workforce trends
driving technology.
Although digitalization in the workplace
is one of the key driving forces behind the
proliferation of technology, it's certainly not the only
one. Big shifts are occurring in the world of work,
and employers are turning to tools to help them
adapt and accelerate their strategies based on
these trends.
A clear example is the growing use of contingent
labor in its various forms, including temps,
contractors, gig workers and statement of work
(SOW) talent. But while companies are becoming
more agile through the increased use of flexible
talent, at the same time, workforce planning
becomes more complex, creating new challenges
for talent leaders. As a result, employers are turning
to new technologies to address these challenges.
For instance, Samsung, whose head of strategic
sourcing created an on-demand platform to place
gig and freelance workers in the organization,
is achieving significant cost savings and faster
onboarding as a result.
Even as solutions developers focus on holistic
platforms that encompass all worker types, some
have rolled out add-ons for now. The recent
emergence of human cloud platforms, otherwise
known as freelancer management systems (FMS), is
an important milestone. These technologies allow
employers to directly source from a large pool of
independent workers, which can mean faster time
to hire. These platforms will become increasingly
important as the number of freelancers and gig
workers grows. McKinsey estimates that 20 to 30%
of the working-age population in the U.S. and EU-15
are engaged in independent work, which accounts
for as many as 162 million people. Already, 44% of
those who participated in the 2017 Talent Trends
survey say they are making moderate to significant
investments in FMS technology.
Another trend driving technology is greater adoption
of automation and robotics. Perhaps the biggest
evolutionary step in labor utilization in decades,
the implementation of these technologies in the
workplace has many on edge and others excited.
For decades, robots and automation made their
way into front- and back-office activities, but recent
advancements demonstrate the potential to take over
many more tasks. High-profile developments such as
self-driving vehicles and delivery drones are opening
up opportunities for a variety of businesses. These
innovations can perform tasks humans are incapable
of, such as higher throughput, more consistent
performance and, in some cases, smarter decisions
by using analytical data. The rise of intelligent process
automation (IPA) has the potential to automate 50 to
70% of tasks, according to McKinsey.
Most (84%) Talent Trends respondents believe AI and
robotics will have a positive impact on their business.
Nearly half (48%) are already increasing budgets for
robotics, while just 10% say they have decreased
spending for it in the past 12 months. Among
technology challenges for their organization, a mere
5% view robotics and 7% view automation and machine
learning as their biggest pain point. By contrast, 22%
say talent scarcity is their biggest pain point.
Beyond the rise of robotics, globalization, mobile
technology and social networks are reinventing the
idea of the workplace. Cloud platforms, freelance
portals and other developments have removed
geographic borders and created an always-on
environment, with widening access to talent, around
the world. Sites such as twago, Toptal and TaskRabbit
offer up a wealth of independent talent. At the same
time, Oracle, SAP and Workday have now become
the leading human capital cloud platform providers,
shifting the way talent management is undertaken
from the previous on-site software model to a globally
connected one. LinkedIn, Facebook and Twitter are
now invaluable tools for reaching customers, talent
and influencers.
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