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skills-based hiring

Upwork Survey Identifies Fastest-Growing Skills

Business LeadershipContingent WorkforceGeneral InsightsSolution ProvidersTalentTechnology and Innovation by John Yuva on

The world of work is rapidly evolving as technologies like artificial intelligence (AI) shift how work gets done. Enterprises are turning to AI for transformative workplace results, leading to increases in upskilling and technology adoption within the contingent and permanent workforce. This opens the door for freelancers and contractors who meet the skills demand from organizations to leverage new technology for greater efficiencies and substantial insights.

Growth in Data Science & Analytics Category

What skills are needed now and in the future? Upwork, the world’s work marketplace connecting businesses with independent talent, released its report “In-Demand Skills 2024” highlighting the critical skills workers need across a variety of categories. The report revealed that Data Science & Analytics is one of the fastest-growing work categories as generative AI modeling and machine learning produce strong demand from businesses. Upwork revealed that the AI and machine learning subcategory on the company’s platform saw 70% year-over-year growth in the fourth quarter of 2023, as clients and independent professionals collaborate on today’s most cutting-edge projects.

The Upwork report identified several fastest-growing work categories and skill sets where contingent labor can deliver the greatest value. As the examples below illustrate, artificial intelligence and automation in general are heavily sought after for 2024 and beyond.

  • Data Science & Analytics — Top 3 Fastest-Growing Skills: Generative AI Modeling, Machine Learning, Data Analytics
  • Coding & Web Development — Top 3 Fastest-Growing Skills: Scripting & Automation, Database Development, and Web Design
  • Sales & Marketing — Top 3 Fastest-Growing Skills: Marketing Automation, Sales & Business Development, Email Marketing.

This year’s “In-Demand Skills” report noted several new skills emerging in the top 10, including medical and executive virtual assistance, as well as development & IT project management and digital marketing campaign management.

Skills-Based Hiring in the Age of Emerging Tech

With the demand for specific skills, organizations are turning more toward skills-based hiring to meet their workforce needs. According to Kelly Monahan, managing director of the Upwork Research Institute, “Every company is vying for the best talent and there remains huge demand for a broad range of skills across the Upwork marketplace as businesses big and small are finding solutions in the growing reservoir of skilled independent professionals,” she said.

“In 2024, emergent technologies like generative AI are having a major impact on the skills-based economy. Of course, business demand for these types of skills is increasing, but we’re also seeing a complementary impact, whereby AI technology is driving greater demand for all types of work across our marketplace,” Monahan added.

Growing Demand for AI Expertise

Monahan’s comments also align with the current influence of AI on the workforce. According to a report released by the International Monetary Fund (IMF) entitled, “Gen-AI: Artificial Intelligence and the Future of Work,” nearly 40 percent of global employment is exposed to AI. As more solution providers integrate artificial intelligence into their offerings, that percentage is likely to increase. Enterprises are turning to AI to streamline business processes and automate tactical tasks that provide workers with more time for strategic planning.

This is good news for freelancers and contractors upskilling or with existing expertise in artificial intelligence, machine learning, and data analytics. According to Jacqueline DeStefano-Tangorra, an AI consultant on Upwork, “As technology rapidly changes and more specific expertise is needed, more and more businesses are coming to Upwork to find the solutions they need,” she said.

“Consequently, the demand for my skill set has never been higher. Upskilling and becoming an AI professional on Upwork has opened many doors. I get to work on interesting projects and I am a stronger partner for my clients as I’m more efficient, productive, and can deliver better outcomes,” DeStefano-Tangorra added.

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The Future of Work Exchange Podcast, Episode 715: A Conversation With Christy Forest, CEO and Executive Director at LiveHire

Podcast by Christopher J. Dwyer on

The Future of Work Exchange Podcast welcomes Christy Forest, CEO and Executive Director at LiveHire, to discuss the current state of direct sourcing, the future of this high-impact strategy, the reality of total talent management, and much more.

This week’s podcast, sponsored by Worksuite, also highlights the importance of “balance” between human-centricity and digital evolution.

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“Balance” in the Future of Work: Harmonizing Human Centricity and Digital Evolution

Business LeadershipTalent AcquisitionTechnology and Innovation by Christopher J. Dwyer on

It can be tough to strategize around the best-fit approach for optimizing how we get work done. Digital-focused plans have been top-of-mind for the past several years, with the concept of “digital transformation” a rightly-hyped strategy that prioritizes automation, linkage of enterprise systems, scalability of core processes, and (most importantly) real-time convergence and access of insights and data.

However, the “digital enterprise” cannot survive on technology alone. Innovation does not occur in a vacuum, regardless of just how advanced businesses software (and hardware) is across the greater organization. “Human centricity” should be heralded as a proactive and forward-thinking approach that places not just people in the center of work optimization, but the skillsets inherent within the human workforce.

From here, the old adage of what’s “better” for the business: people or technology? Digitization or humanization? Which is the best path forward, especially during what could be a rollercoaster, frenetic 2024?

First, though, there is the caveat of automation being different than digitization, which is different than innovation. All three are inherently linked, however, there is a vast separation between automating menial tasks and truly innovating around an enterprise’s core products and offerings.

Innovation is the key here, because, frankly, innovation only happens when there is a balance between human-centric strategies that prioritize skillsets and expertise and digital-focused initiatives that aim to harness the power of next-generation technology and platforms (a la artificial intelligence) to blaze a path ahead.

Innovation, thus, is not confined to technological advancements or next-generation platforms or solutions alone; it thrives when human creativity collaborates with cutting-edge tools. A true, innovation-ready mindset encompasses a culture that encourages collaboration, experimentation, and the continuous development of skills.

Organizations need to foster an environment that values and invests in the growth of their human capital, recognizing that the synergy between technology and human inventiveness is the recipe for transformative breakthroughs, and, consequently, sustained success during an era of globalized competition.

How is this “balance” achieved, then? Harmonizing digitization and humanization sounds simple on the surface, but more difficult to truly execute:

  • Prioritize the adoption, and more importantly, understanding of artificial intelligence and how it can augment, enhance, and power core businesses processes.
  • Invest in a skills-based hiring strategy that supersedes traditional talent acquisition approaches and instead places skillsets/expertise at the core of talent engagement initiatives.
  • Capitalize on the flexibility and agility inherent within today’s extended talent-heavy workforce and leverage expertise from non-employee workers to drive complex projects that require advanced skillsets.
  • Cultivate an environment that values and invests in the growth of the human workforce.
  • Recognize that the synergistic harmony between people and technology is the key to unlocking innovation and sustained organizational success.

In the pursuit of an optimal path forward, businesses must strive for a symbiotic approach that aligns technological investments and next-generation automation with the cultivation of a skilled and adaptable (and agile) workforce. The success of the modern enterprise in 2024 hinges on its ability to integrate digital advancements with a human-centric focus to foster innovation.

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How Do We Define Direct Sourcing in 2024?

Uncategorized by Christopher J. Dwyer on

In the realm of workforce management, the concept of direct sourcing has not escaped the fervor of its own hype machine. The question persists, though: what defines direct sourcing? What is its true “reality”? What “state” is direct sourcing in today, given the evolution of talent acquisition and extended workforce management?

There is no easy answer, unfortunately. The most interesting facet regarding direct sourcing is that the industry has not yet settled on a true definition; much like contingent workforce programs can be called such without a drop of automation or third-party support, direct sourcing often falls into the same spectrum. Even without a VMS, extended workforce platform, or MSP in place, businesses can state that their non-employee workforce programs are tried-and-true (and “end-to-end”) even in cases where additional attributes, particularly services procurement and SOW management, aren’t considered part of the overall initiative.

Misconceptions surrounding direct sourcing often center on the intricacies of its implementation and the true characterization of what qualifies as genuine “direct sourcing.” Does an enterprise curating its talent internally and channeling candidates into a talent pool truly embody direct sourcing as a core workforce strategy? To discern the essence of direct sourcing, we must explore its full spectrum, including segmentation, integration into primary recruitment streams, and the facilitation of talent nurture capabilities — which is where the question arises: is automation indispensable for it to be deemed a true, end-to-end program? Do enterprises require deeper talent technology stacks to ensure direct sourcing meets its potential as a talent acquisition gamechanger?

That question is a bit easier to answer. Event though direct sourcing stands apart as a workforce strategy that yields significant benefits even when its components are selectively harnessed, there is so much more value in the initiative when its fueled by next-level automation and an edge of talent acquisition transformation. While businesses prioritizing meticulous talent curation and the optimization of talent communities often find themselves equipped with top-tier candidates, particularly crucial in an era where experience and skillsets reign supreme, the truth is that the full potential of direct sourcing, especially in terms of talent nurture, referrals, and skills-based hiring, requires the incorporation of advanced capabilities facilitated by direct sourcing platforms, artificial intelligence (AI), and extended workforce automation.

Yet, challenges abound. Executive buy-in, functional collaboration, and recruitment disparities can impede the success of direct sourcing. It is crucial to recognize that talent curation alone is not a panacea, and merely applying direct sourcing-like processes to existing talent acquisition capabilities falls short. Enterprises must delve into the core motivations behind adopting direct sourcing and implement comprehensive measures for its end-to-end execution. Cost savings demand agile talent engagement and the seamless integration of talent pool/community candidates into existing recruitment streams, while an enhanced candidate experience necessitates placing AI and related technology at the forefront of every candidate journey, particularly in a mobile setting.

And, with skills-based hiring becoming a critical recruitment initiative for 2024, defining “direct sourcing” will entail converging multilayered strategies and solutions, along with progressive business thinking, into a seamless program that facilitates the next generation of hiring.

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The Convergence of Soft Skills and Skills-Based Hiring (and the [Near] Future of Recruitment)

Talent Acquisition by Christopher J. Dwyer on

Over the past several years, there has been a raging debate around what is seemingly more important for a business’ overall success regarding its workforce: “hard skills” or “soft skills.” The longstanding argument for top-billing between hard skills and soft skills has been a defining narrative in the realms of talent acquisition, recruitment, talent management, and overall workforce planning.

An Evolving Workplace Shifts Traditional Skills Requirements

Historically, hard skills, encompassing specific technical proficiencies and measurable expertise, have often taken precedence in hiring decisions. These skills (think areas such as coding, data analysis, or engineering) were traditionally deemed as tangible indicators of overall alignment between pure job prerequisites and the ability (or potential) for a candidate to meet those requirements.

However, the evolving nature of workplaces, marked by globalization, automation, and the rise of innovative technology platforms and tools, has shifted the balance. The scales tipped even more dramatically during the COVID-19 pandemic, further altering how businesses planned around “work” given the pandemic’s tremendous, far-reaching implications and impacts. As the Future of Work Exchange has often written, the pure influence of humanity within the professional environment has become table stakes for business leaders who want to both manage effectively and drive real talent retention.

Skills-Based Hiring Offers Holistic Approach

Soft skills, comprising communication, collaborative abilities, emotional intelligence, and relationship management, are increasingly recognized as indispensable assets in fostering effective, functional teamwork and organizational success. The dichotomy between hard and soft skills is giving way to a more holistic perspective, acknowledging that a harmonious integration of both skill sets is essential for thriving in the contemporary professional landscape. The synergistic interplay between technical proficiency and interpersonal finesse is now understood as the key to unlocking individual and collective potential in a rapidly changing world…one that places the utmost emphasis on skills as the catch-all determinant for talent acquisition.

Skills-based hiring is not an entirely new concept, but rather one that has become more refined over the past two or three years for one major reason: it is crucial now due to rapid technological changes, remote work dynamics, talent shortages, and the need for diverse, adaptable candidates in an ever-evolving labor market.

Adaptability and the Future of Recruitment

Adaptability is one notion that cannot be overlooked heading into 2024. Talent and the world of work shift in near-real time, forcing global businesses to consistently reevaluate their workforce and staffing strategies to keep pace with the competition. In this dynamic environment, organizations that prioritize adaptability not only navigate technological advancements, but pivot to changing skill demands and diverse work arrangements more effectively, positioning themselves as industry leaders capable of seizing emerging opportunities and staying ahead in a rapidly-evolving marketplace.

How does this play into the concept of skills-based hiring? Businesses that view the whole picture of a candidate and take into account both hard expertise and soft skills are the ones that will ultimately thrive during times of enterprise evolution. This, essentially, is the very future of recruitment: a convergence at the crossroads of hard skills, soft skills, skills-based hiring, and, yes, adaptability. Beyond the traditional emphasis on hard skills, the recognition of soft skills — like flexibility, effective communication, and emotional intelligence — has gained prominence in shaping collaborative, effective, productive, and responsive workplaces.

Skills-based hiring strategies, which can pinpoint specific competencies across both the hard and soft skill arenas, empower organizations to align talent with the fluid demands of evolving roles, enhancing overall agility and competitiveness. This, too, is the perfect entry-point for artificial intelligence to transform the way businesses react to “skills DNA” and integrate the next generation of skills-based hiring into the greater recruitment strategies.

At the heart of this evolution is the paramount importance of malleability within the confines of skills-based hiring. As industries undergo rapid transformation and technological advances reshape job landscapes, successful recruitment hinges on candidates who embody a harmonious blend of hard and soft skills, as well as hiring initiatives that embrace the principles of skills-based hiring and possess the adaptive prowess essential to navigate the ever-changing workplace of the future.

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The Rising Tide of AI in Talent Acquisition (On-Demand Webinar)

EventsTalent Acquisition by Christopher J. Dwyer on

It’s no secret that artificial intelligence is the veritable “rising tide” that shapes both businesses and personal arenas unlike any other technology before it. In the world of work, AI has become a formidable gamechanger in how enterprises find, engage, source, and manage talent…meaning that those businesses that have not yet embraced artificial intelligence will soon find that their tech-enabled brethren will maintain a critical advantage.

AI shapes industries, decisions, interactions, and opportunities, essentially impact everyone’s work and daily life.

If you missed last week’s exclusive webcast that featured Opptly and the Future of Work Exchange, don’t worry…we’ve got you covered. Check out an on-demand replay below and learn why Opptly’s Lori Hock and Rebecca Valladares (and, of course, the Future of Work Exchange) believe that AI will forever transform talent acquisition.

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Skills-Based Is the New Workforce Frontier

Business LeadershipDirect SourcingDiversity and InclusionGeneral InsightsHRTalent AcquisitionTechnology and InnovationUncategorized by John Yuva on

We have recently talked about gamification and digital credentials as strategies for greater employee engagement, collaboration, and skills development. As enterprises re-engineer their workforce architectures toward a skills-based organization, these strategies will play a critical role in that initiative.

Why is skills-based the next workforce frontier? Simply put, traditional, antiquated job description-defined roles are ineffective in today’s volatile business landscape. Enterprises require agility and flexibility to respond appropriately to operational and market changes. A skills-based workforce architecture supports that requirement by aligning employee skills with project-focused initiatives. Deploying employees with specific skill sets to solve problems and ensure business continuity is a Future of Work vision.

Purpose of Work Redefined

With a nimble and responsive workforce, enterprises can leverage their talent using a more holistic approach while generating a greater sense of work purpose for employees. According to an article in Training magazine, “Skills-based organizations have a more agile and employee-centric approach to work where employees are valued for their skills rather than their job title, level, or educational qualifications.”

“It is a new operating model of work where employees are matched to tasks and projects based on skills, capabilities, and interests. Focusing on skill sets instead of job experience can help organizations optimize their talent pool.”

However, the success of this workforce model depends heavily on the ability to define work within the enterprise. What is the work that can ultimately provide a competitive advantage in the marketplace? Where in the organization does the most critical work reside? What skillsets and capabilities are most valued to accomplish the work required? How does the enterprise capture, structure, and utilize skillset data?

The critical answers to these questions are all part of the foundation of a skills-based structure.

Core Tenets of a Skills-Based Organization

The foundational elements of the skills-based organization revolve around the concepts of rethinking the parallels between talent and work; thus, the very future of the skills-based organization depends on forward-thinking strategies, ideas, and, of course, technology, according to Chris Dwyer, senior vice president of research at Ardent Partners and the managing director of the Future of Work Exchange.

Consider the Future of Work Exchange’s six key elements of skills-based organizations and how they impact the greater business (and its staffing, recruitment, and hiring efforts).

Candidate Centricity

A candidate-centric talent strategy ensures that businesses place the utmost emphasis on the candidate experience and the candidate journey, thus positioning them to attract and engage top-tier skillsets and expertise. Employee development opportunities are essential in retainment and career progression initiatives.

A Shift to Skills-based Hiring

Job-based hiring has long been the foundation of talent acquisition. However, for skills-based organizations, prioritizing expertise as the core of hiring enables a deeper range of total talent. An important part of this strategy is diversity, equity, and inclusion in the hiring process as well. DE&I should be communicated by leadership as an enterprise priority.

A Foundation of AI and Data

Deeper, AI-furled technology allows businesses to execute more effective candidate matching, identify critical skills gaps, and provide leaders with predictive insights into the organization’s future talent. Rather than reactively responding to operational and market changes, AI and data enable a proactive approach to talent identification and deployment.

Expansion of Skills

Hard skills are crucial, but “soft” skills are critical for productive and engaged workers. SBOs expand their candidate searches to prioritize behavioral skills just as much as traditional expertise. The need for strategic problem-solving and collaboration across business units is an inherent characteristic of a skills-based enterprise.

Enhanced Experiences

Skills-based organizations not only prioritize the candidate journey but also the hiring manager experience to ensure that consistent, scalable methods are leveraged to catalyze a frictionless talent acquisition experience.

Omni-Channel Talent Acquisition

Skills-based organizations leverage “omni-channel talent acquisition,” in which hiring strategies revolve around a variety of talent sources, including direct sourcing, talent marketplaces, digital staffing, etc. Cultivating those pipelines with diverse candidates, while also using source prioritization for specific requirements will streamline the talent acquisition process.

A skills-based organization is a major transformation from the traditional approach of job-defined roles and responsibilities. Core to a successful skills-based workforce model is comprehensive talent assessments of existing skillsets, integration of workforce technologies, and structured processes for identifying projects and deploying needed skillsets. And of course, there’s change management that is necessary to make the transformation sustainable, a topic we’ll tackle in a later article.

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The Core Tenets of the Skills-Based Organization

TalentTalent Acquisition by Christopher J. Dwyer on

The foundational elements of the skills-based organization revolve around the concepts of rethinking the parallels between talent and work; thus, the very future of the skills-based organization depends on forward-thinking strategies, ideas, and, of course technology. Businesses are more likely to thrive in the months and years ahead by adopting a candidate-centric approach to hiring that is skills-based rather than job-based.

The exclusive Future of Work Exchange infographic below, The Core Tenets of the Skills-Based Organization, unveils the six key elements of skills-based organizations and how they impact the greater business (and its staffing, recruitment, and hiring efforts).

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