The corporate world is always evolving, but some of the most important, game-changing transformations are the ones that unfold behind the scenes. With the rise of SaaS, AI, and other tech innovations, the way we’re hiring is taking on new dimensions.
This doesn't just mean companies are adopting new HR software. They're also redefining what they look for in candidates — with a heavy focus on freelancers and other on-demand professionals.
Why are companies moving toward on-demand workforces, and what role does the evolving technological atmosphere play in the transition? Here's what to know.
Moving Away From HR Traditions
In times past, the overwhelming majority of recruitment processes were manual and time-consuming. Companies relied heavily on these recruitment processes to find their ideal candidates — but that’s changed drastically in recent years.
Today, more companies than ever leverage automation to streamline their hiring practices. In late 2022, 25 percent of companies said they used some form of HR automation for recruitment — and this totally makes sense considering that the practice can fill 64 percent more vacancies. Learn more about how you can streamline your hiring practices through the Oomple platform here.
So what does HR automation look like? It often manifests as a shift toward using smarter recruiting methodologies, like publicizing openings with automated job postings, tracking applicants with AI systems, powering remote work with video interviewing platforms, and administrating digital skills assessments.
The introduction of these cutting-edge technologies isn't just about making hiring easier for employers. It also signifies a major shift in how businesses think about the purpose of hiring.
There's a growing focus on competencies:
In a world of distributed workforces, skills-based hiring has become more important than ever. According to the Harvard Business Review, this reflects a widespread structural reset: Employers no longer judge candidates solely based on degree completion — Instead, HR teams are looking at the skills and talents applicants have demonstrated.
The move toward skills makes sense: Companies want to hire workers who have the competency and experience to hit the ground running.
Businesses are diversifying their offerings to provide their consumers and partners with better offerings — like integrated product apps, multichannel engagement experiences, and white-glove customer service. In the process, they're becoming increasingly reliant on job candidates who can help them create apps, systems, and products in fields that may go beyond their normal expertise.
Skill-based hiring practices can make it easier to meet this demand for skilled professionals. For instance, digital assessments and video interviews can help you ensure your workforce has what it takes to succeed. It can also facilitate acquiring talent suited to specific projects, like launching a web app, embarking on a digital transition, or undertaking a big rebranding.
Enterprises are also emphasizing training programs that focus on teaching employees new skills or building on existing ones to keep them up-to-date with industry trends and best practices. By using employee development initiatives like these to cultivate highly qualified talent, businesses can ensure they’re well-equipped to take on any challenge.
Companies are hiring to build more diverse corporate cultures:
A 2022 assessment of recruiting trends revealed that more companies are going the distance when it comes to diversity, equity, and inclusion: 57 percent of senior HR leaders ranked finding more diverse candidates among their top three priorities, making it the most important criteria — even ahead of automation, filling open roles, and improving the candidate experience!
Hiring diverse talent boosts innovation and new ideas. Diverse teams are better able to recognize and solve problems from different perspectives. In addition, having a diverse team can make an organization more attractive to potential customers who may feel represented in the company's workforce. Diversity also encourages team members to think outside of traditional approaches, leading to new ideas that could benefit the business.
More professionals are shifting to on-demand work — and they can definitely afford to:
Technology isn't just changing the landscape for employers. The power dynamic in the labour market is also shifting due to the increased availability of bargaining chips and technology for workers.
This has led to a phenomenon called the Great Resignation as employees realize their skills are worth more than they're getting — and companies need to embrace this change. Employers must invest in changes designed to improve employee work-life balance, such as offering flexible hours and more interesting work. Those that fall short risk losing out on highly skilled professionals who can find better options elsewhere.
Contingent workforces are the norm:
Contingent workforces refer to workers who are hired as needed — often for short-term contracts or project-based assignments. As Oracle experts note, "technology is creating new and more flexible ways to meet demand. Contingent workforces can help drive and accelerate change."
So why do companies love workforces comprised of freelancers, independent contractors, and other non-traditional employees? Hiring contingent workers can help businesses fill specific roles quickly without committing to long-term hiring decisions or spending the time and resources required for more traditional recruitment processes.
Sticking to a contingent staffing strategy is also good for reducing labour costs: You only pay wages when needed rather than having full-time staff members available at all times.
These benefits don't just apply to short-term hiring. Enterprises looking to put together a “Dream Team” should consider including on-demand professionals in their search. Not only is it a smart way to get a jump on the team-building process by finding highly skilled workers — but it can also help you establish a foundation for the future by nurturing reliable team members over time.
Building a Workforce That Advances Your Enterprise Technologically
Keeping up with evolving technology isn't just about improving how you work. Considering the fact that almost 90 percent of companies had cloud implementations in place by 2022, it could be a key competitive differentiator. In other words, you can't afford not to adopt emerging technology if you want to thrive.
To stay up-to-date with constant developments in technology, companies have to invest in hiring people who possess the necessary skills, ideas, and innovations. Traditional HR practices don't always make this easy, and their failure to adjust can bring your forward motion to a halt. Taking advantage of on-demand professionals empowers you to acquire additional expertise — which can ultimately leave your organization more flexible.
The future of work will be distributed, diverse, and tech-empowered: Is your enterprise properly equipped to keep up? Find out where you stand and cultivate a stronger, more talented workforce by booking a meeting with an Oomple account manager today.