, an online job recruiting firm, 73% of potential candidates are passive job seekers. And a considerable 87% of these candidates are open to the new job opportunities provided by active recruitment.

Attract an Active Response

Attracting passive job candidates relies on initiatives that are already cornerstones of the Future of Work paradigm. Diversity, equity, and inclusion (DE&I) programs are attractive to this recruitment segment because they want to work for employers that are progressive and supportive of various causes and lifestyles. Thus, it is imperative that organizations promote their DE&I efforts and results on social media and corporate communications for wide exposure. LinkedIn shared that a total of 134.5 million users regularly uses the platform every day. In addition, more than 48% of LinkedIn users are active each month. Enterprises should be using the platform to expand their reach in the marketplace, promote programs that capture company culture, and solicit users who are interested in employment or organizational programs.

With more enterprises restricting remote work, it is job flexibility and remote/hybrid models that continue to resonate with employees and many job seekers. Now is the time to capitalize on that fact and emphasize that the enterprise fully supports work/life balance and remote/flexible scheduling. Employees who previously enjoyed those benefits but are facing restrictions or revised policies may be more open to recruitment inquiries. At the very least, now is the time to communicate with current and potential employees about the intent to remain a remote/hybrid workplace.

Actively Recruit Passive Candidates

Shifting now from attracting passive candidates to actively recruiting them, there are several strategies identified by the Society for Human Resource Management (SHRM) to accomplish that objective.

Social Media

Whether it’s LinkedIn, Facebook, or association online job boards, social media’s reach is unparalleled. LinkedIn for example, offers recruiter subscriptions to best leverage the platform’s community. According to SHRM, “Another way to find passive job seekers on LinkedIn is to use the ‘advanced people search’ tool and enter your criteria for the ideal candidate for a job that is or will be available at your organization.”

Content Exposure

Establish a company blog to share industry trends and information that business professionals in the field can turn to. It positions the enterprise as thought-leading and engaged with the sector, which can attract passive job candidates looking for best-in-class employers.

Targeted Marketing Collateral

When passive job candidates are identified, the enterprise can target specific materials to them that speak to programs or benefits candidates would find attractive. Market those DE&I initiatives or hybrid work models as a reason to consider working for the enterprise.

Employee Referral Programs

Employees can serve as a critical extension of an organization’s recruitment strategy. With an employee referral program, outreach can occur via social media channels or through personal communication. Often, there are perks, such as a bonus for referrals that result in a hire. More importantly, an employee referral program promotes employee engagement and can lead to recruitment cost and time savings.

Seek What You Need

Passive does not mean uninterested. It is the responsibility of HR and business leaders to seek out recruitment opportunities and cultivate relationships with job candidates who possess skills and capabilities that could be a competitive differentiator for the organization. In my own professional life, I was a passive job candidate who received a LinkedIn invitation from Ardent Partners’ founder and chief research officer Andrew Bartolini to explore a potential job opportunity with his firm. I was not actively applying or networking for new employment opportunities. However, after two months of casual conversations with Andrew and his team, the position we discussed was an ideal fit with my background and professional passions. And here we are. Passive candidates need a reason to walk through the door. Show them the reasons why.

Sustain the Leadership Evolution

Business Leadership Diversity and Inclusion General Insights HR Uncategorized by John Yuva on 03/30/2023

What the previous three years have shown is that enterprises are resilient. The ability to turn on a dime operationally and transform from an in-person to a nearly fully remote workforce is a stunning achievement. It is the ultimate in change management execution, forever altering the Future of Work paradigm and business leadership as we know it. In defining the Future of Work movement, the Future of Work Exchange identified the transformation of business leadership as one of its three critical pillars.

Workplace Humanization Arrives

How has business leadership transformed? Quite simply, leaders today have a newfound focus on “humanity,” and the need to be more talent-oriented to thrive during uncertain times. During the height of the pandemic, there was no separation between how leadership and employees experienced this global event. Everyone went through it together and had similar fears, anxiety, and concern for others. Many leaders recognized this fact and rebooted their workplaces by retaining employee flexibility and remote/hybrid models once the world started to normalize.

Bridging of Human and Skills-Based Objectives

Along with the humanization of the workplace, the need for skills-based talent became apparent as well. The criticality of enterprise agility, flexibility, and business continuity is now a central part of talent acquisition strategies. It is no longer about filling a job role, but rather hiring candidates that bring specific skills and competencies while also being a good cultural match. Business leaders today actively bridge the human aspect with skills-based execution. Understanding, for example, the importance of diversity, equity, and inclusion as part of the cultural fabric, leaders have integrated DE&I into hiring and operational objectives.

Business Leadership Evolves

The Future of Work Exchange and Ardent Partners have identified five ways business leadership is evolving.

Inclusivity Is Paramount

93% of business leaders state that they are focusing leadership efforts on developing and cultivating a more inclusive workplace culture. Not only does this invoke a sense of belonging within the workforce, but it can enhance brand reputation when promoted on recruitment portals and in the media. More job candidates are seeking employment with enterprises that place a premium on inclusivity.

Providing Purpose

Over the next 12 months, nearly 70% of business leaders plan to develop a vision and plan for making work more purposeful across the organization for its total workforce. In his Fast Company article, Raj Indupuri, CEO of digital clinical software and service provider eClinical Solutions, said it’s critical to have leadership goals that all employees can align with. “In my experience, it’s more enjoyable to come to work when surrounded by others who are equally passionate about your purpose.”

A Focus on Well-Being

Throughout 2023, nearly 75% of executive leaders anticipate enhancing the ways the business improves worker well-being and mental health. While the impacts of the pandemic have subsided, the emotional effects continue to linger. Monitor employee well-being and mental health through surveys and regular one-on-one check-ins with team members. Such feedback is crucial to identifying employees who may require specific mental health services or programs.

Empathy-Driven Leadership

Today, 65% of executives include empathy in their management styles, which reflects a flexibility-driven approach to leveraging more humanity in how they lead. This can lead to more open communication between employees and leadership, as well as a greater comfort level in presenting ideas that could result in untapped innovation.

The Conscious Leader

Over the past year, 73% of executives have moved towards more of a “conscious leadership” approach, which centers around the understanding of worker perspectives, emotions, and concerns. Conscious leadership brings the human aspect of leadership management full circle.

Is the current business leadership transformation sustainable? The outlook is hopeful. By modeling and promoting such behaviors as empathy, conscious leadership, and a focus on DE&I principles, it unifies the workforce to not only adopt those approaches but also hold business leaders accountable. That accountability will help sustain the Future of Work ideals and continue the evolution of an employee-centric workplace.

An Ode to the Future of Work

Business Leadership HR Talent Technology and Innovation by Andrew Bartolini on 03/28/2023

The Future of Work is a topic that has been discussed for by Ardent Partners for many years, particularly with technology rapidly evolving and transforming industries. Today, we offer a poem that takes a creative and fun approach to imagining what the future of how we work might look like.

With rhyming couplets and vivid imagery, we’ve tried to paint a picture of a world where AI machines take on mundane tasks, leaving more time for worker creativity and exploration. The idea of virtual offices and collaboration without borders adds a sense of excitement and wonder to the future of work as we envision a world where the limitations of physical space and language barriers no longer exist. Ultimately, the poem encourages us to embrace the future with open arms, as it holds endless possibilities for growth and innovation.

Is It Time to Reintroduce Ourselves to Total Talent Management?

Contingent Workforce HR Talent by Christopher J. Dwyer on 03/27/2023

For the past decade, the very concept of total talent management has been akin to the Bigfoot or Loch Ness Monster of the business arena: a mythical idea that has only seen slivers of reality across global organizations. Sure, we’ve seen dribbles of total talent programs in some enterprises, as well as specific elements of these initiatives (i.e., total talent acquisition, total talent intelligence, etc.) offered by some of the industry’s more progressive workforce management solutions.

However, on the whole, total talent management itself has still not yet experienced its true arrival as we all would have anticipated. Back in 2011, I wrote perhaps the industry’s first full research study on total talent management, which found that there was extreme desire for such a program; the caveat, however, was that the tools weren’t quite there yet…and neither were the foundational elements required to make such a program successful.

So, here were are in 2023, with a toxic workplace environment (due to many, many workplace culture issues), a volatile labor market, and a Great Resettling that represents a continued revolution of talent. There may or may not be a recession swirling around us like a dooming specter. And, above all else, enterprises realize that they require the right talent at the right time at the right cost to get work done in an efficient and optimal way.

Dare I say that we should reintroduce ourselves to the idea of total talent management? Should we truly flip this concept from theory into reality? Here a few reasons why:

The technology is finally there to support TTM. A decade ago, the phrase “extended workforce” didn’t exist…nor did the proper technology to make total talent management a reality. Contingent workforce management (CWM) was just beginning its ascent to true strategic imperative, while less than a quarter of the total workforce was considered “non-employee.” Today, the story has evolved: extended workforce systems are innovative offshoots of Vendor Management System (VMS) platforms that can easily integrate with the core human capital systems (ATS, HRIS, etc.) for true visibility, management, and oversight of both contingent and FTE labor. Point-of-entry automation for new requisitions and talent requests can access various forms of talent, including the ever-important talent communities developed by direct sourcing solutions. And, most importantly, today’s workforce management technology can easily help businesses understand their total workforce, an attribute which allows them to pinpoint the best-aligned talent (be it contingent or an FTE already on staff) for a given project or role.
Functional collaboration today is a must-have capability. Unlike in years past, it is much more common for businesses to experience core cross-functional coordination; procurement and finance tackle their problems together, for instance, for the sake of the bottom-line. HR, talent acquisition, and procurement have all experienced challenges and pressures over the past two-and-a-half years, each unit emerging from the acute pandemic phase stronger than ever before. As such, the idea of collaborative strategies is much easier to maintain in today’s business environment: in the quest for survival during those scary days of 2020, enterprise functions learned that they needed each other to thrive. And, today, these three distinct groups now understand that, in a world where talent is an incredible competitive differentiator, they must work together to bridge the gaps between extended workforce management and traditional hiring. By combining efficiencies and blending strengths, the triumvirate of HR, procurement, and talent acquisition can form a formidable backbone of total talent management.
Aspects such as purpose, flexibility, and empathy boost the importance of the candidate experience, with the notion of “engagement” playing a critical role in total talent acquisition. No longer does a great hourly rate set the tone for freelancers, contractors, and other types of non-employee talent when choosing their next destination. Workplace culture (and leadership style) are more crucial now than ever for hiring managers to hook new talent; as such, the idea behind total talent acquisition (a key phase within TTM that involves a centralized, standardized set of guidelines and processes for engaging and sourcing all types of talent) becomes one of engagement, as well. True total talent management programs harness the power of employee engagement and candidate experience tools and tactics to ensure a steady approach towards talent acquisition for both contingent and FTE talent populations.
The need for business agility, combined with the volatility of the labor market, translates into the perfect gateway for total talent management. Simply put: total talent management is needed today, now more than ever. Businesses must execute lightning-fast talent decisions to thrive in an uncertain economy; the “total talent intelligence” enabled by total talent management programs and associated platforms allow hiring managers and other leaders to understand 1) the current makeup of talent across the organization, 2) the best-fit resources (whether it’s someone in house, a current contractor, etc.) for a new project or role, and 3) provide a dynamic entryway into a truly agile workforce.

Total talent management has been an oft-maligned strategy that has bordered on the hypothetical for over a decade. However, the platforms available today and the transformation of work and talent, combined with the need for such a program, positions total talent management as an innovative strategy for the months and years ahead.

Unconscious Bias Restrains DE&I Efforts

Business Leadership Diversity and Inclusion General Insights HR by John Yuva on 03/23/2023

Diversity, equity, and inclusion (DE&I) is widely regarded as a critical component of a Future of Work vision. It is an important initiative for enterprise and employee unification, engagement, and inclusion for workers of all backgrounds and demographics. Despite those positive intents, DE&I is under greater scrutiny from local and state governments that view such programs as part of a “woke” agenda. However, understanding its value and reward, enterprises across the U.S. continue to foster DE&I principles and integrate them into their recruitment and workforce engagement strategies.

With the current political and social polarization that exists, HR and managers must maintain the momentum of DE&I and further drive its criticality within the organization. Two areas that are extremely relevant today are unconscious bias and employee resource groups. The intent of addressing these two areas is to bring greater awareness to our own biases while recognizing the needs underserved employees in the enterprise who may be impacted by unconscious bias themselves.

Address Unconscious Bias

The University of California San Francisco (UCSF) defines this concept as “Unconscious biases are social stereotypes about certain groups of people that individuals form outside their own conscious awareness. Everyone holds unconscious beliefs about various social and identity groups, and these biases stem from one’s tendency to organize social worlds by categorizing.”

One interesting aspect of unconscious bias that UCSF points out is that it’s “…far more prevalent than conscious prejudice and often incompatible with one’s conscious values.” This is an important statement for HR and managers because it means with engagement, employees can better recognize and quell unconscious bias in their own interactions.

Examples of different types of unconscious bias include affinity bias, confirmation bias, conformity bias, and gender bias. Lattice, a people management platform, says a few key approaches can help reduce the effects of unconscious bias.

First and foremost is self-recognition. Knowing that we all have biases is a necessary step in recognizing our own and preventing them from impacting our decision-making.
Assess various employee and team touchpoints across the enterprise to determine where potential biases may exist and who may be most vulnerable to them.
Conduct annual unconscious bias training to promote inclusiveness and empowerment and reduce unconscious bias in day-to-day interactions.

Establish Employee Resource Groups

The first employee resource group (ESG) was established by black employees at Xerox in the 1960s in response to high racial tensions in the workplace. An ESG is a voluntary, employee-led group with members who share similar interests or demographic characteristics.

According to an article from Great Place to Work, ESGs “… exist to provide support and help in personal or career development and to create a safe space where employees can bring their whole selves to the table. Allies may also be invited to join the ERG to support their colleagues.”

Great Place to Work says ESGs are effective in the workplace for several reasons.

Act as advocates for underserved employees, bringing greater awareness to specific individuals or issues.
Improve physical aspects of workplace facilities, whether it’s gender-neutral bathrooms or designating safe places for employees to converse.
Create a sense of belonging and purpose with like-minded employees. Not only does this elevate trust but also inspires conversations that would otherwise not occur.
Identify potential organizational talent through ESG leadership that may not have those opportunities due to unconscious bias.
Pursue solutions for specific enterprise challenges, maintaining open lines of communication with leadership and keeping leadership aware of the interests and issues of the group.

A key factor in the success of an ESG is having an executive sponsor. Ceridian, a human capital management software company, says, “An executive and/or leadership sponsor can not only help to increase visibility, innovation, and awareness, but can also help align ERG activities with business goals. Additionally, commitments from senior leaders signal a wider, organizational commitment to improving diversity, equity, and inclusion practices.”

Prioritize DEI in the Enterprise

We live in a polarized world that has led to significant divides. The workplace is a melting pot of employees with many outside societal and political viewpoints that share a common goal: the success of the enterprise. DEI must remain a strategic priority for organizations to ensure that despite the societal divide, its inner walls are a place of cohesiveness, diversity, inclusion, and equality.

Amish Mehta, managing director and CEO for CRISIL, a global analytical company, summed up the importance of DE&I in his firm, “As a people-first organization, we are committed to equal treatment of, and opportunity for, all employees, irrespective of their background, orientation, and preferences. Diversity, Equality, and Inclusion are at the core of CRISIL’s value system,” Mehta says.

“We welcome skills and perspectives that help us serve our clients and communities better and enable us to create a sustainable, and diverse culture where everyone can be their best.”

Skills-Based Is the New Workforce Frontier

Business Leadership Direct Sourcing Diversity and Inclusion General Insights HR Talent Acquisition Technology and Innovation Uncategorized by John Yuva on 03/16/2023

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.

Core Tenets of a Skills-Based Organization

The foundational elements of the skills-based organization revolve around the concepts of rethinking the parallels between talent and work; thus, the very future of the skills-based organization depends on forward-thinking strategies, ideas, and, of course, technology, according to Chris Dwyer, senior vice president of research at Ardent Partners and the managing director of the Future of Work Exchange.

Consider the Future of Work Exchange’s six key elements of skills-based organizations and how they impact the greater business (and its staffing, recruitment, and hiring efforts).

Candidate Centricity

A candidate-centric talent strategy ensures that businesses place the utmost emphasis on the candidate experience and the candidate journey, thus positioning them to attract and engage top-tier skillsets and expertise. Employee development opportunities are essential in retainment and career progression initiatives.

A Shift to Skills-based Hiring

Job-based hiring has long been the foundation of talent acquisition. However, for skills-based organizations, prioritizing expertise as the core of hiring enables a deeper range of total talent. An important part of this strategy is diversity, equity, and inclusion in the hiring process as well. DE&I should be communicated by leadership as an enterprise priority.

A Foundation of AI and Data

Deeper, AI-furled technology allows businesses to execute more effective candidate matching, identify critical skills gaps, and provide leaders with predictive insights into the organization’s future talent. Rather than reactively responding to operational and market changes, AI and data enable a proactive approach to talent identification and deployment.

Expansion of Skills

Hard skills are crucial, but “soft” skills are critical for productive and engaged workers. SBOs expand their candidate searches to prioritize behavioral skills just as much as traditional expertise. The need for strategic problem-solving and collaboration across business units is an inherent characteristic of a skills-based enterprise.

Enhanced Experiences

Skills-based organizations not only prioritize the candidate journey but also the hiring manager experience to ensure that consistent, scalable methods are leveraged to catalyze a frictionless talent acquisition experience.

Omni-Channel Talent Acquisition

Skills-based organizations leverage “omni-channel talent acquisition,” in which hiring strategies revolve around a variety of talent sources, including direct sourcing, talent marketplaces, digital staffing, etc. Cultivating those pipelines with diverse candidates, while also using source prioritization for specific requirements will streamline the talent acquisition process.

A skills-based organization is a major transformation from the traditional approach of job-defined roles and responsibilities. Core to a successful skills-based workforce model is comprehensive talent assessments of existing skillsets, integration of workforce technologies, and structured processes for identifying projects and deploying needed skillsets. And of course, there’s change management that is necessary to make the transformation sustainable, a topic we’ll tackle in a later article.