Direct Sourcing Archives - The Future of Work Exchange

The 2025 MSP Playbook, Part I

Contingent Workforce Direct Sourcing Events by Christopher J. Dwyer on 01/21/2025

Just last week, I had the opportunity to join Atrium and their Chief Revenue Officer, Brad Martin, for an exclusive webcast focused not only on the 2025 trends that will shape the Future of Work, but also the impact of the Managed Service Provider (MSP) model on those areas in the months ahead. Today’s article is the first of a two-part series that will recap Brad and I’s discussion.

The “Strategic” Contingent Workforce Program: A Major Priority for 2025

Nearly 65% of organizations (as discovered by Ardent Partners and Future of Work Exchange research) state that they plan to develop a more strategic foundation around their contingent workforce programs in 2025. As the extended workforce marches to its 50% threshold (49.7% of the average organization’s total workforce is now considered non-employee), it is critical that businesses take a more deliberate pathway towards managing this type of talent in lieu of leveraging traditional, archaic, and “tactical” approaches that undermine the greater impact of the contingent workforce.

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Let’s Set the Record Straight on Direct Sourcing

Direct Sourcing Talent Acquisition by Christopher J. Dwyer on 12/09/2024

As you may know, the Future of Work Exchange moved to a subscription format a short time ago. Ordinarily, this article would only be accessible to FOWX subscribers. However, today’s article on direct sourcing will be available to all until midnight on December 16. Given the rampant discussion on direct sourcing and its outlook, direction, etc., the FOWX felt that this piece should be accessible to all readers for a short period. Enjoy!

For nearly 20 years, I’ve seen talent trends, shifts, and “fads” come and go. There is no industry that invites divisiveness like the world of talent and work. Making contingent workforce management less tactical and more strategic was once seen as crazy, yet today the extended workforce comprises 49.8% of the average company’s total talent, and, businesses regularly rely on this top-tier labor to get work done.

Total talent management deserves a major mention, as it still (yes…still) drives executives absolutely nutty on completely opposite sides of the spectrum: it’s either the wave of the future, or, it’s a pipe dream mired in conjecture and theory. (My take: there’s incredible value in elements of total talent management, particularly total talent intelligence. The ability to make snap worker decisions based on information and data on your total talent resources is the real benefit of any total talent management strategy/program.)

Direct sourcing has reached a similar level of conjecture, and, rightfully so: since the waning days of pre-pandemic times, “direct sourcing and talent pools” have routinely been a top-three workforce strategy, according to Ardent Partners and Future of Work Exchange research. Furthermore, during the pandemic, direct sourcing emerged as a viable, flexible strategy for businesses that 1) wanted to scale up or down based on rollercoaster-like market conditions, 2) keep those laid off during the worst of the pandemic engaged with the organization and cultivated within an easily-recruitable talent community, 3) wanted to maintain their brand (and keep it front-and-center) in front of potential candidates, 4) support burgeoning skills-based hiring efforts, and, 5) desired to centralize their total talent resources and available skills.

There is no question today regarding the value of direct sourcing; we all realize what it can do, what it can generate, etc. The real quandary (and it’s a painful one, given the discourse on social channels liked LinkedIn) is this: how does direct sourcing actually work?

There are several schools of thought here. The simplest explanation is that an enterprise can leverage its own talent acquisition and contingent workforce teams to create an internal “recruitment agency” that blends branded job portals, curation (internally-led or outsourced), and marketing-fueled engagement with VMS or ATS technology (for sourcing and management) and EOR (for payrolling and compliance) for workforce management. Add in some level of automation to place current contractors, contingent workers, retirees, alumni, silver medalists, etc. into talent pools, and, boom, a direct sourcing program is born.

This very non-intricate approach thrives on simplicity: engage candidates, curate them, and provide internal TA and recruitment teams with access to these workers. The past several years has seen a shift, however, in how direct sourcing is approached. Deeper automation, specific functionality offered by direct sourcing platforms, a sharper focus on skills-based hiring, more attention on the marketing/brand aspects, and the power of artificial intelligence are all transforming what direct sourcing truly means today in 2024.

Here’s where some of the scuttlebutt meanders and gets us to a point of “theory vs. reality” within the direct sourcing discussion. Do businesses really need point direct sourcing platforms? Is there a real role for AI? Is there even a true DEFINITION for direct sourcing? Where does VMS fit in? Is it true that direct sourcing technology is just next-gen ATS? And, finally, does direct sourcing have a place within the contemporary extended workforce program?

Let’s tackle these one-by-one, because that’s just how we do things here at FOWX.

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The FOWX Fifteen: AMS.

Direct Sourcing Solution Providers Talent Acquisition Technology and Innovation by Christopher J. Dwyer on 12/03/2024

The FOWX Fifteen is an exclusive series at the Future of Work Exchange that highlights the industry’s innovative and disruptive platforms, solutions, and offerings that are driving the Future of Work movement. These providers are actively pushing talent technology innovation and ushering in a new, digital era of workforce management, staffing, and talent acquisition.

The Background

The talent technology industry is awash in innovation. Whether it’s AI-fueled functionality, next-generation managed services, or progressive workforce management capabilities, there is no better or more ideal time to be a talent acquisition, HR, or extended workforce leader than right now.

A talent-centric, candidate-oriented world of work means that enterprises require a level of elegance, automation, and efficiency to effectively maximize new and exciting hiring strategies. Progressive concepts such as direct sourcing, digital recruitment, skills-based hiring, and Best-in-Class talent technology stacks are all elements that now fuel the Future of Work movement.

Enter AMS.

Why They Were Selected

AMS was purpose-built for the Future of Work, with an impressive arsenal of talent acquisition and workforce management services, all buoyed by the powerful AMS One platform. AMS One comprehensively streamlines workforce (traditional and extended) management through integrated digital capabilities, seamlessly enabling comprehensive recruiting, hiring, engagement, and operational (scheduling, workforce planning, payment processing, and reconciliation) functions within a unified suite of functionality.

Furthermore, AMS stands as a robust service provider that impeccably blends MSP, RPO, talent acquisition, and direct sourcing solutions together in an sophisticated, cohesive manner. The company’s Best-in-Class recruitment-driven offerings are anchored in global talent expertise and an innovative service delivery model that prioritizes forward-thinking talent strategies and approaches. And, with progressive solutions like the DE&I gamechanger AMS Omnis, AMS continues to thrive in an evolving world of work.

In Their Own Words

“AMS is honored to be named a global leader by Ardent Partners and the Future of Work Exchange, reflecting our unique ability to drive transformative talent acquisition outcomes. As a trusted partner to some of the world’s most well-known organizations worldwide, we deliver comprehensive talent solutions—across MSP, RPO, direct sourcing, talent advisory, and digital solutions—all powered by cutting-edge technology and a relentless focus on innovation.

Today’s talent landscape is rapidly evolving, with a growing need for agile external workforce strategies. Our capabilities enable TA and HR leaders to adapt swiftly to this shift, helping companies leverage their brand to attract, engage, and retain critical talent on a global scale. Our award-winning solutions, like AMS One, combine deep domain expertise, data-driven insights, and advanced AI to optimize strategic talent initiatives. This accolade reinforces AMS’s commitment to empowering organizations to build high-performing teams and unlock new value through the external workforce. As the Future of Work unfolds, we’re here to ensure our clients stay ahead embracing change.” –Christoph Niebel, Chief Client Officer and President, Americas

The Outlook

AMS is positioned as a Future of Work-driven, talent-oriented, and innovation-heavy workforce solutions stalwart, seamlessly transforming talent acquisition through total talent intelligence and digitized hiring optimization. By converging advanced AI-powered functionality with agile direct sourcing and recruitment methodologies, AMS will continue to empower organizations to navigate the complex talent ecosystem with unprecedented, strategic precision.

The FOWX Fifteen: Opptly

Direct Sourcing Solution Providers Talent Acquisition Technology and Innovation by Christopher J. Dwyer on 11/22/2024

The Background

Quick…name the most electrifying word in today’s business landscape. I’ll give you 10 seconds. Wait, you didn’t even need 10 seconds, did you?

“Artificial intelligence” rolls off your tongue faster than a machine learning algorithm processes data..and for good reason: AI has become the cornerstone of innovation, seamlessly weaving through enterprise ecosystems – from the intricate networks of IT and analytics to the strategic realms of finance and talent acquisition.

Recent groundbreaking research from Ardent Partners and Future of Work Exchange reveals a transformative landscape: an overwhelming 82% of businesses entered 2024 with a strategic mandate to amplify their artificial intelligence capabilities. Even more revealing? Among HR and talent acquisition leaders, that number skyrockets to nearly 95% – a clear signal of a profound technological revolution.

This isn’t just about technological adoption, though; it’s about a fundamental reimagination of talent strategy. AI represents more than a tool – it’s a strategic accelerant that empowers talent leaders to transcend traditional boundaries. By harnessing next-generation analytics, organizations can now dynamically map, find, and engage talent, while simultaneously building robust, forward-looking skills taxonomies that don’t just predict the Future of Work – they actively shape it.

Enter Opptly.

Why They Were Selected

Opptly’s core offerings revolve around progressive functionality within direct sourcing, candidate engagement, skills-based hiring, and skills taxonomy development. However, the platform is so much more than the sum of these attributes, as the solution is a true “people technology” that is actively blazing a path forward within the Future of Work movement.

The proprietary and future-leaning artificial intelligence-driven technology within the Opptly platform represents the veritable future of AI in talent acquisition. Opptly’s advanced AI offerings seamlessly match the best talent with mission-critical opportunities by analyzing deep professional insights, skills, expertise, and project requirements in real-time, all while factoring in progressive candidate elements such as culture, diversity, etc.

Through sophisticated machine learning algorithms and NLP-augmented functionality, Opptly optimizes the entire talent lifecycle – from sourcing and vetting to engagement and project success – delivering unparalleled efficiency and precision in the direct sourcing, talent acquisition, and workforce management ecosystems.

In Their Own Words

“Opptly is proud to be included amongst other Best-in-Class platforms and solutions in the talent technology arena. This accolade is a testament to our unwavering commitment to truly unbiased artificial intelligence that can revolutionize the ways businesses find, engage, and manage their total talent. Opptly represents the future of hiring – where cutting-edge technology meets human potential, creating a seamless, intelligent, and equitable dynamic that transforms how organizations and talent connect, collaborate, and succeed.” – Lori Hock, CEO of Opptly

The Outlook

Simply put, Opptly is a pure technological representation of the Future of Work movement: next-generation functionality, AI-fueled talent innovation, and cutting-edge, skills-based hiring offerings that are actively revolutionizing the ways businesses address how work is done. As artificial intelligence continues to dominate talent acquisition strategies, Opptly and its progressive AI sophistication will continue to help enterprises dynamically adapt to modern workforce trends, seamlessly match top-tier talent with critical opportunities, transform their talent strategies, and provide an intelligent and infinitely scalable competitive advantage.

Digital Credentials Provide Talent Visibility, Skill Recognition

Business Leadership Contingent Workforce Direct Sourcing General Insights HR Talent Acquisition Technology and Innovation by John Yuva on 11/14/2024

As people’s careers progress, they establish a professional profile comprised of a resume, portfolio, performance reviews, letters of recommendation, degrees, certifications, memberships, and other career achievements. Often, these paper-based items are dispersed and sometimes forgotten over time. However, they are all critical pieces of employees’ professional identities that make them unique in the workforce. Even more important, they represent their skills and competencies to potential or current employers.

What is the answer? Enter the world of digital credentials.

A Digitized, Verifiable Professional Profile

At the foundational level, candidates convert their professional profiles into digitized and verifiable credentials that enterprises access quickly and securely when recruiting or promoting staff. In today’s aggressive labor market, having digital credentials is a competitive differentiator in the workforce. It separates a candidate’s application from random submissions, thus streamlining the selection process and generating cost savings for the hiring enterprise through greater efficiencies.

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Direct Sourcing Gains an Assist with Chatbots

Business Leadership Contingent Workforce Direct Sourcing General Insights HR Talent Acquisition Technology and Innovation by John Yuva on 10/24/2024

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

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

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

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The Future of Work Exchange Podcast, Episode 801: Direct Sourcing Panel Discussion With Beeline, Opptly, Raise, and Talent Solutions TAPFIN

Direct Sourcing Podcast by Christopher J. Dwyer on 10/03/2024

Season Eight of the Future of Work Exchange Podcast kicks off with a dynamic panel discussion on direct sourcing. Rebecca Valladares (Opptly), Brian Hoffmeyer (Beeline), Tim Rhodes (Raise), and Matthew McCartney Waggle (Talent Solutions TAPFIN) join me to discuss the state of direct sourcing, AI’s impact on hiring and recruitment, the future of direct sourcing programs, how skills-based hiring will reshape talent acquisition, and more. Tune in!

Artificial Intelligence, Contingent Workforce Management, and the Future of Work (On-Demand Webinar)

Contingent Workforce Direct Sourcing Talent Acquisition Technology and Innovation Video by Christopher J. Dwyer on 08/30/2024

Earlier this week, Ardent Partners and the Future of Work Exchange hosted an exclusive webcast focused on AI-powered contingent workforce management and its impact within the Future of Work movement. I was joined by Opptly’s Lori Hock (CEO), Beeline’s Colleen Tiner (Chief Product Officer), and NLP Logix’s Matt Berseth (CIO, co-founder) to discuss a wide range of hot topics under the artificial intelligence umbrella, including:

The true adoption and utilization of artificial intelligence within today’s extended workforce programs, hiring strategies, and talent acquisition initiatives.
The link between AI and skills-based hiring.
How businesses can move from an “education phase” to “adoption phase” for their AI initiatives.
How AI can supercharge and optimize direct sourcing strategies.
Why AI-fueled skills taxonomies are the foundation of a skills-based hiring approach.

Check out an on-demand replay of the webinar below.

The Technology Revolution and its Impact on Talent Acquisition and Workforce Management

Contingent Workforce Direct Sourcing Solution Providers Talent Acquisition Technology and Innovation by Christopher J. Dwyer on 08/19/2024

It almost seems like we are floating in a constant vacuum of evolution. The economy continues to spin, technology progresses at an unprecedented clip, businesses continue to optimize their operations in such a way that they no longer resemble the past, and, most critically, the talent arena remains in a state of perpetual growth and revolution.

No other industry is as impacted by the developments in the technology space as much as talent acquisition and workforce management. The advent and rapid deployment of artificial intelligence has absolutely transformed so many facets of both ordinary life and the business spectrum, however, its impact is ever-present in a world in which its many automated arms have the ability to revolutionize so many organizational attributes.

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Digital Staffing’s Impact on the Future of Work

Contingent Workforce Direct Sourcing Talent Technology and Innovation by Christopher J. Dwyer on 08/12/2024

In the ever-evolving landscape of talent and work, the phrase “digital staffing” has emerged as a pervasive buzzword, encompassing a wide array of solutions designed to streamline the process of finding, engaging, and sourcing workers. This term has transcended its origins and evolved into a transformative force that is reshaping the way businesses access and manage their talent pools. Ardent Partners and the Future of Work Exchange (FOWX) have often discussed digital staffing technology as a game-changer in the greater world of work.

At its core, digital staffing technology represents solutions that empower enterprises to hire freelance, independent, and contingent talent without the need for intermediary systems or suppliers. These solutions traverse beyond just the recruitment process; they encompass end-to-end workforce management, encompassing vital components such as project management, worker tracking, worker classification, compliance, and risk mitigation.

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One of the most significant drivers behind the rapid adoption of digital staffing technology is the pressing need for organizations to be more agile and adaptive in an ever-changing business landscape. The Gig Economy, remote work trends, and the desire for flexible talent solutions have all converged to make digital staffing technology a paramount consideration for forward-thinking enterprises.

These platforms provide companies with the agility to scale their workforce up or down as needed, ensuring they can swiftly adapt to market shifts or unforeseen challenges. Moreover, they grant organizations the power to tap into a global talent pool, unlocking an unprecedented level of diversity and expertise. In an era where talent is a critical competitive advantage (and often an enterprise’s top differentiator), these solutions empower businesses to secure the best-fit talent, regardless of geographical constraints.