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THE BEST OF 2021: Let’s Not Ignore Worker Burnout

[We hope you are having a great holiday season! This week, the Future of Work Exchange will highlight the “Best of 2021” as we feature some of our favorite pieces from the past five months since the site launched.]

In late spring 2004, I graduated from Suffolk University with a degree in print journalism. In-between traversing between temporary accounting and finance gigs, I knocked on the doors of every local newspaper in the North Shore area above Boston. Some editors gave me a firm “no” while others offered poorly-paid freelance opportunities to write an article or two week per week. I eventually stumbled into a newspaper office in a larger Boston suburb and spent 45 minutes with the owner and publisher chatting about newspaper layout, local politics, the Red Sox, and more. When he found out that I could write, edit, and design (a “three-tool player” in the world of journalism, a rarity), he hired me on the spot.

During my first couple of weeks, I thought I landed a dream job…right out of college. I was covering political issues, police budget cuts, school committee meetings, and so much more. During my second or third week as “designer version” of my role, when I had to put together nearly 50 pages of ads, stories, features, pictures, etc. using Microsoft Publisher, the owner saw me yawn and rub my eyes. “You’ll do great in this industry, kid,” he said. “As long as you don’t get tired, you’ll be fine.” I thought he was joking, so I smiled. And less than a year later, I left the industry for good.

I clocked more 18-hours days than I could remember. I once worked 28 straight hours because a co-worker up and quit during an argument with the owner. In order to attend a Red Sox game (during their magical 2004 season, no less!), I had to make up the work when the game was over (at 10:30pm). When those same Red Sox won the World Series for the first time in 86 years, I wasn’t at home celebrating; I was in front of a desktop computer putting together my second of three newspapers that evening. At the age of 22, I was burnt out, unhappy, and regretting having a dream that involved writing for a newspaper.

Nearly 17 years later, the very problem of worker burnout is unfortunately all too-common.

Business professionals are facing an epidemic on top of a pandemic: extreme burnout and work fatigue. Eighteen months of combating an increased workload on top of managing remote learning, an extreme lack of social interaction, and a rollercoaster ride of anxiety during the worst public health crisis our our lifetime. Some industries (such as healthcare and human medicine, veterinary medicine, light industrial, etc.) have experienced such an increased level of work that employees are facing the worst burnout issues of their careers. Staff shortages have been to blame for the majority of burnout cases, as businesses are often forced to “do more with less” in a period of continued uncertainty. And, within sectors that have experienced “boom” times over the past year, there has been a greater demand for products and services, resulting in organizations placing even more pressure on their workforce to perform.

In addition, workers that have moved to fully remote or hybrid models still routinely face a “blurring” of work and life balance, with care for children and their homes (on top of an additional workload) contributing to late nights on the computer, extended time on mission-critical projects, and work on the weekends. Worker responsibilities have surged, as well, as businesses seek to align staff shortfalls with the existing workforce.

Unlike pre-pandemic times (when burnout was still very much an issue), employees facing the epidemic of burnout now also have to contend with additional social, political, and health issues that are all comprise the world that is 2021. And it’s so much more than simple “stress,” too: mental anguish stemming from a workplace environment (and YES, a home office counts!) can have significant ramifications on business professionals, including irritability, physical illnesses, mental health issues, waning productivity, and, worst of all, a constant questioning of if the position/role (or, even worse, the career itself) is worthwhile.

Here at the Future of Work Exchange, we’ve talked at-length about the value and impact of flexibility and empathy in how executives manage their workforce. Business leaders can extend these concepts to ensure that they address the core issues behind worker burnout and improve overall work-life balance. To start, organizations must:

  • Institute deeper communication between managers and staff. Workers aren’t always willing or able to give away information in a conversational setting with managers, and, managers shouldn’t be playing coy with their workforce’s emotions. Open up the proper channels of communication and get right to the issues at hand: leaders asking if their employees how they feeling and allowing them to freely discuss the physical and mental impacts that all avenues of work are having on their work-life balance. Communication may seem like a gigantic obstacle, but more often than not, once the gates of discussion are open, both sides will begin truly understand the perspectives of what is occurring from a burnout perspective.
  • Provide a more flexible system of paid time off, vacation, and mental health support. Scroll through LinkedIn on any given day and you’ll read about various companies taking a progressive approach to workforce management, whether it’s offering extended time off, additional benefits for fully-remote workers, and services/offerings for mental health support. No worker that’s currently clocking 60-hour weeks will turn down an opportunity to develop a better plan for vacation or time off. Although workers with mental health issues may be hesitant at first, once they feel comfortable taking advantage of such benefits, they should utilize whatever the enterprise offers for mental health support.
  • Consider a dramatic short-term shift in the overall workplace structure. The long-vaunted “four-day workweek” has been effective for some businesses over the past several years, however, not all organizations could shift to this model and be successful from a productivity perspective. With that said, though, running such a dramatic short-term experiment could reveal so much about its longer-term success a viable option…quite simply: if you haven’t tried, how do you know it won’t work? Now is the perfect time to move to a four-day workweek, especially with many return-to-office plans on hold due to the continued impact of the Delta variant of the coronavirus. If a two-month experiment reveals that workers are happier, more productive, and better engaged with their roles and with each other, then it’s an experiment worth conducting.
  • Develop a direct line of collaboration regarding upskilling and reskilling opportunities. Although not a front-and-center issue when it comes to worker burnout, there is sometimes a hidden root cause: a misalignment between a worker’s total skillset and the work they are performing within a stressful or demanding environment. It’s not so easy juggling a career with an anxious home life in what was supposed to be the waning months of a pandemic but has now turned into a horrifying repeat of the early months of 2021. Managers must institute a direct line of communication about career paths and “where” workers want to be in the future. If there is an opportunity to undergo training for a different unit or department, there’s no better time than now to kickstart that initiative before burnout gets worse. The last thing executives want to experience is another period like this past spring, which were the largest on record regarding worker resignations across the United States. Existing experience and expertise is always going to be an incredible benefit, even if the long-term fit between the worker and his or her current role isn’t set up for long-term success. Employers must give these workers the opportunity to leverage their unique talents and apply those skillsets to other facets of the greater business.
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THE BEST OF 2021: What is the Future of Direct Sourcing?

[We hope you are having a great holiday season! This week, the Future of Work Exchange will highlight the “Best of 2021” as we feature some of our favorite pieces from the past five months since the site launched.]

Businesses learned a harsh lesson in 2020: those that could not adapt to the major shifts in work optimization were the ones that could not survive months of extreme disruption. As 2021 careens towards its end, another new year is on the horizon, and businesses must prepare for perhaps the most critical period of their history given the direction of the economy and the labor market.

The shift towards “flexibility as the Future of Work” means that enterprises must execute in a more dynamic manner. The companies that thrived and continue to thrive are the organizations that understand and embrace 1) how they want to get work done, 2) the talent and technology needed to get that work done across both the short- and long-term, and 3) the proper balance between human and automation.

In looking at various perspectives in how work was transformed over the past 18 months, there is one strategic program that businesses seem to gravitate towards in convergence with the talent-led world in which we now live: direct sourcing.

Going into 2020, direct sourcing and talent pools were the #1 and #2 (respectively) priorities for businesses; even the most forward-looking organization could not imagine at that time just how critical a program it would be in the face of unprecedented change. Even the most basic direct sourcing programs drive table-stakes value to their owners through a combination of on-demand, plug-and-play talent and a level of hard cost savings. However, many attributes of the world of work and talent were fast-tracked over the past 18 months due to the most serious public health crisis of our lifetimes and its long-ranging ramifications across the scope of business, worker, and personal perspectives.

Direct sourcing went from being an additional way to find talent to a revolutionary means of tapping into the extended workforce to drive better business outcomes. As the business world continues to evolve, even in the throes of a “Great Resignation,” the lowest unemployment since the pandemic began, and “power” shifting to the worker, the continued transformation of talent engagement is now a standard. The question then becomes: How do businesses continue to respond in the wake of being forced to reimagine talent acquisition, human capital, and the agile workforce?

Direct Sourcing 2.0.

“Direct Sourcing 2.0” follows the next generation of direct sourcing strategies and is fundamentally rooted in the linkage between key technological arenas, a renewed focus on the candidate experience, a seamless connection between talent pools and the projects and roles that require specific expertise, and a retooled “hiring manager experience” that takes into account Future of Work-era innovation.

Why the shift to Direct Sourcing 2.0? Isn’t direct sourcing effective in its “1.0” version? Of course. Direct sourcing and its traditional phases (including talent curation, talent pool segmentation, integration into core recruitment streams, talent nurture, etc.) are driving increased value within those organizations that are currently leveraging standard programs. However, that doesn’t mean it can’t evolve. Take into account the major shifts in both business and candidate behavior over the 18 months, and, especially, over the past several months:

  • The “candidate experience” is far deeper than we ever imagined. It’s not just about ensuring that candidates have a positive experience when engaged, but rather extending that experience into areas such as when they are engaged, how they are engaged, the communication methods used for reach out, methods of onboarding and offboarding (seamless, digital, and virtual!), etc. Recruitment marketing automation, digitized referral campaigns, and a mobile-optimized means of communicating with hiring managers all contribute to the next great era of the candidate experience.
  • Hiring managers should be engaging and sourcing talent in a consumerized and enhanced manner for the sake of efficiency and quality. This doesn’t mean that we have to completely meld e-commerce technology with direct sourcing platforms, however, it does translate into taking into account just how effective existing processes are within the hiring managers’ total workload. The greater business must provide hiring managers with the necessary trust and education to ensure that these leaders are converging the company’s main goals and objectives with how they find, engage, and source talent (which will result in superior role-to-candidate matches). In addition, harnessing the power of next-gen direct sourcing automation, recruitment marketing technology, and similar solutions will boost the hiring manager experience.
  • Businesses must go “beyond the brand” and prove that they are fostering truly inclusive workplace cultures that resonate with candidates. An organization’s “brand” can be a powerful tool for direct sourcing; candidates tend to flock to those companies that align with their own beliefs and values. However, businesses must move beyond the brand and incorporate deeper elements of the organization in how it applies Direct Sourcing 2.0 strategies, including communicating its purpose and vision (and ensuring that it resonates with candidates) and how well its preferences in how work is done are broadcast to workers (fully-remote, hybrid, on-site, etc.). A purpose-driven organization wants to establish a more trustful relationship with its candidates, share its core cultural values with them, and communicate how open it is to the attributes desired in today’s “Age of the Worker,” such as flexibility, career development opportunities, and the enablement of core skills growth.

Look for the new Ardent Partners/Future of Work Exchange research study, Direct Sourcing 2.0, in January 2022.

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THE BEST OF 2021: Let’s Just Call “The Great Resignation” What It Really Is: A Talent Revolution

[We hope you are having a great holiday season! This week, the Future of Work Exchange will highlight the “Best of 2021” as we feature some of our favorite pieces from the past five months since the site launched.]

My dear friend and fellow agile workforce pundit Jon Younger ends his frequent Forbes articles with a phrase that is essentially perfect for what is happening in today’s labor market: Viva la revolution!

Call it The Great Resignation. Call it The Great Reassessment, or even “The Big Quit.” No matter what name is tied to what’s occurring in this frenetic, volatile talent economy, it just means one thing: there’s a revolution of talent happening right now.

Yes, major pieces of the “worker-led” transformation of talent and labor are owed to a market that has been accelerated since Day One of the pandemic, as many talented professionals (and the businesses they work(ed) for) experienced the biggest disruption of their their corporate lives. Remote work became a norm, flexibility was a baseline, and empathy became a foundation for how leaders treated their teams.

However, there are other attributes that are a long time coming, such as equitable treatment, fair and living wages, and inclusive workplace cultures that promote safety and openness. There’s more discussion around worker burnout than ever before. And, critically, there’s a clear element of diversity that permeates through the job market, as well.

Looking at all of these elements converging, one would wonder, “Why would we ever go back?”

Those that worked remotely pre-pandemic can now validate the productivity concerns of such a work model. Those businesses that experienced an increase in productivity since the pandemic began now understand that they can trust their staff to get work done away from the office. And it’s not just a remote vs. in-office issue: think of the core societal changes that occurred in tandem with the pandemic.

Put it all together and this is what you get: millions and millions of talented professionals that know their value, know that they can work flexibly, and know that they deserve better working conditions from various perspectives.

Since the Bureau of Labor Statistics started tracking statistics on the number of workers who voluntarily left their positions, there was no greater month for turnover than this past August, when 4.3 million Americans left the workforce (the previous record was May 2021, only a few months prior). The fact that the entire summer experienced somewhere in the neighborhood of 17+ million resignations (over 20 million if you count April in these figures) speaks volumes about where we are collectively headed.

Just a month or so ago, discussions revolved around whether businesses or workers would blink first. New BLS data proves that workers aren’t coming back unless organizations completely revolutionize their stance on the employer-employee relationship. It’s not just about compensation, it’s the fact that workers desire true flexibility. They crave work-life balance. And, most importantly, they want their own values and purpose to align with those of the businesses they choose to support.

Workers that traditionally “job-hopped” are finding that they can do so much more easily in today’s market, while workers that were once “lifers” question their career choices during a time that forced all of us (business aside) to reevaluate our lives in the face of the worst and biggest health crisis of our collective lifetimes. When people witness a family member falling ill and succumbing to a nefarious pathogen, and, when they see the terror across the nation’s hospitals as they collapse from surge after surge, it results in an “awakening” that has a cascading effect on both personal and professional thinking.

If workers aren’t satisfied, why would they stay put? With so many (read: millions!) of open positions across the country (and world), most of which offer consistent flexibility and a more soulful candidate and worker experience, why would any talented individual, in this current global landscape, want to “waste” their valuable months and years with an organization that doesn’t offer everything that they want and need? The pandemic reprogrammed many facets of human thinking; it was only natural that the same transformational mindsets would alter how we, as people, reevaluate our choices as business professionals.

Many of us lost family members, friends, and colleagues to COVID-19. Some of us attended funerals with limited family members due to social distancing guidelines. We’ve watched the horrors of the insides of ICUs on the evening news or on social media. Even though things are better than they have been in months, the pandemic is still a part of our everyday lives (even with the modern marvels that we have in coronavirus vaccines). When these morbid aspects of life creep into how we think about what exactly it is what we want from our lives (which, of course, include our careers), it’s very normal that we’d question why we spend time working for an employer that doesn’t offer flexible hours, doesn’t offer equitable treatment and wages, and doesn’t enable remote or hybrid work models.

Workers are human, and humans will always modernize their thinking due to the world around them. What is happening right now in the labor market is certainly a convergence of many factors that would have eventually accelerated critical shifts in talent engagement…however, these transformations are, to a greater extent, the result of humans questioning their choices moving forward and ensuring that one of the biggest pieces of their lives, their careers, are satisfying the personal, professional, and emotional aspects of their lives.

This isn’t just a reaction to a pandemic and its wide-sweeping business ramifications, it’s a true revolution of talent that will forever shape the Future of Work.

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What Did We Learn About the Future of Work in 2021?

I’m sure that the end of any year, not just 2021, warrants some level of deep reflection. However, the year that we just collectively experienced certainly calls for some retrospective insight, doesn’t it? 2021 marked the second full year of the worst public health crisis of our lifetimes and along with it, many transformations in how we all viewed both our personal and professional lives. From the business perspective, 2021 brought a host of talent-, technology-, and forward-thinking-led shifts that have forever altered the way we conduct business. Here’s what we learned:

  • No matter how rooted a business leader is to pre-pandemic times, remote and hybrid work are now foundational facets of the working world. Unified communication tools, better collaboration between leaders and their staff, and the general shift towards “flexibility” are all attributes of the new world of work.
  • Call it “The Great Resignation” or the “The Big Quit,” but what’s really happening is a true revolution of talent. The “talent revolution” is occurring all around us, with millions of talented professional voluntarily leaving positions in search of better working conditions, more flexibility, more empathy from leadership, more positive workplace culture, and, of course, better pay. The talent revolution is a stark reminder that leaders must reimagine talent engagement and talent acquisition if they are to thrive in the new year.
  • The extended workforce drives the Future of Work. Nearly 47% of all talent today is considered part of the extended workforce, a 10% leap from where it was at the every beginning of the pandemic. It’s not just a matter of tapping into the “evolution” of contingent labor, but rather truly robust communities of talent that take various shapes, including talent pools, talent marketplaces, niche staffing suppliers, personal and private talent networks, etc. Today’s extended workforce is a key element in how work gets done.
  • Empathy is a key Future of Work attribute. Leaders have to be in tune with the “human” side of its staff, as workers across the globe face personal and professional challenges that continue to eat into their thinned patience after 20+ months of pandemic ramifications (including severely ill relatives, lack of daycare, remote schooling, facing COVID themselves, etc.). Empathy-led leadership is, essentially, the only way forward.
  • Direct sourcing has become a transformational means of finding, engaging, and retaining top-tier talent. By the end of 2022, nearly 30%-to-32% of all talent will be engaged and acquired via direct sourcing, according to Future of Work Exchange research. Direct sourcing isn’t just a way to segment “known” talent into talent pools, but rather a strategy, program, and set of automated tools to develop true talent sustainability via recruitment marketing, leveraging the power of enterprise branding and culture, and cultivating deeper relationships with candidates.
  • Services procurement strategy is due for an overhaul. Collaboration, rather than control, is the Best-in-Class way to enhancing management of an extended workforce category that sometimes (or, often) dwarfs traditional staff aug from a spend perspective. Procurement executives must reevaluate how they approach SOW management and services procurement in 2022.
  • Talent communities will be more critical than ever in 2022. As we wrote recently: “The power of talent communities is driven by the innovative ways businesses are leveraging talent pools, talent networks, and talent clouds, converging with the nuances of the employer brand, social and emotional connections with both active and passive candidates, the the ultimate development of omnichannel, experience-driven candidate engagement.”
  • Business leadership needs to change its mindset heading into a new year. The talent revolution, combined with the pressure of a new coronavirus variant in a globalized yet disruptive world, means that leaders and executive personnel cannot go into 2022 with archaic strategies for managing operations and staff. Whether it entails “reimagining” or “rebooting” core leadership strategies, flexibility, agility, and a better understanding of employee emotional wellbeing (yes, including empathy!) are all necessary moving forward.
  • Technology is often considered central to the Future of Work movement, and 2022 proved that many times over. From digital staffing and direct sourcing to artificial intelligence and blockchain, the pathways of technological innovation all lead back into the very idea of work optimization.

 

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Here’s Why Direct Sourcing Should Be The Top Priority for 2022 Workforce Planning

A few years ago, I began noticing a trend in the greater workforce industry: more and more businesses were eager to integrate “alternative” talent channels into their recruitment mix. By “alternative,” By this, I don’t mean adding new staffing suppliers or a “touch” of talent marketplaces here-and-there…this was the beginning of a full-on progression of talent engagement that is actively culminating in a reimagining of talent acquisition and workforce management approaches.

As said many times here on the Future of Work Exchange, the top two priorities for businesses entering 2020 were, respectively, direct sourcing and talent pools. These two inherently-linked attributes, at that time, represented a way for businesses to blend new channels of talent into their existing expertise network by developing “BYOT” (Bring Your Own Talent) pools, freelancer benches, and more formally integrating talent marketplaces into recruitment stream (i.e., new requisitions having the ability to pull talent from marketplaces and direct sourcing channels connected to the VMS or HRIS platform).

The COVID-19 pandemic presented a two-fold opportunity for businesses in regards to this “reimagining” of talent management: curate top-shelf talent and expertise for when the need arose to utilize these highly-qualified skillsets, and, nurture and foster curated candidates in such a way that they felt connected and engaged to the employer culture and brand, so that when they were required for a critical project or initiative, they would be more likely to accept an assignment. The main business workforce strategy was direct and simply, yet incredibly difficult to execute: create true workforce scalability.

Ardent Partners and Future of Work Exchange research has found, over the past two years, that the top benefit of leveraging contingent or extended talent is the ability to be scalable and flexible in how the typical enterprise structures its workforce architecture. This level of workforce scalability (and flexibility) allowed businesses to navigate uncertain times, especially when the rollercoaster early months of the pandemic created boom-or-bust demand for specific industries and sectors.

Direct sourcing no longer represents one of many alternative channels of talent, but rather a repeatable, scalable, and digitized way of developing a deeper pipeline of top-tier skillsets and expertise. Here’s why it should lead workforce planning for 2022:

  • Direct sourcing is a set of processes and solutions that actively drive workforce agility and flexibility. Today’s professionals are more focused on work-life balance, while also desiring greater independence. Among many things, the “Great Resignation” of 2021 indicates a seismic shift in power towards the worker and away from the employer. This may or may not be permanent (the “power shift” to the worker seems likely to be a critical aspect moving forward), but businesses, nonetheless, face constant pressure to deepen human capital and future-proof skillsets within their total workforce. Now, more than ever, enterprises require a steady flow of new workers to keep pace with their competitors. Now, more than ever, enterprises need superior engagement capabilities. Now, more than ever, enterprises need a new approach…all factors that tie back to direct sourcing.
  • Broad-based hiring and direct sourcing are now inherently linked. Layering a broader search for talent into direct sourcing is about changing behaviors and removing hiring barriers and unconscious bias from talent engagement and talent acquisition. Utilizing technology to help guide and enforce a new mindset can be extremely valuable and create awareness that the deepest talent pools are diverse talent pools.
  • The concepts behind “Direct Sourcing 2.0” are what will take direct sourcing programs to the next level. The new Ardent Partners/Future of Work Exchange research study, Direct Sourcing 2.0, unveils the nuances of DS 2.0 and what they mean, including: supercharging talent pipelines, leveraging AI and machine learning to enhance candidate assessments and screening, identifying the best modes (time, style, etc.) of candidate outreach, digital recruitment marketing, automated referral management, enhancing the hiring manager experience, etc. The very ideas behind Direct Sourcing 2.0 are transformational approaches (both strategic and technology-led) that push direct sourcing programs into a new Future of Work stratosphere by enabling enterprises with more powerful and agile tools for new candidate engagement, collaboration, nurture, and hiring.
  • Direct sourcing is the gateway to thriving in 2022 via a powerful, self-sustaining agile workforce. Direct sourcing is very effective in its current state, but the stakes keep rising. The increasing need for talent and the ongoing challenges competing for it mean that enterprises must continue to challenge the status quo and operate on the bleeding edge in order to stay on top. By blending traditional direct sourcing approaches (curation, segmentation, etc.) with “2.0” attributes (digital recruitment marketing, AI-led assessments, more focus on the candidate experience, etc.), businesses will ensure that, in yet another year of uncertainty, they will be positioned to optimize how work is done.
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The Key Differentiators of Best-in-Class Extended Workforce Management

Technology utilization and core competencies are the backbone of the Best-in-Class contingent and extended workforce program. However, there are other next-level differentiators that are driving innovation within these organizations and positioning them to become more agile and dynamic as the world of talent and work around them continues to shift and change:

  • Eighty-two percent (82%) of Best-in-Class enterprises have integrated SOW management and services procurement into their core CWM programs, a fact that reinforces the need for businesses to effectively track, monitor, and manage all elements of their extended workforce (not just staff aug). Often enabled by VMS or extended workforce solutions (and outsourced to MSP offerings), Best-in-Class businesses have integrated capabilities into their programs that include resource-tracking, milestone and delivery date visibility, full sourcing and bidding processes, and other processes required to manage what is often considered the largest chunk of non-employee workforce spend.
  • Nearly 75% of Best-in-Class businesses have a direct sourcing program in place today. Direct sourcing has become synonymous with the continued evolution of talent; businesses that desire true organizational and workforce agility are actively harnessing the power of talent pools (and injecting those candidates into enterprise recruitment streams) as a viable means of reducing talent acquisition costs, ensuring top-tier skillsets and expertise, and structuring a truly dynamic workforce. Direct sourcing allows a business to leverage its culture and brand to attract top-tier candidates that are easily engaged for future projects and initiatives. In a world that has become more digitized (especially in the HR and talent arenas), direct sourcing is becoming a differentiator for the Best-in-Class businesses that actively pursue workforce agility.
  • Seventy percent (70%) of Best-in-Class organizations are currently leveraging a “hybrid” talent acquisition model that utilizes equal parts digital and RPA-led processes (such as artificial intelligence and bots) and traditional human-led strategies and support. This hybrid approach ensures that aspects like repeatability, speed, and efficiency are top-of-mind in talent engagement efforts, while the human elements can deter unconscious bias in any digital talent acquisition initiatives. This differentiator is also a major reason why Best-in-Class businesses have thrived in challenging times; next-level digitization on the front end enables agility, while the human touch on the back end ensures that core cultural objectives are met.
  • Nearly 60% of Best-in-Class businesses currently have the ability to drive total talent intelligence within their programs. As explained earlier in this chapter, total talent intelligence is an incredible differentiator, as it helps businesses determine which candidates and which types of talent are the best fit for a new role, position, or project based on deep total talent data. More Best-in-Class programs are enabled with the required capabilities to execute informed and intelligence-led talent decisions in a real-time and dynamic manner…which, in essence, is the core of true business agility.

In looking at Best-in-Class organizations, the key to success is multifaceted and wide-spanning: embrace the evolution of talent, tap into both traditional and progressive platforms, and leverage next-generation strategies to best align the workplace environment with the best-fit talent and skillsets. Top-performing organizations are leading the next era of work optimization because they are actively adapting to the major shifts in the talent and work arena while also cultivating a culture of agility and flexibility.

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“Talent Sustainability” Is the Next Great Workforce Strategy

It’s not easy out there for hiring managers, HR executives, and talent acquisition leaders. Besides both the personal and professional panic over the Omicron variant (even though we’re still in the throes of Delta’s continued rampage), these roles must consistently battle the ramifications of the so-called “Big Quit,” aka “The Great Resignation,” and otherwise known as “The Great Reassessment,” etc. Around these parts, we understand it’s instead a “talent revolution.”

There have been many theories, approaches, and strategies proposed that could curb some of the effects of The Great Resignation, but even now, there is no cure-all series of processes that can outright solve all of the current talent issues that are plaguing organizations across the world. And, to be honest, having more and more attributes of the traditional employer-employee relationship shifting towards the worker in regards to “power” is something that has been a long time coming. Aspects such as flexibility, empathy, better working conditions, and more inclusive workplace environments are all now table stakes for the modern-day workforce.

One of the key facets of the Future of Work movement in 2021 (and even more so in 2022) is the enterprise’s renewed focus on its human capital and overall depth of skillsets across the greater organization (as 62% of organizations are prioritizing right now, according to Future of Work Exchange research). So many major workforce shifts over the past two years, including the overall desire for real business and workforce agility, mean that enterprises must reimagine how roles, jobs, and projects are executed over the short- and long-term, given the natural progression of market, economic, and corporate factors (not to mention the ongoing uncertainty regarding a true end of the pandemic in the United States and across the world).

In 2022, enterprises must build towards “talent sustainability.” The concept of talent sustainability revolves around the idea that businesses can, through their workforce solutions (such as extended workforce technology, VMS, etc.), direct sourcing channels, and both private and public talent communities, build self-sustaining outlets of talent that 1) map to evolving skills requirements across the enterprise given product development and the progression of the greater organization, 2) reflect existing expertise and skillsets across the enterprise that can be leveraged for real-time utilization, and, 3) allow hiring managers and other talent-led executives to leverage nurture and candidate experience strategies to ensure that all networked workers are amiable and open to reengagement for new and/or continued projects and initiatives.

There are, of course, several caveats to a true talent sustainability strategy that represent several key innovations and forward-thinking ideas. These items, listed below, all meaningfully contribute to this progressive approach:

  • A workforce management “system of record” (i.e., VMS, extended workforce platform, etc.) that can blend both non-employee and FTE data to generate true “total talent intelligence.”
  • Access to on-demand talent communities and talent pools via both direct sourcing platforms and talent marketplace solutions.
  • An artificial intelligence-led architecture that augments and transfers the mobility of talent to where it is needed most.
  • Machine learning- and AI-led candidate assessment, skills validation, and talent fraud prevention.
  • A major emphasis on the depth of skillsets, expertise, and human capital available across the greater organization.
  • Creating a “culture of learning and development” (via upskilling and reskilling opportunities) help the organization hedge against future skill gaps.
  • Joint collaboration between HR and procurement to facilitate total talent management-like capabilities, and;
  • Deeper automation of recruitment marketing, referral management, and other facets of direct sourcing to expand talent pools.

Businesses do not want to be caught off-guard when they have a critical need for specific skills, especially in an era when the vaunted “war for talent” rages on at a level never seen before in workforce management history. The Future of Work is many things, and, talent sustainability is becoming one of its most crucial elements.

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Let’s Not Forget About Contingent Workforce Management (CWM)

The extended workforce has revolutionized the ways work gets done, giving businesses an opportunity to react dynamically to real-world problems and challenges while leaning on an agile network of top-tier skillsets and expertise. Future of Work Exchange research has consistently found that enterprises drive incredible value from the utilization of the extended workforce, especially in the face of a continued global pandemic that has reinforced the need for flexible talent, the ability to scale staff, and align mission-critical projects with all-world expertise.

Ardent Partners and the Future of Work Exchange define the extended workforce as “the evolution of contingent labor and accounts for major transformations and talent shifts happening in today’s world of work and talent. The extended workforce’s strategic value and impact are driven by the utilization of contractors, freelancers, gig workers, talent pool candidates, professional services, and other forms of non-employee talent, and is enabled by innovation within talent acquisition (such as digital staffing, direct sourcing, and talent marketplaces).”

There’s a big piece of the extended workforce value proposition that cannot be ignored: contingent workforce management (CWM). The extended workforce represents evolution and progression, and CWM reinforces the need to apply both tactical and strategic capabilities, as well as the right technology, to drive many layers of value from this growing bucket of talent (which now represents nearly 47% of the average company’s total talent).

The non-employee workforce represents something entirely different than it did years ago. Today’s non-employee talent is a core element to organizational success, enabling businesses with the level of workforce agility required to become more dynamic in response customer, competitor, and market actions. With nearly half of the total workforce considered contingent in some sense, it is incumbent upon businesses to drive maximum value from their extended workforce. Ignoring this area of talent is essentially ignoring almost half of the people running the enterprise – executives that ignore the extended workforce in 2021 are guilty of human capital management malpractice.

There are several nuances to contingent workforce management in 2021, some of which are progressive concepts that reinforce the shifting links between talent and the way work is addressed and done. Other distinctions inherent in today’s extended workforce are direct ramifications of a challenging 2020 and reflect the major shifts in 1) how enterprises now perceive their skillsets and expertise, 2) how these workers support mission-critical projects and initiatives, and 3) how the impact of crucial changes (societal changes, progression of technology, etc.) in the talent acquisition arena will continue to transform how work is done.

In 2021, the average business is actively addressing critical organizational endeavors with a variety of non-employee skillsets and talent, choosing to converge their traditional full-time workers with the unique expertise inherent in the extended talent pool. Future of Work Exchange research finds that the typical business, however, must leverage a series of tool, solutions, and strategies to derive the true value of this workforce:

  • Contingent workforce management practices have long followed a robust blend of technology, process, and strategy orientation that is marked by efficiencies across the end-to-end spectrum of talent and work. Best-in-Class programs are built on core capabilities that drive consistent talent acquisition approaches, proper optimization of talent channels and sources, and cross-functional coordination between key internal stakeholders.
  • Technology and innovation are central to the Future of Work movement. As businesses transform the way they engage and leverage talent, and as they undergo major shifts in work optimization, automation will be the ultimate linchpin for these strategies. Best-in-Class organizations are actively relying on several key technology platforms to better engage talent, enhance workforce management, and drive flexibility and agility, such as VMS platforms, extended workforce solutions, digital and on-demand staffing, MSPs, and direct sourcing technology.
  • Eighty-two percent (82%) of Best-in-Class enterprises have integrated SOW management and services procurement into their core CWM programs, a fact that reinforces the need for businesses to effectively track, monitor, and manage all elements of their extended workforce (not just the contingent laborers). Often augmented by VMS or extended workforce solutions, Best-in-Class businesses have integrated capabilities into their programs that include resource-tracking, milestone and delivery date visibility, full sourcing and bidding processes, and other processes required to manage what is often considered the largest chunk of non-employee workforce spend.

In looking at the role of the extended workforce, the key to success is multifaceted and wide-spanning: embrace the evolution of talent, tap into both traditional and progressive platforms, and leverage next-generation strategies to best align the workplace environment with the ideal-fit talent and skillsets. Top-performing organizations are leading the next era of work optimization because they are actively adapting to the major shifts in the talent and work arena while also cultivating a culture of agility and flexibility.

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The Power of Talent Communities

As we wrote last week here on the Future of Work Exchange, there are many innovative platforms today that are changing the dynamics of talent engagement and workforce management. No longer can enterprises traverse the transformative landscape of talent on their own; technology is no longer the wild card for better enterprise outcomes, but rather the foundational core of how businesses can optimize how work gets done through the power of top-tier talent and expertise.

The very concept of “talent communities” lies somewhere within the power of talent pools (via direct sourcing strategies, and, more specifically, talent curation), the global reach of talent marketplaces, and the continued progression of digital staffing technology. These attributes, combined with the evolution of core workforce management technology (such as Vendor Management Systems and extended workforce automation), present business leaders with something that they’ve truly never had before: the ability to build dynamic, on-demand communities of talent that are comprised of various types of workers that can be engaged in such a way that they drive real workforce scalability.

We’ve all heard various phrases tossed around the past several years: talent pools, talent clouds, talent channels, talent marketplaces, etc. In some way, they are unique depending on usage and purpose. However, many more times, they are similar in scope and deliver exactly what drives real-time responses to new enterprise challenges: agile talent. [While I’m aware that these phrases, over time, have come to mean different things to organizations, the evolution of the labor market and its corresponding technology means that “community” is an ideal catch-all term. The one caveat to talent communities is whether or not they are public or private.]

Talent communities, then, can be described as any network a business relies on to engage talent, foster collaboration with independent workers, and augment the overall breadth of the extended workforce. Contemporary direct sourcing technology allows users to build deep networks that resemble social channels in which businesses can both nurture and engage talent, while today’s VMS and extended workforce platforms offer functionality for injecting that talent directly into organizational recruitment streams. Talent marketplaces, while also offering end-to-end workforce management automation, also play a pivotal role in pushing talent from their networks to directly where hiring managers need them.

Together, these solutions offer businesses the opportunity to build robust talent communities that serve several purposes, including:

  • Creating a groundswell of skillsets and expertise for ongoing talent acquisition initiatives. Just knowing that businesses can leverage on-demand accessibility to top-shelf talent means that any new project or initiative will be supported with the necessary skillsets for completion. In an ongoing war for talent and amidst the so-called “Great Resignation,” many business leaders can be assured that critical objectives will leverage the best-fit talent when, where, and however it is required. Many industries today are facing staff shortages that are draining revenue, alienating customers (and consumers), and, worst of all, destroying productivity. Agile skillsets available in near-real-time? A boon for the enterprises that are feeling the ramifications of “The Big Quit.”
  • Driving true workforce scalability. “Scalability” took on new meaning during the early months of the COVID-19 pandemic. Some businesses faced a revenue shock that forced them to lay off chunks of staff, while others experienced a spike in demand for products and services. The extended workforce became the de-facto face of scalability, and one reason that direct sourcing and talent pools took on such a high profile was that enterprises had the ability to tap into an engaged community of workers that were ready for new opportunities. And, as the ebb-and-flow rollercoaster petered out for some organizations, the temporary staff they had leveraged were free to take on new projects with other businesses.
  • Fostering a level of engagement with talent that helps to develop a better overall candidate experience. The concept of the “candidate experience” didn’t begin during the era of COVID, but well before the crisis. However, the pandemic and its continued labor ramifications (yes, the Great Resignation) exacerbated the criticality of the overall talent experience; business leaders have been pumping more time, energy, and resources into building and curating deeper talent pools by leveraging the power of the employer brand and all that is associated with it (positive culture, spirit of charity, social responsibility, etc.). Too, an enhanced level of candidate engagement is often what is needed to sway passive candidates and convince them to join a talent community.
  • Improving the overall hiring manager experience. Often overlooked because of the bullet directly above, there should be tremendous focus on the overall hiring manager experience, given that these leaders are the ones that are at the forefront of talent engagement and talent acquisition activity. Hiring managers are facing somewhat of an existential crisis: they, too, are feeling the anxiety of staff shortages with added pressure from several stakeholders and functional units to find each department a top-tier level of talent in a short amount of time. Talent communities give hiring managers a built-in leg up on their engagement activity, enabling with them on-demand access to a network of pre-vetted, known, and highly-skilled candidates…making their overall experience that much more seamless (and positive).

We experienced first-hand what is was like to live in a business world perpetuated by uncertainty and consistent worry over the future. The necessary agility required by businesses to navigate the first year of the pandemic was driven by initiatives that began before the crisis took shape, such as utilization of direct sourcing strategies and digital staffing channels. We’ve been learning (actively, mind you) that thriving during the second full year of the pandemic occurred mainly in those organizations that realized the power of talent communities would provide longer-term and deeper workforce scalability whilst boosting initiatives around emotional connections to candidates, and the development of networks that would amplify the workforce agility that is now a prerequisite to moving onto yet another year that will be challenging given the evolving nature of a public health crisis that seems to throw roadblocks even when things seem hopeful and optimistic.

The power of talent communities is driven by the innovative ways businesses are leveraging talent pools, talent networks, and talent clouds, converging with the nuances of the employer brand, social and emotional connections with both active and passive candidates, the the ultimate development of omnichannel, experience-driven candidate engagement.

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A Sneak Peek of the Upcoming “Direct Sourcing 2.0” Research Study

Heading into 2020, direct sourcing and talent pools were the top two priorities for businesses in regards to talent acquisition and workforce management. The strategy and its programmatic components (talent curation, talent pool segmentation, talent nurture, etc.) represented a way for enterprises to tap into a veritable “bench” of talent that is curated by the organization (and would typically include silver medalists, alumni, past contractors and freelancers, candidates driven to career portals or job boards, etc.). By acting as its own recruiting firm, the business (and its hiring managers) are able to reduce hard costs, improve time-to-fill rates, and enhance the overall alignment between open positions and candidates.

Direct sourcing went from being an additional way to find talent in pre-pandemic times to, today, a revolutionary means of tapping into the extended workforce to drive better business outcomes. As the business world continues to evolve, even in the throes of “The Great Resignation,” the lowest unemployment rate since the pandemic began, and “power” shifting to the worker, the continued transformation of talent engagement is now an enterprise standard. The question then becomes: How do businesses continue to respond in the wake of being forced to reimagine talent acquisition, human capital, and the agile workforce?

The answer lies within the evolution of direct sourcing, where the strategy, program, and its associated technology not only take into account core attributes such as talent curation and talent pool segmentation, but also deeper, critical aspects like the candidate experience, candidate skills assessment, the hiring manager experience, automated recruitment marketing, going “beyond the brand,” and the overall “reach” of direct sourcing across all elements of enterprise recruitment.

And now, a sneak peek of the Ardent Partners and Future of Work Exchange research study, Direct Sourcing 2.0:

While direct sourcing as a strategic workforce program is relatively new when compared to more established areas, such as contingent workforce management and talent acquisition, its impact in highly-competitive job markets can be game-changing. Truth be told, even basic direct sourcing programs can drive value through a combination of on-demand, plug-and-play talent, and hard-cost savings. But the pandemic’s impact on the workforce has dramatically accelerated market shifts. Today, talent is scarce and comes at a premium.

As a result, workers are demanding greater flexibility from their employers. They are more focused on work-life balance, while also desiring greater independence. Among many things, the “Great Resignation” of 2021 indicates a seismic shift in power towards the worker and away from the employer. This may or may not be permanent, but businesses, nonetheless, face constant pressure to deepen human capital and future-proof skillsets within their total workforce. Now, more than ever, enterprises require a steady flow of new workers to keep pace with their competitors. Now, more than ever, enterprises need superior sourcing capabilities. Now, more than ever, enterprises need a new approach.

Now is the time for “Direct Sourcing 2.0,” the next generation of sourcing strategies that blend innovative solutions with a renewed focus on the candidate experience and an ability to use talent pools to populate the key projects and roles that require expertise and experience. Today’s business climate has accelerated the need for a reimagined approach to candidate engagement. As the market for talent continues to tighten amidst the lingering pandemic and a surging number of resignations, businesses find themselves in a new kind of “war for talent,” one that is far more extensive and complicated than anything experienced pre-pandemic.

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