Artificial intelligence has the potential to transform the many ways businesses find, engage, source, and manage talent, as well as how they structure business operations in a candidate-centric world. Today on the Future of Work Exchange, we present another exclusive infographic, “Five Ways AI Can Transform Talent Management,” that reflects how AI is primed to not only disrupt talent acquisition, but also influence, impact, and revolutionize the Future of Work movement.
It may be difficult to share this perception, given the fact that we’re still mired in an uncertain economic climate, but businesses today are in a rosier position than they ever were before regarding how they find and manage talent (and the ways they address how work is done). The Future of Work Exchange (and the nearly 17 years’ worth of research within its foundation) has often stated that talent is an enterprise’s top competitive differentiator. Throw in a global pandemic that ushered in a new era of work, along with a reimagining of the talent acquisition function, and what we have is a business market that will, probably forever, be laser-focused on the skillsets and expertise required to thrive on a truly global scale.
This, of course, places the utmost significance on a key arena within the typical enterprise: its utilization of workforce management technology, which includes extended workforce management, talent acquisition, talent intelligence, remote/hybrid workplace augmentation, direct sourcing, compliance and risk mitigation, and more.
Today’s workforce management platforms (a broad term, yes, but one that encompasses so many of the core functions addressed within contingent workforce or talent acquisition initiatives) look markedly different than just a few years ago, when an emerging virus upended life and business. In a post-pandemic world, one in which the Future of Work “movement” is nearly fully-realized from both enterprise and worker perspectives, it is these workforce-oriented platforms that will:
Stay tuned for Part Two of this article series, in which we’ll highlight other innovative workforce management platforms that are actively reconceptualizing the Future of Work and the many ways businesses find, engage, and manage talent.
The current deluge of artificial intelligence news and coverage in the wake of ChatGPT’s meteoric rise in utilization over the past eight months has resulted in many, many businesses pondering the relative future of their overall operations.
Will AI become the de-facto technology that all processes revolve around? Will AI replace the vast majority of human-led positions over the next several years? Does generative AI, like ChatGPT, signal the apocalypse?
Well, the answers here are “probably,” “possibly but probably not,” and, “no, we won’t live in a Terminator-styled future in which robots control the world.” Artificial intelligence is a powerful range of technologies that were designed (and continue to evolve) to mimic human thinking, automate redundant processes, and transform business operations into hyper-efficient layers that are harmoniously entwined.
AI generates buzz unlike any other corporate technology for two main reasons: 1) it’s become ubiquitous given its presence in our personal lives (and our consumer lives), and, 2) it has the potential to transform nearly every facet of the contemporary enterprise. And it’s not just ChatGPT that represents a veritable technological revolution; AI is becoming omni-present in enterprise technology in such a way that every business understands that it needs to adapt to an AI-led world…or fail to thrive.
The world of talent acquisition has always been a hotbed of innovation. Today, TA executives (and the function at-large) operate with forward-thinking strategies in the ever-evolving war for talent, choosing to adopt new solutions, utilize fresh technology, and tap into Future of Work-era concepts to effectively solidify the notion of “talent as the top enterprise differentiator.” There’s an interesting dance at hand here, however, when artificial intelligence meets the world of talent acquisition. Does it have the potential to replace…or disrupt? Is AI a harbinger for a revolutionary transformation in talent acquisition, or is it an enhancer and enabler?
The truth lies somewhere in the middle, of course. While artificial intelligence will certainly exceed its own hype and become the #1 Future of Work-era innovation (especially in the talent acquisition arena), there are specific ideas that point to AI as having limitations and requiring human intervention:
There is a delicate balance at stake here, though, as AI becomes more entwined with business operations and evolves in how it enhances various enterprise functions. Artificial intelligence may have specific limitations, but it is undoubtedly a powerful tool that has the potential to disrupt, transform, and enhance nearly every facet of talent acquisition. Where do we draw the line, though? What is the proper mindset here, especially as generative AI (like ChatGPT) changes the ways businesses operate?
During last month’s Future of Work Exchange LIVE event in Boston, Opptly’s Rebecca Valladares put it quite profoundly, stating, “Ultimately, recruiters who use AI will replace recruiters who do not use AI.” The devil is in the quick details of Valladares’ idea: success comes to those who embrace it and meld it with the human mind. In the realm of talent acquisition, while AI holds immense potential to streamline processes and enhance efficiency, its true power lies in complementing and fusing it with human thinking, creating a harmonious synergy that combines the best of both worlds.
Many times, it’s been said that having the right talent in the right place at the right time is paramount to a successful workforce strategy. While enterprises have often used traditional staffing firms to source candidates, this is no longer a viable option in today’s competitive labor marketplace. Instead, organizations are turning to digital staffing expert networks to recruit and hire candidates quickly, efficiently, and cost-effectively.
The focus on skills-based hiring is helping drive the transformation toward digital staffing. The ability to gain access to candidates with specific skills, competencies, and experience on a global scale is game-changing for many enterprises.
According to a blog post from Upwork, a global digital staffing provider connecting businesses with independent professionals and agencies, says, “As the internet has become a staple in the lives of people around the world, it has also become a central component in the modern job search.
“With the ability to match independent professionals with the skills and experience to perform excellent work to companies looking for the talent that will fit their needs, digital staffing should be a central component in the talent search for companies of all sizes.”
As more enterprises incorporate digital staffing into their workforce strategies, they can leverage certain benefits unattainable with traditional staffing approaches. Several digital staffing providers from Upwork to Jombone, a Canadian digital staffing agency, and others cited a few of the major advantages digital staffing brings.
Traditional talent acquisition methods can be time-consuming and expensive. Digital staffing puts pre-vetted experts from extensive databases into the hands of HR and business managers, streamlining the hiring process. According to Jombone, “Finding the right candidates for your business is critical to success, but paying too much to source them can drain your bottom line before they’ve even worked a single day. This is where a staffing platform can offer a more affordable solution.”
One of the leading benefits of utilizing a digital staffing expert network is access to an often-extensive database of specialized professionals. Project managing a critical initiative and need certain expertise to solve a business challenge? Is there a new role for an expanding department where specific experience is required? Expert networks allow organizations to tap into their expertise to enhance problem-solving capabilities or ramp up departmental knowledge.
An overlooked benefit of using digital staffing networks is corporate networking and relationship building. Engage with experienced professionals within expert networks to not only connect on immediate projects and job openings but also future collaborations, partnerships, or mentorship opportunities. Organizations can expand their professional network and tap into a broader ecosystem of experts.
As Upwork stated previously, online digital staffing databases have revolutionized talent recruitment and talent acquisition processes. The access to a global pool of talent enables organizations to engage experts from different geographical locations, leveraging international expertise and diverse markets and cultures. Not only does this provide a global reach for talent needs but also broadens the possibilities for collaboration, market expansion, and cross-border projects.
Use of a digital staffing platform and an expert network database is table stakes in today’s quest for talent. It not only streamlines talent acquisition but also generates bottom-line savings. Regardless of organizational size, utilization of expert networks can be a competitive differentiator.
The Future of Work is an all-encompassing paradigm that transcends any one area of talent acquisition and talent management. Thus, when developing a workforce planning strategy, it must comprise every department and role in the enterprise. Yet, few organizations approach such a strategy from a holistic perspective. This can be detrimental to an organization’s skills development initiatives, talent retention efforts, and overall collaborative effectiveness with MSP and VMS partners.
A study released by eQ8, which provides a dedicated end-to-end SaaS solution for strategic workforce planning (SWP), revealed the criticality of having an enterprise-wide approach toward SWP. Here are a few of the major takeaways from the study:
According to Alicia Roach, CEO and co-founder of eQ8, “Strategic workforce planning is all about driving a fundamental shift where organizations see their workforce as an asset,” she said.
“When we treat our workforce as something that creates value, achieves strategic and operational imperatives, and delights customers, we are better situated to meet our long-term goals for success. There is an innate knowing that the organization cannot get where it needs to go without its people.”
Employees are a critical piece to workforce planning execution, as are managed service providers and vendor management system partners. These external partners rely on an effective workforce planning strategy to meet the talent needs of the organization. The following are several ways a holistic SWP initiative is not only necessary but essential to MSP and VMS partner effectiveness.
First, workforce planning helps MSPs and VMS providers align the demand for contingent workers with the available supply. By analyzing historical data, market trends, and client requirements, these partners can anticipate the need for specific skills and adjust their talent pool accordingly. This ensures a quick response to client demands and delivers the right talent at the right time.
Second, MSPs and VMS providers can better optimize talent acquisition and management costs through an effective and enterprise-wide strategic workforce plan. By forecasting demand and analyzing labor market conditions, they can identify cost-effective sourcing strategies, negotiate favorable rates, and avoid excessive labor oversupply or shortages — leading to controlled expenses and consistent service quality.
Third, SWP leads to the development of a diverse talent pool. MSPs can identify skill gaps, assess future talent needs, and implement strategies to attract, recruit, and retain skilled professionals. By nurturing relationships with candidates, they can build a strong talent pipeline, ensuring a steady supply of qualified workers to meet client requirements.
Lastly, workforce planning plays a vital role in ensuring compliance with labor laws, regulations, and client-specific requirements. MSPs and VMS providers need to navigate complex legal and regulatory landscapes, such as employment contracts, tax obligations, and worker classification. Integrating compliance considerations into their planning process can mitigate risks and avoid potential legal and financial consequences.
While on the surface, workforce planning can appear as a step within the Future of Work paradigm. However, it goes much deeper than that. Enterprise-wide SWP is foundational for Future of Work execution. Without it, organizations and their MSP and VMS partners are throwing darts in the dark to decide what skills exist, where talent resides, and how best to deploy it. Gain control and a proactive approach to SWP with a holistic mindset that includes input and sharing of information with MSP and VMS partners.
In the last 12 months, several high-profile enterprises have rolled back their remote work policies, requiring employees to return to the office. Most cite more effective communication, collaboration, and team bonding as primary reasons. While corporations like Disney, Apple, and JPMorgan will dominate the headlines with their announcements of in-person work, recent Ardent Partners and Future of Work Exchange research (2023) indicates an overall preference for workplace flexibility.
The research revealed that 97% of business leaders prefer some level of flexibility in their workplace. Consider this breakdown of leader preferences: flexible and remote options (64%), a mix of remote and in-person (33%), and fully in-person/office (3%). While there may be some validity to the myriad of reasons organizations are reverting to in-person work, the global workforce coupled with today’s collaborative technologies solves many of those challenges. Obviously, it largely depends on the nature of the work — an office environment versus a manufacturing plant.
However, business leaders are realizing the value of a flexible work environment. Jennifer Jones Newbill, director, global employment brand for Dell Technologies, was quoted in FlexJobs as saying about the effectiveness of workplace flexibility, “Our employees really value flexible work! Our employees have told us time and time again that they appreciate being treated like adults. They like to self-monitor, and that would include how they pace themselves, what times of day they work, and where they choose to work from.
“The power of my team right now is that we’re global … We really bring a powerful collective by not all being in the United States, sitting in the same building together … If we were doing what we are doing with 10 people, all in the U.S., all in the same office, all in Texas, I don’t think we would be as cohesive and strong as a team.
“How people work or want to work is very unique and personal to them.”
As Newbill points out, it’s not about workplace control. In the past, productivity could come at the expense of forcing the proverbial square peg into a round hole. This often led to lower productivity rates, employee disengagement, and retention challenges. Today’s Future of Work paradigm puts the focus on the employee to maximize their productivity and engagement within the environment best suited for them.
What rewards are business leaders reaping from this approach? There are several. And as younger generations enter the workforce, the value will only continue to evolve and grow.
Talent attraction and retention. The war for talent remains. In a competitive job market, providing flexibility gives businesses an advantage in recruiting top candidates. This dovetails into building a diverse, skills-based talent pool, aligning with many agile workforce strategies.
Adaptation to changing expectations. The modern workforce has evolving expectations when it comes to work arrangements. This is only going to increase as younger generations populate the workforce. Millennials and Gen Z, who comprise a significant portion of the labor market, often prioritize flexibility and work-life balance. To attract and retain these employees, businesses must adapt their policies to align with growing expectations.
Employee satisfaction and well-being. Any enterprise that undervalues employee satisfaction and well-being is losing the war on attracting and retaining talent. When employees have more control over their work schedules and can accommodate personal obligations, they tend to be happier, more engaged, and less likely to experience burnout.
Operational agility and resiliency. With today’s market volatility, agility and resiliency permeate throughout workplace objectives. Whether it’s a natural disaster, supply chain disruption, or internal challenges, businesses with flexible work arrangements are better equipped to maintain operations and ensure business continuity.
As much as some business leaders want to institute more workplace control and limit or remove remote work options, the flexible workplace is here to stay. Whether it’s a team of 10 or a global workforce of hundreds, the Future of Work is now ingrained in the global work culture. The value of workplace flexibility can far outweigh the constrained approach. Provide employees with a sense of workplace ownership to cultivate a culture of engagement and resiliency.
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.
Candidate screening can be time intensive. Thus, chatbots are assisting in this process by asking a set of pre-defined questions to candidates and identifying those who meet the required qualifications. This can save HR and recruiters significant time and resources by filtering out unqualified candidates and moving forward only those who will speak directly with hiring managers.
With dozens of potential candidates, chatbots can assist in coordinating interviews, ensuring that HR and hiring managers have appropriate time blocked out for other tasks. Streamlining this workflow process allows a quick and efficient means of interview scheduling. While this is a more tactical task, it’s an essential one that automation can complete.
A major element of direct sourcing is the curation and storage of candidate data. Chatbots can help build and maintain a database talent pool. This information can be used to match candidates with future job openings, streamlining the candidate selection process. The next level of this process is using AI to slice data further based on skills and competencies, which seems a natural progression as enterprises transition to skills-based hiring.
One of the tenets of Future of Work is engagement, beginning at the candidate stage. Not surprisingly, chatbots can engage with candidates throughout the recruitment process by answering their questions, providing updates on the status of their application, and offering personalized support. According to HybridChat, a chatbot solution provider, 74% of job seekers stall in the application process. Chatbots can engage with the candidate and answer questions that lead to a completed application. This all contributes to improving the candidate experience and increases the likelihood of a successful hire.
While this only touches the surface of the capabilities of chatbots, such AI technology can play a valuable role in direct sourcing processes helping HR, recruiters, and managers automate time-consuming tasks, improve candidate engagement, and ultimately identify the best candidates for a given position. Recruitment automation using AI and machine learning will only increase with time. What this means is the potential for more enterprises to adopt direct sourcing strategies to leverage the technology and the efficiencies that come with it. With digital transformations leading many organizational objectives, the integration of automated recruiting tools like chatbots and other AI applications brings value add to workforce strategies.
Over the past three years, the talent acquisition landscape has undergone a significant transformation, largely driven by the global pandemic. In the face of economic uncertainty and unprecedented challenges, organizations have realized that attracting and deploying top talent is no longer just an advantage but a critical necessity. As we navigate this new era, the ability to foster innovation, creativity, and drive has become essential to survival and success. It is abundantly clear that the post-pandemic world will reward those who can attract and retain the best talent.
To thrive in the competitive and uncertain labor market, businesses must do whatever it takes to stay ahead of the game. This means expanding their talent pipelines, improving hiring strategies, and scaling talent acquisition in ways that benefit the organization in the long term. While direct sourcing is not a new strategy, it has gained popularity due to its alignment with the direction of the world of work and talent.
Direct sourcing allows organizations to leverage an internally-led, internally-developed “recruitment agency” that removes third-party staffing suppliers. This enhances the overall control of talent engagement in terms of both quality and spend, while also ensuring consistency in branding, communication, and culture across all departments involved in talent attraction. As a result, direct sourcing has evolved from a novel idea in 2019 to a proven strategy that allows businesses to align their core initiatives with available skillsets and maximize the overall impact and value of their talent community.
While basic direct sourcing programs can generate tangible benefits, such as cost reductions and talent pipeline expansion, the stakes are much higher than that. Strategic approaches to direct sourcing have evolved significantly since the concept’s rapid rise a few years ago. In 2023, direct sourcing is no longer just the sum of its parts. Instead, it represents a near-perfect alignment with the direction of business today and in the foreseeable future. The labor market remains unsettled, and economic uncertainty continues to prevail. Businesses are engaged in a fierce battle for talent as unemployment reaches historic lows, and millions of job openings go unfilled.
Moreover, the Future of Work movement and its resulting transformations actively call for businesses to shift their hiring strategies. These factors together represent both a new challenge and a new opportunity for direct sourcing: to help enterprises cultivate a flexible and scalable workforce that drives true talent sustainability.
There has been great debate in recent months about a recession. Are we already in a recession? If a recession occurs, will it be light or something more impactful? Or will the economy be resilient and avoid a recession entirely? Enterprises in technology and media industries are already reacting to recession fears by laying off tens of thousands of workers. As we move further into 2023, how could a recession impact the extended workforce?
There’s no doubt we’re experiencing challenging economic times. However, businesses must continue with mission-critical projects and initiatives that often require specialized expertise. The skills gap remains inherent in many enterprises, leading to continued demand for contingent workers. And as the Future of Work Exchange research indicates, 47.5% of the enterprise workforce is comprised of extended workers. That figure cannot be ignored, especially during times of economic distress.
Despite the recessionary climate, there is an enterprise evolution occurring: digitization. Whether it’s talent acquisition platforms, accounts payable solutions, or larger enterprise resource planning systems, businesses are transforming from tactical (manual) to strategic (digital) strategies across the operational landscape. And with digitization comes the extended workforce.
As more enterprises pursue digitization, mission-critical hyper-specific skillsets and expertise are not only preferred but required. Transforming into the digital era means companies are implementing new technologies that leverage artificial intelligence, machine learning, blockchain, and other Industry 4.0 automation. Enterprise integration of these technologies requires specific skill sets and competencies that are often outside the capabilities of existing permanent employees.
Hiring full-time employees for digitization projects and initiatives does not make fiscal sense (particularly during a recession) unless the role is a data analyst or scientist critical to interpreting daily analytical outputs. Otherwise, contingent workers specializing in digital transformation integration and implementation are the ideal choices — aligning contractual agreements with workforce budgets. Hyper-skilled talent is the future for enterprises expanding their product and service offerings through automation.
Supply chain and procurement are fields that employ hyper-skilled talent. Enterprises will hire a chief procurement officer to transform the procurement department through digitization and eliminate manual processes. A timeline may last two years, but once the project is complete, the individual seeks out other organizations with transformation as a critical initiative. These types of workforce mercenaries are much more abundant today than a decade ago. Their sole purpose is the execution of strategically detailed operational initiatives to elevate the enterprise competitively before taking on a new assignment elsewhere.
Sourcing such talent is already available to many organizations through workforce platforms and processes.
Direct sourcing and talent marketplaces are now table stakes for enterprise competitiveness. The use of these channels is necessary to source extended workers and hyper-skilled talent with current, specialized competencies. Recent Future of Work Exchange research found that 82% of businesses utilized more extended talent in 2022 than in 2021. During a recession, organizations can specify specific hours for extended workers who are already accustomed to flexible schedules or defined project timelines.
The workforce mercenary is likely to find an abundance of opportunities in a recession with 73% of businesses planning to divert external talent to mission-critical type initiatives and projects over the next six months. This is a clear sign that organizations are taking a more proactive stance against a possible recession than in the past. It appears quite possible that talent acquisition strategies will also shift during a recessionary period as the extended workforce closes critical skill gaps.
Enterprises with the ability to scale their extended workforce before, during, and after a recession are best positioned to weather an economic downturn. Seek workforce mercenaries for those transformational initiatives, while leveraging external talent for skills gap challenges. It’s a critical balance, but one that separates the modern enterprise from those still operating at a tactical level.
Ardent Partners and Future of Work Exchange research has long pointed to services procurement (and SOW-based projects and services) as the “next frontier” for contingent workforce management. Comprising upwards of 50%-to-60% (or more!) of the average organization’s total external workforce spending, services procurement remains a prime opportunity for businesses to drive savings, improve visibility, and, most importantly, reshape how work is done.
In a new research study underwritten by Magnit and developed by Ardent Partners and the Future of Work Exchange, we have unveiled some new strategies that can assist enterprises in augmenting services procurement in a Future of Work era:
The large cost savings opportunities that exist for most enterprises in services procurement and the management of SOW-based services make it the next, big frontier for leaders of the extended workforce to tackle. However, a general lack of rigor, combined with issues such as globalization and uncertain economic times, are limiting business leaders’ ability to approach this complex area of spend in a more transformational way.
For enterprises to reimagine the approach to services procurement, they must follow a new model that blends Future of Work accelerants, dynamic data and intelligence, real-time automation, next-generation workforce management technology, and a willingness to adapt and adopt agile solutions.
This Ardent Partners and Future of Work Exchange research report will discuss how businesses can transform their services procurement and SOW (“Statement of Work”) management programs by (1) modifying buying behavior with advanced automation, controls, and data, and (2) developing an impactful initiative that leverages expert services and solutions.
Click here to download the new research study.
