I had a wonderful opportunity to join Beeline’s Chief Procurement Officer, Mike Schiappa, on the CPO Open Mic podcast. In what ended up being one of my all-time favorite discussions, Mike and I chatted about “The Great Resignation” (and how it will become “The Great Resettling”), the growth and impact of the extended workforce, why direct sourcing should be top-of-mind, and how business leadership needs to be more human. Tune in!
When we take a 30,000-foot purview of what’s happening right now regarding “The Great Resignation,” it looks pretty dire: nearly four-plus million workers have left their positions each month since October of last year. Not counting numbers for March (which have not yet been announced by the Bureau of Labor Statistics), that’s nearly 16 million people who have resigned, quit, etc. over a four-month period.
Economist Arindrajit Dube recently sparked an interesting discussion on why he believes that The Great Resignation is more of a “Great Reshuffling,” given that data points to workers’ resignations concentrated in industries such as retail, restaurants, hospitality, mining and logging, etc. And, interestingly enough, just last week, he tweeted:
There is no Great Resignation … people are not leaving the workforce. Prime-age employment rate is back to 2019 levels! What we have is a Great Reshuffling: workers moving to better paying jobs. That’s what a competitive labor market actually looks like!
So, if we were to agree with Dube, the approach towards what’s happening right now would look something like this: workers, unhappy with wages, left their positions en masse for better compensation, creating a “weird” labor market that is now competitive compared to the disconcerted workforce foundation that we experienced earlier in the pandemic.
I’m not one to disagree with a talented economist who bases his public insights on hard data. However, I’d like to throw some additional thoughts onto the pile to reflect some of the other influences on The Great/Greatest Resignation. For one, Dube’s only miss in his statement is that there’s so much more to resignations than compensation. In fact, we’ve talked about them (at-length!) here at the Future of Work Exchange. Purposeful work, flexibility, remote and hybrid work options, etc.…these are absolutely critical facets that contribute to the ongoing, massive numbers of resignations.
What many pundits seem to be getting at in their messaging is this: why is the labor market so competitive even though 16 million workers (not including those who had done so in March) left their positions voluntarily over the past several months? Is The Great Resignation even real?
Well, yes, it is. We just cannot argue with the fact that millions of people left their roles; the numbers are there to prove that. It’s what’s happening after the resignations that is so vitally important. This is where I feel what is happening is more of a “Great Resettling” rather than a “Great Reshuffling,” as workers who have left their jobs are “resettling” themselves within a different dynamic.
Economist Dean Baker brought up an interesting point in an article from a few weeks ago, stating, “The number of people who reported being self-employed (both incorporated and unincorporated) in March was 618,000 above the average for 2019. The fact that self-employment remains high, even as the labor market has tightened enormously, indicates that self-employment is a choice rather than an act of desperation.” (Future of Work Exchange research discovered this, as well, back in the summer of 2021: 43% of the workforce was considered “non-employee” before the pandemic and increased to over 47% during it.)
The word “choice” in that statement means all of the difference between “reshuffling” and “resettling.” A great reshuffle, at least to me, would mean that workers are moving in vastly different pathways than they were in pre-pandemic times. A great resettlement means that:
Figuratively, the “dust is settling” right now. If the March resignation numbers mimic those of November, December, January, and February, we’re still operating in Greatest Resignation mode, with workers about to rethink their future pathways aiming for a more settled foundation for the second half of 2022.
Actually, today, professionals are settling into positions that satisfy long-desired urges, including flexibility, empathy, and purpose. The Great Resettling seems to be a more on-the-nose phrase to use, since it encapsulates the ways workers are settling into extended/contingent roles, independent positions, and solo-preneur/entrepreneur ventures.
The “Chief People Officer” isn’t exactly a new type of leadership position, but it doesn’t necessarily have the same history as the Chief Finance Officer or Chief Procurement Officer. At the end of the day, however, this “newer” role may be the most critical for enterprises as we exit and “enter” an intricate period in business history.
Many organizations believe that the Chief Human Resources Officer (CHRO) and Chief People Officer are essentially the same role; while some businesses’ job descriptions of these positions may be one in the same, we are beginning a phase in corporate America that requires more than HR responsibilities in a CPO role…
…which brings us to the topic at hand: if you don’t have a Chief People Officer, you need one.
Let’s review what’s happening in businesses across the country (and the world) right now:
Executive HR roles are now focused on developing a proper workforce culture while balancing diversity, equity, and inclusion (DE&I) initiatives, on top of extreme staffing shortages that have long been a hallmark of the economic recovery phase during these pandemic times. To throw even more into the equation, particularly how to combat The Greatest Resignation, develop a flexible workplace environment, foster purpose across the staff, and introduce next-generation analytics into the fold, well, it’s clear that there needs to be a role that blends HR-oriented expertise with a progressive series of skillsets that can transform the greater organization from technology, intelligence, and talent-led perspectives. (I’m fully aware that many organizations blend the CHRO and CPO roles into one, and the enterprises that do this effectively converge many of the best capabilities of each position for maximum value.)
The Future of Work in 2022 dictates that enterprises reimagine how they get work done, especially considering the fundamental transformations happening within the realms of talent, technology, and overall business thinking. The Chief People Officer can be a catalyst for “rebooting” the very notions of work, helping the greater organization foster a dynamic culture of inclusivity and flexibility while preparing it for the ongoing transformations happening today:
The path to Direct Sourcing 2.0 is rooted in the idea that data should drive talent-led decision-making. Most next-generation direct sourcing programs leverage AI-driven functionality to enable a more robust picture of available skillsets, improve the matching of available skills with open positions and project requirements, streamline the assessment of candidate skills and expertise, and enhance worker intelligence. The majority of businesses see AI and advanced analytics as a catalyst for Direct Sourcing 2.0 over the next two years, as discovered by Ardent Partners and the Future of Work Exchange.
An employer’s brand can be a catalyst for talent transformation because it can be used to attract talent and maintain an allure as non-FTE workers shift in and out of enterprise projects. Direct Sourcing 2.0 builds on brand concepts and pushes them to a higher level by using AI and analytics on candidate data to improve messaging, increase support for diversity initiatives, and gain a clearer picture of the worker expertise available in the market. Our research shows that:
“Find joy in everything you choose to do. Every job, relationship, home… it’s your responsibility to love it, or change it.” – Chuck Palahniuk, Best-Selling Author
For months now, “The Great Resignation” has been dominating headlines, thought leadership, workforce news, and all of the appropriate responses to the transformation of talent and work. By now, we know the stakes: millions of workers are voluntarily leaving their jobs for a variety of reasons, all of which prove that there’s more to life (and work!) than just cold, hard cash.
The Future of Work Exchange has been covering this topic for months, encouraging business leaders to think about The Great Resignation from a different perspective, that of a “Talent Revolution.” So it goes, the foundational elements of what’s also being called “The Big Quit” revolve around the concepts of purpose, career journeys, and alignment between a human and his/her/their work. Too, aspects like better working conditions, inclusive workplace culture, and, yes, of course, compensation, are all driving factors of the revolution happening right in front of us.
So, given all of this, when does The Great Resignation end? Well, it seems we’re heading in the opposite direction. Let’s just call it The Greatest Resignation, because:
“Great” has become “Greatest” as this phenomenon marches on. We’re supposed to be living in a “let’s just deal with it” phase of the pandemic, so shouldn’t that mean all of those aspects of business disruption, including staffing shortages and massive resignations, start to curtail as we move towards our so-called “new normal”?
In an article on CNBC, Daniel Zhao, senior economist at Glassdoor, said that “These quits are still extremely high, and that shows the Great Resignation is still in full swing,” and that “It wouldn’t be a surprise to see that cool down in 2022,” Zhao said. “But that’s not to say we should expect the Great Resignation to disappear overnight.”
So, in essence, it’s a hiring purgatory, isn’t it? For now, it certainly seems like it. However, just perceiving all of this with a different mindset is the first, and most crucial, step in moving out of this unique period in business (and staffing) history.
Here’s the wake-up call: no matter the level of benefits nor the amount of compensation, a business cannot effectively fulfill a worker’s ultimate aspirations without purposeful and meaningful work. There must be a catalyst that drives that realm of joy within a professional’s heart and mind. The Great Resignation is not a fight over money, nor is it a sign that workers have become greedier and are asking for the moon.
This all simply means one thing: the pandemic has shaped our lives in such a way that the personal and professional dichotomy has become intertwined. Workers are people and people are workers. They want purpose. They want joy. They want to earn a living (a nice living) while doing something they love.
There’s a critical reason why we should be looking at The Greatest Resignation much differently. It’s not a war of attrition nor a battle for higher wages, but rather a revolution in which humans are doing everything they can to align their purpose, culture, and journey with the many, many hours they spend at work.
The Future of Work is many things: technology, transformation, work optimization, innovation, collaboration, and, of course, talent. Depending on who you’re talking to, the Future of Work movement’s nexus could be defined as any of those previous attributes, and rightfully so: technology and innovation drive the optimization of how work is done, while the transformation of business leadership translates into an enhanced ability to retain top talent while attracting new skillsets and expertise.
The extended workforce has long been a critical realm within the concept of the Future of Work, fueling a strategic approach towards talent management that has a variety of key benefits ranging from shorter-term engagement, more focused projects and initiatives, access to the world’s deepest skillsets, and the traditional cost savings that have long been associated with this type of labor.
And, speaking of the “traditional” aspects of the extended workforce: the Future of Work Exchange defines this talent as the natural evolution of the contingent workforce, meaning that, at its core, this workforce is still comprised of non-employee talent, however, its impact, value, flexibility, purpose, and accessibility have all progressed to become key elements of the Future of Work movement (even more so than ever before).
There has been so much transformation over the past two-plus years regarding the way work is done, from the absolute domination of remote and hybrid work to massive changes within the realm of business and executive leadership. We’re now two years deep into a pandemic that is finally (hopefully?) just beginning its escape from its “emergency” phase into one that is, again, hopefully more livable. Other aspects of the Future of Work, specifically changes in leadership and the realm of innovation and new tech, have clear pathways ahead of them.
The question remains, then: where does the extended workforce go from here?
The extended workforce of 2022 and beyond is a force that will continue to grow in size, scope, impact, and value. Future of Work Exchange research pegs contingent labor at 47% of the average company’s total workforce, a statistic that is only expected to grow in the months and years ahead. When we’re talking about nearly half of all talent that is found, engaged, and sourced via this realm, we’re essentially discussing a critical piece of the Future of Work puzzle that should be considered the contemporary nexus of all things related to how work is addressed and done.
Consider that business leaders are experiencing the most volatile labor market of their careers, with a dearth of options for filling critical positions as The Great Resignation continues its rampage. And, too, the Talent Revolution is becoming more of a reality for enterprises as workers fight for better conditions, more flexibility, and enhanced benefits. The extended workforce already sits within the crucial inner-workings of the Future of Work movement and will continue to drive value if enterprises:
Perhaps the most interesting facet of today’s extended workforce is the fact that technology and innovation are abound: only several years ago, the technology landscape for managing the contingent workforce focused more on the tactical elements of this realm of talent. Today, it’s a much different story.
Platforms like Utmost are bringing a Future of Work-first focus to how business leverage their non-employee workforce to get work done. Beeline continues to progress its technology to match the evolving needs of HR, procurement, and talent acquisition practitioners. PRO Unlimited (who just made another major move this week) continues to expand its innovative platform philosophy. Prosperix just unveiled its VMS Network solution, which seamlessly connects businesses, talent suppliers, and job candidates together in its unique ecosystem. VMS solutions like Eqip, VectorVMS, FlexTrack, Pixid, and ELEVATE are also offering technological differentiators to the extended workforce solutions marketplace.
WorkSuite has a powerful engine from its Shortlist days (and a business outcome-focused variety of technology), while once-traditional talent marketplaces such as Upwork, Toptal, Bluecrew, and Talmix offer enterprise-grade innovations that represent the fluidity, flexibility, and long-range strengths of the extended workforce and freelance talent.
I had the pleasure of joining SSI People’s Off the Cuff podcast to chat about the Future of Work, “The Great Resignation,” the “Talent Revolution,” and so much more related to the evolving world of work and talent. Hosted by SSI’s Christina Vinson, it was a delight to chat about these topics with EVP of Strategy and Development at SSI, Manny Vidal.
Direct sourcing has dominated discussions around talent, work, and staffing for the past few years because, when executed well, it can deliver incredible value to the greater organization through hard benefits (such as cost savings and a quicker average time-to-fill rate) and soft benefits (greater talent quality, better engagement with highly-skilled candidates, etc.).
As the overall labor market evolves in the wake of rising worker resignations, smart businesses will prioritize the need for deeper assessment and validation of skillsets and place a greater emphasis on the candidate and hiring manager experience. The starting point for most will be to build on their existing direct sourcing capabilities and work to develop Direct Sourcing 2.0 capabilities, such as:
The path to Direct Sourcing 2.0 is also rooted in the idea that data should drive talent-led decision-making. Most next-generation direct sourcing programs leverage AI-driven functionality to enable a more robust picture of available skillsets, improve the matching of available skills with open positions and project requirements, streamline the assessment of candidate skills and expertise, and enhance worker intelligence. The majority of businesses see AI and advanced analytics as a catalyst for Direct Sourcing 2.0 over the next two years.
Ardent Partners and the Future of Work Exchange make the case that an employer’s brand can be a catalyst for talent transformation because it can be used to attract talent and maintain an allure as non-FTE workers shift in and out of enterprise projects. Direct Sourcing 2.0 builds on brand concepts and pushes them to a higher level by using AI and analytics on candidate data to improve messaging, increase support for diversity initiatives, and gain a clearer picture of the worker expertise available in today’s transformative labor market.
Here’s a definition of “The Great Resignation” from old friend Wikipedia:
The Great Resignation, also known as the Big Quit, is an ongoing economic trend in which employees have voluntarily resigned from their jobs en masse, beginning in early 2021, primarily in the United States.
While I understand that Wikipedia is easily editable and can sometimes contain basic misinformation regarding history, politics, etc., what is represented in the above definition is unfortunately a common line of thinking in today’s frenetic world of business.
Even though aspects like “flexibility” and “remote work” are buried in that Wikipedia entry, the focus on economic thinking muddles The Great Resignation into a conversation around employees wanting more financial power as they traverse year three of the COVID-19 pandemic.
Remember, my friends, there’s a much clearer reason for this Big Quit, and it has little to do with money: it’s a “Talent Revolution,” and we’re all witnessing it first-hand as enterprises face staffing shortages, business leaders grapple with new models of working, and workers focus their energy on finding positions that bring value and purpose into their lives.
The Future of Work Exchange has been incredibly bullish about the Talent Revolution over the past few months, and rightfully so: placing the focus for tens of millions of voluntarily resignations squarely on economic factors misses the greater concept at hand…that the modern-day workforce has empowered themselves to transform the symbiotic links between “talent” and “employers,” all in the quest for more flexible, purposeful, and meaningful work.
Does The Great Resignation have economic consequences? Of course, let’s not kid ourselves. Staffing shortages are ravaging the financials of businesses, play a pivotal role in certain aspects of today’s inflation crisis, and, of course, contribute to product and supply chain disruptions across the world. (Also, as a side note: rising energy costs and fuel expenses are another complicated layer to the business arena today, as is the ongoing crisis in the Ukraine and its global financial and supply ramifications, as well.)
But these are consequences of a larger issue, one that has only been exacerbated by a global health crisis that has unfortunately shined a very, very bright light on the inequities and rigidity of today’s workplace and workforce structure. There is an underlying inequity in how workers are treated, how they are paid, how they are provided benefits, and how flexible their roles are considering the tremendous change in the world of talent and work over the last two years.
The Talent Revolution was always on its way; it’s unfortunate that it has resulted in an across-the-board, jarring “Big Quit” that has shaken the way businesses deal with extreme staffing shortages. However, there’s a reason equity, inclusion, better working conditions, and flexibility have become so critical: this is the power the workforce should have.
Every worker deserves a position that serves and aligns with his, her, or their purpose. Every worker deserves the flexibility to attend to personal and private needs and achieve a better work-life integration. And, every worker deserves equitable treatment, safe working conditions, and an inclusive culture that inspires them to thrive, think, speak, and innovate.
Today, the stakes for finding, attracting, and hiring the right talent are higher still, and a literal talent “frenzy” has hiring managers in all industries and geographies struggling to fill key positions. And that was before “The Great Resignation” of 2021-2022 took hold. Now, more than ever, these leaders need to take control of their talent destinies. As a result, direct sourcing has become one of the hottest topics in the world of talent and work.
With an ever-increasing number of talent channels, including digital staffing marketplaces, traditional staffing vendors, professional services, talent networks, and social media platforms, the ability to match project requirements with available skillsets has never been easier. It has also never been more competitive or difficult to hire top candidates. Businesses that harness the power of direct sourcing and talent pools have the ability to develop an agile, extended workforce which can be the key to truly thriving in these evolving times.
In 2021, Ardent Partners and Future of Work Exchange research found that 82% of all businesses felt the challenging times of the past two years increased the demand for extended and non-employee talent. This number reinforces the idea that workforce flexibility (and scalability) are essential links to economic progress in the now-chaotic, hyper-competitive global marketplace. And, in many ways, operationalizing that flexibility/scalability has become a driving force in enabling overall workforce agility. To do so, enterprises can tap into talent pools, marketplaces, clouds, and communities to enhance the work done by the trusted full-time staff; they can also leverage a range of services and other recruiting streams to build a dynamic talent acquisition process that can support crucial enterprise initiatives.
This is why direct sourcing has become such a powerful tool for business leaders today.
Truth be told, even basic direct sourcing programs can drive value through a combination of on-demand, plug-and-play talent, and hard-cost savings. But the pandemic’s impact on the workforce has dramatically accelerated market shifts. Today, talent is scarce and comes at a premium. As a result, workers are demanding greater flexibility from their employers. They are more focused on work-life balance, while also desiring greater independence. Among many things, the “Talent Revolution” indicates a seismic shift in power towards the worker and away from the employer…meaning that businesses require a more powerful, more flexible, and more scalable version of direct sourcing. Enter “Direct Sourcing 2.0.”
Now is the time for “Direct Sourcing 2.0,” the next generation of sourcing strategies that blend innovative solutions with a renewed focus on the candidate experience and an ability to use talent pools to populate the key projects and roles that require expertise and experience. Today’s business climate has accelerated the need for a reimagined approach to candidate engagement. As the market for talent continues to tighten amidst the lingering pandemic and a surging number of resignations, businesses find themselves in a new kind of “war for talent,” one that is far more extensive and complicated than anything experienced pre-pandemic.
