CWM Archives - The Future of Work Exchange

How Does The MSP Model Fit into The Future of Work?

General Insights Solution Providers by Christopher J. Dwyer on 02/28/2022

As solutions, they have been around longer than any other workforce management offering in our industry. As brand names, there may be no bigger logos than those synonymous with some of the largest in our space. And, as the extended workforce continues to grow in size, impact, and scope, they have evolved to meet the dynamic needs of businesses across the globe.

The Managed Service Provider (MSP) model has long been a powerful force across the contingent workforce management and traditional recruitment spectrums, offering an end-to-end, outsourced array of tailored, customized, and global offerings that help businesses tap into key staffing suppliers, standardize extended workforce management operations, and enhance the overall approaches to how talent is engaged and managed.

The non-employee workforce was once less than 20% of the average company’s total talent, as recently as a decade ago. With the stratospheric rise of this labor over the past ten-plus years, we’ve collectively experienced and leveraged a slew of both innovative, consistently-progressive outlets (such as VMS and extended workforce platforms), solutions that are actively capturing the power of direct sourcing, and digital staffing and talent marketplace offerings that enable real-time access to top-tier talent and expertise.

The Future of Work demands that business operations be dynamic, repeatable, and scalable. And, to boot, nearly half of the total global workforce is considered “extended” or “agile” in some manner. For service-oriented solutions like MSPs, the question becomes, “How does this model fit into the Future of Work movement?”

The answer is actually quite simple: an evolved model that blends traditional managed services with technological overlays for various “pieces” of the extended workforce lifecycle, combined with key integrations and partnerships with innovative platforms that address niche areas of talent engagement and talent acquisition.

One just has to look at the current landscape of MSPs ruling the day: some are some of the most mature in our industry and are revolutionizing the way services and technology interact, such as Randstad Sourceright and KellyOCG. RSR is reimagining SOW management and services procurement, as well as its bringing its unique TalentUX tech overlay to areas like direct sourcing. KellyOCG’s digital Helix infrastructure could be a gamechanger.

PRO Unlimited is advancing a “platform approach” that solves every need of the current workforce management program while pushing the criticality of data and intelligence; the solution has made incredible strides within direct sourcing, DE&I, and other key facets of extended workforce management. Talent Solutions TAPFIN is refashioning the market with a fresh approach to SOW management/services procurement and integrated, data-led offerings around workforce advisory and direct sourcing.

Solutions like GRI offer near-unrivaled, powerful, and self-service analytic modules that help clients design better business outcomes (GRI is also a robust provider of Managed Direct Sourcing (MDS) solutions).

Organizations like Atrium and nextSource are transforming how diversity, direct sourcing, and tech-led approaches can help the mid-market thrive. RightSourcing is actively helping a struggling industry (healthcare) take advantage of an evolving labor market whilst offering wide-scale support for those medical facilities that need it coming out of the latest COVID surge.

Pontoon continues to lead with its innovative service delivery models and technological foundations, while Guidant Global is building on its vast expertise, global reach, and progressive direct sourcing offerings. Even newer solutions, like Evaluent, are proving that there’s incredible room for innovation in our industry.

Tomorrow, Ardent Partners and the Future of Work Exchange will unveil the 2022 MSP Solution Advisor, an industry guidebook that will serve as the definitive guide for businesses seeking new insights on the mature MSP solutions market, allow them access to the necessary information to guide solution selection journeys, and enable contingent workforce program leaders to better understand how each MSP offering differentiates itself from the competition.

The Key Differentiators of Best-in-Class Extended Workforce Management

Contingent Workforce Direct Sourcing Talent by Christopher J. Dwyer on 12/13/2021

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.

Key Providers for 2021: nextSource

Solution Providers by Christopher J. Dwyer on 09/22/2021

The Background:

With non-employee talent workforce comprising 47% of the total global workforce, businesses across the globe are actively finding that they require advanced tools and next-gen solutions to effectively manage a sector of talent that is growing in both size and prominence. The Managed Service Provider (MSP) model has long been the veteran presence in the contingent workforce management (CWM) solutions market, an “old standby” that has long delivered value in terms of cost savings, workforce visibility, and better access to top-tier talent. MSPs have long been a trusted solution in the operational and strategic management of extended talent, as many businesses have outsourced the day-to-day management of contingent labor to these offerings, who, in turn, facilitate talent acquisition, services procurement (and SOW management), staffing supplier optimization, etc

However, as businesses became more advanced in how they structure their workforce, how they leveraged self-service functionality, and how they tapped into alternative talent channels, the MSP model needed to evolve alongside their customers to continue driving that effective level of wide-scoping value across all facets of workforce management. In fact, some MSPs are placing innovation within its core and cascading a progressive mindset into the fabric of its offerings.

Enter nextSource.

Why They Were Selected:

Service-based offerings are often required to do more to stand out from the progressive technology platforms in today’s complex solutions marketplace. The MSP model has long relied on traditional services (such as payrolling, staff augmentation, supplier management, etc.) to provide immediate value to the world’s biggest CWM programs. However, today’s programs are much, much more intricate now than they were even just a few years ago, considering the criticality of direct sourcing, the complexities of diversity, equity, and inclusion (DE&I), and the overall need for CWM leaders to be able to tap into on-demand, top-tier talent.

nextSource has over 20 years of experience as a leading provider of managed services, but it is their unique blend of data science and forward-thinking, intelligence-driven offerings (that sit on top of its end-to-end MSP model) that enables the solution as a key provider for Future of Work-era talent programs.

In Their Own Words:

For more than two decades, the mission of nextSource has remained unchanged: advance the ways companies connect with talent. Today’s uncertain business environment is marked by talent scarcity in the midst of high unemployment, shifting demographics, increased talent acquisition and compensation costs, and technology that enhances and eliminates jobs at all skills levels. We navigate these workforce challenges to help our clients find, manage, and keep talent.

Traditional approaches to contingent workforce management produce poor results in this new competitive environment. As a vendor-neutral provider of solutions, we partner with the industry’s best staffing agencies, providing the support needed for them to deliver the talent needed by our clients. We augment their capabilities through the establishment of nextSourcing™ talent communities that draw from sources not reached through traditional sourcing channels to increase engagement of women and minorities. Working with our clients, we create a worker experience that is based on pay equity, revalued work, caregiving, and opportunities for challenging, career-building assignments.

Every Managed Services Provider, Employer of Record, and Agency of Record program applies our Entry Point Methodology, giving clients choice regarding their preferred level of service. And, annual Program Agility Assessments ensure that every program continuous innovates and evolves.

The Outlook:

It’s no secret that the world of work and talent has been permanently transformed. Hiring managers must leverage nuanced tools and strategies to find the best-fit, best-aligned talent, while both procurement and HR executives are forced to reimagine how they manage their total workforce in the face of foundational change. The Future of Work Exchange Report for 2021 research study found that Best-in-Class organizations are 66% more likely to leverage MSPs than all other businesses, a statistic that reinforces the continue value these models bring to the world of agile workforce management.

nextSource offers both traditional and forward-thinking solutions for its clients, with its Program Agility Assessments serving as an incredible differentiator in the application of data science and true workforce intelligence to drive educated and transformative recommendations for long-term contingent workforce management success. With its end-to-end approach balanced with dynamic offerings, nextSource is well-positioned to continue delivering progressive value in the evolving world of work and talent.

Key Providers for 2021: myBasePay

Contingent Workforce HR Solution Providers Technology and Innovation by Christopher J. Dwyer on 09/07/2021

The Background:

The extended workforce continues to grow at a rapid pace. Today, 47% of the average company’s total workforce is comprised of “contingent” or “non-employee” workers, which include traditional temporary workers, gig workers, independent contractors, freelancers, and SOW-based labor/professional services. Over the past five years, this number has increased by nearly 40%, proving that the agile workforce has become a key contributor to the Future of Work movement.

Several years ago, as the contingent workforce began its stratospheric rise in growth and utilization, many businesses remained focused on three key elements as this spectrum of talent began to dominate how work was done: visibility into suppliers and the talent itself, annual cost savings on contingent workforce spend, and, perhaps most importantly, the compliance ramifications of utilizing a non-employee workforce.

Today, there are essentially two sides to the 2021 contingent workforce management (CWM) program: 1) the strategic planning that pushes extended talent into the realm of true business agility through top-tier skillsets, access to new sources of expertise, and the innovation happening in talent engagement and talent acquisition, and, 2) the operational components that keep CWM as a well-oiled, effective, and sharply-run program that is not open to various labor, cost, and regulatory risks. Businesses must strike an efficient balance between these two perspectives to ensure that the agile workforce brings both value and flexibility to the greater organization.

Enter myBasePay.

Why They Were Selected:

Future of Work Exchange research finds that nearly 60% of businesses are prioritizing control over compliance and risk management within their contingent and extended workforce programs. While aspects such as remote work, artificial intelligence, and other top-of-mind topics usually steal the headlines in the Future of Work arena, the truth is that compliance and risk mitigation for the non-employee workforce is just as critical as the “newer” elements of talent management and work optimization.

In less than a year, myBasePay has transformed the way businesses think about both the back- and front-ends of their talent acquisition programs through its unique array of compliance management automation, contingent workforce management efficiency, and tools to enhance the overall lifecycle of the non-employee worker.

In Their Own Words:

By the year 2030, half of the US workforce will consist of contingent workers. Simultaneously, organizations are struggling with skills shortages, changing labor regulations, and disruptive technologies. How can organizations leverage this trend to improve their competitive strategy and thrive in the new economy?

myBasePay’s mission is to help organizations focus on growth and talent development. We aim to achieve this with our employer of record (EOR) model and AI-powered technology enabling us to create an ecosystem where organizations and contingent workers can thrive through transparency, trust, and collaboration.

Our platform is like having a legal, admin, HR, compliance, and payroll department all rolled into one integrated solution, so organizations focus on growth and finding great talent.

Since our official launch in March, we have:

Raised $60M in funding.
Set up 67 enterprise customers on our platform.
Achieved 50% growth rate with a $35M projected revenue by year-end.
Focused on diversity and inclusion since day one. Our internal team is led by a Navy Veteran CEO, 58% female, 71% of female staff are working moms, and 67% minority.

Contingent workers can bring unparalleled agility, flexibility, and adaptability to any organization looking to adopt a flexible work model as their competitive advantage.

The Outlook:

myBasePay is a true turnkey solution for both CWM programs and contingent workers alike, helping to facilitate a spectrum of efficiency within engagement, sourcing, classification, onboarding, and other key facets of the typical talent management initiative. Future of Work Exchange research finds that 84% of businesses were forced to “reimagine” their workforce management operations and processes in light of the disruptions experienced over the past 18 months. If digital transformation was not on the radar for procurement, HR, and other functional leaders before the pandemic hit, these challenging times made it patently obvious that manual processes were no longer acceptable and must be stricken from the workplace.

myBasePay is uniquely positioned as an agile contingent workforce solution that not only provides users with easy-to-use and AI-fueled talent management functionality, but also industry-leading worker classification, onboarding, and compliance management offerings.

FOWX Alert: PRO Unlimited Continues Aggressive Technology Transformation, Acquires Workforce Logiq

Contingent Workforce Solution Providers Talent by Christopher J. Dwyer on 08/19/2021

[Editor’s Note: “FOWX Alert” – The Exchange’s coverage and analysis of the Future of Work industry’s most important news, including major announcements, M&A, and other breaking stories.]

To say that global workforce management solutions provider PRO Unlimited has been aggressive in disrupting the market is a vast understatement. In the span of less than a year, the company has:

Acquired of the industry’s leading rate intelligence solutions, PeopleTicker.
Introduced new functionality and offerings that are transforming diversity, equity, and inclusion for the market.
Launched an exclusive partnership with Eightfold to push AI-driven talent intelligence into PRO’s technology (particularly its flagship Wand VMS product).
Acquired Dutch MSP Brainnet Group.
Optimized client hiring decisions through its unique RatePoint tool.
Launched its NorthStar HCM consulting and advisory team, which blends market expertise and talent intelligence into an agile add-on offering, and;
Been acquired by EQT Partners, which is actively allowing the solution to fulfill its promise of becoming a true end-to-end workforce management platform.

And, this week, PRO Unlimited announced that it will acquire Workforce Logiq, one of the workforce management technology landscape’s biggest and most mature players. This news is yet another indicator that PRO will continue its aggressive approach towards realizing its goal of becoming an on-demand, agile, and flexible end-to-end platform for managing non-employee and extended talent.

What is particularly interesting about this acquisition that both PRO and Workforce Logiq are like-minded solutions; both have industry longevity on their side and offer hybrid Managed Services Provider (MSP) solutions and Vendor Management System (VMS) technology. In addition, both companies have harnessed innovative approaches towards workforce management technology, particularly in the arena of artificial intelligence and predictive analytics (in fact, we just spoke with Workforce Logiq’s Chief Strategy Officer, Joe Hanna, about this topic on FOWX).

“Both companies have a similar “platform” vision with two like-minded executive and product teams,” said Kevin Akeroyd, CEO of PRO Unlimited. “We essentially both saw the market in the same way, so we knew that [the acquisition] was already heading in the right strategic direction. The cultures between PRO and Workforce Logiq are incredibly well-aligned, as well, and there are many talented people that are now part of the PRO family.”

Together, the two solutions will represent a massive disruptor in the contingent workforce management (CWM) solutions marketplace. This acquisition will allow PRO to expand its global reach even further and enable existing Workforce Logiq clients the sheer breadth of offerings under the PRO umbrella. Ardent Partners and Future of Work Exchange instant analysis is as follows:

PRO Unlimited will undoubtedly make immediate use of WFQ’s impressive array of AI-led innovation. WFQ seemingly went from a standard MSP/VMS hybrid under the ZeroChaos brand to purveyor of AI-led workforce management solutions in short order when it moved to the Workforce Logiq brand, including its 16 patent-pending analytical technologies and toolbox of AI-led reporting functionality.
The ENGAGE Talent factor could be the most interesting facet of this deal. Back in 2019, I wrote that Workforce Logiq’s acquisition of ENGAGE Talent was a workforce management solutions gamechanger. “ENGAGE Talent’s technological sweet spot (predictive AI-powered algorithms) enables users to anticipate talent supply chain gaps, analyze real-time global labor conditions, and develop deep talent-based scenarios for short- and long-term contingent and full-time total workforce planning.” ENGAGE is/was one of WFQ’s most prized and innovative market offerings; we fully expect PRO Unlimited to take advantage of this deep tool to advance its intelligence-led technology.
PRO’s industry coverage becomes even more expansive than it was before the acquisition. While both PRO and Workforce Logiq are “household” names in the CWM solutions market, each paved its own path through dozens of unique verticals. PRO’s acquisition of WFQ opens the solution to clients in some very large industries, including automotive, healthcare, and telecom.
Strengths of both solutions, particularly DE&I and direct sourcing, will become more robust under the unified company. PRO’s recent enhancements of its direct sourcing and diversity, equity, and inclusion offerings was a strong way to kick off 2021. Workforce Logiq was an early pioneer of the direct sourcing model (even nicknaming it “self-sourcing” back in 2019) and has long been a force when it comes to improving DE&I in staffing and talent acquisition. These two very critical aspects of the Future of Work will become even stronger under the unified PRO/WFQ brand.

Beyond the obvious “scale” factors of the acquisition (such as combining two of the industry’s largest providers from RPO, payrolling, and other standard workforce management operations), there is something much larger – and more critical – at play: the fact that PRO Unlimited now has incredible positioning as an end-to-end workforce management solution that leads with innovation, data, and intelligence. Workforce Logiq’s main differentiators from the MSP pack have always sat in its wide-ranging abilities to plug-and-play real-time labor market, job role, rate, and other forms of deep intelligence into its core managed service operations. That PRO now has these functionalities at its fingertips is a true competitive transformation for the platform.

“There are incredible synergies here between the two solutions,” Akeroyd said. “Adding Workforce Logiq’s deep ocean of data and their innovative analytical tools to PRO’s end-to-end platform are going to be very impactful in how we continue to transform contingent workforce management for our customers. This is an acquisition that truly allows us to accelerate on our vision.”

(Financial terms of the acquisition, which is expected to close in Q4, were not disclosed. Stay tuned to the Future of Work Exchange for more insights on the evolving workforce management technology landscape.)

Services Procurement and the Future of Work: A Conversation with Paul Vincent, Global Head of Services Procurement at Randstad Sourceright

Contingent Workforce Procurement Solution Providers Talent by Christopher J. Dwyer on 08/16/2021

Last week, Randstad Sourceright announced the appointment of Paul Vincent as its Global Head of Services Procurement. In this Future of Work Exchange feature, Paul joins us to talk about how he views the current SOW management landscape, how this exciting topic fits into the greater Future of Work movement, and his new responsibilities at Randstad.

Christopher J. Dwyer: Hi Paul, it is great to chat with you once again, and congratulations on your new role. Pandemic aside, we’ve definitely seen some changes in the services procurement landscape over the past couple of years. Curious to hear your thoughts on these changes and how you feel MSPs can effectively tackle these challenges.

Paul Vincent: It’s good to catch up with you again, too, Chris, and let me start by commending you on the launch of the Future of Work Exchange. The site looks really smart, and I am sure it will become a valued resource for the talent industry.

The services procurement marketplace has unquestionably become more liberated during the past couple of years. Every MSP now seems to be selling some kind of SOW solution and buying organizations are clearly becoming more receptive to a proposal for help. VMS providers are building more tailored functionality into their platforms and there is a growing array of complementary digital tools which can further strengthen an MSP’s product offering if positioned correctly.

So, we are definitely entering a period where SOW-based spend is going to be increasingly supported by workforce solutions providers in some way. The $64M question is going to be: what way is the best way?

This is where I think the market gets most interesting. There is still quite a big difference between an MSP who really understands the nuances of the services procurement landscape versus one that fundamentally still treats this part of the workforce as a subset of an organization’s contingent staffing population.

For example, when you see an MSP only talking about classification, compliance, and control, then this is a tell-tale sign that they are not really thinking about how to best serve the people who have the need and budget for the services themselves. These people, who after all are the primary stakeholders for any SOW management solution, need an MSP who can give them speed, simplicity, ready access to the highest-performing and most innovative service providers, and ultimately the best bang for their budgetary buck.

CJD: One of the things I admire about your work in the market all these years is that you have a deep understanding of both the client and service provider sides of SOW and services procurement. What are two or three of the most valuable insights that this experience has given you?

PV: This is a tough question, Chris, as there are so many insights I could share. However, if you pushed me for my top three then I would probably select these ones.

Firstly, it is important to remember that price and perceived value are very different things. It is a common misconception that users of SOW-based services will want to pay as little as possible and this is a mentality trap that procurement professionals and MSPs can get themselves into. In a staff augmentation world, hiring managers typically don’t want to pay more than the prevailing market rate. In a services procurement world, business users want to pay an appropriate price and as it is their budget, then ultimately, they will need to decide on the price that most aligns with the value they perceive they are going to get from the service provider in return. The role of a good procurement advisor is to help their business stakeholders to identify and then critically evaluate the various commercial options open to them. Then they need to ensure that their stakeholder’s preferred option is properly encapsulated within a well-documented statement of work.

Secondly, whilst the SOW management triangle has three interdependent relationships (i.e., between the business user, centralized procurement, and the service provider), the most crucial relationship is always the one between whoever wants the work done and whoever is going to be doing the work. An effective SOW management solution will facilitate this relationship so that it is as commercially agile as possible. Those procurement functions and MSPs who seek to control this relationship instead will never be sustainably successful.

Finally, I passionately believe that an MSP should be delivering value throughout the entire SOW life cycle. However, in my experience, many MSPs seem to limit their boundary lines to the supplier selection and contracting phases in the process only. I have never understood this – because there is a huge amount of value that can be offered across the project definition, delivery, and evaluation phases, and this value often just gets left on the table.

CJD: These are great insights, Paul, and what resonates with me in particular are your observations about the breadth of the MSP value proposition when it comes to services procurement. So, turning to your new role and an obvious question is: what has attracted you to Randstad Sourceright?

PV: I am thrilled to be joining Randstad Sourceright and there were two main reasons why I could not let this opportunity pass me by. The first is the hugely ambitious and exciting vision that CEO Mike Smith has set for the organization, and in particular the impact and contribution that he expects services procurement to play. The more Mike talked me through his strategic intent for services procurement, the more I felt this was a journey that I wanted to be part of.

Secondly, I will have a chance to work with a very skilled team. Randstad Sourceright already has a number of sales, operations, and subject matter experts working on SOW-related activities across the organization and further recruitment activity is underway. All of this talent will now be unified globally under my leadership and a joint strategic vision focused on creating measurable business value for our clients. I am especially going to enjoy working with Scott Brewer, who will run our SOW center of excellence. Scott has laid some impressive foundations during the past 18 months and there is a strong platform to grow from.

CJD: This role sounds like the perfect fit for you. What do you see as your key priorities during the first few months?

PV: Well, like in any new role there are going to be many people that I will need to get to know across the organization. But I expect the bulk of my time will be spent getting a really good understanding of our current SOW proposition and what we are delivering across the active client programs. From what I have seen, I think the offering is already pretty compelling, particularly from an analytics point of view, but as I finalize our new team structure and future ways of working, I will get a feel for the areas which might have scope for further development.

CJD: Maybe it’s because I’ve known you for so long, but I have to imagine that you already have some ideas as to how you would like to see RSR’s SOW offering evolve…am I correct?

PV: You’re right, you know me well and I do have some ideas already germinating, but it’s important that I take the time to really understand the current offering first and to gather a range of input from across the organization. What I can tell you is that Mike has set me a very clear objective – which is for Randstad Sourceright to be regarded as the undisputed market leader driving services procurement value for our customers. I am very energized by this goal, and I have every intention of delivering it!

CJD: I am very sure you will, Paul, and we look forward to hearing more from you here on the Future of Work Exchange. Best wishes on your new role at Randstad Sourceright, and thanks again for taking the time so soon after your new appointment.

Connect with Paul on LinkedIn, or visit Randstad Sourceright for more information on their solutions and offerings.

Preparing for Tomorrow’s Workforce

Contingent Workforce HR Talent by Featured Contributor on 07/21/2021

[Editor’s Note: Today’s article is a guest contribution from Neha Goel, Vice President of Marketing at Utmost.]

Tomorrow’s workforce is changing at a pace we have not experienced in past decades. The pandemic expedited what was already happening in the market: emerging technologies leading to automation and digital transformations; the desire for flexibility in how and where people work; a focus on diversity, equity, and inclusion (DE&I); and globalization. It’s become clear organizations require a shift in how they think about and manage their entire workforce.

The Future of Work, which Ardent Partners defines as work optimization via the transformation of business operations, talent usage, seamless and comprehensive workforce management solutions, and flexible enterprise thinking, requires a change in how companies are tracking, managing, accessing, engaging, and reporting (i.e., spend, worker type, performance) on talent at an enterprise level.

Disparate systems make it difficult for companies to have visibility into their entire workforce. Even if an organization has a vendor management system (VMS) to track their contingent labor, they support as little as 10% of the total external workforce, which is now made up of project-based workers, freelancers, independent contractors, gig workers, and outsourced resources not captured in a VMS.

The Time is Now

As the non-employee utilization rate nears half of the total workforce (nearly 47% of the total workforce, according to Ardent), and more than 80% of large corporations planning on substantially increasing their use of a flexible workforce in the coming years, the time to prepare is now. The fastest-growing part of the workforce is the one that is currently not being tracked, which poses huge challenges for organizations.

This impacts activities like on/offboarding, classification, tenure, performance, payment, and reporting if only a portion of your total workforce is captured in your current ERP, VMS, and project-management tools. More importantly, it becomes impossible to assess and engage your total workforce in a scalable way without a single system of truth.

The Workforce is Changing

By 2025, 75% of the workforce will be made up of millennials — the most diverse group in American history, with 44.2% identifying as “non-white.” This should be a wake-up call for organizations who are not putting their DE&I initiatives at the top of their priority list. Having a platform that allows organizations to easily access, attract, retain, and report on diversity measures to meet their goals is crucial.

Millennials are also the first “digitally-native generation,” according to Pew Research, which means they expect to interact with work in the same way they interact in other aspects of their lives like ordering meals, rides, movies, and other services. They are demanding flexibility, engagement, diversity, career advancement, and a cultural fit regardless of how they are employed — be it full-time or contingent.

Future-Proof Technology

Together, all of these factors require organizations implement a technology platform built for the extended workforce. This can mean anything from connecting to new sourcing channels in an agile way to configurable back-end processes to managing distributed teams in a worker-centric way.

Utmost helps organizations fully engage and optimize their entire extended workforce. Built as a native application on the Workday Cloud Platform, Utmost provides a seamless experience for Workday customers to gain full visibility into their changing workforce composition, quality, and spend in an agile and scalable manner.

We believe the Future of Work is getting “the most from your all,” meaning the enterprise is getting the most out of its workforce, and talent has all the tools in place from their employer to bring their best selves to work. We believe this combination will set organizations, and their most significant competitive advantage, their talent, up for success.

Welcome to the Future of Work Exchange (FOWX)!

General Insights Talent by Christopher J. Dwyer on 07/15/2021

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!

Prosperity in the Future of Work: Interview with Sunil Bagai, CEO of Prosperix

Contingent Workforce Direct Sourcing Solution Providers Talent by Christopher J. Dwyer on 06/10/2021

The Future of Work is founded on change, whether that change is natural evolution or innovative progression. The world of talent and work has been changing at a rapid clip with the advent of new talent acquisition strategies, shifts in how enterprises optimize how work gets done, and the overall transformation of global business.

Crowdstaffing, a longtime market leader in digital staffing and workforce management technology, was an early pioneer with its Future of Work-driven offerings. Just recently, the company rebranded as Prosperix, a solution that aims to “fuel human, workforce, and business prosperity.” I had the opportunity to chat with the provider’s CEO, Sunil Bagai, about the rebrand, the evolution of the platform, and his outlook on the Future of Work movement.

Christopher J. Dwyer: Sunil, thanks for chatting with us. For our readers, tell us a little bit about yourself and your background.

Sunil Bagai: I have over 25 years of tech experience at companies like IBM, Sun, and EMC, as well as multiple startups. I’ve been working in the talent acquisition space since 2005, and what I love most about it is the intersection between people and technology. Just like in the early days of the Internet, where hardware infrastructure was essential in providing everyone online access, I believe we are in the early stages of deploying similar infrastructure technology that will make it much easier to build and manage a workforce. We’re entering a very exciting time.

CJD: Let’s start with the big news first: Crowdstaffing has officially rebranded itself as Prosperix. Give us the lowdown on the evolution of the solution, the new brand, and what it all means.

SB: When we started Crowdstaffing, we wanted to emphasize the value of building network effects and how the power of the crowd can help in building scalable workforces. While that’s still core to what we do, we’re now inspired by a mission that’s even greater. We believe that hiring can play an instrumental role in helping businesses achieve their dreams and aspirations. Simultaneously, there is an opportunity to influence the design of the modern workforce so it can achieve a level of prosperity that hasn’t been possible in the past. With that in mind, we chose the name Prosperix to align with our long-term vision and mission of helping businesses build an extraordinary workforce and achieve outstanding outcomes.

The good news is that Crowdstaffing is not going away; It’s being transitioned into a product name for our Crowdstaffing Hiring Marketplace and Crowdstaffing VMS offerings. In addition to these core offerings, we have added new offerings to the Prosperix solutions suite, including Direct Sourcing, On-Demand Talent Pools, and a wide range of Workforce Services such as MSP, Payroll, and IC Compliance.

CJD: What strikes me as a major differentiator for Propserix is the sheer breadth of its offerings, from direct sourcing and talent pools to VMS technology.

SB: Our strategy has always been to solve the end-to-end problem of hiring and workforce management. Most clients have a very difficult time using multiple technologies. Not only does data end up living in different places, but you get a poor user experience and it’s very challenging to manage the entire workflow when you use different systems. We believe it’s better to provide a single solution that solves for all facets of workforce management, including talent branding and attraction, sourcing, candidate engagement and nurturing, applicant tracking, candidate assessments, vendor management, onboarding, and redeployment.

CJD: Why do you believe it’s so powerful to have a solution that can literally offer end-to-end workforce management functionality, from talent engagement to total workforce management?

SB: There are many advantages to an end-to-end workforce management solution. First, you simplify the hiring process substantially when you use a single technology rather than several disparate technologies. More fundamentally, you are able to access and utilize data far more effectively to achieve better hiring outcomes. For example, the best candidate can come from a supplier, an internal talent pool, or a variety of public talent pools. When you can see candidates across the entire ecosystem of hiring channels, whether it’s in your VMS, ATS, Talent Pools, etc., you can match candidates more effectively to open jobs, speeding up time to hire.

This is just the beginning. There are multiple other use cases that you can unlock, including large network effects, that are only possible when you impact the entire value chain.

CJD: We’re experiencing a much different summer than we did last year thanks to the business world somewhat returning to normalcy. How do you think the world of talent and work respond to the major shifts it experienced over the past year?

The new normal means that remote work is here to stay. Many businesses are hiring workers remotely even for core positions, especially if they are having a hard time finding talent in their local geography. To hire remote workers more effectively, businesses are requesting a more nuanced way to outline their needs, by specifying whether a position is Local Only, Remote with Local Access, Remote Only, or Offshore.

CJD: What’s the long-term vision for Prosperix?

SB: Our long-term vision is to fuel human, workforce, and business prosperity. We plan to accomplish this by developing innovative solutions that help businesses build and manage an extraordinary workforce.

An Unlimited Future: Inside PRO Unlimited’s Technology Transformation

Business Leadership Technology and Innovation by Christopher J. Dwyer on 06/07/2021

The world of talent and work seemingly reinvents itself frequently. Changes in the global economy amidst other major worldly events (including, of course, a pandemic) routinely force businesses to reimagine how they get work done. Over the past decade, the workforce management tech marketplace, which includes Vendor Management Systems (VMS), Managed Service Providers (MSP), digital staffing marketplaces, direct sourcing automation, etc. has undergone a seismic revolution alongside a shifting global talent economy. Throw in the major workforce management shifts accelerated due to a global pandemic and its economic, digital, and staffing ramifications, and, well, the position is clear: workforce management technology has to evolve just as quickly as the world around it.

Last year, veteran VMS/MSP hybrid PRO Unlimited announced that Kevin Akeroyd would join the solution as its new CEO, who immediately touted a transformative approach to the provider’s future: become a de-facto “platform” for contingent and agile workforce management.

“This workforce segment is becoming a large spend category and is now an enterprise valuation driver. Over the past 30 years, the industry has transformed from a small temp-staffing niche to a C-suite strategic priority. This shift not only includes changes within HR, talent acquisition and strategic procurement programs, but also highlights an explosion of innovation and new technology platforms like we have never seen before,” Akeroyd said. “Unfortunately, the established procurement/spend management and HCM platforms have not addressed the full contingent workforce management lifecycle. Furthermore, they are not capable of managing its complexity or harnessing the data to provide analytics and intelligence on companies’ contingent workforce segments that executives demand. The industry requires a comprehensive platform that can deliver the technology, data/analytics and managed services to optimize the full contingent workforce program. This is going to help organizations exceed both their contingent workforce goals and their broader organizational objectives. Being the platform that seamlessly interoperates with ERP, HCM, HRIS, P2P, and data and analytics systems will be paramount, and PRO Unlimited is uniquely positioned to become that holistic platform for the industry.”

Shortly after Kevin dropped by the Contingent Workforce Weekly podcast and spoke to us as part of our Future of Work Influencer series, PRO announced that it acquired rate management solution PeopleTicker, a global provider of comprehensive compensation data that relies on crowdsourced intelligent, machine learning, and data science resources. This acquisition helped burgeon PRO’s commitment to helping its users manage its workforce with a data-driven approach, allowing customers to tap into an “ocean of data.”

“To use an age-old analogy, even the best motorcycle, car, plane, rocket ship… simply is not effective if you don’t “fuel” it. And the higher quality, higher octane the fuel is, the better performing the vehicle is. Data is today’s “fuel,” said Akeroyd. “Having the highest quality, highest coverage, most up-to-date data is a mission-critical component of the platform. It fuels the software, service, and analytics/intelligence offering the Enterprise relies on today. PRO not only has the largest, broadest, most accurate first-party asset in the world, we have augmented this with third-party data partnerships, including our acquisition of data assets like PeopleTicker, the industry’s one true provider of global contingent rate data for over 160 markets across thousands of job titles. Having exclusive data, packaged with PRO’s solutions and comprehensive platform, will enable and benefit our clients immensely. And competitively, it will further differentiate PRO from our point solution competitors. Finally, data is the fundamental underpinning of all machine-based learning (MBL) and artificial intelligence (AI). We are very excited to deliver MBL/AI applications in the near future as a result of having the best, most accurate and largest training data sets on the planet.”

And, PRO Unlimited’s transformation continues today with an announcement that it has secured an exclusive partnership with Eightfold, an artificial intelligence solution that offers a multifaceted blend of technology, including talent experience management, candidate comparison and evaluation, bias prevention, and deep employee lifecycle management support via AI-led neural networks.

The new partnership has massive implications for the workforce management solutions landscape, as PRO’s exclusive union with Eightfold will allow the veteran provider the ability to “lift and shift” comprehensive total talent intelligence into its existing and forthcoming offerings. For example, Eightfold’s unique neural network-led skills data could be applied to direct sourcing initiatives to better target specific, high-expertise candidates for enterprise talent pools.

“Many organizations around the world will be hiring contingent workers ahead of the economic recovery while prioritizing areas within hiring, such as retention and D&I initiatives. However, many of these same companies do not have the technology and data in place to identify, engage and secure the best contingent talent in the world, while attaining diversity goals,” said Akeroyd. “This exclusive partnership with Eightfold aims to solve this problem with their advanced talent intelligence and our contingent workforce management platform, which also includes the world’s largest global market rate data repository. This partnership is truly a game changer for the industry as it will transform how our customers, which include some of the largest brands globally, source, develop, and redeploy their workforces while lowering costs as well as offer an unparalleled suite of diversity offerings for the contingent workforce.”

With PRO’s new Direct Sourcing and SOW Management tools on the horizon for later this quarter, the solution’s recent, aggressive moves prove that the provider is truly committed not only to its goal of being a centralized talent management platform, but also meeting the evolving requirements of the ever-changing world of talent and work.