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Hybrid Work

What’s The Deal With Virtual Layoffs?

Try not to read that title aloud in a Jerry Seinfeld voice.

There’s no denying that recessionary fears are resulting in sometimes necessary cost-cutting strategies for businesses across the globe. And there’s no way around budgetary concerns when the economy is still at an unsettled point only three-and-a-half months into 2023. Layoffs are an unfortunate attribute of the corporate arena, in which headcount is reduced in mass quantities as a result of poor performance, market conditions (like we’re experiencing today), a global health crisis (hello, pandemic), and a slew of other reasons.

The world’s biggest and most popular fast-food chain will always weather whatever storm they face, but even McDonald’s has limitations on how they can operate in an uncertain economic climate. Alongside global organizations like Amazon, Goldman Sachs, Meta, Google, etc., the golden arches now faces their turn in the “let’s reduce headcount to save dough” game that so many other enterprises have faced over the past several months.

While layoffs can be heartbreaking and disruptive, they are a cost of business. No one would fault McDonald’s or any other large global entity for slashing their workforce in 2023’s rocky economic road. However, there’s a very, very fine line between a layoff and cruelty…a line that McDonald’s crossed just this past week.

We’re not lovin’ this. At all.

As stated above, yeah, layoffs sometimes need to occur for a business to move forward. Especially in the world we’re living in today. Although costs need to be front-and-center, there’s a right way to conduct layoffs and a completely, erratically wrong way to do so. Guess which way McDonald’s chose?

As reported by The Wall Street Journal:

“In an internal email last week, McDonald’s told U.S. employees and some international staff that they should work from home from Monday through Wednesday so the company could deliver staffing decisions virtually. McDonald’s asked employees to cancel all in-person meetings with vendors and other outside parties at its headquarters.”

McDonald’s U.S. employees were told to work from home for three days and await word on whether or not they would be laid off. Imagine working on a critical project for the fast-food giant; a worker now has the normal, everyday stress of their position while also anxiously anticipating word on whether that position would be cut.

Would anyone be surprised to take a peek at the productivity numbers for those three workdays and notice something off? Ardent Partners and Future of Work Exchange research has found that nearly 75% of businesses are currently experiencing workplace culture issues due to worker anxiety related to economic conditions. And this sentiment was in place before the McDonald’s anti-Future of Work, apathetic display earlier this month. Asking employees to work from home and await a catastrophic decision acutely contributes to this anxiety.

On top of all of this, McDonald’s rolled out sweeping cost-cutting measures (even as the company continues to herald new store openings across the world) such “allowing” employees to keep their jobs with reduced compensation and less bonuses and equity awards. Part of this restructuring also included changes of titles across the organization.

The bottom-line for all of this is all too clear: virtual layoffs, for some organizations, may be a necessity given available resources, however, this is still an area that flies in the face of our Future of Work movement…especially in an age when the candidate experience and the worker experience are supposed to be paramount.

Some may feel that organizations have no choice to deliver layoff news virtually because it’s part of the way we work today, maybe considered a dark side to the remote work boom. Others believe that life-changing news, particularly layoffs, should happen in-person as part of face-to-face meetings.

What’s missing in all of this is the human factor, that sense of empathy and emotional understanding that was such a positive outcome from working under pandemic conditions. Employees will have questions about severance, equipment, and other aspects of their roles; at their core, layoffs are very, very personal conversations that should not occur in a mass environment, let alone virtually.

McDonald’s will unfortunately join fellow corporate giants such as PepsiCo, Twitter, and Google as household brands that drew ire from the world of work for their emotionally-absent layoff methods. Layoffs are a woeful but necessary piece of business today and always, however, they are made much worse when the human factor is completely erased from the process.

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The Power of Digital Workspaces in 2023

Digital workspaces are increasingly becoming powerful additions to the realm of remote and hybrid work. In the simplest of terms, these digital spaces allow employees to work remotely or from anywhere with an internet connection, rather than being tied to a specific physical location.

In recent years, the adoption of digital workspaces has been accelerated by the COVID-19 pandemic, which has forced many companies to adopt remote work policies. However, even before the pandemic, the trend towards digital workspaces was already on the rise, driven by factors such as the increasing availability of advanced communication and collaboration technologies, the rising costs of real estate, and the desire for greater flexibility and work-life balance.

Ardent Partners and Future of Work Exchange research in 2023 finds that nearly 80% of businesses across the globe experienced a greater number of remote and hybrid workers in 2022, a stat that represents something deeper about this type of work model: it’s now permanent, no matter how many executives believe they can ignore the spectrum of flexibility that has become synonymous with post-pandemic working.

The adoption of digital workspaces has not been without its challenges, however. One of the biggest challenges has been the need to adapt to new technologies and ways of working, especially as many executive leaders continue to push for return-to-office initiatives. For many workers, the transition to remote work has required a significant learning curve, as they have had to figure out how to stay connected and collaborate with their colleagues without the benefit of face-to-face interactions.

Another challenge has been the need to balance the demands of work with the demands of home life, as many people have had to set up makeshift offices in their homes. This can be especially difficult for those with children or other family responsibilities, who may struggle to find the time and space to focus on their work. Thus, the elements of work-life integration will continue to be a critical issue for enterprises that enable a flexible working environment for their talent.

Despite these issues, there are many benefits to digital workspaces. One of the most obvious advantages is the ability to work from anywhere, which can be especially appealing to people who live in high-cost cities like New York, Chicago, Boston, etc. Digital workspaces also offer greater flexibility and autonomy, as employees are not tied to a specific schedule or location. This can lead to increased productivity and job satisfaction (two factors that play vital roles in talent retention efforts), as employees are able to customize their work environments to fit their needs and preferences.

And, with innovation at play, digital workspaces can offer so much more than a flexible, automated, and collaborative environment for remote and hybrid employees. As seen with Vista Equity Partners and Evergreen Coast Capital’s acquisition of digital workspace leader Citrix last year, the convergence of virtual desktop technology and advanced, real-time intelligence (as well as other forms of automation) can provide business users with an additional layer of value. The Citrix deal proved that (with TIBCO (a Vista portfolio company)), digital workspaces can be seamlessly integrated with various applications and data across the enterprise technology infrastructure of the contemporary enterprise…meaning that businesses have the ability to shift a true office environment onto a remote infrastructure without losing control over intellectual property and data whilst giving flexible workers the same strength of access to enterprise systems that they would have in the office.

Overall, it is clear that digital workspaces are here to stay. As more and more companies adopt remote work policies, it is important for employees and employers to find ways to adapt to this new way of working. This may require a rethinking of traditional work practices and the use of new technologies, but the benefits of digital workspaces – including greater flexibility, cost savings, and, with a push from next generation automation, frictionless integration of applications and intelligence – prove that their power is critical for success in 2023.

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An Ode to the Future of Work

The Future of Work is a topic that has been discussed for by Ardent Partners for many years, particularly with technology rapidly evolving and transforming industries. Today, we offer a poem that takes a creative and fun approach to imagining what the future of how we work might look like.

With rhyming couplets and vivid imagery, we’ve tried to paint a picture of a world where AI machines take on mundane tasks, leaving more time for worker creativity and exploration. The idea of virtual offices and collaboration without borders adds a sense of excitement and wonder to the future of work as we envision a world where the limitations of physical space and language barriers no longer exist. Ultimately, the poem encourages us to embrace the future with open arms, as it holds endless possibilities for growth and innovation.

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Remote Work, Flexibility, and Trust

Stop me if you’ve heard this idea before: a grizzled executive decides that remote work was just a fad and it’s time for all workers to return to the office. He or she believes that the pandemic was an anomaly and any changes associated with corporate operations because the crisis was meant to stay within the confines of this short, confusing, and challenging era.

These are the CEOs and executive leaders that made news throughout 2021 and 2022 by saying, collectively, “It’s time to go back (to the office).” These are the leaders, many of whom control very large and household brands, that still believe that most, if not all, necessary collaboration between workers must happen within the physical presence of an office.

It seems that James Gorman, CEO of financial giant Morgan Stanley, fits squarely into this bucket. “They don’t get to choose their compensation, they don’t get to choose their promotion, they don’t get to choose to stay home five days a week,” he said in an interview with Bloomberg while in Davos. “I want them with other employees at least three or four days.”

More from the Fortune article:

The investment bank CEO has been vocal about wanting his employees back in the office since the summer of 2021, when he said at a conference that it was time bank employees in New York made it back to the office. He also said he would be “very disappointed” if employees didn’t return in person by September of that year. 

Then came the Omicron variant, throwing many companies’ well-laid plans out of balance. It forced many banks to adopt a softer stance on when they wanted employees to come back to working in person, especially in their New York offices, including Morgan Stanley. “I thought we would be out of it by Labor Day, past Labor Day. We’re not,” Gorman told CNBC in an interview in December 2021.

Gorman has continued to push this year for employees to start returning back to the office. During an event in March 2022, he noted that many people had adopted a mindset of “Jobland” where employees just showed up to work to do the job, versus “Careerland,” in which employees learned and developed skills from in-person interactions.

Enbridge’s Eric Osterhout, the company’s Senior Specialist, Category Management – Contingent Labor, put it perfectly on LinkedIn recently, saying, “Workers can decide to work remotely and can certainly choose their compensation. They can leave you and go to other organizations that do not have archaic thinking such as you demonstrate with your statement. Like it or not, the world has been forever changed and workers will leave go to companies that embrace flexibility and recognize that being a destination of choice for workers translates to competitive advantage in the war for top talent.”

It’s not fair, however, to peg Gorman as just an old-fashioned leader who wishes remote work would fade away (Gorman even admitted that we’ll never go back to five days in the office). There is much truth in the notion that more and more workers will be heading back to the office in 2023, especially as the emergency phase of the COVID-19 pandemic is in the rear view. There is nothing inherently wrong or unmoral, as an executive, to want the workforce to spend more time at the office. It’s the attitude that Gorman portrays that signals the same old problem that existed before the pandemic: a lack of trust and faith in the concept of flexibility and its link to the ultimate respect for workers.

Ardent Partners and Future of Work Exchange research finds that 82% of businesses leveraged more remote and hybrid work models in 2022 than in 2021, a powerful stat that also takes into account that the past year brought less pandemic-fueled disruptions (as well as powerful antiviral and an updated vaccine). This proves that flexibility is now an inherent attribute of the modern enterprise.

More and more workers will return to the office in 2023, regardless of the “normalcy” that we’ve recaptured. However, this does not mean that workers should trudge back to hours-long commutes, wasted time in meetings, and missing out on crucial family time as a result.

The question of productivity over the past three years has been answered. Both business leaders and workers alike understand that remote and distributed teams can drive value no matter where the work is taking place. And, to boot, the added sheen of flexibility means that workers are also happier with malleable arrangements, something that Gorman seems to be missing. It doesn’t matter if a leader allows its workforce to work two days a week from home or four; if the appreciation, empathy, or trust isn’t there, talent retainment won’t be, either.

Remote work is linked to flexibility, which is inherently linked to the trust in the workforce. It’s a lesson that we’ve learned time and time again over the past few years. Talent is what separates one organization from another; without access to top-tier skills and expertise, businesses cannot thrive in these dynamic times. If the modern enterprise wants to retain talent and become a destination of choice, aspects like remote work, flexibility, and, critically, trust, be embraced.

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Workplace Optimization Through Hybrid Work Models

Many employees have now settled into their remote and hybrid work structures as enterprises adopt a more flexible workplace. However, the Future of Work is about work optimization, and there are several hybrid work models to offer employees. Depending on the organization, its workforce makeup, and the nature of the roles, various hybrid models can benefit different scenarios.

What enterprises can’t lose sight of is the Future of Work progress over the previous three years. Much has been gleaned from an enterprise and employee perspective about what drives productivity, wellness, and retention. Unfortunately, some enterprises are reverting to full or near-full in-person guidelines. Disney CEO Bob Iger is the latest high-profile executive to require workers to return to the office four days per week, citing more effective collaboration and creative output.

However, some organizations are shifting their stance for other reasons.

The Gray Area of Hybrid Work

Enterprises place trust in their employees that when working away from the office, they’re focused on projects and available to their team members and managers. It is not much to ask when given the privilege to achieve work/life balance and mental well-being. However, there are several reported incidents where workers have abused the benefit of hybrid work.

Even during the first two years of the pandemic, employees were being terminated for working more than one full-time job. With less oversight and employees scattered around the world, some couldn’t resist the opportunity to increase their income at the expense of their employers. There are few details offered about how these schemes came to light, but it’s likely the virtual water cooler played a role.

There is also the story of a woman who worked remotely four days per week, with a mandatory Monday in-person check-in. While appearing every Monday for on-site collaborative meetings and face-to-face dialogue, she took pride in the ability to jet off one week per month to places unknown. During that week, she made an appearance on Monday before catching her flight that evening to a new destination. While work was on the agenda, it was also a mini vacation to make the most of her week abroad. Apparently, there were no sudden requests to appear in the office beyond the mandatory Monday, nor communication issues with her employer.

It’s fair to say (and I hope so) that these examples are few and far between. They do not represent typical remote and hybrid employees.

Optimize Your Hybrid Work Model

This brings us back to the work optimization issue, however. When considering or evaluating the effectiveness of a hybrid work model, there are a few things to consider. Steve Todd, AVP, Global Head of Workplace for Nasdaq, provides insights into various hybrid model options — all with the goal of maintaining workflow and scheduling consistency.

At-will hybrid model. This model could be the most flexible for employees because it empowers them and puts trust in their decision-making. Essentially, workers decide when they want to come into the office. Depending on their preferences, some employees may work on-site when all-staff or team meetings are held. Others may commit to one or two days per week to maintain face-to-face interaction.

This model assumes that a physical office exists, and that appropriate space is available for most employees. Organizations could risk space issues for days when nearly all employees are on-site. Overall, however, the at-will model caters to the employee and what schedule works best for the individual. It emphasizes building morale and enhancing productivity.

Office-first hybrid model. Todd says that like the at-will model, the office-first approach places much of the on-site scheduling on the employee, but with requirements to work in-person a certain number of days per week.

Todd writes, “The office-first model works best for organizations whose productivity is dependent on collaboration. It allows teams to get their jobs done while also allowing some room for flexibility and individual work.”

This model becomes problematic for employees that live far away from the office. Commuting to work once or twice per week affects productivity. And any organization where collaboration is critical will not benefit from an office-first model — or a hybrid model in general.

Split-week hybrid model. This hybrid approach offers room for experimentation depending on the outcome. An enterprise assigns teams to work on-site for half the week. Often, it is teams that routinely collaborate that are assigned the same on-site/remote schedule. Todd says two major benefits of this hybrid model are team dynamics and effective face-to-face meetings. Teams can discuss project milestones and challenges in person, then work on the finer individual details remotely.

However, a major drawback to the split week is a lack of inter-team collaboration. If a team outside the core group is needed for a project, there is a scheduling misalignment. One of the outcomes of the pandemic is the increase in cross-functional collaboration. Teams that did not frequently interact contributed to virtual meetings for informational and strategic purposes and to increase transparency.

There is room for experimentation with the split-week model. Team dynamics or a project focus may shift requiring an adjustment in scheduling. Seek feedback from employees about the effectiveness of their schedules and areas for improvement.

Week-to-week hybrid model. Organizations considering downsizing to a smaller office could benefit from a week-to-week hybrid approach.  According to Todd, “This type of hybrid work model is most advantageous for companies with a large number of employees. With this setup, you can drastically reduce the office space necessary for your operations and cut down on overhead costs.”

Conversely, a smaller space to accommodate fewer people can be problematic for large-scale in-person events or meetings. The overhead cost savings are attractive but be cautious of staffing constraints it can impose.

Hybrid work models are evolving as enterprises increase their flexibility and focus on work optimization rather than antiquated staffing protocols. Involving employees in the organization’s work model decision-making promotes morale and trust. The Future of Work is about options and experimentation for the betterment of the workforce.

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The Power of Digital Workspaces in 2023

Digital workspaces are increasingly becoming powerful additions to the realm of remote and hybrid work. In the simplest of terms, these digital spaces allow employees to work remotely or from anywhere with an internet connection, rather than being tied to a specific physical location.

In recent years, the adoption of digital workspaces has been accelerated by the COVID-19 pandemic, which has forced many companies to adopt remote work policies. However, even before the pandemic, the trend towards digital workspaces was already on the rise, driven by factors such as the increasing availability of advanced communication and collaboration technologies, the rising costs of real estate, and the desire for greater flexibility and work-life balance.

Ardent Partners and Future of Work Exchange research in 2023 finds that nearly 80% of businesses across the globe experienced a greater number of remote and hybrid workers in 2022, a stat that represents something deeper about this type of work model: it’s now permanent, no matter how many executives believe they can ignore the spectrum of flexibility that has become synonymous with post-pandemic working.

The adoption of digital workspaces has not been without its challenges, however. One of the biggest challenges has been the need to adapt to new technologies and ways of working, especially as many executive leaders continue to push for return-to-office initiatives. For many workers, the transition to remote work has required a significant learning curve, as they have had to figure out how to stay connected and collaborate with their colleagues without the benefit of face-to-face interactions.

Another challenge has been the need to balance the demands of work with the demands of home life, as many people have had to set up makeshift offices in their homes. This can be especially difficult for those with children or other family responsibilities, who may struggle to find the time and space to focus on their work. Thus, the elements of work-life integration will continue to be a critical issue for enterprises that enable a flexible working environment for their talent.

Despite these issues, there are many benefits to digital workspaces. One of the most obvious advantages is the ability to work from anywhere, which can be especially appealing to people who live in high-cost cities like New York, Chicago, Boston, etc. Digital workspaces also offer greater flexibility and autonomy, as employees are not tied to a specific schedule or location. This can lead to increased productivity and job satisfaction (two factors that play vital roles in talent retention efforts), as employees are able to customize their work environments to fit their needs and preferences.

And, with innovation at play, digital workspaces can offer so much more than a flexible, automated, and collaborative environment for remote and hybrid employees. As seen with Vista Equity Partners and Evergreen Coast Capital’s acquisition of digital workspace leader Citrix last year, the convergence of virtual desktop technology and advanced, real-time intelligence (as well as other forms of automation) can provide business users with an additional layer of value. The Citrix deal proved that (with TIBCO (a Vista portfolio company)), digital workspaces can be seamlessly integrated with various applications and data across the enterprise technology infrastructure of the contemporary enterprise…meaning that businesses have the ability to shift a true office environment onto a remote infrastructure without losing control over intellectual property and data whilst giving flexible workers the same strength of access to enterprise systems that they would have in the office.

Overall, it is clear that digital workspaces are here to stay. As more and more companies adopt remote work policies, it is important for employees and employers to find ways to adapt to this new way of working. This may require a rethinking of traditional work practices and the use of new technologies, but the benefits of digital workspaces – including greater flexibility, cost savings, and, with a push from next generation automation, frictionless integration of applications and intelligence – prove that their power is critical for success in 2023.

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Welcome to the Future of Work in 2023

Happy New Year!

At the behest of our rock star analyst, Christopher Dwyer (also our SVP of Research), Ardent Partners launched this site in the summer of 2021 to help HR, talent acquisition, procurement, IT, and finance executives understand the critical convergence of talent and innovation and the impact that the extended workforce has had and will have on business operations and bottom-line performance. I would argue that as we kick off the new year, nothing is more important to a business than understanding the Future of Work in 2023 and having the right strategies, tools, and approaches to manage it well.

The Future of Work in 2023 already looks very different from just a few years ago, driven by a few large trends that are discussed below.

AUTOMATION

One of the biggest drivers of change in the Future of Work is automation and the tools used to perform tasks that were previously done by humans. This can include everything from manufacturing and assembly line work to data entry and customer service. As automation is adopted and becomes more prevalent within the enterprise, efficiencies and perhaps more importantly, effectiveness, increase as staffers can spend more time on deeper strategic elements of their work.

With today’s growing extended workforce, enterprises need flexibility and scalability. Automation can bridge the various data points related to recruitment, onboarding, and payroll, allowing HR to focus on strategic workforce development and management planning. Through direct sourcing initiatives and automation, an enterprise can flex its extended workforce requirements quickly and efficiently, providing the necessary support before ramping down.

AI

Another significant trend in the Future of Work is the increasing use of artificial intelligence (AI). AI refers to the development of computer systems that can perform tasks that normally require human intelligence, such as learning, problem-solving, and decision-making. AI is already being used in a variety of industries, including healthcare, finance, and retail. We are in the early stages of an AI revolution, but this technology is almost certainly going to play an even larger role in the way we work, potentially leading to the creation of new job roles and a better understanding of how to staff the most successful teams and projects.

Of all the technologies available to enterprises that help automate key workforce processes, AI is the pure representation of the Future of Work. However, there are different shades of artificial intelligence helping organizations optimize the way they get work done and how they think about talent. It’s more than having an artificial persona to help figure things out and make decisions — instead, it’s enabling smarter decisions.

If bias can be removed from decision-making and technology, and AI is set up in such a way that there is no unconscious bias, then it is possible to understand how diverse the workforce truly is. The Future of Work Exchange has long said (including many years ago) that a diverse workforce is the deepest workforce. Being able to bring in different voices from different cultures allows businesses to be more innovative and think outside the box. And AI is a perfect conduit for that.

THE HYBRID WORKFORCE

In addition to automation and AI, the Future of Work is also likely to be influenced by the increasing popularity of remote work and flexible scheduling. With the advancement of communication technologies such as video conferencing and project management software, it is becoming easier for employees to work from anywhere in the world. This trend is being driven by a variety of factors, including the desire for work-life balance, the need for companies to access a global talent pool, and the cost savings associated with remote work.

Progressive companies realize the importance of hybrid work options for employees. While compensation remains a major factor when accepting a job offer, it is benefits such as hybrid work that are attracting more job candidates. Hybrid work models are also contributing to healthy employee well-being and mental health — both of which can have a significant impact on the bottom line. A hybrid workforce makes healthy sense to workers and fiscal sense to the enterprise.

SUMMARY

As technology continues to advance at an unprecedented pace, Ardent Partners expects to see significant changes to the way we will work in the coming years. Whether it is through upskilling and retraining or embracing new technologies, the key to success in the Future of Work will be adaptability and a willingness to embrace change — namely automation, artificial intelligence, remote work, and flexible scheduling.

And, as the Future of Work continues to evolve, it is important for both individuals and companies to stay abreast of these trends and to be proactive in preparing for the changes that are likely to come. That’s where THE FUTURE OF WORK EXCHANGE site comes into the picture — if you haven’t already, bookmark this site and make it a regular stop as you pursue your workforce goals and objectives in 2023 and drive to become a Best-in-Class operation.

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The Many Extensions of the Future of Work

The Future of Work Exchange podcast features coverage of industry news, software developments, Future of Work happenings, and, most importantly, conversations with industry thought leaders.

The Season Seven premiere of the Future of Work Exchange Podcast, sponsored by Beeline, featured in-depth, Future of Work-oriented discussion with Jen Torney, VP of Client Engagement at Talent Solutions TAPFIN, and Brian Hoffmeyer, SVP of Market Strategies at Beeline (click to listen to the full interview).

Today’s article recaps a piece of the podcast discussion focused on several key Future of Work-focused topics. [Note that this excerpt has been edited for readability.]

Christopher Dwyer: We’re going to close things out with what I call the “Future of Work lighting round.” Let’s start with remote work.

Brian Hoffmeyer: Remote work is here to stay. We’re talking to our clients considerably about it and doing several workshops with them about the best way to handle it from a contingent workforce perspective. Because it’s not as easy as saying, “I want to hire from low-cost areas.” What does that really mean? What are the tax implications of doing that? There’s a different tax rate and a lot of complexity behind the scenes to work out. I’m still seeing companies make pretty arbitrary decisions about remote work, saying you have to come in on Tuesdays and Thursdays — when that doesn’t make sense. Companies need to be very purposeful in making these decisions as they go through the process.

Jen Torney: Yes to all of that. I would say this is so much bigger of a conversation than whether or not you’re going back into the office. We’re encouraging organizations to really look at their true workforce plan and strategy. Because this changes everything. It changes how you can hire, where you can hire, and at what cost. It becomes a much bigger holistic conversation around the opportunity to completely rebuild organizations. There is a lot of hybrid work, but it’s very arbitrary in approach. Now that I’ve been back to traveling at a pre-pandemic level, in-person makes a difference. It really does. But I’m not sure that clocking in at eight and leaving at five to fight traffic and get home is really going to be a part of our culture anymore — except when there’s a requirement. There are several smart ways to get work done, and that eight-to-five model doesn’t need to be the model to do that.

CD: Up next: direct sourcing.

JT: Direct sourcing is smart sourcing. We think direct sourcing is blowing up. It is definitely a new layer of workforce strategy. I don’t think this is going to replace traditional staffing, but it has its place in niche areas within our workforce. I’m certainly excited to see how this proliferates in the organizations that we’re working with. The smart sourcing aspect of layering and upskilling is going to be the future.

BH: Just do it. Just do it. I think too many companies are taking too long and overcomplicating things. Pick an area, pick a geography, pick a skillset, and get the right providers together and start somewhere.

CD: Off to the next one: purposeful work.

BH: I love this. We’re in this position in our industry to help people find meaningful employment and to get them the skills they need to improve their lives. That’s the ultimate purpose that I see in what we’re doing. I want to continue to see companies not treat contractors as less than and make them part of the workforce. Yes, there are rules you have to follow, but include them in D&I initiatives and company events.

JT: One of the things we’ve realized as a global society over the course of the pandemic is that it’s critical to be part of something, to feel that you are contributing value, and to be able to show up as your best self. Purposeful work is so important to the younger generations, especially those coming up into the workforce. So, figuring out ways as employers to build that into your culture so that you’re creating an environment for the future leaders to feel it is the right place for them from an employment experience.

CD: Let’s roll into conscious leadership.

JT: Yes, it kind of dovetails. All this focus on D&I has been so amazing because of the evolution of how we’re approaching these conversations around belonging and inclusion and truly showing up as your whole self. It allows for more creative outputs, better collaboration with your team members, and better energy all around. But again, we are shifting and changing how we approach non-employee labor.

I was just with a client last week talking with its DE&I team. Throughout its history, it was focused on the FTE. But going forward, they’re really trying to move the needle on the entire culture of inclusiveness within their organization. The client has 40% contingent labor, and we’re trying to figure out ways to untangle the risk associated with supporting those goals within their contingent labor population, which is unfortunate that we must think that way. However, I think we are breaking down barriers every day in this industry trying to get to a place where we can truly forward the momentum of DE&I for contingent labor, and truly inclusive and conscious leadership for organizations at that stage.

BH: Jen mentioned letting people be their true selves at work and I think that’s incredibly important. Because that’s going to make them feel included and allow them to bring up ideas that give them the space to fail. As leaders, we must do the same thing — show our own vulnerabilities and give people that space. The blending of work and life is going to continue to happen. And that to me is a good thing. Because you don’t want people to be fake, you want them to be who they truly are. While it seems obvious, the world didn’t use to be that way. The more those separate work and home personalities go away, the better.

CD: Crystal ball for the second half of the year into 2023?

BH: With respect to our industry, you’re going to continue to see an emphasis on the worker themselves and giving the worker good experiences because so many people want to work in this way. You know, permanent employment isn’t really a thing. Even if you take a so-called “permanent job,” your tenure is 18 months on average…or even less now. We’re focused on several things around that to make sure the worker can continue to advance their career in the ways they want to. You’re going to see a lot more of that.

JT: With obvious recession concerns, we’re going to continue to see organizations be more cautious. It’s about hiring and making very intentional decisions to get in front of that. There will probably be a curb in the aggressive hiring that we’ve been seeing over the course of this year. And then absolute radical growth in our travel MSP clients. Travel is returning to pre-pandemic levels and certainly out pacing their expectations. There will be some growth there despite the recessionary concerns.

A recession is an economic trend and part of the cycle. It’s going to happen, it’s just a matter of when. This recessionary period will be a bit more interesting for our business because there will be some contraction but also some expansion in certain categories as well.

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Can We Measure Empathy at Work?

As part of the Future of Work Exchange (FOWX), we host a regular podcast featuring coverage of industry news, software developments, Future of Work happenings, and, most importantly, conversations with industry thought leaders. Recently, our own Christopher J. Dwyer, architect of the Exchange and host of the Future of Work Exchange Podcast, had the tables turned on him: Afterhours, sponsored by Utmost and hosted by Neha Goel, the company’s vice president of marketing, featured Christopher as part of its Contingent Workforce Radio series.

Neha and Christopher discussed a variety of issues related to the state of talent and the future of work (click to listen to the full interview). This is an excerpt from that conversation. (Note that this excerpt has been edited for readability.)

Neha Goel: As we explore the human element in the workplace, let’s talk about another tenant of the Future of Work — empathetic leadership. Is this something you are seeing put into action? And can empathetic leadership be measured in a meaningful way?

Christopher J. Dwyer: Yes and no. I feel like there is an appointed effort. There is a very focused effort for leaders to be more deliberate in leading with empathy and leveraging conscious leadership tactics. But, I do not think many organizations have a handle on how to measure it.

That is where we need to go as business leaders. It is tough to measure something like that, however, because it is so qualitative. How do we know that we are doing the right things as leaders? Or how do we know that we are leading in the right way? How do we know that our employees are having a positive experience and that they feel safe and comfortable? Do they feel that they are part of an inclusive culture?

It circles back to the question of how to measure those things. NPS scores are not going to help. Informal surveys may give you some type of picture. This is the next big leadership challenge going into the second half of the year and into 2023. It can be difficult measuring not just empathy, but how cognizant you are of your leadership and its impact.

It is encouraging to see that more leaders are very conscious of their styles of leadership. But you still see many leaders who are not flexible and still rigid — the Elon Musk-type celebrity CEO who does not care about flexibility or employee feelings, and insists we need you in the office and you need to be part of the team. (Editor’s note: check out yesterday’s article on Malcolm Gladwell’s horrible take on remote work.)

We are so far past that. I have been saying for over two years that there is no way you can put a positive spin on a worldwide pandemic that has killed so many people. It has disrupted life so much. But if you were to take the positives of the fallout from the pandemic, there are many accelerants from the Future of Work angle that came to light.

You have remote work, the reliance on automation and tech, and the desire to be more data-led to gain a better understanding of where we are going as a business and how we are going to survive. But there is the other piece where leaders need to realize that they need to change their leadership style or risk losing workers.

“I am going to lose the talent that exists in my business, and I do not want that to happen.” I do see leaders doing it, but measuring it continues to be a challenge. I do not think many organizations have that figured out yet.

NG: That is fair. It would be fascinating to have you back in a few months and see potential progress.

CJD: Absolutely. I look at some of the most read articles on the Future of Work Exchange since we launched, and one of the top three articles is a piece on why empathy is the only way forward.

A reason it is one of the most popular pieces is that business leaders are interested in trying to hone their style to be more flexible, more empathetic, and more conscious in thinking about their workforce and their staff.

I remember the early days of the pandemic quite clearly. Memories of COVID-19 close contacts and quarantining, 14-day isolations, and kids unable to go to school. Neha, you have young kids, as I do. How disruptive was it to have kids at home for weeks and months at a time? And remote learning was not exactly a conducive way to learn for them (even though it’s a great way to work, haha).

Truly conscious leaders understood how difficult that was for their staff. And they were the ones who were offering flexible options or realizing that, “Hey, this person needs to sit with his or her daughter as she does second grade remotely. Yes, he or she is going to be offline for a couple of hours, but will be back in the afternoon.”

It is leaders who truly step into their workforce’s shoes and acknowledge what everyone is going through and recognizes the need to support them through this. Those are the leaders who are realizing their workforce is happier. They are more engaged. They know that we are here to support them.

I would love to come back in four or five months and say we have a couple of real-life cases we can share of how a business was able to measure its effectiveness. Did our profits go up? Did we have less turnover? I think those could be some of the early metrics to use.

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Malcolm Gladwell and the Very Bad Remote Work Take

Quick question for you: if you’re working on something critical for organization from your home office, do you think it matters if you’re wearing pajamas or loungewear rather than traditional office attire?

Well, of course not. But Malcolm Gladwell does. Here’s some of his commentary on the Diary of a CEO podcast (and as transcribed by The New York Post):

“It’s not in your best interest to work at home,” he said. “I know it’s a hassle to come into the office, but if you’re just sitting in your pajamas in your bedroom, is that the work life you want to live?”

“Don’t you want to feel part of something?” I’m really getting very frustrated with the inability of people in positions of leadership to explain this effectively to their employees.”

“If we don’t feel like we’re part of something important, what’s the point?” he said. “If it’s just a paycheck, then it’s like what have you reduced your life to?”

Let’s get this out of the way first: Gladwell has been a huge success in the world of innovative business thinking. He’s a trendsetter, a unique thinker, and a talented writer. To be very clear, he also has multiple known and proven conflicts that show his many of opinions may be less genuine than his writing suggests.

When it comes to the viability of remote work, he’s also a hypocrite who has spent 10,000 hours working from home (from a 2005 feature at The Guardian):

By leaving his desk behind, Malcolm says that he’s been able to disassociate writing from work. “It seems like a fun activity now. Kind of casual. It’s been more seamlessly integrated into my life and that’s made it much more pleasurable. I never want to be at a desk again.”

And, also from that feature:

Malcolm says: “I hate desks. Desks are now banished.” He starts the day writing at home, but this is always done from his sofa, using his laptop. “I work better when I’m comfortable,” he says. After a stint on the sofa, it’s out into the world.

I’ve been an admirer of most of Malcolm Gladwell’s work over the past 20 years. He has long been considered a visionary, someone who can look beyond the limitations of business thinking and provide value and innovation to leaders who want their organizations to thrive.

Last week’s take on remote work, to be brutally honest, is Gladwell being a contrarian (or propagandist – see below). By saying “It’s not in your best interest to work from home,” he is literally telling his millions of followers that a critical attribute of their work-life integration over the past two-and-a-half years is not the ideal way to work and operate. And, on top of that, as the workforce continues to traverse even more into the realm of humanity, Gladwell is opposed to talented professionals working in an environment that has proven to improve productivity, enhance talent retention, and increase company revenue. (Note: he says he works better when he’s comfortable,, but just re-read his recent quotes from last week at the top of this article.)

Gladwell says that he believes that not working in an office means we’re not “part of something important.” How can anyone, let alone someone that was once a business visionary, publicly state that working from a home office, no matter the rigor or the hours or the effort or the productivity or the late nights or the weekends spent on a laptop, means there’s nothing important that they’re linked to?

The stubborn frame of mind spouted by Gladwell is the literal antithesis of the Future of Work movement. The Future of Work is based on agility, humanity, flexibility, and purpose. Remote work (and hybrid workspaces) promote every one of those aspects.

Gladwell links home office attire (particularly pajamas) to “work life.” How many of you reading this right now have put together tremendously successful projects while in leggings or sweatpants? How many of you have developed innovative solutions, services, or products late at night while wearing a hoodie and shorts? Is there a cat on your lap when you take a video call?

I wrote most of the recent VMS Technology Advisor, a highly-complex project with thousands of data points and insights, in Under Armor shorts and various mono-colored t-shirts from the Gap. Many of the articles on this site were written in that type of attire. I’ve delivered many presentations on video and no one would know that, while I seemed to be wearing a dress shirt, there were athletic shorts below the camera. Even over video conferences, we can see each other’s faces and feel emotion. We can smile and laugh along with jokes together even if we’re hundreds of miles away from each other.

And, finally, regarding the notion of “being part of something”: I and so many others are already part of something. I’m part of a team of individuals whose talent is outstanding (hi, Ardent Partners family!). I’m part of an industry with so many individuals that I can call friends…most of which I haven’t seen in years in-person yet the distance doesn’t affect our fondness and connections. I am a part of a family with an amazing wife and two kids under 10 years old, who I have the ability to walk to the bus stop, cook dinner, help with homework, and read books.

Honestly, it is no surprise that Gladwell, the well-known author (and lesser known tobacco industry propagandist and longtime cigarette apologist) is pandering to the anti-remote work community. One question worth asking is whether or not he is being compensated (by, say, pension funds and other investors in corporate real estate?) for his contrarian’s take on a core Future of Work attribute? (After all, no less than Adweek once asked, “Was Malcolm Gladwell in the Pocket of Big Tobacco?“) It is absurd to think that Gladwell is being genuine here. He’s been wrong on tobacco, and now, he’s wrong on remote work.

Either way, he is criticizing an accelerant that has literally transformed the way we work, connect, collaborate, etc. And, clearly, the analysis behind his take does not account for the millions of workers across the globe that have experienced a newfound sense of flexibility within their lives that they have never felt before, allowing them to spend more time with family and friends, attend important events that they would have otherwise missed because of awful commutes, and, of course, the malleable schedules that have enabled them to optimize they way they work and live.

It’s in their best interests to work from home, after all.

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