Future of Work Archives - The Future of Work Exchange

Employee Experience and the Power of Engagement

Business Leadership Diversity and Inclusion General Insights HR Talent by John Yuva on 08/05/2024

One business constant over the last four years is uncertainty. Whether it’s the economy, geopolitics, or the overall market, enterprises must contend with that sense of the unknown. As such, having a flexible and agile workforce is essential when market dynamics shift. Flexibility and agility often derive from employee experience (EX) initiatives. Organizations that prioritize employee experience are more internally aligned and can better pivot when needs arise.

However, essential to employee experience is understanding that it goes beyond employee satisfaction. Rather, it is a strategic imperative that directly influences organizational culture, success, and the ability to navigate an ever-changing business landscape.

Employee Experience Begins and Ends with Engagement

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Fractional Executives Filling Critical Leadership Gaps

Business Leadership General Insights Talent Talent Acquisition by John Yuva on 06/17/2024

The Future of Work is shaped by several evolving workplace trends. We’ve spoken about many of them on The Future of Work Exchange and CPO Rising websites. Today, in part one of two, we’re exploring the topic of the fractional executive — a game-changing role for organizations lacking executive expertise.

The fractional executive serves as a flexible and on-demand approach to talent acquisition. Whether it’s a role such as a chief marketing officer (CMO) or chief procurement officer (CPO), businesses now have scalable talent options to execute critical programs and initiatives.

Consider the fractional CPO. Small- to medium-sized enterprises (those with less than $50 million in revenue) that lack a mature or formal procurement department can source the services of a fractional CPO who provides similar expertise as a permanent executive but at a lower cost. Whether it’s a part-time or project-based position, businesses can secure this essential role and its associated insights, making it attainable for any sized organization. A fractional CPO can deliver a variety of benefits, including:

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HR and Procurement Align for the Future of Work

Business Leadership Contingent Workforce General Insights HR Procurement Talent Talent Acquisition Technology and Innovation by John Yuva on 04/01/2024

It makes sense to assume that the ownership of Future of Work execution rests in the hands of HR executives. With much of the focus on total talent management and talent acquisition strategies, HR spearheads much of the decision-making in those areas. However, another business function also plays a critical role in the Future of Work paradigm — procurement. Shifts in global supply chain dynamics and the transition from cost- to value-based supplier management, means Chief Procurement Officers and their teams are well-positioned to support Future of Work initiatives.

Traditionally, procurement focused on cost savings in the supply base and was measured against those numbers annually. However, over time, CPOs realized the criticality of supplier relationships and the resulting innovations that enabled greater marketplace competitiveness. Rather than squeezing pennies from suppliers, the relationships evolved into collaborative, value-added partnerships.

With a value-based approach, procurement is positioned to lead and support various aspects of Future of Work strategies. Let’s look at what both procurement and HR core enterprise contributions entail, followed by how the two functions intersect to complement Future of Work initiatives.

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DOL Ruling Leaves Uncertainty for Contingent Workers

Business Leadership Contingent Workforce Direct Sourcing General Insights HR Talent Acquisition by John Yuva on 02/20/2024

(Author Note: This article intends to inform about a critical government ruling taking effect in a few weeks as well as encourage discussion on social media. See a post by Christopher Dwyer, managing director of the Future of Work Exchange, this week on LinkedIn to share your opinions and feedback.)

Enterprises of all sizes rely on contingent workers as a critical segment of their workforce and operational support. However, a final ruling on the 2021 IC Rule issued by the U.S. Department of Labor (DOL) has the potential to upend the gig economy when it goes into effect on March 11. The ruling brings into focus how organizations classify an employee versus a contractual worker under the Fair Labor Standards Act. The final ruling presents stricter guidelines on independent contractor classification. The ramifications on labor costs, workforce policy, and talent strategy could be significant.

A Ruling Focused on Guidance

The purpose of the DOL’s ruling is twofold: 1) institute guidelines for how to classify workers as independent contractors and 2) prevent employee misclassification — a serious problem that the DOL says “impacts workers’ rights to minimum wage and overtime pay, facilitates wage theft, allows some employers to undercut their law-abiding competition and hurts the economy at-large.”

According to Acting Secretary of Labor, Julie Su, “Misclassifying employees as independent contractors is a serious issue that deprives workers of basic rights and protections,” she explained. “This rule will help protect workers, especially those facing the greatest risk of exploitation, by making sure they are classified properly and that they receive the wages they’ve earned.”

Separately, the DOL’s final ruling rescinds the Trump era 2021 Independent Contractor Rule that the “department believes is not consistent with the law and longstanding judicial precedent.”

The DOL published the following to describe and explain its final ruling: This final rule rescinds the Independent Contractor Status Under the Fair Labor Standards Act rule (2021 IC Rule), that was published on January 7, 2021, and replaces it with an analysis for determining employee or independent contractor status that is more consistent with the FLSA as interpreted by longstanding judicial precedent.

The misclassification of employees as independent contractors may deny workers minimum wage, overtime pay, and other protections. This final rule will reduce the risk that employees are misclassified as independent contractors while providing a consistent approach for businesses that engage with individuals who are in business for themselves.

Since the issuance of the final ruling last month (January 9), its reception has trended toward the negative. One of the biggest concerns is the lack of clarity in the ruling itself.

Resounding Opposition Follows Final Ruling

While the ruling is designed to offer protections (e.g., overtime pay, benefits, etc.) for employees misclassified as contingent workers, it brings possible drawbacks to both workers and organizations. Reaction to the ruling was met with criticism and concern by several industry representatives.

Marc Freedman, U.S. Chamber of Commerce Vice President of Workplace Policy — Link:

“The Department of Labor’s new regulation redefining when someone is an employee or an independent contractor is clearly biased towards declaring most independent contractors as employees, a move that will decrease flexibility and opportunity and result in lost earning opportunities for millions of Americans,” he said.

“It threatens the flexibility of individuals to work when and how they want and could have significant negative impacts on our economy. Making matters worse, the rule is completely unnecessary, as the Department continues to report success in cracking down on bad actors that are misclassifying workers. The U.S. Chamber will carefully evaluate our options going forward, including litigation,” Freedman added.

Emily Dickens, Society for Human Resource Management (SHRM) Chief of Staff, Head of Public Affairs and Corporate Secretary — Link:

“The DOL’s action … ‘underscores the importance of clear and consistent regulations, fostering diverse business relationships essential for the demands of the modern economy. HR plays a vital role in ensuring proper worker classification,’ she said.

‘However, the ongoing shifts in regulatory guidance impose compliance burdens and legal uncertainties on HR professionals and business executives.’”

Timothy Taylor, Holland & Knight Labor, Employment and Benefits Attorney (in an article for Law360) — Link:

Taylor’s expressed concerns about the challenges the rule poses for both businesses and independent contractors: “There are no real surprises, but the rule is just going to remain very challenging and very problematic for businesses and for workers who want to retain their independent status across the board,” he said.

Chris Spear, American Trucking Associations’ President and CEO — Link:

“I can think of nothing more un-American than for the government to extinguish the freedom of individuals to choose work arrangements that suit their needs and fulfill their ambitions. More than 350,000 truckers choose to work as independent contractors because of the economic opportunity it creates and the flexibility it provides, enabling them to run their own business and choose their own hours and routes. That freedom of choice has been an enormous source of empowerment for women, minorities, and immigrants pursuing the American Dream,” Spear said.

It is clear based on opinions from some of the largest industry groups that we haven’t heard the last about the DOL’s final ruling.

Uncertainties Ahead for Enterprises and the FOW

The true impact of the final ruling on workers, enterprises, and the Future of Work at large, has yet to be seen. However, here are a few closing thoughts on how things could change moving forward.

Labor costs. Should organizations find themselves classifying more workers as employees (who were previously independent contractors), expect a steep rise in labor costs for those employers. Purportedly, to prevent misclassifications and system abuse, there are stricter guidelines around classifying workers as independent contractors.

Workforce planning. With nearly 50% of an enterprise’s total workforce comprised of contingent labor, the final ruling could have significant implications on talent allocation. With fewer contingent workers, how does that affect talent acquisition and total talent management strategies? Having the right talent at the right time could take on an entirely new meaning.

Direct sourcing strategy. A global talent pool to attract and hire contingent workers is a major component of direct sourcing. Enterprises with a focus on skills-based hiring have boundaryless options when it comes to contingent labor. However, a reduction in contingent labor coupled with stricter remote work policies suddenly shrinks the potential labor pool drastically.

Worker flexibility. The benefit of work-life balance for an employee is often viewed as an acceptable tradeoff to higher compensation. The same holds true for contingent workers. The scheduling flexibility and client freedom are just a couple of benefits afforded to contingent workers. Under the final ruling, however, those advantages could disappear under an “employee” classification. For example, a noncompete clause as an employee could affect the livelihood of a contingent worker.

FOW paradigm. A Future of Work principle is about being future ready by sourcing talent to execute today as well as tomorrow. Contingent workers are the backbone of that principle. A government ruling that could impact a large percentage of nearly 50% of the workforce is worth taking a closer look. Enterprises hire contingent workers for many strategic positions. It would serve them well to find a happy medium around labor protections for this critical workforce segment.

The Future of Work Exchange will continue to cover this issue and others like it. We encourage you to provide your opinions and feedback. Follow our managing director and thought leader Christopher Dwyer on LinkedIn to be part of the discussion.

Adopt the Lifelong Learner Mentality

Business Leadership General Insights Talent by John Yuva on 02/01/2024

The early weeks of the new year are an ideal time to reflect, revise, and rejuvenate. What professional goals do I want to accomplish in the new year? Where am I in my career trajectory? Do I have the skills and knowledge to meet my objectives? These are all relevant and important questions when assessing one’s professional future. However, what if you could keep those questions at the forefront all year, every year, throughout your professional life — with goal assessment and attainment a constant? Adopting a lifelong learning mentality makes professional development a daily driver and career advancement a priority.

Adaptability to Shifting Trends

Lifelong learning is a growing aspect of the Future of Work as shifting workplace trends require greater adaptability. As such, workers are taking more control of reskilling and upskilling efforts to remain ahead of the curve. In fact, according to ManpowerGroup’s 2023 Workplace Trends Report, 57% of employees are pursuing training outside of work.

“What’s important to people is that they have the relevancy of skills that are marketable today as the world of work evolves,” says Nimo Shah, director of MyPath and Experis Academy for ManpowerGroup.

Personal Growth, Employee Retention

Becoming a lifelong learner involves making professional development and discovery an ongoing initiative. It can mean dedicating a portion of the week to reading about new technologies or trends online, joining a networking or professional group, or enrolling in a class or certificate/degree program to learn new skills. Whatever the path, it’s about commitment to personal and professional growth. This can pay dividends when growing one’s professional brand and deeper connections within the enterprise.

An article by Georgia Tech’s Professional Education department, states, “As employees’ expectations change, lifelong learning can play an integral role in helping them integrate more deeply into the workplace. …If companies invest in lifelong learning options and advocate for the personal and professional development of their teams, it could help with employee retention.”

Journey Toward Professional Discovery

Need some guidance on your lifelong learning journey? The following are strategies to incorporate (one or all) into your daily, weekly, or monthly self-development regimen.

Maintain stretch goals. Setting goals and achieving them provides a sense of accomplishment. However, having stretch goals provides direction and motivation to go beyond what is already achieved. Typically, stretch goals are difficult to reach, if not impossible, but having more attainable goals that are related to a stretch goal can result in some unexpected and positive results — as well as innovative thinking. A stretch goal on the lifelong learning path could be to read 50 business books in a year when your annual average is five books. But with certain goals in place, you’re able to read 12 books (one per month).

Utilize learning channels. Whether it’s online or in-person learning, there are several options to reskill, upskill, or pursue a second career. Udemy, for example, has 57 million users and more than 213,000 courses covering a wide range of categories. LinkedIn Learning (formerly Lynda.com) is another excellent e-learning option boasting more than 22,000 courses. If earning a certificate in a specified area of study is your goal, consider a community college. Certificate programs can be completed within months and provide the essential skills for career advancement.

Recalibrate network strategies. How many of us use LinkedIn mostly to approve or make the occasional connection request, browse posts, and tinker with our profile? Commit to recalibrating our networking strategy (particularly on LinkedIn) to really connect. Use the platform to join groups and engage with members. Like posts and leave comments. Reach out to prolific LinkedIn members and subject matter experts to ask questions and initiate dialogue. Attend LinkedIn live events on topics of interest. LinkedIn is populated with tens of thousands of members who are eager to share their knowledge and provide insight into your journey of lifelong learning.

Chase curiosity and wonder. Simply put, if you’re curious about something, find the answer. What is the potential impact of generative AI on my enterprise and its industry? Start researching and reaching out to subject matter experts on LinkedIn to get insights. Lifelong learning is often about chasing the bigger questions and educating yourself while finding the answers. Create a Top 10 list of topics you want to know more about, then three questions under each topic to explore. Prioritize the topics/questions based on your goals and timetable. Lifelong learning is about the journey.

Document the known and unknown. Create a spreadsheet for topics of curiosity and include valuable links to your findings. Individual sheets within a spreadsheet for different topics. Complement the spreadsheet with a journal documenting your thoughts, wins, and losses of lifelong learning. Often, putting pen to paper (or fingers to keys) can lead to unexpected connections and a-ha moments. It’s why going down this path frequently results in innovative thinking and outcomes. Document your progress for a month and see how it feels. You may be surprised how rewarding and motivating it can be to see tangible progress of your goals.

Build a schedule that integrates one or more of these strategies and track short- and long-term progress. Look for a mentor or coach who can provide supportive accountability and insight into growth areas.

Enterprise Support and Reward

While lifelong learning is more of a personal journey for an employee, it doesn’t mean enterprises can’t be active guides. Managers who take an interest and participate in their employees’ professional development can generate growth and career opportunities while gaining benefits as well.

As part of LinkedIn’s Global Talent Trends report, Stephanie Conway, senior director of talent development at LinkedIn, says employees who set clear career goals are more focused on the skills to attain those objectives.

“An important enabler in my experience is a shift away from looking at specific job titles when helping employees consider their next move. Instead, it is more effective to identify specific skills they want to develop and experiences that might help them do that,” Conway says.

“A first step is to show employees what career development at your company looks like – through any number of programs, like job shadowing, rotations, or sharing internal-mobility stories. This can both further personal career development and start to build organizational resilience and agility,” she adds.

Lifelong learning begins with that spark of curiosity that can open the door to a world of possibilities. Take charge of your personal and professional development to achieve your workplace and longer-term career goals.

Talent Experts on FOWX — Evolution of Staffing and Growth of Extended Workforce

Direct Sourcing General Insights Podcast Solution Providers Talent Talent Acquisition Technology and Innovation Uncategorized by Christopher J. Dwyer on 01/25/2024

Our “Talent Expert Series” on FOWX features podcast excerpts of today’s Future of Work thought leaders who appear on The Future of Work Exchange Podcast. The series kicks off with an excerpt from Season 7, Episode 12 featuring Kara Kaplan, CEO of High5, as she discusses a range of topics from the evolution of staffing to the growth in the extended enterprise to the next stage of direct sourcing.

Click to listen to the full interview. Note that this excerpt has been edited for readability.

Christopher Dwyer: Let’s begin with your general insights into the staffing industry, especially given your unique vantage point with High5. When you think of the evolution of staffing and the rise and continued growth of the extended workforce, where are we today?

Kara Kaplan: For starters, the evolution of staffing and the emergence of the extended workforce has ushered in this profound transformation that we’re seeing. It’s a fundamental shift in how companies view and engage with talent. The traditional employment model has been supplemented and, in some cases, supplanted by an extended workforce. Thus, you see many organizations today, if not most, embracing the extended workforce as an integral component of their talent strategy.

And when we look at the term “employee” in general, it’s really evolving with these new models. You have everything from full-time, part-time, contract, gig, remote, hybrid, shared and other terms emerging. Those organizations that rigidly stick to the traditional relationship are going to find themselves fighting an uphill battle. Conversely, enterprises that appreciate and use a mix of workforce models will ultimately be the ones that succeed and have access to more talent and better talent.

It’s more of an adaptation to the new global economy that we now live in and all the complexities and opportunities that are part and parcel of that global shift. At the end of the day, organizations need to embrace this evolution not as an option but more as a strategic imperative. The exciting thing is that organizations are starting to do that.

CD: There is definitely a talent revolution occurring and obviously companies like High 5 fit into that. However, how do you see companies like High5 and other digital staffing platforms fitting into this change in talent acquisition?

KK: Today’s talent revolution signifies a profound shift in how organizations acquire and engage talent. We’re seeing it become much more commoditized. Talent is more dynamic and diverse, as well as more digitally connected than ever before. With the rise of talent marketplaces and digital staffing solutions, they’ve been instrumental in reshaping talent acquisition strategies and truly enabling organizations to adapt and thrive in this global landscape.

At their core, talent marketplaces democratized new access to a global pool of talent. These platforms are empowering organizations to source talent with levels of speed and accuracy that were not possible just a short time ago. For example, in the recent past, when working with many staffing agencies, there was a significant amount of manual effort required in matching a worker with a shift — even if they had a robust ATS, it would only benefit them to a degree. However, today’s digital staffing solutions driven by artificial intelligence and automation have redefined the recruitment process and streamlined nearly everything from candidate sourcing to screening to onboarding and payrolling. It saves a vast amount of time and resources.

CD: In our industry when you think about digital staffing, what comes to mind is BMS, MSP, direct sourcing, total talent, workforce management technology, and artificial intelligence. AI has moved beyond hype and is generally accepted as table stakes in our industry. What are your views on AI and its impact?

KK: To your point, we can’t have this conversation without talking about generative AI and what it means. However, the idea that AI is table stakes for competitive differentiation may be overly simplistic. While AI can undoubtedly provide a significant edge, it’s not a cure-all as companies are seeing. Enterprises still have to remain focused on their core offerings and the human aspect of talent as well as customer relationships to build a sustainable competitive advantage. It’s certainly an exciting time for AI but also a scary one as well. AI is not going away and we’ll continue to hear frequently about the technology, but going forward we need to think about AI in the right way and in the smart way.

CD: Let’s pivot to direct sourcing which was gaining momentum even before the pandemic and is now another table-stakes strategy for businesses if they want to deepen their talent pool and scale their workforce. There’s so much more to direct sourcing than simply contingent recruitment process outsourcing (RPO). With that in mind, where do you see direct sourcing heading?

KK: So much has changed in just the year since I started High5. There’s no doubt that direct sourcing has emerged as a pivotal force in recruiting and is definitely here to stay. There are sessions at major conferences dedicated to direct sourcing with brands like Northern Trust, Toyota, and Meta espousing its benefits. When that starts to happen, the more prominence direct sourcing will have. Clearly, in terms of the future of direct sourcing, the benefits are there. However, its adoption will require an education process. Anytime an education process is involved, it’s going to slow things down, particularly from a sales cycle perspective, but that process plays a vital role in ensuring that organizations realize the efficacy of direct sourcing. To be successful means ensuring that best practices are being followed. When direct sourcing initiatives fail, it’s because they didn’t follow best practices. Again, I’m extremely bullish on the future of direct sourcing, but I do think it will take some time for that education to catch up.

CD: Before we wrap up, 2023 is quickly coming to an end. What do you see on the horizon in the year ahead?

KK: I wish I had a crystal ball. For us, 2024 is about strengthening our position in the market. Being known as the “tech first” company, we’re making heavy investments in our tech enablement, our marketplace, and our other platforms. We have a great deal of excitement around some of our recent tech acquisitions and the compelling value proposition that creates for us going forward.

DE&I and Balancing Business and Human Imperatives

Business Leadership Diversity and Inclusion General Insights HR Podcast Solution Providers Talent by Christopher J. Dwyer on 09/18/2023

The Future of Work movement would not be what it is without Diversity, Equity, and Inclusion (DE&I) playing a significant part in the paradigm. A decade ago, diversity was associated more with supplier initiatives focused on Minority- and Women-Owned Businesses. The term has evolved and expanded into DE&I where the human element is now the priority.

A recent Future of Work Exchange Podcast hosted by Christopher Dwyer, managing director for FOWX, featured Rocki Howard, chief equity and impact officer for The Mom Project, who discussed the role and impact of DE&I on the Future of Work movement.

The Mom Project is a digital talent and community platform serving 1.2 million users (the majority being moms as well as over 3,000 companies from small- to medium-sized businesses to Fortune 500).

This article recaps some of that discussion. Note that this excerpt has been edited for readability.

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Voices Behind Quiet and Loud Quitters

Business Leadership General Insights HR Talent Uncategorized by John Yuva on 09/11/2023

One of the main tenets of the Future of Work is employee engagement. It sets the tone for how to motivate, influence, and inspire workers to embrace their work and the culture of the enterprise. Since 2022 when the workplace began to normalize after two tumultuous years of the pandemic, employee engagement has become a cornerstone to achieving a productive and competitive organization.

What is the result when a lack of employee engagement exists? Two employee behaviors — “quiet quitting” and “loud quitting” — become prevalent. Current workforce statistics indicate that disengagement is more prominent than management probably realizes.

Quiet Quitting Proliferates

In early 2022, a term emerged describing workers who are disengaged from the workplace and generally apply the minimal amount of work necessary to complete their job — quiet quitters. When compared to the overall workforce, quiet quitters represent the majority of workers today, with most struggling with stress and burnout.

According to Gallup’s State of the Workplace 2023 report, 52% of US/Canadian workplace employees fall within the “disengaged” (quiet quitter) category. It also represents the largest group that HR and business managers can actively engage with positive results by listening to employee concerns and issues.

What changes are quiet quitters most looking for to thrive in the workplace?

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HR Transforms into FOW Advocate

Business Leadership Contingent Workforce Diversity and Inclusion General Insights HR Procurement Talent Talent Acquisition Uncategorized by John Yuva on 06/26/2023

Human resources as a function is experiencing a transformation as the Future of Work paradigm extends into more enterprises. Previously a benefits-focused department, HR is now regarded as a strategic partner in attaining business goals and objectives. Chief human resources officers are now tasked with leading total talent management efforts across the organization, ensuring the right talent is at the right place at the right time.

Growing Priorities, Balancing Demands

The Future of Work includes many tenets from flexible works models (remote and hybrid) to work/life balance considerations to diversity, equity, and inclusion (DE&I) programs. HR must now balance those priorities, along with talent acquisition and talent management demands that align with the current and future needs of the enterprise. That’s no small feat!

With contingent labor comprising nearly 40% of the total workforce, according to Future of Work Exchange research, HR must collaborate cross-functionally to not only understand staffing needs but the skillsets behind those roles. HR has evolved where partnerships with business managers and executive leadership are essential to the future competitiveness of the enterprise. In many ways, HR is now becoming the central role for both workplace and enterprise strategy execution.

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FOWX Quotable: Leveraging the Non-Employee Workforce

Contingent Workforce Talent Talent Acquisition Uncategorized by Andrew Bartolini on 04/14/2023

The Future of Work is rapidly changing, and organizations that want to thrive must adapt to this new landscape. As companies look to compete in an increasingly complex and unpredictable business environment, the non-employee workforce is emerging as a key source of competitive advantage. The rise of the gig economy, coupled with technological advancements that enable remote work and collaboration, has made it easier than ever before to tap into a vast pool of highly skilled and flexible workers.

By effectively leveraging the non-employee workforce, organizations can gain access to specialized talent and capabilities that may not be available in-house. This can help them stay ahead of the curve in terms of innovation, as well as improve operational efficiency and reduce costs. In today’s fast-paced business environment, where speed and agility are critical, the non-employee workforce can provide the flexibility and adaptability that companies need to stay competitive.

However, in order to effectively harness the power of the non-employee workforce, organizations must have the right tools and strategies in place. This includes everything from robust talent management systems to streamlined procurement processes that enable seamless engagement with external talent. It also requires a shift in mindset, as companies must move away from traditional notions of employment and embrace new models of work that are more flexible, dynamic, and inclusive. Ultimately, those organizations that are able to successfully navigate this new landscape will be the ones that emerge as winners in the future of work.

In sum:

“Tomorrow’s business landscape will be shaped by those organizations that understand the power of leveraging the non-employee workforce as a competitive advantage. The ability to effectively tap into this vast and agile pool of talent will be the key to unlocking innovation, driving growth, and staying ahead of the curve in the ever-evolving Future of Work.”