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a big idea or new invention can spur rapid growth. But not every company achieves results by taking expensive risks. Even in turbulent times with economic pressure and uncertainty in the marketplace, some businesses are getting ahead, while others are struggling or disappearing under the same pressure. Who are they, and what are they doing that others aren't?
A new report by Upwork highlights the success of a group of organizations it deems “Work Innovators.” The work marketplace company surveyed 1,500 companies and analyzed financial data to uncover trends and discover what Work Innovators have in common. These companies, roughly a quarter of the surveyed organizations (27 percent), are thriving while embracing new work approaches. They have found a strategy that works: creating a unified work model that includes distributed work, flexible hiring, and advanced technology such as generative AI. Upwork hopes that other companies facing challenges can use the Work Innovator model as inspiration and motivation to make changes that create the right conditions for innovation and positive business outcomes. We dove into the report to find out how Work Innovators are doing it and what other businesses can take away from their successful strategies.
Innovation without financial risk
There's a common perception that innovation is a risk that only well-funded tech companies can take, but Upwork’s data proves otherwise. The report found that business leaders don't have to choose between innovative working models and financial stability. In fact, it's quite the opposite. Work Innovators are exploring new ways of getting the job done beyond the traditional 9-5 in-person full-time workforce. While this may sound experimental and unstable, these companies are actually driving performance while cutting costs, boosting cash flow, and minimizing debt.
How are Work Innovators more financially disciplined?
lower operating expenses
greater likelihood to increase free cash flow
lower debt-to-equity ratio
30%
18%
13%
The perceived cost of innovation can make it seem contrary to stability. In reality, Work Innovators demonstrate sustained financial discipline, keeping costs down with internal efficiencies. They have a 13 percent lower debt-to-equity ratio than other companies surveyed — a metric investors use as a way to measure a company’s financial health. So while Work Innovators are adding flexibility to the way work is done, they are simultaneously adding financial stability to the business
Prioritizing barriers to success
There’s more to the Work Innovators strategy than financial discipline. Notably, they have found ways to push past obstacles that other companies are struggling to overcome. Take technology adoption, for example. There's bound to be some resistance when introducing new tools like AI in the workplace. Fear of change, lack of buy-in, and overall cultural opposition are classic hallmarks of innovation. When cars were invented, drivers were literally required to raise red flags and shoot off warning flares. While all companies face common barriers to innovation, Work Innovators seem to approach them differently.
The report shows their top two priorities are ethical concerns and skills gaps. With that in mind, these companies are thoughtful and careful about introducing new processes. Instead of forcing new tech into the workplace, they intentionally introduce it with transparency and support. Sixty percent of Work Innovators said they prioritize overcoming cultural barriers like resistance to change and lack of trust, while just 36 percent of their peers said the same.
benefits uncertainty
Lack of clear AI use cases
resistance
to change
integration challenges
Regulator Compliance
Cultural Barriers
Data Privacy/ Security
Cost
Concerns
skills gaps
Ethical concerns
least important
most important
benefits uncertainty
Lack of clear AI use cases
resistance
to change
integration challenges
Regulator Compliance
Cultural Barriers
Data Privacy/ Security
Cost
Concerns
skills gaps
Ethical concerns
How do Work Innovators rank common workplace obstacles or barriers?
These companies also invite employees to participate in innovation efforts. Nearly all (92 percent) Work Innovators solicit feedback from their people during the process of adopting new technology, while only 71 percent of their peers seek similar feedback. And 91 percent of Work Innovators engage employees to address concerns about new technologies, compared with 74 percent of their peers. Plus, they’re more likely to promote a feeling of optimism and excitement about technology, with 90 percent of Work Innovators celebrating milestones and successes related to tech adoption (in comparison to 76 percent of their peers).
So what defines an innovative workplace? The report shows that innovation doesn't always come with high costs, but with strategic leadership and priorities. By being flexible and open to new ideas about staffing and technology, Work Innovators have built resilient business models that can withstand external pressures beyond their control.
With that flexibility and new technology in mind, Upwork has recently introduced AI to its hiring platform. New capabilities include automated assistance that helps hiring managers quickly create job postings and identify top talent matches. Now, with powerful analytics, they can make data-informed staffing decisions because they can easily see which freelancers have the relevant skills to meet their needs. Want to become Work Innovator? Visit Upwork Updates to find out how.
Build robust training and support resources:
Ethical concerns
skills gaps
Cost
Concerns
Data Privacy/ Security
Cultural Barriers
Regulator Compliance
integration challenges
resistance
to change
Lack of clear AI use cases
benefits uncertainty
Work Innovators
Non-Work Innovators
Of course, sometimes, market demands fluctuate, and upskilling the workforce is only one part of the equation. In those cases, Work Innovators aren’t afraid to supplement their teams by bringing in reinforcements. They connect with external partners like freelancers and consultants with specialized expertise. The report found that Work Innovators are 1.6 times more likely to plan to add more freelancers to their roster in the next year, and they are 61 percent more likely to use managed services partners (think outsourced IT departments or subcontracted customer support) to meet the demands of a distributed, flexible, and tech-driven workplace.
A people-centered approach to tech
Work Innovators put people at the center of their technology strategies, with 89 percent saying they keep employees informed about the benefits and impacts of technology adoption (vs. 76 percent of non-Work Innovators). This transparency aids in building confidence and comfort with new technology, since changes don't come as a surprise. Trust is also baked into the business strategy, with 79 percent of Work Innovators saying they actively work to build trust and relationships across the workforce. Meanwhile, just half (50 percent) of non-Work Innovators said the same.
Click the circles above to see how non-Work Innovators rank workplace obstacles or barriers
least important
most important
How do companies include employees when integrating new technology?
Inform employees about benefits of tech adoption:
76%
Solicit feedback throughout the process:
Work Innovators
Non-Work Innovators
71%
92%
89%
Work Innovators
Non-Work Innovators
74%
90%
Sixty percent of Work Innovators said they prioritize overcoming cultural barriers like resistance to change and lack of trust, while just 36 percent of their peers said the same.
A healthy dose of caution isn't the worst thing, after all. People may hesitate to use new tools for good reason — simply slapping a new technology onto an old system won't get results. That’s why the majority of Work Innovators (63 percent) focus on skilling their workforce, compared to just 37 percent of their peers. Plus, Work Innovators align their new technology with existing infrastructure so it actually helps meet business goals. For example, Upwork reports that Work Innovators are more advanced with cloud computing than their peers, which enables them to better integrate and expand their tech stacks.
And most importantly, these companies foster ethical engagement with their people and new technologies like AI. The report found that Work Innovators dedicate resources — budget, staffing, and infrastructure — to encourage experimentation at work. They put support in place to train employees so they have the skills needed to get the job done, as the demands and tools required to stay competitive continue to evolve. Ninety percent of Work Innovators said they provide robust training and support resources, compared with 74 percent of non-Innovators. This proactive approach to handling ethical concerns and skills gaps keeps employees engaged and productive, even as external conditions shift.
ontrary to popular belief, companies don't necessarily need massive budgets or risky business moves to succeed. Sure, occasionally,
Editor: Kelly McSweeney | Art Director: Becky Joy
Editor: Kelly McSweeney | Art Director: Becky Joy
Partner Content From
Organizations that are not just surviving, but thriving can teach us something about
the future of work.
What defines an
innovative
workplacE?
Organizations that are not just surviving, but thriving can teach us something about
the future of work.
innovative
workplacE?
What defines an
budgets or risky business moves to succeed. Sure, occasionally, a big idea or new invention can spur rapid growth. But not every company achieves results by taking expensive risks. Even in turbulent times with economic pressure and uncertainty in the marketplace, some businesses are getting ahead, while others are struggling or disappearing under the same pressure. Who are they, and what are they doing that others aren't?
A new report by Upwork highlights the success of a group of organizations it deems “Work Innovators.” The work marketplace company surveyed 1,500 companies and analyzed financial data to uncover trends and discover what Work Innovators have in common. These companies, roughly a quarter of the surveyed organizations (27 percent), are thriving while embracing new work approaches. They have found a strategy that works: creating a unified work model that includes distributed work, flexible hiring, and advanced technology such as generative AI. Upwork hopes that other companies facing challenges can use the Work Innovator model as inspiration and motivation to make changes that create the right conditions for innovation and positive business outcomes. We dove into the report to find out how Work Innovators are doing it and what other businesses can take away from their successful strategies.
Innovation without financial risk
There's a common perception that innovation is a risk that only well-funded tech companies can take, but Upwork’s data proves otherwise. The report found that business leaders don't have to choose between innovative working models and financial stability. In fact, it's quite the opposite. Work Innovators are exploring new ways of getting the job done beyond the traditional 9-5 in-person full-time workforce. While this may sound experimental and unstable, these companies are actually driving performance while cutting costs, boosting cash flow, and minimizing debt.
Click the circles on the left to see how non-Work Innovators rank workplace obstacles or barriers
non-Work Innovators
Work Innovators
Non-Work Innovators
Work Innovators
Non-Work Innovators
Non-Work Innovators
