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What is “The Future of Work”?

The state of talent and work in 2022 is very different than it was only several years ago. And, it is entirely different than it was a decade ago. Far beyond the recent impact of the COVID-19 pandemic, major societal changes, the evolution of the worker’s mindset, the realm of innovative technology, and the shifts in talent acquisition have created a new future – “The Future of Work” – one that impacts all workers and all employers. And that future will be based in agility, flexibility, and the transformation of the modern business.

As businesses seek to thrive in these evolving times, it is critical that they base their operative frameworks within the ideal “future state” of work, one that prioritizes better business outcomes and the overall end-to-end optimization of how work is done. Ardent Partners and the Future of Work Exchange define the Future of Work as the strategic optimization of how work gets done through 1) the evolution of talent engagement, 2) the advent of new technology and innovative tools, and 3) the transformation of business standards. Businesses across the globe believe that many significant Future of Work shifts will force them to reevaluate their current work standards, policies, and general practices.

Talent-led shifts, such as worker empowerment (which is fueling “The Great Resignation”), the continued impact of the extended workforce, and the advent of new talent engagement technologies, like direct sourcing and talent marketplaces, are fueling a new era of the workforce.

The power of next-generation technology and innovative tools, particularly digital workspaces (for remote and hybrid work), blockchain, digital wallets, artificial intelligence and machine learning, digital staffing, and talent technology ecosystems, are enabling businesses with the necessary tools to truly optimize how work is done.

The transformation of business thinking, including a focus on diversity, equity, and inclusion (DE&I), developing a more flexible workplace culture and working environment, and creating an agile framework for how talent and work intersect, is a foundational element for how enterprises can future-proof work.

In the coming months and years, businesses will require a deeper understanding of the tools, strategies, and approaches that will ultimately drive the optimization of how work is done from talent, technology, and business transformation perspectives.

Christopher J. Dwyer is the Senior Vice President of Research at Ardent Partners and the Managing Director of the Future of Work Exchange. Connect with him on LinkedIn or send him a note at cdwyer@ardentpartners.com.

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Six Big Future of Work Predictions for 2022

It’s impossible to capture every single possibility for the Future of Work in a single article. What we can do, however, is pinpoint five of the biggest possibilities for work optimization in the year ahead.

Before the path to predictions start, I think it’s important to chat about some caveats here. We are in a much different place than we were a year ago at this time. So, in talking about the future of remote work, the year ahead isn’t going to revolve around whether or not it’s beneficial and viable (which, yes, IT IS!), but rather transforming non-traditional workplace environments into more effective and productive settings.

Without further ado:

  • Since we teased it above: the digital workplace and the digital workspace will converge. There’s a stark difference between the “digital workplace” and a “digital workspace.” Digitization, as part of broader digital transformation initiatives, has long entailed replacing core pieces of enterprise operations and processes with repeatable, scalable, and interconnected automation. The digital workspace, on the other hand, involves the enablement of truly digital, virtual, and automated access to productivity and collaborative tools for workers no matter where they are located (in the office, on the road, in their home offices, or at their kitchen tables).
  • The solution to the “Great Staffing Shortage” and “The Great Resignation” revolves around worker prosperity. The one thing that is maddening around the so-called “Big Quit” is that there are so many leaders around the world that cannot grasp the reality of why workers are leaving; on the surface, there are a variety of reasons that include equitable treatment, better compensation, better working conditions, more flexibility, etc. However, dig deeper and “worker enlightenment” shines: the workforce wants to prosper.
  • Data remains important, but intelligence becomes the gamechanger. In today’s talent tech ecosystems, there are several key platforms from which data flows freely: VMS, HRIS, extended workforce systems, direct sourcing platforms, and proprietary tech offered by MSP solutions. The candidate, FTE, non-employee, freelancer, and professional services data that can be extracted from these solutions presents businesses with an opportunity to derive true total intelligence and allow hiring managers to execute real-time decisions based on the depth of skillsets and expertise within the company’s total talent network. In an age when staffing shortages are the norm, a difference of just a day or two can have major ramifications on the success of a new project or initiative.
  • Culture becomes the most critical non-technological Future of Work attribute in the year ahead. Businesses have long been successful despite their culture; in 2022, the average enterprise will thrive because of their culture, not in spite of it. Empathetic leadership that converges with an inclusive workplace, environments that promote the power of the worker, and an overall positive, engaging candidate and worker experience are factors that will enable businesses to retain talent, drive talent attraction, and, most importantly, attain true talent sustainability.
  • The extended workforce continues to grow. This is a prediction that I’ve been making every year for the last dozen or so years, and, I don’t see it changing in 2022. The extended workforce is founded on agility and flexibility, consequently the two biggest areas of need for businesses as they traverse yet another pandemic-led year in which work and talent evolution is the norm. Closing in on half of the globe’s entire workforce, the extended workforce will become even more of a competitive differentiator in addition to the business continuity and “elasticity” that it drove over the past two years.
  • “Adaptation” molds the way businesses adopt, leverage, and scale innovation. I remember becoming a bit bored of the “digital transformation” discussions of a few years ago, with too many conversations around automating pieces of the business that should have been automated years and years ago. When the pandemic hit, enterprise technology took on a whole new meaning, one that unified the way businesses interacted with customers, suppliers, and their remote workforce, while also developing a culture of real business agility that could help the greater organization better adapt to changing times. Whether it’s core workforce management technology, blockchain-enabled operations, AI-fueled analytics and data analytics, or digital staffing, businesses in 2022 will find that the way they adapt to evolving times will dictate and shape the very ways the harness the power of innovation.
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What Does 2022 Hold for the Future of Work?

Over the past several months, I’ve written extensively about the evolution of talent and work and what it means for the modern business. Today, we collect various thoughts, insights, and predictions from extended workforce, contingent workforce, digital staffing, direct sourcing, and HR technology leaders about the key trends that will shape the Future of Work in the year ahead:

Kevin Akeroyd, CEO, PRO Unlimited

The importance of data:The future of external workforce management is data-driven. And as the world of work continues to evolve, talent becomes more geographically dispersed, and top talent becomes even more sought-after, “five-star” data has become critical to capitalizing on both worker quality and savings opportunities worldwide. In 2022 and beyond, we will see the increasing importance of quality data within non-employee workforce programs and how it can drive significant program benefits.”

Direct sourcing and leveraging your company’s brand: In the new era of integrated workforce management and heightened competition for key talent, organizations are adopting new processes and enabling solutions – such as direct sourcing – to maximize talent, no matter when and how that talent is sourced/engaged or how it ends up being categorized and classified. Historically, talent acquisition teams have long relied on employer branding for permanent employee hiring, while not being fully aware of its power for the other half of the workforce (contingent). In contingent direct sourcing programs, leveraging employer brand is essential to maximizing talent acquisition effectiveness and, therefore, multiplying positive financial benefits. Given this, most enterprises should be taking steps toward adopting contingent direct sourcing to meet its non-employee program and organizational goals.”

The benefits of the integrated workforce platform:More than ever, enterprises are finding they need to address a greater and more complex set of requirements to manage their expanding multi-category, multichannel, non-employee workforces, which poses new challenges and questions for organizations. For example, the number of technology and service solutions has been significantly increasing across established and new solution categories. It’s no longer just a program management office and a Vendor Management System (VMS), which presents enterprises with the challenge of choosing between a single vendor or multi-vendor approach. Leveraging an adaptable, scalable, and fully-integrated workforce management platform provider that offers an ecosystem of software, professional services, and total talent intelligence will be key to an organization’s success.”

Brian Hoffmeyer, SVP of Market Strategies, Beeline

“2022 is going to bring more of the same things that we saw in 2021 and that is (at least mostly!) a good thing. The extended workforce will continue to grow in importance to companies of all types and talent shortages will likely get even worse. Taken together those two things will push companies to look to expand the markets and places they find talent in, continue to reinforce the intersection of quality, time-to-fill, and cost (rather than a myopic focus on just cost savings), and underscore the importance of talent diversity (and related initiatives like upskilling and giving people second chances). Companies need to ensure that their extended workforce programs consider all of these things and that they set goals that are directly tied to company strategy.”

Neha Goel, VP of Marketing, Utmost

“Extended workforce systems must be worker-centric, making it easy to take into account the various needs and preferences of the worker, allowing them to be mobilized in a scalable way. They also need to give workers and suppliers more control over their data and how they interact with technology, providing the flexibility and configurability necessary for them to get work done.”

“Flexibility comes in many forms, both in remote vs. office settings, and includes how workers set their schedules. If you aren’t actively listening to what your workforce wants and providing the technology that makes it possible to seamlessly engage and communicate with them in this new world, you will miss out.”

Saleem Khaja, COO and Co-Founder, WorkLLama

“While the usual priorities around cost optimization and DE&I will stay top of mind, there will be an increased focus on talent wellbeing and tools that will contribute towards that, e.g., tools that maximize efficiency while minimizing stress in the new way of doing work, tools that predict outcomes towards achieving this objective both from a talent and organizational perspective, etc.”

Sunil Bagai, CEO, Prosperix

“I predict that there will be some banner acquisitions for talent and workforce solutions in 2022. I also expect that some of the big investments that have happened this year in startups will go bust. The technologies that I expect will gain momentum are ones that tackle the end-to-end lifecycle of hiring, facilitate hybrid work, and infuse blockchain for transparency, faster outcomes and automation. 

“What 2021 showed is that there is a huge appetite for talent and workforce solutions. 2022 will carry forward that same momentum into new offerings, investments and acquisitions. The areas to keep an eye out on are consolidation of marketplaces, enterprise solutions that combine direct sourcing, VMS and ATS together, and an infusion of blockchain technology for facilitating frictionless transactions.”

Allison Robinson, Co-Founder and CEO, The Mom Project

“By 2025, millennials will make up 75% of the workforce, and they are the most diverse in American history. If you aren’t actively creating a diverse and inclusive environment for future talent that is front and center in every aspect of your business and culture, you will miss out on this talent. Technology investment and digital transformations mean little without the commitment to a more diverse workforce behind them to drive results.”

“The end of 2021 marks a critical moment as talent – and moms specifically – re-enter the workforce, but they are not looking to go back to how it was before. They are looking to continue fueling progress with a more flexible, supportive and more human Future of Work.”

Wayne Crowley, SVP Talent Solutions RPO, Manpower Group

“We’ve realized a seismic shift in employment control away from employers to the talent these employers need. Rigidity in hiring processes, work location, compensation, and work schedules will severely limit employers’ choices for finding candidates with the skills they require. Employers of all sizes, brands, and industries should revisit their employee value propositions to make sure there is resonance with the talent they seek.”

Sam Bright, Chief Product & Experience Officer at Upwork

“We’ve seen monumental disruption occur in the workforce over the last two years. The Great Resignation has shown us that generations-old beliefs about the world of work have been upended. ‘Remote natives’ have become the norm, just as digital natives before them. Remote freelancing has become an essential part of the U.S. labor market and economy – contributing $1.3 trillion in 2021 alone – and we’ve seen firsthand how organizations effectively use marketplaces like Upwork to engage highly-skilled independent professionals to grow, scale and reinforce their teams. 

“Our 2021 Freelance Forward report found that freelancing increased to the highest share of the labor force in the eight years that we’ve been surveying, and we see this continuing into 2022. Hybrid, distributed, flexible work models are the future of work. To succeed, business leaders must shift how they look at their workforce and create hybrid teams made up of full-time employees and independent professionals, so they can be appropriately resourced to charge ahead on their critical business initiatives, no matter how complex or tight the timeline is.”

Tammy Browning, President, KellyOCG

“Heading into 2022, a trend that we’re watching closely is employee experience. As the labor market tightens, building a comprehensive and positive employee experience is critical for greater retention, productivity, and engagement and translates to better business results. Organizations that want an edge on their competition and are driven to succeed in the war for talent are focused on employee experience. In fact, our research finds 91% of leading companies say that improving the employee experience is as high a business priority as improving the customer experience.”

We expect 2022 will bring a greater need for organizations to adopt a single robust talent management platform. According to our research, 72% of executives say they should adopt a talent management platform and use predictive analytics to determine future talent needs, but less than a third are using technologies to achieve these goals. As more employers embrace all forms of talent, hiring managers will require a tool that provides a complete view of their contingent and third-party workforce as well as relevant workforce analytics to make strategic decisions about future workforce needs.

Matt Pietsch, Chief Strategy Officer, High5

“Organizations need to be ready to embrace managed direct sourcing by forming strategic partnerships, not simple vendor or supplier relationships, with partners that can execute on a strategy that incorporates People, Processes and Technology in order to win the war for talent.”

“Work with a workforce solution company that understands the importance of leveraging your brand and working as a seamless extension of your talent acquisition program, regardless if it is full-time, contingent, EOR/payroll, etc. This is one way to ensure an effective candidate experience and a much more efficient recruitment program.”

Taylor Ramchandani, Vice President of Strategy, VectorVMS

“In 2022 I believe that the candidate experience for the contingent workforce is going to be paramount. With the power sitting with the worker, regardless of employment determination, organizations need to prioritize being a desirable place to work. The need for a positive candidate experience will drive greater adoption of direct sourcing platforms, diversity initiatives across the workforce, learning opportunities and more for the extended workforce.”

Jenna Dobbins, VP, Human Resources at Pontoon Solutions

Prioritize the value of employee wellness. “For talent providers like Pontoon and our customers, worker wellbeing will be a core tenant in 2022. Talent attraction and retention will be directly correlated with how workers are cared for and how employers meet their needs. We all have a responsibility to put mental health, wellbeing, and inclusivity above all else.”

Cultivate an ecosystem of talent sustainability. “At Pontoon, we have put a focus on employee learning and development in 2021. Our continuous learning culture has resulted in over 78,340 learning hours completed across our colleague population this year. In 2022, we have challenged ourselves to break this record as we continue to upskill our colleagues across Pontoon.”

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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 inclusive 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.
  • Diversity, equity, and inclusion (DE&I) aren’t just buzzwords, but rather truly impactful pieces of the Future of Work movement. Let’s say it again: a diverse talent pool is the deepest talent pool. Bringing in diverse talent sparks innovation by bringing in new voices to the table, including talent from various genders, cultures, and nuero-diverse backgrounds.
  • 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, aspects such as inclusion (i.e., inclusive workplace environments), 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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Welcome to the Future of Work Exchange (FOWX)!

Ladies and gentlemen, Welcome to the Future of Work Exchange!

This site is the culmination of decades of time spent researching and developing the strategies, tools, characteristics, and attributes that have come to define the Future of Work movement, including talent, technology, and business leadership. Powered by global research firm Ardent Partners, FOWX is a first-of-its-kind destination for HR, talent acquisition, procurement, IT, and finance executives focused on the convergence of talent and innovation and the impact that the extended workforce has on business operations and bottom-line performance. FOWX aims to help executive leaders across all enterprise functions optimize how work is done, build the best talent management strategies and programs, and understand the complex technology landscape.

Ardent Partners defines the Future of Work as the strategic optimization of how work gets done through 1) the evolution of talent engagement, 2) the advent of new technology and innovative tools, and 3) the transformation of business standards. Businesses across the globe believe that many significant Future of Work shifts will force them to reevaluate their current work standards, policies, and general practices. All aspects of the Future of Work Exchange will touch upon these ideas and assist business leaders become truly agile and dynamic organizations.

Over the coming years, community members can expect a non-stop stream of great content from our team (and guest contributors) on topics such as digital staffing, remote work and hybrid work models, contingent workforce management, blockchain, artificial intelligence, diversity and inclusion, empathy-led business leadership, direct sourcing, and much more. Our groundbreaking Contingent Workforce Weekly podcast will also be simulcast here on the FOWX.

This September, we will more formally launch the site and introduce a host multimedia assets on the “Exchange,” including exclusive research, conversations with HR, talent acquisition, procurement, etc. leaders that are challenging the status quo and advancing the Future of Work movement, as well as technology leaders that bring a wealth of insights to the evolving world of work.

The Future of Work Starts Here!

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