Exploring the evolving landscape of work and the key trends shaping the future of work. We touched on this in our recent webinar Building and Managing a Flexible Workforce in the Digital Age. As FTE as a percentage in the overall workforce are decreasing what can organisations expects next, and what i key to keep in sight to be a Agile organisation being able to manage growth?
The future of work is witnessing a significant rise in the number of non-employees contributing to the workforce. Companies are increasingly outsourcing tasks not only on the periphery of their business but also core functions. This shift towards utilizing non-employees has become mainstream, with outsourcing and offshoring becoming common practices.
With the advancements in technology and communication, companies can now leverage the expertise of individuals from anywhere in the world. Nearshore locations are being used for cost benefits while maintaining geographical proximity, and full offshore arrangements are being explored for maximum cost advantage. The flexibility and cost-effectiveness of utilizing non-employees have made it a popular choice for businesses.
Furthermore, the younger generations are opting for freelance work as a preferred mode of employment. The rise of the gig economy and the recent shift to remote work during the Covid-19 pandemic have accelerated this trend. Freelancers have the flexibility to choose their projects and work on their terms, which appeals to many individuals.
However, this shift towards non-employees presents challenges for talent acquisition teams. They struggle to find niche candidates with the specific skills required for certain roles. Moreover, convincing these candidates to seek employment with the company can be a daunting task. Companies need to adapt their recruitment strategies to attract and retain the best talent in this changing landscape.
Outsourcing and offshoring have evolved from being peripheral activities to becoming mainstream practices in the business world. Companies no longer limit outsourcing to non-core functions but also delegate core tasks to external service providers. This strategic approach allows businesses to focus on their core competencies while leveraging the expertise and cost advantages offered by outsourcing and offshoring.
The availability of skilled professionals globally has made outsourcing and offshoring viable options for businesses. Nearshore locations offer cost benefits while maintaining proximity, making them an attractive choice for companies looking to tap into specific talent pools. On the other hand, full offshore arrangements provide maximum cost advantage by utilizing resources from lower-cost regions.
By embracing outsourcing and offshoring, companies can optimize their operations, reduce costs, and access specialized skills that may be scarce in their local talent pool. However, effective management and communication are crucial to ensure the success of these arrangements and maintain productive partnerships with external service providers.
Freelancing has gained immense popularity among individuals, particularly in the younger generations. The gig economy has provided a platform for freelancers to showcase their skills and connect with clients worldwide. The recent shift to remote work during the Covid-19 pandemic has further accelerated this trend, with more people opting for the flexibility and autonomy that freelancing offers.
Freelancers have the freedom to choose their projects, work on their own schedule, and have control over their work-life balance. They can explore diverse opportunities, collaborate with different clients, and build a versatile portfolio. This flexibility and independence have appealed to many individuals, especially those seeking a better work-life integration.
However, freelancing also comes with its challenges. Freelancers need to continuously market themselves, manage their finances, and navigate the uncertainties of acquiring new clients and projects. Building a strong professional network and maintaining a reputation for delivering high-quality work are essential for long-term success in the freelancing industry.
The field of talent acquisition is undergoing a significant transformation with a shift towards skills-based hiring. Traditionally, hiring has been focused on job roles or job families, where candidates are selected based on their qualifications and experience in specific positions. However, this approach is evolving to prioritize skills over predefined roles.
Skills-based hiring emphasizes a candidate's abilities, competencies, and potential rather than their past job titles. It allows companies to identify individuals with transferable skills and a growth mindset, enabling them to adapt to changing roles and responsibilities in a dynamic work environment. This approach promotes diversity and inclusion by opening up opportunities for individuals from non-traditional backgrounds.
Advancements in HR technology have facilitated skills-based hiring by providing tools and platforms to assess and match candidates' skills with job requirements. This shift in hiring practices is expected to create a more agile and adaptable workforce, capable of meeting the evolving demands of the future of work.
The future of work holds exciting possibilities, including the integration of generative AI, the establishment of new social contracts, and the emergence of AI agents in the workforce. Generative AI, a subset of artificial intelligence, has the potential to revolutionize various industries by creating intelligent systems that can generate content, solve complex problems, and assist humans in their work.
Sam Altman, CEO of OpenAI, has recently spoken about the need for a new social contract between individuals and the state in light of the rapid technological advancements and their impact on employment. As the nature of work changes, it becomes essential to redefine the relationship between workers, employers, and the government to ensure a fair and inclusive future.
Another exciting (some would say terrifying) possibility is the entry of AI agents, or digital humans, into the workforce. NVIDIA CEO Jenson Huang has discussed the potential of AI agents to perform tasks traditionally carried out by humans, such as customer service, data analysis, and even creative work. These AI agents have the potential to augment human capabilities, enhance productivity, and reshape the dynamics of the workplace.
As these future possibilities unfold, it is crucial for individuals, organizations, and policymakers to navigate the ethical, social, and economic implications and ensure that the benefits of technological advancements are harnessed responsibly for the betterment of society. At FaaST Solutions we are going to be monitoring and writting on this topic on our blogs and social media.
Back in 2016 we started using the term "The multichannel workforce" where SAP Fieldglass facilitated non employees coming into the workforce and performing work for some of the largest firms in the UK and elsewhere. Traditional staffing firms, Consulting firms large and small, Freelancers and gig-workers Galore. Back then i dont think anyone expected to see firms like Artisan.co or X11.ai in their supplychain supplying Digital Humans alongside other types of talent. Where do you see this going next? We will be sharing some of what we see with you going forward in our blogs as well as on Linkedin and X/Twitter