The Tech & Digital Contractor market is an ever evolving one, much like the skills required to work within it.
Recently it has been a challenging environment with all the ups and downs of the fairground, culminating in the last 12 months with a scarcity of opportunity and stagnant day rates. KPMG’s CEO said hirers face a “fiscally restrained” Spring Statement 2025, but there are some aptly timed ‘green shoots’ appearing.
ContractorUk.com states “For the first time since August 2024, the numbers on the REC’s index for temporary tech roles last month pointed upwards… The IT contractor jobs market carved out a potential foothold for growth in February 2025.”
Changes to the National Living Wage, Employer’s National Insurance and subsequently, The Employment Rights Bill are contributing to a cautious outlook, but technical advancements aren’t waiting around for anybody.
Organisations are increasingly under pressure to adopt AI functionality to remain competitive and the UK Government has clearly set out their ambition under the AI Opportunities Action Plan. This aims to harness the power of AI to transform various sectors and improve the quality of life for citizens.
Many employers do not currently have the internal talent to scope, lead and deliver in this space and they are likely to look to the contractor population.
Talent in Demand
Unsurprisingly AI skills top the list of those most in demand in the contingent market, closely followed by (and likely in conjunction with) cyber security, all-things data, cloud computing and python development.
Artificial Intelligence (AI) and Machine Learning: These skills are crucial for developing intelligent algorithms and models that drive automation and predictive analytics. The technology is moving so quickly that there are few true experts in the field; all and any commercial exposure to AI will be in demand.
Data Science and Analytics: With the increasing amount of data being generated, professionals who can analyse and derive insights from data are in high demand.
Cybersecurity: As cyber threats continue to evolve, skills in intrusion detection, risk assessment, and data protection are essential for safeguarding digital assets.
Cloud Computing: Expertise in cloud platforms and services is vital as more companies migrate to cloud-based systems.
DevOps and Automation: These skills help bridge the gap between development and operations, improving efficiency and collaboration.
Blockchain: Beyond cryptocurrencies, blockchain technology is being used in various industries for secure and transparent transactions.
In the last year many organisations have evolved to hybrid working models. This has been mandated to permanent employees and therefore frequently includes contractor populations. There will still be some fully remote opportunities, or potential exceptions based on skills v needs – but realistically, most contract opportunities moving forward will require some onsite presence.
Soft Skills Revolution
One of the most interesting aspects of the GenAI ‘revolution’ is the recognised requirement for a range of soft skills in employees within the field. These skills include critical thinking, problem-solving and collaboration alongside the ability to communicate the strengths and weaknesses of using artificial intelligence, as well as when not to use it.
Qualities like creativity, persistence and decision-making will grow more and more important as AI and the very nature of the professional world continues to evolve. While technical skills will always prove important, intangibles like these can often make the difference between two equally skilled candidates.
Non-Traditional Role Parameters
In the last 12-18 months within the UK Tech & Digital market, there has been an increased demand for candidates with blended skill sets—roles that now often combine expertise in multiple disciplines.
For example, there is an upward trend in full stack development as opposed to front or back-end disciplines; DevOps processes (such as CI/CD, Kubernetes) added to support or development roles; Data aligned roles requiring significant Python or R coding; and most needs requiring diverse levels of cloud storage or security capabilities – stand-alone Cloud Engineers are now a rarity.
Advancements in using AI to streamline hiring processes have also driven a ‘skills-first hiring” trend, led by the Tech Sector and including companies such as Google and Apple. Approximately 50% of technology job postings no longer require degrees and 80% of employers prioritise demonstrated abilities over academic credentials.
Forbes writes the “These organizations recognize that conventional degree requirements often exclude qualified candidates who’ve developed valuable skills—particularly in high-demand areas like machine learning, data science, and automation—through alternative means.”
Legacy Alive & Well
The headlines will always focus on the shiny new toys (not taking away from the leaps forward GenAI has brought to the world) but organisations can’t just wipe their tech estate slate clean and start again.
Financial Services and Public Sector bodies offer contracting opportunities for those underpinning and therefore critical legacy tech stacks, on which new functionality is built. New arrivals into the contracting market will not have these skills, and expertise will become a commodity in demand.
IT Contracting as an Opportunity
Robert Half stipulates that “Contract work will become a significant employment model in 2025, encompassing freelancing, right-to-hire positions, and on-call work. Companies increasingly use contractors to fill critical skill gaps, especially in AI, technology, and marketing, with about 40% of managers planning to use contract professionals for key projects.”
Contingent Tech & Digital offers scope to broaden expertise – no client has the same tech stack – and gain valuable knowledge and differing industry experience. Contractors have always needed to stay relevant and therefore employable: with the speed of technical advancement this is now more common in permanent roles and therefore even more critical. An appetite to evolve, a curiosity to learn, and a willingness to step outside traditional role parameters to gain new skills, will make you stand out from the crowd.
And on that final note (with a nod to the volume of AI generated CVs and applications), to maximise your success, ensure your online persona and/ or CV are representative of skills and clear on capability; if they are technical, include the hobbies and online hangouts evidencing your interests; and build credibility with TA, Recruiters and Hiring Managers and leverage your professional network.
So, the roller coaster may be stomach churning at times, but it is fast, and it is thrilling, and few really want it to end!
The landscape of tech talent acquisition isn’t just shifting; it’s doing a full-on metamorphosis, like a caterpillar into a butterfly, but with more data and fewer wings.
Economic pressures, tech leaps, and workplace evolution have joined forces like an Avengers team-up, creating a recruitment battlefield where only the sharpest strategies will survive.
To not only survive but thrive in this environment, companies must adopt forward-thinking strategies that resonate with the unique needs and aspirations of today’s tech professionals. In this exploration, we’ll dive deep into the forces reshaping tech talent acquisition, offer thought-provoking insights, and provide actionable strategies for staying ahead of the curve.
Evolving Market Dynamics: Adapting to New Realities
In today’s tech landscape, demand for talent is as relentless as a developer in crunch mode, even with the economy playing hopscotch. However, the profile of the ideal tech candidate and the methods to attract them have transformed significantly.
Economic Pressures and Job Security
The tech industry, once the golden child of stability, has hit some turbulent times, with layoffs and restructures shaking up the job market. This instability has shifted candidate priorities. Today’s tech professionals aren’t just chasing the highest salaries; they’re after roles that offer job security, meaningful work, and alignment with their personal values. Companies that can clearly communicate their commitment to these attributes stand out in a crowded market—just ask Gartner, who’s been preaching this for years.
Supporting this, LinkedIn’s 2024 Workforce Trends report shows a marked increase in the importance of job security and alignment with personal values, especially among younger tech pros. GitHub’s 2024 State of the Octoverse echoes this, highlighting that developers are increasingly drawn to companies with strong remote work policies and transparent communication practices. If your company isn’t on board with these evolving expectations, you might find yourself waving goodbye to top talent.
Workplace Evolution: Beyond Remote and Hybrid
The pandemic might have been the catalyst for remote and hybrid work models, but the conversation has since evolved. The future workplace is shaping up to be a blend of physical and digital environments, where flexibility is the rule, not the exception.
Companies that create work environments integrating autonomy with connectivity are attracting top tech talent like bees to honey. Much like how Google and Microsoft have pioneered flexible work environments, companies embracing similar models see a 22% spike in retention, according to LinkedIn’s 2024 Workforce Trends. If these tech giants are the trendsetters, following suit might not just be a good idea—it could be a survival tactic.
Recent research from Deloitte backs this up, noting that over 50% of tech talent prefers a remote-first model, with many willing to leave their current roles if this flexibility is revoked. Additionally, meaningful work has become a non-negotiable for retaining top talent. Promoting the purpose behind the work itself, rather than just the work, is increasingly crucial—because today’s tech talent isn’t just working for a pay check; they’re working for a cause.
Technological Advancements: The New Frontier in Recruitment
Emerging technologies like AI, VR, AR, and the Metaverse are not only shaping the types of roles in demand but are also fundamentally transforming how companies connect with potential hires.
Harnessing the Power of Emerging Technologies
As companies seek innovative ways to attract and engage tech talent, they’re increasingly turning to a blend of cutting-edge technologies and creative platforms. In-game advertising and platforms like Twitch are becoming powerful tools for reaching potential candidates in their natural habitats. By placing job openings within popular games like Fortnite or sponsoring streams, companies can connect with a younger, tech-savvy audience in a non-intrusive way—perfect for roles that demand a deep understanding of digital culture.
Simultaneously, AI and machine learning are revolutionizing recruitment by enabling more accurate and efficient candidate matching. Gartner reports that organizations using AI-driven recruitment tools see a 30% improvement in hire quality and a 25% reduction in time-to-fill.
However, Otta’s latest analysis points out that while these innovative platforms are gaining traction, traditional recruitment channels like LinkedIn and Stack Overflow still dominate when it comes to sourcing senior and specialized tech roles. The takeaway? Use these new tools to enhance, not replace, your existing recruitment strategy.
Gamification and hackathons are also rising stars in the recruitment process. By integrating gamified challenges or hosting hackathons, companies can identify top talent and assess how candidates tackle real-world problems. However, it’s crucial to ensure these challenges are appropriately designed for the audience. If a task is too simple, it may insult the intelligence of experienced candidates; if it’s too complex, it could alienate less experienced participants.
To strike the right balance, tailor your challenges to match the skill levels you’re targeting, offering different levels of difficulty or focusing on specific competencies. LinkedIn notes that 65% of tech professionals are more likely to engage with companies offering such innovative recruitment processes. So, if you’re not gamifying your recruitment yet, you might want to level up—but remember, the key to success is hitting the sweet spot in challenge design.
Redefining the Tech Candidate Persona: Understanding the New Tech Professional
Today’s tech professionals are more diverse, values-driven, and experience-focused than ever before. To attract and retain this new breed of talent, companies must go beyond traditional recruitment approaches and truly understand the evolving personas of tech workers.
Diverse Backgrounds and Unique Expectations
The tech workforce is becoming increasingly rich in diversity, with growing representation from women, ethnic minorities, and neurodivergent individuals. This expanding diversity brings a wealth of perspectives and values that strengthen the industry. For instance, LinkedIn research highlights that women in tech often prioritize flexible working conditions and a supportive company culture, while men may place greater importance on salary.
These are not just expectations but core values that shape how individuals choose where to work. Embracing and understanding these differences is essential for developing recruitment strategies that resonate—because in today’s tech landscape, one-size-fits-all just doesn’t fit anymore.
Additionally, Stack Overflow’s Developer Survey underscores the importance of work-life balance and the desire for continuous learning opportunities, especially among developers. Companies that can offer growth opportunities alongside a balanced work-life experience are more likely to attract and retain top talent in this competitive landscape. So, if you’re not already offering this, you’re missing out on a significant chunk of the talent pool.
Experience Over Education
The shift from valuing formal education to prioritizing practical experience and demonstrable skills is reshaping tech recruitment. This skills-based hiring approach is gaining traction across the industry, with companies increasingly assessing candidates through real-world tasks rather than relying solely on traditional qualifications. Everest Group’s research shows this trend is particularly evident in roles like DevOps Engineers and Data Analysts, where practical expertise is paramount. In other words, if you’re still asking for degrees over demonstrated skills, you might be sifting out your best candidates.
Values-Driven Employment
Tech professionals today seek more than just a paycheck—they want roles that align with their personal values. Diversity, equity, inclusion (DE&I), sustainability, and ethical business practices are central to their decision-making process. Companies that can authentically demonstrate their commitment to these values will stand out in the competitive tech talent market.
A recent report by SourceCon found that 78% of tech professionals wouldn’t consider a role at a company whose values didn’t align with their own. So, if your company’s values aren’t front and center, it’s time for a rebrand—because today’s talent wants to know what you stand for.
Emerging Trends in In-Demand Tech Roles for 2024
The tech job market continues to evolve, with specific roles in high demand as organizations navigate the complexities of digital transformation. According to Staffing Industry Analysts (SIA), roles such as DevOps Engineers, Solution Architects, and Cloud Engineers are among the most sought-after, reflecting the ongoing shift towards cloud-based infrastructure and the need for seamless IT operations.
Additionally, as noted in recent SourceCon reports, emerging roles like AI Ethics Specialists and Data Privacy Officers are becoming critical as companies navigate the ethical implications of AI and data usage. The demand for Data Engineers and Data Analysts remains robust as companies increasingly rely on data-driven decision-making to guide their business strategies.
Continuous Workforce Planning
A critical development in tech talent management is the shift towards continuous workforce planning. Traditional, static approaches are being replaced by dynamic models that leverage predictive analytics to forecast talent needs. This approach not only helps in anticipating and addressing current skill gaps but also positions companies to better meet future challenges. If you’re not already using continuous workforce planning like industry leaders Google and Amazon, you might be setting yourself up for a rude awakening. These strategies are not just enhancing productivity by 10%—they’re redefining what efficient tech talent management looks like.
Conclusion: Shaping the Future of Tech Talent Acquisition
With tech giants constantly upping their game, the competition for talent is more intense than a coding hackathon. The strategies of yesteryear? As outdated as floppy disks. The future belongs to those who innovate, predict trends, and aren’t afraid to break the mould—just ask the folks at Stripe and GitHub, who are already shaping tomorrow’s workforce.
As you move forward, remember: staying ahead of the curve isn’t just about keeping up with trends—it’s about setting them.
The winners in this tech talent arms race won’t just be the ones who adapt—they’ll be the ones who make the rules. Companies must continuously reassess their talent acquisition strategies and be open to adopting new technologies and approaches as the landscape continues to evolve.
Because in the world of tech, if you’re not setting trends, you’re following them, and no one ever became a leader by playing follow the leader.
To thrive in the evolving tech landscape, companies must not only adapt to the present but actively shape the future by embracing innovation, flexibility, and purpose-driven strategies that resonate with today's tech professionals
What did I conclude from the recent SHRM ’24 Annual Conference & Expo? In the face of technological change, let’s not be fearful. Be aware of your company’s AI policy and thoughtful about change. Now is the time to iterate and create incremental changes that benefit your organization. Don’t be nervous about how tech and AI are transforming the hiring experience.
If you missed our session, here are some key highlights:
Automation vs. Artificial Intelligence
In today’s world of changing technologies, there is often confusion between AI and automation. We clarified the difference and provided practical examples for the audience. For instance, a Domino’s Pizza Tracker is considered automation, while voice-to-text technology like Siri is considered AI.
What’s Happening in the TA Tech Space?
After exploring the nuances between AI and automation, we focused on the TA Tech space, outlining what is working and what isn’t. Below is a myth-busting diagram we shared:
There was a lot of discussion about personalizing experiences and how technology can enhance the recruitment process. We highlighted the benefits of customization for candidates and hiring managers, emphasizing transparency. Just as consumers expect transparency, we aim to recreate that expectation in the TA space.
Focus on Solving Problems to Foster Innovation
Be inspired by the tools available. More than 50% of companies want their ATS to provide more capabilities than it currently does. The average number of tools managed by teams is around 10, specific to recruitment. Integration barriers present significant challenges for talent teams today. Additionally, an over-reliance on HRIS without sufficient workflow automation is problematic. If your HRIS lacks workflow capabilities, it’s time to explore new solutions.
Identify granular use cases to address your challenges and assess which tools can help. Many tech companies claim to offer features, but they may not be applicable to your needs. Focus on the problems you are trying to solve, unpack the issues, and then explore different tools and recruitment experiences to identify key moments that matter. Determine if there are data points that can enhance these experiences and solve two or three specific issues.
Moments that Matter
We concluded the session by discussing seven steps to integrate automation and AI into your hiring decision-making process. A central point we emphasized is that it’s okay not to undertake an entire transformational change. Instead, incremental or selective changes are a great starting point. Maintaining an open dialogue within your organization about change and talent technology, testing creative approaches, and staying agile are key to progress and optimizing the hiring experience.
Figuring out what your next 6-12 month hiring roadmap looks like can be daunting. So many variables to consider, so many new technologies, you might feel pulled in various directions. The key is not to become overwhelmed by the array of twists and turns in the HR arena, but rather to lean-in to where you see your workforce in the future and plot the steps to get there.
With every industry showing unique needs and changes, here’s a snapshot of some of the interesting directions companies are headed in the coming months.
Energy, Engineering and Industrials
With a shift towards green energy, new legislation in this sector will promote more green skills as workforces evolves to become sustainable and decarbonized.
Investment Banking
As banks consider their internal structure, they are analyzing how technology will provide more agility to their hiring decision making. In highly regulated environments there is more of a hesitation around new technologies like AI. But some are interested in piloting technology and new tools to drive efficiencies where it is seamless to do so.
Construction, Healthcare, Retail
In high volume, hourly hiring – such as in the construction industry – there is a focus on leveraging a skills-based approach to determine the best fits for roles. Quality of hire remains supreme in this area of sourcing and recruiting.
Organizations will be looking to hire more contingent labor workers as they bounce back from lower hiring volumes. A continued uncertain economic landscape across many sectors is creating a greater focus on creating flexibility in their employee make-up.
Food and Hospitality
In California there has been a new minimum wage applied to the fast food sector, now at $20 per hour. An interesting development that will likely have consequences to other sectors and parts of the country. This presents an additional layer of complexity to an already evolving talent acquisition landscape.
Technology
Companies are exploring how to source talent for supporting and driving AI technologies. There has been an increasing interest in looking into the architect and planner roles involved in implementing and setting the stage for new AI technologies. Establishing a gameplan ahead of AI usage is a strategic step that is critical to ensure compliance is met and tools are utilized properly.
Pharmaceuticals and Life Sciences
Organizations are looking to their location strategy to reduce cost and drive scalability/agility – with India being an area of interest for some employers.
An important thing to think about on your talent road ahead is what your destination will look like. With every hiring destination looking a little different, each industry is going to require different TA needs and will need to adjust to the changing economic and technological landscape differently.
In today’s data-driven business world, the role of a Chief Data Officer (CDO) is more critical than ever. Data is the lifeblood of modern enterprises, capable of propelling them to new heights of success—if it’s harnessed and utilised effectively. With this in mind, the debate is heating up: should a CDO have a strategic seat at the Executive Committee (ExCo) level? This post will dive into why having a CDO at the ExCo table isn’t just beneficial; it’s essential for boosting a company’s profitability and efficiency.
The Power of the CDO in Driving Business Success
The CDO emerges as a linchpin in the orchestration of business triumph through the strategic application of data. Their role extends far beyond mere data management; it is about transforming raw data into actionable insights that guide the steering of the corporate ship. By possessing an in-depth grasp of the company’s data assets and their potential leverage points, the CDO equips the organisation with the foresight and agility needed to navigate the competitive business seascape.
In this realm, the insights gleaned from comprehensive data analysis are not just numbers on a page; they are used to inform strategic planning. These insights illuminate opportunities for increased profitability by identifying areas where operational efficiencies can be augmented and decision-making processes can be refined. The strategic integration of data analytics into business planning enables organisations to anticipate market trends, understand customer needs more deeply, and respond with precision to competitive pressures.
“Nowhere is that more evident than how organisations strategise, understand and interpret data, with the right balance of people and technology critical to unlocking its full potential. The CDO’s role is integral here, equipping the business with the knowledge, insights and confidence needed to drive business strategy.” Joey Jegerajan, PwC, Chief Data Officer Business Strategies & Innovation
The unique value proposition of the CDO lies in their ability to bridge the gap between data science and business strategy. This synergy drives a data-centric approach to problem-solving and innovation, ensuring that every decision is underpinned by robust data analysis. Such an approach fosters a culture of informed decision-making, where every business move is both strategic and data-driven.
Moreover, the involvement of the CDO in strategic planning elevates the role of data from a supporting function to a cornerstone of corporate strategy. This shift in perspective ensures that data is not just collected, but is systematically analysed and translated into actionable strategies that propel the company forward. In essence, the power of the CDO in driving business success lies in their ability to turn data into a strategic asset that underpins every facet of organisational excellence, heralding a new era of data-driven decision-making.
The Broad Stakeholder Base of the CDO
The role of the Chief Data Officer embodies the essence of multidisciplinary influence, stretching its roots into every corner of the organisation it serves. This wide-ranging impact arises from the CDO’s responsibility to engage with a diverse array of internal stakeholders, encompassing both the luminaries of the front-end, those orchestrating customer-facing strategies, and the guardians of the back-end operations, alongside the architects of the technology teams. This extensive network of stakeholders presents a unique challenge for CDOs, necessitating a profound level of strategic finesse and interpersonal acuity to harmonise the myriad interests and perspectives into a coherent data strategy.
“Successful CDOs find business leaders — and parts of the business — who already appreciate data to a substantial degree, and who can be partners in providing data-driven value”Havard Business Review
Navigating this intricate web of relationships, the CDO endeavours to foster a culture where data is not just an operational asset but a strategic cornerstone, driving forward initiatives that span the entire organisational spectrum. Without a strategic seat at the ExCo level, however, the potential for CDOs to effect transformative change is significantly hampered. The absence of direct access to the ExCo not only constrains their ability to advocate for the strategic value of data across all organisational levels but also limits their influence in steering the company towards a more integrated and data-informed future.
In essence, the broad stakeholder base of the CDO underscores the imperative for their inclusion at the ExCo table. It is here, at this nexus of executive decision-making, that the CDO’s vision for a data-driven organisation can be most effectively articulated and championed. The role demands more than mere technical acumen; it requires a leader capable of transcending departmental boundaries to weave data into the fabric of the company’s strategic ambitions. The CDO, in wielding this comprehensive stakeholder engagement, not only illuminates the path to data maturity but also ensures that every stride taken is in lockstep with the broader objectives of the organisation.
Making the Case for CDOs at the ExCo Level
The proposal to embed a Chief Data Officer within the Executive Committee heralds a profound shift in organisational dynamics, recognising data as the linchpin of modern business strategy. This elevation transcends traditional structures, positioning the CDO as a key influencer in the strategic discourse at the highest level. Such a move is emblematic of an organisation’s commitment to treating data as a fundamental asset, integral to its strategic blueprint and operational ethos.
In the contemporary business milieu, where data’s omnipresence and potency are undisputed, the absence of a CDO at the ExCo table represents a missed opportunity to harness this resource’s full strategic potential. The inclusion of a CDO amongst the executive ranks is not merely about elevating a role; it is about embedding a data-driven mindset at the core of the organisation’s decision-making process. It is an acknowledgement that data, with its multifaceted insights into customer behaviour, operational efficiency, and market trends, can significantly shape the strategic direction of the company.
“The CDO should ensure that their work is supporting CxO’s objectives and overall business strategy….the CDO should also look to build a strong relationship with the CEO, as it will help to secure buy-in…” Deloitte, UK Chief Data Officer Report 2023
The presence of a CDO at the ExCo level ensures that data strategies are not siloed or marginalised but are integral to the broader business strategies. This integration facilitates a seamless alignment of data initiatives with the company’s objectives, ensuring that data-driven insights inform all aspects of business planning and execution. The CDO, with their unique blend of strategic acumen and data expertise, becomes instrumental in identifying and capitalising on opportunities for growth, innovation, and competitive differentiation.
Moreover, this strategic alignment amplifies the organisation’s agility, enabling it to navigate the complexities of the digital age with more nuanced and informed responses to emerging challenges and opportunities. It ensures that data does not merely support business strategies but actively shapes them, driving the organisation towards unprecedented levels of efficiency, innovation, and profitability.
Transforming Data into Profit
For those navigating the complexities of leveraging data towards enhancing business efficiency and decision-making, the appointment of a CDO at ExCo level emerges as a pivotal strategy. This strategic move transcends the traditional view of data as merely a technical commodity, positioning it as a core asset that is instrumental in driving organisational profitability. The integration of a CDO within the ExCo underscores a profound recognition of data’s potential to catalyse innovation, refine customer engagement strategies, and streamline operational processes.
By instilling a data-centric ethos at the helm of strategic planning, businesses can harness the nuanced insights derived from their data landscapes to identify new market opportunities, enhance product offerings, and deliver superior customer value. This approach not only amplifies the strategic agility of the organisation but also fosters a culture where data-driven insights form the cornerstone of every business initiative. The role of the CDO, therefore, extends beyond the realms of data governance and analytics; it embodies the strategic vision to mould data into a tangible asset that propels the company towards achieving unprecedented levels of efficiency and market competitiveness.
In essence, the elevation of a CDO to the ExCo level is a testament to an organisation’s commitment to embed data at the core of its strategic blueprint. This alignment not only fortifies the company’s competitive stance in a data-rich landscape but also paves the way for transforming data into a key driver of profitability and business success.
Are you facing the classic tech conundrum? Best of breed or all-in-one?
Temptation of Best of Breed: Picture this, you are browsing the HR tech marketplace, there it is, the shiny, new best-of-breed tool that promises to revolutionize your talent acquisition process. It’s like love at first sight, except with software. You can’t help but imagine the possibilities. But before you swipe right, consider this..do you really need another tool in your tech toolbox?
The Allure of Suite Life: On the other hand, there’s the allure of the all-in-one-suite- the Swiss Army knife of HR tech. It’s got everything you could possibly need, all neatly bundled into one package. It’s convenient, it’s efficient, and it’s oh-so-tempting. But convenience come at the cost of customization and innovation?
The Comedy of Errors: Let’s face it, sometimes our tech stacks resemble a bad sitcom -full of miscommunications, misunderstandings and missed opportunities. We invest in the latest and greatest tools, only to realize that we’re not quite sure how to use them to their full potential. It’s like buying a fancy espresso machine and only ever using it to make regular coffee. What a waste?
The Power of Optimization: But fear not, for there is hope! Instead of constantly chasing after the next big thing, why not take a step back and optimize what you already have? It’s like giving your old car a tune-up instead of splurging on brand new one. With a little TLC and some training, you might just discover hidden gems within your existing tech stack.
The Bottom Line: So, what’s the verdict? Best of breed or suite life? Well, the truth is, there no one-size-fits-all answer. It depends on your organization’s unique needs, goals and budgets. But before you make any rash decisions, take the time to evaluate your current tech stack. You might be surprised by what you find lurking beneath the surface. In the end, whether you choose to go best of breed or stick with the suite life, just remember one thing, it’s not about having the flashiest features – it’s about using technology to empower your team and drive real, meaningful change.
Need help finding the right HR tech? Explore tips and trends on AMS Verified, a free digital resource helping leaders navigate the technology market.
As the challenges of recruiting the right talent continue to escalate, it is evident that these hurdles are only going to become more complex. Recently, I had the opportunity to speak with talent leaders in India to understand how they are navigating this increasingly demanding talent landscape.
It is apparent that companies must adapt and innovate to keep pace with the evolving job market. This includes implementing skills-based practices and fostering internal mobility. Additionally, optimising technological infrastructure, considering strategic outsourcing, and empowering recruiters to act as strategic advisors, are some critical steps towards achieving success in this dynamic environment.
Recently, AMS India hosted a conversation with Bill Pelster, Co-founder of The Josh Bersin Company, joined by talent leaders in two locations Bangalore & Mumbai. During our session, Bill and I explored the rapidly evolving talent and technology landscape, with a particular focus on the transformative impact of artificial intelligence (AI).
Navigating the shift
Globally, we are witnessing a persistent labour shortage, signalling a notable transformation in the employer-employee dynamic. An important element that has changed in the talent market is that we have very quickly moved from a talent surplus market to a talent shortage market. This shift heavily favours employees, accentuating their position of power in many parts of the world. Failing to recognise this fundamental change risks overlooking a crucial aspect of the evolving landscape.
Secondly, organisational reinvention is becoming widespread across industries. Large organisations like Disney and Netflix, are actively transforming their identities to adapt to evolving market demands.
Another critical theme revolves around the transformative impact of AI. Over the past year, AI’s impact has become increasingly pronounced. Those who underestimated its potential to revolutionise various aspects of business were at risk of being left behind. Despite the challenges it presents, understanding and embracing AI’s capabilities is essential for maintaining competitiveness.
Employees are increasingly vocal about their expectations and preferences, making it important for organisations to transition from traditional employee experience models to a focus on employee activation. This approach requires companies to respond promptly to employee signals and adapt strategies accordingly, similar to how consumer product companies react to market demands.
Redefining recruitment
Traditional recruitment methods are increasingly inadequate against the backdrop of today’s evolving business environment. Organisations must embrace a more holistic strategy that emphasises on internal mobility, upskilling, reskilling and reinventing to meet complex business objectives effectively.
AMS’s innovative approach has garnered recognition, illustrating the importance of aligning talent strategies with broader organisational goals. Considering the underlying dynamics, it is crucial to influence the global market, particularly amidst ongoing debates about recession and job growth.
Despite headlines suggesting job losses, the reality is more nuanced. Job openings are often swiftly filled, reflecting a seismic shift in global demographics. This presents significant challenges for talent acquisition professionals and highlights the need for innovative approaches to address evolving workforce dynamics.
Traditional notions of lifelong employment within a single industry are replaced by a new paradigm where individuals prioritise experiences and versatility over long-term loyalty to a single employer or industry. This shift is particularly pronounced among younger generations, who are more willing to switch jobs in pursuit of fulfilling experiences.
An analysis of LinkedIn data reveals a remarkable trend: nearly two-thirds of job changers are now switching industries, reshaping traditional recruitment norms. Recruiters are urged to adopt a skills-based approach, acknowledging that conventional boundaries between industries are becoming less relevant as skill sets continue to evolve.
In response to these challenges, HR and TA professionals must adopt a holistic approach to talent management. This includes upskilling and reskilling initiatives to align with evolving job demands, and actively encouraging open conversations about career transitions within the organisation. Instead of defaulting to mass layoffs, organisations should explore opportunities for internal mobility and skills development, capitalising on the transformative potential within their current workforce.
Adopting a skills-based recruitment strategy
By adopting a skills-based recruitment approach, promoting internal mobility, and fostering a culture of continuous learning and development, organisations can effectively navigate these challenges and position themselves for success in a rapidly changing global landscape.
Traditionally, employers held the upper hand due to an ample supply of talent. However, the landscape is changing, marked by the dwindling talent and the widening talent gap. We are transitioning into a post-industrial era where traditional HR practices may no longer suffice.
In this new paradigm, work and skills take precedence over job titles, demanding that organisations leverage technology for talent intelligence and create dynamic talent marketplaces. This approach promotes more flexible and responsive workforce management, aligning with the evolving needs and expectations of both businesses and employees.
By focusing on skills, organisations can uncover latent potential within their workforce. This approach aligns with the concept of “licensed work”, which prioritises human capabilities over repetitive tasks, fostering a more adaptive and innovative environment.
Harnessing AI
Just as Excel revolutionised the approach of data analysis, AI is poised to revolutionise how we approach work. By harnessing AI, organisations can optimise processes in areas like recruitment and career mobility. For instance, Starbucks has streamlined its hiring process to make it as easy as ordering a cup of coffee, demonstrating the power of removing friction in high-volume recruitment.
Similarly, AI is reshaping learning and development, thereby unlocking new opportunities for skill enhancement and career advancement. However, it is crucial to distinguish between AI as a mere feature and AI as a foundational solution. True integration of AI requires a fundamental shift in mindset and approach, heralding a new era of workplace efficiency and effectiveness.
When evaluating technology solutions, it is essential to discern between those merely augmented with AI and those fundamentally built on AI principles. This transition towards AI-native applications poses a significant challenge for established industry players like Oracle, SAP, and Workday, as they grapple with retrofitting their platforms for seamless AI integration.
The talent acquisition landscape is saturated with vendors offering a multitude of solutions. Partnering with experts like AMS, who bring valuable insights from the real-world experiences of hundreds of clients, can be transformative. As talent intelligence grows in importance, the use of AI in recruitment processes becomes crucial. For instance, AI can uncover additional skills not explicitly listed on resumes, thereby broadening the candidate pool and enhancing the alignment between job roles and applicants.
Consider the concept of “top of license” for recruiters, where they focus on the crucial 20% of the hiring process that requires human intuition and emotional intelligence. AI can manage the transactional aspects, freeing recruiters to focus more on assessing cultural fit and soft skills. While AI boosts efficiency, it is the human touch that remains irreplaceable for evaluating candidates’ suitability, particularly in aspects that require a nuanced understanding of personality and team dynamics.
These advancements herald a new operating model for HR, characterised by systemic HR practices. This paradigm shift compels a deeper understanding of AI-native technologies and their transformative potential for HR success. By embracing AI and effectively leveraging its capabilities, organisations can gain a competitive edge in talent acquisition and management.
The imperatives for the future
The research on systemic HR emphasises the need to rethink the HR function to operate more horizontally, directly aligning with the business’s primary concern: efficiently filling vacancies with the right talent. This involves breaking down traditional silos and fostering collaboration across HR domains, such as recruitment, retention, re-skilling, and job re-design.
Organisations must also redefine work processes in environments where skills are scarce, enabling employees to operate at their full potential. This means that departments, which have historically operated independently, must now collaborate in unprecedented ways, laying the foundation for systemic HR.
In India, where the pace of technological change is swift, it is crucial to embrace advanced concepts like AI in recruitment and agility in adapting to evolving skill sets. By aligning these concepts with organisational needs, businesses can effectively navigate the complexities of talent acquisition and management, ensuring a responsive and competitive stance in the global market.
Interested in learning more about the Talent Climate?
Our Talent Climate Series is a set of quarterly reports created in partnership between AMS and The Josh Bersin Company. They explore today’s challenging and turbulent world of talent, providing up-to-date and in-depth market insights, trends, and solutions for how to tackle the changing global conditions – so you can stay ahead of the talent forecast.
Two of the ‘big ticket’ items on many corporate agendas currently are leveraging technology advancements such as Gen AI alongside environmental responsibility and an aspiration for net zero. But are these aspirations paradoxical and if so, what can we do to minimize impacts?
Artificial Intelligence (AI) is hailed as a game-changer but beneath its transformative potential, lies a pressing concern: its environmental impact. The development, maintenance, and disposal of AI technology all come with a carbon footprint.
I asked Copilot, Microsoft’s conversational chat interface – How does AI advancements impact the environment?
It gave me both sides of the argument:
Negative Environmental Impact of AI:
Energy Consumption: The rapid growth of AI, especially generative AI systems, has led to increased energy consumption. For instance, ChatGPT, created by OpenAI, already consumes as much energy as 33,000 homes.
Water Usage: Generative AI systems require substantial amounts of fresh water for cooling their processors and generating electricity. Data centers supporting large AI models can strain local water resources significantly.
Electronic Waste: At the end of their lifecycle, AI technologies contribute to electronic waste, containing hazardous materials that can pollute the environment.
Positive Role of AI in Addressing Climate Change:
Predictive Models: AI systems can predict weather patterns, track icebergs, and identify pollution sources, aiding climate research and disaster management.
Agriculture Optimization: AI helps improve agriculture practices, optimize resource allocation, and reduce environmental impact.
Environmental Governance: By assisting research and promoting effective environmental governance, AI can contribute to solving environmental challenges.
Earth.Org comments that other concerns are functions such as automated advertising which may result in greater consumption as well as increasing waste in certain sectors, such as the e-commerce industry, which has normalized the rapid and frequent delivery of goods; or the rising use of AI in agriculture which could result in the overuse of pesticides and fertilizers, contaminating the soil and water, and harming biodiversity.
Behind the scenes of AI’s brilliance lies an energy-intensive process with a staggering carbon footprint.
Training of AI models can produce about 626,000 pounds of carbon dioxide, or the equivalent of around 300 round-trip flights between New York and San Francisco – nearly 5 times the lifetime emissions of the average car.
Therefore, as businesses focus not only on their technical landscape but their EVP and Environmental reputation, they must also consider building sustainable practices and make educated decisions by considering the potential environmental effects of AI adoption. Such actions as prioritizing energy efficiency, designing more sustainable models, and rethinking data center practices.
Copilot concludes: Balancing AI’s potential with ecological responsibility is crucial for a sustainable future.
Working within the Toronto TA landscape requires dizzying adaptation as we see many shifts and turns. Each year feels like it has a new storyline. Companies are in an employer’s market while struggling with niche skills shortages, cost cutting initiatives all while trying to do the tech integration dance with the extra twist of AI.
Follow me as I explore 5 trends in 5 minutes – a quick summary about important things to think about in navigating today’s TO talent market.
Build in agility for next time:
Talent teams are feeling whiplash. With investment dollars down and projects on pause, we see employees prioritizing job stability, and potential retirees staying put as they shore up their savings and investments. This change is a challenge for HR leaders as they have been forced to reduce both their contractor and perm recruitment resources to be aligned with reduced hiring volumes. As for the forward-thinking and visionary TO HR types, they are very much trying to figure out to build agility into their models for next time.
2. Cross industry hiring:
In areas where are there pockets of steep niche talent shortages, employers are looking more deeply at cross industry hiring. There is a growing trend of hiring individuals with transferable skills from adjacent or even unrelated industries along with increased focus on continuing learning initiatives, and collaboration with educational institutions.
3. Make my tech pain go away:
HR leaders are often paralyzed when choosing technology – from the array of options and the pace that providers add more functionality – it is a hectic landscape. This has led to difficulties and delays in adapting to evolving needs and compliance. Moreover, lack of seamless integration among different tools within tech stacks, manual work arounds, difficult to navigate interfaces, limited customization, poor candidate experience, insufficient reporting and analytics within the tech stack, high costs and limited ROI are becoming overwhelming. HR leaders are seeking ways to cut through noise and have support with tech roadmaps.
If you are seeking help to get a handle on AI and TA tech: Another TA Tech consideration for you to peruse: AMS verified is a free service, recommended by Josh Bersin. This tool is supporting many TA leaders globally to optimize their tech stack and in a responsible and compliant way with AI. Let me know if you would like a demo.
4. DEI Evolves:
The landscape of DEI is undergoing an evolution as efforts transform from standalone initiatives to initiatives being embedded into the TA workstream. Toronto-based organizations are recognizing the value of embedding DEI considerations at every stage of the TA journey. For example, it is table stakes now for TA teams in Toronto to ensure job postings do not use biased language. There is also a growing focus on all aspects of intersectionality in hiring practices to provide a more inclusive recruitment environment.
5. Seeking value added partnerships:
In Toronto’s evolving TA landscape, more and more employers are seeking collaborative partners to bring a variety of expertise to the table to support recruiting efforts. Recruitment Process Outsourcing (RPO) is gaining traction as companies adapt to emerging trends and require more sophisticated sourcing approaches, access to ongoing data insights, and efficient use of high performing TA tech and responsible use of AI.
Budgets are tight across the world right now, but technology is making huge advancements and nowhere more than in the Gen AI arena. It feels like functionality, accessibility and opportunities are changing daily and businesses are under pressure to ensure they are not left behind their competitors. With the projected worth of the AI market expected to reach £160 billion by 2025, its adoption is now a crucial element for businesses across diverse sectors.
So how do you identify the right route, platform, process, or even company-wide strategy to benefit the most but also keep abreast of the tech, and all without breaking the bank?
One thing to consider is how you plan to implement AI. Not necessarily just focusing on using it. Recently Google ran into some issues when Gemini (it’s viral chatbot with ChatGPT) generated World War 2 images that were historically inaccurate. Moving forward it’s worth asking who will act as responsible and an architect for this technology and who can take AI and input it into a business process to reduce risk and drive the efficiency in your teams.
Is outsourcing your AI computation the right move? Nimbleness will help you to stay on top of governmental changes and flexibility is important. An in-house model could pose risk and you may need to evaluate who is going to support you as new legislations unfold and technology advances.
Is your company equipped with the right skillsets to absorb the information coming from AI and to provide clarity? It’s unlikely that the talent you have in-house have both the technical and so-called ‘soft’ skills, that can help to drive successful AI practices. The technology moves so quickly there are no existing parameters or full-scale expertise, and unlikely to be so. These skills include critical thinking, problem-solving and collaboration alongside the ability to communicate the strengths and weaknesses of using artificial intelligence, as well as when not to use it. And even more simply than that, do your team members feel open to testing and learning in the AI space?
Have you considered how to roll out the technology to your teams, how to cultivate AI-based work habits and how to prioritize AI training? The AI industry value is projected to increase by 13 times over the next seven years. However, the technology in this field is moving faster than the talent which the UK is generating to deliver it. There is a significant talent gap, and the demand for qualified AI professionals — contractors included — far exceeds the supply. It’s therefore vitally important to look at internal mobility.
Do you or some employees not fit into a “typical” AI leader stereotype? This can be an area some people feel a lack of confidence or voice around the subject matter due to certain groups of people having more experience or daringness than others. That is why it is even more important to ensure you have a seat at table, and that the table is full of all types of people to help reduce bias and evolve a more inclusive framework around delivering AI.
There is no way to truly know how AI will impact global jobs, but at the minute, it will benefit those of us in the TA space to learn as much as we can, become comfortable in the space, keep reading, and keep growing. Soon we will be hiring for new skillsets in the AI environment and our internal processes will be leveraging new technology – yes it’s all going to look a little different.
What you're witnessing... is why there will still need to be a human in the loop for any system where the output is relied upon as ground truth.
