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Direct Sourcing

The Elements That Will Shape the Skills-Based Organization

Here’s a phrase that’ll be mentioned many times throughout 2023: the skills-based organization will be the one that thrives during what could be an uneven and uncertain year ahead. Skills is akin to currency in today’s volatile market in such a way that it seemingly creates a have/have not business society. Those with top-tier skills will flourish, and, those who don’t, well…

The latest United States jobs report was rosy from a certain perspective (adding 517,000 jobs in January alone), one that reflects not only the lowest unemployment figures in nearly 55 years, but also an awkward juxtaposition of the discussions around an economic downturn and the continued fight against inflation.

For all the talk about a blooming-yet-complicated job market, there’s another side to this positive news. Ardent Partners and Future of Work Exchange research finds that 73% of businesses currently face a critical challenge in the months ahead: a lack of candidates with the required skillsets for open positions. This is yet another representation of why the skills-based organization (SBO) is a true opportunity to, essentially, reimagine the ways they think about talent acquisition and the role of talent in getting work done.

The most progressive way of thinking here is to apply agility-led principles to the realm of talent acquisition and talent engagement by 1) harnessing the power of artificial intelligence and machine learning to revamp the candidate-matching process, 2) expanding “known” skills taxonomy in an automated manner to account for innovative and future roles, 3) developing a central, on-demand database of skillsets across talent communities (talent pools, talent networks, current employees, etc.), and, 4) leveraging a multi-dimensional nexus of skillsets and expertise from which to address new and evolving requirements based on the trajectory of the greater organization.

The foundational elements of the skills-based organization revolve around the concepts of rethinking the parallels between talent and work; thus, the very future of the skills-based organization depends on forward-thinking strategies, ideas, and, of course technology. Here are the crucial elements that will shape the SBO in the months ahead:

  • Digital credentialing will emerge as a powerful disruptor in the skills validation market. Even in the technologically-advanced days in which we live, validating skillsets and expertise is largely a manual game. Talent acquisition execs and hiring managers (as well as other core HR leaders) must review portfolios, speak to references, confirm education and backgrounds, etc. to ensure that a candidate holds the proper skillsets for the role in which it is applying. Digital credentialing platforms remove nearly all of the guesswork and the tactical elements of skills validation and provide a veritable gateway into verified skillsets, strengths, certifications, etc. that candidates can maintain throughout the duration of their career. Solutions like Credly, Sertifier, Accredible, and Certifier are revolutionizing both the candidate-facing and hiring-led aspects of digital credentialing.
  • Blockchain realizes its potential and becomes a gateway for talent. Across the business spectrum, blockchain has so many potential paths: augmenting data warehousing, tightening legal and financial intelligence, and, yes, reinventing the ways enterprises find and connect with talent. In a hyper-competitive and globalized talent marketplace, the power of blockchain truly shines through; by defragmenting traditional barriers to talent acquisition, blockchain-fueled candidate networks enable hiring managers (and similar leaders) with the ability, in real-time, to view candidate profiles, validate expertise, and confirm career data and portfolios. Candidates own their information, and, subsequently, their career pathways, an important factor in today’s labor market from the worker perspective. The speed in which blockchain presents a match and a connection can dwarf that of traditional hiring. Platforms like the non-profit Velocity Network and innovative solution Braintrust are helping businesses reboot their talent strategies.
  • AI moves firmly into the talent acquisition arena. Artificial intelligence has become, particularly over the past several years, a formidable means of visualizing workforce data through dynamic analytics. Predictive analytics and scenario-building capabilities within workforce management suites and VMS platforms have changed the way HR, procurement, and talent acquisition leaders access total talent intelligence and supercharge their talent-decision making with that data. However, 2023 is the year of AI in talent acquisition; it is imperative that businesses drive real workforce scalability and boost their skills-oriented approach by leveraging artificial intelligence to better validate candidate profiles, enhance skillset-to-job matching, and improve the overall hiring process. Talent acquisition is entering a new, AI-charged era in part because of the advanced technology that can seamlessly streamline the ways businesses not only engage candidates, but also the ways they catalyze the skills-matching experience. Platforms like Opptly represent this exciting new generation of technology, along with solutions like Phenom, Gem, and Gloat, as well as Magnit and both its ENGAGE Talent tool and total talent intelligence offering. Too, solutions such as Glider.ai (robust skills verification and candidate assessment), Fuel50 (recalibrating workforce intelligence), and HiredScore (next-generation, proactive talent-fueled AI) will also disrupt the concept of AI in talent acquisition.

One other factor that could play a pivotal role in the evolution of the skills-based organization is direct sourcing and its impact on digital recruitment, an arena that is founded on the ability to better match open positions with top-tier skillsets. Today’s direct sourcing platforms are a key cog in developing a skills-oriented approach towards talent acquisition, with solutions such as WorkLLama, whose AI-fueled recruitment tools revolutionize candidate collaboration and boost talent acquisition strategies, and LiveHire, whose end-to-end recruitment and direct sourcing technology facilitates a dynamic and holistic approach towards total talent management,

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Calling All HR, Talent Acquisition, and Procurement Execs (and Chief People Officers!)

The Future of Work is here and now. Business leaders aim to optimize the way they engage and source talent, manage their workforce, and ultimately address how work is done. Ardent Partners and the Future of Work Exchange are currently conducting a new research study that will fuel our 2023 research calendar and arm today’s HR, procurement, and talent acquisition executives with Best-in-Class strategies for:

  • Implementing new and innovative technology, such as artificial intelligence and blockchain.
  • Addressing progressive leadership transformation strategies.
  • Optimizing extended workforce management and contingent workforce management, and;
  • Leveraging the best capabilities and solutions for recession-proofing the business (and its workforce) in 2023.

Click here to participate in the new research study, which should take about 15 minutes of your time. All survey participants will receive complimentary access to the Future of Work Exchange’s entire 2023 research calendar, including new research studies on total talent management, direct sourcing, and more.

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A Time for Workforce Management Innovation

Humans are what drive the Future of Work today. What it all comes down to, in essence, is that a business relies on its people to get work done, to survive, and to thrive. The workforce has undergone some seismic shifts over the past several years, from the rise of the extended workforce to non-employee talent becoming a source of real enterprise agility.

Ardent Partners and Future of Work Exchange research has discovered that 82% of businesses leveraged more contingent workers and sources of external talent in 2022 than in 2021, a powerful statistic that represents the relative power of the extended workforce, its overall value, and its impact on enterprise operations.

Considering that the specter of an economic recession lingers, as well as Year Four of the Pandemic That Will Not End, this means that now, more than ever before, businesses will require Best-in-Class strategies and solutions for engaging the best-fit, best-aligned talent, and, of course, managing it in a frictionless way.

What this means, of course, is that the workforce solutions market is what will set the tone for enterprises as they reimagine their outlook for 2023 and ensure that talent-fueled agility is the foundation for success in the year ahead.

The great news, though, is that this technology industry is abound with innovation. Heavyweight platforms like Beeline bring cutting-edge workforce management functionality and a talent-centric focus that will assist enterprises in achieving true total workforce management, while solutions such as Magnit seamlessly connect top-tier direct sourcing, services procurement, total talent intelligence, and VMS technology under a frictionless platform approach. SAP Fieldglass continues to innovate around its idyllic blend of VMS, services procurement, and candidate management functionality, all of which are built on a foundation of high-powered analytics and intelligence offerings. Prosperix brings a truly unique “VMS network” vision to life through its next-generation solution, and VNDLY (a Workday company) converges procurement-centric solutions with the HR bliss of the Workday suite of technology. Coupa Software’s contingent workforce tool is an exemplary confluence of VMS technology, business spend management automation, and real-time talent visibility.

Technologies like Opptly are redefining talent acquisition via artificial intelligence-fueled functionality and dynamic candidate matching tools. LiveHire represents the convergence of deep direct sourcing, ATS, and CRM technology and real total talent management solutions. WorkLLama is a strong reflection of “Direct Sourcing 2.0,” in which robust, end-to-end workforce management technology catalyzes progressive candidate-focused functionality. HireGenics brings the power of enterprise brand management, “MSP 4.0” innovation, and diversity-led solutions to the direct sourcing arena. Worksuite (formerly Shortlist) continues to provide enterprises with an all-in-one, flexible platform that combines the power of VMS, digital staffing, and services procurement. HireArt’s unique approach converges workforce management functionality with forward-thinking talent curation, direct sourcing, and compliance management tools.

The realm of digital staffing is also actively contributing to the workforce innovation arena. Upwork, a giant in the talent marketplace solutions landscape, offers wide-scoping workforce management technology that is built on perhaps the world’s largest talent community. Toptal continues to revolutionize what “workforce agility” means to the modern business by enabling development of fully-scalable teams of top-tier, remote talent. The Mom Project’s continued evolution reflects their commitment to diverse talent acquisition, streamlined talent engagement operations, and Best-in-Class enterprise technology. Talmix leverages global talent intelligence and next-level automation to revamp the talent acquisition process.

Catalant‘s Expert Marketplace is more than a digital staffing solution, offering 80,000+ experts and freelancers in an enterprise platform that facilitates project-scoping, team management, payments, and compliance and risk management. GR8 People‘s innovative “Everyone Platform” is a stout, end-to-end tool that encompasses the best of recruitment technology, direct sourcing, ATS, and CRM that enables total talent management and a revolutionary candidate experience.

Artificial intelligence and next-level analytics are now front-and-center in the world of workforce management technology. HiredScore is an AI-fueled platform with “talent orchestration” technology that is perfectly-aligned with the evolving world of work’s need for real-time talent intelligence. Glider.ai continues to revolutionize candidate intelligence through assessment, interviewing, and engagement innovation.

With talent as the very nexus of the contemporary enterprise in 2023 and a linchpin to true business and workforce agility, organizations have access to the dynamic solutions that can transform talent acquisition, reimagine talent engagement, and spark next-generation workforce management.

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Revisiting the Blueprint for Direct Sourcing Success

Over the past few years, direct sourcing has emerged as perhaps the hottest talent-led strategy in the world of both talent acquisition and contingent workforce management. In pre-pandemic times, businesses understood that expanding their talent engagement efforts on building internal talent communities (via enterprise-led “agencies” that eschewed middle entities like staffing suppliers) was a powerful way to infuse new skillsets into the greater organization. During the pandemic, direct sourcing served as a robust means of keeping candidates engaged during uncertain times and augmenting workforce scalability. Today, direct sourcing represents the very future of talent acquisition.

With an ever-increasing number of talent channels, including digital staffing marketplaces, traditional staffing vendors, professional services, talent networks, and social media platforms, the ability to match project requirements with available skillsets has never been easier. However, it has also never been more competitive or difficult.  Businesses that harness the power of direct sourcing and talent pools have the ability to develop an agile workforce which can be the key differentiator needed to advance and grow in a marketplace that rewards dynamic, talent-led responses to new business pressures and challenges…especially what could be ahead as 2023 unfolds.

With so many organizations yet to undertake this journey, it is imperative to revisit these guidelines for direct sourcing success:

  • A deep understanding of total enterprise skillsets is required. No matter the industry, each organization is comprised of a collection of skillsets that, in aggregate, contribute to how work is done. Direct sourcing programs thrive on “skillset intelligence;” without it, initiatives lose their flair. If hiring managers understand which skillsets are in abundance or in high demand and which will be needed in the near future, building initial talent attraction strategies will be much more effective.
  • Integrated procurement, HR, and talent acquisition competencies are necessary for early-stage direct sourcing. The capabilities of these three units are required for a direct sourcing program to succeed: 1) procurement’s influence will drive hard cost savings through talent channel optimization, 2) HR’s impact will guide hiring managers and stakeholders to engage the strongest candidates, and 3) talent acquisition will drive the strategic vision for how to source talent based upon current and expected needs.
  • Focus on both brand and experience. The employer brand can be powerful in today’s labor market; many candidates want to ensure that they work for organizations that share their cultural and societal values. Also, the omnipresent notion of the “candidate experience” should guide direct sourcing processes such that job recruits experience a positive journey no matter if they are merely sitting in a talent pool or actively engaged for an open position or project.
  • Segmentation is more valuable than it initially seems. Segmenting talent pools may seem like a basic strategy; however, it can pay incredible dividends. Talent pool segmentation, be it via geography, compensation, skill, remote or in-person, certification, etc., allows hiring managers to quickly focus in on the talent required for a highly-complex project or initiative. Taking the time during the front-end of the direct sourcing process to segment talent pools can be hugely impactful to the overall program.
  • In direct sourcing, selecting and utilizing the right solutions is job one. The inherent power of today’s contingent workforce, human capital, and digital staffing solutions provides enterprises with the ability to automate crucial aspects of talent pool development and integrate these sources into the business’ broader talent acquisition processes. MSP solutions, VMS technology, and direct sourcing platforms all contribute to create a human- and technology-led direct sourcing program, helping to launch the initiative and ensure that all hiring managers have the ability to quickly access available talent pools.
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The Recession-Ready Enterprise

There has been great debate in recent months about a recession. Are we already in a recession? If a recession occurs, will it be light or something more impactful? Or will the economy be resilient and avoid a recession entirely? Enterprises in technology and media industries are already reacting to recession fears by laying off tens of thousands of workers. As we move through the first quarter of 2023, how could a recession impact the extended workforce?

Business As Usual

There’s no doubt we’re experiencing challenging economic times. However, businesses must continue with mission-critical projects and initiatives that often require specialized expertise. The skills gap remains inherent in many enterprises, leading to continued demand for contingent workers. And as the Future of Work Exchange research indicates, 47.5% of the enterprise workforce is comprised of extended workers. That figure cannot be ignored, especially during times of economic distress.

Digitization Evolution and Workforce Mercenaries

Despite the recessionary climate, there is an enterprise evolution occurring: digitization. Whether it’s talent acquisition platforms, accounts payable solutions, or larger enterprise resource planning systems, businesses are transforming from tactical (manual) to strategic (digital) strategies across the operational landscape. And with digitization comes the extended workforce.

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Introducing a New Subscription Model

To continue providing valuable insights and resources on the future of work and extended workforce management, we’re transitioning our site to a paid subscription model. While some posts will remain free, subscribing will grant you exclusive access to in-depth analysis, market research, expert interviews, and actionable strategies that will help improve your business. Solution providers and practitioners are invited to join today and gain a competitive edge by tracking the industry’s important innovations, emerging trends, and best practices.

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Managing the Extended Workforce Requires Agile Automation

A few weeks ago, I had the pleasure of joining VMS and extended workforce platform Beeline for an exclusive webcast focused on transformative technology’s role in the Future of Work movement. Alongside Lesley Walsh, the solution provider’s VP of Client Relationship Management, the event discussed how the new world of work and talent requires agile automation to navigate an uncertain 2023, as well as the role of extended workforce technology in supercharging contingent workforce management (CWM) programs and initiatives.

Lesley and I not only chatted all things Future of Work (including the state of work today, the volatile labor market, etc.) and “human”-led concepts (such as empathy-driven leadership and more flexible, human-focused enterprise thinking), but also revealed some brand-new research findings from the Ardent Partners/Future of Work Exchange research study, Why the Extended Workforce (and Future of Work) Requires Agile Automation…which can be accessed here. And, enjoy an excerpt below:

The Future of Work Exchange frequently states: “Flexibility is the Future of Work.” The ultimate state of “work optimization” is more than reimagining specific facets of enterprise operations. In essence, there are three main tenets of the Future of Work movement: 1) the evolution of talent engagement and talent acquisition, 2) the impact of new technology and innovation, and 3) the transformation of business leadership.

The extended workforce of 2023 comprises nearly half of the average company’s total talent (47.5%); the growing size and strategic impact of this workforce requires that businesses leverage tactical and strategic efficiencies to get work done effectively and adeptly. Extended workforce management, much like typical CWM, requires end-to-end efficiencies and high flexibility. These operational elements allow executive leaders to shift, scale, and re-form their workforce initiatives as shifts in economic and global markets arise.

In 2023, the fluid and evolving nature of the extended workforce means that businesses must navigate uncertainty while ensuring that top-tier talent is engaged and sourced effectively. While more mature CWM programs can withstand these new, converged pressures, all businesses must move from tactical to strategic when engaging and managing their extended workforce to drive the most value from these unique skillsets and expertise.

“Traditional” elements such as cost savings and time-to-fill rates are obviously crucial attributes to any extended workforce management program. However, it is the way enterprises blend contemporary nuances of today’s evolving talent architecture that determines how they will thrive in 2023.

Download the new research study here, and, if you missed last month’s webcast with Beeline, check out an on-demand replay here.

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BEST OF 2022: The Link Between Direct Sourcing and Talent Sustainability

[The Future of Work Exchange will be back next week with all-new content and insights to kick off the new year. Until then, enjoy our “Best Of” series that revisits some of our most-read articles from 2022.]

Many HR, talent acquisition, and contingent workforce program leaders overlook particular phases of direct sourcing, especially talent curation and segmentation, since they have been conditioned to manage their processes within the confines of a traditional contingent workforce management (CWM) initiative that follows more procurement-oriented procedures (i.e., supply management, heavy cost focus, etc.). Even under a centralized CWM program, the most critical direct sourcing strategies and capabilities require more time, focus, and resources than what is typically available with non-employee workforce management.

For example, talent curation is a critical piece to the direct sourcing puzzle and is considered crucial to the entire hierarchy of the process. In a direct sourcing program, recruiting expertise (via an MSP, talent curation partner, etc.) curates talent for the business, ultimately helping its client build a deep talent cloud or community using a series of augmented approaches, including branded job portals, targeted ads and recruitment marketing campaigns, and artificial intelligence-led candidate matching. The solution that is leading the direct sourcing program can also leverage the organization’s brand power to attract potential candidates, as well.

While some enterprises maintain deep pools of talent that are more “general” in scope, these may not be effective from an agile workforce perspective. Organizations typically overlook talent pool segmentation and maintain a single repository of talent pool candidates; this failure to segment is a missed opportunity to build a nimbler approach to finding candidates based on geography, skillset, role, etc. Talent pool segmentation enables enterprises to better “organize” their candidates for easier, faster, and better alignment with future requirements, as well.

A typical first step in talent community segmentation is to conduct due diligence around candidate skillsets, past work history, compensation, proficiency, and overall enterprise hiring alignment. Segmentation is what allows a business to be more dynamic in how it addresses its talent needs. It also answers many current sourcing challenges while fostering relationships with candidates with emerging and new skillsets or expertise.

By spending more time in the initial phases of direct sourcing (and, subsequently, executing consistent maintenance of internal talent communities/pools), businesses are able to build a more seamless bridge to “talent sustainability,” which the Future of Work Exchange defines as a by-product of leveraging workforce solutions (such as extended workforce technology, VMS, etc.), direct sourcing channels, and both private and public talent communities, etc. to build self-sustaining outlets of talent that 1) map to evolving skills requirements across the enterprise given product development and the progression of the greater organization, 2) reflect existing expertise and skillsets across the enterprise that can be leveraged for real-time utilization, and, 3) allow hiring managers and other talent-led executives to leverage nurture and candidate experience strategies to ensure that all networked workers are amiable and open to reengagement for new and/or continued projects and initiatives.

The Great Resignation has become more volatile, and with its wide-sweeping ramifications playing critical roles in how enterprises structure their workforce in the second half of the year, it is crucial that strategies such as direct sourcing contribute to overall talent scalability. Leveraging the power of direct sourcing’s key elements (and associated technology) can assist businesses in maximizing the positive elements of the “Talent Revolution” and parlay them into means of attracting the best-fit, highest-quality talent. Talent sustainability will be the way businesses thrive in the near future…and direct sourcing is a direct link to get them there.

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The Six Trends That Will Shape The Future of Work in 2023 (On-Demand Webinar)

Last week, Ardent Partners and the Future of Work Exchange hosted an exclusive webcast focused on the six critical trends that will shape the Future of Work in 2023 and beyond. The Six Trends That Will Shape The Future of Work in 2023 featured an in-depth discussion on the various strategies, approaches, technology, functionality, and innovation that are set to pave the way for work optimization in the year ahead. The Exchange‘s Managing Director, Christopher J. Dwyer, discussed:

  • How “non-technological” strategies, such as skills-based hiring, will have a massive impact.
  • Why direct sourcing and omni-channel talent acquisition will play major roles in 2023’s talent acquisition initiatives.
  • How the transformation of business leadership (including conscious leadership styles) will be required for workforce management.
  • The roles of extended workforce, VMS, direct sourcing, and MSP solutions on talent engagement and workforce management, and;
  • How businesses can best prepare to thrive in 2023 by leveraging the power of their talent and talent strategies.

Check out the on-demand edition of the webcast below, and be sure to participate in our new research study to gain complete access to our entire research calendar, which will include studies, reports, and thought leadership pieces centered around direct sourcing, total talent management, HR’s role in the Future of Work, extended workforce management, and much, much more.

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Key Providers for 2022: Talent Solutions TAPFIN

The Background:

The Future of Work dictates one main measure: enterprises must evolve alongside specific global factors or fail to thrive in an increasingly-dynamic business arena. The world of talent and work has certainly played a major role in this progression, with many attributes of workforce management, talent acquisition, and talent engagement forcing businesses to reimagine the ways they find, source, and manage their candidates and workers.

Today, businesses require robust solutions that enable them with the proper tools and strategies to tackle this new world of work; “traditional solutions” are no longer considered as such, with Managed Service Providers (MSP) evolving in parallel to the ecosystem around them by providing deeper offerings such as direct sourcing, advanced services procurement, and next-generation talent acquisition.

Enter Talent Solutions TAPFIN.

Why They Were Selected:

Powered by staffing giant Manpower Group and driven by over 40 years of industry-leading success, Talent Solutions TAPFIN has long been a dominant player in the workforce management landscape. Its robust blend of contingent workforce/MSP, RPO, and Right Management offerings positions the company as a leader in the extended workforce industry.

The solution’s innovative PowerSuite technology stack allows the company to effectively blend its Best-in-Class offerings, while TAPFIN’s powerful IntelliReach analytics portal and data visualizer converges artificial intelligence-led data with various third-party sources (client, suppliers, market, etc. data) to provide customers with scenario-building and predictive analytics capabilities.

An early dynamo in the direct sourcing space, Talent Solutions TAPFIN also offers robust services and technology in this arena through the PowerSuite stack and a comprehensive ecosystem of top direct sourcing platforms.

In Their Own Words:

ManpowerGroup® (NYSE: MAN), the leading global workforce solutions company, helps organizations transform in a fast-changing world of work by sourcing, assessing, developing and managing the talent that enables them to win. We develop innovative solutions for hundreds of thousands of organizations every year, providing them with skilled talent while finding meaningful, sustainable employment for millions of people across a wide range of industries and skills. Our expert family of brands – Manpower, Experis, and Talent Solutions – creates substantially more value for candidates and clients across more than 75 countries and territories and has done so for over 70 years. We are recognized consistently for our diversity – as a best place to work for Women, Inclusion, Equality, and Disability and in 2022 ManpowerGroup was named one of the World’s Most Ethical Companies for the 13th year – all confirming our position as the brand of choice for in-demand talent.

Talent Solutions TAPFIN brings together our RPO, TAPFIN, and Right Management offerings to deliver technology-enabled, innovative workforce solutions to our clients. Our integrated solutions provide end-to-end, data-driven solutions for talent attraction, acquisition, development and upskilling, and retention at scale.

The Outlook:

Talent Solutions TAPFIN is a pioneer in two distinct senses: 1) it is still considered an original powerhouse MSP-led organization that was one of the first distinct managed service leaders in the market decades ago, and, 2) it has evolved its offerings in such a way that it is a true, Future of Work-oriented MSP that can provide innovative value to the modern business in many meaningful ways.

TAPFIN was one of the first MSPs to go to market with a remote work offering when the COVID-19 pandemic hit; in today’s frenetic world of work, the ability for an MSP to blend remote and hybrid work support into the fabric of its core solutions (such as how users engage, source, onboard, and track remote candidates) is a pure differentiator.

In addition to the aforementioned offerings, other attributes of Talent Solutions TAPFIN’s arsenal such as its advanced services procurement offering (which blends internal expertise and vested partnership approaches to boost negotiation power and enhance supplier relationships) proves that the solution is the ideal complement to a Future of Work-led business world.

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The Future of Work Exchange Podcast, Episode 704: A Conversation With Sean Ring, VP of On-Demand Talent Solutions at People 2.0

An all-new episode of the Future of Work Exchange Podcast, sponsored by Beeline, features a discussion with Sean Ring, VP of On-Demand Talent Solutions at People 2.0. Sean and I chat about omni-channel talent acquisition, the future of direct sourcing, the talent-led revolution, and what the Future of Work has in store for 2023.

Tune into Episode 704 of The Future of Work Exchange Podcast below, or subscribe on Apple Music, Spotify, Stitcher, or iHeartRadio.

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