Future of Work Predictions 2023 Archives - The Future of Work Exchange

Future of Work Predictions for 2023 (Part IV)

Business Leadership Direct Sourcing Diversity and Inclusion General Insights Technology and Innovation by Christopher J. Dwyer on 12/19/2022

Welcome to an exclusive series here at the Future of Work Exchange that will feature predictions, insights, and trends for 2023 that will shape the Future of Work in the months ahead. We polled technology and solution provider executives and asked them how they believe the world of work and talent will continue to evolve in 2023 and beyond:

Christy Forest, CEO and Executive Director, LiveHire

“It’s the greatest talent reshuffle in recent history and it isn’t over yet. Companies will respond to the fierce competition for talent alongside their looming concerns of recession with one critical capability: agility. We will see a very welcome shift…from what was a lot of talk and not a lot of action, a lot of dabbling and not enough commitment to finally creating a truly agile approach to optimize the mix of permanent and contingent workers to meet fluid business needs. This requires internal collaboration and a mindset shift but it will happen because…

We will see more and more power in the hands of candidates and employees, a higher bar set by them for transparency, inclusion and experience, and only the best companies will earn their engagement and their time. So the most progressive companies will take more ownership of their brand, start their journeys in earnest to direct sourcing programs and total workforce management solutions that enable them to meet the market where it is and move ahead of the competition.”

Pam Cohen, Chief Research and Analytics Officer, Werklabs/The Mom Project

“The Future of Work is fluid; success will depend on an intricate alliance between employers and talent that embraces life outside of work and allows for the existence of both woven into each day. From this, employers will find enhanced loyalty and retention of all types of workers, and talent will find the opportunity to grow within their jobs without feeling the need to leave in order to experience other aspects of their life.”

Nancy Miller, , Atrium

“Lines will start to blur in types of work just like lines have blurred in categories of HR tech for temporary/independent talent markets. Workers want to do work that excites them and where they can add value…they want to leave a mark. Technologies should make it easy for those workers to find this work regardless of what labor category it “places” them in, i.e., temporary worker, contractor, independent contractor, full-time employee, flexible talent, etc. Another trend I predict is that talent acquisition platforms are expanding to be more versatile regarding the labor categories they cater to. In example, platforms originally built for direct hire/perm placements will continue to productize and launch modules for contract work. Vice versa – we are seeing many platforms built for contract hiring to now also offer direct hire recruiting solutions. HR tech as a whole will move toward omni-channel solutions to engage people through all channels.”

Morten Bruun, Managing Director, North America, Worksome

“The push for a more agile workforce will drastically expand in 2023. We’re coming on the back off a large number of layoffs in the tech industry. Any technology will say a) innovation is the key for their success, and b) people are what create innovation. This leaves you in a dilemma: How can I continue to innovate in an environment where we’re reducing headcount growth? You essentially want to make sure that you have an agile workforce that you quickly can scale up and down and move to the areas where you need innovation the most.

The Great Resignation, Great Reshuffling, quiet quitting, and some of the other 2022 trends we’ve been seeing—will those stick around? I actually don’t think it matters whether they will continue or not. The interesting aspect of the Great Resignation is not that a bunch of people quit their job; the interesting aspect is why they quit their job. People are sick and tired of a traditional working model with no flexibility, that’s why they quit. It’s not unlikely that we won’t see the same volume of people quitting their job during a recession, but it’s important to realize that the sentiment isn’t gone. The sickness is still there, even though the symptoms are gone.

It’s abundantly clear that legacy tech in the workplace/people space isn’t solving the problem for companies. This is particularly true in the contingent workforce space. Around 90% of large enterprises have a VMS in place, but more than 50% of them are citing the lack of efficiency in their contingent workforce program as their #1 challenge.”

Connor Heaney, Managing Director, CXC Global EMEA

My predictions for the Future of Work are:

An increased interest in Africa as a remote talent pool to combat talent scarcity in Western economies.
As organizations seek to solve the talent supply issue, they will start to become more willing to employ and engage workers from diverse backgrounds: non-university educated, disabled, neurodiverse, veterans, and folks with minor criminal records.
Increased regulation in the Gig and Open Talent Economy as a result of the EU directive on platform workers. This has the potential to be hugely disruptive to the sector.”

Marlon Rosenzweig, CEO and Co-Founder, WorkGenius

“We expect 2023 to be a year of growth for freelance even if the economy shrinks. Demographic change and lack of immigration built up a talent shortage that will persist. “

Future of Work Predictions for 2023 (Part III)

Business Leadership General Insights by Christopher J. Dwyer on 12/15/2022

Tony Buffum, VP of HR Client Strategy, Upwork

“The idea of leveraging on-demand talent to enable faster, more efficient business outcomes isn’t new; however, in 2023, we will see many organizations shift their mindset in evolving their talent strategy to include Talent Access. Organizational leaders that think of talent as a resource that is accessed, rather than just acquired, will see the speed, flexibility and agility they need now more than ever. Access to on-demand talent with highly-specialized skills will enable them to reduce risk, drive cost savings and at the same time, protect their people from burnout.”

Vanessa Miller, Vice President, Talent Technology, Atrium

“Per Upwork’s 2022 Freelance Forward Report, freelancing has hit an all-time high, comprising of 60 million Americans. 39% of the entire workforce is freelancing, 3% up from 2021 and represents a number that continues to climb year over year since 2014 and has accelerated in recent years due to remote work being here to stay. Given independent work is becoming more and more popular, it is confirmed this population wants independence and autonomy in the work they do. Their appreciation and to talent marketplaces that bring quality work to them will grow. Technologies and service companies will, more than ever, be investing in solutions to cater to this trend in 2023, in both technology + engagement channels, i.e., EOR/AOR. I think we will see more creative ways from workforce solutions firms to partner, build, or buy platforms that have “figured out” how to make engagements seamless for independent talent. Firms that are not investing in this area will be left behind.”

“More contingent labor programs will be owned and/or influenced by talent acquisition/HR vs. solely procurement more than ever. While there may not be a complete ownership shift from procurement to HR/TA (which we’ve seen at several companies in 2022), there will be more collaboration within these departments in 2023 to work cohesively to improve/enhance the overall contract talent candidate experience. Here at Atrium we love to see this, because, in the end, the talent wins!”

Antonluigi Gozzi, Co-Founder and Chief Product Officer, LiveHire

“I wonder if we have entered a new era: post-COVID, post-globalization, mid-high inflation, high cost of capital. We had the era of the global conglomerates and multinationals (GE, IBM, etc), we had the exiting era of big tech and visionary founders (which eclipsed many of those earlier conglomerates in value creation), and I wonder if we are now in the era of rationalization and productivity growth.

Capital and human capital (labor) productivity have been in secular decline, in my view due to tech exuberance and cheap capital, we really have thrown money at the problem time and time again. We know, however, that the only sustainable improvement in living standards, innovation, and against demographic challenges, is driven by productivity, which have been in structural decline for so long. This has caused large expansion of public and private debt-to-income ratios, and is unsustainable. So, in the world of work, I think we will be all seeking healthy growth and not “growth at all costs.” Also, at a personal level, people are rebalancing priorities, so they are looking for better individual productivity: get paid more per hour so they can work less hours and be more flexible. This, however, works only if the company is also getting more value for each dollar in wages paid.

In hiring, for example, this will mean that we will be much more deliberate about human capital additions, team composition, skills, and competency gaps. I think businesses will embrace the idea of hiring slowly, having more “fit and slim” organizations, achieving more with less, and be very deliberate about culture, team composition, and specialization. I would think that the type of work arrangement (contract, freelance, employee) and work locations (on site, hybrid, remote) will matter less, as we live in a more liquid society. However, the need of specialization and team self-determination and self-management will matter more than ever, in a Future of Work that becomes ‘agile by necessity and not by choice’.”

Rocki Howard, Chief Equity and Impact Officer, The Mom Project

“DE&I is vital to the future of work, with equity being the most important driver when it comes to talent and their choice of employer. Talent is looking to receive fair and sincere treatment and transparent communication. In our recent Werklabs report we found that companies with effective DE&I program have rated: 57% higher retention, 51% recommend their organization and 39% more productive.”

Athena Karp, CEO and Founder, HiredScore

“Talent scarcity, labor market challenges, and increased business pressure will drive HR leaders to promote solutions that leverage connected-HR-capabilities that converge recruiting, people development, and workforce planning to solve the hardest workforce problems.”

“HR will leverage their seat at the strategic table to drive the organization to expand the way the business collaborates and drives workforce goals and connects with the HR functions in a proactive way, putting their organizations ahead of competitors and unlocking strategic HR capabilities.”

Taylor Ramchandani, VP of Strategy, VectorVMS

“In 2023 with unemployment extremely low and the skill gap continuing to grow, organizations are going to have to continue to be creative in how they are sourcing talent. We will see an increased adoption of talent pooling and direct sourcing technology and a greater emphasis on the candidate experience. The extended workforce will have to be proactively sourced, nurtured and provided a reason to want to engage with one organization over the next.”

Future of Work Predictions for 2023 (Part II)

Business Leadership Direct Sourcing General Insights HR Talent Technology and Innovation by Christopher J. Dwyer on 12/12/2022

Kevin Akeroyd, CEO, Magnit

“2023 will mark the year when the three largest opportunities within contingent workforce management stop being ‘discussions’ and ‘buzz words’ and start gaining real adoption and driving real value for companies. The C-suite is finally paying attention and necessary corrections are coming fast in these critical areas:

Direct Sourcing. In the current economic environment, saving $300-$400 million out of every $1 billion in staff augmentation contingent spend that goes to the disintermediary vs. to the talent or the enterprise’s bottom line is simply too much to continue to ignore.
SOW. This another area where $300-$400 million out of every $1 billion in professional services procurement contingent spend in known/acknowledged waste is simply too much to continue to ignore.
Data/Analytics. The industry spends billions on annual survey data to edify FTE salaries, which is 50% of their workforce. They spend virtually nothing to edify Contingent Labor rates, which is the other 50% of their workforce. That has to, and will, change, starting in 2023.”

Amy Doyle, and Global Leader, Talent Solutions TAPFIN

“Talent practices and strategies will need to keep better pace with increasingly rapid evolution of work. What worked to get us here is quickly losing impact. Mere execution – driven by growth of our ecosystems is not enough; organizations and solution partners alike are prioritizing the value of strategic partnerships in enabling agility and collaborative innovation.”

Kevin Poll, SVP of Strategy and Business Development, WorkLLama

“I think a big trend for 2023 will center around how companies are branding themselves to all talent and delivering similar experiences to candidates, regardless of how a person engages with the company (full-time, SOW, contractor, freelancer). As companies move towards an omni-channel talent acquisition strategy, a consistent candidate experience is critical. Not only does it increase engagement and referrals, but a positive candidate experience can also turn even rejected candidates into brand ambassadors, increasing the quality of future candidates and lowering cost-to-acquire. Without a total talent approach to finding, attracting, and nurturing candidates, companies lack a holistic talent strategy, which can hurt their bottom line.”

Sunil Bagai, CEO, Prosperix

“2023 will be about volatility as some companies downsize and others ramp up. Amidst this chaos, businesses will be seeking to increase workforce productivity in lieu of financial constraints, improve visibility and insights into their entire workforce, and find a balance between local, remote and offshore teams.

A few tenets will remain strong in 2023, including the intentionality of remote work so it is flexible and meets the social and performance needs of the business. Additionally, the pursuit of meaningful work will be more prevalent as bad managers, lack of business transparency and poor culture drive individuals into new work environments that are more aligned and enriching.”

Jessica “JJ” Reeder,

“Productivity is passé. As the world faces a global crisis in employee engagement (Gallup reports only 20% of workers are engaged) and as many companies tighten their budgets, the question to ask is not “How much are we producing?” but “Are we producing the most effective outcomes?”

Organizations with people-first organizational cultures are attracting the world’s best talent by promising healthier work-life integration, flexible schedules, and an investment in professional development. What that translates to is employees exerting a greater sense of control over when, how, and where they work, but with a higher quality of output and higher probability of long-term retention.

In 2023, companies that want the best people doing their best work will understand the importance of planning, goal-setting, and focus on shared objectives. Rather than overworking people to the point of burnout, we’ll see more great leaders steering their teams toward a vision, and empowering them to reach it.”

Steve Dern, EVP of Talent Solutions, Evaluent

“Direct sourcing will include not only technology implementation, but the strategic inclusion of diversity EOR/AOR suppliers who can provide curation services, allowing traditional talent acquisition teams to focus on the internal hires that remain mission critical. As direct sourcing yields benefits to evergreen hiring needs, these solutions will expand their reach across the enterprise. A key component of this success will rely on the proactive marketing of the brand and culture of the organization, positioning itself as a destination of choice for both potential employees and contingent workers alike.”

Future of Work Predictions for 2023 (Part I)

Business Leadership General Insights Talent Technology and Innovation by Christopher J. Dwyer on 12/08/2022

Brian Hoffmeyer, SVP of Market Strategies, Beeline

“The extended workforce industry has spent years talking about total talent management. In 2023, due to new technologies and service offerings, we will see more and more enterprises truly implement it, capturing all of their workforces in one place and using that data to make better tactical and strategic decisions.”

Brian Salkowski, COO, Guidant Global

“Throughout 2023 we expect a slower pace of growth across the workforce solutions industry and the US jobs market will become increasingly uncertain as the year progresses. Many organizations are concerned about what lies ahead for the next 12 months and the possible impact on business growth, profitability and shape. Customers are therefore likely to focus on cost-saving and value-driving measures, for example, supply chain consolidation, increased focus on internal skills mapping, upskilling and mobility, and the expansion of MSP remits to include uncontrolled and costly services procurement spend. There will be greater scrutiny on how work gets done and by whom, to optimize business innovation, productivity and fulfillment. Finally employers will continue to dial up their focus on driving social value through DE&I and ESG measures. The most successful organizations are likely to be those that think differently and act boldly.”

Sean Ring, VP of On-Demand Talent Solutions, People 2.0

“2023 will be the tipping point for Enterprise adoption for both Direct Sourcing Technology/Programs as well as Global Freelance Marketplaces. This will be driven by the need to find cost savings in a period of economic contraction in tandem with the desire to find high quality talent that can be deployed in agile/flexible/On-Demand models which reduce fixed costs generally associated with acquiring and retaining full-time employees.”

Darren Topping, Director of Solutions and Insight, Lorien

“It has been an interesting couple of years from a people and hiring perspective to say the least, and now all eyes turn to what 2023 has in store. Could we see a genuine great resignation? As the cost-of-living crisis in the UK pushes workers to look for higher salaries and with organizations not having the means to meet them, could we finally see record-breaking numbers of movement? Or, as an alternative view, could the slowdown of hiring and potential redundancies cause candidates to decide to stick in their current position and ride things out until the economy recovers?

As our thoughts turn to 2023, one prediction from me is that demand for technology talent will remain high, and will still outstrip the availability of candidates in the market. Organizations will need to continue to focus on both a compelling Employee and Contractor Value Proposition to appeal to the broader market, as well as continuing to invest in environmental objectives as part of an overall CSR strategy if they are to be successful in growing and maintaining their tech teams. Discussions around hybrid working haven’t gone away, and I also expect to see further clashes in 2023 between organizations attempting to adopt a full-time office position and those candidates who have been comfortable in a mostly remote culture.”

Stay tuned for the next edition of this insightful series!