THE
FUTURE
OF WORK
Talent, Skills and AI
JANUARY 2025
Contents
Foreword
The rapid rise of AI and convergent technologies presents Aotearoa New Zealand with perhaps our greatest opportunity to close the productivity gap. Unlike previous technological advances, we don’t have the luxury of time to figure this out. As highlighted in our AI Blueprint, the message is clear: we must act now, or risk losing not only our existing advantages but also the unique qualities that define us as a nation.
AI is transforming organisations across every sector, delivering significant commercial benefits through productivity gains and the creation of entirely new marketplaces. The well-known saying, ‘AI won’t put you out of business, but your competitor who uses it will,’ is becoming a reality – even for the most reluctant adopters. When implemented responsibility and thoughtfully, AI is more than a driver of efficiency – it’s a tool for creating a more equitable future. By enabling smarter use of our limited resources, it provides an unprecedented opportunity to bridge the digital divide, foster career mobility and build a fairer society.
The need for discussions on upskilling and building the capability to fully harness AI is more critical than ever. It’s inspiring to see member organisations like Fraxional stepping up to broaden these conversations, ensuring Aotearoa is equipped to navigate this transformative era.
Madeline Newman
Executive Director
AI Forum New Zealand • Te Kāhui Atamai Iahiko o Aotearoa
Executive Director
AI Forum New Zealand • Te Kāhui Atamai Iahiko o Aotearoa
Executive Summary
The global talent landscape is undergoing a profound transformation, driven by rapid advancements in Artificial Intelligence (AI), the increasing need for flexible, skills-based talent solutions, and the empowerment of individuals to make career choices. Organisations are reshaping how they source, develop, and manage talent to remain competitive in a digital operating environment. Recognising the key trends impacting the future of work will enable businesses to future-proof their organisations.
The New Zealand Government’s Digital Strategy, Te Rautaki Matihiko mō Aotearoa, through its flagship initiative, the Digital Technologies Industry Transformation Plan (ITP), recognised that “the digital technologies sector is an important contributor to the economy. Economic and social spill-over benefits from digital technologies include improving productivity, enabling access to global markets, providing innovative solutions for environmental sustainability and supporting social interactions.” The ITP, which was in development from 2019 to 2023, focused on the following agenda:
1
Growing export success
Growing the export potential of New Zealand's digital technology companies, with an initial focus on Software-as-a-Service (SaaS) firms (and game development as a future priority sub-sector).
2
Telling our tech story
Showcasing the scope and potential of digital technologies in New Zealand to both overseas and domestic audiences.
3
Enhancing the skills and talent pipeline
Equipping more New Zealanders, from a wider variety of backgrounds, with the technical and soft skills needed to work and thrive in the digital technologies sector, and to grow businesses in the sector (as well as other sectors now reliant on digital technologies).
4
Enriching Māori inclusion and enterprise
Promoting and supporting activity that enhances Māori leadership and participation in the digital technologies sector and appropriately builds on mātauranga Māori.
New Zealand's Tech Sector: Strengths and Challenges
In July 2024, New Zealand Trade and Enterprise (NZTE) released See Tomorrow First B2B Research on "Perceptions and Awareness of New Zealand's Tech Sector" where they surveyed over 1,800 B2B tech decision-makers in the US, UK, Singapore, and Australia, and found that while New Zealand is perceived as trustworthy and environmentally conscious, the country's tech sector is viewed as second tier compared to larger markets and that there is a lack of awareness among international buyers of New Zealand's tech capabilities.
Reflecting upon the focus areas of New Zealand’s ITP, which concluded in December 2023, as well as the strengths and challenges of the New Zealand Tech Sector, Fraxional is building towards:
Adopting a solid framework
To define skill requirements in the face of technological advancements
Providing a platform
For the growing need for workforce flexibility and adaptability
Addressing the widening skills gap
Particularly in technology and innovation sectors
Balancing human creativity with AI efficiency
In team operations
Fraxional collaborated with New Zealand's leading Digital Technologies Industry visionaries in thought-provoking conversations that centred on the critical themes of Talent, Skills, and AI, validating our initial hypotheses and uncovering transformative insights on The Future of Work.
The inaugural issue of Fraxional Foresight captures the essence of our collective vision for Aotearoa, integrates Fraxional’s transformative purpose of enabling the future of work with AI and fractional talent to unlock Aotearoa’s digital potential and create massive economic opportunities for New Zealand businesses.
Part 1 - Big Bets on the Future of Work
Patrick Sullivan (Google)
"New Zealand needs 100 billion-dollar technology companies, companies like Xero. We need policy and investment to attract & retain talent and foster digital exporters that take New Zealand to the world. This will enable Aotearoa, NZ to grow our GDP more efficiently and close the gap with the likes of Singapore & Australia."
Tom Maasland (NZTech • MinterEllisonRuddWatts)
"New Zealand should prioritise technology as a top export earner and adopt structured approaches to innovation."
Prof. Michael Witbrock (University of Auckland)
"New Zealand has the opportunity to figure out how humans remain valuable in a future without jobs."
Melissa Crawford (Tech with Heart)
"While AI and robotics offer cost-effective solutions in the short term, human qualities will become increasingly valuable in the future. As technology advances, humanness will become a unique advantage and a source of innovation."
Part 2 - The Skills Revolution
In 2022, a significant milestone was reached for New Zealand's digital workforce. Both New Zealand and Australia secured a whole-of-country license for the Skills Framework for the Information Age (SFIA). This global framework, developed in the United Kingdom, is now used worldwide, has been translated into 11 languages, with free licensing options for individuals and organisations who use it for non-commercial purposes. The whole-of-country license grants widespread access across New Zealand, promoting broader exploration and implementation of SFIA, while providing a standardized way to define and manage skills and competencies in ICT, software engineering, and digital transformation.
Led by the Digital Public Service Branch (DPS) and the Ministry of Business, Employment and Innovation (MBIE), the New Zealand government has made SFIA freely available to public and private sector organisations, educational institutions, not-for-profit organisations, and individuals.
SFIA has been widely adopted within the New Zealand Public Service for years, supporting workforce planning, recruitment, and skill development. By embracing SFIA, organisations can:
Address the Skills Gap:
Identify and address critical skills shortages in technology and innovation.
Enhance Workforce Flexibility:
Adapt to changing business needs through the use of flexible work arrangements and AI-powered fractional teams.
Improve Talent Management:
Make informed decisions about recruitment, training, and career development.
Foster a Culture of Continuous Learning:
Encourage employees to upskill and reskill to remain competitive.
As New Zealand continues to evolve as a digital nation, adopting SFIA will play a crucial role in driving innovation and economic growth. SFIA 9 , the new version published in October 2024, is an evolution of the global skills and competency framework that defines the skills and competencies needed by business and technology professionals who design, develop, implement, manage and protect the data and technology that power the digital world.
Daniel Merriott (Digital Skills Agency • SFIA Foundation)“SFIA is a framework that supports the planning, development, and assessment of skills, with a focus on real-world outcomes and professional experience. SFIA, as a common language for digital skills, enables organisations to join up and enhance the efforts of their managers, staff, HR professionals, and learning professionals. In turn, this ensures that digital teams and organisations can be ready with the skills needed to meet the challenges of both today and the future.”
(The Skills Revolution - continued)
Fraxional is adopting SFIA to identify technology professionals who possess skills, attributes and behaviours in the following areas:
Information and Communications Technology
Business Change
Digital Transformation
Data Science and Analytics
Software Engineering
Information and Cyber Security
Learning and Education
Applied Computing and Computational Science
User Centered Design
Digital Product Development, Sales and Marketing
Human Resource and Workforce Management
Paul Collins (SkillsTX)“Organisations today face persistent challenges: misaligned roles, underutilised talent, and fragmented workforce strategies. Outdated job descriptions, inefficient HR systems, and reliance on guesswork repeatedly undermine effective talent management. SFIA delivers a definitive solution. More than a mere framework, it serves as a universal standard for defining and communicating skills, empowering organisations to cultivate a smarter, more cohesive workforce. By rigorously aligning workforce planning with precise skill requirements, SFIA enables organisations to fully realise their potential, accelerate growth, and confidently drive innovation.”
In today's fast-paced digital workplace, organisations need to be flexible and adaptable to keep up with the constant technological advancements. SFIA is a framework that can help organizations and employees plan, develop, and assess skills, ensuring they have the capabilities they need for the future.
Part 3 The Rise of AI
In 2030, Aotearoa New Zealand is at the forefront of AI innovation, setting a global example for the ethical and responsible development and use of AI technologies, and leveraging AI's power to drive economic prosperity while ensuring that the benefits are distributed equitably and inclusively across society.
The impact of artificial intelligence – an economic analysis, an analytical note published by The Treasury New Zealand in June 2024 suggests two primary frameworks by which we can analyse the integration of AI into the economy, whether as General Purpose Technology (GPT) that raises productivity in the production of goods and services, or as an Invention of a Method of Invention (IMI) which raises productivity in the production of ideas:
1. Microeconomic Framework (Task-Based Approach):
- Displacement Effect: AI can automate tasks previously done by humans, leading to job displacement.
- Reinstatement Effect: AI can create new tasks that require human skills, such as data analysis and strategy.
- Productivity Effect: AI can increase productivity by automating routine tasks, allowing workers to focus on higher-value activities.
2. Macroeconomic Framework (Aggregate Production Function Approach):
- Capital Deepening: AI can be viewed as a form of capital that improves the quality and quantity of capital inputs.
- Labor Augmentation: AI can enhance human capabilities, effectively increasing the quality of labor inputs.
- Multi-Factor Productivity: AI can improve the efficiency of combining capital and labor, leading to increased overall productivity.
(The Rise of AI - continued)
Perrin Rowland (AcademyEX)"Our productivity in 2007 was in the top 10% of the number of first world countries. We're now in the bottom 75 of third world countries in terms of productivity. I'd love to see New Zealand rise above its weight."
New Zealand's productivity performance has been an ongoing topic. According to the Business Productivity Report by the New Zealand Institute of Economic Research (NZIER), productivity growth has lagged behind other small advanced economies (SAEs), despite consistent economic growth. While labor productivity has increased due to a growing workforce, factors such as low capital investment, limited R&D, and a slow diffusion of technology and innovation have hindered overall productivity growth. Encouraging the adoption of new technologies, promoting research and development, and facilitating the reallocation of resources may help New Zealand unlock its full economic potential.
In September 2024, the AI Forum of New Zealand released a groundbreaking AI Productivity Report. This report offers clear, evidence-based insights into AI's current usage and its impact on productivity across the country. A striking 96% of respondents reported significant boosts in worker efficiency due to AI, highlighting its potential to transform productivity levels, even if immediate financial benefits aren't always apparent.
Key Points from AI IN ACTION: Exploring the Impact of Artificial Intelligence on New Zealand's Productivity (September 2024, AI Forum of New Zealand)
—
High AI Adoption:
67% of businesses in New Zealand are utilising AI, primarily generative AI.
—
Significant Efficiency Gains: 96% of respondents reported that AI has significantly boosted worker efficiency.
—
Positive Financial Impacts:
Over half of the respondents noted positive financial outcomes, including cost savings in operations.
—
Minimal Job Displacement:
Only 8% of respondents indicated any job losses due to AI implementation.
—
Financial Considerations:
The report highlights the costs associated with AI implementation, including initial setup and ongoing expenses. While most costs were manageable, some organisations faced significant initial investments.
—
Diverse Applications:
AI is being used across various business areas, with a particular emphasis on marketing and administration.
—
Job Creation:
AI is not only changing existing roles but also generating new career opportunities.
(Insights from Thought Leaders - continued)
Patrick Sullivan (Google)“In my view, AI's primary value lies in its ability to amplify human productivity. Imagine AI analyzing context-rich conversations, like business calls, and transforming them into valuable organisational knowledge. This knowledge can then be used to upskill employees, whether they’re fractional workers or new hires, familiarising them with the company's unique terminology, jargon, and product offerings in less time. This is where we'll witness substantial productivity gains through AI.”
While the potential of AI to transform New Zealand's economy is significant with 59% of businesses in New Zealand planning to adopt AI technologies, it is not without challenges. AI is often surrounded by hype and misconceptions, which can lead to unrealistic expectations or unwarranted fears. Additionally, the need for a skilled workforce capable of leveraging AI effectively is crucial. The rise of AI is accompanied by a growing demand for digital skills, particularly in areas like big data analytics, cybersecurity, AI/ML engineering and cloud computing. Addressing the skills gap and ensuring equitable access to AI's benefits across all sectors and regions will be essential to fully harnessing its potential while mitigating potential downsides.
James Rameil (OneNZ)“A gap is emerging between tech-savvy employees and their organizations in terms of AI adoption, highlighting the diverse “AI cultures” that are taking shape. Some companies foster an environment of encouragement, promoting experimentation and the sharing of AI-driven improvements. Others, however, approach AI with more caution, restricting access to AI tools and discouraging uptake. An important tension exists between employees using AI to enhance their productivity and the fear of being replaced by the very tools they adopt. While many employees are eager to leverage AI to work smarter and deliver better results, some hesitate to fully embrace or share these gains due to concerns about job security. This delicate balance requires thoughtful management—creating an environment where AI-driven productivity is encouraged without fostering fear of redundancy. Striking this balance allows organizations to unlock AI’s potential while building trust and ensuring employees feel valued as integral contributors to the future of work.”
(Insights from Thought Leaders - continued)
Callaghan Innovation, New Zealand Trade and Enterprise (NZTE), and the National Institute of Water and Atmospheric Research (NIWA) are collaborating on a AI Activator, a comprehensive programme designed to help business overcome the challenges of AI adoption by offering a range of resources, including access to AI research experts, technical assistance, AI tools, and options for funding and grants.
Tina Wilkerson (Chorus)“Robust and stable high-speed data connectivity is crucial for successful AI adoption. With 87% of the population and 412 New Zealand towns and cities already able to access fibre providing high bandwidth capability, Chorus is creating the infrastructure for NZ to embrace the future that integrates AI at all levels of businesses.”
At the Aotearoa AI Summit in Auckland in September 2024, New Zealand’s Technology Minister Judith Collins unveiled a new chatbot pilot program developed with Callaghan Innovation, GovGPT, which aims to facilitate easier access to government-provided information and demystify the use of AI, not just in public service, but for all New Zealanders. Citing AI's projected contribution of $76 billion to New Zealand's annual GDP by 2038, Minister Collins stressed the importance of supporting businesses in AI adoption to fully leverage its benefits in a rapidly evolving global landscape.
Part 4 - The Power of Fractional Squads
Fractional squads represent a paradigm shift in the future of work, offering organisations the flexibility to scale teams rapidly in response to project demands. By leveraging AI, these teams combine human expertise with digital capabilities, optimising resource allocation and reducing overhead costs. As businesses embrace digital-first strategies, fractional squads provide a cost-effective solution to accessing specialised AI expertise, enabling organisations to remain agile and innovative.
OUR RESIDENT EXPERTS WEIGH IN
Patricia de Villa (Digital Innovation and Transformation)
"Our ambition for Fraxional is to thrive in a digital-first environment that enables highly-skilled professionals to deliver groundbreaking digital transformation initiatives. Building digital-native businesses have shown me the power of remote work and the importance of a skilled and experienced community. Great things can be achieved when people with the right values, mindset and skills come together no matter where they are in the world. We are building Fraxional to foster a future where work is fulfilling, flexible, and impactful.”
Ren Saguil (Revenue and Market Development)
"Fractional leadership is not just a new way of working; it's a strategic approach to bridging talent gaps and accelerating growth. By leveraging global expertise and forming agile squad teams, we're creating a model that allows businesses to access diverse top-tier skills on-demand, bypassing traditional hiring constraints and enabling rapid innovation."
Kevin Whiteman (Commercial and Finance)
"Fractional, for me, is about reimagining work in a way that's both fulfilling and impactful. The pandemic and the rise of AI have shown us that the future is uncertain, but also full of possibilities. We need to build agile, connected teams that leverage diverse skills and perspectives to thrive in this evolving world."
Fractional Leadership and Squads: Case Studies and Real-World Experiences
In today's dynamic business landscape, organisations must be agile and adaptable to thrive. Fractional leadership and fractional squads offer innovative solutions to meet these challenges. Fractional leadership involves engaging experienced leaders on a part-time or project-based basis. This approach provides access to specialised expertise without the overhead of full-time executives. Fractional leaders can guide strategic initiatives, mentor teams, and fill leadership gaps. Fractional squads are cross-functional teams assembled for specific projects or tasks. These teams bring together diverse skills and perspectives to deliver high-impact results quickly and efficiently. Fractional squads can be particularly effective for innovation, problem-solving, and rapid prototyping.
These curated case studies on the fractional model demonstrate the success of fractional leaders and fractional squads.
Case Study 1: Fractional CRO Drives Successful Product Launch in ANZ
Challenge:
A mid-sized IT distributor wanted to launch a new US-based product in Australia and New Zealand. They lacked the regional expertise and go-to-market strategy needed for success, and couldn't justify hiring a full-time Chief Revenue Officer (CRO) for this short-term project.
Solution:
The company partnered with Fraxional to engage a fractional CRO for a 6-month contract. This provided access to a highly experienced CRO with:
- Deep regional knowledge: Expertise in the ANZ market.
- Product launch expertise: Proven track record of successful product launches.
- Cost-effectiveness: No long-term commitment of a full-time executive.
Implementation:
- Flexible engagement: The fractional CRO focused on achieving specific outcomes and impact.
- Seamless integration: They worked closely with the existing team, utilizing AI tools for efficient collaboration and market analysis.
- Dedicated business development support: A team was assembled to generate leads, organise webinars, execute marketing campaigns, and drive conversions.
- Time zone coordination: Careful planning and flexible communication were essential to bridge time zone differences.
- Knowledge transfer: Processes were implemented to capture and retain the CRO's insights and strategies for future use.
Outcomes:
The fractional CRO led a successful product launch, exceeding expectations:
- Accelerated time-to-market: 40% faster than initial projections.
- Boosted revenue: 25% increase in first-quarter revenue targets.
- Strategic partnerships: Established key relationships in the ANZ region.
- Sustainable growth: Developed a long-term regional expansion strategy.
Case Study 2: Fractional Digital Commerce Expertise Empowers Agricultural Venture to Embrace e-Commerce
Challenge:
The COVID-19 pandemic disrupted traditional agricultural supply chains, creating both challenges and opportunities. Consumers faced limited access to fresh produce, while farmers struggled to reach their customers. This case study examines how a farm-to-market venture leveraged e-commerce and a fractional Digital Commerce Expert to thrive in this challenging environment.
Solution:
Recognizing the need for digital transformation, the venture partnered with a fractional Digital Commerce Expert to develop and implement a comprehensive e-commerce strategy:
- E-commerce platform: A user-friendly online store was created to showcase products and facilitate online orders.
- Social media marketing: Engaging content and targeted campaigns were used to connect with customers and promote offerings.
- Content marketing: Farm tours, recipe videos, and other engaging content built brand awareness and customer loyalty.
Implementation:
- Supply chain optimization:
- Local sourcing: Prioritised partnerships with nearby farmers to ensure product availability and freshness.
- Efficient logistics: Developed a robust delivery system, collaborating with hyperlocal retailers and delivery services.
- Quality control: Implemented strict measures to maintain product freshness and safety.
- Digital payment education: Provided training and support to farmers on utilising digital payment systems.
Outcomes:
The e-commerce venture achieved remarkable success during the pandemic:
- Increased sales: Expanded reach and online ordering capabilities led to significant sales growth, providing a grain alternative to rice.
- Enhanced brand awareness: Strategic social media and content marketing built a strong brand reputation.
- Strengthened customer relationships: Direct engagement fostered personalised service and increased customer loyalty.
- Community empowerment: Supported local farmers and contributed to economic growth and food security, expanding the farmer network by 50%.
Case Study 3: The Power of Remote Agile Squads in Driving Digital Financial Services
Challenge:
The need for accessible digital financial services was particularly highlighted during the COVID-19 pandemic. In the Philippines where a significant portion of the population remained unbanked or underbanked, traditional banks struggled to reach these communities due to geographical limitations and operational costs.
Solution:
To address this challenge, fully-remote, agile teams were assembled, leveraging global expertise to build a digital bank in record time. This approach allowed for:
- Rapid response: Quickly adapt to changing needs and market conditions.
- Cost-effectiveness: Reduce overhead associated with traditional office spaces.
- Access to talent: Leverage a wider pool of skilled professionals worldwide.
Implementation:
The team employed key strategies to ensure successful collaboration and project delivery:
- Agile methodology: Enabled rapid iteration, continuous improvement, and flexibility.
- Robust communication tools: Facilitated seamless communication and knowledge sharing across time zones.
- Cultural sensitivity: Ensured the platform catered to the unique needs and preferences of the Filipino market.
- Strong project management: Maintained timely delivery and high-quality output through rigorous project management practices.
Outcomes:
The team successfully developed a user-friendly digital banking platform with the following features:
- Intuitive interface: Designed for users with varying levels of digital literacy.
- Essential banking services: Offers core services like deposit, loan, and digital payment.
- Financial education: Integrated modules to empower users to make informed financial decisions.
- Secure and reliable: Prioritised user data and transaction security through robust security measures.
Case Study 4: Effective Fractional Leadership Revitalises a Not-for-Profit's Operational Function with Process Optimisation
Challenge:
A not-for-profit organisation faced a crisis within a key internal operational function. Low trust from internal customers and high staff churn, particularly among those with critical intellectual property (IP), threatened the organisation's operational efficiency and long-term sustainability.
Solution:
Recognizing the need for external expertise, the organisation partnered with a skilled leader to guide a turnaround of the struggling function. The strategy focused on:
- Trusted leadership: An experienced leader embedded within the organisation to build relationships, foster trust, and drive change.
- Engagement and visibility: Shifting the focus from reporting past activities to proactively collaborating with stakeholders to identify and address current needs.
- Effective processes: Designing structured, robust processes that met business needs without creating unnecessary burdens.
Implementation:
The fractional leader implemented new tools, structured processes, with the help of a hybrid delivery team:
- Fit-for-purpose tools: Implementing tools and technologies to support efficient processes and enable automation.
- Right skills, right roles: Defining required skills and assembling a team with the right expertise to execute the transformation.
- Cultural sensitivity: Aligning with the organisation's mission, values, and passionate workforce.
Outcomes:
The organisation successfully revitalised the operational function:
- Happy internal stakeholders: The function regained trust and became a valued partner to internal customers.
- Effective and transparent: Structured processes and improved visibility fostered efficient delivery and stakeholder engagement.
- Confident, engaged team: Staff felt empowered and engaged through clear processes, appropriate tools, and the ability to contribute effectively.
- Consistent delivery and enhancement: A culture of continuous improvement and innovation led to ongoing operational enhancements.
Fraxional Focus: Supercharge your Skills-Based Organisation with Fractional Squads and AI
At Fraxional, we believe that AI-enabled fractional teams exemplify the synergy between human creativity and machine learning efficiency. Kevin Ashton, often quoted as the inventor of the Internet of Things (IoT) once said “The problem is, people have limited time, attention and accuracy—all of which means they are not very good at capturing data about things in the real world. And that's a big deal. If we had computers that knew everything there was to know about things—using data they gathered without any help from us—we would be able to track and count everything, and greatly reduce waste, loss and cost.”
We imagine the future of work where we leverage supercomputers to process multi-dimensional, unstructured data from a plethora of trusted data sources into meaningful references that can help organisations make more intelligent, evidence-based decisions. Integrating AI algorithms businesses can enhance problem-solving capabilities and foster innovation. This approach not only addresses the skills gap but also creates new opportunities for talent deployment and development, and effective value delivery.
Kevin Whiteman (Fraxional)“One of the great opportunities with the fractional model is shifting the focus from time-based costing to value-based outcomes. Fraxional is redefining the engagement with the goal of paying for the value delivered, not just the hours worked. Ultimately, we need to tie the value of fractional work back to core business metrics: revenue, cost, and risk. This will allow us to quantify the impact for CEOs and demonstrate the true value of this approach.”
Skills-based organisations will revolutionise the way we work by breaking down work into projects, tasks, and gigs, and matching individuals to opportunities based on their skills and experiences. This approach fosters agility, as it allows organisations to quickly reallocate talent in response to changing needs. However, to fully unlock the potential of skills-based models, we must move beyond a static view of skills. We need to recognise that work is dynamic, influenced by evolving skill combinations, employee aspirations, and business requirements.
Ren Saguil (Fraxional)“How do we measure value in an era where AI can dramatically increase efficiency? We're addressing this challenge at Fraxional by focusing on value-based outcomes, not just input of hours worked but multi-dimensional factors that have historically proven how success is delivered. We are developing a system that emphasises the value delivered by fractional workers.This approach benefits both the client and the fractional worker. The client gets a clear understanding of the value they're receiving, and the worker is rewarded for their efficiency and expertise. So, instead of just focusing on output, let's think about the broader impact. How does fractional work truly benefit the business? That's the key question we're trying to answer.”
(Fraxional Focus - continued)
Patricia de Villa (Fraxional)“Fraxional takes a comprehensive view of input where we are looking at a fractional worker's skills, expertise, competencies, behaviors, demographics and real-world experiences to gain a holistic understanding of their potential contribution. We have developed algorithms to predict expected output based on these factors, and we aim to refine these predictions using Google’s machine learning and AI.More importantly, we recognise that AI should be an enabler, not a driver. It is not intended to replace human capital but enables human resources to work smarter, harnessing focus for higher value delivery through analytical thinking and problem solving. Beyond technical credentials and corporate work experience, we are also considering the behavioural attributes that will foster successful human-AI collaboration to create a synergistic relationship where AI augments human capabilities to improve productivity and create sustainable impact.”
Looking ahead, AI is poised to become a cornerstone of the way we work, create value, measure productivity and its impact. As AI technologies become more sophisticated, their integration into workforce strategies will drive significant changes. organisations that embrace AI-enabled fractional squads and skills-based models will be better positioned to navigate the complexities of the future work environment.
The Benefits of Embracing Fractional Squads
1
Access to top talent
Tap into a network of highly experienced professionals and access the exact expertise you need, when you need it.
2
Expertise on-demand
Benefit from the combined perspectives and multi-disciplinary experience in an accomplished squad, ready to tackle complex problems.
3
Focus and efficiency
Focus your resources on core competencies required by business as usual while leveraging the expertise of external specialists to help your team navigate business challenges.
4
Enhanced agility
Accelerate achievement of your goals when you onboard an experienced squad that is focused on delivering positive outcomes.
5
Scalability and flexibility
Adapt your team structure as your business needs evolve, easily scale teams up or down based on business needs, flexing expertise as required.
6
Long-term financial impact
Reduce overhead costs, productivity losses, damage to team dynamics, missed revenue opportunities and other costs that are associated with hiring errors.
Foresight
The future of work is a thrilling chapter yet to be fully written. It will be a story of perseverance, collaboration, and innovation driven by the boundless creativity of human potential paired with the precision of AI. Fractional squads will revolutionise how we approach talent and innovation, highlighting organisational agility as the secret to maintaining competitiveness in the digital era. Forward-thinking leaders who embrace these transformative trends will unlock unprecedented potential for growth and adaptability. By leveraging AI-powered insights and the dynamic capabilities of fractional teams, organisations can navigate the complexities of an ever-evolving market with unparalleled precision and speed. As AI continues to revolutionise industries, the demand for skilled talent and innovative solutions will only intensify.
Fractional teams, powered by AI, offer a flexible and efficient approach to remote work, agile methodologies, and a customer-centric focus, enabling organisations to unlock unprecedented potential for growth and adaptability, and build a future-ready workforce that is equipped to navigate the complexities of the digital age and drive sustainable success.
To thrive in this evolving landscape, businesses should prioritise the adoption of AI technologies and the development of flexible workforce strategies.
Prioritise AI technology adoption:
Implement AI solutions that can enhance productivity, streamline processes, and provide data-driven insights.
Develop flexible workforce strategies:
Embrace models like fractional squads to adapt quickly to changing market needs and project requirements.
Invest in continuous learning programs:
Establish robust training initiatives to keep employees' skills up-to-date and aligned with industry trends.
Create a culture of innovation:
Encourage experimentation and creative problem-solving to stay ahead in a rapidly evolving business landscape.
Implement skills-based talent management:
Utilise tools and frameworks like SFIA to identify, develop, and manage essential competencies within the organisation.
Embrace remote and hybrid work models:
Leverage technology to support flexible working arrangements, expanding access to global talent pools.
As we stand on the cusp of this new era, the adoption of agile, skills-based strategies is not merely beneficial—it is imperative. Those who champion this approach will cultivate a workforce that's not just resilient and adaptable, but one that is primed to thrive in the face of constant change, setting new benchmarks for innovation and success in the global marketplace.
Acknowledgements
Madeline Newman | AI Forum New Zealand
Patrick Sullivan | Google
Tom Maasland | MinterEllisonRuddWatts & NZTech
Professor Michael Whitbrock | University of Auckland
Melissa Crawford | Tech with Heart
Perrin Rowland | AcademyEX
Paul Collins | SkillsTX
Daniel Merriott | Digital Skills Agency & SFIA Foundation
James Rameil | OneNZ
Tina Wilkerson | Chorus
Patricia de Villa | Fraxional
Ren Saguil | Fraxional
Kevin Whiteman | Fraxional
We would like to acknowledge the use of generative AI tools, such as Google Gemini and Gamma, in the development of this report. These tools have been invaluable in helping us to research, write, and edit this document, saving us time and resources.