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Let’s Set the Record Straight on Direct Sourcing

Direct SourcingTalent Acquisition by Christopher J. Dwyer on

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.

The rest of this article is available by subscription only.

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.

Click here to learn more.

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The FOWX Fifteen: Opptly

Direct SourcingSolution ProvidersTalent AcquisitionTechnology and Innovation by Christopher J. Dwyer on

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, diversity, 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.

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The Future of Work Exchange Podcast, Episode 801: Direct Sourcing Panel Discussion With Beeline, Opptly, Raise, and Talent Solutions TAPFIN

Direct SourcingPodcast by Christopher J. Dwyer on

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!

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Artificial Intelligence, Contingent Workforce Management, and the Future of Work (On-Demand Webinar)

Contingent WorkforceDirect SourcingTalent AcquisitionTechnology and InnovationVideo by Christopher J. Dwyer on

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:

  • The true adoption and utilization of artificial intelligence within today’s extended workforce programs, hiring strategies, and talent acquisition initiatives.
  • The link between AI and skills-based hiring.
  • How businesses can move from an “education phase” to “adoption phase” for their AI initiatives.
  • How AI can supercharge and optimize direct sourcing strategies.
  • Why AI-fueled skills taxonomies are the foundation of a skills-based hiring approach.

Check out an on-demand replay of the webinar below.

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Shaping the Future of Work: Beeline and Upwork’s Omni-Channel Approach

Contingent WorkforceSolution ProvidersTechnology and Innovation by Christopher J. Dwyer on

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:

  • It will optimize talent acquisition in a skills-based market. VMS has been a veritable “nexus” of extended workforce management for years, with ease-of-access to various channels of talent through staffing suppliers, private talent communities, and independent talent. The Beeline-Upwork integration will amp talent acquisition optimization to another level by providing contingent workforce programs with top-tier talent from the marketplace’s extensive network whilst enabling hiring managers with state-of-the-art, skills-centric candidate profiles and portfolios.
  • “Agile hiring” creates more efficiencies for HR, procurement, and talent acquisition. Combining the dynamic power of two end-to-end, market-leading workforce solutions translates into truly flexible and agile hiring for recruiters, hiring managers, and HR and talent acquisition leaders, not to mention the executives running extended workforce programs. The age of real-time talent acquisition is here and the Beeline-Upwork represents the ability to hire faster, better, and smarter, creating a wealth of efficiencies for business functions.
  • The partnership reinforces the strategic and technological advantages of omni-channel talent acquisition. As stated above, the Beeline-Upwork partnership is more than “digital staffing meets VMS.” The age of omni-channel talent acquisition is here and this union reflects both its strategic advantages (greater access to skilled talent, streamlined hiring, etc.) and technological advantages (skills-based hiring-fueled talent decisions, AI-enabled matching, end-to-end automation, etc.).

“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.”

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How Will Chat GPT-4o Impact Talent Technology?

Business LeadershipHRTalent AcquisitionTechnology and Innovation by Christopher J. Dwyer on

“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.

The rest of this article is available by subscription only.

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.

Click here to learn more.

read more

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.

The rest of this article is available by subscription only.

Introducing a New Subscription Model from the Future of Work Exchange.

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.

Click here to learn more.

read more

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?

The rest of this article is available by subscription only.

Introducing a New Subscription Model from the Future of Work Exchange.

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.

Click here to learn more.

read more
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