The return of the Future of Work Exchange Podcast features a spirited discussion with AMS’ Chief Growth and Commercial Officer, Matthew Rodger. Matthew and I chat about the future of extended workforce management, the impact of AI on talent acquisition, and why contingent workforce programs must change in order to succeed in the months ahead. Check out the video below and stay tuned for the traditional, audio-only podcast on all major podcast platforms.
Direct sourcing has only grown as a hot topic in the workforce management space. What began as a promising trend has now evolved into a proven practice — no longer just a buzzword but an integral part of modern talent strategies. The question facing organizations today is not whether direct sourcing has value, but how it can be effectively implemented and scaled for sustained impact. Leaders across the industry are aligning on the fact that, with the right approach, direct sourcing offers tangible, long-term benefits, particularly in building resilient, agile, and skills-focused talent ecosystems.
The following is based on a FOWX podcast (listen here) and sponsored by Worksuite, featuring host Christopher J. Dwyer, senior vice president of research at Ardent Partners and the managing director of the Future of Work Exchange, as well as a panel of industry experts from Opptly, Beeline, Raise, and Talent Solutions.
At its foundation, successful direct sourcing requires a comprehensive vision that captures all elements of the contingent workforce. This includes ensuring full visibility into contingent labor through vendor management systems (VMS) and managed service providers (MSP). Without this holistic view, companies risk making tactical decisions in a vacuum, limiting their ability to evolve workforce strategy. When organizations manage only a subset of their non-employee labor, they lose critical insight into how work is being done, and more importantly, how it should be sourced.
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To continue providing valuable insights and resources on the future of work and extended workforce management, we’re transitioning our site to a paid subscription model. While some posts will remain free, subscribing will grant you exclusive access to in-depth analysis, market research, expert interviews, and actionable strategies that will help improve your business. Solution providers and practitioners are invited to join today and gain a competitive edge by tracking the industry’s important innovations, emerging trends, and best practices.
In today’s rapidly evolving business landscape, organizations are increasingly recognizing that traditional hiring approaches are insufficient. Forward-thinking enterprises are pivoting to skills-based hiring—a strategy that focuses on candidates’ actual capabilities and expertise rather than their credentials or work history (or, from a recruitment perspective, the mere superficial “match” between their history/portfolio and job prerequisites).
Skills-based hiring represents a fundamental shift in how companies identify, attract, and retain talent. By prioritizing demonstrable abilities over traditional proxies like education or previous job titles and roles, organizations can access wider talent pools, improve diversity efforts, and build more adaptable and agile workforces. This approach is particularly valuable in technology/IT, healthcare, manufacturing, marketing, and other fast-changing sectors where formal qualifications quickly become outdated, but practical skills remain essential.
At the heart of effective skills-based hiring lies skills intelligence—the comprehensive understanding of the specific capabilities required for success, both now and in the future. Skills intelligence essentially entails the mapping of the current skills landscape within an organization, identifying critical gaps, and developing strategies to address those gaps through targeted recruitment and development initiatives, including (but not limited to) direct sourcing, talent communities, and deeper extended workforce engagement.
Contemporary skills intelligence platforms leverage AI and machine learning to create detailed taxonomies that identify relationships between different skills, predict emerging skill requirements, and match candidates to positions based on capabilities rather than just work history. These platforms can analyze job descriptions, resumes, and performance data to create a dynamic, evolving picture of an organization’s skill needs and assets.
For enterprises implementing direct sourcing strategies—a strategic talent acquisition approach where organizations proactively identify, engage, and hire contingent workers through internal channels and talent pools and an in-house recruitment initiative—skills intelligence provides the critical foundation. It enables talent acquisition teams to clearly articulate requirements, efficiently screen candidates, and make deeper, data-driven hiring decisions. Without comprehensive visibility into workforce capabilities, direct sourcing programs may devolve into simple expense reduction initiatives rather than serving as powerful competitive differentiators that transform talent acquisition and deployment strategies.
Skills intelligence also supports other progressive talent strategies, such as internal mobility programs, reskilling initiatives, and the creation of talent marketplaces. By understanding the skills present in their current workforce, organizations can more effectively deploy their human capital, identify development opportunities, and build succession plans.
As automation and AI continue to transform work, skills intelligence becomes even more crucial. It helps organizations anticipate which roles might be automated, which new skills will become necessary, and how to prepare their workforce for coming changes. In this way, skills intelligence serves not just as a recruitment tool but as a cornerstone of organizational strategy and resilience.
The enterprises that thrive in the coming decade will be those that master skills intelligence and skills-based hiring—building workforces defined not by static qualifications but by adaptable, future-ready capabilities.
Artificial intelligence platform Opptly, which has transcended the arena of direct sourcing and talent acquisition technology to become a true “people intelligence” solution, recently launched its Skills Intelligence tool.
“Skills Intelligence represents a pivotal advancement in talent acquisition technology,” said Lori Hock, CEO of Opptly. “Organizations have long struggled with the complexity of matching talent to roles effectively. By harnessing the power of AI to analyze skills in real-time, we’re not just streamlining the hiring process – we’re fundamentally transforming how companies build and evolve their workforce. This platform empowers organizations to make data-driven decisions that ensure they’re not just filling positions, but building future-ready talent communities.”
A standout feature of the platform is its Job Taxonomy Analyzer, which addresses the complexities of skills data management in talent acquisition. This innovative tool can process multiple job descriptions simultaneously, analyze over 2,000 skills within a comprehensive taxonomy, and achieve up to 99% skills similarity scoring. Its unparalleled precision empowers hiring managers to make data-driven decisions, ensuring the right candidates are matched with the right opportunities.
Skills Intelligence also offers an array of functionalities designed to reshape hiring strategies. From lightning-fast skills analysis and bulk processing capabilities to advanced job family mapping and a robust skills database, the platform is tailored to meet the needs of talent acquisition leaders, contingent workforce program managers, and hiring teams. Its flexible input options allow users to process job descriptions and resumes seamlessly, while detailed reporting provides valuable insights across organizational groups.
“Today’s hiring managers don’t have the time to sort through hundreds of resumes, hoping the right skills stand out,” said Craig Coe, SVP of Global Customer Success, Beeline. “With AI, it’s now possible to quickly surface candidates whose skills—both listed and inferred—match the requirements of the role. The result? Significant time savings and stronger engagement outcomes, as managers can focus on a smaller, more curated pool of qualified talent. Hiring managers need both speed and accuracy. AI delivers by quickly identifying candidates with the right skills—both stated and inferred—enabling faster, more precise hiring decisions.”
By incorporating generative AI, Skills Intelligence equips organizations with the tools to evaluate candidates effectively and ensure job descriptions align with current market demands. With features like automated job matching, skill gap identification, and updated job description generation, this platform redefines how companies approach recruitment, delivering a smarter and more strategic way to build their workforce.
Skills Intelligence bridges a crucial gap in talent acquisition, delivering actionable insights and enabling seamless collaboration between HR teams and hiring managers. Its ability to analyze resumes and job descriptions with precision ensures that hiring decisions are based on comprehensive, up-to-date information. By aligning job requirements with market demands and highlighting skills gaps, the platform supports organizations in building stronger, more agile workforces that are equipped to thrive in competitive industries.
Furthermore, Skills Intelligence empowers organizations to streamline hiring initiatives through automation and advanced analytics. Its integration capabilities allow for effortless synchronization with HR systems, reducing redundancies and ensuring consistency across all processes. With tools like the Job Taxonomy Analyzer and customizable job description library, the platform fosters greater efficiency and accuracy, positioning itself as a transformative force in modern recruitment strategies.
Since we started using Opptly Skills Intelligence, our conversations with clients about the value of skills-based hiring have taken on a life of their own,” said Raleen Gagnon, CEO of TalentEdgeAI. “Seeing where roles overlap and diverge based on the skills required creates a new level of understanding that can drive job descriptions, interview questions, and compensation strategy. Having the ability to quickly compare roles and develop new job profiles makes every conversation as valuable as a white-boarding session!”
As businesses continue to navigate the complexities of a fast-evolving workforce landscape, Opptly’s Skills Intelligence tool emerges as a transformative solution that bridges gaps between talent acquisition, workforce planning, artificial intelligence, and organizational strategy. By leveraging advanced AI capabilities, companies can redefine their hiring processes, align workforce capabilities with future demands, and create agile, resilient teams that drive sustainable growth. Opptly’s great leap into the future represents a strategy that empowers organizations to build competitive, future-ready workforces in an increasingly skills-driven world.
If I ever want to show my age, all I need to say is this:
I’ve been in the contingent workforce and HR tech space for nearly 20 years.
Now, like most of the folks in our amazing industry, I got here by accident. While I love the CWM space and the many, many friends I’ve made along the way, I didn’t set out to be an in analyst in this arena when I was college. (No, I aspired to be a journalist, a conversation for another day…)
So, I say this seeing so many market-shifting events, including the “perfect storm” of the contingent workforce’s growth spike in 2008-2009, a “reawakening” during the pandemic, and today’s AI-driven, skills-based hiring arena:
The CW programs of today aren’t built for tomorrow….
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To continue providing valuable insights and resources on the future of work and extended workforce management, we’re transitioning our site to a paid subscription model. While some posts will remain free, subscribing will grant you exclusive access to in-depth analysis, market research, expert interviews, and actionable strategies that will help improve your business. Solution providers and practitioners are invited to join today and gain a competitive edge by tracking the industry’s important innovations, emerging trends, and best practices.
thods within extended workforce management.
As you may know, the Future of Work Exchange moved to a subscription format a short time ago. Ordinarily, this article would only be accessible to FOWX subscribers. However, today’s article on direct sourcing will be available to all until midnight on December 16. Given the rampant discussion on direct sourcing and its outlook, direction, etc., the FOWX felt that this piece should be accessible to all readers for a short period. Enjoy!
For nearly 20 years, I’ve seen talent trends, shifts, and “fads” come and go. There is no industry that invites divisiveness like the world of talent and work. Making contingent workforce management less tactical and more strategic was once seen as crazy, yet today the extended workforce comprises 49.8% of the average company’s total talent, and, businesses regularly rely on this top-tier labor to get work done.
Total talent management deserves a major mention, as it still (yes…still) drives executives absolutely nutty on completely opposite sides of the spectrum: it’s either the wave of the future, or, it’s a pipe dream mired in conjecture and theory. (My take: there’s incredible value in elements of total talent management, particularly total talent intelligence. The ability to make snap worker decisions based on information and data on your total talent resources is the real benefit of any total talent management strategy/program.)
Direct sourcing has reached a similar level of conjecture, and, rightfully so: since the waning days of pre-pandemic times, “direct sourcing and talent pools” have routinely been a top-three workforce strategy, according to Ardent Partners and Future of Work Exchange research. Furthermore, during the pandemic, direct sourcing emerged as a viable, flexible strategy for businesses that 1) wanted to scale up or down based on rollercoaster-like market conditions, 2) keep those laid off during the worst of the pandemic engaged with the organization and cultivated within an easily-recruitable talent community, 3) wanted to maintain their brand (and keep it front-and-center) in front of potential candidates, 4) support burgeoning skills-based hiring efforts, and, 5) desired to centralize their total talent resources and available skills.
There is no question today regarding the value of direct sourcing; we all realize what it can do, what it can generate, etc. The real quandary (and it’s a painful one, given the discourse on social channels liked LinkedIn) is this: how does direct sourcing actually work?
There are several schools of thought here. The simplest explanation is that an enterprise can leverage its own talent acquisition and contingent workforce teams to create an internal “recruitment agency” that blends branded job portals, curation (internally-led or outsourced), and marketing-fueled engagement with VMS or ATS technology (for sourcing and management) and EOR (for payrolling and compliance) for workforce management. Add in some level of automation to place current contractors, contingent workers, retirees, alumni, silver medalists, etc. into talent pools, and, boom, a direct sourcing program is born.
This very non-intricate approach thrives on simplicity: engage candidates, curate them, and provide internal TA and recruitment teams with access to these workers. The past several years has seen a shift, however, in how direct sourcing is approached. Deeper automation, specific functionality offered by direct sourcing platforms, a sharper focus on skills-based hiring, more attention on the marketing/brand aspects, and the power of artificial intelligence are all transforming what direct sourcing truly means today in 2024.
Here’s where some of the scuttlebutt meanders and gets us to a point of “theory vs. reality” within the direct sourcing discussion. Do businesses really need point direct sourcing platforms? Is there a real role for AI? Is there even a true DEFINITION for direct sourcing? Where does VMS fit in? Is it true that direct sourcing technology is just next-gen ATS? And, finally, does direct sourcing have a place within the contemporary extended workforce program?
Let’s tackle these one-by-one, because that’s just how we do things here at FOWX.
Introducing a New Subscription Model
To continue providing valuable insights and resources on the future of work and extended workforce management, we’re transitioning our site to a paid subscription model. While some posts will remain free, subscribing will grant you exclusive access to in-depth analysis, market research, expert interviews, and actionable strategies that will help improve your business. Solution providers and practitioners are invited to join today and gain a competitive edge by tracking the industry’s important innovations, emerging trends, and best practices.
The FOWX Fifteen is an exclusive series at the Future of Work Exchange that highlights the industry’s innovative and disruptive platforms, solutions, and offerings that are driving the Future of Work movement. These providers are actively pushing talent technology innovation and ushering in a new, digital era of workforce management, staffing, and talent acquisition.
The Background
Quick…name the most electrifying word in today’s business landscape. I’ll give you 10 seconds. Wait, you didn’t even need 10 seconds, did you?
“Artificial intelligence” rolls off your tongue faster than a machine learning algorithm processes data..and for good reason: AI has become the cornerstone of innovation, seamlessly weaving through enterprise ecosystems – from the intricate networks of IT and analytics to the strategic realms of finance and talent acquisition.
Recent groundbreaking research from Ardent Partners and Future of Work Exchange reveals a transformative landscape: an overwhelming 82% of businesses entered 2024 with a strategic mandate to amplify their artificial intelligence capabilities. Even more revealing? Among HR and talent acquisition leaders, that number skyrockets to nearly 95% – a clear signal of a profound technological revolution.
This isn’t just about technological adoption, though; it’s about a fundamental reimagination of talent strategy. AI represents more than a tool – it’s a strategic accelerant that empowers talent leaders to transcend traditional boundaries. By harnessing next-generation analytics, organizations can now dynamically map, find, and engage talent, while simultaneously building robust, forward-looking skills taxonomies that don’t just predict the Future of Work – they actively shape it.
Enter Opptly.
Why They Were Selected
Opptly’s core offerings revolve around progressive functionality within direct sourcing, candidate engagement, skills-based hiring, and skills taxonomy development. However, the platform is so much more than the sum of these attributes, as the solution is a true “people technology” that is actively blazing a path forward within the Future of Work movement.
The proprietary and future-leaning artificial intelligence-driven technology within the Opptly platform represents the veritable future of AI in talent acquisition. Opptly’s advanced AI offerings seamlessly match the best talent with mission-critical opportunities by analyzing deep professional insights, skills, expertise, and project requirements in real-time, all while factoring in progressive candidate elements such as culture, economics, etc.
Through sophisticated machine learning algorithms and NLP-augmented functionality, Opptly optimizes the entire talent lifecycle – from sourcing and vetting to engagement and project success – delivering unparalleled efficiency and precision in the direct sourcing, talent acquisition, and workforce management ecosystems.
In Their Own Words
“Opptly is proud to be included amongst other Best-in-Class platforms and solutions in the talent technology arena. This accolade is a testament to our unwavering commitment to truly unbiased artificial intelligence that can revolutionize the ways businesses find, engage, and manage their total talent. Opptly represents the future of hiring – where cutting-edge technology meets human potential, creating a seamless, intelligent, and equitable dynamic that transforms how organizations and talent connect, collaborate, and succeed.” – Lori Hock, CEO of Opptly
The Outlook
Simply put, Opptly is a pure technological representation of the Future of Work movement: next-generation functionality, AI-fueled talent innovation, and cutting-edge, skills-based hiring offerings that are actively revolutionizing the ways businesses address how work is done. As artificial intelligence continues to dominate talent acquisition strategies, Opptly and its progressive AI sophistication will continue to help enterprises dynamically adapt to modern workforce trends, seamlessly match top-tier talent with critical opportunities, transform their talent strategies, and provide an intelligent and infinitely scalable competitive advantage.
Season Eight of the Future of Work Exchange Podcast kicks off with a dynamic panel discussion on direct sourcing. Rebecca Valladares (Opptly), Brian Hoffmeyer (Beeline), Tim Rhodes (Raise), and Matthew McCartney Waggle (Talent Solutions TAPFIN) join me to discuss the state of direct sourcing, AI’s impact on hiring and recruitment, the future of direct sourcing programs, how skills-based hiring will reshape talent acquisition, and more. Tune in!
Earlier this week, Ardent Partners and the Future of Work Exchange hosted an exclusive webcast focused on AI-powered contingent workforce management and its impact within the Future of Work movement. I was joined by Opptly’s Lori Hock (CEO), Beeline’s Colleen Tiner (Chief Product Officer), and NLP Logix’s Matt Berseth (CIO, co-founder) to discuss a wide range of hot topics under the artificial intelligence umbrella, including:
Check out an on-demand replay of the webinar below.
For the past several years, the myriad options available to the contemporary hiring manager have pushed the boundaries of talent acquisition. Freelancer networks, talent marketplaces, vertical-specific talent communities, social media, and digital staffing outlets have provided businesses with a new range of diverse, highly-skilled, and top-tier talent. In fact, Ardent Partners and Future of Work Exchange research point to an 800% growth in adoption and utilization of these sources since 2018…positioning them as a must-have in the greater war for talent.
Around the time the Future of Work Exchange was launched back in 2021, we coined a phrase that accurately reflects this movement: omni-channel talent acquisition. Omni-channel talent acquisition revolves around the concept of enterprises being enabled with a variety of candidate sources that can be converged to drive real-time skills alignment, on-demand hiring, and enhanced visibility into deeper attributes of candidates. While traditional staffing suppliers are still a critical piece of the contingent workforce, the “omni-channel experience” represents a new era in which enterprises can expand their talent searches through the advent of innovation, direct sourcing automation, new candidate channels, and next-generation and AI-fueled technology.
News broke this morning of a partnership between Beeline, a market leader in Vendor Management System (VMS) technology, and Upwork, a fellow market leader that is considered the world’s largest talent and work marketplace.
At the outset, this type of partnership is not just another notch in the talent technology ecosystem for either organization, but rather a powerful union between two industry powerhouses of talent innovation. The Upwork and Beeline partnership represents the latest shift in omni-channel talent acquisition, as well as a progression in workforce management.
“Managing a contingent workforce, inclusive of independent talent, presents complexities and challenges that can strain even the most sophisticated processes. These challenges include navigating compliance with local and international labor laws, ensuring visibility into the entire hiring lifecycle, and maintaining consistent hiring quality and efficiency across various departments,” said Zoë Diamadi, general manager of enterprise at Upwork. “Upwork’s partnerships with VMS and MSP platforms, such as Beeline, create a holistic solution to these challenges. We have integrated the modern, technology-fueled experience of Upwork’s platform and the world-class, independent talent on Upwork with the advanced technologies and solutions of VMS and MSP platforms.”
Here’s what the partnership means for the industry:
“Access to a large and diverse talent pool that is filled with candidates that hold a variety of skillsets is key to the success of any contingent workforce program,” said Brian Hoffmeyer, SVP of Market Strategies at Beeline. “I’m an Upwork user myself and I know first-hand how great their platform is. Those facts make me thrilled to launch this partnership, and, more importantly, excited about the benefits it will offer to our mutual clients.”
“The new voice (and video) mode is the best compute interface I’ve ever used,” said OpenAI CEO Sam Altman yesterday at the company’s launch of its latest AI model, GPT-4o (“omni”). “It feels like AI from the movies; and it’s still a bit surprising to me that it’s real. Getting to human-level response times and expressiveness turns out to be a big change.”
OpenAI’s latest model, GPT-4o, seamlessly blends voice, video, and text to redefine the AI interaction experience, striving for a natural and intuitive engagement. Beyond mere text processing, this model comprehends and reacts to both audio and visual inputs, ushering in a more human-like interaction. Moreover, OpenAI’s efforts in enhancing responsiveness are evident as GPT-4o boasts reaction times in milliseconds, mirroring the pace of a genuine conversation.
There’s a ton to unpack in Altman’s excitement, but there’s a key word in there that means so much for the world of talent technology: expressiveness. And it will take artificial intelligence to the next level in regards to how businesses find, engage, source, manage, and retain talent.
Introducing a New Subscription Model
To continue providing valuable insights and resources on the future of work and extended workforce management, we’re transitioning our site to a paid subscription model. While some posts will remain free, subscribing will grant you exclusive access to in-depth analysis, market research, expert interviews, and actionable strategies that will help improve your business. Solution providers and practitioners are invited to join today and gain a competitive edge by tracking the industry’s important innovations, emerging trends, and best practices.