NEWS AND INSIGHTS
The extended workforce is driving significant changes in the way leaders manage talent. In this article, we explore major takeaways on the topic from our recent webinar “Workday + VNDLY: Technology for Optimizing the Total Workforce,” featuring VNDLY, a Workday company leaders Shashank Saxena and Chuck Mobley.
As Workday’s recent acquisition of VNDLY emphasizes, the extended workforce is becoming an increasingly critical resource for companies around the world.
However, the growth of the nonemployee segment comes with a number of practical challenges. To optimize the success of both employees and nonemployees alike, today’s organizations need a total talent management strategy that provides a holistic view of the entire workforce.
Missed the webinar? Here are five things you should know.
1. The digital acceleration gap is growing.
Successful digital transformation used to require months—or even years. Now, to keep up with the competition, companies are tasked with innovating in just weeks. For many, this push is creating a gap between the pace of change and their organization’s ability to meet it.
In fact, according to a recent Workday study:
- 52% of business leaders say there is a growing divide between where their business is and where it needs to be to compete.
- 68% have reported a slowdown in digital transformation.
- 38% of leaders say a lack of relevant workforce skills is their biggest barrier to transformation.
2. Today’s workforce composition is shifting rapidly.
Freelancers. Contractors. Vendors. To fill skill gaps created by digital acceleration, employers are increasingly turning to extended workers. Nonemployees make up 36% of today’s workforce—a number that’s expected to rise to 50% by 2027.
“When you think about digital transformation, you have to think about whether you are gaining traction or losing momentum,” Saxena said. “Research shows that talent becomes a key factor in determining whether your company is ready to go on this change journey with you.”
3. Employers are struggling to respond to these trends.
Amid this workforce shift, many companies are struggling to attract, retain, and manage the talent they need to stay competitive in their industry. According to Shashank, these challenges are largely related to four areas:
- Inadequate insight into the labor pipeline.
- Manual processes and lack of workflow.
- Disconnected systems.
- Compliance and security risks.
4. Total talent management is key for total workforce optimization.
To address these problems, leaders are rethinking how they manage their total workforce—a responsibility that largely falls on HR departments. But too often, HR leaders lack the support they need across organizational functions. A 2019 Global Human Capital Trends survey conducted by Bersin, Deloitte Consulting found that procurement, IT, and HR efforts are often fragmented when it comes to hiring contingent workers, which can create hurdles to strategically leveraging an organization’s alternative workforce.
The key, according to Saxena, is to create a cohesive total talent management strategy that can marry the disparate elements of a talent management pipeline, from sourcing to spend to compliance, for both traditional employees and nonemployees.
5. HCM + VMS are paving the path to full workforce visibility.
In order for extended workforce management processes to run smoothly, full workforce visibility is key. For companies across industries, the recent acquisition of VNDLY by Workday is making this goal a reality.
Through the new partnership, VNDLY complements Workday’s cohesive human resources and finance processes by sending contingent worker-related information to Workday in real-time, giving clients broader control over workforce provisioning activities. The result is a technology ecosystem where all departments involved in extended workforce management can work together—effectively and efficiently.
Interested in learning more? Download the on-demand recording to listen to the full webinar, including a product demo and audience Q&A.