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Your Hiring Pulse report for May-June 2024

Alexandros Pantelakis — Tue, 11 Jun 2024 13:00:00 +0000

April’s Hiring Pulse presented some striking observations. Job postings have significantly decreased compared to previous years, and the candidate pool returned to more manageable levels.

This double edition of Hiring Pulse will delve into these matters further, offering insights into what unfolded in the market during April and May. Let me remind you that the data we’re examining is based on the completed months prior to the current period.

Let’s begin.

How we’re looking at data

We’ve adopted two methodologies in how we look at the Hiring Pulse dataset. For Time to Fill and Candidates per Hire, we’re measuring each month using the average of 2019, the last “normal” year, as a baseline index of 100.

For job openings, we’re taking a different route – simply, the average number of job postings per company. This gives us the opportunity to gauge overall recruitment activity and whether that’s going up or down.

Want a more detailed methodology? Jump to the end and check it out.

As always, we look at the worldwide trends for three common SMB hiring metrics:

Time to Fill (TTF)

Total Job Openings (JO)

Candidates per Hire (CPH)

Let’s start analyzing!

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important to understand that definition: jobs that are still open as of the end of May are not included in this graph as they don’t yet have an “end date”. Only the jobs that are filled are included here.

Quick clarification: the data in this chart shows the trendline against the 2019 average as an index of 100, not the actual number of days in TTF.

Let’s have a look at the monthly TTF trend through to the end of May against the average of 2019, based on jobs that have been filled:

As noted in our previous edition, there is little fluctuation in the Time to Fill Metric this time around. It increased modestly by 1.1 points, from March’s 81.5 to April’s 82.6. However, in May, we see a drop of 1.8 points, mirroring last year’s pattern.

We’ve previously observed that January’s spike is likely due to hiring teams being stretched thin over the holiday season, with the return to ‘normal’ levels in February and beyond resulting from teams catching up on filling crucial roles within their organizations.

This month follows the same trend – just business as usual. This is reassuring until you examine the next metric – Job Openings.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

As stated above, we’re displaying this as an average of job postings per company in the network. And because this is not contingent on job opened/filled dates like TTF and Candidates per Hire, we can simply look at the raw job open numbers up to the end of May.

As usual, examining the four company size categories – 1-50, 51-200, 200+, and the overall average – reveals interesting insights.

The key statistic to focus on is the average number of job postings across all company sizes within the entire Workable network. This figure has decreased to 8.1 job postings per company on average in April and May, down from 8.6 in February and 8.2 in March. Notably, this shows stability compared to the same period last year, when the numbers were down by almost 1 point.

However, trends differ within the enterprise-level category (200+ full-time employees). This group saw an average of 16.5 new job postings in March, increasing to 17.3 in April and slightly decreasing to 17 in May.

Medium-sized businesses (51-200) experienced a notable drop in March (6.8), followed by an increase to 7.5 in April and a slight decline to 7.1 in May.

Small businesses (1-50) have shown relatively stable activity, with 6.8 job postings in March, 6.4 in April, and 6.5 in May.

Remember the example we shared in our previous edition? Let’s update it with May’s numbers:

For a typical enterprise-level company with 250 employees, May’s average of 17 job openings means 6.8% of the payroll is looking for new hires—one in every 14.7 positions needs filling.

For medium-sized businesses with around 125 employees, 7.1 job postings in May translate to 5.7% of the workforce, or one in every 18 employees. These companies are hiring slightly more per capita than in March.

In small businesses with about 25 employees, May’s 6.5 job postings mean a significant 26% of the workforce needs replacing or hiring for new roles—more than one in four employees. Imagine in a small office, for every four people, one is a new hire. This makes quick onboarding crucial, as delays can be costly for small, agile businesses.

You might be curious about how all of this compares to previous years, especially since we’ve covered it in the last couple of our editions.

Note: this is calculated a little differently. For the sake of direct comparison, we’re using January of each year as our baseline index of 100.

3. Candidates per Hire

Workable defines the number of candidates per hire (CPH) as, succinctly, the number of applicants for a job up to the point of that job being filled. Again, remember, this is a trendline using the 2019 CPH average as a baseline of 100, not the actual number of candidates per hire.

Let’s look at what’s going on here through April and May:

Enough with the roller coaster effect. Candidates are actively seeking new opportunities after a prolonged period of decline.

For those who need a refresher, the Candidates per Hire metric has been steadily climbing (with occasional months of moderate drops or stabilization) since around mid to late 2022. Then, suddenly, there was a dramatic drop. If the shift from January’s 189.9 to February’s 182 felt significant, then the drop to March’s 161.6 was nothing short of dramatic.

But now, rejoice! April and May show a stable increase, with 175.2 candidates per hire. This echoes figures from last August, but we’re feeling more optimistic now, hoping this trend will continue to rise. Another roller coaster ride? Hopefully not.

Since we’re conducting year-over-year comparisons in this report, let’s apply that to CPH as well.

Here’s a new observation. Through year-over-year comparisons, it’s evident that this year deviates from the trend of previous years, which typically saw a decrease during this period, suggesting a possible seasonality. Why might that be?

Candidates are actively searching for opportunities post-March, and we believe there are two main reasons for this. Firstly, there are fewer job openings this year, and secondly, layoffs are on the rise. Consequently, candidates are casting a wider net and submitting their resumes to more open positions than they did previously.

Let’s delve deeper into this.

What’s going on here?

The current job market appears to be tightening, with fewer available job openings and more candidates applying for each position compared to the typical trend for this time of year.

This shift in the job market is likely influenced by economic factors, such as layoffs, which are compelling candidates to conduct more extensive job searches. Companies may find themselves receiving more applications per open position, while job seekers may face increased competition in their pursuit of new opportunities.

One way to stay pace with your competition is not just to maintain product competitiveness, but to also acquire and retain the best talent that’s out there. A solid HR suite may be what you need to stay up there atop the hill.

See you next month!

Thoughts, comments, disagreements? Send them to content@workable.com, with “Hiring Pulse” in the subject heading. We’ll share the best feedback in an upcoming report. Watch for our next Hiring Pulse in July!

The Hiring Pulse: Methodology

Because one of the three metrics (Job Openings) is different from the other two metrics (Time to Fill and Candidates per Hire), we’re adopting two very distinct methodologies.

To bring the best insights to small and medium (and enterprise-level) businesses worldwide, here’s what we’re doing with the Job Openings metric: we’re taking the number of job openings in a given month and dividing that by the number of active companies in our dataset, and posting that as an average. For example, if July 2022 shows the average Job Openings per company as 7.7, that simply means each company posted an average of 7.7 jobs that month.

For the Time to Fill and Candidates per Hire metrics, we’re comparing a specific month’s trend against the full average of 2019, and we show the result using that 2019 average as a baseline index of 100. For example, if July 2022 shows an average Time to Fill of 30 days for all jobs, and the monthly average for all of 2019 is 28, we present the result for July 2022 as 107.1 – in other words, 7.1% higher than the average of 2019.

And we chose 2019 as the baseline because, frankly, that’s the last normal year before the pandemic started to present challenges to data analysis among other things.

The majority of the data is sourced from businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

The post Your Hiring Pulse report for May-June 2024 appeared first on Recruiting Resources: How to Recruit and Hire Better.

Your Hiring Pulse report for April 2024

Content team — Tue, 09 Apr 2024 12:35:01 +0000

In March’s Hiring Pulse, we looked at year-over-year comparisons through different lenses in our data.

And this time, we find the differences even more striking. Let’s have a look and understand what those differences are – and more so, what they mean.

How we’re looking at data

Want a more detailed methodology? Jump to the end and check it out.

As always, we look at the worldwide trends for three common SMB hiring metrics:

Time to Fill (TTF)
Total Job Openings (JO)
Candidates per Hire (CPH)

Let’s start analyzing!

Main highlights

The three main highlights for this month’s Hiring Pulse are:

Job opening trend bleaker than in past years
Talent pools are shrinking – sharply
Q1 of 2024 looks very different compared with previous Q1s

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important to understand that definition: jobs that are still open as of the end of January are not included in this graph as they don’t yet have an “end date”. Only the jobs that are filled are included here.

Quick clarification, because people are asking: the data in this chart shows the trendline against the 2019 average as an index of 100, not the actual number of days in TTF.

Got that? Good. Let’s have a look at the monthly TTF trend through to the end of March against the average of 2019, based on jobs that have been filled:

You might find this refreshing, or you might not: there isn’t much undulation either way this time around for March’s Time to Fill Metric, which dropped a humble 1.1 points from February’s 82.6 to March’s 81.5.

We noted in past Hiring Pulses how January’s spike is likely the result of strained bandwidth in hiring teams over the holiday season and the fall back to ‘normal’ levels in February being a result of teams catching up in filling crucial roles in their organization.

This month is more of the same – just business as usual Which is nice, until you look at the next metric – that of the Job Openings.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

As stated above, we’re displaying this as an average of job postings per company in the network. And because this is not contingent on job opened/filled dates like TTF and Candidates per Hire, we can simply look at the raw job open numbers up to the end of March.

As usual, when we’re looking at four different company size buckets here – the 1-50, the 51-200, the 200+, and all of them combined – we’ll always find an interesting story to tell.

The overarching stat you want to look at is the average number of job postings across all company sizes throughout the entire Workable network. That number is down to 8.2 job postings per company on average in March, which is down from 8.7 in January and 8.6 in February.

The enterprise-level bucket (with 200+ full-time employees) is also down in job activity, from 18.5 new job postings on average in January to 17.1 in February and now, 16.5 in March.

Medium-sized businesses (51-200) saw a more dramatic drop – down one full job posting on average from 7.8 in February to 6.8 in March.

The small businesses (1-50), at least, show relatively stable activity – 6.8 in January, 7 in February, and back to 6.8 in March.

And let’s put all of this in perspective: for analysis’ sake, let’s say the typical enterprise-level company has 250 employees. March’s 16.5 jobs on average would mean 6.6% of the entire company’s payroll is, technically, looking for new people to pay. That’s one in 15 job positions across the company needing to be filled/backfilled in March.

Encompassing anywhere from 51-200 employees, our medium-sized businesses bucket covers a wide spectrum, but let’s just say 125 for this analysis. March’s 6.8 job postings translates to 5.4% of the company’s employee base, or roughly one in 18 employees.

So, in a sense, companies with 125 employees are hiring less per capita than companies with 250 employees.

Now, when we look at small businesses, the difference stands out. Since we picked the middle of the range for medium-sized businesses (125, based on 51-200), let’s use 25 as our employee size for a small business. In this case, March’s 6.8 equates to a staggering 27.2% of all employees in the company. That’s more than one in four employees.

Imagine going into your office and for every Thomas, Shiloh, Hassan, and yourself, one of you is the “new hire”. That’s a sizable portion, especially impactful when you’re a small business that thrives on agility. A quick onboarding for any new hire is a must in this area – and a delayed time to full ramp (i.e. full production) can prove costly for you.

OK, enough of that. You may be wondering how all of this compares to previous years, especially since we did it last month. We talk a lot about the “new normal”, or in Ida Wolfe’s case, the “never normal”. So, what’s normal for March?

Note: this is calculated a little differently. For the sake of direct comparison, we’re using January as our baseline index of 100.

Obviously, 2020 was a gong show starting in March, so let’s set that one aside and look at the other years in our dataset. You can see how 2024 is the only year out of the five other years where there’s a drop in job posting activity. Every other year (again, 2020 excluded), we see a healthy upswing in jobs for March. Not this year.

OK, what does that look like for each of the size buckets? First, the companies with 1-50 full-time employees:

Small businesses have been a feel-good story over the last little while for the most part – but when we look at it through this specific year-over-year lens, we see that, again, the first quarter of this year doesn’t look great compared with previous years (again, ignoring 2020 as an obvious anomaly).

And moreover, this year shows the only February-March decline of any year in our dataset.

Let’s look at the 51-200 FTE size bucket now:

Like the 1-50 FTE size bucket, the mid-range companies (51-200) paint an equally bleak picture for the first quarter of the new year. Again, when omitting 2020, this year’s the only one that takes a sharp nosedive from February to March 2024. And it’s a pretty steep one, too.

Now – the 200+ FTE companies:

The enterprise-level companies also see a drop from February, but the difference from the other two size buckets is that the drop is not nearly as pronounced as the one seen from January to February. That’s the opposite of what we saw last month, where this category saw the biggest month-to-month drop not only when compared with the other sizes, but any Jan-Feb drop of any year for any bucket.

Interesting. And unlike previous Hiring Pulse reports, there’s actually even more eye-opening stuff coming up, this one in the Candidates per Hire metric.

3. Candidates per Hire

Workable defines the number of candidates per hire (CPH) as, succinctly, the number of applicants for a job up to the point of that job being filled. Again, remember, this is a trendline using the 2019 CPH average as a baseline of 100, not the actual number of candidates per hire.

Let’s look at what’s going on here through March:

Remember that time on the roller coaster in [insert town here]? How you were slowly climbing up the tracks with a rhythmic clickety-clack clickety-clack, until you reach the top and then all of a sudden you’re careening down the other side so your heart basically goes up your throat?

Well, this is the metric version of that – the Candidates per Hire metric, which has been in a steady upward climb (with a month or two here of moderate drops or stabilization) since basically mid–late 2022, is suddenly coming down in a dramatic drop. If January’s 189.9 to February’s 182 felt like a lot, then February’s 182 to March’s 161.6 is, in a word, dramatic.

That’s a drop of 20.4 points – the biggest since a 30.2-point drop from October to November 2020, and the second-biggest drop in all our records dating back to January 2019.

Since we’re doing year-over-year comparisons in this report, let’s do that for CPH as well:

Two different ways to look at this. Either candidate pools are in rapid decline, or they’re simply returning to the “normal” of previous years after being so high for so long.

Let’s now go into what we think all this may mean.

What’s going on here?

Perhaps all the tumult around layoffs, restabilization (as opposed to destabilization), the talent shift, and so on has meant new jobs popping up and those getting filled in quick order.

We mentioned the talent shift – Trevor Bogan over at Top Employers Institute wrote a little about this and we’ll get a little deeper about it here. It’s basically how old talents and skills aren’t necessarily becoming redundant or obsolete; they are simply no longer in need in some areas and in greater need in other areas. The same for goods and services – some lessen in importance and value, and others grow in value over that same time period.

So is there really job loss? Maybe to a degree, as we’ve seen in layoffs. But it’s more of a groundshift.

Think about what happened during COVID. If you were lucky enough to have a fully online platform, especially in the area of communication, delivery, or something similar, the demand for your software likely skyrocketed during the pandemic when the majority of society operated on a remote basis both at work and at play.

Now, we have AI which is one of the more exciting developments to come along in a long time. It’s also disrupted our society to a point where those already operating in AI technology are very optimistic about times ahead – a recent Deloitte report finds 62% of leaders from AI-fueled orgs are excited about what’s coming up.

And 79% expect generative AI to change the way in which they operate over the next three years. A bulk of that is in coding, especially – which is one example of a sector facing considerable upheaval (if not redundance) in the age of AI.

There’s reason to be cautious (and you’re in good company if you are – 30% feel uncertain about it all), but if you’re not one of the early adopters of new technology and able to adapt quickly to new developments, your company may fall behind.

See you next month!

The Hiring Pulse: Methodology

Because one of the three metrics (Job Openings) is different from the other two metrics (Time to Fill and Candidates per Hire), we’re adopting two very distinct methodologies.

And we chose 2019 as the baseline because, frankly, that’s the last normal year before the pandemic started to present challenges to data analysis among other things.

The majority of the data is sourced from businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

The post Your Hiring Pulse report for April 2024 appeared first on Recruiting Resources: How to Recruit and Hire Better.

Your Hiring Pulse report for February 2024

Keith MacKenzie — Mon, 12 Feb 2024 19:14:33 +0000

In January’s Hiring Pulse, we took a full deep dive into how each of the past several years compared against each other and came out of it with interesting stuff.

Now it’s February – and we have the opportunity to look at how this year started in each of the three hiring metrics. And we have insights for you.

Let’s take a look!

How we’re looking at data

As always, we look at the worldwide trends for three common SMB hiring metrics:

Time to Fill (TTF)
Total Job Openings (JO)
Candidates per Hire (CPH)

Let’s start analyzing!

Main highlights

The three main highlights for this month’s Hiring Pulse are:

January 2024 marked a record high in the Time to Fill metric
Job openings also saw a dramatic surge in January
Candidates Per Hire is at an all-time high and at a trend directly contrasting with past Januarys

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important to understand that definition: jobs that are still open as of the end of January are not included in this graph as they don’t yet have an “end date”. Only the jobs that are filled are included here.

Quick clarification, because people are asking: the data in this chart shows the trendline against the 2019 average as an index of 100, not the actual number of days in TTF.

Got that? Good. Let’s have a look at the monthly TTF trend through to the end of January against the average of 2019, based on jobs that have been filled:

What we see here is a significant jump in the Time to Fill metric. January 2024’s 88.9 is at its highest point since exactly one year ago when the trend hit 90.4 in January 2024.

But that’s not the big story. The month-over-month jump from December to January is the biggest single-month climb in all our data going back to the start of 2019.

Apart from that, nothing is terribly unusual here. The January jump is fairly standard, from what we’ve seen in the past four years:

Now, let’s look at the job openings.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

The first thing to jump at us is, like in the TTF trend, the sudden jump from December’s 6.8 job postings per company on average to January’s 8.7 – that’s for all companies in the Workable network.

Again, like the TTF trend, this is normal when looking at past years. December 2021 to January 2022 was 5.2 to 6.6, and December 2022 to January 2023 was 5.2 to 6.6 again. This means one thing – the jump is not unusual, but the raw numbers are definitely higher.

The other element to look at is how each company size bucket is doing in this trend. Small businesses (with 1-50 full-time employees – or FTEs) jumped from 6 job postings on average in December to 6.6 in January, while enterprise-sized businesses (200+ FTEs) saw a dramatic jump from 13.5 to 19.4.

That last part is significant in that it’s the busiest month for enterprise companies since June 2022 which saw 20.3 job postings on average, and the single biggest month-over-month jump in average job postings in all network data.

The busy-ness of mid-sized businesses (51-200 FTEs) is the big story here. After a rather middling 2023 in terms of job posting activity where small business job activity matched or even exceeded mid-sized businesses in terms of volume, mid-sized job postings took a flying leap from 4.6 job postings on average to 7.9 in January. That’s not quite double the previous month but it’s pretty close.

Now, the Candidates Per Hire metric:

3. Candidates per Hire

Workable defines the number of candidates per hire (CPH) as, succinctly, the number of applicants for a job up to the point of that job being filled. Again, remember, this is a trendline using the 2019 CPH average as a baseline of 100, not the actual number of candidates per hire.

Let’s look at what’s going on here through January:

This is absolutely an employers’ market and it’s the same narrative again in this new Hiring Pulse. The Candidates Per Hire trend is again at an all-time high, this time jumping to 184.8 in January.

But for once, that’s not the big story. If we’re talking about a surge in the number of candidates per job, that’s boring. If we talk about it in year-over-year comparison, then it’s interesting.

In the same way that we’ve looked at TTF and JOs, let’s have a look at what Nov-Dec-Jan look like in past years for the CPH trend:

See that? 2021-2022 aside, you can see how a rise in the CPH trend from November to December followed by a dip in January is ‘normal’.

But this time around, we do see the normal jump from November 2023’s 173.5 to December’s 180.6 – but then that’s followed by another jump from December’s 180.6 to January 184.8.

It’s not a huge jump relatively speaking. After all, we’ve seen numerous double-digit month-over-month jumps especially in the first half of 2023, highlighted by a staggering 34.8-point increase from May to June 2023. But it’s still noteworthy because it absolutely goes against the normal trend.

So what’s normal is not normal, and what’s not normal is normal. Get it? No? Never mind – it kind of makes sense if you try and think on it too much.

What’s going on here?

It’s clear that the job market is undergoing a significant transformation, marked by a volatile yet dynamic landscape. The notable increase in the Time to Fill metric coupled with a surge in job openings and an unprecedented high in Candidates Per Hire, underscores a period of intense activity and change within the job market.

Let’s take the optimistic approach: this period is characterized not only by the challenges it presents but also by the unprecedented opportunities it offers to both employers and job seekers alike.

The advent of “easy apply” (lazy apply?) and “one-click apply” options has changed the job application process. It’s not just “throw everything at the wall and see what sticks” – it’s much more calculated than that, and it’s further enhanced by AI-driven platforms – even a fully AI-enabled job application experience.

Employers, too, have incorporated AI technologies like Workable to manage the influx of applications – ensuring a smoother and more effective hiring process.

You might even say we’re in a weird Cold War state where the battling technologies of the jobseeker and the hiring team continually keep pace with each other. Well, it’s not actually a Cold War since both are actively making moves – but you get the idea.

Will we reach a point where the robots will do both en masse while we languish at the beach? No, probably not – Workable’s AI in Hiring & Work survey finds that more than one in seven hiring managers still take a solely human approach to making that final hiring decision, while another 56.8% say they take a predominantly human approach with the support of AI tools.

But the more interesting part is this: 353,000 new jobs were added in January in the United States, and 141 tech companies slashed 34,250 jobs in 2024 as of this report’s publication.

These figures suggest that jobs are not disappearing. Rather, they’re changing, evolving, and migrating across industries and sectors – and yes, skill sets. This points to a highly volatile job market, and also a landscape ripe with opportunities for adaptation and growth.

This job market is absolutely in flux with all the rapid changes in the economy and emergence of new paradigms and technologies in employment. But jobs are not vanishing – they’re transforming, offering new pathways for both employers and job seekers to explore and adapt to the changing dynamics of work.

For you – agility, innovation, and a forward-looking approach are key to harnessing the opportunities that lie ahead. Enjoy, and see you next month!

The Hiring Pulse: Methodology

Because one of the three metrics (Job Openings) is different from the other two metrics (Time to Fill and Candidates per Hire), we’re adopting two very distinct methodologies.

And we chose 2019 as the baseline because, frankly, that’s the last normal year before the pandemic started to present challenges to data analysis among other things.

The majority of the data is sourced from businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

The post Your Hiring Pulse report for January 2024 appeared first on Recruiting Resources: How to Recruit and Hire Better.

Your Hiring Pulse report for January 2024

Keith MacKenzie — Tue, 09 Jan 2024 22:17:05 +0000

In December’s Hiring Pulse, we took a deep dive into UK & Ireland hiring data and the lesson was clear: SMB hiring data isn’t all the same across the world’s many regions (and countries and even sectors).

It also means that with a full year of 2023 in our databank, we have the opportunity to do another kind of comparison in this month’s Hiring Pulse. In short: we can compare what 2023 looks like against preceding years in our three major hiring metrics.
So, let’s get started on that!

How we’re looking at data

As always, we look at the worldwide trends for three common SMB hiring metrics:

Time to Fill (TTF)
Total Job Openings (JO)
Candidates per Hire (CPH)

Let’s start analyzing!

Main highlights

The three main highlights for this month’s Hiring Pulse are:

Early 2020 and late 2023 both show huge variation from the norm
Small businesses were especially active in hiring in the second half of 2023
The Great Candidate Surge is the biggest story of 2023

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important to understand that definition: jobs that are still open as of the end of December are not included in this graph as they don’t yet have an “end date”. Only the jobs that are filled are included here.

Quick clarification, because people are asking: the data in this chart shows the trendline against the 2019 average as an index of 100, not the actual number of days in TTF.

Got that? Good. Let’s have a look at the monthly TTF trend through to the end of December against the average of 2019, based on jobs that have been filled:

What’s glaringly obvious here are the years 2020 and 2023 in how much they stand out from 2021 and 2022.

First, the year that shall not be mentioned again (OK, fine, it’s 2020 if you’re wondering) saw a pretty significant shift downwards in the Time to Fill trend from the start of the pandemic through to September of that year.

Note how drastic the drop is – it’s well above the other three years in the first quarter including 102.6 in March 2020, the highest in this particular dataset.

And then, like the first drop in a roller coaster ride, it plummets to 82.7, the fifth lowest month of the 48 months and easily the steepest plunge of any period in that time period. It became incredibly quick to fill open roles – like poking holes in a dam, the water comes rushing through and those openings get filled right away.

Now, look at 2023. While it doesn’t look so unusual compared with 2021 and 2022 to start off the year, it does hover at a very low level throughout the entire year without the more significant undulations that we see in 2021 and to a lesser degree, in 2022.

Now, let’s look at the job openings.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

Let’s first look at ALL job openings across the board for each of the four years. Remember, this is average jobs per company. You can see how the years are mostly similar, apart from the dip at the start of the pandemic in early 2020 from 4.4 job openings per company in January 2020 to half that in April (2.2).

Like TTF, this is the steepest drop of any period between 2020 and 2023.

And there’s also a significant growth in the latter few months of 2023 – most notably going from 7.1 in July 2023 to a high of 8.3 in October of that year.

Job openings – small businesses

In the small business category (those with 1-50 full-time employees or FTEs), the two most interesting developments over the last four years are, again, in early 2020 and late 2023.

That being said, the drop in job openings in early 2020 wasn’t nearly as pronounced for small businesses as it was for all businesses, going from 2.1 job postings per company on average in January 2020 to a low of 1.3 in April 2020. It’s not half of what it was, but it’s still significant enough.

The jump in the latter part of 2023, while more pronounced than the overall average, is still pretty much aligned with the baseline.

What you should pay attention to is the sheer number of job postings per company in this size bucket – take October’s 6.8 for instance. Even for a company with 50 FTEs, that’s a new job posting for every seven employees. Either there’s a lot of turnover, or there’s a lot of growth in this category, or a lot of both.

Job openings – mid-sized businesses

Mid-sized businesses (51-200 FTEs) also saw a significant drop in average jobs posted in the early part of 2020, but the real story is the bump in the latter part of 2023 where average jobs per mid-sized company jumps to 6.7 in November.

The eye-opening part? Even though we’re talking about companies that essentially have five times the employee count as those in the small-business bucket, the average job postings per company here is lower than that for small businesses in three of the last four months (6.3 vs. 6.5 for September, 6 vs. 6.8 for October, and 4.5 vs. 6 for December 2023).

Job openings – enterprise-level companies

For enterprise-level companies (200+ FTEs), we see a very different story. While the early-2020 drop isn’t out of the ordinary when compared with the other size buckets, the trend for 2023 is entirely different. The others saw a jump in average job postings – this category didn’t.

Between March and October, the job posting activity barely changed from a low of 19.3 to a high of 20.7 and that’s it.

Now, the Candidates Per Hire metric:

3. Candidates per Hire

Workable defines the number of candidates per hire (CPH) as, succinctly, the number of applicants for a job up to the point of that job being filled. Again, remember, this is a trendline using the 2019 CPH average as a baseline of 100, not the actual number of candidates per hire.

Let’s look at what’s going on here through December:

The big story in 2023 is clear. On the heels of the Great Resignation and the Great Discontent, we witnessed the Great Candidate Surge.

It’s all the more remarkable considering that, in 2020, unemployment jumped from 4.4% in March to 14.9% in April – you’d think there would be that many more candidates applying for any open job as a result, especially since job posting activity nearly came to a screeching halt.

But, instead, what we see in the second half of 2023 is a significant surge in the Candidates Per Hire trend and a jump in job posting activity during the same time.

One might even think that 2023 is much more eventful economy-wise than 2020 was, and they may be right. We saw a lot happen in the job landscape during the year.

What’s going on here?

The ebb and flow of the Time to Fill, the varied landscape of job openings, and the unexpected surge in candidates per hire in 2023 – these aren’t just numbers. They represent a vivid picture of the dynamic and ever-evolving world of hiring as of late.

The data, of course, isn’t absolute truth – but it’s a gateway to understanding the multifaceted fabric of economic shifts, industry-specific nuances, and business strategy upheavals in a labor market that’s seen numerous ebbs and flows in a short time.

So what does this all mean, anyway? It means you’re navigating a kaleidoscopic hiring environment. Imagine posting a job ad and weathering the onslaught of applications. This doesn’t have to be a Sisyphean undertaking – it’s just a call to arms for flexibility and innovation in your hiring strategy.

It means taking on cutting-edge hiring tools in your work – and yes, that does include AI in its various forms. The use of AI in the hiring process is clearly documented in this new Workable survey, and it’s no longer a nice-to-have; it’s a necessity.

Watch this space for deeper dives in 2024 as we work to find interesting trends between industries, regions, and even job function. If you like numbers, or if you want to compare your own hiring experiences with a baseline, you’ve come to the right place.

Enjoy, and see you next month!

The Hiring Pulse: Methodology

Because one of the three metrics (Job Openings) is different from the other two metrics (Time to Fill and Candidates per Hire), we’re adopting two very distinct methodologies.

And we chose 2019 as the baseline because, frankly, that’s the last normal year before the pandemic started to present challenges to data analysis among other things.

The majority of the data is sourced from businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

The post Your Hiring Pulse report for December 2023 appeared first on Recruiting Resources: How to Recruit and Hire Better.

Your Hiring Pulse report for December 2023

Keith MacKenzie — Mon, 11 Dec 2023 17:59:48 +0000

In November’s Hiring Pulse, we noted a huge drop in new jobs in the United States from 336,000 in September to 150,000 in October.

But now that’s changed again. Last month, the United States saw 199,000 new jobs added – the bulk of it in healthcare, social assistance, government, leisure, and manufacturing, Retail, on the other hand, lost a collective 38,400 jobs in November.

UK data is not yet released to the end of November, but we do have good news: we have our own network data from the UK & Ireland which will be our deep dive for this month.

Without further ado, let’s look at the three major hiring metrics as per the Hiring Pulse tradition.

How we’re looking at data

As always, we look at the worldwide trends for three common SMB hiring metrics:

Time to Fill (TTF)
Total Job Openings (JO)
Candidates per Hire (CPH)

Let’s start analyzing!

Main highlights

The three main highlights for this month’s Hiring Pulse are:

Candidates per Hire sees its third-biggest MoM drop of the year
Time to Fill is dropping, and that’s unusual at this time of year
Small businesses are hiring much more than medium-sized businesses in the UK & Ireland

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important to understand that definition: jobs that are still open as of the end of November are not included in this graph as they don’t yet have an “end date”. Only the jobs that are filled are included here.

Quick clarification, because people are asking: the data in this chart shows the trendline against the 2019 average as an index of 100, not the actual number of days in TTF.

Got that? Good. Let’s have a look at the monthly TTF trend through to the end of October against the average of 2019, based on jobs that have been filled:

Last month, we pointed enthusiastically to the three consecutive months of increase in the Time to Fill trend from August through to October – but now, that trend has come back down rather dramatically from a 2023 high of 85.2 in October to 82.1 in November.

November sees the year’s third-lowest TTF trend after May’s 80.6 and March’s 81.7. The drop of 3.1 points from October to November also marks the third-biggest drop from one month to the next after January’s 90.7 to February’s 86.2 (a drop of -4.5), and February’s 86.2 to March’s 81.7 (also -4.5).

So, is this… normal? Sorta. First, let’s look at the Jan-Feb-March change in the TTF for the years going back to 2020:

Looks sorta normal from here, apart from some stragglers. 2020 and 2022 look roughly the same – a dip from January to February followed by a rebound in March. 2021 and 2023 both follow the same downward trajectory for the TTF trend.

Now, look at how the different years compare for September-October-November:

Note that while September to October vary depending on the year, October to November looks very stable for 2020, 2021, and 2022.

2023 on the other hand… a huge drop that doesn’t look seasonal at all if you’re comparing it against previous years in the same time period.

Let’s move to the job openings.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

We noted last month how small businesses (1-50 full-time employees) were more active than their mid-market (51-200 FTEs) peers in October – that’s reversed now. Those in the mid-market bucket have rebounded in new job activity from 5.9 jobs per company in October to 6.6 in November.

Meanwhile, that big jump for enterprise-level companies (200+ FTEs) is now all but erased with a drop from 17.6 jobs per company in October to 16.6 in November. That’s a drop of one full job posting per company. The overall average – yes, slightly skewed by the enterprise-level data – also fell from 8.3 to 7.9 jobs per company on average.

Moving right along to the Candidates Per Hire metric:

3. Candidates per Hire

Workable defines the number of candidates per hire (CPH) as, succinctly, the number of applicants for a job up to the point of that job being filled. Again, remember, this is a trendline using the 2019 CPH average as a baseline of 100, not the actual number of candidates per hire.

Now that Let’s look at what’s going on here through November:

The broken record has now been… broken for the moment, at least. After all those month-over-month increases dating back to the end of 2021 – with the exception of a few mostly anomalous drops – we’re seeing a pretty big drop in the Candidates per Hire trend.

In short, CPH dropped 10.8 points from 185.7 in October to 174.9 in November, the second-biggest drop since a 12.5-point drop from November to December 2021 – the only one higher was a 12-point drop from April to May this year.

Stating the obvious: a drop in CPH does not mean anything if it’s just another of the many anomalous drops over the past couple of years.

Now, let’s do our deep dive into the same data for the United Kingdom and Ireland.

Deep dive – UK & Ireland hiring metrics

Workable’s network data is broken out into five distinct regions around the world – North America, Latin & South America, Asia-Pacific (APAC), Europe / Middle East / Africa (EMEA), and finally, UK & Ireland.

The last region is our deep dive for this month. Let’s look at the three metrics in this regional bucket.

1. Time to Fill – UK & Ireland

What we saw in the worldwide data for the Time to Fill metric is reflected in UK&I as well – namely, a three-month sequence of TTF increases that end with a sharp plummet from 87.1 in October to 80.4 in November.

The difference is that the drop of 6.7 points is much more pronounced than the worldwide drop of 3.1.

2. Total Job Openings – UK & Ireland

Now here’s where things look different, in the job openings.

In the worldwide data, we noted how small companies (1-50 FTEs) and medium-sized (51-200 FTEs) were swapping spots in terms of job posting activities. And below, we’re re-sharing the chart above rather than overlay it with UK&I to reduce the amount of visual clutter:

But in the UK & Ireland, it’s very different. While companies in the medium-sized bucket are *almost* as active as in other parts of the world (5.6 job openings per company in UK&I vs. 6.6 worldwide), they absolutely pale in comparison to those in the small-sized bucket.

Small companies in UK&I are hiring at a torrid pace in September (11.5 jobs per company), October (10.7), and November (11.5) of this year, right on pace with the overall average.

Enterprise-level companies (200+ FTEs) are hiring even more in UK&I (18.9) when compared with worldwide (16.6) in November – and that’s been the case throughout most of 2023.

3. Candidates per Hire – UK & Ireland

The CPH trend, however, tells a very different story. Whi;le the CPH trend looks consistent between both UK&I and worldwide, two things stand out: first, the CPH trend topped out at 210.5 in September 2023 – a 147% increase over January 2022’s 85.2. That’s compared to a 111% increase from 84.7 to 179 worldwide.

The second thing to look at is just how much the CPH trend has dropped from 210.5 in September to 181.9 in October to 163.9 in November. That’s compared with a relatively stable worldwide trend of 179 in September to 185.7 in October to 174.9 in November.

What’s going on here?

Interesting, non? It just speaks to the reality that worldwide data can bring some insights but they do not tell the whole story. The real story is in the regions, the industries, and the functions – and especially, a intersectional approach to all of these for all three hiring metrics.

Hiring data isn’t the truth in itself and of itself – rather, it’s an opportunity for us to look at the complex interplay between macroeconomic trends, sector-specific challenges, and evolving employer strategies, particularly in the multiple undulating shifts in the global labor landscape.

So what does all that malarkey mean for you as an HR professional or hiring manager? It means you’re working in a multifaceted hiring landscape, especially if your company operates across borders and time zones. Imagine posting a job in this environment and managing the large volume of a diverse and shifting pool of candidates.

This doesn’t have to be an uphill climb – it simply underscores the importance of an adaptable, agile recruitment strategy that incorporates advanced tools and tech (including AI) in the attraction of top talent to your organization.

Enjoy the rest of the year, and see you in 2024!

The Hiring Pulse: Methodology

Because one of the three metrics (Job Openings) is different from the other two metrics (Time to Fill and Candidates per Hire), we’re adopting two very distinct methodologies.

And we chose 2019 as the baseline because, frankly, that’s the last normal year before the pandemic started to present challenges to data analysis among other things.

The majority of the data is sourced from businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

The post Your Hiring Pulse report for December 2023 appeared first on Recruiting Resources: How to Recruit and Hire Better.

Your Hiring Pulse report for November 2023

Keith MacKenzie — Tue, 14 Nov 2023 20:32:05 +0000

In October’s Hiring Pulse, we noted the huge rise in total payrolls in September to the tune of 336,000 in the United States.

Meanwhile, in the UK, total payrolled employees hit 30.2 million in October – a new high for the country.

October in the US, however, sees a slowdown to 150,000 new jobs, slightly below projections but not wholly unusual, say economics.

With that perspective in the two biggest English-language job markets, let’s look at the three major hiring metrics and see what else we can learn.

How we’re looking at data

As always, we look at the worldwide trends for three common SMB hiring metrics:

Time to Fill (TTF)
Total Job Openings (JO)
Candidates per Hire (CPH)

Let’s start analyzing!

Main highlights

The three main highlights for this month’s Hiring Pulse are:

TTF is on the rise again after a long period of steady decline
Small businesses are hiring more than their mid-sized counterparts
Candidates per Hire continues its meteoric rise

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important to understand that definition: jobs that are still open as of the end of October are not included in this graph as they don’t yet have an “end date”. Only the jobs that are filled are included here.

Quick clarification, because people are asking: the data in this chart shows the trendline against the 2019 average as an index of 100, not the actual number of days in TTF.

Got that? Good. Let’s have a look at the monthly TTF trend through to the end of October against the average of 2019, based on jobs that have been filled:

Things are looking a little different now on the Time to Fill front, for the first time in a long while. Look at the data starting in January 2022 and just draw a line from there to the TTF metric in mid-2023. What does that line look like? It’s a very clear downward trajectory, especially this year from January 2023’s 91.0 to May 2023’s low of 80.4.

Since then? It’s not only stabilized over the next few months from May through to about July/August – it’s actually rising. The line from July 2023’s 82.6 to October 2023’s 85.0 may not initially look like a big jump in raw numbers, but it’s an indicator when you look at it from a historical standpoint. In the recent past, we’ve only seen similar upward trajectories in TTF in September-November 2020 and March-September 2021.

With the exception of past Januarys (where a monthly jump in TTF is wholly normal for that month every year), it’s been a consistent decline nearly every month in the time it takes to fill positions – right up to Q3 2023.

Last month, we called this a “non-story”, because we considered this to be mere blips in the bigger picture of the TTF radar, but now, this is worth paying attention to.

Why? It’s not only the first time we’re seeing a steady (albeit modest) increase in the metric in recent months, it’s also inconsistent with this time period in previous years:

See how 2023 trends up while the others go down? Keep this in mind as we move on to the other two metrics – which may give us more insight into why this is happening.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

All that talk of a “September Surge” last month is continuing into October in our data for job openings. While September saw an increase of a full half-job per company on average from August, we see another increase to 8.2 from September’s 7.9, making October the fourth consecutive month of MoM increases in job openings.

When we get down into the size buckets, enterprise-level companies (those with 200+ full-time employees, or FTEs) maintain their undulation in the job opening trend, this time jumping up again to 17.3 new job openings per company on average for October, a .7 increase from September.

Mid-market companies (51-200 FTEs) didn’t show as much activity, dropping to 5.9 job openings on average from 6.2 the previous month.

The real story, again, is in the smaller businesses (1-50 FTEs). Not only did their robust recruitment activity continue into October with 6.8 job openings on average compared with 6.5 in September, they’re actually more active than their mid-market peers.

Think about it: companies with fewer than 50 full-time employees are hiring more than companies with up to four times as many FTEs – and actually, it’s significantly more: 6.8 compared with 5.9. Almost a whole extra job on average.

So, we talked about looking at JOs as a potential insight into the recent increase in TTF – perhaps those small businesses don’t have a dedicated HR team or, perhaps, a small squad with limited bandwidth. It takes a little longer to get that job filled than it might take for larger businesses who have the luxury of a full-time recruiter on staff.

Keep that in mind as we look at the Candidates per Hire metric.

3. Candidates per Hire

Workable defines the number of candidates per hire (CPH) as, succinctly, the number of applicants for a job up to the point of that job being filled. Again, remember, this is a trendline using the 2019 CPH average as a baseline of 100, not the actual number of candidates per hire.

Now that Let’s look at what’s going on here through October:

Another new high this month. With monthly adjustments in place, the Candidates per Hire metric now stands at 185.9 for October, a sharp increase of 17 points from the modest (and anomalous) dip in July 2023. It’s also a 62.4-point increase from January’s 123.5.

Just to call out the obvious: that’s a pretty big jump in a short time.

No need to beat around the bush again with fancy insights or even everyday vernacular on the data. Candidates are applying at a breakneck pace, and there are several factors for it – job loss throughout the year and AI-supported applications playing big roles.

What’s going on here?

The big story this month isn’t ultimately in the CPH increase – that’s basically expected at this point and has been discussed aplenty in past Hiring Pulses. What’s most interesting is the reversal of the TTF metric to an upward track.

When combining the three metrics above, it’s pretty clear that the more robust hiring in smaller businesses combined with that huge CPH spike means those resource-strapped smaller teams have a tougher time going through such a high number of applications in the same amount of time as before.

Think about it from an HR standpoint – or better yet, as a hiring manager who doesn’t even have the luxury of an HR professional to help you out. You open a new job for a marketing manager, and you’re slammed with a hundred applications on the very first day.

And then in the next few days, that number doubles to 200. Your plate is already full with day-to-day work and meetings and, well, that’s why you need that new manager in your team so you can start delegating.

So, you spend evenings looking through the applications. Yes, the data shows that employers spend an average of six to seven seconds looking at each resume – but that’s likely a scary headline to catch the attention of desperate jobhunters.

Let’s adjust that number to 20 seconds per application. Even at 20 seconds per review, going through 200 applications takes more than an hour of consistent, unwavering, dedicated attention.

But, by gosh, you’ve been able to do it over the span of a few days. You’ve whittled that list down to 20 very interesting candidates.

You’d like your HR professional to screen them – or in the absence of such, you send automated one-way Video Interview requests to each of them with a turnaround time of three days.

That brings us down to, say, six outstanding candidates after a few weeks.

If you’ve hired in your career, you know the drill. There are assessments, second interviews, follow-up communications, executive interviews, internal meetings, background checks, the whole shebang. It does take time, especially when you’re managing it solo.

If you smelled a shameless plug coming, then you’re right. Not only does Workable have a top-rated, plug-and-play recruitment software designed for ease of use, it also has Free Tools for Managers – true to its name, it’s a cost-free tool for hiring managers to use when tight on budget and tight on resources. Give it a whirl right now by entering the job title and industry and watch the AI-driven magic unfold.

You may also find that it’ll help optimize your hiring processes and even bring your own Time to FIll down.

Enjoy, and see you next month!

The Hiring Pulse: Methodology

Because one of the three metrics (Job Openings) is different from the other two metrics (Time to Fill and Candidates per Hire), we’re adopting two very distinct methodologies.

And we chose 2019 as the baseline because, frankly, that’s the last normal year before the pandemic started to present challenges to data analysis among other things.

The majority of the data is sourced from businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

The post Your Hiring Pulse report for November 2023 appeared first on Recruiting Resources: How to Recruit and Hire Better.

Your Hiring Pulse report for October 2023

Keith MacKenzie — Mon, 09 Oct 2023 13:24:50 +0000

In September’s Hiring Pulse, we noted how a glut of candidates for a job posting isn’t so much of a luxury as it is a burden on employers. When you have more candidates, you don’t necessarily have the pick of the crop – more candidates means saturation, and points to desperation in the talent market.

But something interesting happened in the latest job report from the US Department of Labor – total payrolls in the United States grew by 336,000, which came as a surprise to many.

(Just in case you’re wondering – yes, some of those numbers in 2020 are literally off this chart. If you must know, March and April 2020 saw job losses of 1.4 million and 20.5 million respectively, followed by bouncebacks of 2.6, 4.6, 1.4, and 1.7 million for the four months after that ending in August 2020.)

There are many other surprises in store as well. Let’s look at the three metrics, and bring some fresh insights to the table. Ready? Let’s roll!

How we’re looking at data

As always, we look at the worldwide trends for three common SMB hiring metrics:

Time to Fill (TTF)
Total Job Openings (JO)
Candidates per Hire (CPH)

Let’s start analyzing!

Main highlights

The three main highlights for this month’s Hiring Pulse are:

Candidates Per Hire is still on a meteoric rise
Job postings are climbing rapidly, with a big chunk of that in small businesses
The “September Surge” has data to show for it

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important to understand that definition: jobs that are still open as of the end of September are not included in this graph as they don’t yet have an “end date”. Only the jobs that are filled are included here.

Quick clarification, because people are asking: the data in this chart shows the trendline against the 2019 average as an index of 100, not the actual number of days in TTF.

Got that? Good. Let’s have a look at the monthly TTF trend through to the end of September against the average of 2019, based on jobs that have been filled:

At first glance, this looks like another month-over-month (MoM) drop – but look deeper, and you realize that it’s actually inconclusive. A change from 82.9 in August in the TTF metric to 82.6 in September is nothing to write a long letter home about. That’s really just a blip.

We talked a lot about stabilization in this metric in previous months – this shows more of the same. We’ll file this one as a “non-story” for this month at least – if for nothing more than to jump to the real stories in this month’s report.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

Now we are seeing some very interesting things here compared with previous months. Ultimately, the average number of job postings per company is up by a full half-job across the board, from August’s 7.4 to September’s 7.9.

What makes it more compelling is the drop in average job postings for enterprise-level companies (with 200 or more full-time employees) from 17.4 new jobs per company in August to 16.5 in September. That’s nearly an entire job less per company in September – which strikes us as odd because you’d expect the so-called “September Surge” (read on to learn more on that) to affect larger companies that follow a more consistent seasonal rhythm in their processes, including in budgets and employment.

So where is the job growth happening? At the other end of the size spectrum – small businesses (the 1-50 FTE bucket) posted an average of 6.5 jobs in September, up from 5.6 in August. That is a huge number – that’s a 13% growth in the actual employee base for companies that do have 50 employees.

And for companies with 25 employees – also included in this size bucket – bringing in six or seven new employees is going to have a pretty significant impact. It’s hard enough to run a smooth engine with your existing workforce – imagine onboarding and training a whole pack of new hires all at once when your existing teams are already busy doing their thing.

And, again, this is just the average for companies with anywhere from one to 50 employees. Some of these companies may be looking for just one or two new hires in the month, while others are hiring upwards of 15 or 20. And some of those companies may have just five full-time employees and looking to triple in size, while other, larger companies may not be hiring at all.

It’s a lot to unpack, to be sure. Now, let’s look at the CPH metric.

3. Candidates per Hire

Workable defines the number of candidates per hire (CPH) as, succinctly, the number of applicants for a job up to the point of that job being filled. Again, remember, this is a trendline using the 2019 CPH average as a baseline of 100, not the actual number of candidates per hire.

Now that Let’s look at what’s going on here through September:

If there weren’t real people involved in this, we might say this is getting a little bit boring now. Every time we say “We’ve reached a new high!” or “We’re seeing a new normal in hiring!”, our dataset comes back and hits us with… another new high.

This time, the CPH trend has risen again, to 183.4 for September. That’s 83.4% more candidates per job compared with the average of 2019. And that’s 9.5 points up from just two months earlier.

Does this mean more and more people are out of work or returning from extended leave, or turnover is high? No, we won’t go with those theories this time. We actually have tangible insights which you can see in the next section.

Meanwhile, we can tell you that the industries most actively hiring *and* seeing huge CPH numbers are in SaaS, hospital & health care, and media & entertainment.

The sectors not quite seeing as many candidates despite posting a high number of jobs are in retail and consumer services. Great Resignation is perhaps still a reality for retailers.

OK, enough of that – let’s get into the conclusions.

What’s going on here?

September, of course, is traditionally a time to return to school, and also, the end of summer months. It’s ultimately a time for change for many people in our society.

LHH Recruitment Solutions head Laurie Chamberlin said as much. “I feel like September is more of a New Year’s philosophy than New Year’s … September is like back to school, back to work, back to ‘what am I going to do everyday?’ It’s like New Year’s for the workforce and education.”

“September is like back to school, back to work, back to ‘what am I going to do everyday?’ It’s like New Year’s for the workforce and education.”

Zapier recruiting manager Bonnie Dilber tells HuffPost that it’s also to do with the summer slowdown:

“Hiring slows down over the summer due to lots of vacation time for job seekers and candidates ― this makes scheduling tricky and can often lead to lengthier processes,” she says.

September, of course, marks the end of summer, and a “let’s get back to business” mode.

It’s also about budget, Laurie says,

“If there’s funds in their budget, that they’re not going to get the FTE add in 2024, but they have it in 2023, they’re looking to hire. If they’re looking at revenue, and they need [a] head count to make that revenue achievable…they need to onboard those people right now to hit their 2024 goals.”

That, in short, is the “September Surge”. This is the term given to the rise in job and jobseeker activity that traditionally happens in this month. Says Laurie: “I’ve been in the recruiting industry since ’99. And it is very real.”

We see this in our data as well.

This means you’re not only seeing more candidates coming through your hiring pipelines, but more competition in landing those A-list employees. So, you’ll probably want to understand what workers prioritize in a job right now so you can highlight those in your value proposition.

We did the homework for you. We asked 1,250 workers to understand their wants and needs at a high level, and the result is the Great Discontent for 2023. Give it a good read (both the US and UK versions), and incorporate what you’ve learned into your candidate attraction strategy.

Enjoy, and see you next month!

The Hiring Pulse: Methodology

Because one of the three metrics (Job Openings) is different from the other two metrics (Time to Fill and Candidates per Hire), we’re adopting two very distinct methodologies.

And we chose 2019 as the baseline because, frankly, that’s the last normal year before the pandemic started to present challenges to data analysis among other things.

The majority of the data is sourced from businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

The post Your Hiring Pulse report for October 2023 appeared first on Recruiting Resources: How to Recruit and Hire Better.

Your Hiring Pulse report for September 2023

Keith MacKenzie — Tue, 12 Sep 2023 14:37:26 +0000

In August’s Hiring Pulse, we noted the ever-increasing number of candidates per hire and a dropping Time to Fill trend. We noted the Life of Riley and how that didn’t work out so well for many candidates, which leads to the above trends in recent months.

This month, we have a look at the three metrics again with this in mind, and bring some fresh insights to the table. Ready? Let’s get started!

How we’re looking at data

As always, we look at the worldwide trends for three common SMB hiring metrics:

Time to Fill (TTF)
Total Job Openings (JO)
Candidates per Hire (CPH)

Let’s start analyzing!

Main highlights

The three main highlights for this month’s Hiring Pulse are:

We’re in a “new normal” when it comes to Time to Fill and Candidates per Hire
Technology may be a huge factor in both
Seasonal and sectoral hiring are potentially impacting job opening trends

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important to understand that definition: jobs that are still open as of the end of August are not included in this graph as they don’t yet have an “end date”. Only the jobs that are filled are included here.

Quick clarification, because people are asking: the data in this chart shows the trendline against the 2019 average as an index of 100, not the actual number of days in TTF.

Got that? Good. Let’s have a look at the monthly TTF trend through to the end of August against the average of 2019, based on jobs that have been filled:

In short: the time it’s taking employers to fill open roles is still at a historically lower point. Sure, it took a relatively dramatic jump from May’s 80.5 to June’s 84.4, but it’s coming down again.

In last month’s Hiring Pulse, we noted how the TTF trend seems to be stabilizing when compared with previous years – this is still happening. What’s interesting is that the stabilization is happening at a much lower level. Cliche alert: this may be the new normal in hiring.

In short, while the undulations of the TTF trend are normal, the actual trend itself is much lower than years past. Two thoughts happening here: first, there are far more candidates than ever before meaning it’s easier to find the ideal candidate for a job.

Second, the added bandwidth due to the deluge of candidates is easier to manage because HR professionals and hiring teams are using software to optimize their processes (yes, that’s a cheap plug for Workable!).

Now, are we seeing the same trend in job openings? Let’s have a look.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

Last month, we pointed out a surprising drop in job postings across all companies from June’s 7.6 to July’s 7.1, which turns out to be anomalous when compared with previous Junes and Julys.

July to August this year is a little different – rising from 7.1 new job postings per company in July to 7.4 in August. In 2022, the change was just an increase of .1 of one job, and in 2021, it was a drop of .2.

But when we look at the size buckets, the differences start to stand out. Companies with 200 or more full-time employees (FTEs) posted 17.4 jobs in August on average, up from July’s 16.9. Small businesses (50 or fewer FTEs) also saw growth – from 5.4 to 5.6.

The big story this time is in the mid-sized businesses (51-200 FTEs). Averages in this size bucket went from 5.0 in July to 5.8 in August – moving it higher than the average for small businesses for the first time since May.

There are two stories here:

First, this jump in general which marks nearly a full new job per mid-sized business in August.

And second, that companies with 51-200 FTEs were hiring less than their smaller cousins for three months in a row from May to July.

Why? One theory is that it’s seasonal. June, July, and August are traditionally big-travel seasons and that puts a lot of pressure on a hospitality sector that’s already struggling to fill gaps in their teams. The triple-whammy of surging tourism numbers after COVID, the Great Resignation (which hit restaurants hard), and of course the traditional tourist season all lead to an increase in demand for short-term workers ahead of time.

Perhaps it’s not so much that medium-sized businesses slowed their hiring – it’s more that small businesses increased theirs. According to BLS, the leisure and hospitality sector has gained an average of 61,000 jobs per month over the prior 12 months ending in August 2023, making it one of the fastest-growing sectors in terms of hiring in the United States. And that sector has many small businesses.

Now, let’s look at the Candidates per Hire trend.

3. Candidates per Hire

Workable defines the number of candidates per hire (CPH) as, succinctly, the number of applicants for a job up to the point of that job being filled. Again, remember, this is a trendline using the 2019 CPH average as a baseline of 100, not the actual number of candidates per hire.

Now that Let’s look at what’s going on here through August:

What we said above about a “new normal in hiring”? This is another example of it. The highest the CPH trend ever reached in our dataset before 2023 was in October 2020, when the index reached 140.3. That was also the only time it had reached more than 140 – in other words, 40% higher than the monthly average for 2019.

Now? It’s gone upwards of 140 for five straight months – and above 170 for the last three months. It’s got to come down to earth at some point once the job market stabilizes, but what interests us is that job openings aren’t coming down at all during the course of 2023. You’d think there would be a direct correlation between fewer job openings and more candidates per jobs – but not here.

This is likely a fallout of the Great Resignation. Many people dumped their jobs over the last couple of years to the tune of more than 4 million quits every single month from June 2021 to December 2022 – and that number is steadily falling throughout 2023 reaching 3.55 million quits for July, the lowest for a single month in the United States since before the pandemic. And in pre-COVID times, 3.5 million quits was pretty normal for a given month.

All these people who left their jobs and not moving on to new ones – some of them launched freelance careers, others started their own business, and others still just took off to a cabin in Maine to live the rest of their lives in solitude. And – we mentioned this last month as well – it’s either not working out so well for them, or they miss the old daily grind and the social life that can come with an interesting day-to-day job. So, back to the job hunt they go.

Combine this with the increase in layoffs this year (482K layoffs from January to July compared with one-third of that in the same period in 2022), and you have a situation where there are many more candidates looking for jobs. Hence, the rise in the CPH trend.

What’s going on here?

Whatever your experience may be in terms of hiring, you’ve got one thing at the top of your mind: find the absolute perfect candidate for the role. Yes, it’s nice to have a growing candidate pool because it means you have the pick of the crop – but is that necessarily the case? Just because you’re now getting 120 applications for a job compared with 80 for the same job last year doesn’t mean you now have 30 ideal candidates this year compared with 20 last year.

When you have a growing pool of candidates, you run the risk of saturation. There’s also desperation – on the side of candidates. There are those who are returning to work after an extended period of time, and there are those quickly trying to land on their feet after losing their job in an unfortunate reorg at their previous company.

We made a side reference to HR technology up there and how it’s helping hiring teams better manage the recruitment pipeline and that’s speeding up the process to a filled job.

Well, technology does cut both ways – candidates also have the benefits of HR technology and now have one-click-apply and resume parsing options when applying for jobs.

Add AI to the mix; candidates can just plug their resume *and* the job description into ChatGPT or Claude and tell it to create the perfect cover letter for that specific job. The AI will even calibrate the resume so it best fits the opportunity.

So, as it becomes easier to go through hundreds of resumes a day, it also becomes harder, because the applications are becoming more plentiful and sophisticated all the time. It reminds one of the old Stephen Wright joke about putting a humidifier and dehumidifier into a room and letting them work it out.

Back to the plot: you want to focus on finding the *right* candidates, not the *most* candidates. That distinction is very important. To attract the *right* candidates, you need to understand what would compel them to apply for a role with your organization.

There are tools to help you out here – including custom application forms and knockout questions so candidates self-select out of the process, candidate search functionalities, and of course Workable’s AI Recruiter.

And guess what? We already asked 1,250 workers to understand their wants and needs at a high level, and the result is the Great Discontent for 2023. Have a look, and package what you’ve learned into your careers page and your job descriptions – and reap the rewards.

The Hiring Pulse: Methodology

Because one of the three metrics (Job Openings) is different from the other two metrics (Time to Fill and Candidates per Hire), we’re adopting two very distinct methodologies.

And we chose 2019 as the baseline because, frankly, that’s the last normal year before the pandemic started to present challenges to data analysis among other things.

The majority of the data is sourced from businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

The post Your Hiring Pulse report for September 2023 appeared first on Recruiting Resources: How to Recruit and Hire Better.

Your Hiring Pulse report for July 2023

Keith MacKenzie — Mon, 10 Jul 2023 13:22:11 +0000

In June’s Hiring Pulse, we pointed out how ChatGPT and its AI cousins are impacting the job landscape, and that the stabilization of candidate numbers could be due to an increase in job postings.

Well, this month, we have some eye-opening data for you that blows some of that out of the water. Let’s get into it.

How we’re looking at data

As always, we look at the worldwide trends for three common SMB hiring metrics:

Time to Fill (TTF)
Total Job Openings (JO)
Candidates per Hire (CPH)

Let’s start analyzing!

Main highlights

The three main highlights for this month’s Hiring Pulse are:

Job activity is back to high levels – especially for the largest and smallest companies
Candidates Per Hire is at a whole new level
The Time to Fill metric is the only one that’s relatively normal

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important to understand that definition: jobs that are still open as of the end of June are not included in this graph as they don’t yet have an “end date”. Only the jobs that are filled are included here.

Quick clarification, because people are asking: the data in this chart shows the trendline against the 2019 average as an index of 100, not the actual number of days in TTF.

Got that? Good. Let’s have a look at the monthly TTF trend through to the end of June against the average of 2019, based on jobs that have been filled:

Last month, we pointed to relative stabilization in the Time to Fill trend especially compared with the steep drop seen in the first quarter of 2023.

Q2 tells a somewhat different story – April saw an uptick to 83.3 from March’s 81.9, with that trend dropping to 80.8 for May. And now, in June, it’s risen again to 84.

The question is: how anomalous is this? The answer: not unusual at all. Look at how 2021, 2022, and 2023 compare in the same chart:

With some minor outliers, these all follow a relatively similar trend – a steep drop-off from January to March followed by relative stabilization and a mild uptick to June.

The only thing that’s clearly different is that the Time to Fill trend is lower this year than in previous years. Jobs are getting filled quicker than before.

We’ve gone into a multitude of reasons and theories as to why – but for this month, let’s get to Job Openings and then, especially, to Candidates Per Hire which is where the real story is (yes, again).

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

Again, we see a bump in job activity, this being the second straight increase from the previous month from 7 new job postings per company across the board in May to 7.6 for June.

We’ve been at 7.6 before, in March, but what’s worth noting is that in the 18 months since January 2022, we’ve seen the average number of job postings per company go higher than 7 just four times, and three of those happened in the last four months.

There’s been a lot of talk (including in the Hiring Pulse reports) about recessions and AI impacting jobs. We’re surmising here that the impact is more in how jobs are changing rather than dwindling. New gaps and opportunities are being discovered, and new jobs are created as a result.

Now, look at the company sizes that are seeing the biggest jump in job activity. First, the big kids on the block (enterprise-level, 200+ full-time employees) are opening up more jobs over the last two months than the previous month before that – from 16.6 job postings per company in April to 17.5 in May, then 18.2 in June. If you look at 2022, you’ll see that job activity for that size bucket was higher although declining, while this year, it’s lower but rising.

Now, let’s look at the small kids on the block (>50 FTEs): they’re up to 5.8 jobs per company in June from 4.9 in May. That’s an increase of nearly one full new job posting per small business on average within a month.

We did a bit of math last month and let’s do it again: let’s say an average company in this size bucket has 30 full-time employees.

When you see the average of 4.9 new job postings for May, that’s more than 16% of that company’s entire workforce, or one in seven.

And 5.8 is 19.3% of that entire company’s workforce – nearly one in five.

Think about your own company, if you’re in a smaller one. Look at the people around you (or look at the faces on your laptop screen, if you’re working remotely). Imagine one in five of those people being new within the last month, or that you’re seeing one in five of those people leaving. That’s not an insignificant number for a small business. Hiring is very active in this bucket.

Now, let’s look at the candidates. Yes, we promised a good story, and you’re getting it now.

3. Candidates per Hire

Workable defines the number of candidates per hire (CPH) as, succinctly, the number of applicants for a job up to the point of that job being filled. Again, remember, this is a trendline using the 2019 CPH average as a baseline of 100, not the actual number of candidates per hire.

Now that Let’s look at what’s going on here through June:

We didn’t think this was going to happen, but there it is – the Candidates Per Hire trend has just surged. The CPH trend is now at 176.7 for June 2023 (or 76.7% more candidates per hire than the average of 2019).

It’s absolutely at its highest point in, like, ever. To further demonstrate how high this is, let’s compare June’s CPH using 2020, 2021, and 2022 as benchmark averages:

Year	June 2023’s CPH against year average
2020	150.2
2021	167.4
2022	170.3

In short: where candidates per hire for June 2023 is 76.7% higher than the average of 2019, it’s 50.2% higher than the 2020 average, 67.4% higher than the 2021 average, and 70.3% higher than the 2022 average. No question about it – June is very, very high no matter what year you compare it against.

We’ve talked aplenty about the many different reasons why, and we encourage you to go to previous Hiring Pulses to better understand this trend. Right here, we’re just going to recognize that if you’re getting slammed with candidates every time you open up a new job, you’re absolutely not alone.

What’s going on here?

Job openings are up, quite significantly, especially for small businesses. And the CPH trend is, of course, at previously unseen levels. Last month, we noted the drop in new job postings and the rise in CPH and wondered if the two were related.

In this case, we’re seeing a significant rise in both. The hiring landscape is just so very, very busy. There are just so many candidates for a single job – it’s like opening a leak in a dam and having the water just come rushing through.

When a lot of that activity is happening in smaller companies with fewer than 50 employees, you can imagine the stress on those hiring teams – smaller businesses don’t have the luxury of a full HR team that can dedicate themselves to the job.

An executive in a small business can often be the hiring manager for a job – and may even themselves be the recruiter, the background checker, the assessor, the evaluator, and more.

And doing this across the company for multiple jobs (remember, nearly one in five employees per small business as we stated above) while at the same time trying to run a business – it can be a lot to pack into a day. That’s where software (cough cough) can be pretty helpful.

See you next month!

The Hiring Pulse: Methodology

Because one of the three metrics (Job Openings) is different from the other two metrics (Time to Fill and Candidates per Hire), we’re adopting two very distinct methodologies.

And we chose 2019 as the baseline because, frankly, that’s the last normal year before the pandemic started to present challenges to data analysis among other things.

The majority of the data is sourced from businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

The post Your Hiring Pulse report for July 2023 appeared first on Recruiting Resources: How to Recruit and Hire Better.

Your Hiring Pulse report for June 2023

Keith MacKenzie — Mon, 12 Jun 2023 18:11:37 +0000

In May’s Hiring Pulse, we went all-in on how deep the candidate pool was. We even got melodramatically metaphorical with it, likening its depth to Lake Baikal, and wondering whether it’d get deeper than that – i.e. Mariana Trench, with its deepest point being nearly seven times as deep as the aforementioned Baikal.

We then talked aplenty about AI affecting the job landscape and how there didn’t seem to be as much talk about a recession as there was at the start of this year (which feels like a long, long time ago now).

Now, we’re nearly at the midway mark of 2023, and we’re going to explore our SMB hiring data and see if we can pull up some fresh insights.

Let’s get to work!

How we’re looking at data

As always, we look at the worldwide trends for three common SMB hiring metrics:

Time to Fill (TTF)
Total Job Openings (JO)
Candidates per Hire (CPH)

Let’s start analyzing!

Main highlights

The three main highlights for this month’s Hiring Pulse are:

Time to Fill is showing signs of stabilization, but remains at its lowest point in our dataset history
Job activity is particularly robust for small businesses with fewer than 50 full-time employees
Candidates Per Hire has come down significantly from last month’s surge – but remains at a high point

1. Time to Fill

Quick clarification, because people are asking: the data in this chart shows the trendline against the 2019 average as an index of 100, not the actual number of days in TTF.

Got that? Good. Let’s have a look at the monthly TTF trend through to the end of May against the average of 2019, based on jobs that have been filled:

The second quarter of 2023 continues to see relative stabilization in the Time to Fill trend compared with the first quarter, with May’s 80.8 just a small drop from April’s 83.1, which comes on the heels of March’s 81.8.

What’s really worth noting here is how low the TTF trend is in general. These past three months have seen what’s ultimately the fastest Time to Fill trend in our dataset dating back to 2019. What does this ultimately signify? It can be any of the following:

A glut of candidates makes it easier to find the right hire in short order
A shortage of candidates means hiring teams work faster to land the right hire before the competition snatches them up
Hiring teams are getting faster at hiring because layoffs have reduced the number of touchpoints to a hire
Hiring teams are becoming more efficient at hiring because they’ve digitally transformed their hiring process (hint, hint Workable and AI)
Hiring teams are becoming more efficient at hiring in general

There are many other potential explanations, but the above is worth thinking about.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

Once again, job activity sees a little bump: from 6.6 new job postings per company on average in April to a flat 7 in May. It’s not a lot to write home about, especially since historically a jump from April to May is relatively normal (with 2022 being an exception).

What’s more interesting than month-over-month change here is the relative busy-ness of job activity throughout 2023 compared with previous years. It’s busier this year for SMBs (<200 FTEs), but for enterprise-level companies with more than 200 FTEs, job activity is actually slower now than it was at this time last year.

We surmise it’s because larger companies tend to be slower in turnaround and response. Remember all that talk about a worldwide recession at the start of the year, followed by large-scale layoffs? And now, we see slower job posting activity as we approach the end of Q2 compared with the same time last year. That’s all part of the overall business plan.

Another way to look at it is that employees at larger companies may have greater job security in those companies. That, coupled with layoffs, will mean lower employee turnover – and therefore, fewer job postings.

Meanwhile, those smaller, nimbler companies that are more susceptible to turbulent rises and falls in the bottom line will also see greater turnover – we’re seeing that especially in the 1-50 FTE bucket where March’s 5.5 job postings per company, April’s 4.6, and May’s 4.9 are significantly higher than last year at this time (3.5, 3.3, and 3.3 respectively).

Let’s do a little bit of math to put that in perspective – let’s say the average company in the 1-50 FTE bucket has 30 full-time employees. An average of 4.9 job postings is 16% of that entire company’s workforce right there. That’s compared with last year’s 3.3 job postings being 11% of a company’s workforce.

That’s the difference between a turnover of one in seven employees this past May and one in nine employees in May 2022.

Pretty significant.

Now, let’s look at the candidate population for those jobs.

3. Candidates per Hire

Workable defines the number of candidates per hire (CPH) as, succinctly, the number of applicants for a job up to the point of that job being filled. Again, remember, this is a trendline using the 2019 CPH average as a baseline of 100, not the actual number of candidates per hire.

Now that Let’s look at what’s going on here through May:

After many months – more than a year, even – of a Candidates Per Hire trend growing faster than a bamboo tree, we’re finally seeing that number take a plunge from one month to the next. Whether that’s due to April being so high that a drop-off was inevitable or whether that’s due to an actual depletion of the candidate pool, that’s for you to decide.

One thing we’re viscerally cognizant of, however, is that this drop in May could be related to the higher job postings in the previous chart – meaning, when there’s more job postings out there, naturally, candidates will get snatched up as well.

Another scenario worth thinking about: there are three major scenarios in which one might be looking for a job: first, they’re entering the job market because they’re entry-level, coming out of school, moved to a new location, or something similar.

Second, they’re transitioning jobs; simply put, they’re still employed but they’re looking for other jobs out there because it’s time for a change. Third, they’ve lost their job and they’re actively looking for a new one.

So, the increase in candidates per hire in general isn’t simply about a growing candidate pool. It’s also the result of those mass layoffs across the board, leading to candidates more aggressively and actively looking for a new job so they aren’t unemployed for a long period of time. Rather than selectively applying for job opportunities out there, they’re taking the spray-and-pray approach until someone hires them.

This, of course, will drive the CPH up – and it can also be challenging for employers because they need to suss out the real motive of a candidate in applying for their open role. Be careful thinking like this, however. Don’t jump to conclusions. A smartly built evaluation process will identify the real stars for your job.

What’s going on here?

Notice we didn’t touch on AI much at all this time around? While that’s still a hot topic, let’s not get too deep into this month since we’ve covered it so comprehensively in much of our other content. Plus, it remains a very nascent environment.

OK, fine. Let’s talk about AI.

Meanwhile, OpenAI, Nvidia, Microsoft, Google, Amazon, Apple, and the rest of them are investing heavily in AI and machine learning. Out of the 38 new unicorns (startups that break the $1B company value barrier), eight of them are in AI technologies.

If you’re in AI, that’s great, but if you’re in anything else, it’s a tough ocean to navigate. That same report states that overall funding of startups has dropped 44% from May 2022 to May 2023.

We’ll just keep a finger on that AI pulse for the forthcoming months, particularly on how typical skill sets will change going forward. For example, ChatGPT is considered even more valuable than a post-secondary degree by 86% of hiring managers according to an Intellgent.com survey.

And for entry-level candidates, a full 98% of hiring managers would like to see ChatGPT experience for positions where the AI tool is applicable.

These are interesting times. Catch up next month!

The Hiring Pulse: Methodology

Because one of the three metrics (Job Openings) is different from the other two metrics (Time to Fill and Candidates per Hire), we’re adopting two very distinct methodologies.

And we chose 2019 as the baseline because, frankly, that’s the last normal year before the pandemic started to present challenges to data analysis among other things.

The majority of the data is sourced from businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

The post Your Hiring Pulse report for June 2023 appeared first on Recruiting Resources: How to Recruit and Hire Better.

Your Hiring Pulse report for May 2023

Keith MacKenzie — Mon, 08 May 2023 20:26:35 +0000

In April’s Hiring Pulse, we talked extensively about AI at work – namely, the latest and potentially greatest destabilizer in the working environment.

And the destabilization could be even greater than COVID-19 in 2020. ChatGPT and all its AI cousins across the board are leading to unprecedented trends in our hiring data.

What’s possible is that this may only be the beginning. Remember March 2020 when those first few COVID-19 numbers started trickling in? That’s the feeling these days.

Let’s have a look at what that means, and stay on for the ride because we have a lot to say at the end.

How we’re looking at data

As always, we look at the worldwide trends for three common SMB hiring metrics:

Time to Fill (TTF)
Total Job Openings (JO)
Candidates per Hire (CPH)

Let’s start analyzing!

Main highlights

The three main highlights for this month’s Hiring Pulse are:

Candidates per Hire is at an all-time high for Workable’s hiring data
Time to Fill is stabilizing – barely
Job activity is dropping across the board

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important to understand that definition: jobs that are still open as of the end of April are not included in this graph as they don’t yet have an “end date”. Only the jobs that are filled are included here.

Quick clarification, because people are asking: the data in this chart shows the trendline against the 2019 average as an index of 100, not the actual number of days in TTF.

Got that? Good. Let’s have a look at the monthly TTF trend through to the end of April against the average of 2019, based on jobs that have been filled:

After a pretty significant drop in the Time to Fill trend for the first three months of 2023, we’re finally seeing that metric relatively stabilizing to start the second quarter of the year.

In fact, the number has jumped upwards ever so slightly, with the trend jumping 1.1 points from 81.6 in March to 82.7 in April.

It’s still well below the general trend going back to 2020, an indicator of factors such as technology speeding up the evaluation process, more candidates in the talent bloodstream (more on that below), and – perhaps – a desperate rush to fill roles as a stopgap measure in times of high turnover.

On that latter point – there is plenty of labor instability right now. There are reorgs, layoffs, and restructuring all happening on the heels of the Great Resignation (which, while still high, is starting to level off and come down in terms of raw numbers). And a lot is happening in the age of AI as well.

What this means is, in other words, bottlenecks and breakdowns are happening, forcing businesses to move quickly to plug gaps in their workflows.

It’s one explanation, at least. Let’s look at total job openings and see for ourselves if there’s increased job activity across the board.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

After a nice levitation in job openings to start the first quarter of this year, we’re finally seeing things tapering off across all three business size buckets. In fact, job activity is down from 7.6 job postings per company in March to 6.6 per company in April.

Overall, what we see is a full point drop from March to April in the average number of jobs posted per company. That’s significant, in no small part due to it being the biggest month-to-month drop in the history of our network data.

We’ve seen nice jumps in the data from one month to the next (especially from the typically slow December to a supercharged January), but we’ve never seen anything quite so dramatic the opposite way.

We would go into depth into each of the three size buckets, but they all see the very same trend for March to April – so we’ll skip that for this month. Instead, we’ll simply point out that the impressively dynamic small business category (1-50 full-time employees) was the usual anomaly in terms of job activity, with five straight month-to-month increases in the trend.

But now, small businesses also took a dip in April. So it can no longer hold itself up as an agile upstart. Last month, we promised to keep an eye on this area – now we’re going to continue watching and see what May brings us.

Now, on to the candidates.

3. Candidates per Hire

Workable defines the number of candidates per hire (CPH) as, succinctly, the number of applicants for a job up to the point of that job being filled. Again, remember, this is a trendline using the 2019 CPH average as a baseline of 100, not the actual number of candidates per hire.

Now that Let’s look at what’s going on here through April:

Um. That chart says it all.

After a momentary stabilization in the CPH trend from February to March, April stands out like a very, very sore thumb, hitting a new milestone of 158.2 for Apil – a huge 21-point jump from March.

To put that in perspective, the biggest jump in the CPH trend in our entire history of data was 18.9 points from February to March back in 2020. The year where the world seemingly changed and the sheer volume of job loss felt unprecedented (for this generation, at least).

And the highest CPH trend with the exception of February’s 138.8 and March’s 137.2 was in the high 120s and very low 130s from mid-2020 to early 2021.

And now? 158.2. To put it in visual perspective, look at the chart from January 2020 onwards:

Let’s go back to a quick quote from last month’s Hiring Pulse:

“We discussed the Great Resurgence in [February]’s Hiring Pulse – that’s still happening, of course, but the candidate pool is not a bottomless one. Are we finally reaching the crux of this data point? Or is this just a hiccup and more are on the way? We shall see.”

Well, we are seeing now that the bottom of the candidate pool isn’t yet discovered. It may be at a murky depth not unlike Lake Baikal in Siberia, known as the world’s deepest lake with a bottom that’s 5,315 feet (1,620 meters) deep.

We don’t really want to talk about Mariana Trench at 36,201 feet (11,034 meters) because that’s uncomfortable to think about and we can’t predict whether or not we’ve hit a certain limit in terms of depth and breadth of the candidate pool.

Instead, should we just try and understand what’s going on here?

What’s going on here?

We talked a lot about AI last month. It’s still very relevant now and will continue to be so going forward. And it is absolutely impacting the working world in myriad ways. Our day-to-day is affected, and our hiring processes are changing, and above all – jobs are ultimately changing.

Consider this – according to Goldman Sachs, 300 million jobs worldwide could be affected by this new tsunami of generative AI that started with ChatGPT in December.

Many other companies are actively encouraging the use of generative AI technologies in their working environment – including one CEO who has purchased ChatGPT licenses for his entire staff base to the tune of $2,400 a month. For the record, that CEO says productivity has gone through the roof.

Others, like IBM, are phasing out some jobs altogether – to the potential tune of 30% of non-customer-facing roles – as a result of increasing AI capabilities.

Meanwhile, the Biden administration called together the CEOs of Alphabet, Microsoft, OpenAI and other AI-driven companies to discuss the potential risks and opportunities of the new technology.

There is a lot more going on, of course, but at the core of all of this is jobs. When we started 2023, people weren’t really talking about artificial intelligence beyond how cool ChatGPT seemed to be. Some early adopters were taking on ChatGPT to help in their work, but overall, generative AI wasn’t really in the everyday lexicon. Instead, talk of a recession was.

Now, we don’t see a lot of talk about an impending recession. Is there even one happening? Who knows? What we do know now is the tremendous rise of AI and jobs in everything we’re talking about:

Our hiring data is starting to show it. Time to Fill is getting shorter – potentially because of the use of generative AI tech in the hiring process. Job openings are dropping – not because of a recession, but because some jobs are becoming redundant and companies are figuring out how to get more done with fewer people.

And finally, candidates per hire is surging – perhaps due to the double whammy of layoffs ahead of a (possible / speculated / who knows) recession and the rise of AI technologies in workflows.

Does this mean AI is coming for your job as well? Not necessarily. One saying that’s making its rounds is this one: “AI will not take your job. People who use AI will.” But humans are still at the center of it all – AI is a great enhancer to your work, not a great replacer. And the human touch is still paramount in hiring.

If humans weren’t important, then why do we still see lineups in banks for that more personable service and in supermarkets with checkout cashiers? Why do we grumble about pressing ‘1’ to do this and ‘2’ to do that when trying to get service on the phone?

And so on.

Things may change if (or when) AI gets to a point where it becomes general intelligence, but right now – we are still the drivers.

For how long, though? Let’s keep watching this space – the data is still telling us a lot.

The Hiring Pulse: Methodology

Because one of the three metrics (Job Openings) is different from the other two metrics (Time to Fill and Candidates per Hire), we’re adopting two very distinct methodologies.

And we chose 2019 as the baseline because, frankly, that’s the last normal year before the pandemic started to present challenges to data analysis among other things.

The majority of the data is sourced from businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

The post Your Hiring Pulse report for May 2023 appeared first on Recruiting Resources: How to Recruit and Hire Better.

Your Hiring Pulse report for April 2023

Keith MacKenzie — Tue, 11 Apr 2023 18:39:10 +0000

Now, as if all the drama of the last few years in the form of COVID-19, the Great Resignation, the Ukraine invasion, a looming recession, inflation, yadda yadda yadda, wasn’t enough – we’re now dealing with yet another destabilizer and disrupter in the landscape. This is catastrophic for the pessimists among us, but ameliorative for the optimistics among us.

That’s, of course, the emergence of ChatGPT, generative AI and LLM AI (large language model AI) and all their many offshoots.

How this will change our landscape is really a huge amount of fodder for another large-scale discussion, but let’s keep it in mind as we dive into the latest data because it will change how we hire.

Let’s get started!

How we’re looking at data

As always, we look at the worldwide trends for three common SMB hiring metrics:

Time to Fill (TTF)
Total Job Openings (JO)
Candidates per Hire (CPH)

Let’s start analyzing!

Main highlights

The three main highlights for this month’s Hiring Pulse are:

Job activity continues to be high for small businesses
TTF is continuing to decline sharply – but at what cost?
CPH is finally ‘stabilizing’ – sort of

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important to understand that definition: jobs that are still open as of the end of March are not included in this graph as they don’t yet have an “end date”. Only the jobs that are filled are included here.

Quick clarification, because people are asking: the data in this chart shows the trendline against the 2019 average as an index of 100, not the actual number of days in TTF.

Got that? Good. Let’s have a look at the monthly TTF trend throughout 2022 against the average of 2019, based on jobs that have been filled:

Again, we see a decrease in the TTF trend. This is the third consecutive month of decline – and it now stands at 81 for March 2023, down from 87.1 in February and 90.6 in January.

This shortening TTF may initially seem a good thing for both employers and jobseekers. For hiring teams, of course it means you’re finding candidates to fill your much-needed positions quicker than before. For jobseekers, it means you’re getting jobs quicker than before.

There are downsides, too. It may be a sign of a need to fill urgent roles ahead of a looming recession, either for that hire to provide the stopgap that’s needed to carry a company through the downturn. It could also signal a rush to get ahead of potential budget cuts and hiring freezes before they happen. Not inherently a problem, but rather, signals of problems.

But we’re already in April and we’ve been talking about that downturn for a long time now (and in multiple Hiring Pulses). It’s highly likely that the shorter TTF is due to a larger candidate pool – when a job is opened, applications start flooding in and it’s easier to lock in on someone who fits the bill.

All the same, there are caveats to this shorter TTF. Companies may not be taking the opportunity to properly evaluate candidates which means a higher risk of bad hires. That can be expensive down the line and you don’t want that.

So, consider slowing down, even in the face of increased urgency to fill roles.

Or – more apropos – consider better, more optimized ways to evaluate candidates so you can vet them more thoroughly, and quickly too. Like, for instance, incorporating (ahem) AI tech in your hiring process.

Now, let’s move on to job openings.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

Well, look at that. Steady growth across the board. Those lines at the bottom of the chart look like a group of airplanes taking off together from November 2022 at different speeds and cadences, and then ultimately falling into line with one another into March.

We’ll get into the specific details in a second, but first, the main takeaway is that the overall average jobs opened per company in March in our dataset is 7.6, up from 6.7 in February and 6.6 in January. At this time last year, we didn’t see such a consistent increase in job openings.

We’ve talked about this in previous Hiring Pulses: a downturn doesn’t necessarily mean hiring freezes for new jobs. It can also mean a recalibration – for instance, let’s look at the restructuring of teams with the objective of producing with 10 FTEs where 15 were able to do so previously.

In such a reworking, job requirements change as a result and new skill sets are discovered to be needed. Some team members can learn and grow, some get promoted, some are disgruntled and leave for other opportunities, some are let go, and finally, entire new jobs are created to fill important gaps in these new team structures.

In times of affluence, these things do happen and they are an opportunity to scale. But in times of fiscal stress, they come up as necessities as businesses clamor to find more efficient ways to carry out processes.

Anyway, interesting discussion and we’ll come back to it. Now let’s look at the company size buckets.

Larger companies still anomalous

Job activity for companies of 200 or more employees saw a roughly 10% increase from February to March. This is interesting compared with previous years, where larger companies saw averages of 15.2/15.9/19.5 for the first three months of 2021 and 21.3/21.3/23.8 for the first three months of 2022.

Yet, this year, instead of a spike in March after a roughly stable Jan-Feb trend, we’re seeing a dip from January to February and then an almost identical recovery from February to March.

Perhaps we’re splitting hairs by looking at the data like this, and perhaps it’s just one of those anomalies, but it’s still interesting to look at.

Medium is steady as she goes

For companies with 51-200 employees, we see a jump in the average job postings for March to 6.2 after a relatively stable January (5.7) and February (5.6).

We noted it last month and the insight remains the same – this is not wholly anomalous. Job activity trends for the first three months of the year is again pretty normal this year for medium-sized businesses.

Small and vibrant

Now, here’s where the interesting stuff is. Small-sized businesses with 50 or fewer employees are continuing to rise in terms of job activity. Last month, we saw a jump from 4.1 to 4.7 jobs per company from January to February, and that growth has accelerated to 5.5 in March.

We’ve talked extensively about agility in small businesses rapidly adapting to evolving economies and shifts in market trends. We’re definitely keeping an eye on this one.

Now, on to the candidates.

3. Candidates per Hire

Workable defines the number of candidates per hire (CPH) as, succinctly, the number of applicants for a job up to the point of that job being filled. Again, remember, this is a trendline using the 2019 CPH average as a baseline of 100, not the actual number of candidates per hire.

Now that Let’s look at what’s going on here through March:

We’ve talked for months about a prominent spike in the number of applicants per job dating back to July 2022. Ultimately, a 56% increase in CPH from July 2022 to February 2023.

But now, apart from a moderate slowdown from November to December (understandable given that December is slow all around), we finally see the CPH trend coming in lower than the previous month.

Not really by a lot, but it’s there: March’s 136.6 is a drop from February’s 141.5.

We discussed the Great Resurgence in last month’s Hiring Pulse – that’s still happening, of course, but the candidate pool is not a bottomless one. Are we finally reaching the crux of this data point? Or is this just a hiccup and more are on the way? We shall see.

What’s going on here?

As the hiring landscape continues to shift and adapt to the ever-changing job market, one thing we know for sure: the use of AI in the hiring process is growing exponentially. While generative AI tools like ChatGPT can provide significant benefits to hiring teams in terms of time and efficiency, they also come with potential risks and drawbacks.

OK, full disclosure: ChatGPT was used to help write that paragraph above with some minor tweaks. However, it’s on point. We’re in a time where we’re now dealing with yet another earth-shattering development on the heels of previous ones – that being the rise of artificial intelligence in the everyday zeitgeist and lexicon. Sure, we’ve been talking about AI for years but until ChatGPT, we hadn’t really thought collectively about how AI fits into our everyday lives at work and at play.

Now, we’re exploring all the ways in which ChatGPT can be used in human resources, and all the ways in which technology can boost hiring processes. At the core of these conversations is optimization of workflow.

So, let’s go back to this month’s data analysis. We’re seeing a shorter time to fill. We’re seeing more job activity. And we’re (still) seeing a lot of candidates for each of those jobs. Combine all three, and understaffed and underfunded hiring teams are just scrambling to get it all done.

ChatGPT is a real boon for those teams, obviously. You no longer have to write those job descriptions (not from scratch, at least). You no longer need to craft lists of interview questions designed to get what you need to know from the candidate. Yes, we have templates for both and more, but that can only go so far. In these rapidly evolving times, we need something that can keep with the times and meet our current needs immediately. Generative AI tech can do that for us.

But (and of course there’s always a but) as teams grapple with these surging trends and developments in the hiring process, it’s crucial to strike that balance between speed and quality. You know the saying, “He/she who hesitates is lost”? And the other, pretty much opposite saying: “Slow and steady wins the race.”

It’s about finding a balance between both. Speed serves a purpose, and so does quality.

Now, we asked ChatGPT what actionable tips it has based on all of the above. It presented the following (without any edits):

Focus on targeted outreach: Instead of simply casting a wide net with job postings, consider a more targeted approach that identifies and reaches out to qualified candidates directly. This can help ensure a higher quality of candidates and reduce the need for rushed hiring decisions.

Implement AI tools thoughtfully: While AI tools like ChatGPT can provide significant benefits, it is important to implement them thoughtfully and carefully, with an eye toward potential risks and biases. Consider involving human oversight in the AI hiring process to ensure that the best possible candidates are being selected.

Prioritize candidate experience: In a competitive hiring landscape, it is important to prioritize the candidate experience, from the application process to the interview and beyond. By providing a positive experience, you can attract and retain top talent, even in uncertain times.

Good work, bot. And ChatGPT even has the insight to recommend caution on using itself. Ultimately, it’s a great tool to help you in your work, but only if you steer it properly and that you maintain that all-important human touch at the end.

As for how AI will change the working world – it will, in absolute, countless spades. It’s not a coincidence or an accident that everyone is talking about it right now. Jobs will change. Workflows will change. The overall interaction of society will probably change.

And will it impact the economy and in turn our three trends of time to fill, job openings and candidates per hire? Yes, it probably will. Let’s watch and find out.

Until next month…

The Hiring Pulse: Methodology

Because one of the three metrics (Job Openings) is different from the other two metrics (Time to Fill and Candidates per Hire), we’re adopting two very distinct methodologies.

And we chose 2019 as the baseline because, frankly, that’s the last normal year before the pandemic started to present challenges to data analysis among other things.

The majority of the data is sourced from businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

The post Your Hiring Pulse report for April 2023 appeared first on Recruiting Resources: How to Recruit and Hire Better.

Your Hiring Pulse report for March 2023

Keith MacKenzie — Tue, 14 Mar 2023 20:25:48 +0000

We also took a deep dive into five select industries in our dataset and found that the recent surge in the Candidates Per Hire trend isn’t universal – some industries, in fact, are still struggling to hire. This isn’t a huge surprise.

But one thing we do know: recent layoffs are concentrated in the SaaS world, and CPH is rising meteorically as a result.

This month’s Hiring Pulse is going to be a short one. Of course, February only has 28 days and that’s the latest month in our dataset. Nevertheless, this report still packs a punch. Let’s get started!

How we’re looking at data

As always, we look at the worldwide trends for three common SMB hiring metrics:

Time to Fill (TTF)
Total Job Openings (JO)
Candidates per Hire (CPH)

Let’s start analyzing!

Main highlights

The three main highlights for this month’s Hiring Pulse are:

Candidates per Hire climbed for the eighth straight month – but this time, the jump from the previous month is higher than we’ve seen in a long, long time
The CPH trend has come full circle and is now higher than its previous peak two years ago
Small businesses (with <50 full-time employees) are continuing to hire at a brisk pace

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important to understand that definition: jobs that are still open as of the end of February are not included in this graph as they don’t yet have an “end date”. Only the jobs that are filled are included here.

Quick clarification, because people are asking: the data in this chart shows the trendline against the 2019 average as an index of 100, not the actual number of days in TTF.

Got that? Good. Let’s have a look at the monthly TTF trend throughout 2022 against the average of 2019, based on jobs that have been filled:

In January, the TTF trend spiked after a steady decline throughout most of 2022. But a January spike in TTF is completely and totally normal.

And in February, the TTF score dropped from 90.8 in January to 86.8 in February. Again, totally normal.

For every year dating back to 2020, there’s always a drop from January to February in terms of TTF. Here’s what that looked like for each of the three previous years:

2020: 102 in January and 97.3 in February
2021: 95.6 in January and 88.6 in February
2022: 97.4 in January and 90.9 in February

This is not a lot to write home about, honestly. Things are ‘normal’ here. So, let’s move on to the job opening data.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

Again, we have a relatively robust month for job activity with 6.7 jobs per company on average in the network, up just a notch from January’s 6.6.

To put that in perspective, job posting activity remained steady in the latter part of last year, alternating between a low of 6.1 and a high of 6.3 from June through to November before the predicted holiday-season drop to 5.2 for December.

That of course differs based on company size. So let’s break the data down into those buckets.

Larger companies running against the norm

The big jump in job openings for companies with 200 or more full-time employees kind of continues. But while it remains high, February shows a drop to 17 jobs per company on average, down from 18.5 in January.

In past years dating back to the beginning of our dataset, job postings in February were always higher than January for those larger companies. This year, it’s the opposite.

Medium is closer to the median

Last month, we highlighted a modest bump in average job postings for medium-sized businesses (51-200 FTEs) from December to January. It’s now stabilized through February with 5.6 job postings per mid-sized company, down a smidgen from 5.7 in January.

That’s about as stable as can be, considering that over the six months ending February, the busiest month for job postings was 5.8 in September and the quietest month was 5.3 in December.

In past years, the change from January to February differs from one year to the next – but not by much. So, for mid-sized companies, 2023 isn’t anomalous so far.

Small but lively

Last month, we marveled at how those businesses in the 1-50 FTE bracket were posting jobs at an unprecedented rate – in short, higher in January than at any other time in our dataset.

And now? Small businesses are even more active in the hiring space in February, with 4.7 job postings on average compared with January’s 4.2. That’s a 12% jump.

For context: in 2020, February’s job posting average was nearly 5% lower than in January. In 2021 and 2022, February was relatively unchanged from January.

Let’s keep an eye on this interesting trendline going forward. Now, let’s look at who’s applying for these jobs.

3. Candidates per Hire

Workable defines the number of candidates per hire (CPH) as, succinctly, the number of applicants for a job up to the point of that job being filled. Again, remember, this is a trendline using the 2019 CPH average as a baseline of 100, not the actual number of candidates per hire.

Now that Let’s look at what’s going on here through February:

We’re going to look at two full years of data here dating back to January 2021, because the CPH trend is probably the most compelling trendline right now. It starts at a high point in February 2021 at 128 and declines sharply to 84.2 a year later in January 2022.

The trend stays relatively stable for the next six months after January 2022, and then skyrockets from 91 in July 2022 to a staggering 142.3 this last February.

That means a 56% increase in the CPH trend in an eight-month span. And that increase seems to be accelerating.

For instance, the highest MoM increase before 2023 in this chart was 16.8 points from July to August last year.

And now, we see an 18.1-point increase from January to February.

We know all about the Great Resignation. We’ve written plenty about the Great Discontent (and we have a new survey report coming in that area – stay tuned!).

Now? We’re looking at the Great Resurgence when it comes to sheer number of candidates.

What’s going on here?

In last month’s Pulse, we took a deep dive into five select industries in our dataset, each of them with different numbers.

We found that Software as a Service led in terms of the CPH trend, along with Diversified Financials and Media & Entertainment as significant industries experiencing (enjoying? enduring?) a deluge of talent.

Meanwhile, companies in the Hospitals & Healthcare industry sat near the bottom of the CPH spectrum, seeing fewer candidates for their jobs than most other industries. Other industries near the bottom include Retail, Banks, and Consumer Services.

And, on the topic of growing CPH, we saw this interesting insight from LinkedIn, courtesy of Dominic Joyce, Head of Talent Acquisition at Travelex:

In short, next to layoffs and turnover, maybe the one-click apply option is a reason you’re seeing more candidates in your inbox.

To Dominic’s point, some of those may be “lazy” applications. Not all of them, of course – but some of them at least.

This doesn’t mean you should not have easy-apply options – those are appreciated at large by candidates and they have a very valuable purpose. Rather, having more candidates highlights the importance of having a good filtering system in place – one that brings those ideal candidates to the forefront of your application pile.

And, of course, a reliable selection process free of breakdowns even when candidate volume grows exponentially.

That’s especially important right now with a shorter Time to Fill (which means more competitive hiring). That’s also important if you’re hiring in an industry that’s seeing a lot of change and turnover – like in SaaS, for instance.

Just food for thought. See you next month…

The Hiring Pulse: Methodology

Because one of the three metrics (Job Openings) is different from the other two metrics (Time to Fill and Candidates per Hire), we’re adopting two very distinct methodologies.

And we chose 2019 as the baseline because, frankly, that’s the last normal year before the pandemic started to present challenges to data analysis among other things.

The majority of the data is sourced from businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

The post Your Hiring Pulse report for January 2023 appeared first on Recruiting Resources: How to Recruit and Hire Better.

Your Hiring Pulse report for February 2023

Keith MacKenzie — Mon, 13 Feb 2023 19:00:17 +0000

We also took a deep dive into the overall data for 2022 and compared that with the three previous calendar years of 2019, 2020 and 2021. There were some interesting insights in that as well, most notably that CPH was climbing at a rate unseen since the early days of the pandemic in 2020.

This time, with the first month of the new year behind us, we get a taste of what 2023 might look like. And we also take a deep dive into five industry groups in our dataset, because different cohorts are affected differently.

Let’s dive in!

Contents

How we’re looking at data

As always, we look at the worldwide trends for three common SMB hiring metrics:

Time to Fill (TTF)
Total Job Openings (JO)
Candidates per Hire (CPH)

Let’s start analyzing!

Main highlights

The three main highlights for this month’s Hiring Pulse are:

Candidates per Hire is still climbing, for the seventh straight month
Job openings surged in January for companies with 200+ FTEs
Job activity for the Hospital & Health Care industry group is much higher than other select industry groups

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important to understand that definition: jobs that are still open as of the end of January are not included in this graph as they don’t yet have an “end date”. Only the jobs that are filled are included here.

Got that? Good. Let’s have a look at the monthly TTF trend throughout 2022 against the average of 2019, based on jobs that have been filled:

Something’s changed here. After a steady decline in the TTF trend for nearly every month throughout 2022, we see the TTF take a nice jump in January.

Now, let’s not get too excited by this. First things first, this is normal as can be. January normally sees the TTF jump quite a bit – from 88.8 in December 2020 to 96.2 in January 2021, and from 93.2 in December 2021 to 97.2 in January 2022.

And now, the trend grew from 86.4 in December 2022 to 90.6 in January 2023.

What *is* different, however, is that in the Q4 months, TTF increased month over month in 2020 and 2021, but declined month over month in 2022. But that’s the past – the main takeaway we have for this month is that TTF increased as expected in January.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

Last month, we pointed out how the overall average jobs per company in the network dropped to 5.2 after a very stable six-month string where it didn’t go higher than 6.3 or lower than 6.1.

But now, it’s jumped to 6.6 job postings per company in January – the highest since 7.1 in March 2022.

Of course, that differs by company size. So let’s get into that.

A huge jump for larger companies

December saw a significant drop in job postings for enterprise-level companies (200+ FTEs) from previous months, which we’ll “blame” on slower holiday activity. But in January, that number rebounded to 18.5 job postings per company, an increase of 37% over the previous month.

That’s not something to be excited about, though. First, a rebound in job postings in January is very normal especially at the enterprise level – we’ve seen this in past years as well.

And second, past Januaries show the JO average to be at a higher point than most months in the year preceding it. That’s not the case this time – January’s JO activity would be the third-lowest in 2022 (and, it’s worth noting, the two months that were lower are the last two months of 2022).

Medium, not nearly as much

The jump from December to January is also seen in the medium-sized category (51-200 FTEs), growing from 4.7 to 5.4 job postings per company. That’s not as dramatic of a jump as the 200+ crowd, but it’s still a 15% bump.

That being said, there isn’t anything particularly eventful or surprising here. So, let’s move to small businesses.

Jobs are lively for small businesses

Now here’s where the real story lives – in the 1-50 FTE bracket. Let’s add context as to how this group differs from the others.

Small businesses were the only one of the three size categories to be relatively increasing in job postings per company in the latter half of 2022. And the December drop was not particularly dramatic as it was still higher than most months throughout 2022.

Now the story of the hour: at 4.3 job postings per company, small businesses were more active in January 2023 than at any other month dating back to the start of our dataset in January 2019. We repeat: that’s the highest in four entire years. It’s also only the second time in that time span where the JOs per business goes higher than 4.

We discussed last month how the greater agility and shorter planning tenures of small businesses mean that this category is consistently active regardless of holiday seasons and other seasonalities. That may ring true again here.

3. Candidates per Hire

Workable defines the number of candidates per hire (CPH) as, succinctly, the number of applicants for a job up to the point of that job being filled. Let’s look at what’s going on here through January:

Simply put: January sees the CPH trend climb again – from 125.8 to 128.4 – although that’s not nearly as dramatic of a jump as in the two previous months.

It’s still another month-over-month increase – for the seventh straight month since July 2022. When is this trend going to peak?

And is that happening across all industries? Well, no. That’s exactly what we’re looking at our deep dive this month. Let’s take a look.

Deep dive – how ‘normal’ was 2022?

Now, we will be transparent here – our data isn’t perfectly spread out across all industries, all countries, or all functions. I mean, we’re not a government statistical body.

That caveat aside, our dataset is comprehensive enough that we can objectively look at specific industries and get solid insights from them.

So, we’re taking a look at five major industry groups this month with a rough breakdown of what sectors are in each:

Software & Services (IT security, software, etc.)
Commercial & Professional Services (environmental, law, consulting, training, logistics/supply chain, research, etc.)
Hospital & Health Care (exactly this)
Diversified Financials (accounting, financing, investment, VCs, etc.)
Capital Goods (engineering, aviation, defense/space, construction, machinery, etc.)

And a quick second point to make: in past Pulses, when deep-diving into specific categories, we used a category’s 2019 average as the index. But we thought about it and decided it’s better here to use the overall 2019 average as the index – that way, you’re able to see which groups are trending higher or lower than the overall baseline.

Got all that? Let’s get cracking.

Time to Fill

First, of course, Time to Fill:

What really stands out here is the Software & Services (S&S) group. Two main things to look at here:

TTF was much shorter for S&S than any of the other categories for the first half of 2022 – 28.9 points lower than second-lowest Commercial & Professional Services (C&PS) in January of last year
TTF then surges to 98.1 for January 2023, higher than any other group seen here

The other takeaway is that Capital Goods went the opposite direction – the TTF trend was much higher than any other group here to start 2022 (114.4 for January) before coming down to align with the others throughout the year.

Meanwhile, C&PS started with a higher TTF trend, bounced around a bit throughout the year, and then drops to 82.4 for January 2023.

Job Openings

Now, on to job openings. This one simply looks at average job postings per company in each group.

Let’s look:

Let’s just call it for what it is. If you’re operating in the Hospital & Health Care (H&HC) group, you’re probably hiring. You may even be desperate to hire – more on that in the CPH section below.

In short – H&HC companies in our dataset posted a stunning 27.4 new jobs on average in January 2023, effectively doubling in a six-month span dating back to August 2022’s 13.5.

What’s going on? A few factors – first, jobs in health care have been projected to be on the rise and this data just proves it. According to the US Bureau of Labor Statistics, employment in healthcare is predicted to grow 13% between 2021 and 2031 – adding more than two million jobs throughout the decade and at a much higher rate than jobs overall.

And second, perhaps unsurprisingly, job quits in healthcare are higher than the norm due to the stress on the sector throughout the pandemic leading to burnout. Retirement is another significant factor here.

Candidates per Hire

Finally, let’s look at candidates per hire for each of the industry groups:

This, again, is unsurprising due to all the layoffs in the tech sector in the latter part of 2022 and now. The CPH trend for S&S is much, much higher than any of the other groups at 190.4, and has been in the clear number-one spot for every month since June 2022. When you take out the anomaly that is May 2022 for the H&HC group, S&S is the runaway leader in terms of CPH throughout.

Let’s not let that overshadow our second takeaway from the CPH deep dive: Diversified Financials also saw a consistent climb in the CPH trend for the latter half of 2022. Not nearly as dramatic as S&S, but it’s still there.

And because we called so much attention to the job opens for H&HC above, it’s worth noting that CPH for that group is much lower than any other except for Capital Goods.

What’s going on here?

The data is clear (and was obvious anyway): not all industries are built the same, nor do they operate the same. And likewise, they’re not affected by the undulations of the economy in the same way. The differences between S&S, enterprise-level companies, and other cohorts are convincing.

So, if you’re reading this and struggling to understand why you keep seeing news about all of the following at once, you’re not just seeing things:

surging layoff numbers (84,414 employees let go in January in the US)
high numbers of new jobs added (517,000 new jobs in January in the US)
job quits continue at high levels (50.5 million quits in 2022 in the US)
candidate attraction struggles
*and* an almost unmanageable deluge of candidates in response to job postings.

These don’t seem to align logically, do they? But alas, they are. We like to think of it as a restabilization of the system. The last three years have been certifiably tumultuous throwing the system off balance, with strong reactions that forced imbalances in other directions in an attempt to bring it all back under control.

Consider this analogy: imagine you’re carrying a wide, shallow dish filled with water across the room. It’s heavy and it sloshes back and forth with every movement you make (i.e. COVID, Great Resignation, what have you), and every action you take has the direct opposite effect rather than a calming of the waters. That’s what’s going on here.

Will the waters settle? Yes, of course. Not to the way it was before; that much is agreed on. But when? And how? Those are the interesting questions worth thinking about when we deep-dive into how the job data differs across company sizes, regions, industries, and so on.

Till next month…

The Hiring Pulse: Methodology

Because one of the three metrics (Job Openings) is different from the other two metrics (Time to Fill and Candidates per Hire), we’re adopting two very distinct methodologies.

And we chose 2019 as the baseline because, frankly, that’s the last normal year before the pandemic started to present challenges to data analysis among other things.

The majority of the data is sourced from businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

The post Your Hiring Pulse report for January 2023 appeared first on Recruiting Resources: How to Recruit and Hire Better.

Your Hiring Pulse report for January 2023

Keith MacKenzie — Tue, 10 Jan 2023 18:06:07 +0000

What’s continuing now is that, even with the tech talent migration, our data shows the candidate market is absolutely flooded and the talent shortage is becoming a thing of the past. This poses challenges to hiring teams everywhere, especially in the logistical management of larger applicant numbers for every job opening. If you’re seeing your pipeline getting clogged, you’re not alone.

The data this time around is more than convincing. We’re seeing 35% more candidates per hire in December than six months earlier – that’s an astronomical increase unseen since the early days of the COVID-19 pandemic.

Plus, with the full data of 2022 on our hands, we’re able to look at how 2022 sizes up against previous years.

Let’s dive in!

How we’re looking at data

As always, we look at the worldwide trends for three common SMB hiring metrics:

Time to Fill (TTF)
Total Job Openings (JO)
Candidates per Hire (CPH)

Let’s start analyzing!

Main highlights

The three main highlights for this month’s Hiring Pulse are:

Candidates per Hire is surging at a rate unseen in nearly three years
Job openings for small businesses only start dipping in December, compared with dips in both November and December for their larger counterparts
Time to Fill normally grows in December – but not this time around

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important to understand that definition: jobs that are still open as of the end of December are not included in this graph as they don’t yet have an “end date”. Only the jobs that are filled are included here.

Got that? Good. Let’s have a look at the monthly TTF trend throughout 2022 against the average of 2019, based on jobs that have been filled:

The main insight here is that Time to Fill once again hit a new low for the calendar year. It’s been three straight months of “lowest in 2022”, or for every month in Q4.

And looking at that chart above, it looks like it’s a total decline from the start to the end of 2022. But that’s not necessarily true if you look a little deeper. Take out the January metric of 98.9 – which is a full 5.9 points higher than the second-highest month in May – and take out Q4 altogether, and honestly, TTF holds steady for February all the way through to September.

We’ll talk more about it in our deep dive below, but suffice to say that the very high January number is normal, whereas the very low Q4 numbers are not normal.

But, in between those two extremes, TTF looks more stabilized compared with the previous two years. More on that below in our year-over-year comparison.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

As you can see, we’re making it a standard to look at the Job Openings data across the three company size buckets of 1-50, 51-200, and 200+ full-time employees (FTEs).

First, before we start looking at each of the buckets, note that the overall average jobs per company in the network plunges in December to 5.2. That’s after very little change for the six months before that, ranging from 6.1 to 6.3 jobs per account throughout that period.

A huge drop for enterprises

Now, which of the size buckets is at fault here? At first glance, it’s the enterprise-level companies (200+ FTEs) who slowed down their hiring activity throughout the month, dropping a full 3.8 points from 17.3 in November to 13.5 in December. Of course, because the big kids will normally have more job activity in either direction, this will skew that overall average

Medium, not nearly as much

But we’re also seeing a drop in medium-sized business (51-200 FTEs) job activity from 5.1 in November to 4.7 in December, albeit not as dramatic of a drop. Nevertheless, like at the enterprise level, this is a continuation of the slow and steady decline in job activity in the Q4 months of 2022.

Jobs be nimble, jobs be quick for small businesses

What stands out as different for this month’s Hiring Pulse is in the job activity for small-sized businesses (1-50 FTEs). While their enterprise- and middle-sized businesses showed decline in Q4, small-sized businesses were actually increasing up to the end of November, with 3.1 job postings on average in August, 3.6 in September, 3.8 in October, and 4.2 in November.

And here’s the interesting bit: December’s 3.5 average for small business job postings is not even the lowest for 2022 – that honor goes to June and August with 3.1 for each. That stands in stark contrast to the other two company-size buckets, which both hit convincing 2022 lows in December.

There are many different conclusions to draw from all this – the one we’ll make here is that smaller businesses tend to be more agile and their senior management are more likely to be operating around the clock because they kind of have to. They wear many different hats and may also be financially invested in their business, rather than simply being employees who can take time off in December for the holidays.

There’s sometimes a personal cost, especially when one has family, but at a strictly business level, this speaks to the strength of smaller organizations – they can be nimble and that’s crucial during recession-prone times when it’s often difficult to plan beyond the next quarter. It’s a potential generalization, but it’s a point worth considering.

3. Candidates per Hire

Last month, we pointed to four straight months of higher-than-normal CPH data points, each higher than the previous one.

You can now make it five. Five straight months of astronomical month-over-month increases to close out 2022. To put it in perspective, back in November’s Hiring Pulse, we showed that the average candidates per hire for October was 24% higher than in July. It’s now 34.9% higher.

Let’s put it into perspective: if you were getting, say, 100 applicants for a job in July, this means that last month, you’re getting 135 applicants for your open roles on average. That’s 35 more applications you need to sift through. And as you move your applicants through the recruitment funnel, you’re screening more candidates per job, and likely interviewing more of them in the first part of the funnel.

That’s maybe a good thing for companies who were struggling to find worthy candidates for their open jobs during the height of the Great Resignation, but not a good thing for resource-strapped companies who are barely staying ahead of all the additional work on their plate.

In fact, our New World of Work survey in 2022 showed that reduced capacity to recruit is more of a challenge today than in 2020, with 27.5% saying so now compared with 14.9% two years ago.

Note: that survey was conducted in early summer 2022, well before this surge in CPH. We’re now seeing cutbacks and layoffs especially in the tech sector, and consequently a huge rise in CPH – but bet your bottom dollar (or pound or euro or what have you) that companies are not adding to payroll to support their hiring teams.

So… a growing CPH necessitates optimization in the recruitment process (insert shameless plug for Workable which actually does help in terms of doing more with less).

Deep dive – how ‘normal’ was 2022?

We’ve already covered to some extent what 2022 looks like for each of the three metrics. Now, with a complete 2022 dataset, we’re taking a deep dive and comparing the most recent year with the previous three calendar years (2019, 2020, and 2021).

And for visual impression, we’re overlaying each of the years into a single chart for each of the metrics so you can really compare.

Quick note before we really dive in: the data for Time to Fill and Candidates per Hire is based on an index, that being the average of 2019 as a whole, which is set as 100. We’ve included 2019 in these year-over-year comparisons for extended analysis – yes, we’re even comparing the months of 2019 against its own annual average.

What we’re doing a little differently just for this deep dive is the job opening data. Since it’s normally based on hard averages (i.e. job postings per company) and not on a 2019 index, it becomes more awkward to do a year-over-year analysis because our network has grown substantially over the years and, with it, the job postings.

So, instead of looking at just raw averages or even lining things up against the 2019 index, we’re using the first month of the year (January) as an index of 100 for each year, and sizing each month of that year against January.

Hope that makes sense! Let’s get into what was ‘normal’ about 2022 and how ‘normal’ it actually was compared with previous years.

Time to Fill

First, of course, Time to Fill:

So, the first and most obvious commonality across all years is that TTF is naturally higher in January than any other month, takes a bit of a drop in February, and kind of fluctuates from there.

2019, being the last ‘normal’ year – and we stand by that statement – shows only minimal fluctuation. 2020, which of course was a rather cataclysmic year for anyone personally and professionally, shows a rather stable TTF right up to April as the other three years continue to drop. But then, 2020 plummeted resoundingly from roughly 100 in March and April down to 84.2, 83, and 83.8 in the Q3 months before recovering slightly in the last quarter.

The other thing that stands out is something we alluded to above: 2022 showed consecutive month-over-month declines in the TTF metric from September all the way to December. This differs from the other three years, which all show relatively stable TTFs with even an increase in TTF for December for 2019 and 2021.

So, if we’re going to talk about what even is ‘normal’, it’s kind of hard to suss that out even with the last four years on full display.

Job Openings

Now, on to job openings. Remember, instead of looking at it as raw average job openings per company, we’re simply using January of each year as the index for that year. That way, every year starts at 100, and goes up or down from there.

Also, we have four different graphs here, because we’re looking at each of the FTE size buckets:

JO trendline for all businesses

Let’s look at the overall trendline for starters:

Yeah, yeah. That dip in April 2020 needs no explanation. We all know what happened. So let’s just scrub that from memory (and we do apologize for reminding you about it).

On to the comparables: what seems to be relatively normal across all four years is how the job opening trend remains relatively steady in mid-year and in some cases even grows a little bit in the Q3 months.

Another trend that looks to be consistent regardless of year is the drop in job openings in the last month of the year – understandable because of holidays and it being a relatively slow month for business all around.

Keep that one in mind – more on that below.

JO trendline for small businesses

Now, let’s look at the small-business job opening trendline:

What’s interesting about this is how 2021 and 2022 show a very healthy jump in small-business job openings for November which stands in contrast to 2019 and 2020.

What also stands out is how the job openings for small businesses climb significantly for September, October and November in 2022, while remaining relatively stable in the other three years.

One part that intrigued us is that the 1-50 FTE bucket is the only one that showed a drop in job openings for just December and not for both November and December as in the other two size buckets (and in the overall average).

Again, numerous reasons for this – one explanation to think about is, again, that small businesses are more nimble and perhaps work on much more of a month-to-month basis than their larger counterparts. Execs may not be thinking as far into the future when they’re running a smaller kayak of 15 employees as when they’re operating a larger ocean liner of 250 employees. Again, a potential generalization, but worth thinking about.

JO trendline for medium-sized businesses

Now, let’s look at the medium-sized business job activity:

What’s markedly different here for businesses with 51-200 FTEs is how much healthier the market looked for 2021 going out from January – it rises far above the others.

This is a sign of economic recovery from 2020, of course, likely in tandem with Great Resignation fallout – this all leads to more jobs added to payroll as companies grow (or recover, rather) and also, more backfill as quit rates run through the roof towards the end of 2021.

JO trendline for enterprises

Now keep that in mind while looking at enterprise-level businesses:

See, companies with more than 200 FTEs also showed plenty of job activity in 2021, higher vs. the January index than the other three years – but not standing out nearly as much as 2021 was for companies with 51-200 employees. Again, this is likely a combination of economic recovery and the Great Resignation.

What’s a little concerning about all of these job opening graphs is how the trend looks to be lower than other years for 2022 and going sharply downhill. We’ve heard talk about a recession since the early days of Q2 2022 – and companies cutting back in preparation.

This is continuing to happen at the start of 2023, and frustratingly for the talent market, means fewer jobs on the horizon.

Which leads us to:

Candidates per Hire

Are you ready?

We will keep this succinct: the CPH metric is now trending at the same level as at the end of the catastrophic year of 2020. What’s different this time is that the CPH trend is on a consistently uphill climb since mid-2022 and hitting new highs every month since September.

In 2020, CPH was at astronomical highs and coming down pretty drastically for November and December. And with the Great Resignation, the CPH trend continued to drop throughout 2021 and then held steady throughout the first half of 2022.

And now, in complete contrast to any of the other years, CPH is climbing at a rate unseen since those early months in 2020. People talked about how 2020 showed a recession unlike any other – the difference is that at the time, the volatility hit us like a truck on a dark country road thanks to an unanticipated pandemic.

This time, we’ve been anticipating a change in the economy for many months now.

What’s the difference? Well, the huge drop in the economy in early 2020 was in direct response to a single development, and because it was so swift and severe, the rebound was also swift.

This time, it’s much more complex – it’s not just about a pandemic. It’s about supply chains, a war in Ukraine, rising food and gas prices, consumer hesitancy, and other things in what’s being called a permacrisis.

Wait, a permacrisis? What’s that? Read on:

What’s going on here?

The opening lines to a recent Economist article read as follows:

“The editors of the Collins English Dictionary have declared ‘permacrisis’ to be their word of the year for 2022. Defined as an ‘an extended period of instability and insecurity’, it is an ugly portmanteau that accurately encapsulates today’s world as 2023 dawns.”

That’s scary stuff, indeed. That’s the tone we’re also setting for 2023 – if it isn’t already, it’s going to be tough times for businesses and employers.

But there’s a kind-of glimmer for you: you may still be needing to backfill vacated roles and fill new roles opened up due to restructurings. But for many of those job openings, a flood of candidates will come crashing through.

This will add stress to your hiring pipeline every step of the way. You, of course, may be reluctant to add to your payroll that’s responsible for hiring – which is understandable,. Instead, you’ll want to optimize your existing process.

We talked last month about automation using recruitment technology – you can screen far more candidates using one-way video interviews, keep them regularly informed with automated messaging, and relieve your recruiters of scheduling hassles using interview self-scheduling.

There are flexible solutions that can rise and fall with your hiring tide. Plus, you will show your value as a hiring team member that makes you even more indispensable to a company that’s trying to survive this permacrisis.

Stay strong, and see you next month.

The Hiring Pulse: Methodology

Because one of the three metrics (Job Openings) is different from the other two metrics (Time to Fill and Candidates per Hire), we’re adopting two very distinct methodologies.

And we chose 2019 as the baseline because, frankly, that’s the last normal year before the pandemic started to present challenges to data analysis among other things.

The majority of the data is sourced from businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

The post Your Hiring Pulse report for December 2022 appeared first on Recruiting Resources: How to Recruit and Hire Better.

Your Hiring Pulse report for December 2022

Keith MacKenzie — Tue, 13 Dec 2022 15:43:05 +0000

But now, we’re looking at the data and seeing some interesting ongoing trends that keep topping trends from the previous month – and we’re drawing some fresh, but not different, conclusions.

Let’s take a look:

How we’re looking at data

Want a more detailed methodology? Jump to the end and check it out.

As always, we look at the worldwide trends for three common SMB hiring metrics:

Time to Fill (TTF)
Total Job Openings
Candidates per Hire (CPH)

Let’s start analyzing!

Main highlights

The three main highlights for this month’s Hiring Pulse are:

Small businesses are hiring more, whereas enterprise-level businesses are hiring less
Candidates are flooding the job market at a rate unseen in a year and a half
Huge numbers in Silicon Valley tech layoffs could lead to cross-border mobility not only for those laid off, but for employers as well

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important to understand that definition: jobs that are still open as of the end of November are not included in this graph as they don’t yet have an “end date”. Only the jobs that are filled are included here.

Got that? Good. Let’s have a look at the monthly TTF trend against the average of 2019, based on jobs that have been filled from the start of 2020 through to the end of November 2022:

Last month, we marked a new low for Time to Fill for 2022 when TTF hit 88.7 (reported as 88.4 last month – since updated with more complete data). Well, we’ve again hit another new low in November, with the TTF trend dropping to 88.2.

That’s the lowest it’s been since May 2021 when TTF was 87.8. And this is the second consecutive month that it’s been below 90.

Let’s compare to the Ghosts of Hiring Past. Note the three pretty significant spikes in that nearly three-year span in the chart above. No, those aren’t anomalies – they are all in January. This can be explained by saying that work processes slow down in December as we go through the motions of holiday season, and that adds days – weeks, even – to the normal time spent on filling open roles. So, TTF takes a leap in the post-holiday period.

But what’s curious this time around is in the months preceding January. In previous years, the Q4 months show an incline in the TTF trend and climaxing in the first month of the new year. But this time in 2022, there’s a marked decline month over month.

We’ll have to wait until February 2023 to see what January looks like this time – but if you wanted to put down a wager, it might not be outrageous to predict that the “post-holiday TTF spike” may not be as prominent as in the past.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

As we did in a Hiring Pulse a couple of months ago, we’re again looking at total job postings per business across three separate size buckets – companies with 1-50 full-time employees (FTEs), 51-200 FTEs, and 200 or more employees. And for a baseline, we’ve also included a line for all businesses put together.

What stands out here is how the smallest bucket – the one with 1-50 FTEs – is growing significantly, with four straight months of increasing job activity starting with 3.1 job postings per business in August up to 4.2 job postings per business in November. That’s more than one extra job posting per business on average.

And while medium-sized businesses (51-200 FTEs) hold steady across time, enterprise-level businesses (200+) are dropping dramatically over the past three months. In September, enterprises posted an average of 19.4 jobs, but that goes down to 17.4 in November. That’s two full job postings less on average.

Unless you’ve been living under a rock or on the moon, and especially if you’re in the tech space, you’re well aware of the mounting layoffs grabbing headlines every week. As it happens, according to Visual Capitalist, November saw more than twice as many layoffs in the month (59,710 cuts) compared with the previous 2022 monthly high set in June (29,299).

But what’s noteworthy about that Visual Capitalist chart is that a good half of the layoffs are attributed to just 11 companies – all of which we’re very familiar with. Meta, Amazon and Twitter are the most prominent, followed by Carvana, Doordash, Stripe, and a handful of other tech behemoths.

What are we saying here? Yes, smaller companies lay off fewer employees, which makes a layoff event less prominent in their case. However, the flip side of the coin is that smaller businesses – those in the 1-50 FTE bucket – can be more nimble. They’re like hundreds of thousands of kayaks among a few ocean liners, adapting as they go. The ebbs and flows of the currents affect them too, but they can roll with the changes more quickly.

So, jumping from three to four job postings on average isn’t necessarily a sign of economic health, but rather, a sign of increased agility in times of turbulence.

3. Candidates per Hire

This is resounding. Four straight months of higher-than-normal CPH data points – and each month higher than the previous one. In November, we’re seeing the highest CPH trend since the beginning of last year.

And for perspective – the beginning of last year marked the end of astronomical highs in the CPH trend; you can see that in the updated chart. The start of that data mountain there can be correlated with – and directly linked to – the advent of the pandemic. Layoffs hit unprecedented highs in Q2 2020 – leading to the market being flooded with candidates.

But as things slowly reached a new normal, we saw Anthony Klotz’ Great Resignation prediction come true, with job quits going through the roof. And correlating with that – again, not purely coincidentally – was a sharp drop in candidates per job to below the 2019 average starting in August 2021 when the trend hit 97.5. In short: when people quit, they weren’t looking for new jobs. They were checking out in a big eff you to the system altogether.

The CPH metric stayed underwater all the way to August of this year, when a staggering 15.5-point jump from July brought it back up to 105.7. And from there on, as you can see, it’s hitting new recent highs, culminating in 116.2 for November.

Candidates are flooding the market again – and while many may be a result of layoffs, we’ll wager that many others are realizing that checking out of the system isn’t a sustainable option and they’re reentering the workforce.

What’s going on here?

First, let’s look at a different consequence of increased layoffs in the tech sector. It means that tens of thousands of foreign workers are having to leave the United States because they’re in the country on sponsored H1-B work visas.

According to the article, this may mean the US will fall behind in tech competitiveness. It also means a potential upside for tech companies headquartered outside of the country, such as in Canada and the European Union – because those tech workers will be looking for jobs in places with more permissive work visa policies.

We’ve kind of seen this happen in the recent past, but in very different circumstances, when the Trump administration made it more difficult to get an H1-B visa. This led to a Silicon Valley brain drain, with a good portion of talent – and companies, too – moving north to Canada to take advantage of more friendly work visa policies.

Now, on to candidates per hire – the significant growth in that metric isn’t unprecedented by a long shot – but it’s indicative of things to come. For a long time now, the major challenge that recruiters and hiring managers had faced was in candidate sourcing and attraction.

In short, they haven’t been able to pull in an adequate number of applicants when they open up a new job.

Either they aren’t sourcing those candidates in the right places, or their value proposition just isn’t up to snuff and it’s been a candidate’s market all this time.

This meant that hiring teams worked diligently on their recruitment marketing tactics, promoting their companies as great places to work. They’ve also dug deeper into the market to find – and even proactively contact – those ideal candidates, in hopes of luring them to their open roles.

But all that is changing. Let’s call COVID an anomaly and say that for the first time in actual years, the scales are tipping in the other direction. We’re seeing a situation where all someone has to do is post a job, and they get slammed with a hefty number of quality applicants within minutes.

This is no longer one-click-apply territory – these are legit jobseekers sent out to pasture by their most recent employer, and they’re actively and aggressively looking for a new job.

What does that mean for hiring teams? It means the hiring pipeline is about to get clogged. This means there’ll be more time and resources spent on screening and evaluating candidates, so as to not let good ones fall through the cracks. It also means evaluating them differently such that you try to get a sense of their motivation to work for you – is the candidate simply trying to get a job in general, or do they really want to work in your company?

Even if it’s honest to say that candidates do need jobs so they can pay rent, buy food, support families, and the like, it’s still important to the employer to hire someone who’s really keen to work at that specific job and to do a good job of it, too. And for those new hires to stick around as well, as opposed to seeing your opportunity as a stepping stone to a more permanent solution.

Not only does that change the evaluation game, it also means your hiring teams – already strapped for time and resources after cutbacks and streamlinings – will be even more stress-tested going forward. You want your hiring process to be free of breakdowns. This is where automation becomes a boon for you, the SMB employer.

Automation using recruitment technology – for example, one-way video interviews, automated messaging and interview self-scheduling features – will be incredibly useful going forward.

Have a great holiday and see you in 2023!

The Hiring Pulse: Methodology

Because one of the three metrics (Job Openings) is different from the other two metrics (Time to Fill and Candidates per Hire), we’re adopting two very distinct methodologies.

And we chose 2019 as the baseline because, frankly, that’s the last normal year before the pandemic started to present challenges to data analysis among other things.

The majority of the data is sourced from businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

The post Your Hiring Pulse report for December 2022 appeared first on Recruiting Resources: How to Recruit and Hire Better.

Your Hiring Pulse report for November 2022

Keith MacKenzie — Tue, 08 Nov 2022 14:49:45 +0000

This month, we take on a similar narrative, but we also cast light on some eye-opening trends in October’s dataset.

Let’s get right to it:

How we’re looking at data

If you missed last month’s update, we’ve established two new methodologies in how we look at the Hiring Pulse dataset. For Time to Fill and Candidates per Hire, we’re measuring each month using the average of 2019, the last “normal” year, as a baseline index of 100.

Want a more detailed methodology? Jump to the end and check it out.

As always, we look at the worldwide trends for three common SMB hiring metrics:

Time to Fill (TTF)
Total Job Openings
Candidates per Hire (CPH)

Let’s start analyzing!

Main highlights

The three main highlights for this month’s Hiring Pulse are:

Time to Fill has hit a significant new low for 2022, and is also the biggest month-to-month drop since January to February
Candidates Per Hire keeps climbing and climbing
The last time we saw such a dramatic jump in CPH in consecutive months was in early-mid 2020

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important to understand that definition: jobs that are still open as of the end of October are not included in this graph as they don’t yet have an “end date”. Only the jobs that are filled are included here.

Got that? Good. Let’s have a look at the monthly TTF trend against the average of 2019, based on jobs that have been filled from the start of 2022 through to the end of October 2022:

We are now at a new low for Time to Fill for the 2022 calendar year, with the average TTF for October just 88.4. It’s not just a new low – it’s significantly lower, a 5-point drop.

That’s the biggest month-to-month change in either direction since January’s 101.0 dropped 7.3 points to 93.7 for February.

The narrative we’ve carried over the last couple of months is that recession jitters are pushing the data all over the place. We’ve also said that those currently hiring were rushing to fill jobs throughout July and August as the Great Resignation opened up gaps in organizational workflows that urgently need to be filled.

After a jump in September to 93.4, the new and sudden drop can be explained as upcoming recession concerns leading to organizational (or departmental) restructurings leading to new gaps being opened up.

That’s a little different from gaps as a result of people quitting – in this case, it’s more as a result of optimization. Department leaders may be identifying ways to combine two roles into one or three roles into two as a cost-cutting measure – and these are new roles that need to be filled.

That’s one reason we may see new job openings in companies that have just laid people off. Which brings us to the second potential explanation: the layoffs themselves. Twitter wasn’t the first – just the most prominent to date. We’ve been learning about layoffs for some time now – and this leads to the market being flooded with high-quality candidates actively looking for new jobs right away.

This isn’t great for those who lost their jobs, but there’s an upside for those actively hiring. Candidate pools are now deeper than in the past. Employers don’t have to compete nearly as much or even work as much to source that newly available talent. So, it’s logistically quicker to fill those roles.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

This is a very simple graph and speaks for itself. Ultimately, what stands out is that the top two most active months for job postings via the Workable network are March with 6.5 jobs posted per company on average, and most recently October, with 6.4 jobs per company on average.

Regardless of the weird economic climate that we’re in, this chart rings as relatively normal according to our metrics history. The end of Q1 and the start of Q4 are busy hiring seasons and we’re seeing that in 2022 as well. In the past, we’ve seen that October jumps a bit, takes a dip in November, and then jumps again in December.

Let’s watch this space closely and see what it looks like as we round up 2022.

3. Candidates per Hire

Last month, we pointed out what we thought was a “pretty huge jump” in the CPH metric, somersaulting over the baseline index from 91.1 in July to 106.6 in August and 106.8 in September.

And now? It’s gone even higher – to 112.8 in October.

That’s the highest that it’s been since the metric hit 115.2 in March 2021. And the CPH metric was below the baseline from August 2021 all the way to this past July. It’s only in the last three months that we’ve seen such a dramatic reversal in CPH.

For context: in January and February 2020, the metric stood at 93.9 and 88.7 respectively. It then jumped to 102.6 in March 2020 and stayed above the baseline for 14 consecutive months to April 2021. In the midst of that was five straight 120-and-higher months from June to October 2020. July 2020 was 137.0 and October 2020 was 136.5.

This is all pandemic-related, of course. March 2020 saw many workers moved to remote work or furloughed, as a stopgap measure. When it became clear that COVID-19 wasn’t going away anytime soon, companies resorted to the painful process of layoffs en masse. This jump in CPH is the result.

Why are we talking about this two years later? Because we’re seeing similarities in how the CPH is changing now. Recession fears started a few months ago – and layoffs then started happening after that. Combine that with fewer jobs being posted, and the CPH starts to grow again. Just like it did in 2020.

What’s going on here?

Honestly, Twitter is just the tip of the iceberg of what’s going on here. Agree or disagree with Elon Musk if you will, but what’s happening in the e-hallways of that social media monolith is just a microcosm of what’s happening out there.

Layoffs are happening left, right, and center – including reports of Facebook parent Meta also turning to layoffs for the first time in its history. Lyft and Stripe are also laying off people, and Apple and Amazon are freezing their hiring processes. There is, of course, a trickle-down effect.

And, as mentioned above, those layoffs mean tens – likely hundreds – of thousands of new candidates flooding the market. This isn’t Big Quit material – these are people who are involuntarily severed from their income lifeline, and after a frustrated sob in the bathtub for an evening, are rolling up their sleeves and jumping right back into the job fray the next day.

The result is what we’re seeing here.

However, we have some kind-of good news for you. Much of the recession talk is still anticipatory, and different experts are saying different things. While more execs are bringing up the recession in their quarterly earnings conference calls, stock speculators at sites such as Yahoo! Finance are saying the talk of a recession may be greatly exaggerated and fiscal pundits at Goldman Sachs suggest we’re not necessarily doomed to a recession.

Ultimately, there isn’t clear agreement on what’s going to happen. While we know businesses don’t appreciate uncertainty, this uncertainty is good if anything. And organizations seem to be responding aggressively ahead of what *might* happen.

Let’s think of it this way: if you see your kid approaching a stove and yell at them not to touch it, and then you realize the stove wasn’t actually hot, then is that a good thing? Yes, it is. It’s good that you took the precautionary measure even if you weren’t entirely sure of the stove’s setting at that time, because the end result is the same: your kid doesn’t get burned.

In that spirit, all this anticipation and action ahead of what may be a recession could be seen as a good thing.

Let’s keep one eye on the overall conversation around recessions and the other eye on upcoming Hiring Pulse data trends, and keep all this in mind.

There’s always something in all this that can help us move forward with confidence even if we’re not sure of the danger of the hot stove.

The Hiring Pulse: Methodology

Because one of the three metrics (Job Openings) is different from the other two metrics (Time to Fill and Candidates per Hire), we’re adopting two very distinct methodologies.

And we chose 2019 as the baseline because, frankly, that’s the last normal year before the pandemic started to present challenges to data analysis among other things.

The majority of the data is sourced from businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

The post Your Hiring Pulse report for November 2022 appeared first on Recruiting Resources: How to Recruit and Hire Better.

Your Hiring Pulse report for October 2022

Keith MacKenzie — Tue, 18 Oct 2022 15:16:56 +0000

Now, this month, we’re taking the plunge into SMB hiring metrics as per usual, but with an update in how we look at the dataset. Let’s get right to it:

How we’re looking at data

In past Hiring Pulses from the very beginning, we had a dilemma: how do you look at data when the economic – and therefore hiring – landscape is so tumultuous from one month to the next? The big concern was that it’s hard to establish solid benchmarks when the goalposts keep moving all the time.

So, in the beginning, instead of simply establishing historical benchmarks from years of data, we chose to look at data based on a trailing three-month average. For instance, we would compare August’s Time to Fill against the rolling average of the three previous months – in this case, May, June, and July.

Now, we’ve established two new methodologies. For Time to Fill and Candidates per Hire, we’re measuring each month using the average of 2019, the last “normal” year, as a baseline index of 100.

Want a more detailed methodology? Jump to the end and check it out.

As always, we look at the worldwide trends for three common SMB hiring metrics:

Time to Fill (TTF)
Total Job Openings
Candidates per Hire (CPH)

Let’s start analyzing!

Main highlights

The three main highlights for this month’s Hiring Pulse are:

TTF is coming down (again) after a jump in TTF for May, June and July
Job openings are very busy for companies with 200+ FTEs – but not so much for mid-sized businesses (51-200 FTEs)
Candidates per Hire numbers are going through the roof in the last two months

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important to understand that definition: jobs that are still open as of the end of September are not included in this graph as they don’t yet have an “end date”. Only the jobs that are filled are included here.

Got that? Good. Let’s have a look at the monthly TTF trend against the average of 2019, based on jobs that have been filled from the start of 2019 through to the end of September 2022:

In the most recent Hiring Pulses, we noted that the Time to Fill trend has been dropping over time. This isn’t different with the new approach to the dataset. For instance, the average Time to Fill for August is just 91.5% of the 2019 average.

It’s worth noting the small uptick in TTF for September – but that’s an increase of just .9 of a point. Also worth noting is how May, June and July saw a slight bump upwards in TTF, and there’s of course January with an above-average time to fill a role.

We speculated last month about how recession jitters, greater bandwidth in hiring teams due to business slowdowns in August, and the “rush to fill” urgent gaps in the workforce are all potential factors contributing to the drop in the Time to Fill metric in August.

However, our recently published survey report on the New World of Work for 2022 finds that depleted resources in hiring teams is a growing challenge in hiring – with nearly double the respondents citing this as a challenge compared with two years ago (27.5% vs. 14.9%).

So, that might cancel out the “greater bandwidth in hiring teams” theory. It’s gotta be recession jitters and the rush to fill jobs. And it may not even be those issues, with TTF coming up a bit in September.

What else might be going on?

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

You’ll notice right off the bat that we’re breaking the data down into three separate buckets – companies with 1-50 full-time employees (small businesses), companies with 51-200 FTEs (mid-sized businesses), and companies with 200 or more FTEs. And for comparison’s sake, we’ve also added a line showing the average across all businesses regardless of size.

Naturally, the larger businesses hire more frequently – there’s more occurrences of turnover, backfill, stopgaps, and business growth/adjustments, meaning more job postings in general.

So don’t compare sizes – that’s never a good result.

Instead, look at how the wavelengths for each FTE bucket differs. Let’s look at earlier in the year first where two notable trends stand out:

The 200+ category shows a dramatic jump in job postings at the start of the year, from 13.8 job postings in January to 14.5 in February, a .8 jump compared with a negative .5 for the 51-200 group (8.3 to 7.8) and a milder, even inconsequential -.1 for the 1-50 club (3.7 to 3.6)
Meanwhile, April to May shows a more dramatic drop for the 51-200 group (-.3) compared with just -.1 for 200+ and a flatline for 1-50

And now, some dramatic fluctuations between the company sizes reveal themselves in the three most recent months of the dataset:

The two larger buckets both saw a -.4 change in the average job postings per company from May to June, compared with the exact opposite for the 1-50 category
After that drop, the largest companies in the dataset (200+ FTEs) saw a significant rebound of .9 more job postings on average in July compared with June, while the smallest companies (1-50 FTEs) saw a -.4 shift in their own job posting average
And then, finally, while the largest and smallest companies saw more job posting activity in September compared with August, mid-sized companies (51-200 FTEs) saw the opposite trend, dropping .4 points

Speculation about the mid-sized companies is that many of them are in tech, and we know how hard SaaS companies are being hit by recession fears right now. This may be what we’re seeing here – and we know you’re likely an SMB that’s come here for insights.

So, let’s take an optimistic approach to this if we can: fewer job openings for your company size means there’s less competition with other employers when you’re opening a new job during this time. Does that mean we’ll also see more candidates now with a less diluted talent pool? Well, let’s find out.

3. Candidates per Hire

Just as we expected. The last two months see a pretty huge jump in the Candidate per Hire metric, ricocheting from a below-baseline 91.1 up to 106.6 in August and 106.8 in September.

That’s a staggering uptick – a swing of 15.5 and 15.7 percentage points. If you were getting 91 candidates in a job a couple of months ago, you’d be seeing 106 or 107 candidates just last month. And that’s just the average.

We talked last month about jobseekers becoming a surplus – this trend is continuing to happen, and that, again, may be a good sign for SMBs looking to hire right now.

What’s going on here?

It’s a bit of a no-brainer. The job market is slowing down a little bit – and consequently, candidates are becoming more available. We’re seeing this happening in our data, and in the data out there.

But what’s important is that the job market isn’t slowing down for everyone – it’s the opposite for enterprise-level companies. It’s worth noting that recessions have a disproportionate impact on smaller companies due to their lack of scalability and relatively inconsistent revenue stream, and that’s reflected in our dataset.

However, in the hiring landscape, we’ve noted that SMBs such as yourselves can take a cautiously optimistic approach to this – this developing climate actually may make it easier for healthy SMBs, in the short-term at least.

Then-CFO of Expedia Eric Hart would agree, telling investors in an August earnings call: “Not that I wish ill on any people out there from a layoff perspective or whatever else, but I think there could be an opportunity for us to ramp some of that hiring over the coming months.”

We also talked last month about how a recession would impact certain sectors, and not all of them at once. But we also talked about why we’re not really seeing a recession coming yet. We’re going to be a bit of a wet blanket and tell you that there may (will?) be a considerable setback in the global economy in 2023 according to many internationally recognized economists (including the head of the World Trade Organization) – and that the US Federal Reserve’s aggressive hikes in the inflation rate may be at the very core of it. Here’s an article outlining what’s going on.

And that’s not just in the US. That’s worldwide. Plan accordingly, including in your hiring.

The Hiring Pulse: Methodology

Because one of the three metrics (Job Openings) is different from the other two metrics (Time to Fill and Candidates per Hire), we’re adopting two very distinct methodologies.

And we chose 2019 as the baseline because, frankly, that’s the last normal year before the pandemic started to present challenges to data analysis among other things.

The majority of the data is sourced from businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

The post Your Hiring Pulse report for October 2022 appeared first on Recruiting Resources: How to Recruit and Hire Better.

Your Hiring Pulse report for September 2022

Keith MacKenzie — Tue, 13 Sep 2022 20:44:44 +0000

For this month’s Hiring Pulse, we have more insights for you on all of the above, and in response to numerous queries we’re taking a deep dive into the SMB hiring trends specifically for the UK and Ireland.

Let’s take the plunge!

How we’re looking at data

First, looking at SMB hiring data allows us to see benchmarks in the hiring landscape. But when the benchmark changes regularly during these last two tumultuous years, it’s not the best measuring stick.

So, instead of looking at data YoY or even MoM, we’re looking at rolling trends. What we’re doing in the Hiring Pulse is looking at that month’s percentage increase or decrease compared with the average of the three trailing months. Want a more detailed methodology? Jump to the end and check it out.

As always, we look at the worldwide trends for three common SMB hiring metrics:

Time to Fill (TTF)
Total Job Openings
Candidates per Hire (CPH)

Let’s start analyzing!

Main highlights

The three main highlights for this month’s Hiring Pulse are:

TTF has significantly dropped in August – unlike in previous Augusts
Job openings are normalizing more “normally” than either Candidates Per Hire or TTF
Recession worries are still very real – but jobs themselves may not be hit as hard as feared

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important to understand that definition: jobs that are still open as of the end of August are not included in this graph as they don’t yet have an “end date”. Only the jobs that are filled are included here.

Got that? Good. Let’s have a look at TTF based on jobs that have been filled from the start of 2020 through to the end of August 2022:

One thing that stands out: Time to Fill dropped dramatically in August, with a -3.4% change from the average of the previous three months. Last year, August’s TTF trend was nearly the opposite: 5.1%.

What accounts for this? In the northern hemisphere, where most of this dataset lives, it’s summertime – which means a slowdown in overall business and consequently a slowdown in hiring. And a slowdown in jobseeking as well, of course. Fewer candidates makes it harder to find candidates, and there are fewer people working in hiring teams throughout. Put all that together, and that explains the uptick in TTF – in other words, longer TTF – in August 2021.

This especially should be the case in 2022 with the world opening up again (to a degree), and many workers catching up on their pent-up vacation time. But, instead, TTF dropped in August. TTF is shorter this time around than in previous months.

Why?

Perhaps, the seemingly non-stop predictions of a recession made for a business slowdown, which coupled with the normal downturn in processes during the traditional vacation months, led to less work for a company’s active employees for these few months. This frees up bandwidth for employees to focus on some other important things at work.

Then, more time is spent on sourcing, attracting, and evaluating candidates – which speeds the process along.

And of course, when people quit en masse – as we’re still seeing in the US at the very least – there’s a tinge of desperation as employers rush to fill ongoing gaps in their workforce.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

So, let’s look at the raw job open numbers – which aren’t contingent on job opened/filled dates like TTF and Candidates per Hire. These are just jobs opened in a given month – in other words, a single event – and are a great indicator of the health of the economy.

This one’s interesting. We’ve been writing a fair bit in previous Hiring Pulses about this thing called a recession and how that may impact our hiring metrics. We pointed to how July saw a change of -6% (now adjusted to -5.5% with data updates) in job openings compared with the three previous months’ average – and that this is unusual considering that previous Julys all saw a relatively opposite trend.

For example, as we showed last month, the job open trend for past Julys is as follows:

July 2019: 7.2%
July 2020: 49.5% (major caveat here, it being 2020)
July 2021: 5.7%

And now, August’s job opening trend has sped up just a wee bit to -2.2%. It’s not something to scream at the rooftops about, but when we compare to previous Augusts:

August 2019: 5%
August 2020: 23% (again, remember, this is 2020)
August 2021: 1.5%

Yes, all three previous Augusts were positive trends while this August is negative – however, the change isn’t nearly as significant.

The difference between July 2021’s 5.7% and July 2022’s -5.5% is 11.2 total percentage points, while for August last year and this year, it’s just 3.7 percentage points.

Last month, we said, and we quote:

“Do we want to be nervous? Should we be nervous? Well… recessions are normal. They do happen. And businesses will respond to that with more conservative projections and austere practices. Let’s watch this space and see what August brings us.”

Well, now that we can see what August brings us, maybe there’s cause to be not as nervous as previously.

Still… the doomsayers in us like to persist. Recessions don’t just happen in a month and go away. It’s a long game and businesses need to be mindful of that.

3. Candidates per Hire

Now, this is interesting. After all that fluctuation that we pointed out in the August Hiring Pulse, we now see a considerable spike in the Candidates Per Hire trend of 13.3% for the month of August.

If you overlook the “recovery” of hiring metrics in the wake of March 2020 – basically, when the big COVID truck hit many of us – this 13.3% marks the biggest positive trend in our data for any month in 2019, 2020, 2021 and 2022 to date.

Surely, this must be somewhat normal for this time of year, you suggest.

News flash: no, it actually isn’t, not according to the data.

Check out what the CPH trend for June, July, and August looks like over the past four years:

Last month, we saw how the data for the three previous months of May, June and July made it pretty clear that 2022 was in a state of relative normalization, with the trend somewhat comparable to the last year before COVID – that being 2019.

But now, this isn’t the case at all. There are more candidates per job in August than previous. And the last time we saw such a monumental spike in the CPH trend was in the exceptional months after March 2020.

While we’ll write off those early COVID months as anomalous, it’s worth mentioning that those months were also months of desperation; there were many candidates out there in the wake of mass layoffs, and they were scrambling to find new work.

This time isn’t so different. Under the lingering shadow of a “maybe” recession, layoffs also surged. Couple that with just-quit workers from the Great Resignation feeling nervous about the road ahead and thinking it might be smart to get back into full-time work before the well runs dry, and we have a situation where jobseekers are no longer at a premium but now potentially becoming a surplus.

Deep dive – UK & Ireland

In the last few months, we’ve received a few inquiries: “All this Hiring Pulse stuff is great and stuff, but do you have any data specifically for those of us in the UK?” Well, we heard you and we’re taking action right now.

So, in this month’s Deep Dive, we look at these three hiring metrics specifically for the UK and Ireland (UK&I).

While we know that you’re interested specifically in UK&I metrics – it helps to see how that looks against the overall data. So, we’re adding an extra line for the overall data in each of the three charts.

Let’s dive in:

1. Time to Fill – UK&I

Let’s first look at the Time to Fill trend:

When we look at the Time to Fill trendline for UK&I, it runs along a similar trajectory as the world trendline – unsurprising, to be fair, considering that the UK is home to the world’s fifth-biggest GDP (the U.S., China, Japan, and Germany being one through four) and thus, wherever the world’s economy rolls, the UK shall roll with it.

Ireland’s own economy is smaller as a whole, of course, but its GDP per capita is more than twice as much as that of the UK, and the fifth largest worldwide – so it has a presence in this data as well.

Now, if you really want to get geeky when comparing the area-specific data against the whole, let us help by pointing out two major areas where the trends differ: March through October 2020 and, yes, the last three months.

First, for UK&I’s data, we see considerable fluctuation for March through October of 2020 with a 4% uptick in April 2020 compared with a relative flatline of 0.01% for the overall CPH trend. Then, UK&I plummets considerably more so than the overall, falling to -9%, -14.7%, and -18.6% in TTF for May, June, and July 2020 compared with -6.2%, -8%, and -9.7% overall.

But then, UK&I recovers just as dramatically, rising to 3.2% and 5% for August and September 2020 with a minor -1.4% hiccup for October before falling back in line with the overall TTF metric, which saw steady recovery of -3.5%, -1% and 4.7% for those three months.

The difference in the last three months isn’t nearly so dramatic, but still worth noting because it’s just happening now: the divergence starts happening again in June 2022 with a -2.6% drop in the trend for UK&I compared with 1.5% overall.

Then, for July, we see a 3.3% uptick for UK&I compared with 0.4% overall, followed by August’s -0.7% for UK&I and -3.4% overall.

2. Total Job Openings – UK&I

Now, let’s look at job openings themselves:

For the most part, the trend for both the UK&I segment and the overall data more or less follow the same path upwards and downwards every month – but the fluctuation of the last couple of months is eye-catching.

June saw a -15.5% change in job openings in the UK and Ireland, compared with -9.6% worldwide, followed by 3.4% versus -5.5% for July, and finally, -9.5% for UK&I in August compared with -2.2% overall. Job openings are down quite a bit in UK&I compared with the rest of the world.

Pretty big differences, honestly. Does it mean anything? Not necessarily if it’s just happening for a few months as fluctuations do occur, but it’s worth watching.

3. Candidates per Hire – UK&I

Now, let’s look at the Candidates per Hire trend for the UK and Ireland:

One thing that the UK has been dealing with on top of COVID-19 is, of course, Brexit. As it happens, Brexit became official to a degree on January 31, 2020. At that time, the virus was certainly on the horizon but hadn’t hit the UK’s shores yet.

But now, the double whammy of the pandemic’s onset with the reduced options for working abroad for many Britons after Brexit is readily visible here, with the CPH metric spiking massively in Q2 of 2020 – the most obvious one being the stunning 54.5% jump in the trend for June 2020 compared with just 14.6% overall.

We don’t intend to ignore Ireland’s numbers – but in this case, with the UK’s much larger population, it’s almost certainly Brexit that contributed to this discrepancy.

Workable’s CEO, Nikos Moraitakis, told us in an email in the early days of the pandemic that books would be written about this time for years going forward. In that spirit, there will be – and already are – books written about the UK’s own unique economic experience in 2020.

What’s going on here?

Let’s wrap this up with a quick overview of the UK job market and then the US job market. First, according to latest data from the UK’s Office for National Statistics (ONS), July is showing full recovery and then some for payrolled employees, with an all-time high of 29.7 million employees making some level of income.

Now, the US Department of Labor reported last week that there was a gain of 315,000 jobs in US payrolls to an all-time high of 152.7 million employees – just a touch higher than the pre-pandemic high seen in February 2020.

Does this mean full recovery to pre-pandemic levels? Well, yes, kind of. And does this mean no worries about recessions?

No, absolutely not.

Sorry to break your balloon, but the worries of a recession are still very real. A good portion of those worries revolve around the housing market, with Goldman Sachs predicting a considerable crash in real estate to the end of 2022 and more so in 2023, bigger than Russia’s overall GDP crash since their invasion of Ukraine.

Likewise, analyst Ivy Zelman, otherwise known as “Poison Ivy” after predicting the 2008 market crash, is predicting another drop in housing over the next couple of years. We all know what that meant in 2008 and 2009 – a tidal wave leading to catastrophe in other economies.

But Liz Ann Sonders, chief investment strategist at Charles Schwab, had this to say about the surge in jobs and the worries around recession:

“This is a unique period of time, where we have, still, a relatively tight labor market, where there is still job growth, but companies have started to announce hiring freezes, some companies have announced layoffs,” she said.

“This could very likely be a recession where you don’t see the kind of carnage in the labor market that you see in most recessions.”

At no other time has there been such a surplus of jobs (two job openings for every one active candidate, according to DOL data). Couple that with inflation and higher salaries, and candidates have a very powerful deck to play with.

So, the job market remains active. Many employers are desperate to hire, and this trend may not quieten down anytime soon, even with layoffs and recessions. If there’s a downturn, it’s going to happen in economic pockets – not across the whole spectrum.

The Hiring Pulse: Methodology

To bring the best insights to small and medium businesses worldwide, here’s what we’re doing with our data: when looking at a specific month’s trend, we’re taking the numbers from that month and comparing it to the average of the three previous months – and showing as a percentage how that month looks in comparison.

For example, if July shows an average Time to Fill of 30 days for all jobs, and the monthly average for the three preceding months (April, May, June) is 25 days, we present the result for July as a 20% increase.

The majority of the data is sourced from small and medium businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

The post Your Hiring Pulse report for September 2022 appeared first on Recruiting Resources: How to Recruit and Hire Better.

Your Hiring Pulse report for August 2022

Keith MacKenzie — Tue, 09 Aug 2022 17:12:49 +0000

And here’s a sneak preview: it appears that things are actually normalizing to 2019 levels. And we’ll dig deeply into that in this month’s report, albeit with some lingering weirdness – if we go with the theme of “long COVID”, this whole thing could be termed “long disruption”.

But first, we want to tell you something important: we’re making a slight alteration in the way we look at data, specifically for the Time to Fill (TTF) and Candidates Per Hire (CPH) metrics. In past Hiring Pulses, we had measured trends based on jobs being opened.

For example, previously, if a job is opened in June, we would include that job’s data in TTF and CPH – meaning, the more recent jobs opened would naturally skew the data downwards in the latest months of the dataset because they haven’t had the time to build to normal TTF and CPH levels.

So, at Workable, we talked about this internally as a team, and decided on an adjustment – we would start looking at jobs based on the date the job was filled. So again, for example, if a job is filled in June, we would include that job’s data in TTF and CPH.

But since there’s an end date to all those jobs, we don’t have to worry about job data being skewed in recent months.

To be transparent, there’s a small catch that we do want to share – the dataset for jobs filled will be smaller than the dataset for jobs currently open, especially in more recent months. But there’s still a lot in this dataset to draw compelling conclusions from.

You saw a preview of this in the deep dive of last month’s Hiring Pulse. And this month is fully focused on jobs based on their hire date.

Let’s take the plunge!

How we’re looking at data

First, looking at SMB hiring data gives us an opportunity to look at benchmarks in the hiring landscape. But when the benchmark changes at unprecedented levels during these last two very weird years, it becomes an unreliable gauge.

So, it’s no longer helpful to look at the data YoY or even MoM. It makes more sense to look at rolling trends. Consequently, for the Hiring Pulse, we are looking at percentage increase or decrease compared with the average of the three trailing months. Want a more detailed methodology? Jump to the end and check it out.

As always, we look at the worldwide trends for three common SMB hiring metrics:

Time to Fill (TTF)
Total Job Openings
Candidates per Hire (CPH)

Let’s start analyzing!

Main highlights

The three main highlights for this month’s Hiring Pulse are:

We’re returning to before times – in other words, we seem to be stabilizing
The job opening trend continues to trend downwards
A surprisingly robust job market for July

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important to understand that definition: jobs that remain open are not included in this graph as they don’t yet have an “end date”. Only the jobs that are filled will be included here.

Got that? Good. Let’s have a look at TTF based on jobs that have been filled from the start of 2020 through to the end of July 2022:

We’ll just keep beating the dead horse here: the last two and a half years are unprecedented times for society. That’s reflected in the wild ups and downs throughout, starting with the incredible drop in the TTF trend right when COVID hit. That’s a sign of SaaS companies rushing to hire en masse as they capitalized on the digital transformation boom early on.

But, when we look at the TTF trend in the early part of these last two years (i.e. February/March/April), TTF drops noticeably (-3.9%, -8.1%, -3.6% in 2021 and -3.4%, -3.1%, -3.9% this year).

This, after particularly positive trends in January 2021 (8.5%) and January 2022 (8%).

Rough conclusion from all this? Because we’re now looking at job data based on the date the job was filled, a job filled in January will have likely been opened a couple of months earlier. There’s a lot of activity involving numerous members of the hiring team – the recruiter themselves, maybe another HR representative, a departmental team member, an executive, and of course, the hiring manager.

And December is holiday time for many – which means delays in business processes including in recruitment. All of those job openings get pushed back to January the following year when everyone is back in the grind – therefore prolonging TTF. Mid-November to mid-January is roughly 60 days – much higher than the average TTF of 42, according to Industry Today (industrial/segmential fluctuations aside).

Another observation: the six most recent months (February through July) suggest a much more stable TTF trend than we’ve seen since the start of 2020. The times they are a-normalizing? We shall see.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

So, let’s look at the raw job open numbers – which aren’t contingent on job opened/filled dates like TTF and Candidates per Hire.

These are just jobs opened in a given month and are a great indicator of the health of the economy. So, we can include July 2022 in this chart:

In July’s Hiring Pulse, we emphasized the anomaly that was the job opening trend for June – last month, it was -10.2% which is slightly updated to -10.1% in this chart. We suggested that economic jitters and business austerity measures were a factor in that drop in job openings compared with previous months.

That’s especially noticeable since June normally shows a positive uptick in job openings based on years past (2020 excluded, of course).

We’d hoped for the sakes of businesses everywhere that June would prove to be an anomaly. Well, July has entered the chat, and again, it’s a negative trend of -6% – slightly up from June, but still attention-grabbing.

Let’s look at what July looked like in previous years:

July 2019: 7.2%
July 2020: 49.5% (Like we said – we exclude 2020 due to the economic and social cataclysms of that year)
July 2021: 5.7%

See there – generally positive trends. Except for this year. Same as what happened for June – where June normally looked robust in terms of job openings, only to see a negative trend in this year’s June.

Do we want to be nervous? Should we be nervous? Well… recessions are normal. They do happen. And businesses will respond to that with more conservative projections and austere practices. Let’s watch this space and see what August brings us.

3. Candidates per Hire

Workable defines the number of candidates per hire (CPH) as, succinctly, the number of applicants for a job up to the point of that job being filled. And now that we’re looking at jobs that are already filled up to the end of July rather than jobs opened, we’ll no longer see a skew downwards in the CPH trend in recent months.

Let’s look at what’s going on here through July:

What stands out with this one is the fluctuating CPH trend through the first seven months of 2022 with three positive-trending (February 0.5%, March 4.1%, and May 7.2%) and four negative-trending months (January -5.2%, April -1.8%, June -1.7%, and July -3.5%).

January is an easy one to explain away – as described in the TTF section, December will be a slower month for hiring, and that’s the same for candidate activity. When January rolls around, hiring teams will not have the same luxury of candidates to choose from, but because they really need to fill that job, they’ll just hire one and roll with it.

What about the negative trends seen in June (-1.7%) and July (-3.5%) of this year? We can add some perspective on those by looking back at May (7.2%). Pretty big drop from there forward.

Now, let’s look at what happened over the same period in the three years prior, with 2022 included for comparative purposes:

As stated above, 2020 is an anomalous year, with the spike in CPH very much attributable to the numerous jobs lost in the early part of that year after COVID set on the land.

But then, 2021 shows a huge drop in the CPH trend for May, and slowly rises for June and July.

Now let’s look back to pre-pandemic times: 2019 shows a positive May trend followed by a drop in CPH for June and July – and that’s the most comparable statistic to what happened this year. Is it worth noting that 2019 might be the most recent “normal” year for society and business overall? The lines for 2019 and 2022 in the chart above are visually similar.

Perhaps it is. And if that’s the case, then the fluctuations in the CPH trend for the last three months this year can be considered relatively normal if we’re comparing to 2019.

There’s a lot more data science to be conducted here, of course – but it’s worth thinking about as we move deeper into Q3.

What’s going on here?

Well, guess what? Despite widespread predictions to the contrary, the US job market is sizzling red hot. July saw 528,000 new jobs added – more than twice the forecasts of Wall Street. It’s worth looking at real job changes month-over-month in the chart below:

(If you’re wondering, April 2020 saw a negative change of 20.5 million jobs. Such a huge change that if we adjusted the chart to show it, the changes month over month in the rest of the chart would be not be nearly as discernible. So… we let it fall off the chart to where it belongs.)

In the US, we’re also seeing the highest-ever total employees ever, with a total of 152.54 million working in the country right now. Second-highest total in a given month? February 2020, at 152.5 million total employed. Third highest? January 2020, at 152.13 million.

Fourth highest all time? Um, it’s June 2022, at 152.01 million.

See what we wrote up there about things looking like 2019 and that 2019 was the last “normal” year? Plus, unemployment in the United States dropped to 3.5% – matching a 50-year low that was set just before the pandemic.

We’ll let Charles Schwab’s chief investment strategist Liz Ann Sonders take this one:

“There’s no way to take the other side of this. There’s not a lot of, ‘Yeah, but,’ other than it’s not positive from a market or Fed perspective,” she said. “For the economy, this is good news.”

But – sorry, Ms. Sonders, but we still like buts – 57.7% of the job gains for July are concentrated in four sectors: leisure & hospitality, professional & business services, health care, and government. What’s more – leisure & hospitality is still 1.2 million workers short of pre-pandemic levels.

As we know from experience (looking at you: dot-com bubble, 9/11, subprime mortgage crisis, and most recently 2020) – a good economy always has a half life. We’ve been predicting something bad in the future for a few months now – but the markets indicate otherwise. So far.

Ultimately, it’s good to be prudent. Have a contingency plan in place for whatever potential scenario may play out. After all, highs in total jobs were set just before the great COVID fall, and those highs are now being surpassed in the last two months. What goes up must come down? Maybe, maybe not.

We’ve quoted a former Workable executive in a past Hiring Pulse:

“First of all, make sure that you’ve got a number of contingency plans in place. Work out a lot of different scenarios which you are ready to deploy as the situation evolves. Secondly, don’t lose track of the more short-term or tactical objectives. Essentially, make sure that you also have a weekly plan on how you want to manage this.”

We’ll paraphrase with this: it’s always smart to be smart when managing a business, including in hiring.

The Hiring Pulse: Methodology

The majority of the data is sourced from small and medium businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

The post Your Hiring Pulse report for August 2022 appeared first on Recruiting Resources: How to Recruit and Hire Better.

Your Hiring Pulse report for July 2022

Keith MacKenzie — Tue, 12 Jul 2022 13:36:07 +0000

Recession jitters and interest rate hikes are factors in decisions around payroll, of course, but what’s also happened is that June marks the end of the first half of the calendar year, and companies are recalibrating and implementing plans ahead of the second half according to Crunchbase.

Also worth noting is that layoffs and discharges according to U.S. Department of Labor data is not spiking across the spectrum – in fact, it’s remained at a stable pace month over month:

Plus, when you compare layoffs and discharges with previous years – and yes, “before times” – in the United States, you’ll find that the number is actually lower than the norm. Of course we’re still in highly unusual times. That crazy spike in March/April 2020 led to a pendulum swing in the opposite direction with a high number of hires soon afterwards.

And now, while layoffs are indeed happening in startups, those more established SMBs may have already optimized their worker base enough from the 2020 tempest that sudden changes aren’t as necessarily required two years later.

Meanwhile, the Great Resignation continues, especially in the United States, which has just seen its 12th consecutive month of upwards of four million job quits. Many of those quits have traditionally been at lower-level positions, but we’re now seeing the trend starting to happen at the managerial and directorial levels.

Anyway, let’s set layoffs and Big Quits aside for a moment and look at other potential fallouts from the gloomy projections of a recession ahead. Here’s this month’s Hiring Pulse, with a special and different look at SMB hiring trends in our deep dive.

How we’re looking at data

As always, we look at the worldwide trends for three common SMB hiring metrics:

Time to Fill (TTF)
Total Job Openings
Candidates per Hire (CPH)

Let’s start analyzing!

Main highlights

The three main highlights for this month’s Hiring Pulse are:

New job postings are down
Jobs being filled are also down – way down
Candidates per hire is going up for jobs filled in May and June

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important to understand that definition: if a job is opened in January this year or even as early as August last year, but isn’t filled until June 2022, it won’t count in this graph. If another job is opened on the same day last January or August but is filled on May 31, it does count in this graph.

So, we’re looking at the TTF trends only up to the end of May. Got that? Good. Let’s have a look:

Rather than simply call out the sharp drop in TTF in the most recent months, let’s do what we’ve done in previous months – compare this graph to the one in May, and to the one in April, and so on. In this graph, we see five consecutive months of significantly shorter TTF metrics, down to -18.2% in April and -25.3% in May.

In June’s Hiring Pulse, we saw only four consecutive months of significantly shorter TTFs – ending in -18.5% in March and -26% in April.

In May’s Hiring Pulse, it was – wait for it – just three (four, if you really want to count the miniscule -0.8% change at the start of the drop), ending with -19.2% and -27.4% in the two latest months.

Ditto for April’s Hiring Pulse, ending with -22.8% and -29.2%.

What does this tell us? Even with the clear variable of this data being measured forward from the time a job is opened, TTF is still dropping. If you want to see what the data looks like for jobs filled and going backwards from there instead, we now have that data and we’re going into it in the deep dive below.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

So, let’s look at the raw job open numbers – which aren’t contingent on job open/close dates like TTF and Candidates per Hire.

These are just jobs opened in a given month. So, we can include June 2022 in this chart:

You know that old trope where a news editor comes running into the room and says, “Stop the printing press! Rip out the front page! We’ve got a story here!”

Well, we may have a story here in that strikingly negative -10.2% drop in the job opening trend for June.

To add context: a drop in new job openings is pretty normal – for the end of the year:

-9.5% and -23.5% in Nov-Dec 2019
-3.0% and -8.3% in Nov-Dec 2020
-0.3% and -11.9% in Nov-Dec 2021

And of course, there’s the COVID-quake that hit us in the spring of 2020 where the job opening trend was a staggering -22.9% in March, an incomprehensible -51.6% in April, and -23.2% in May of 2020.

But this is June. It bears noting that we don’t see this kind of data in previous Junes:

-8.1% in June 2019 (this being the only one closest to June 2022)
20.3% in June 2020 (an anomaly in the opposite direction, since businesses were very much rebounding from the COVID-quake)
6.8% in June 2021 (not much of a change from May 2021’s 6.9% or to July 2021’s 5.7%)

We’ve talked about fragile economic nerves and end-of-Q2 planning – maybe that’s what’s happening here as well. While layoffs and terminations aren’t hugely different from previous months, companies are definitely opening fewer jobs.

That’s interesting considering that the job quit numbers in the US remain at ruthlessly high levels. Normally, when someone leaves, that position will be backfilled. But maybe companies are seeing turnover as a blessing in disguise – rather than backfill, they see this as an opportunity to wait and see what the waters look like ahead without needing to resort to layoffs. Convenient business austerity at work, perhaps?

3. Candidates per Hire

Workable defines the number of candidates per hire (CPH) as, succinctly, the number of applicants for a job up to the point of that job being filled.

Let’s look at what’s going on here through May:

(NOTE: Again, as in the TTF chart, you’re probably wondering why we stopped the numbers in May. Again, as stated above, that’s because these data are based on the time the job was opened, not when it was filled. Moreover, even jobs that remain unfilled are included here.)

Again, interesting numbers here in this SMB hiring trend. In last month’s Pulse, we noted that the average candidates per hire for April, the most recent month of data last month, was -4.4% less than the monthly average in Q1.

This time, the most recent month of data, May, shows a much more dramatic -14.4% change from the previous three-month average. And April has changed from -4.4% in last month’s Pulse to 1.9% in this month’s report.

A clear takeaway from this is that applications to jobs opened in April grew significantly throughout June. With fewer jobs being posted in June, this suggests that there’s a spillover to older but unfilled job postings for today’s candidates.

In other words – the list of recent jobs is shorter now, so in scrolling through jobs in reverse chronological order, candidates will encounter those older job postings more frequently than in the past, driving up CPH for those earlier postings.

Maybe there’s an opportunity for SMB employers who are still trying to fill those older jobs: take a look at them, tinker with them so they’re more relevant to today, and resurface them so they’re at the top of the pile once again. Don’t make the candidate have to look backwards to find you. Be the first company they see at the top of the pile.

Deep dive – jobs filled data

The challenge with dissecting these data points is that the dataset involves all jobs that have been opened – not just the ones that have been filled.

Plus, we include jobs opened in May in this dataset – even with the luxury of one full month of extra data after that. Consider that the Time to Fill and Candidates per Hire will be much lower for a job opened just before midnight on May 31 than it would be for a job opened in March. This can create a weird variation in the data because all this falls into the same dataset regardless.

So, as we’ve mentioned umpteen times, the drop in CPH and TTF in recent months makes sense to a degree. We’ve attempted to circumnavigate that by comparing the most recent months between different reports which does lead to interesting insights.

One major reason we’ve done it this way up to now is because we get to analyze a much larger dataset – giving us the opportunity to segment the data based on industry, function, and location.

But you know what? We now have data based solely on jobs that have been filled. This gives us an opportunity to look at SMB hiring trends right up to the end of June. Let’s dive in!

1. Time to Fill

Let’s first look at the Time to Fill trend for jobs based on the date when they were filled:

What’s especially intriguing is that the TTF trend for jobs filled in January 2022 is a significantly higher 7.5% jump from the monthly average of Q4 2021. For “all” jobs whether filled or not, it’s -8%.

Other than that, the TTF trend still drops quite a bit in the months after that – coming up for air in May at 1.1% and June also at 1.1%. We’d like to sit and watch what the trend looks like for this going forward with stabilizing TTF in the two recent months – yes, that means this isn’t going to be the only time we look at jobs based on the fill date.

2. Total Job Fills

Now, let’s look at jobs themselves. This one’s a bit different from the Job Opening trend, because we’re now looking at the trend of jobs being filled in a given month:

Good news or bad news first? Let’s start with the good: Q1 2022 saw a lot of activity in job openings, with 17% in January, 14.2% in February, and 20.4% in March. For jobs filled, the trend is -1.1%, 8.9% and an eye-catching 30.8% for the same three months.

Since a job won’t usually be filled for some time after it’s opened, it makes sense that a higher trend of job openings in January and February would mean a spike in jobs filled for March. And that’s clear here.

Now, the bad: we pointed out the -10.2% for June in the Job Opening trend above – for data based on jobs filled, we see a more moderate -4.4% change in June compared with the trailing three-month average. While that doesn’t necessarily call for alarm, it’s something we should keep an eye on, because for the last two Junes, there’s a positive shift in jobs being filled:

17.7% for June 2020 (take that with a grain of salt – it was -12.4%, -55% and -36.9% for March, April and May 2020 respectively)
11.7% for June 2021 (very significant considering consistently positive trends of 17.2%, 52.5%, 22.2%, and 9.5% for February through May 2021 respectively)

Yet, this June sees a drop, on the heels of an insignificantly positive 0.2% trend for April and 3.2% for May this year. While we can explain away some of this as entrails of these crazy times, we still need to watch this space.

3. Candidates per Hire

Now, let’s look at the Candidates per Hire trend for jobs that are filled in a given month:

The CPH trend in the dataset based on the job-open date shows relatively steady decline in recent months – again, as in the TTF data, it’s because more recent job postings will not have had the time to collect candidates as older job postings.

But this time, we now get to see what the CPH landscape looks like for jobs that are already filled in a given month – and the difference is that jobs filled in May have collected more candidates than previous months, at 6.7% higher than the February-March-April average. But it goes back underwater with a 0.9% shift in June. Still, this is after negative trends in most months dating back to the start of 2021.

So, while the numbers look a little different here, it’s still true that employers hadn’t been seeing as many candidates per job as they had in the past – but the upturn in CPH for jobs filled in May combined with with the evidently unseasonable drop in jobs being filled in June is something to take note of.

What’s going on here?

Honestly, the changes in the most recent months all point to recession jitters. Companies see what’s going on in the market – the plummet of the stock market, the hike of the interest rate, the rise of inflation, etc. – and they will naturally turn to contingency measures to stay afloat and keep their bottom line out of the red zone.

We’re seeing this in the lower number of jobs being posted. This, in spite of the ongoing Great Resignation (which amounts to more than 51 million job quits in the United States over the last 12 months). You’d think more quits would equal more jobs posted as a result of backfills – but that’s not happening in recent months.

And on the candidate side, the throngs of people who have left their jobs for other pastures may be seeing the recession on the horizon and realizing that it may be a smart idea to lock in a more secure job and ride out the storm before pursuing their passion project any further. No, we haven’t grounded this in science – it’s just one potential explanation for the rise in candidates per hire along with more concentrated candidate pools across fewer job openings.

But, then, we have a new report from the US Department of Labor showing once-again strong job gains for June to the tune of 372,000 payroll additions, and those additions at higher wages to boot.

According to Reuters, Indeed economist Nick Bunker said: “If you’re looking at this report for signs we’re already in a recession, you’re likely to come up blank.”

These SMB hiring trends are not numerical soothsayers – they are merely indicators of what the road ahead may look like: first, fewer jobs are being posted; second, more candidates are applying for jobs; and third, there’s a huge drop in jobs being filled in June.

Like the holiday season, the summer months (for those in the northern hemisphere, at least) can be a relatively slow time for hiring. June is potentially just the start of that. Let’s see next month whether these changes are due to recession jitters, seasonal hiring habits, or a mixture of both (or neither).

The Hiring Pulse: Methodology

The majority of the data is sourced from small and medium businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

The post Your Hiring Pulse report for July 2022 appeared first on Recruiting Resources: How to Recruit and Hire Better.

Your Hiring Pulse report for June 2022

Keith MacKenzie — Tue, 14 Jun 2022 23:06:32 +0000

Noted economist Robert Shiller said as much, in an interview with Bloomberg. A recession is coming, and in his words, it’s a “self-fulfilling prophecy” – because all the talk of a recession is motivating decision-makers to make decisions in anticipation of a recession… and therefore, triggering a recession.

Those decisions include layoffs, of course – the go-to formula for many SMBs who are looking to weather a prospective storm. Y’know, just in case. And the startup tech sector is especially getting hit hard, with more layoffs in Q2 of this year than any other quarter over the last two years since, of course, early 2020:

So, let’s keep that in mind as we dive into this month’s Hiring Pulse, which includes a special look at the hiring data for tech companies.

How we’re looking at data

First, looking at SMB hiring data gives us an opportunity to look at benchmarks in the hiring landscape. But when the benchmark regularly changes during these last two very weird years, it becomes an unreliable gauge.

As always, we look at the worldwide trends for three common SMB hiring metrics:

Time to Fill (TTF)
Total Job Openings
Candidates per Hire (CPH)

Let’s start analyzing!

Main highlights

The three main highlights for this month’s Hiring Pulse are:

The Time to Fill metric is largely the same as in previous Pulses – but the other two metrics are seeing a disruption
Job Openings are seeing a negative trend unlike what we’ve seen at this time in previous years
The tech hiring landscape has a life of its own

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important to understand that definition: if a job is opened in October or even as early as April last year, but isn’t filled until May, it won’t count in this graph. If another job is opened on the same day in July or September but is filled on April 30, it does count in this graph.

So, we’re looking at the TTF trends only up to the end of April. Got that? Good. Let’s have a look:

We’d normally go into the usual long-winded spiel about what this chart tells us about SMB hiring up to April 2022 – but honestly, not much has changed or is different from last month. The big drop in the TTF metric begins four months earlier in January – the same trend is shown in our May 2022 report, where the drop begins four months earlier in December.

You might also see here that January’s drop is -12.3% lower than the average of Q4 2021, whereas last month, December showed a much-less dramatic -0.8% drop from the average of the three previous months. Well – we also pointed out the same thing last month. So… again, the point is null. Let’s move on.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.
So, let’s look at the raw job open numbers – which aren’t contingent on job open/close dates like TTF and Candidates per Hire, so we can include May 2022 in this chart:

The sharp drop from March (20.4%) to April (-0.8%) was noted and expected last month – and there’s also a marginal drop from April (-0.8%) to May (-2.2%).

That’s to be expected, based on last year’s trendline from Q1 to Q2 – but what’s interesting is that this time, the last two months are negative trends. It’s worth noting that over the last three years of Workable’s data, back-to-back negative months only happened in November and December – and of course, in the cataclysmic spring of 2020 which we see as a significant anomaly in hiring trends.

Is this continued negative trend a sign of an oncoming recession? It’s very, very possible.

What Mr. Shiller suggested above about companies becoming more austere in their practices is reflected here – after a seasonally normal Q1 of job opening activity, we’re seeing a relatively stark shift in the opposite direction.

3. Candidates per Hire

Workable defines the number of candidates per hire (CPH) as, succinctly, the number of applicants for a job up to the point of that job being filled.

Let’s look at what’s going on here through April:

(NOTE: Again, as in the TTF chart, you’re probably wondering why we stopped the numbers in April. Again, as stated above, that’s because these data are based on the time the job was opened, not when it was filled.)

Last month, we pointed out how the CPH metric stabilized over the first three months of 2022: -10.1% in January, -8% in February, and -13.9% in March.

That Q1 stabilization holds relatively steady this month, but now we see something: an uptick from the January/February/March average to -4.4 in April.

Nonetheless, that still signals a continued downturn in CPH, even as job posting activity slows down. As we mentioned last month, you’d rightfully deduce that fewer jobs = more candidates per job, but that’s not happening here.

Deep dive – tech hiring trends

Now, let’s dive deeper into one area that’s seeing considerable disruption in recent months – the SaaS sector. If you’re a tech SMB or tech startup, these data trends will be of interest to you.

First, a quick reminder of the layoffs mentioned in the intro. From the same website, we see this chart, this time showing layoffs month by month:

May saw a huge amount of layoffs in startups – and as of the halfway mark of June, we’re already more than halfway to May’s total layoff events.

So, is this unique to tech? Let’s see for ourselves, by comparing the tech sector’s hiring trends with the overall hiring trends in the same charts.

Time to Fill in Tech

First, let’s look at the TTF trend in tech and see if it’s any different from the overall TTF trend.

From afar, the trendlines look very similar. The huge spikes at the start of the pandemic and again going into Q4 of 2020 followed by relative normalcy throughout 2021 – this looks roughly similar for both SaaS and the overall landscape, with some relatively minor variations of course.

But then, as we venture into the last quarter of 2021, we see some noted differences. For instance, October’s TTF trend in tech and software is -4.6%, whereas the overall trend is a very different +1.8% – a point differential of -6.4.

Now, let’s look at the other two metrics.

Total Job Openings in Tech

Now, job openings (JOs) in the SaaS world:

Again, from far away, the trendlines look similar. But zoom in, and you notice some differences, for example:

The JO trend in tech doesn’t drop nearly as drastically in April 2020 (a difference of +6.7 percentage points), and doesn’t rise nearly as drastically over the next few months after that (percentage point differences of +0.5, -3.3, –4.1, and –7.7 for May-August respectively);
The JO trend in tech rose higher than the overall from October 2020 to January 2021 (point differences of +6.4, +6.5, +4.6 and +5.2 respectively);
With the exception of December 2021, the JO trend again rose higher than the overall from October 2021 to January 2022 (+4.3 points in October, +5.5 in November, -2.6 in December, and +4.6 in February;
And finally, the tech JO trend is much lower than the overall trend for February (-6.5) and April (-6.8) of this year.

Candidates per Hire in Tech

And finally, candidates per hire:

The differences between the trend in tech and overall stand out much more here. What stands out for 2020 is how CPH in tech is much higher than the overall average for May (a positive difference of +10.5 points) and June (+12.1 points), but then swings sharply in the opposite direction for July (-7.2 points), August (-5.4), and September (-8.5).

We also see a 17-point positive differential for April 2021 in favor of SaaSers, and another positive differential in February 2022 (+12.5). But then, February 2022 is followed by an almost identical pendulum swing to -12.6 points – a total shift in the tech vs. overall CPH trend of 25.1 percentage points in just two months. That’s huge and it signals something very unique happening in the software space.

Conclusion

ComputerWorld’s very in-depth analysis of the American IT job market bluntly calls out the significant growth in IT jobs in the calendar year 2021 – in fact, more than twice as high as any previous year.

A quick conclusion might be that this is job recovery from 2020, but even then, the cumulative IT job loss in the US for 2020 was just 33K – a small percentage of the 104K tech jobs added in 2018 and 90K jobs added in 2019, and of course, the 213K jobs added in 2021.

The increased digital transformation of the worldwide economy – be it in supply chain, finance, and even the cannabis trade – over the last two years since the pandemic required us to go online more often in every aspect of our lives. So that brings a lot of demand for tech – hence, more jobs for tech workers.

It follows that the tech sector is a volatile beast very much subject to boom-bust cycles – we’ve seen this dating back to the dot-com frenzy of the late 1990s. While tech is part of the overall economy, it also runs on the lifeblood of its own unique subset of the economy.

And now, tech layoffs are all over the news. It may be the first signs of an oncoming recession, with tech, being one of the most agile sectors, leading the charge in terms of austerical adjustments. If you’re one of the companies planning layoffs, you’ll probably need to think about how to go about it tactfully and without irreversibly causing damage to your reputation as an employer.

A sign of things to come? Let’s keep an eye on the upcoming Hiring Pulses and find out.

The Hiring Pulse: Methodology

The majority of the data is sourced from small and medium businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

The post Your Hiring Pulse report for June 2022 appeared first on Recruiting Resources: How to Recruit and Hire Better.

Your Hiring Pulse report for March 2024

Keith MacKenzie — Mon, 11 Mar 2024 15:45:19 +0000

In February’s Hiring Pulse, we shed light on how the year started.

Now we’ll look at how the year’s going.

Let’s take a look!

How we’re looking at data

Want a more detailed methodology? Jump to the end and check it out.

As always, we look at the worldwide trends for three common SMB hiring metrics:

Time to Fill (TTF)
Total Job Openings (JO)
Candidates per Hire (CPH)

Let’s start analyzing!

Main highlights

The three main highlights for this month’s Hiring Pulse are:

TTF falls again in February after a January spike – all very normal
JO activity pretty stable – but varies when you look at company size
CPH coming back down, but that’s unusual when looking at Februaries past

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important to understand that definition: jobs that are still open as of the end of January are not included in this graph as they don’t yet have an “end date”. Only the jobs that are filled are included here.

Quick clarification, because people are asking: the data in this chart shows the trendline against the 2019 average as an index of 100, not the actual number of days in TTF.

Got that? Good. Let’s have a look at the monthly TTF trend through to the end of February against the average of 2019, based on jobs that have been filled:

One month after the biggest single-month jump in our data going back to the start of 2019, we see a dramatic drop in the Time to Fill metric from January’s 89.1 to February’s 82.5.

So, there’s a nice little spike there from December to January to February. We’ve talked about this in the past – how January is a very busy hiring month once hiring teams take action on new budgets to start the year, plus coming back from holidays and catching up on crucial HR work. That will result in slower turnarounds in overall work processes, including in the hiring pipeline.

And when we compare this to years past, it turns out to be very normal. Following a mostly flat November and December into a longer TTF for January, then a slight drop into February. Our data shows it pretty clearly:

Now, let’s have a look at the job openings.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

OK – we have many interesting stories going on here. The first takeaway is, of course, the average number of job postings in February was 8.6 per company regardless of employee size. That’s down just a smidgen from January’s 8.5.

Doesn’t say a whole lot month over month, does it? Aha, but it does, when you compare that with previous January-February shifts since 2019. When we use January’s job posting average as a baseline of 100, we see that every year shows a different story from January to February:

What we see here is that out of the six years, four saw a downward shift from January to February in terms of job activity, and in two of the six years, there was an upward shift. 2019, in particular, showed a dramatic drop of 5.5 percentage points, while 2021 saw a dramatic jump of 3.8 percentage points.

2024, of course, shows the smallest month-over-month change of any of the six years.

Let’s go deeper now, into the company size buckets. First, companies with 1-50 full-time employees:

We’re seeing a somewhat different story compared with all companies. Companies with 50 or fewer employees saw a jump from January to February (104 vs. the baseline, or 6.6 to 6.8 job postings per company on average). Honestly, a .2 change in average can be argued to be mostly negligible, but all the same, it’s there. Still not terribly dramatic, though.

Let’s look at the 51-200 FTE size bucket now:

Like the 1-50 bucket, there isn’t a lot to write home about here. We see a small drop in hiring activity for 2024, in line with the overall trend, and again, it’s in the middle of the pack when compared with past years.

Now – the 200+ FTE size bucket:

OK, now we’re talking. The 200+ FTE companies dropped pretty drastically, from 19.5 job postings per company on average in January to 17.9 in February this year.

Not only is that a drop of more than three jobs every two companies across the board, it’s also the biggest January to February shift of any year going back to 2019 in our dataset.

Keep this in mind as we move to the Candidates Per Hire metric.

3. Candidates per Hire

Workable defines the number of candidates per hire (CPH) as, succinctly, the number of applicants for a job up to the point of that job being filled. Again, remember, this is a trendline using the 2019 CPH average as a baseline of 100, not the actual number of candidates per hire.

Let’s look at what’s going on here through February:

We’re very much in a one-step-forward, two-steps-backward situation here – or is it two-steps-forward, one-step-backwards? Depends on who you talk to, we suppose. What we’re seeing here is that every time the Candidates Per Hire metric climbs a certain amount, hitting new records along the way, it takes a little hiccup before starting upwards again.

In this case, January’s 188 comes down pretty sharply to February’s 178.5. Still much, much higher than in recent years, but the drop is notable in that it follows dramatic rises in previous months as we’ve seen from October to December 2022 followed by a drop of -5.1 in January 2023, a another growth in February to April 2023 to a -13.7 drop in May 2023, and two more months of growth in December 2023 and January 2024 followed by this new drop.

It’s a little bit dizzying, indeed.

Now what about year-over-year comparisons? Let’s take a look at how November-December-January-February compares over the past six years:

Now you can see how February of this year is somewhat of an anomaly. In previous years, we see moderate or significant increase in the CPH metric from January to February with the minor exception of 2019-2020 – and in 2023-2024, we see, for the first time, a dramatic downward shift.

Sure, these are erratic times. But this stands out nonetheless, particularly as you see the TTF following historical trends and job opening data falling (mostly) in the middle of the pack when compared with previous years at this time.

What’s going on here?

We see a distinct trend here: small and medium-sized businesses (SMBs) are ramping up their hiring, in contrast to the slowdown we’re seeing among their larger peers.

This suggests a more agile and adaptive mindset among SMBs as business picks up and they adjust to a less predictable economy – but they’re also the ones more susceptible to breakdowns; unlike enterprises, they don’t necessarily have years upon years of experience and stability to draw from, or even established processes that have stood the test of time.

Likewise, they’re the ones more affected by the fallout of a bad hire or a fine resulting from non-compliance with the vast range of employment laws – both can put a fairly severe dent in their operating budget. These financial setbacks can become more commonplace when there’s no formal HR team in place to manage all this stuff.

For instance, an ADP study finds that fewer than one-third of small businesses have a formal HR professional in their ranks – and for those companies without, there’s an “ad hoc” HR manager in place (ADP’s own words). Even scarier, 82% of those ad hoc managers (the majority of whom are CEOs and presidents) have no formal HR training.

Now, we’re not saying that SMBs like yours should take on an HR professional (yes, you should, eventually), but rather, for the time being, your increased hiring, onboarding, and employee management needs a formal system in place. That formal system can be established with a worthy, uncomplicated HRIS that scales with your business and its increasingly complex HR processes

Meanwhile, for enterprise-level businesses, this isn’t necessarily a cause for worry, but rather, an opportunity to reassess recruitment strategies, perhaps focusing on optimizing hiring processes or adapting existing workforces to meet new technological and market demands.

It’s a key phase for businesses across all sizes – but especially for smaller businesses. Act wisely, take on fresh tools, and increase the agility and effectiveness of your HR processes. You can then continue to thrive.

See you next month!

The Hiring Pulse: Methodology

Because one of the three metrics (Job Openings) is different from the other two metrics (Time to Fill and Candidates per Hire), we’re adopting two very distinct methodologies.

And we chose 2019 as the baseline because, frankly, that’s the last normal year before the pandemic started to present challenges to data analysis among other things.

The majority of the data is sourced from businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

The post Your Hiring Pulse report for February 2024 appeared first on Recruiting Resources: How to Recruit and Hire Better.

Your Hiring Pulse report for September 2021

Keith MacKenzie — Thu, 09 Sep 2021 13:44:15 +0000

We know that data trends are important to you when recruiting. You and your hiring team want to know whether the trends you’re seeing in your own processes are ‘normal’. But it no longer makes sense to go back to historical data – read: pre-pandemic – as a measuring stick.

Even year-over-year and month-over-month data doesn’t make sense either, due to the dramatic spikes and valleys we’re seeing in the job market – let alone the craziness that was 2020.

So, instead, we’re taking a new approach so you can make the most informed decisions as an SMB employer when assessing your own data.

Jump ahead:

The Hiring Pulse: Methodology
Main highlights
Time to Fill
Total Job Openings
Candidates per Hire
So what’s the conclusion here?

The Hiring Pulse: Methodology

Got it? Great. To start, we’re looking at the worldwide trends for three common hiring metrics: Time to Fill, Total Job Openings, and Candidates per Hire. The majority of the data is sourced from small and medium businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

Stay tuned for more immersive analysis in the coming months – including industry-specific, function-specific, and location-specific reports.

Main highlights

The three main highlights for this month are:

A sharp downward trend in Time to Fill starting in Q2 2021
A significant spike in job openings in March 2021, followed by steady growth in job opening numbers every month after that
A drop in average candidates per hire every single month in 2021 – and dropping more significantly throughout Q2 2020

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled.

As you can see in the graph below, first of all, there’s a dramatic spike in Time to Fill coinciding with the start of the pandemic – more than likely due to many new job openings being put on hold in response to economic uncertainty.

But there’s also a clear upward trajectory in Time to Fill starting at the end of Q2 2020, followed by a dramatic downward trend in Time to Fill at the start of 2021 – and especially in Q2 2021. (Note that these trends are based on a trailing three-month average, making these changes even more dramatic.)

Let’s speculate a bit here, starting with the upward trends from mid-2020 to end 2020. We have three explanations in mind:

The recruitment process is managed by leaner teams and budgets due to drastic cutbacks in Q2 2020 – therefore slowing down the overall recruitment process.
The spike in unemployment in Q2 2020 contributed to a higher number of candidates per job opening – requiring more time to sift through candidate pools for a job.
The upwards trend towards the end of 2020 is due to slowdown in day-to-day work including the hiring process due to the holiday season.

And what about the drastic drop in Time to Fill trends in 2021? Again, we have three thoughts:

With the economy opening up again, businesses started hiring/re-hiring more quickly.
The lessons of 2020 include the need for more agile, nimbler processes requiring quicker turnaround, including in hiring.
Businesses are now hiring for stop-gap; to fill immediate needs in addition to longer-term solutions – especially when navigating a more volatile and unpredictable business environment.

(NOTE: You’re probably wondering why we stopped the numbers in July. That’s because the data is based on the time the job was opened, not when it was filled. For instance, the Time to Fill for a job opening published on August 15 would be 15 days or less – therefore skewing the data. So we’ve omitted August for this chart.)

Let’s go to the next metric: overall job openings.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

What we see is a significant decline in job opening trends starting with the pandemic followed by an equally dramatic spike in the trend in Q2 2020 as the economy started to reopen after the first wave of COVID cases.

But then the numbers return to a negative trend towards the end of 2020 worldwide, which can be attributed to two factors: the exponential growth in COVID cases worldwide and particularly throughout the US and the UK, combined with the usual slowdown of day-to-day business into the holiday season.

We then see positive growth in job openings starting in January 2021, climaxing in March which saw a 42.9% increase in job postings over the previous three-month average.

Again, this is made more significant as it’s based on a rolling average of the past three months. Even as the trend appears to taper off going into Q2 2021, this chart actually show job openings are continuing to grow at an approximate 7% clip every month.

This indicates a revitalized job market. When businesses are hiring, that signals a healthier economy and growth – at first glance anyway.

With that, let’s now look at the Candidates per Hire.

3. Candidates per Hire

Workable defines the number of candidates per hire as, succinctly, the number of applicants for a job up to the point of that job being filled.

In 2020, we see the expected spike in candidates per hire with the start of the pandemic – after all, as a basic rule of thumb, mass layoffs lead to higher numbers of applicants. And this trend slows down towards the end of 2020, going into a negative trajectory in Q4.

But in 2021 even to July, we see a consistently negative trend in candidates per hire every single month. That downward trajectory doesn’t show any signs of slowing down.

(NOTE: Again, you’re probably wondering why we stopped the numbers in July. Again, as stated above, that’s because these data are based on the time the job was opened, not when it was filled.)

Let’s now look at both job openings and candidates per hire as an overlay. In 2020, we see some correlation between the drop in job openings and the drop in candidates per hire – understandable, because fewer job openings indicates more jobs being filled, leading to more candidates finding work, ultimately leading to fewer people looking for work.

We can theorize a little deeper, although that’s a good basic explanation for 2020’s trends. But then we look at 2021 data, and we’re not seeing that same correlation. This year, job openings are still trending upwards, but candidates per hire are trending downwards.

What’s going on here? Well, there has been a lot of talk about the “Great Resignation” and unprecedented quit rates in recent months. Let’s wrap up with a conversation on this topic.

So what’s the conclusion here?

A clear observation is that workers are leaving jobs, but they’re not applying for other work. Forbes chalks this up to worker burnout, pointing to the correlation of quit rates with increased productivity.

Perhaps this signals a disconnect between employers and employees. The old way of business isn’t working anymore, and workers are dropping out of the system in a modern version of 1960s counterculture icon Timothy Leary’s famous statement, “Turn on, tune in, drop out.”

To paraphrase Leary from his autobiography, Flashbacks, he explains this statement as first becoming more intimately aware of one’s internal needs and triggers (turn on), connecting with the external world in a more harmonious way (tune in), and finally, committing to one’s own priorities and sense of self (drop out).

In short: workers are finding more meaning in life beyond work, and they’re acting on it. To stay relevant as an employer, you may need to reconsider your employee value proposition because the traditional one no longer resonates in this new world of work.

The post Your Hiring Pulse report for September 2021 appeared first on Recruiting Resources: How to Recruit and Hire Better.

Your Hiring Pulse report for April 2022

Keith MacKenzie — Tue, 12 Apr 2022 16:22:17 +0000

In short: five-year plans and even full-year strategies are giving way to quarterly shifts in practice – and employers who are quick on the ball will succeed. Your SMB workforce management strategy needs to be just as nimble, just as quick, if not more so than other elements of business strategy.

Now, as we get into this month’s SMB hiring data deep dive, we’re going to share some ideas about the importance of standardizing your recruitment flow because of that same wild unpredictability. You want a system in place that continues to hum along smoothly during slower hiring times, but you also want a system that you can quickly kick to the fifth gear as job openings spike and candidates start to flow en masse.

But first, let’s crunch away!

How we’re looking at data

First – and we explain this every month to be sure that it’s understood – looking at data gives us a measuring stick so we can see what’s going on in the hiring landscape. But when that measuring stick regularly changes during this ‘Never Normal’ time, it becomes an unreliable gauge.

It’s no longer helpful to look at the data YoY or even MoM. Rolling trends make more sense because then you’re comparing data with what’s happening in recent months. So we’re looking at percentage increase or decrease when compared with the rolling average of the three trailing months. Want a more detailed methodology? Jump to the end and check it out.

As always, we look at the worldwide trends for three common SMB hiring metrics:

Time to Fill (TTF)
Total Job Openings
Candidates per Hire (CPH)

In this Pulse, we take a look at these three core metrics, and then we’ll share some ideas on how to run your business so it somehow stays calm and carries on through pandemics, wars, and all of the rest of it.

Let’s start analyzing!

Time to Fill
Total Job Openings
Candidates per Hire
What’s going on here?
Deep dive
Conclusion
The Hiring Pulse: Methodology

Main highlights

The three main highlights for this month’s Hiring Pulse are:

Hiring is busy right now for SMBs – more than it has been since the first quarter of 2021
Job metrics are stabilizing in the first quarter of 2022 – which potentially means a normalization of the hiring market
Some sectors are seeing normalization more than others – and some not at all

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important to understand that definition: if a job is opened in October or even as early as April last year, but isn’t filled until March, it won’t count in this graph. If another job is opened on the same day in July or September but is filled on February 28, it does count in this graph.

We’ve pointed out previously that this does explain the recent downward trend in recent months to a degree at least – but it does not explain it fully. Let’s look:

Last month, we saw that the number of consecutive negative-trending months was at six straight months – that point of data has finally started to rectify itself with the recalibration of the TTF metric for September, October and November of 2021. Take a look at the previous month and note that the TTF trend was -2.3%, -5.0%, and -5.6% for those months respectively, and now they’ve changed to 0.0%, 0.6%, and 1.8%.

Read that first paragraph again about TTF only being included once a job is filled. What we’re seeing here is that many jobs opened in Sept-Oct-Nov 2021 were filled in February 2022. A job opened at the start of September and filled on February 28 would mean a TTF of 180 days. Even a job opened at the end of November and also filled on February 28 would be a TTF of 90 days.

This means that job openings that have been languishing in the ether for months on end are getting filled at last – much to the relief of many employers, we’re sure. It’s not so much an indication of a healthier economy or better recruitment marketing or more candidates – rather, it simply reaffirms the reality that the first quarter is always a busy hiring time. And ultimately, what initially appeared to be a plummeting TTF trend is now balancing out with these new developments.

We did note last month that a lot of jobs were opened in January and were filled in January – that still holds true. But we are now in April and the TTF trend looks like it’s stabilizing. In fact, you could call it normalizing.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

So, let’s look at the raw job open numbers – which aren’t contingent on job open/close dates like TTF and Candidates per Hire, so we can include March 2022 in this chart:

Whoa, what a fiercely busy quarter for hiring teams. Last month we pointed out that businesses are starting to hire again – this is continuing to happen. The job market is flourishing, with March seeing a huge 20.4% jump in the job opening trend when compared with the trailing three-month average. And that March number is even more impressive when you consider that January and February are already high on their own.

It’s no longer a rebound from Omicron, even with new variants surfacing. It’s also the job market surging after a traditionally slow December.

We’ve talked about it many times in previous Pulses, but we can’t ignore the Turnover Tsunami, The Crisis of Quits, The Talent Shuffle or whatever you want to call it. It is still dominating the workforce. February quit numbers in the United States according to the Department of Labor (DOL) were more than four million – again.

And March also saw plenty of new jobs in the US – not 678,000 as in February, but still more than 400,000. A huge chunk of that is in retail and hospitality – keep that in mind as you read on.

In short: there’s a lot of activity in the job market both in terms of new jobs and backfills, and that shows in our data.

3. Candidates per Hire

Workable defines the number of candidates per hire (CPH) as, succinctly, the number of applicants for a job up to the point of that job being filled.

Let’s look at what’s going on here through February:

(NOTE: Again, as in the TTF chart, you’re probably wondering why we stopped the numbers in February. Again, as stated above, that’s because these data are based on the time the job was opened, not when it was filled.)

We discussed how the data can recalibrate based on recent filled jobs – which as mentioned above was happening at a steady clip through the first couple of months of 2022. This is happening here as well – and what’s different this time is the way the CPH trend is now mostly stabilized at just below zero through to the end of 2021.

This again is an indication that those jobs in the latter months of 2021 have been filled aplenty through January and February. And the big upward adjustment in the TTF metric above also means more candidates were being evaluated for those jobs.
We did say last month that we would revisit the January data to see how much it changes – it’s -11.3% now, compared with -18.6% last month.

Could it be that hiring teams simply waited until they found the right candidate, and sifted through as many as possible rather than jumping on the first one they could find? Perhaps.

What’s going on here?

Let’s quickly recap. The TTF trend is stabilizing. The job opening trend is going through the roof. And while the candidates per hire trend is still trending negative, it’s not nearly as dramatic as seen in previous Pulses. All of these things indicate a slow return to normal in the hiring world.

But we’re well aware of the vast discrepancies in hiring experiences across different industries, so we’re going to take a look at them.

The deep dive

We mentioned above the proportion of new jobs being in the retail and hospitality sectors. That’s an important reminder that not all sectors are the same.

These four sectors below were picked because they’re highly impacted by world developments and their fallouts:

Education – because we know that education workers are in short supply due to burnout
Health Care – because it’s one of the sectors that was and is hugely impacted by COVID-19
Restaurants & Hospitality (our categorization) – because of higher-than-normal quit rates as part of the Great Resignation (more on that below)
Transportation – because supply chains and transportation industries have been hit by what seems like a metric ton of different factors (more on that below).

So, let’s look at the four across all three hiring data trends.

Time to Fill

Let’s start with the Time to Fill trend:

What really stands out here is how much TTF in the Restaurants & Hospitality sector grew during the latter months of 2021, with a 15.4% positive trend in December on the heels of 5.4% in October and 6.7% in November.

This is expected – there’s more stress in this sector with increased public socialization and travel combined with holidays and colder weather. Bottlenecks in hiring are bound to happen as this area gets busier – which drives TTF up.

Meanwhile – Transportation saw a 20% positive trend in TTF in October, followed by just 2.2% in November, -12.5% in December, -25.7% in January – and finally, -27.9% in February. Supply chains worldwide have been disrupted significantly, with no signs of abatement for 2022 according to the New York Times. There’s a lot of external pressure in this area.

The transportation industry itself is also seeing wholesale developments through increased EV usage, MaaS (mobility as a service), and last-mile delivery which has grown hugely in the last two years as a result of increased online shopping.

And, of course, there’s a major shortage in trucker talent. Mass migration all around, and quick hiring to desperately fill spots to avoid the domino effect that a gap in the chain can trigger. All of this impacts TTF.

Job Openings

Now, let’s look at the job opening trends across these four sectors:

Again, Restaurants & Hospitality jumps out at us. It’s noted that the Big Quit is especially happening in this area – with twice the quit rate levels here compared with the overall US average according to the DOL. This leads to increased backfill, and more job openings as a result. We’re seeing that in our data, with a huge spike going into 2022 in the job opening trend here (36.6% in January and 63.8% in February).

Also worth noting that back in March 2021, there was a 121.1% increase in the trend – likely pandemic-driven as COVID cases cooled off and the world reopened in the springtime.

Meanwhile, the Transportation sector sees significant growth in job opens in January and February 2022 (16.6% and 14.2%) before finally coming down to relative earth levels for March 2022 (8.8%). It’s still far from what we saw in the three months of Q2 2022 – 27.1% in April, 27.9% in May, and 25.6% in June.

And Health Care? It’s spiking again in the first quarter of 2022 – topping out at 28.7% in March 2022. It’s not nearly as high as Q1 2021 (55.1% in January 2021, 66.2% in February 2021), but worth noting is that it’s very different from 2020 just before the onset of the pandemic – 9.3% in January 2020, 2.8% in February 2020, and 5.0% in March 2020.

The higher job opening trends in Q1 2021 likely was a response to the worst period of the pandemic, when we saw some 15,000 COVID-related deaths per day worldwide that January. And this time, we’re navigating Omicron and other new variants. Cue pressure on the health care system, prompting the need for more staff – hence, more job openings.

However, we’ll also wager that there are many backfills in health care. Workers in the health care sector are tired and overworked after more than two years of this COVID stuff, and opting out of the system. Same goes for Restaurants & Hospitality. Education can’t be ignored, either.

So… this Big Quit is very alive and very real in these areas.

Candidates per Hire

Finally, let’s look at Candidates per Hire across the sectors:

What stands out are two spikes – first, the CPH trend in Health Care jumped 28.3% in December 2021. Second, CPH in Restaurants & Hospitality grew 5.6% in January 2022.

Restaurants & Hospitality’s growth was after a slow November and December and the only one of the four to see a positive CPH trend in either January or February of 2022.

Education, meanwhile, sees a very interesting month-to-month shift in the CPH trend – with more candidates per job in September (13.8%), October (22.4%), and November (15.0%) followed by equally dramatic negative trends in December (-20.9%), January (-20.2%), and February (-38.7%).

So, more people are applying for jobs in Health Care and Restaurants & Hospitality, and fewer are applying for jobs in Education. We know books will be written about the impact of the pandemic on our society in the coming years – in fact, many have been published already – and this particular area deserves a deep study of its own.

For now, we will just point out that this combined with the higher job openings points to higher-than-normal turnover in these sectors.

Conclusion

We’ve got more than a few things happening here – COVID itself, the Big Quit, seasonality, the paradigm shifts stemming from the pandemic in social behavior, purchasing habits, life priorities, and all of the rest of it. We talked a lot the last couple of months about the importance of recruitment marketing and agility in the hiring process of SMBs – this time, we’re going to stress the importance of standardized recruitment using software.

Yes, we know we are a hiring software, and we know this sounds like a plug for Workable. But listen: SMB hiring teams do need a standardized hiring process that can navigate the sudden ebbs and flows of the job market. Having a largely automated system managed at the console by human hiring teams is much, much easier – and less costly in terms of finance and logistics – than adding to and subtracting from HR payroll, as well shifting longer-term business strategies.

As an SMB employer that needs to watch the bottom line closely, you want a system that operates just as smoothly in cruise control as in slower, deader times and in fast-paced, über-turbulent times. That system is, of course, the ATS.

Whether or not you’re in one of the four highlighted sectors above, standardization of hiring is crucial if you want your business strategy to execute smoothly.

The Hiring Pulse: Methodology

The majority of the data is sourced from small and medium businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

The post Your Hiring Pulse report for April 2022 appeared first on Recruiting Resources: How to Recruit and Hire Better.

Your Hiring Pulse report for March 2022

Keith MacKenzie — Tue, 08 Mar 2022 13:03:35 +0000

We then talked about ways in which you can overcome that challenge, including this important insight: the candidates are out there, but they’re just not applying to your jobs. It’s not like the world’s available talent magically shrunk overnight – potential hires are still out there, but their priorities have changed during these times of the Big Quit.

So, we emphasized the importance of recruitment marketing, and a shift in your mindset that you have to show the value of yourself as an employer – in other words, your employee value proposition. Instead of asking candidates why they want to work for you, show them why they should want to work for you.

This trend will continue, but we’re also viscerally aware of the recent developments in Ukraine and watching how this impacts the job and talent markets. We don’t have data on this just yet, but we do have tips on what you might do as an employer to withstand any impact this might have on your organization.

Ultimately, we’re talking about managing and hiring through uncertainty (especially if you have a portion of your workforce in Ukraine or Russia – watch for an article on that soon). And more so, with the conflict happening at the tail end of an already debilitating pandemic, it’s as if the only certainty we have is that we live in uncertain times. As we shared from Ira Wolfe in January’s Hiring Pulse – it’s not the ‘New Normal’, but rather, the ‘Never Normal’.

Keep that in mind as we look at the hiring data. Then we’ll share some tips on managing through uncertainty.

How we’re looking at data

As always, we look at the worldwide trends for three common SMB hiring metrics:

Time to Fill (TTF)
Total Job Openings
Candidates per Hire (CPH)

Let’s start analyzing!

Main highlights

The three main highlights for this month’s Hiring Pulse are:

Average Time to Fill is continuing to drop
Candidates per Hire stabilized at end of 2021 – but talent pool became saturated again as job openings skyrocketed in January
Hard to say what to expect in the next couple of months as a new crisis begins to ripple the world economy – so plan accordingly

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important to understand that definition: if a job is opened in October or even as early as March last year, but isn’t filled until February, it won’t count in this graph. If another job is opened on the same day in July or September but is filled on January 31, it does count in this graph.

We’ve pointed out previously that this does explain the recent downward trend in recent months to a degree at least – but it does not explain it fully. Let’s look:

The first big takeaway here is that the number of consecutive negative-trending months is now at six straight months.

And that last month – January 2022 – is at -32%. Not only is that different from the latest month in the last Hiring Pulse (-21.2%), it’s also a much starker negative drop from the previous month. Last month’s report showed a 7.3-point drop from November to December in the TTF trend – but this month, the drop is from -12.2% to -32%, a staggering 19.8-point drop.

Our take is that a lot of jobs were opened in January – and were filled in January – which drives the TTF down, way down. January (and Q1 in general) is traditionally a very busy period for the recruitment process as businesses kick their respective strategies into action, and that shows here.

Shorter TTFs are the norm – but that’s also been compounded by a very healthy job market (read on for more).

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

So, let’s look at the raw job open numbers – which aren’t contingent on job open/close dates like TTF and Candidates per Hire, so we can include February 2022 in this chart:

Again, we’re seeing a healthy spike in job openings with a 14.1% upward trend in February on the heels of 17.1% in January. That’s normally good news as it indicates that businesses are hitting their stride and starting to hire again.

Data crunchers will naturally dig for the “but”. It’s probably that businesses are getting back into the hiring swing after a slow December hiring month and also are no longer feeling Omicron skittishness.

But we’re countering that by saying that a 14.1% growth in job openings in February compared with November, December and January is a good indicator that things are looking up. It’s not just a one-off thing.

We do have to point out another reason for increased job openings: the Big Quit. When someone leaves a job, that job generally becomes open for backfill. So, more job opens. Makes sense. But that’s just one part of the equation.

The US Department of Labor did announce 678,000 new jobs in February, a sharp rise from 467,000 new jobs in January. The challenge now is how the conflict in Ukraine may impact the worldwide job market. Time will tell. For now, we offer what the Washington Post reported in the first week of March:

“[E]conomists say it is unclear exactly how the war might affect American jobs, they note that skyrocketing energy prices, slowdowns in consumer spending or looming uncertainty could prompt businesses to pause hiring in the coming weeks.”

Uncertainty. That word again. Keep it in mind.

3. Candidates per Hire

Workable defines the number of candidates per hire (CPH) as, succinctly, the number of applicants for a job up to the point of that job being filled.

Let’s look at what’s going on here through January:

(NOTE: Again, as in the TTF chart, you’re probably wondering why we stopped the numbers in January. Again, as stated above, that’s because these data are based on the time the job was opened, not when it was filled.)

Important: As jobs get filled, they then are included here. In previous monthly reports, we haven’t normally seen such a huge recalibration in the CPH trend in recent months – but this time, the shift is drastic, with now only the last month in the chart (January) showing any clear drop-off. Last month’s Pulse showed double-digit drop-offs in the CPH trend for three months running:

-11.2% for October 2021
-13.6% for November 2021
-15.3% for December 2021.

That’s since changed to -7.6% for November, -1.5% for December, and -18.6% for January 2022.

Here’s our take on it: Fewer jobs mean less talent saturation. And those looking for jobs aren’t just going to take some time off in December – they still have bills to pay and food to put on the table, so they’ll keep up their jobhunt in December even as job openings dwindle for the month.

So: the candidates per hire trend recovers a little bit for the holiday season, before dropping steadily again in January as job openings again spike while the raw number of candidates remains steady. Does that make sense? Let’s check back in next month and see what happens as the data for January fills up more with more “complete” jobs data.

What’s going on here?

While nothing staggering in these numbers, they do point to how quickly data can change from month to month even with our “rolling trend” approach to the data. In other words, these are uncertain times and they have been since early 2020 – and one might even say that it’s been uncertain for much, much longer than that.

Consider some of the “earthquake moments” that have happened recently that have shifted the world economy – and your business and hiring: the 9/11 attacks, Brexit, the election of Trump, the Greek debt crisis, the global financial crisis of 2007-2008, and, of course the COVID-19 pandemic and now, the war in Ukraine. There’s more, but you get the idea.

The lessons of uncertainty

This new conflict in Ukraine is not a regional issue. It has potentially far-reaching consequences – energy costs (which we’re already seeing), migration, consumer spending, the whole bit. This brings us back to the core concern here: how do you navigate a business through uncertainty?

The good news for you is that, in a way, you’ve had some ‘practice’ from navigating the pandemic. While COVID-19 had a debilitating impact on businesses around the globe, the silver lining is that it taught businesses – and employees – how to be more agile in their work.

Employees are also leaving the workforce in droves, as we know, but the flip side of that is they’re looking for something more meaningful while continuing to collect income. They’re looking to be more autonomous and flexible in their work – hence the growth of the self-employed economy – and companies would do well to adapt to that new expectation of work.

That emerging talent pool, as a rule, meets short-term personal and business needs. That actually benefits you as a business.

Being agile means thinking month-over-month or quarter-over-quarter as opposed to year-over-year. To survive, your business strategies ultimately become shorter and more nimble – even if you’re a larger company. You want to be able to react quickly to developments – and even capitalize on them.

The importance of flexibility

That kind of agile mindset in business also means being more flexible – and even giving your employees greater autonomy to make decisions rather than needing to go through a long approval process before getting something done. Greater flexibility and autonomy in your jobs will speak volumes for your employee experience and even attract more candidates to your jobs, and that mindset and approach is also ideal for your business when navigating these uncertain times.

As Workable’s CMO Doug Ellinger wrote in an article:

“Use this as an opportunity to refocus the team on what it can organically produce through activities like content creation, enhanced distribution, email marketing, and improved alignment with the rest of the business. This is a time to get nimble and take a bare-bones approach.”

And as one-time Workable COO Grigoris Kouteris told us once in the early days of the pandemic:

Business planning is important especially now. Focus on yours, and ideally see the results in the form of talent attraction, retention and engagement – and overall success as a business.

The Hiring Pulse: Methodology

The majority of the data is sourced from small and medium businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

The post Your Hiring Pulse report for March 2022 appeared first on Recruiting Resources: How to Recruit and Hire Better.

Your Hiring Pulse report for February 2022

Keith MacKenzie — Tue, 08 Feb 2022 19:17:56 +0000

Now, don’t ask where we got that from – we’re not sure either, but we did hear it somewhere. If you want things to go well, put together a solid framework and put some thought into it first. There’s more there if you want to take a deep dive.

This month, we want to focus on the short supply of candidates that you might be seeing in your open roles. Is that happening elsewhere as well? Oh yes, it is. We’re seeing it in our hiring data. Let’s read on and then look at the ways you can overcome this challenge so you can keep your SMB engines running at full throttle.

How we’re looking at data

First: Data, as a rule, provides us with a measuring stick for comparative purposes, but when that measuring stick changes regularly as is the case in these times, it becomes unreliable.

So, looking at the data YoY or even MoM makes for a flawed study. So, instead, we’re looking at rolling trends. This means we’re showing data as a percentage increase or decrease when compared with the rolling average of the past three months. Jump to the end for a detailed methodology on this.

As always, we look at the worldwide trends for three common SMB hiring metrics:

Time to Fill (TTF)
Total Job Openings
Candidates per Hire (CPH)

In this Pulse, we take a look at these three core metrics, and then we’ll take a broad look at how 2021 looks compared with 2020.

Let’s start analyzing!

Main highlights

The three main highlights for this month’s Hiring Pulse are:

Employers are hiring faster – and that’s becoming the norm
There are plenty of candidates out there – but their numbers are diluted across numerous job openings
Job openings are about to surge in the first quarter of 2022

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important that we understand this distinction: if a job is opened in October or even as early as March, but isn’t filled until January, it won’t count in this graph. If another job is opened on the same day in July or September but is filled on the last day of December, it does count in this graph.

While this measurement strategy partially explains the recent downward trend, there’s more happening. Let’s take a look at the TTF trend:

At first glance, this chart really isn’t much different from the ones preceding it – except for one thing: the number of negatively trending months is now five consecutive months.

It was four straight months in last month’s Pulse. And in December’s Pulse, while also five consecutive months, the first two of those five months were only a sliver below zero at -1.1% in June and -1.9% in July. So, really, December’s Pulse is just three months of significantly negative trends.

This time, the first two of the five months are –3.7% and -8.2%, and nosedives after that. What’s the story here? Shorter TTFs are becoming the norm now.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

So, let’s look at the raw job open numbers – which aren’t contingent on job open/close dates like TTF and Candidates per Hire, so we can include January 2022 in this chart:

Finally, a reversal in trends: January 2022 shows 17% more job openings than the Q4 monthly average from 2021.

To be fair, December is traditionally a slow hiring season and we highlighted three reasons for that last month: holidays, Omicron, and strategic planning for 2022 – which, of course, includes a hiring plan. Now that 2022 is here, that plan turns to action – including the hiring.

Quick note: The US Department of Labor (DOL) also just announced 467,000 new jobs in the country in January – a full third of which are in the hospitality sector.

The data from past Januaries – even before the pandemic – also show the month to be traditionally strong for jobs. Keep this in mind for later.

3. Candidates per Hire

Workable defines the number of candidates per hire (CPH) as, succinctly, the number of applicants for a job up to the point of that job being filled.

Let’s look at what’s going on here through December:

(NOTE: Again, as in the TTF chart, you’re probably wondering why we stopped the numbers in December. Again, as stated above, that’s because these data are based on the time the job was opened, not when it was filled.)

We commented above that employers are really struggling to find and attract candidates to their open roles. This is pretty clear here, with just one positive month in the 17 months since July 2020.

What do we need to say here? There’s no reversal in sight – fewer candidates are the norm.

What’s going on here?

In January’s Hiring Pulse, we highlighted the importance of pre-planning the recruitment process. We’re doubling down on that message here because hires are happening faster than ever.

That’s a good thing for candidates who are (or were) frustrated with long waits for decisions from the employer side. Candidates have a plethora of job openings out there at their disposal, especially now in January. They don’t have to wait around for your next interview or your job offer – they have choices now.

As an SMB employer competing with many other employers for those candidates, you don’t have the luxury of time when evaluating candidates for roles. This means it’s time to get proactive in your hiring process – not only do the prepwork, but also work on your candidate attraction strategy. More on that below.

4. 2021 versus 2020

A debate about 2021 versus 2020 is kind of like debating King Kong versus Godzilla or DC versus Marvel. Both years have been nothing short of eventful, both significant when analyzing via a historical lens, and – closer to our own area of expertise – both come with their own specifically crazy challenges in the world of hiring, far more than anything before the pandemic.

With the full 2021 data at our disposal, let’s take a look at both 2021 and 2020 and how they measure up against each other.

Time to Fill

First, let’s have a look at Time to Fill:

Obviously, 2020 was a whack year for many SMBs. You can see the impact of the pandemic at the start – and the lengthening of the Time to FIll metric (peaking at 9.1% in March 2020) as SMBs held off on hiring until things stabilized. Then, we see some reversal (bottoming out at -5.5% in June 2020) as employers scrambled to rehire and backfill.

Finally, we see the TTF metric stabilize going into Q3 2020 with a mild uptick towards the end of the year.

In 2021, TTF metric looks relatively stable before trending down from August 2021 onwards. This is the Great Resignation at play here – more open roles and fewer candidates are forcing the hand of employers who are desperate to fill roles so they can keep business going.

Total Job Openings

Now, the job openings:

Again, you see the impact of the pandemic in early 2020, plummeting to an astonishing -51.6% in April 2020, followed by drastic recovery peaking at an equally dramatic 49.4% in July 2020. Then the job opening trend stays significantly positive until the last two months of 2020.

The other takeaway here is that with January 2020 being at 20.3% and January 2021 at 22.5% – and January 2022 at 17% – job openings get posted en masse throughout January and that’s normal. If the first quarter of 2021 are any indication (22.5% in January, 25.3% in February, 42.9% in March), this will continue to be the case throughout Q1 of this year.

Candidates per Hire

Finally, let’s look at Candidates per Hire for both years:

Huge upturn in the CPH trend, especially in April with 36.7% and May with 34.3% more candidates than the trailing three-month monthly average. The market was flooded with jobseekers in early 2020 due to mass layoffs (correlating with abysmally high numbers in jobless claims from March to May 2020 in the US).

We then see the signs of economic recovery due to the market opening up again through Q3 2020 with a mild uptick in December.

And finally, as pointed out above, the CPH metric keeps trending negative every month throughout 2021 – this is despite Delta and all of the rest of it.

What’s the lesson here for SMB employers? While job openings are relatively normal (so far, knock on wood), the CPH metric is not. There’s very little correlation between 2020 and 2021 here. There simply aren’t as many job applicants per role as there were before.

Conclusion

We’ve already talked about doing your prepwork before posting the job ad as a way to get ahead of that shorter TTF metric.

Now, with candidates at a premium, let’s talk about candidate attraction strategies once the job’s been posted.

The reality is that there are candidates out there. They’re just not applying to your jobs.

There are some factors at play here:

They’re passive candidates. They’re not actively looking or interested right now.
They don’t know that you have a job open at your company because they’ve never heard of you.
They’ve heard about you and that’s why they’re not applying for jobs at your company.
They’ve seen your job ad and they don’t like your value proposition so they’ve chosen not to apply.

Let’s go through each one by one:

1. They’re passive candidates.

Either they’re working and not looking, or they’re not working and not looking because they’ve found another way to live life. They’ve gone to the farm in Maine and started their online soapmaking business, or they bought a van and are traveling across the country. But that’s not necessarily a forever thing – just a ‘now’ thing.

Or maybe they can’t/won’t work because family takes priority (yes, we found this in our Great Discontent survey – especially for women, who are more than twice as likely to not be working because of family commitments).

But that doesn’t mean they won’t talk to you. But you still need to take the first step of reaching out to those potential candidates. Understand who these people are, and what they’re looking for in a job. Build out your talent sourcing strategies beyond the usual InMail. Establish an employee referral program. One way or another, you need to find them and strike up a conversation.

2. They don’t know about your job or company.

Unless you’re Google or SpaceX, not everyone will have heard of you or your product or service. Or your jobs, for that matter. That means it’s on you to try to get your jobs out in front of people – whether that involves smart distribution or the latest technology.

If you just post to LinkedIn, Glassdoor and Indeed, then you’ll get a segment of candidates who regularly visit those sites. But not everyone frequents those places.

There are numerous places to promote your job opportunities. Think of your job ad as a public announcement. You can’t afford $50 million to get that cherished Super Bowl spot during halftime, but it’s worth diversifying your outreach, whether that’s on niche job sites, via your extended network, through clever marketing campaigns, or even sanctioning an article talking about your company culture – think of it as an investment in your future employees.

3. They’ve heard about you and because of that, they’re not applying.

First off, this is about your reputation as an employer; in other words, your employer brand. Maybe something happened during layoffs in mid-2020 that just shed bad light on you as an employer. Maybe your salaries aren’t up to par with similar roles in other companies and people are talking about it, or you’re known for being inflexible in your work processes.

Or maybe it’s about your company brand. Perhaps your product or service is controversial. Maybe your public messaging or positioning rubs some the wrong way.

First, find ways to build (or rebuild) trust with the workforce as an employer. Maybe it’s doing some PR work. Maybe it’s getting your employees talking more about the good things in your company. Maybe it’s about marketing yourself as an awesome employer (see more below).

And second, you might emphasize something about the company that helps candidates reconcile the company’s priorities with their own. Look at Northrop Grumman, a US defense contractor that built a microsite highlighting technological innovation and creativity as a way to appeal to jobseekers with a passion in that area. Or target candidates who are more aligned with your company’s objectives.

4. They don’t like your value proposition.

Finally – what’s your employee value proposition (EVP)? In other words, what value are you giving your workers in exchange for what they bring to you? Can you pay your employees more? Can you be more flexible in your working setup? Can you offer remote or other benefits? Can you support working parents? And so on.

Study the local talent market and determine what’s competitive there. Understand the trends and developments in the world of work and see if you can evolve your own EVP to meet those expectations.

Overall, recruitment marketing is at the heart of all this. If you can market your company as a place where people *want* to work – and market it to those people specifically – then you can overcome many of the hurdles described above.

Think of it like a funnel.

Top of funnel: Are they aware of your job?
Middle of funnel: Are they interested in the job?
Bottom of funnel: Have they decided to apply?

Marketing types speak very loudly to this stuff. Go talk to them and find out how you can establish a recruitment strategy that makes candidates *want* to work for you, and motivates your current employees to stay.

The Hiring Pulse: Methodology

The majority of the data is sourced from small and medium businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

The post Your Hiring Pulse report for February 2022 appeared first on Recruiting Resources: How to Recruit and Hire Better.

Your Hiring Pulse report for January 2022

Keith MacKenzie — Tue, 18 Jan 2022 21:59:29 +0000

We’ve suggested a couple of perspectives including:

A more concentrated – and higher quality – candidate pool as a result of applicants being more selective in their jobhunt; and
Frustrated employers just locking in on the “good enough” candidate rather than the “ideal” candidate.

In December’s Hiring Pulse, we warned SMB employers against the latter strategy – being quick to hire just to fill those looming gaps – because while it’s a great stopgap measure, it can hurt in the long run.

Instead, we recommended that employers put in the prepwork ahead of time before even posting that job ad – ideally as a collaborative hiring team. For example, you and your team can prepare for the recruitment process by:

Outlining the overall goals of the team
Identifying the gaps within that team
Determining what job opening(s) ideally fill those gaps
Crafting the “ideal candidate profile” (ICP) for the job opening(s)
Drafting a job description clearly encompassing details from all of the above – including all elements of the employee value proposition
Establishing a clear selection process – with interviewers and interview questions, assessments, screening strategies, etc.
Preparing for negotiations as needed – and budgeting for a specific salary range
Clarifying a timeline – both for the benefit of the team and the candidate

That’s a lot right there, and that’s before the Time to Fill even starts with the posting of a job ad. But as stated in December, this is future proofing – the more prepared you are for a recruitment process beforehand, the better results you will have and the less likely you’ll have breakdowns.

Part of all that is data, of course. Nothing runs without knowing the benchmarks. We know that this as important to you as any of the above when recruiting in the SMB world. If you’re finding that you’re getting X number of applicants for your open roles, is that normal? If you’re taking Y days from the point you posted a job to the point your candidate signs that job offer, is that something others are experiencing as well, or is that something you need to get better at? And so on.

To help you, we’re taking a fresh approach to hiring data to support you when you analyze your own numbers.

How we’re looking at data

‘Normal’ doesn’t really exist anymore, even if it is a ‘new normal’. In fact, Future of Work thought leader Ira Wolfe calls it the “Never Normal” – which looks to be more and more the case with every passing month.

Quick note: ‘Uncertain times’ is a damn cliche – but it’s still the case, and as Ira suggests, it’s the standard now. So, looking at the data YoY or even MoM makes for a flawed study because of the regular fluctuations in the data over short periods of time. So, instead, we’re looking at rolling trends. This means we’re showing data as a percentage increase or decrease when compared with the rolling average of the past three months. Jump to the end for a detailed methodology on this.

As always, we look at the worldwide trends for three common SMB hiring metrics:

Time to Fill (TTF)
Total Job Openings
Candidates per Hire (CPH)

In this Pulse, we keep things short by staying with just these three core metrics. For the fancy stuff like regional trends and function-based trends, you’ll have to wait for a future Pulse.

Let’s start crunching away!

Main highlights

The three main highlights for this month’s Hiring Pulse are:

Jobs are getting filled – but there are some with very long Time to Fill
Job open trends are not correlating with job quit rates
The Candidates per Hire trend is still very, very low

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important that we understand this distinction with this graph updated to November: if a job is opened in October or even as early as March, but isn’t filled until November, it won’t count in this graph’s dataset. If another job is opened on the same day in July or March but is filled on the last day of November, it does count in this graph.

While this measurement strategy partially explains the downward trend in recent months, we’re going to sidestep that for now, and instead look at how the overall graph changed from last month.

Let’s start with a look at the new graph updated to November:

This chart really isn’t much different from the ones preceding it – except for two things:

First, the July number has now breached the surface to 2% above the trailing three-month average, indicating that jobs opened that month were finally filled in November. In other words, July’s TTF data has been updated with those newly filled jobs since last month’s Pulse data which had July at -1.9%. That’s nearly a four-point swing. That’s huge.

The flip side of it though is that those specific jobs took from July to November to be filled. That’s roughly four full months until the job was filled. And because we’re looking at a huge dataset here, it takes quite a few jobs to prompt such a significant swing from -1.9% to 2.0%.

The second big thing we want to point out is the huge drop in the CPH trend in the fourth and fifth months counting backwards from the current month’s chart. In this new chart, the drop from July to August is significantly sharper (2.0% to -8.2%) than the June-July drop (-1.1% to -1.9%) shown in the December data.

As is the case for data, we can draw a million conclusions from this. We’re open to your thoughts – please send us a note to content@workable.com and let’s chat about it.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

So, let’s look at the raw job open numbers – which aren’t contingent on open/close dates, so we can include December in this chart:

In the December Pulse, we highlighted a potential slowdown in business due to Omicron. Whether it’s correlation or causation, we do see the slowdown here. December’s job open trend is a staggering -12.5% below the preceding three-month average. That’s lower than it’s ever been since the onset of the pandemic in the spring of 2020. Even December 2020 dropped to “only” -8.3%.

In 2021, the trend stayed positive – to a high of 42.9% in March 2021 – before returning to surface level at -1% in November.

We know that job quits in November as reported by the US Department of Labor (DOL) was a surprising (for some) 4.5 million. Which would logically mean more job openings in December as companies struggle to backfill those positions, right? But that’s not happening.

We did say in December that it’s worth waiting to see what data DOL releases in January. We said that because we thought the drop in job open trends in our data in November was a predictor of lower job quit rates for that same month – i.e. a correlation between people quitting and new jobs being posted. But that didn’t seem to happen.

That’s not to say we were wrong – it’s just to ask the question: if job quit rates continue at a crazy high, then why aren’t we seeing the subsequent result of increased job openings?

Three reasons come to mind:

The holiday season – an overall slowdown in business processes, including both for hiring and for applications (and therefore, better to wait until January before announcing a new job).
Omicron – no further explanation necessary here.
And finally, businesses often do plan for 2022 rather than act at the end of 2021.

Let’s see what happens in February.

3. Candidates per Hire

Workable defines the number of candidates per hire (CPH) as, succinctly, the number of applicants for a job up to the point of that job being filled.

Let’s look at what’s going on here through November:

In December, we cried from the rooftops about candidates being at a premium, with October’s CPH trend being -26%. That’s since “recovered” to a more modest -16.6% as the month readjusted based on jobs being filled by the end of November. Still, CPH is negatively trending, with November showing a -18.6% drop.

Also: the CPH trends for October and November 2021 are at the lowest level since October 2020.

So… yes, candidates continue to be at a premium. No speculation or theorizing needed – simply put, employers are starved for candidates all around.

What’s going on here?

In the December Hiring Pulse, we pointed to candidates having the luxury of being able to wait until the perfect job comes along – they no longer want (or need) to grab whatever comes their way. It’s worth waiting just a few extra weeks to see what other jobs are out there – it’s a candidate’s market, after all.

And we challenged you, the SMB employer, to adapt to the changing rules of engagement and better understand what appeals most to today’s candidates before putting your job ads out into the wild. That’s still incredibly important, so keep at it.

The new lesson that comes with this month’s Hiring Pulse is what we highlighted at the beginning – you need to put in the work ahead of time before you kick off the recruitment process. There’s a well-known business lexicon that goes something like this: the best kind of business involves six days of planning and one day of actual execution.

The same idea applies here with job openings predicted to come raging back in Q1 2022.

So, this is a time for planning – and that’s not just polishing off your recruitment marketing strategy and evolving your employee value proposition. You also have to preplan and futureproof.

In short: don’t panic and rush to backfill roles when Cristobel in accounting or Siddiq in sales or Janie on the dev team hands in their notice. Take a step back and see this crisis as an opportunity to fine-tune and calibrate your teams. Look at where the gaps are – whether or not those are newly exposed or long entrenched – and determine the best fill for those gaps. And then get the damn job ad out.

So, one more time for effect:

Outline the overall goals of the team
Identify the gaps within that team
Determine what job opening(s) ideally fill those gaps
Craft the “ideal candidate profile” (ICP) for the job opening(s)
Draft a job description clearly encompassing details from all of the above – including all elements of the employee value proposition
Establish a clear selection process – with interviewers and interview questions, assessments, screening strategies, etc.
Prepare for negotiations as needed – and budgeting for a specific salary range
Clarify a timeline – both for the benefit of the team and the candidate

You know what to do more than anyone. Let’s make this a good 2022!

The Hiring Pulse: Methodology

The majority of the data is sourced from small and medium businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

The post Your Hiring Pulse report for January 2022 appeared first on Recruiting Resources: How to Recruit and Hire Better.

Your Hiring Pulse report for December 2021

Keith MacKenzie — Tue, 14 Dec 2021 14:46:38 +0000

So, we’re addressing your top concern of filling the roles you need to fill, and filling them quickly. Minimizing turnover is, of course, a grave concern as well.

We know that data benchmarks are important to you when recruiting in the SMB world. If you’re finding X number of candidates applying to your open roles, is that normal in your area? If you’re taking Y days from job posted to job filled, is that something others are experiencing as well, or is that something you need to improve? And so on.

To help you, we’re taking a fresh approach to hiring data to support you when you analyze your own numbers.

How we’re looking at data

‘Normal’ doesn’t really exist anymore, even if it is a ‘new normal’. Looking at the data YoY or even MoM is a flawed study because of the regular fluctuations in the data over short periods of time. So, instead, we’re looking at rolling trends. This means we’re showing data as a percentage increase or decrease when compared with the rolling average of the past three months. Jump to the end for a detailed methodology on this.

As always, we look at the worldwide trends for three common SMB hiring metrics:

Time to Fill (TTF)
Total Job Openings
Candidates per Hire (CPH)

And we dive deeper by looking at the data in selected job functions to see how the data differs in each. Now, let’s start crunching away!

Main highlights

The three main highlights for December’s Hiring Pulse are:

Time to Fill is still dropping steadily
Job opens are negatively trending for the first time in awhile
Candidate availability is once again trending sharply downwards after a modest recovery the month previous

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important that we understand this distinction with this graph updated to September: if a job is opened in October or even as early as March, but isn’t filled until November, it won’t count in this graph’s dataset. If another job is opened on the same day in July or March but is filled on the last day of October, it does count in this graph.

While this measurement strategy partially explains the downward trend in recent months, we’re going to sidestep that for now, and see how the trend in the latest data compares with last month’s and see how they compare.

So, let’s start with a look at the new graph updated to October:

What we see here for the Time to Fill trend is -26.4% for October compared with the previous three-month average. That’s compared with -29.6% in the last month trend of the same chart from November – suggesting that TTF is slightly longer this time around.

But is that really indicating anything? Probably not. Numbers have a habit of jumping and falling, like the stock market. What we want to point to, instead, is the consistent nosedive in the TTF trend – last month, it was four consecutive months of negative trends, and now it’s five straight months where the latest TTF data is shorter than the previous three-month average.

Employers are continuing to hire faster than before, with only two of the last 10 months showing TTF on a positive trend, and even where the trend turns positive, it’s barely at all – just 1% in April and .9% in May.

Last month, we went into a thing about how this is a good thing for employers because they’re succeeding in finding and hiring the right candidates for their open roles – and doing so quicker than before.

But you know what? We’ve also heard anecdotes from businesses that they’re just plugging holes quickly in an attempt to stem the increasing flow of quits (watch for an article on that soon). Perhaps it’s not that employers are finding the right candidates quicker than before – it’s more that they’re just grabbing anyone who walks in the door and saying, “You’ll do. Can you start on Monday?”

We also pointed out last month that candidates are moaning about the long recruitment process. This may be the answer to their grievance. But if employers are just trying to fill job holes with “good-enough” candidates, that may lead to a poorer employee experience all around as newly hired employees realize they’re not a good fit for the role or company after all – a consequence of not putting enough thought or care into the employee selection process.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

So, let’s look at the raw job open numbers – which aren’t contingent on open/close dates, so we can include November in this chart:

Look at that. A negative trend of -2% for the month of November, the first time since December 2020 that we see a negative trend in job openings. It’s not much, but it does indicate something when it’s more than a six-point drop from September’s 4.4% and October’s 4.1% trends.

Questions abound: perhaps employers have hit the ceiling in terms of how many jobs can be opened. Then again, the Great Quit / Big Resignation / Huge Whatever remains at unprecedented levels – at least according to the US Department of Labor (DOL) up to the end of October.

Is this -2% trend in the Workable network in November a prediction of lower job quit rates according to DOL once they release their own numbers in January? We’ve found that the trends for DOL and Workable network data do align throughout the year, so the answer is very potentially yes.

We won’t know for sure until January, but it’s worth keeping an eye on.

3. Candidates per Hire

Workable defines the number of candidates per hire (CPH) as, succinctly, the number of applicants for a job up to the point of that job being filled.

Let’s look at what’s going on here through October:

(NOTE: Again, as in the TTF chart, you’re probably wondering why we stopped the numbers in September. Again, as stated above, that’s because these data are based on the time the job was opened, not when it was filled.)

Last month, we pointed to what we called “modest recovery” in the September CPH trend from a 2021 low of -16.6% in August.

But that’s changed significantly in October, which shows a staggering 26% drop in CPH compared with the previous three-month average. All that blather last month about CPH not trending downwards as much as before is now obsolete. This -26% metric marks a brand-new low for all of 2021 – and even 2020 for that matter.

Maybe candidates really are at a premium after all.

What’s going on here?

Last month, we shared the explanation that candidates are more deliberate in their applications than before. They’re no longer throwing applications at the wall to see what sticks. There’s a wealth of opportunities for candidates and greater emphasis on a job that’s more suited to their priorities. So, they’re more selective in applying for openings.

SHRM points to the shifting supply and demand of the job market as a factor, as well as extended benefits going into September that gives them this luxury. But we maintain that, even in a ‘normal’ job market, candidates are feeling more emboldened in landing the perfect job they want. They’d rather go without a job than take on a ‘meh’ job that doesn’t do much more than pay the bills, and they’re willing to tough it out to get there.

And that insight of this month’s Hiring Pulse challenges you, the SMB employer, to rise up and meet those increased expectations of the jobseeker. Grabbing the first candidates as they walk in the door because “they’ll do, if they can start on Monday” may come back to bite you later.

If you want great candidates for your roles and you want them to stay with you, they are out there and they’re as interested in finding the perfect long-term arrangement as you are. With Time to Fill shorter than it’s been in a long while, it may be that you invest your time and resources into recruitment marketing and employee value proposition even before opening the job, if you want those superstars on your team.

4. Job function metrics

Of course, a business is not one single ecosystem. Different things happen in different departments and functions when the economy ebbs and flows, leading to different outcomes in the data even within the same organization.
So, with that in mind, we wanted to look at eight main functions in a business, some or all of which an SMB employer can relate to:

Accounting/Auditing
Administrative
Customer Service
Engineering
Human Resources
Information Technology
Marketing
Sales

And obviously because of the pandemic times, we decided to add the health-care provider function to the mix, just to see what that looks like against some of the others.

Time to Fill

First, let’s have a look at Time to Fill:

The obvious and predictable insight here is just how volatile the health care provider metric is. It’s an absolute roller-coaster of a trend, even in the latter half of 2021. It’s clear that with the volatility of COVID and all its variant offshoots, the need for health care jumps and falls.

As for the other functions, the TTF trend for IT is the lowest for October with a downward drop of -35.8% – and it’s also the fastest-plummeting trend across all functions in this chart (with August at -9.9% and September at -21.2%. IT workers are plentiful – and their skill set usually standardized, leading to quicker evaluation and a faster hire for an IT opening.

On the flip side, accounting / auditing sees the downward trend in TTF slowing down over the past three months (-26.6% in August, -21.9% in September, and -20.6% in October. Could it be that because we’re nearing the end of the fiscal year for many companies – therefore a sudden need for more number crunchers? The increased competition means accountants are being snapped up, leaving to unlucky employers taking longer to find fiscal talent.

Total Job Openings

Now, the job openings across these functions:

We’re seeing positive job open trends across all functions – with the most dramatic jump in Customer Service from -19% in October to 17.8% in November (perhaps due to increased shopping for holiday season?). Health care also spikes again from 1.7% in October to 27% in November.

But we really want to point out the consistent increase in the job open trend in Human Resources at 27% in November (from 1.4% in August, 8.3% in September, and 17.2% in October).

Why? The developments of 2020 and 2021 have also trickled into companies, with an increased awareness of DEI, emphasis on salary and benefits, remote work trends, increased compliance considerations, and higher turnover – much of this falls on HR’s shoulders.

So, it makes sense that employers would add to the HR payroll – and for SMB employers to make their first hire in HR earlier in their business tenure than previously.

Candidates per Hire

Finally, let’s look at Candidates per Hire across these functions:

The big change in CPH is, again, in the health care provider function, with a staggering 50% decline in the average number of candidates per job in October compared with the three previous months. Perhaps health care workers – bless ’em – are burning out and shifting their priorities in terms of work. Perhaps it means the function has stabilized and that there isn’t as much movement – or hiring – as there was before, meaning fewer candidates out there in the job market.

But then again, we know that job opens for health care providers is on the rise. That suggests that it’s more about the burnout and change in priorities than it is about stabilization. They’re leaving, but they’re not moving to other roles in health care.

Meanwhile, we also see an equally sharp decline in the CPH trend for those in accounting / auditing, from 41.4% in August to 24.5% in September to -11.9% in October. Above, we mentioned the increased demand for fiscal wizards as year-end budgeting looms; that may be the factor.

Those in marketing are also at a premium – going from .9% in August to -21.7% in September to -36.1% in October. Businesses recover and grow, meaning increased marketing spend, meaning more marketers are being hired? Perhaps; lots to talk about there as well.

Conclusion

We’ve mentioned in a previous Hiring Pulse that the onset of Delta would rock the hiring world. While it didn’t have the impact that March 2020 did, it did shift a few things. Now we have Omicron – but it’s still early to gauge what, if any, influence that will have right now. One thing we know: it’s normally flu season at this time, and COVID had a marked impact last year starting at this time, and people are bracing for a sequel.

We are also approaching the end of the year. As we delve into increased holidays for many workers and businesses, and therefore slowdown in processes and logistics combined with torrid consumer activity during the traditional holiday season. It’s also a fiscal crunch time for businesses who are thinking about plans for 2022 and doing a postmortem of 2021.

That spirit of a postmortem and thinking carefully about plans and strategy for 2021 also involves futureproofing. That’s what C-suiters and executives do – they look to maximize potential and minimize risk for as long a period as possible. Snap decisions will not do, even as businesses do look to be nimbler and more agile than ever before.

This mindset must also apply to recruitment in the SMB space. You can’t afford to make snap hires every time because, as stated above, it’ll come back to bite you in terms of turnover and workforce disillusion. It’s worse during tumultuous times. You need to build a stable ship – a strong, well-thought-out strategy that’s prepared for shifts and bumps in the road ahead.

When hiring, think like a strategist:

refine your recruitment marketing
standardize your hiring
pre-plan your processes before you even open a job
and establish a solid reporting system to help you identify areas for improvement.

Do all that – and more – and you’ll find that this “Big Quit” may not be something to worry about in the long run.

The Hiring Pulse: Methodology

The majority of the data is sourced from small and medium businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

The post Your Hiring Pulse report for December 2021 appeared first on Recruiting Resources: How to Recruit and Hire Better.

Your Hiring Pulse report for November 2021

Keith MacKenzie — Sun, 14 Nov 2021 14:03:01 +0000

But what you really want to know is: what does this mean for your hiring? As an SMB, you just want to fill the roles you need to fill, and fast (good news on that, by the way – read on).

We know that data trends are important to you when recruiting in the SMB world. You and your hiring team want to know whether the trends you’re seeing in your own processes are ‘normal’. Because there’s no real ‘normal’ anymore, we’re moving away from traditional year-over-year and month-over-month data analysis and instead taking a fresh approach so you can make the most informed decisions as an SMB employer when assessing your own data.

How we’re looking at data

Remember, we’re looking at trends here. This means we’re showing data as a percentage increase or decrease when compared with the average of the three months previous. Jump to the end for a detailed methodology of how we’re doing this.

As always, we look at the worldwide trends for three common SMB hiring metrics:

Time to Fill (TTF)
Total Job Openings
Candidates per Hire (CPH)

And we dive deeper by looking at the data in five broad regions to see how the data differs in each. Now, let’s get into the numbers.

Main highlights

The three main highlights for this month’s Hiring Pulse are:

Time to Fill is still dropping sharply despite SMB employers saying they’re having problems finding candidates
Job openings are continuing to rise going into Q4 – as predicted in a recent Manpower report
SMBs in Latin America are having a strikingly different experience than the four other major economic regions when it comes to hiring

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important that we understand this distinction with this graph updated to September: if a job is opened in July but isn’t filled until October, it won’t count in this graph’s dataset. If another job is opened on the same day in July but is filled on the last day of September, it does count in this graph.

That *might* explain some of the downward trend in recent months, especially for jobs opened and filled within September – but it’s still not the only factor.

Let’s look at the trend graph for overall Time to Fill up to and including the month of September.

Note the dramatically negative TTF trend in August 2021 (a -19.2% shift compared with the May-June-July average – followed by an even more substantial drop of -29.6% in September 2021 compared with the June-July-August average.

That’s interesting, isn’t it? Just when you think it’s going to bottom out, this metric just keeps trending further downwards. TTF has been negatively trending for four months in a row going back to June – and seven of the last nine months. Employers are hiring faster and faster now.

Good news? Sure, let’s look at it that way. There are two reasons why it could be good:

First, and perhaps obviously, employers are succeeding in finding – and hiring – the right candidates for their open roles, at a torrid pace. That does contrast with the popular and legitimate narrative that businesses are having a hard time finding people, though. That deserves a more in-depth discussion elsewhere, so let’s set it aside for now.

Second, one of the biggest candidate gripes – on Reddit, for instance – is what they see as an excessively long recruitment process. So… the shorter TTF can be seen as good for candidates as well.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

Let’s look at job openings overall, bearing in mind that these are raw job open numbers that aren’t contingent on open/close dates. So, we can include October in this chart.

Last month, we pointed out the modest uptick in job opening trends in September 2021. We’re seeing the same for October 2021, with another 4% increase, after a 4.4% growth in job opening trends in September.

Some insight to add to that: In the United States, we’ve just seen a huge upturn in payroll for October that beat previous expectations by a good margin – with the unemployment rate at a new low since the start of the pandemic. And quit rates were still surging as of September – we won’t see quit data for October from the US Department of Labor until a bit later. But more likely, the trend of the last two months is simply skewed by August’s 2.4% trend, the lowest of any month in 2021.

Still, it’s clear: while there’s reason for optimism, this all shows considerable volatility in the job market. Not what SMB employers want to see, honestly. They’d rather hire the right people and have them stick around.

3. Candidates per Hire

Workable defines the number of candidates per hire (CPH) as, succinctly, the number of applicants for a job up to the point of that job being filled. Let’s look at what’s going on in the numbers through September:

Last month, we pointed to the sharp drop in the CPH trend – but there’s modest recovery in that area. September 2021’s the drop in CPH actually slowed down from a 2021 low of -19.8% to -15.5%.

Regardless, CPH is still trending downwards – just not nearly as much as before.

What’s going on here?

So, this begs the question: if job openings are surging and CPH continues to trend downwards, how is it that Time to Fill is growing shorter all the time? There’s one potential explanation:

Candidates are more deliberate in their applications. Perhaps we’re no longer seeing hundreds of applications thrown around like confetti, leading to recruiters’ inboxes being overfilled with irrelevant resumes.

Instead, we’re seeing jobseekers being more targeted in their job hunt as we see a greater tendency to pursue the things that really matter as a result of the pandemic. Also, it’s a candidate’s market, so they can be more precise and pursue the job they really want rather than going the route of “any job will do”.

And, in turn, they’re probably highly motivated – and even more qualified – for those jobs.

So, SMB employers benefit: they’re getting more concentrated pools of better qualified applicants for their open jobs – so hiring becomes a quicker process from job opened to job filled.

4. Regional metrics

Of course, the world is not one single economic entity. Different things happen in different areas, ultimately leading to different outcomes in recruitment data.

So, let’s look at things at a very high level, looking at the above metrics for five broad regions:

Asia-Pacific (APAC)
Europe-Middle East-Africa (EMEA)
Latin America (LATAM)
North America (NA)
UK & Ireland (UK&I)

Time to Fill

First, let’s have a look at Time to Fill:

This one’s interesting – we see a lot of differences across regions especially in March 2020, during the last quarter of 2020, and the first part of 2021, all coinciding with massive spikes in COVID cases for each of the time periods in different areas.

Correlation doesn’t mean causation, of course. Instead, it’s just interesting how the numbers start to “reconcile” during Q2 and Q3 of 2021.

There’s one significant outlier though: the Latin America group, which has a much less pronounced drop in Time to Fill (-17.7%) than the other four regions (-29% to -31.4%). Keep that in mind as we move to the next metric.

Total Job Openings

Now, the job openings across these five regions:

Of course, COVID was felt worldwide, as plainly obvious in the drop in job opens during March-April 2020. That aside, while the trends look similar across all five regions from afar, there are notables to point out here.

First, after a sudden drop in job opens in August 2021 (-13%), EMEA is seeing a positive trend of job opens over the last two months (7% and 16.1%).

Second, UK & Ireland saw significant upward trend in job opens in September 2021 (16.5%) before leveling out at 0.1% for October.

And finally, Latin America is the only one of the five regions seeing a negative trend in job openings, with a -5.3% drop in October, standing in stark contrast to the other four regions.

Candidates per Hire

Finally, let’s look at Candidates per Hire across the five regions.

Unlike the other two metrics which saw more closely aligned trends across regions, this one is more dramatically scattered with job quits, layoffs, business closures, strikes, and other factors differing significantly as the pandemic continues its waves throughout the world.

For instance, UK & Ireland saw consistently negative trends in every single month dating back to August 2020 – with the tiny exception of December 2020 where it nosed above the surface to .8% before going under again.

Meanwhile, businesses in North America also saw negative trends in every month dating back to the summer of 2020 with spikes in CPH trends in December 2020 (8.7%) and January 2021 (2.1%).

EMEA, meanwhile, jumped a bit in March 2021 (4.8%) and July 2021 (.6%), but otherwise saw regular drops in its CPH metric as well. APAC spiked in December 2020, April 2021, and July 2021 – likely due to seasonality – but otherwise stayed in the negatives.

Latin America, again, stands out – where the other four regions stayed negative, LATAM businesses saw a sharp 6.5% increase in the CPH trend compared with the previous three-month average, the only one of the five to see a positive upward trend in that metric.

Does this mean more people are looking for work there and not finding enough? Perhaps – especially with dismal news out of Brazil, LATAM’s largest economy, of a faltering economic landscape and predictions of a recession in 2022.

Conclusion

Last month, we predicted that once reliable data for September became available, we would see it as a catalytic month as a result of children returning to school, a shortage of childcare workers in the U.S., and potential economic fallout coming from the Delta variant.

We didn’t see the fallout from Delta – the opposite, in fact, since Delta was already on the wane – but there are still fears of a resurgence of the virus due to winter seasonality, waning immunity levels among the vaccinated, and overall increased mobility according to the Institute for Health Metrics and Evaluation (IHME) in Washington.

That being said, the TTF metric is decreasing, job opens are on the rise – and we’re seeing a modest slowdown in CPH’s decline. Does that last metric mean people are starting to look for work again after quitting en masse during the Great Resignation? Maybe, maybe not. Regardless, SMB employers are still very worried.

One thing’s clear – different regions see different trends that impact hiring. That’s worth keeping in mind, especially if you’re an international employer or you’re hiring globally.

And no matter where you are, it’s always worth thinking about your ideal candidate profile, fine-tuning your recruitment marketing strategy, and really targeting those candidates so you can stay ahead of the trends.

The Hiring Pulse: Methodology

The majority of the data is sourced from small and medium businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

The post Your Hiring Pulse report for November 2021 appeared first on Recruiting Resources: How to Recruit and Hire Better.

Your Hiring Pulse report for October 2021

Keith MacKenzie — Tue, 05 Oct 2021 21:24:01 +0000

More specific to you: we know that data trends are important to you when recruiting in the SMB world. You and your hiring team want to know whether the trends you’re seeing in your own processes are ‘normal’. Because we’re not even sure what ‘normal’ is anymore, we’re moving away from year-over-year and month-over-month data because those don’t make sense.

So, we’re taking a fresh approach so you can make the most informed decisions as an SMB employer when assessing your own data.

How we’re looking at data

Remember, we’re looking at trends, not hard numbers. This means we’re showing data as a percentage increase or decrease based on the three trailing months. Jump to the end for a detailed methodology of how we’re doing this.

As always, we look at the worldwide trends for three common SMB hiring metrics:

Time to Fill (TTF)
Total Job Openings
Candidates per Hire (CPH)

And we’re making it more interesting by looking at the data in three specific industries to see how they differ in each.

Main highlights

The three main highlights for this month’s Hiring Pulse are:

Time to Fill is continuing to drop overall
Candidates per job are also continuing to drop overall
Real Estate recruitment data is far more pronounced than overall data, especially in jobs opened and candidates per hire

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled.

Let’s look at the trend graph for overall Time to Fill …

… and then look at the same graph for the September edition of the Hiring Pulse. You’ll see that the numbers are slightly different across all months – that’s because the data only counts when a job is filled.

It’s important that we understand this distinction: if a job is opened in July but isn’t filled until September, it won’t show up in this graph. If another job is opened on the same day in July but is filled in August, it’ll show up here – which will partially explain the downward trend in TTF numbers in recent months.

But, that being said, in September’s Hiring Pulse, the last month recorded (July 2021) shows a negative TTF trend of -17.9% compared with the trailing three-month average. Here, the last month recorded (August 2021) shows an even more negative trend of -28.4%.

Both include the same variables described in the previous paragraph, so something’s happening here. Time to Fill is steadily dropping overall.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

Let’s look at job openings overall, bearing in mind that because these are raw job open numbers, we can include September in this chart.

Note: September is the start of the traditional hiring season as we come out of summer, when post-secondary graduates enter the job market, kids return to school enabling parents to start working, and so on and so forth. Of course, the pandemic throws a particular wrench into this as we see in the data in 2020.

But this time, there’s a gentle uptick in job openings in September 2021 – a 4.1% increase in job openings compared with the average of the three previous months. Healthier economy? Fresh hiring season? Spike in backfills due to the Great Resignation? You decide.

3. Candidates per Hire

Workable defines the number of candidates per hire as, succinctly, the number of applicants for a job up to the point of that job being filled. Let’s look at what’s going on in the numbers through August:

(NOTE: Again, you’re probably wondering why we stopped the numbers in August. Again, as stated above, that’s because these data are based on the time the job was opened, not when it was filled.)

When you compare with the same graph from September’s Hiring Pulse, you’ll see a little bump in July – because more candidates will show up on the doorstep of a job going into July for a job opened in June. That’ll update the numbers in this new graph a bit.

But as in the Time to FIll chart, the downward trend is sharper in the latest month’s data. Fewer candidates are showing up per job than before.

4. Industry metrics

Now, let’s look at all of the above across three specific industries that are considerably impacted by the pandemic, whether positively or negatively:

Software as a Service (SaaS)
Retail
Real Estate

Software as a Service (SaaS)

First, let’s look at SaaS. In the early days of the pandemic, digital transformation was fast-tracked by many organizations as teams moved to remote operations and online work. This necessitated new tech for organizations to survive and thrive – especially as emphasized by Deloitte in April 2021 – and concurrently, opened huge windows of opportunity for existing and new SaaS organizations to innovate and grow. Consider the “digital nomad” wave in Europe as described by the Economist, and you have it in a nutshell.

Time to Fill – SaaS

What does all that look like in Workable’s network data? Let’s take a look at Time to Fill:

Clearly, there’s a pandemic marker where TTF numbers shortened in the early days of COVID-19, likely as SaaS companies found it easier to fill roles quickly due to a fresh influx of recently laid-off candidates in the market (see graph below). TTF then sped up throughout 2020 until it started to drop in Q4 2020, and sped up again from the start of 2021 to end of August.

Job Openings & Candidates per Hire – SaaS

Now, let’s look at total job openings and CPH for the SaaS sector:

Pretty dramatic stuff here. Job openings plummeted at the start of the pandemic as SaaS and other SMBs reduced or froze hiring – and laid off employees – as they shifted to survival mode.

Then in June 2020 onwards, job openings surged and candidates per hire dropped measurably through to Q4 2020 likely in response to steady and increased DX needs, where SaaSers hired at a torrid pace to further develop their tech to meet that demand. Finally, the numbers start to stabilize at the end of 2020 before seeing another surge in the first three months of 2021.

As we pass through mid-2021, we’re still seeing a moderately positive trend in job openings – yet a sharp downward trend in CPH during the same time period with the exception of near-zero change in July 2021 compared with the trailing three-month average.

Retail

The second area we’re looking at is Retail, specifically because it’s one of the hardest-hit sectors when it comes to job quit rates in the United States according to the US Bureau of Labor Statistics. According to JOLTS, it’s second only to Accommodation & Food Services with a quit rate of 4.4 – meaning, 4.4% of total employment for the month of July.

Time to Fill – Retail

What does TTF for Retail look like in Workable’s network data? Let’s take a look:

Very erratic graph here that can be explained by two things: Retail TTF remained relatively stable from one month to the next throughout this period, making any shift of more than several days a dramatic one when we look at it as a trend compared with previous months.

Secondly, the retail sector is hit hard by the pandemic – as stated in another Deloitte report: “Retail orthodoxies will be challenged, and the industry will likely look much different than when we entered this crisis.” It’s a destabilized time for retail, and that’ll ultimately show in hiring data.

Job Openings & Candidates per Hire – Retail

Now, let’s look at the job opens and CPH for retail:

No surprise here. As consumerism took a dive in early 2020 and people stopped going out and spending their money, retail outlets suffered and many shut down – as in SaaS, we see a surge of candidates who had flooded the market as a result. After enduring a particularly tough COVID-19 winter in the United States and Europe, cases dropped significantly across the board and we see a surge in job openings to the end of Q1 2021 as retailers started opening up again.

Moving through Q3 2021, we see job opening trends continue at a positive rate. CPH numbers continue to trend downwards however – despite an uptick in July – likely as a reflection of the Great Resignation.

Real Estate

And finally, we take a look at Real Estate. Home prices and home sales are just going through the roof since the onset of the pandemic – we can surmise on the “why” of it, but let’s focus on the recruitment metrics here. When there’s much more activity in this sector, there’ll be more employment opportunities, right?

Time to Fill – Real Estate

So, let’s look at Time to Fill for the Real Estate sector:

Real estate sales are often seasonal – they rise in the summer months and cool down when the weather gets colder. Pandemic aside, we see this in the TTF metrics – less urgency is put on real estate hires at the end of 2020 and start of 2021.

As real estate heated at a torrid pace through March/April/May 2021, TTF dropped significantly, valleying in May with a 26.8% drop in time to fill compared with the three previous months. Don’t let that spike in July 2021 fool you – it’s still a negative trend of -3%, meaning TTF is still shortening every month even after dropping so dramatically in Q2.

Job Openings & Candidates per Hire – Real Estate

Now, let’s look at the job opens and CPH:

Now what’s very interesting here is that the numbers here for retail feel like a fun-house mirror version of the overall data. Overall, June, July and August show a positive trend for job openings with 6.8%, 6.7%, and 2.4% per month respectively, compared with -0.8%, 9.5%, and 18.4% in the real estate sector.

We see similarly dramatic differences in CPH data: overall, June, July, and August show a negative trend of -12.7%, -9.6%, and -27.3% per month respectively, compared with a much more negative trend of -34.1%, -44.7%, and -31.3% for the same three months in real estate.

That is a huge downward trend right there. One might suggest that this is partly a consequence of the Great Resignation, but JOLTS data places real estate only in the middle of the list of sectors when it comes to job quit rates.

Maybe it’s just an organic shift in career choices. Perhaps there’s skittishness about real estate in that the bubble might eventually burst – and so, job applicants are applying for jobs that have more assurance of longevity and security.

Conclusion

Something to think about: in recruitment metrics, September will prove to be a catalytic month. Reuters reported at the start of September that U.S. childcare workers are in short supply – which would have a domino effect on workers, especially mothers, who must make concessions in their working schedule to accommodate their younger children.

Combine that with uncertainty around Delta – and whatever new variant may be around the corner – and we still have a lot of uncertainty.

Yet, we don’t have all the data in front of us as the calculations for Time to Fill and Candidates per Hire data are not complete for more recent jobs – when a job takes a month or two to fill, we’ll be in November before we have reliable numbers to look at for September. Our Hiring Pulse comes out on the first Tuesday of every month – we’ll have something for you then.

The Hiring Pulse: Methodology

The majority of the data is sourced from small and medium businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

The post Your Hiring Pulse report for October 2021 appeared first on Recruiting Resources: How to Recruit and Hire Better.

Your Hiring Pulse report for May 2022

Keith MacKenzie — Thu, 12 May 2022 13:03:40 +0000

This month, we’d like to keep this short and succinct, with the takeaway that times are ever-changing and we need to be like water – in other words, shape-shifting, adapting, etc. – to remain relevant, to paraphrase Bruce Lee’s famous quote.

Yes, this applies to businesses as well. Let’s get on with it.

How we’re looking at data

First – and we explain this every month to be sure that it’s understood – looking at data gives us an opportunity to look at benchmarks in the hiring landscape. But when the benchmark regularly changes during this ‘Never Normal’ time, it becomes an unreliable gauge.

So, it’s no longer helpful to look at the data YoY or even MoM. Rolling trends make more sense because then you’re comparing data with what’s happening in recent months. Consequently, for the Hiring Pulse, we are looking at percentage increase or decrease compared with the rolling average of the three trailing months. Jump to the end for a more detailed methodology on this.

As always, we look at the worldwide trends for three common SMB hiring metrics:

Time to Fill (TTF)
Total Job Openings
Candidates per Hire (CPH)

Let’s start analyzing!

Main highlights

The three main highlights for this month’s Hiring Pulse are:

Q1 was busy, very busy – and that’s to be expected
April shows a much sharper drop in job openings than previous Aprils
The candidates per hire trend isn’t dropping as sharply as before

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important to understand that definition: if a job is opened in October or even as early as April last year, but isn’t filled until April, it won’t count in this graph. If another job is opened on the same day in July or September but is filled on March 31, it does count in this graph.

So, we’re looking at the TTF trends only up to the end of March. Got that? Good. Now that we have the full data for Q1 2022, let’s have a look:

And then let’s compare that to what the data looks like for Q4 2021. It’s worth pointing out that December 2021 self-adjusted from -5.2% last month to -0.8% this month, which means jobs got filled en masse in March to push that TTF metric a little higher for December this time around. Also worth noting is how November 2021 also changed sharply – from 1.8% last month to a much higher 7% this month.

That’s two months of significant recalibrations towards the end of the year – indicating that TTF is actually growing as jobs opened in November and December get filled and we get a more complete picture of those latter months of 2021.

What else is happening? To gain perspective, let’s first look at last month’s Hiring Pulse report: in that report, the TTF trend for December 2021, January 2022 and February 2022 (the last three months being analyzed) were -5.2%, -22.8%, and -29.2% respectively. But this time, the last three months (the Q1 2022 months) trended at -16.6%, -19.2%, and -27.4%.

Now let’s look at another huge difference between the reports for last month and this month – the trend of the third-most recent month being analyzed here. In April’s Hiring Pulse, the third-most recent month is December 2021, which shows a -5.2% TTF trend.

This month, the third-most recent month is January 2022, which shows a -16.6% TTF trend.

That’s -5.2% versus -16.6%. Pretty huge difference.

This means that jobs opened in that third-most recent month are more likely to be filled well before the end of the most recent month now compared with last month. Why? Because the absolute maximum TTF possible for a job opened in the third-most recent month would be roughly 90 days (or three months).

Concurrently, jobs opened in December 2021 were likely being filled towards the end of February in last month’s report, whereas jobs opened in January 2022 were more likely being filled well before the end of March in this month’s report.

It’s a clear indication that jobs were getting filled rather quickly throughout Q1 of this year.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

So, let’s look at the raw job open numbers – which aren’t contingent on job open/close dates like TTF and Candidates per Hire, so we can include April 2022 in this chart:

Yowch. Now things have come down pretty sharply after that intensely busy first quarter for hiring teams. We expected that, to be honest, after a similar thing happened last year with a sharp drop from March to April.

But what’s different is that, this time, the job opening trend actually went negative, from 20.4% in March to -1% in April. Compare that to a sizzling 42.9% in March 2021 down to 17.9% in April 2021. This means job openings went *down* this April, rather than simply slowing down as seen last April.

And consider that while Q1 2022 (17.1%, 14.3%, 20.4%) was a busy quarter for hiring, it’s still nothing compared to what Q1 2021 looked like (22.3%, 25.3%, 42.9%).

We can go back further. April 2020 is not worth considering because that was a very special time in our history, so let’s just skip the year altogether and go back to April 2019. Know what it is? 6.5%. It’s down from Q1 2019, but it’s still a positive trend.

So, a negative trend for April this year after not-nearly-as-high numbers for the first quarter of 2022 is an eye-opener.

Two things to think about here – the first quarter of any year is normally a very busy year for hiring. But 2021 was extra special in that it was not only a normally busy time, but also a time of significant recovery after a disastrous 2020 for many businesses. Not to get into too much politicking, but it’s entirely possible that optimism around the incoming Biden administration at the time may have fueled businesses looking to jump ahead on what they anticipated to be a very busy – and hopefully, flourishing – 2021.

This year, however, things are different. We came out of Omicron in roughly OK shape, all things considered. And despite a recent uptick in new infections, it feels like things are starting to return to relative normalcy.

But then, two other things happened: inflation and war. Those are always going to be hard on businesses and workers. Inflation makes it harder for businesses to meet bottom lines since things cost more even in wholesale. And we’re seeing a massive ripple effect from the invasion of Ukraine, rattling economies worldwide.

Not to go too much into detail about any of that but, honestly, a negative job opening trend for April is interesting. This CNN article emphasizes that as well in its US jobs update for April: it says plenty of jobs are being added, and we’re closer than ever to what the job numbers were before pandemic hell hit, but there are predictions of a slowdown throughout the rest of 2022.

3. Candidates per Hire

Workable defines the number of candidates per hire (CPH) as, succinctly, the number of applicants for a job up to the point of that job being filled.

Let’s look at what’s going on here through March:

(NOTE: Again, as in the TTF chart, you’re probably wondering why we stopped the numbers in March. Again, as stated above, that’s because these data are based on the time the job was opened, not when it was filled.)

Last month, we pointed out how the January trend recalibrated from -18.6% in the March report to 11.3% in the April report. And the same thing is happening in February now, going from -16.1% in the April report to -8% in this month’s report.

But much more worth noting is the stabilization of CPH across the three Q1 months: -10.1% in January, -8% in February, and -13.9% in March.

Compare that with the last three months in last month’s report: -2.5% in December, -11.3% in January, and -16.1% in February – a pretty sharp decline in the trend with each month. We aren’t seeing the same kind of dramatic drop in the CPH trend this time around. Rather, it’s relatively stable month over month.

It should make sense that more jobs being opened would mean fewer candidates per job, because candidates get saturated across jobs. But that’s not happening here – even with the very high job numbers, the CPH trend is still declining but not nearly so dramatically.

Conclusion

Last month, we went into depth on how things are stabilizing in the business world and that’s reflected in the hiring trends. But the biggest eye opener is how April’s job opening trend is lower than it was for previous Aprils in our dataset. And it’s not just a slowdown – it’s an actual negative trend.

And we mentioned above the CNN report and predictions of a slowdown. Here’s the succinct quote from Daniel Zhao, senior economist at Glassdoor: “We’re in for a slower 2022.”

We’ve talked a *lot* in these reports about the importance of agility and nimbleness in business operations. That reality doesn’t change – and as a matter of fact, that’s the stability a business needs to aspire to regardless of trends in the business bottom line or in the surrounding economy.

We have been through a lot as a society. The pandemic and all its waves and surges. The devastating impacts in the early part of the pandemic, followed by a sudden resurgence and recovery. The social upheaval and activism that carry on to this day. The great resignation, with unprecedented quit rates every month exceeding four million for many months on end. Inflation – and yes, salary growth. And now, war – ugh, another war. It’s been quite a couple of years.

A widely regarded quote from noted investment advisor Robert D. Arnott applies here: “The most treasured asset in investment management is a steady hand at the tiller.” Keep that steady hand when you’re running a business – including in the hiring process – and adjust accordingly. We’re having to adjust accordingly at a clip unlike any in recent times, and we should be experts at it by now. As Bruce Lee suggested, be like water.

The Hiring Pulse: Methodology

The majority of the data is sourced from small and medium businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

The post Your Hiring Pulse report for May 2022 appeared first on Recruiting Resources: How to Recruit and Hire Better.

Your Hiring Pulse report for August 2023

Keith MacKenzie — Tue, 08 Aug 2023 13:22:42 +0000

In July’s Hiring Pulse, we highlighted the staggering increase in the number of candidates per job opening – and it really is very high. This month, we look at relatively similar metrics, but we also try to draw some new context around it all.

Let’s have a look.

How we’re looking at data

As always, we look at the worldwide trends for three common SMB hiring metrics:

Time to Fill (TTF)
Total Job Openings (JO)
Candidates per Hire (CPH)

Let’s start analyzing!

Main highlights

The three main highlights for this month’s Hiring Pulse are:

Job activity is taking a bit of a dip – one half job less on average per company in July compared with June
Candidates per Hire is still at a very, very high level
Time to Fill is more stable than it normally is over a longer period

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important to understand that definition: jobs that are still open as of the end of June are not included in this graph as they don’t yet have an “end date”. Only the jobs that are filled are included here.

Quick clarification, because people are asking: the data in this chart shows the trendline against the 2019 average as an index of 100, not the actual number of days in TTF.

Got that? Good. Let’s have a look at the monthly TTF trend through to the end of July against the average of 2019, based on jobs that have been filled:

We want to have a story here, but there’s not much to tell. Ultimately, July’s TTF trend sits at 82.6, which basically marks the fifth consecutive month of relative stability where it hits 84.3 at its highest point and 81.2 at its lowest point.

But you deserve an insight here, so here’s one: looking at last year, we see the same trend where the TTF trend hovered between a high of 93.2 and a low of 90.8 over an eight-month stretch from February to September 2022 before finally dropping to the higher 80s for the rest of the year.

These two time brackets are actually the most stable the TTF trend has been in our dataset dating back to the start of 2020 – apart from a few three-month stretches here and there, it’s been a regularly undulating trend month-to-month over the past three and a half years.

Let’s move on to Job Openings now.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

The big takeaway this time is the drop in job activity from June to July this year, where average job postings across all companies fell from 7.6 to 7.1. At first glance, this may not mean much considering the regular ups and downs in job postings over the last few years, but what makes it significant is when we look at the June-July shifts in previous years.

As it happens, 2019 and 2020 saw nice bumps in job postings in the Workable network – increasing 0.5 in 2019 and 0.6 in 2020 from June to July. In 2021 and 2022, there was literally zero change from June to July in the trend – the average remained absolutely stable.

So, in this context, we now see how a drop of half a job in the job opening average from one month to the next is significant at this point in the year. And we see this happening across the board regardless of the company size bucket.

Now, let’s look at the Candidates per Hire trend.

3. Candidates per Hire

Workable defines the number of candidates per hire (CPH) as, succinctly, the number of applicants for a job up to the point of that job being filled. Again, remember, this is a trendline using the 2019 CPH average as a baseline of 100, not the actual number of candidates per hire.

Now that Let’s look at what’s going on here through July:

The Candidates per Hire trend has been a focal point of the last few months because of how much it’s increased since January.

While not an increase this time – and actually a decrease from June’s all-time high of 176.6 – July’s 169.2 is still right up there in the rarefied atmosphere as the second-highest monthly trend in the history of Workable’s network data.

Except it’s starting to feel like it’s not such a rare place to be – and rather, it’s normal. When you have the last four months (158.5, 140.3, and now 176.6 and 169.2) standing so much higher than anything preceding it, then you have to wonder: will this trend continue as is? Will it keep trending up? Will it fall back down to a previous baseline?

The problem we have here is that, unlike in the other two metrics we regularly track in the Hiring Pulse, we have nothing in the past to compare this recent surge in Candidates per Hire. Let’s call it what it is: a surge. Let’s watch this space and see if we can answer the questions above.

What’s going on here?

Job openings are taking a bit of a dip. Candidates per hire are also taking a very, very small dip but still at a remarkably high point. In last month’s Hiring Pulse, we noted how both job openings and CPH were on the rise and that this indicated a crazy busy time in the hiring landscape – especially for small businesses with low-bandwidth hiring teams.

Now, it’s still busy. The job openings may be taking a small dip, but companies who announce a new opening in their company will still get inundated with candidates. Consider this: let’s say you got 100 candidates for a job opening at your company at this time last year. Now, for that same job, you’d get 178 candidates according to our data.

That, right there, is the biggest difference and that’s the way it’s been going for months. We’ve bounced all kinds of hypotheses around on this topic, and we’ll bring in a new one: remember the Great Resignation? Quit rates are still relatively high – but they’ve come down quite a bit from the times when we saw more than four million job quits per month in the United States for 19 successive months from June 2021 to December 2022.

In the six months on record in 2023, it’s gone above four million just once, in May – although it did come close in February with 3.98 million quits.

For June 2023, that number has dipped to 3.772 million quits – the lowest it’s been since March 2021.

Now, our theory: when candidate numbers were coming down and quits going up, no one was able to come to a clear consensus on where these people were going if they weren’t going to new jobs. We’ve speculated in the past that they either moved to freelance and contract work, started their own businesses, took on sabbaticals, or something else that wasn’t readily trackable.

It’s possible that those workers who dropped out are returning (or trying to return) to the full-time fold. They’ve tried out the life of Riley and either decided it was time to return or it just didn’t work out the way they hoped it would. Couple that with the increase in layoffs, and you have an abundance of new candidates applying to open roles.

That’s your food for thought for August. See you next month!

The Hiring Pulse: Methodology

Because one of the three metrics (Job Openings) is different from the other two metrics (Time to Fill and Candidates per Hire), we’re adopting two very distinct methodologies.

And we chose 2019 as the baseline because, frankly, that’s the last normal year before the pandemic started to present challenges to data analysis among other things.

The majority of the data is sourced from businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

The post Your Hiring Pulse report for August 2023 appeared first on Recruiting Resources: How to Recruit and Hire Better.

Your Hiring Pulse report for July 2024

Alexandros Pantelakis — Tue, 09 Jul 2024 19:07:52 +0000

Our previous edition highlighted a tightening job market, with fewer available openings and more candidates vying for each position than usual. Economic factors like layoffs are driving more extensive job searches, increasing competition.

In this edition of Hiring Pulse, we will explore these topics in depth, providing insights into the market dynamics observed throughout June.

Let’s begin.

How we’re looking at data

Want a more detailed methodology? Jump to the end and check it out.

As always, we look at the worldwide trends for three common SMB hiring metrics:

Time to Fill (TTF)

Total Job Openings (JO)

Candidates per Hire (CPH)

Let’s start analyzing!

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important to understand that definition: jobs that are still open as of the end of June are not included in this graph as they don’t yet have an “end date”. Only the jobs that are filled are included here.

Quick clarification: the data in this chart shows the trendline against the 2019 average as an index of 100, not the actual number of days in TTF.

Let’s have a look at the monthly TTF trend through to the end of June against the average of 2019, based on jobs that have been filled:

While June 2024 maintains a prominent place with 84.2, which is higher than some previous months, it still reflects an ongoing trend of relative efficiency in hiring processes compared to earlier years.

Across the dataset, a discernible pattern emerges with mid-year months often showcasing lower time indices compared to earlier and later months. This trend suggests a potential seasonal influence or strategic adjustments in hiring practices during these periods.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

As usual, examining the four company size categories – 1-50, 51-200, 200+, and the overall average – reveals interesting insights.

Small Businesses (1-50 FTEs): From June 2023 to June 2024, there’s a slight decrease from 6.5 to 6.1 job openings. While still robust, this decrease might indicate a stabilization or a slight cooling off in hiring intentions compared to the previous year.

Medium Businesses (51-200 FTEs): June 2024 shows a consistent trend with 6.2 job openings, maintaining a stable demand for new hires compared to June 2023 (5.6), suggesting sustained growth or replacement hiring within this sector.

Enterprises (200+ FTEs): There’s a noticeable decline in job openings from June 2023 (17.1) to June 2024 (15.3) among large enterprises. This reduction might reflect a strategic adjustment in hiring plans or a shift in focus towards optimizing existing workforce structures rather than aggressive expansion.

You might be curious about how all of this compares to previous years, especially since we’ve covered it in the last couple of our editions.

Note: this is calculated a little differently. For the sake of direct comparison, we’re using January of each year as our baseline index of 100.

As we move into 2024, we appear to be returning to typical patterns, and the decrease you’ve noted is likely due to seasonal fluctuations.

Let’s move on to our next metric: Candidate per Hire

3. Candidates per Hire

Workable defines the number of candidates per hire (CPH) as, succinctly, the number of applicants for a job up to the point of that job being filled. Again, remember, this is a trendline using the 2019 CPH average as a baseline of 100, not the actual number of candidates per hire.

Let’s look at what’s going on here through June:

Can you recall our previous edition? We’ll say that again. Candidates are actively seeking new opportunities and this summer isn’t an exception.

April and May showed a stable increase, with 175.2 candidates per hire and now we see a small decrease to 171 candidates per job.

Since we’re conducting year-over-year comparisons in this report, let’s apply that to CPH as well.

Up until now we thought that this year deviates from the trend of previous year, but look at the graph. The spike in June 2023 was really huge. Although the percentage of increase is different between then and now, we see that the final number is pretty much stable.

More specifically, June 2024 saw a slight decrease to 171.0 candidates per hire from the previous year’s peak. This indicates some stabilization after the sharp rise in 2023, but the number remains significantly higher than the years prior to 2023.

This could suggest a continued high level of competition in the job market.

Companies may still be facing challenges in finding the right fit for roles, requiring more extensive candidate pools.

What’s going on here?

The Hiring Pulse report for July 2024 reveals a job market marked by efficiency and strategic adjustments.

Companies are filling positions relatively quickly. This trend of lower TTF indices during mid-year months suggests that businesses may be employing seasonal hiring strategies or making adjustments to streamline their recruitment processes.

Despite economic challenges and layoffs, companies have managed to maintain an efficient hiring process, potentially leveraging technological advancements and refined recruitment strategies.

Small businesses have seen a slight decrease in job openings, indicating a potential stabilization or cooling off in hiring intentions. Medium-sized businesses maintain stable hiring demand, reflecting sustained growth or replacement hiring.

However, large enterprises show a significant decline in job openings, suggesting a strategic shift towards optimizing their existing workforce rather than aggressive expansion.

Coupled with a high number of candidates per hire, which remains significantly above pre-2023 levels, the data indicates a highly competitive job market. Companies are likely facing challenges in finding the right candidates, requiring them to sift through larger pools of applicants.

See you next month!

The Hiring Pulse: Methodology

Because one of the three metrics (Job Openings) is different from the other two metrics (Time to Fill and Candidates per Hire), we’re adopting two very distinct methodologies.

And we chose 2019 as the baseline because, frankly, that’s the last normal year before the pandemic started to present challenges to data analysis among other things.

The majority of the data is sourced from businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

The post Your Hiring Pulse report for July 2024 appeared first on Recruiting Resources: How to Recruit and Hire Better.

Exploring the future of jobs and the positive impact of AI

Alexandros Pantelakis — Tue, 16 Jul 2024 12:39:00 +0000

The impact of artificial intelligence (AI) on the job market is the talk of every corporate discussion. The AI job replacement scenario is real in the minds of job seekers and recruiters alike. This conundrum is more complex than it seems. But, do you really believe it is easy to wipe out the value brought by human capital in any organization?

According to the World Economic Forum, there will be no job shortage in the future, even with AI. Their discussion is focused on the disproportionate amount of new jobs created in the world. In fact, organizations can harness the power of AI and human intelligence to strike a balance.

Will AI replace jobs? This question is not pertinent in the current or future job markets. The right question to ask is – Will AI bring value? The clear answer is yes!

How does AI fit into the changing work dynamics?

Automation is the superpower of artificial intelligence. Organizations leverage it to automate mundane repetitive tasks, requiring minimal human intervention.

Does this mean AI will take over jobs? No. It simply means AI will take over jobs with repetitive tasks, enabling the human resource to be employed in more valuable tasks. It requires the reskilling of human capital to sharpen their creative bend and match the pace of technological development.

The U.S. job market supports this narrative. According to Statista, 25% of Americans, aged between 30 to 44 years, believe AI will create more jobs in the future rather than artificial intelligence replacing human intelligence. Check out 10 new jobs created with AI in the workplace.

The hiring managers’ perspective

From a business perspective, AI is a great tool to boost productivity. Businesses are looking at a more measured picture by exploring the idea of AI implementation in their operations. Based on IBM’s analysis, around 77% of organizations have either implemented or are in the process of including AI in their operations. They know its direct implication on workforce displacement and the panic amongst workers. Their immediate action is to join the reskilling revolution to upskill their workforce for valuable administrative work. They are also aware that employees are asking questions like – Will AI replace humans? So, they are leaving no stone unturned to maintain the positive mindset of their human talent.

Recruiters’ strategies to counter the AI-job loss narrative

New technology and jobs

The AI revolution paints a picture of a highly advanced world with new jobs and opportunities. According to Forbes, potential new jobs will be created to manage artificial intelligence, including AI integration specialists, AI compliance managers, VR experience designers, and AI application developers. So, artificial intelligence will not replace jobs. It will require human resources with all-new skill sets.

Skill assessment

We all know how workplace evolution takes place every few decades. To be honest, it is not a new phenomenon. It means organizations will use a skill-assessment mechanism to hire workers. The majority of businesses are using AI candidate sourcing and AI recruiting to hire the right candidate with the perfect job fit.

Talent development

Talent development is a focus area of the majority of organizations. They are aware of the fear in the job market about the uncertainties brought by AI. The World Economic Forum states that around 1.1 billion job transformations will happen in the next decade. Here, “transformation” is the operative word. Many businesses are providing on-the-job training and learning opportunities for talent development. Moreover, they are hopeful about the changes in government policies to empower employees with learning opportunities and funding.

The employees’ perspective

The workers’ perspective on AI job replacement is clearly divided. The latest survey by Statista suggests that different age groups, ranging from 18 to 65 years responded differently on the subject. While some are hopeful about the future of the job market, others are fearful.

Another survey suggests that 3 out of 4 people use AI at work to ease their tasks and fulfill work commitments. Both surveys may seem contradicting at first but if you observe keenly, transformation is already happening!

Employees’ strategies to counter the AI-job loss narrative

Upskill and reskill

Don’t you feel skills are the strongest assets of our species? We believe they save us from the uncertainties in life like no other asset can. The job market is no different. Every few decades, there is a lateral shift that requires extra effort to change the pace. The employees have gauged the reality and are already upskilling and reskilling. Many see it as an opportunity to prove their value in the organization. Online certifications, executive courses, and training programs are registering a record number of people. It shows the commitment to stay ahead of the curve.

Command a premium wage

With upskilling and reskilling, talents know their improved worth at the workplace. Will AI replace humans? This speculative concern is not on their radar. They know the changing work dynamic and the power of accepting the change. It has given them a new outlook towards the job market. New talents are looking for opportunities that match their potential. Also, employees with skills and certifications are getting acknowledgement from the management with perks, rewards, and awards.

The bright side: a future with AI at the workplace

The future of the job market suggests not to fear the change but to embrace it. It opens the door to opportunities to get better-paying jobs. The preconceived notion that AI and humans have similar qualities and abilities is misaligned. In all honesty, the nuances make it interesting by bringing intuition, emotional intelligence, and sensitivity to the workplace.

The post Exploring the future of jobs and the positive impact of AI appeared first on Recruiting Resources: How to Recruit and Hire Better.

AI in finance could free up at least four hours per week

Alexandros Pantelakis — Fri, 12 Jul 2024 12:14:20 +0000

“Businesses, big and small, struggle with limited resources and time. Automation allows them to reduce the time spent on manual processes.” Laurent stated at the beginning of our discussion.

This transformation is impactful for finance teams, who often bear a heavy burden of time-consuming, repetitive tasks. Laurent’s research quantifies this burden:

“Finance teams in SMBs often spend significant hours each week chasing down documents and invoice approvals–at least 4 hours per week for the majority of finance professionals, according to a recent Yooz survey, with nearly a quarter of respondents spending 7 or more hours per week on this task.

“Automation can cut down this time drastically, allowing teams to focus on strategic planning and decision-making.”

These statistics highlight the potential for a significant shift in how finance professionals spend their time. By automating these routine tasks, finance teams can redirect their efforts towards more strategic, value-added activities.

The analytical capabilities of AI also promise to revolutionize financial decision-making. As Laurent notes:

“AI algorithms can analyze large data sets, providing insights and predictions that enhance decision-making processes in just minutes.”

This rapid analysis can provide finance teams with deeper insights, enabling more informed and timely financial strategies.

The strategic impact of AI in finance

While efficiency gains are impressive, Laurent points out that the benefits of automation extend far beyond mere time savings:

“Automation allows SMBs to grow sustainably and manage larger volumes of work with the same or even fewer resources.”

“As businesses grow, the volume of tasks increases. Automation provides the scalability needed to handle increased workloads without proportional increases in operational costs. This allows SMBs to grow sustainably and manage larger volumes of work with the same or even fewer resources.”

This scalability is crucial for finance departments, allowing them to handle increasing complexity and volume of financial data without a proportional increase in team size.

Accuracy is another critical benefit. Laurent emphasizes:

“Automation also improves accuracy by minimizing human intervention which reduces the likelihood of errors and enhances the accuracy of operations. This is especially beneficial in functions like finance, where timely and accurate data is crucial for decision-making and compliance.”

In finance, where precision is paramount, this improvement in accuracy can significantly reduce risks and enhance overall operational reliability.

Unlocking strategic potential in finance teams

Perhaps most excitingly, Laurent Charpentier shared insights into how automation can unlock strategic potential:

“We found that 77% of finance professionals report feeling that their potential to contribute strategically to business outcomes is significantly hindered by a lack of acknowledgment of the extensive operational pressures they face daily.

“When asked about potential resolutions, automation was highlighted as critical, with 88% of finance teams emphasizing its importance for strategic engagement.”

These statistics underscore a crucial point: automation isn’t just about doing things faster or more accurately – it’s about elevating the role of finance professionals within the organization.

By freeing up time and mental energy, automation allows finance teams to focus on more strategic, value-added work.

Laurent’s vision for the future of finance is clear:

“It’s encouraging to see automation amplified with artificial intelligence, resulting in improved productivity without the need for additional headcount.”

“It’s encouraging to see automation amplified with artificial intelligence, resulting in improved productivity without the need for additional headcount, which is particularly advantageous for SMBs operating with tight budgets.”

This perspective challenges finance departments to think creatively about how they can drive organizational growth and success through technological leverage.

Security considerations in financial automation

Laurent also highlights the importance of security in this new landscape:

“I think it’s also important for businesses to consider the security benefits and risks of AI tools. On one hand, AI-powered fraud is on the rise. However, AI is one of the most powerful tools to combat it.

“Businesses can fight fire with fire by utilizing AI-enabled systems for anomaly detection, vendor risk assessment, advanced data analysis and predictive analytics, natural language processing (NLP), and more, to repel AI-powered attacks.”

This insight underscores the dual nature of AI in finance – while it presents new security challenges, it also offers powerful tools for protecting financial data and processes.

The human element in automated finance

Finally, Laurent emphasizes the enduring importance of human expertise in finance:

“Automation should augment job functions, not replace human workers.”

“Automation should augment job functions, not replace human workers. I believe automation unlocks the strategic potential of finance teams, enabling them to operate at a higher, more valuable level.

“This shift allows teams to concentrate on business innovation and long-term planning rather than getting bogged down by repetitive, manual tasks. Humans are indispensable, and automation should be a powerful tool in their arsenal to enhance their roles and deliver greater value.”

This perspective highlights that the goal of automation in finance is not to replace humans, but to empower finance professionals to achieve more.

What does this mean for HR Professionals

As finance roles evolve, HR professionals will need to adapt their recruitment, training, and development strategies.

The focus may shift towards hiring finance professionals with strong analytical and strategic skills, capable of leveraging AI tools effectively.

Additionally, HR teams may need to facilitate upskilling programs to help existing finance staff transition into more strategic roles.

As we witness this revolution in finance, it’s clear that AI and automation are not just changing processes – they’re reshaping the very nature of financial work.

By maximizing the use of these technologies, finance teams can elevate their role, providing more strategic value to their organizations and driving business success in new and exciting ways.

The post AI in finance could free up at least four hours per week appeared first on Recruiting Resources: How to Recruit and Hire Better.

The role of AI in talent acquisition: a study for recruiters

Alexandros Pantelakis — Thu, 11 Jul 2024 12:08:37 +0000

Are you trying to find the right candidate for a critical role at your organization? Well, posting the job description on multiple online portals is not the only thing that needs to be done.

The process involves a lot more, such as screening all the applications, shortlisting the best-suited candidates, arranging their interviews with concerned departments, etc.

At times, this can get overwhelming for recruiters, taking up a lot of their valuable time and resources.

What if we tell you that AI can be a solution to this age-old problem?

Artificial intelligence is the new buzzword, which is slowly changing the entire business landscape. More and more businesses are leveraging the power of technology to streamline their operations.

According to the McKinsey Global Survey 2024, 65% of organizations are using artificial intelligence and deriving great business value from it. A lot of them are utilizing AI to transform their hiring process and reduce the workload of the recruitment team.

Workable’s AI in Hiring Survey further explains how artificial intelligence is becoming the future of talent acquisition. Thus, it wouldn’t be an overstatement that AI-powered recruitment is a trend, which is here to stay!

Artificial intelligence: an overview

Artificial intelligence is a form of technology in which software can replicate human thought processes to perform certain tasks.

These tasks can include everything from language translation to problem-solving, visual perception to decision-making. In present times, every human being is using artificial intelligence in one way or another.

Role of AI in talent acquisition

Nowadays, talent acquisition is not limited to filling roles. It is also about building a strong and functional team for an organization. But this can turn into a challenge, especially when you have limited time and resources.

This is when the concept of artificial intelligence comes into the picture, offering a revolutionary approach to talent acquisition.

An efficient AI-based tool can handle a variety of tasks:

Job advertising
Candidate sourcing
Applicant screening
Shortlisting candidates
Skill assessment
Scheduling interviews
Onboarding

Also read: Grow your talent pool with AI

Key benefits

In the current scenario, the increasing importance of AI in job recruitment cannot be ignored. There are several ways in which artificial intelligence can make things easier for organizations and their recruitment teams.

Here are a few key benefits of using AI in HR recruitment:

Improved hire quality: Screening all applications you receive for a job position is undoubtedly the most complicated part of the hiring process. It not only requires a great amount of time and effort but there is also a chance of accidentally losing a high-potential candidate. Since AI-based tools use a specific set of algorithms, they can sift through the mountain of resumes in minutes. Only candidates with a profile matching a certain job role get shortlisted, improving the overall hire quality.
Time and effort saving: By using AI in the recruitment process, you can automate several tedious tasks like candidate sourcing, CV screening, etc. This can expedite the hiring process and save a significant amount of effort.
Bias mitigation: In the manual recruitment process, there is always a chance of unconscious bias based on gender, age, and more. According to research, 48% of HR managers admit that bias affects the candidates they choose to hire. AI-powered recruitment tools purely focus on an individual’s skill set. Hence, there are fewer chances of any kind of bias in decision-making.

Also read: How to use AI for human touch in recruitment

There is no denying that the use of AI in recruitment is reshaping the future of talent acquisition. By leveraging technology, recruiters can find the right talent while saving a significant amount of time and effort.

Are you also a talent acquisition leader, struggling to streamline your administrative tasks? If yes, harness the power of artificial intelligence and say goodbye to the time-consuming, manual hiring process.

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Freelancers on the rise: adapting HR strategies for the new era

Alexandros Pantelakis — Thu, 04 Jul 2024 13:04:00 +0000

The statistics are clear: freelancing is on an upward trajectory. As HR professionals, you need to pay attention to these numbers.

Shannon shared a striking finding from McKinsey’s American Opportunity Survey that finds that 36% of employed US workers identify as independent workers (up from 27% in 2016).

This surge isn’t just impressive – it’s a call to action for HR departments everywhere. You need to rethink your talent strategies and workforce planning.

But it’s not just independent studies highlighting this trend. Shannon’s own company, Wripple, has uncovered similar patterns.

Wripple’s 2024 TeamUp report highlighted the strategic significance and growth trajectory of the freelance workforce in corporate America. Shannon comments:

“Many companies are seeking to modernize their workforce standards and practices and 92% of them indicated that they plan to increase their use of freelancers in 2024 and beyond.”

What does this mean for the HR pros? We’re looking at a future where flexible work arrangements are the norm, not the exception. It’s time to start preparing for this shift.

Economic uncertainty: The freelance catalyst

Economic downturns often spark workplace innovation. The recent uncertainties have accelerated the freelance trend. Shannon confirmed this observation:

“The increasing use of freelancers is a macro-trend that was certainly accelerated by recent economic uncertainty.”

As HR professionals, you are often tasked with balancing budget constraints and staffing needs. Freelancers offer a solution. Shannon explains:

“Engaging freelancers for short or medium-term work assignments gives companies the ultimate in financial flexibility. Companies only pay for the work they want and need to get done and no additional employee salaries are added to the books.”

Shannon has noticed that many consumer-driven sectors such as banking, travel and consumer electronics “recently turn to freelancing in lieu of hiring full-time employees.”

The appeal of freelancing: a two-way street

Understanding why professionals choose freelancing is key to your talent acquisition and retention strategies. Shannon identifies the primary draw:

“The primary driver to turn to freelancing is certainly career flexibility – being able to work (a) when you want to and (b) on the specific types of job assignments that are interesting or desirable to you.”

But freelancing isn’t for everyone. Shannon points out:

“To be a successful freelancer, you need to be an expert at something because companies want proven results and they are increasingly looking for specialists who can work efficiently.”

Shannon suggests that freelancers need to have “at least 5+ years of work experience and have mastered at least one craft or skill. And freelancers often need financial security to feel comfortable with a non-salaried, sometimes unpredictable income. Therefore, individuals in a dual-income family or those in the mid to late stages of their career are often the ones that turn to freelancing.”

The freelance economy isn’t just changing how we hire – it’s changing how we think about careers altogether.

Adapting HR strategies for the freelance era

As HR professionals, you are at the forefront of this workplace revolution. Our strategies need to evolve quickly to keep pace. Shannon shared some insights on how companies are adapting:

“Companies are adapting their talent acquisition and management strategies in several key areas.”

He outlined four main areas of focus:

Focus on flexible hiring: Streamlining processes and using freelance platforms for quick on-boarding.
Creating talent pools: Building a network of go-to freelancers for recurring projects.
Adding tech: Using project management tools and AI for better freelancer-project matches.
Policy updates: Adapting payment terms and work policies to suit freelance contracts.

These changes aren’t just surface-level tweaks. They represent a fundamental shift in how we approach talent management.

But with change comes challenges. Shannon highlighted a crucial point:

“Ensuring the engagement of freelancers is handled with the same level of professionalism as full-time employees.”

This ‘professionalism gap’ is something we in HR need to address head-on. How do we ensure freelancers feel as valued and integrated as full-time staff? It’s a question that requires innovative solutions.

Other challenges he noticed are:

Consistency: Ensuring quality and reliability from freelancers. Note: freelance platforms can help with this
Cultural fit: Integrating freelancers into the company’s culture and brand

Technology: the freelance enabler

It’s a fact. We’ve seen technology transform this field time and again. The freelance economy is no exception. Shannon emphasized the role of emerging technologies:

“Certainly, emerging technologies are already having a tremendous impact on the world of freelance work.”

He pointed out three key areas:

Freelance marketplaces and talent platforms. Advanced algorithms and AI help match freelancers with the most suitable projects based on skills, experience, and preferences. They also offer resources, forums, and support services to help freelancers succeed and grow their businesses.
Generative AI. AI is certainly impacting how freelancers work. Increasingly, all freelancers must have a set of ‘go to’ AI tools that they utilize every single day to get their work down more efficiently with higher quality.
Virtual and Augmented Reality (VR/AR). VR/AR technologies offer immersive virtual meeting experiences, enabling more effective remote collaboration and interaction. VR/AR can create realistic training environments for freelancers, helping them acquire new skills and improve existing ones in a hands-on, engaging manner.

As HR professionals, you need to stay ahead of these technological curves. Shannon noted:

“Increasingly, all freelancers must have a set of ‘go to’ AI tools that they utilize every single day to get their work down more efficiently with higher quality.”

Shaping the future of work

Looking ahead, it’s clear that the freelance economy will continue to grow. As HR professionals, you’re not just observers of this trend – you’re active participants in shaping it.

Shannon’s insights have highlighted the opportunities and challenges ahead. But it’s up to us to turn these insights into action. We need to:

Rethink our talent acquisition strategies
Develop new approaches to workforce integration
Update our policies to accommodate flexible work arrangements
Embrace technology as a tool for managing a diverse workforce

The future of work is flexible, technology-driven, and increasingly freelance. As HR professionals, it’s your job to ensure that this future works for everyone – freelancers, full-time employees, and companies alike.

By staying informed, adaptable, and proactive, you can turn the freelance revolution into an opportunity for growth and innovation in your organizations.

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What HR hills would you die on?

Suzanne Lucas — Mon, 08 Jul 2024 13:26:00 +0000

Just spell it out. Dress codes don’t mean suits and ties. They can also mean no obscene messages on t-shirts and everyone must keep the three Bs covered. (Boobs, butts, and bellies.)

Would I fight over this? You bet. Would I drop a client because they refused to implement a dress code. No. Would I laugh hysterically when they come to me and say, “Jane just showed up with the F word plastered across her chest. Do something.”?

Yes, yes, I would. Because I told you something like this would happen.

I asked HR people (and others) what their HR hills were and if you’re wondering what your HR department is going to focus on this year, this list is a good place to start.

Fair pay

Executive Recruiter Kristina Angel: “I’m passionate about paying internal candidates a fair promotion based on the position they are in. I could never understand why you would limit them to a strict percentage when you would pay much more for an outside candidate to do the same role. Yes, perhaps the outside candidate offers more experience, but the internal also has an edge with their knowledge of processes, culture and have less of a learning curve in other ways.”

CEO of Wage and Hour of LA, Shannon Coleman-Cryer: “I would like to see salaries posted with job postings! I think this will allow applicants both external and internal to know WTH they will be receiving if they apply for said position. Just my two cents… You know I want to talk about exemptions but since I’ve already (kind of) mastered this task, I will leave it alone today .”

Both Angel and Coleman-Cryer advocate for fair pay for employees, whether they are new external hires or internal transfers/promotions. You’ll find salary fairness will keep you out of lawsuits and increases your applicant pool. LinkedIn found that 91 percent of applicants consider the salary range when applying.

No surprises

Senior Consultant in Leadership, Adam Peterson: “No one should be surprised when they are fired. We’ve made the compliance policies clear and given warnings when they are possible.

“In my corporate days, I saw two fairly random enforcements of policies just to find a way to get rid of someone or make an example that we are serious about that procurement policy.

“Don’t short cut the dismissal process. It undermines the culture for everyone else that still works there!”

Recruiter Elliot Echlov: “There should be no surprises (other than positive ones) when conducting formal performance reviews. If you as the manager are waiting until you *have* to document a performance concern to actually do it, then you are failing to do your duty as a manager of people.”

On the surface these seem like two very different HR hills, but they really are the same one: communicate with your employees – especially negative things. Employees deserve the benefit of knowing where they stand at all times. These leaders want to make sure employees know what they’ve done wrong and how they can improve, long before you show them the door.

Showing compassion

Product Manager Kara H: “Bereavement leave should not be limited to specific employer-defined nuclear family relationships; the allowed relationships tend to disregard the myriad types of non-traditional family structures. The result is a kick while they are down to an employee who has just lost the most important person in their life and learns the bereavement policy doesn’t cover it.”

Accessibility program innovation and strategy architect Sheri Byrne-Haber: “I will die on the ‘all accommodations should be centralized’ hill. Otherwise they are determined at the whims of managers and departmental budgets which leads to inconsistencies and unfair decisions, discriminating against the people with disabilities that need them.”

While these two people are not HR employees, they’ve both selected hills that generally fall under HR policies and both focus on compassion.

Bereavement leaves are typically ridiculously short–can you really handle the paperwork for a deceased child or spouse in three days, let alone grieve – and also do not recognize that was all wish to be there with friends or distant relatives that wouldn’t be covered by policies.

And with disability accommodation, leaving the accommodations up to individual managers is a recipe for trouble. Understanding disability law and accommodations is complex and consistency is more likely to lead to fair, compassionate, and legal outcomes.

If your HR people start focusing on these types of issues–listen, they aren’t going to back down easily and it will make your business much better.

What about you? What are your HR hills you would die on?

The post What HR hills would you die on? appeared first on Recruiting Resources: How to Recruit and Hire Better.

Creating a better work-life balance for blue collar workers

Alexandros Pantelakis — Wed, 03 Jul 2024 14:39:17 +0000

Part of the problem is that blue-collar labor often entails long hours and physical demands. In my experience, however, blue-collar employers can make a few key changes that empower their employees to balance their work with their personal lives, which leads to improved job satisfaction and retention rates.

The Surge in demand for blue-collar workers

Let’s start with the good news: blue-collar businesses and their workers are in greater demand than ever before.

Due to the Bipartisan Infrastructure Law, our nation has invested in major infrastructure projects that develop everything from new roads, bridges, and railways to whole airport terminals and ports.

These transformational undertakings have created a historically high number of new jobs in blue-collar industries like construction, manufacturing, and transportation.

As the White House explains, “The economy has added 670,000 jobs in construction since… January 2021—an average of 20,000 jobs per month… Employment in the construction sector has exceeded the pre-Great Recession high for the first time, with [October 2023] setting a new record high going back to the start of the data in 1939.”

The upshot is that there’s a lot of opportunity in the blue-collar sector today.

Now for the bad news: despite offering good jobs with high wages, many employers are still struggling to find the talent they need. Even if they do manage to find and recruit new workers, they can have difficulty keeping them.

Why? In my experience, many companies in the blue-collar sector continue to enforce policies that might have worked when a single income was enough to support a family, but these policies no longer meet the needs of today’s workers.

Today’s employees prioritize work-life balance

Society has changed, while many blue-collar businesses have not. Today’s employees — no matter their gender, race, or background — prioritize their ability to balance work with their personal lives.

According to a recently released study by Randstad, the world’s largest employment agency, workers rated being able to strike a healthy work-life balance as just as important as pay. Roughly 57% of respondents said they would not take a job that would negatively impact their work-life balance, such as one that doesn’t offer flexible scheduling.

Indeed, flexibility has become a major priority for employees of all kinds, including those in blue-collar jobs. Another Randstad study from 2023 found that 42% of blue-collar employees consider flexibility to be more important than their salary.

A high rate of respondents — almost two out of five — reported that they wouldn’t have any trouble doing their jobs and completing their tasks on a flexible schedule, but also said that their employers were resisting this possibility.

A surprising number of participants — 30% — even said they had quit a previous job because of the lack of flexibility it had afforded them.

Flexible scheduling initiatives can help blue-collar businesses improve their employees’ work-life harmony and retain their valuable team members.

How blue-collar businesses can offer flexibility

Just because something has always been done a certain way doesn’t mean that’s the best way to do it.

Even blue-collar businesses that cherish a long tradition of working in a certain way can adjust their processes and procedures to support employees’ well-being.

Even blue-collar businesses that cherish a long tradition of working in a certain way can adjust their processes and procedures to support employees’ well-being.

So, what kind of flexible scheduling can blue-collar employers consider?

First of all, if two workers want to trade shifts, employers could create procedures that enable them to do this as quickly and easily as possible. Is it really necessary for them to gain manager approval, for instance?

As long as the two shifts are being covered, the work is getting done, and everyone understands what’s going on, requiring paperwork and approval may just add unnecessary tasks to people’s plates.

It may also be possible to offer shifts of variable lengths so that employees might work longer on one day and take off earlier on another.

It might not matter if one person works 10 hours on Wednesdays and takes off two hours early on Thursdays, especially if another team member works two hours less on Wednesdays and two hours more on Thursdays.

As long as the teams are fully staffed as needed to accomplish the work on time, different workers’ hours could be combined like puzzle pieces in order to meet individuals’ needs and preferences.

This flexibility would be invaluable for parents who need to pick kids up from soccer practice on a certain day every week. Workers who don’t have caretaking responsibilities would also likely appreciate this option since it could enable them to spend time doing the hobbies and activities they enjoy during the regular work week.

For some roles, employers might be able to offer flexibility about the exact time employees begin and end work each day.

If the employee can work independently, there is usually less need for them to report for duty according to a rigid, unchangeable schedule.

Even employees who are necessary for group tasks may be able to find ways to shuffle the workaround to accommodate someone who needs to leave the site at a certain time.

Remember that, as a business leader or manager, you don’t need to come up with all the solutions on your own — just ask your team members how policies might be able to become more flexible without undue disruption to the project. They will probably be able to give you a lot of ideas.

Flexibility equals employee productivity and loyalty

The current state of the job market opens up the possibility of revising company policies and improving employees’ well-being.

Studies show that when employees feel happier about their jobs, they are more productive and loyal to their employers.

For these reasons alone, blue-collar businesses should take a hard look at their policies and consider the possibility of change.

— Jason Lamonica, COO of Spec on the Job, brings more than 15 years of experience to blue-collar staffing and leadership. He ensures stability and growth for these service lines with a focus on operational excellence within three key areas: evidence-based best practice programs, well-trained and appropriate staffing of people, and developing key partnerships with clients.

The post Creating a better work-life balance for blue collar workers appeared first on Recruiting Resources: How to Recruit and Hire Better.

How to write job descriptions

Rob Long — Mon, 08 Sep 2014 11:07:49 +0000

Job descriptions could and should sweep candidates off their feet. But all too often we’re content to lean on the old-fashioned and generic with the result that most job ads are mediocre. We’re guessing you don’t want to be average. You’re not one of those guys looking for superheroes who is too lazy to write job descriptions that might actually attract them.

PRO TIP: The first time we came across Medium’s careers page was in Lou Hoffman’s article: The best job descriptions on the planet. Enough said.

Read on for more tips or download the complete startup hiring guide eBook for free.

Love at first sight

We all know that applicants like to scan. They want to look at an opening and be able to recognize in the blink of an eye if it’s their dream job. Like all busy people they have a thousand things competing for their attention; especially the passive candidates for whom you’re trawling. Make every job description seductive. Start with the job title, keeping in mind that most job boards work like search engines, therefore candidates use keywords to search for jobs.

The about-the-company part

This is your chance to make a good first impression, so start thinking about the distinctive characteristics that make your company special. The type of job description you publish is closely related to who you are as an employer. Give them a glimpse of your company that will charm them into coming to working for you.

PRO TIP: Check out Vend. We couldn’t even choose what our favorite job description was. We loved them all.

Candidates need to be able to relate to job descriptions on a personal level. Tell them a story about your company that will make them sit back and picture themselves working with you. Start with an educated guess, with something simple, ask for feedback and then optimise. Ask employees why they enjoy working for your startup. If you have a marketing department lean on them for some content marketing advice. Hiring should not to be done in isolation. You’ll need to put in some extra effort but it will pay off.

The about-the-job part

You know that if you go with the flow then your job descriptions will be deathly dull but you’re tempted to do so anyway. Because that’s the way everybody is doing it. But it won’t help your company stand out – it will just add to the mountain of identical job descriptions that grows larger every day.

PRO TIP: Mundane jobs must make for boring job descriptions. Wrong. This is epic

How are job seekers (let alone the precious, passive ones) supposed to spot that you’re offering a dream gig when it looks like a machine wrote your job description? It’s not necessarily because they’re not well-written, it’s because they’re presented as if they were not written by or for a human being. Do everyone a favour and stick to the important stuff. There are tons of job descriptions out there listing every tiny little task a future employee might perform. That’s not the point.

It’s all about clarity

Start writing job descriptions that build businesses. They will attract the best talent and convert prospects into candidates. How?

• Sell your company and their future in it in an engaging fashion

• Get rid of the boring corporate tone

• Keep it chatty and friendly

• Use words that evoke feelings

• Make them aspire and then act on that desire

• Use you or we; drop the passive voice

To up the ante you can also add a list of people the future hire will get to work with on a regular basis.

The about-the-requirements part

We’ve covered the basics in our “There’s a difference between what you want and what you need” blog post. If you’ve used Workable you may have noticed the must-haves and nice-to-haves requirements. Why did we add this feature? To make sure that candidates won’t get excluded from the hiring process just because they clicked “NO” on a secondary skill that is unlikely to be pivotal. Think about what skills would make sense, adding to the equation the fact that they are individuals and not miracle workers. Must-have requirements are the bare minimum: the can’t-live-without list. Nice-to-have requirements are the extras: they belong on the we- can-live-without list.

PRO TIP: Worth looking at KinHR. They might not have a careers page at the moment but this sales job description rocks.

Each week we’ll be showcasing a new chapter from the hiring guide every startup should read. Can’t wait that long?
Download your free copy of the complete eBook

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MCS utilizes HR technology to search for excellent talents

Alexandros Pantelakis — Fri, 28 Jun 2024 13:47:58 +0000

MCS is a managerial and organizational consulting company that has been collaborating with client companies since 1977 to create tailor-made projects for the Human Resources area.

We specialize in Human Capital, Talent Development, and Talent Acquisition, and as the only Italian partner of Talentor International, we provide daily support to organizations, both in Italy and abroad, looking to enrich their human resources with talents possessing specific and deeply rooted skills.

We know well that executive search requires particular commitment, sometimes lengthy processes, and real challenges in finding the ideal talent.

Therefore, we take on this responsibility, dedicating hours to reviewing resumes and conducting interviews, often facing the difficulty of engaging even those talents who are not actively seeking employment.

In this regard, Workable has proven to be an excellent tool for us to simplify this process, allowing us to precisely identify candidates suitable for the specific needs of client companies, engaging both actively job-seeking talents and so-called passive candidates.

Reason why we shared our working methodology with Workable also with our international Partner during the Talentor Research Round Table.

Our unique methods and processes for attracting excellent talents

Our distinctive approach in the consulting and recruiting sector is based on a combination of innovative processes and unique methods that enable us to attract and select talent with specific and deeply rooted skills. Here are some key elements of which we are particularly proud:

In-depth competence analysis: We use advanced assessment tools to analyze candidates’ skills in detail. This allows us to identify not only technical skills but also, and especially, the soft skills that are essential for success in the specific role.
Artificial intelligence technologies: We implement AI algorithms to match candidate profiles with the specific needs of companies. This allows us to quickly filter a large number of candidates and select those with the most suitable skills.
Networking and industry community: We are actively involved in professional communities and industry networks. We participate in conferences, workshops, and networking events to identify and attract top talent, creating relationships that go beyond the simple recruiting process.
Training and development programs: We offer continuous training and professional development programs for our consultants, ensuring they have the most up-to-date and relevant skills. In addition to classic training, we also use edutainment techniques and role-playing games that stimulate creative thinking and innovative solutions through experiential learning. This allows us to provide our clients with talent that not only possesses current skills but can also adapt quickly to market changes.
Customized selection processes: We tailor our selection processes to the specific needs of each client. This includes structured interviews, assessment centers, and practical tests that simulate real working situations, ensuring that candidates are not only qualified but also culturally fit for the client’s organization.
Continuous feedback and improvement: We maintain a continuous feedback loop with our clients and candidates to constantly improve our processes. This allows us to quickly adapt to market changes and meet the emerging needs of our clients.

These methods and processes distinguish us in the consulting and recruiting market, and we are particularly proud of the results we achieve for our clients.

Our dedication to a personalized approach and the use of cutting-edge technologies allow us to attract and select high-level talent, always ensuring maximum client satisfaction.

Exploring the potential of using Workable

The first standout feature is undoubtedly Workable’s intuitive interface and customization options, which allow us to tailor the recruitment process to specific needs.

From simply inputting crucial role and requirement information, this cutting-edge online recruitment platform seamlessly manages the rest of the process.

Through targeted distribution, it spreads our job postings across a wide range of online platforms, ensuring broad visibility and coverage.

Thanks to this effective distribution strategy, we reach a vast and diversified number of potential candidates, ensuring that no opportunity is left unexplored in our search for the ideal talent.

Keyword: perfect candidate

Thanks to Workable’s job post distribution feature, our advertisement is distributed across a series of online channels and social media, capturing the attention of a wide audience of potential talents actively seeking new job opportunities.

But it doesn’t end there. Workable offers another essential feature for executive search: keyword search.

With this option, we can identify a broad pool of passive talents, those who may not be actively seeking a job change. Identifying such profiles, characterized by exceptional skills and experiences, allows us to more effectively meet the needs of client companies, offering them a broader and more qualified selection of potential candidates.

The satisfaction of success

Our experience with Workable demonstrates that finding the perfect candidate doesn’t have to be an insurmountable task. With the right tools and approach, it’s possible to streamline the recruitment process and achieve extraordinary results.

Today at MCS, we are able to identify and engage the ideal talent for our executive searches, performing more efficiently, transparently, and rewarding. The experience with Workable has marked a turning point in our role as recruiters, and we couldn’t be more satisfied with the results achieved. Workable is exactly what we needed.

Elena Di Maio is currently the Communication Manager at MCS. She is a Marketing Executive Specialist with extensive experience in TTL Brand Communication, Digital Marketing Communication, and Press Office, primarily acquired at a multinational automotive company. In recent years, she has worked as a Web Master, Social/CRM Communicator, and Content Editor. Her specialization lies in designing and managing communication campaigns across OOH, ATL (press, TV, email, social media), and in Event/Exhibition Planning.

The post MCS utilizes HR technology to search for excellent talents appeared first on Recruiting Resources: How to Recruit and Hire Better.

‘It’s HR, not the ER’: hilarious but insightful Reddit moments

Alexandros Pantelakis — Thu, 27 Jun 2024 15:42:51 +0000

Our goal is to share both serious and humorous Reddit threads with you in a series of articles, providing commentary on HR matters. This is mainly for fun, but you’ll also pick up some cool takeaways along the way.

Reddit is like a giant brainstorming session where everyone’s invited and some people show up in their pajamas. Actually, it can resemble the office as well. It’s like a virtual office party—sometimes productive, often hilarious, and occasionally weird.

This article could be alternatively called “I learned HR from Reddit,” but that might be a little embarrassing.

Let’s dive into what our Redditors pulled out of their hats in this first edition.

It’s HR, not the ER

People often push HR to provide all the answers, sometimes struggling to understand the immense workload HR professionals carry.

One Redditor asked, “What HR advice do you wish you knew earlier?” Another responded with a hint of frustration, saying, “It’s HR, not the ER.” They definitely heard that on Reddit. While a strange way to support the initial statement, Redditors are known for their raw advice.

Comment
byu/Sal21G from discussion
inhumanresources

Another insightful response emphasized the vital role HR plays:

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byu/Sal21G from discussion
inhumanresources

HR is a neuralgic group that participates in decisions but doesn’t decide on its own. They ensure that decisions are implemented effectively, balancing the needs of employees and employers.

HR isn’t just about documentation, as another comment highlights:

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byu/Sal21G from discussion
inhumanresources

Is it bad to be too good?

One Redditor received a complaint from their HR manager about being too friendly with employees. Is that really so bad?

Working in HR involves building relationships and conveying the company culture to new hires. Ensuring a well-functioning, non-toxic environment is key. Human resources are fundamentally about human relationships—a valuable lesson.

A director complained that I’m too friendly
byu/str4ngerc4t inhumanresources

Of course, respecting hierarchy is essential. Building meaningful relationships is important, but it’s crucial to know who handles which tasks.

The truth seems to lie somewhere in the middle:

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byu/str4ngerc4t from discussion
inhumanresources

Clear communication is key for any work relationship—and in everyday life too.

Regrettable turnover will haunt you

Everyone has bad days, but that doesn’t justify firing someone without cause. Regrettable turnover is something to avoid.

If you work in HR, here’s a roadmap to track regrettable turnover:

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byu/Bones1225 from discussion
inhumanresources

But why did you reach this point? Make sure to get good feedback from your employees and adjust your strategies to avoid losing talent. When was the last time you ran an employee engagement survey? Maybe it’s time to revisit it.

You don’t need to lose your best people because they’re unhappy with internal communications or need additional benefits. Some of these requirements can be manageable and cost-effective.

People analytics roles on the rise

The surge is real. Who knew what People analytics was before the rise of 2023? Now, we know. People analytics is a crucial part of the HR team, playing a vital role in decision-making.

People analytics isn’t about turning people into numbers. It’s about identifying trends within your company, checking feedback, and making necessary changes and improvements based on data.

If you’re unsure what HR analytics entails, here’s a summary:

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by from discussion
inhumanresources

For better HR management and more informed decisions about your personnel, you can rely on Workable.

Where did you end up?

HR can be daunting, stressful, and full of responsibilities, like many other jobs. Before closing this article, here’s an interesting story.

Would you imagine a career path that begins in HR and ends in nursing? Probably not, but someone decided to make that change.

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byu/AlexaWilde_ from discussion
inhumanresources

This is great. It’s essential to regularly assess your needs and career goals. Imagine yourself as a company—what would you do to improve efficiency and effectiveness? If the answer is “go study nursing,” then do it.

You need to be happy with what you’re doing to create a positive and effective work environment. HR is no exception.

Good luck, and thanks for sharing this short break with me. See you in our next edition of ~~how to ruin HR~~ Reddit Has It.

The post ‘It’s HR, not the ER’: hilarious but insightful Reddit moments appeared first on Recruiting Resources: How to Recruit and Hire Better.

Rage applying: addressing the root causes, not the symptoms

Suzanne Lucas — Tue, 25 Jun 2024 14:52:51 +0000

Rage applying may be a new term, but the practice certainly isn’t new–even though some are claiming this is a “Gen Z phenomenon.” It’s not. It may be that Gen Z coined the term and are using it on TikTok, but it’s hardly new.

What is rage applying?

Rage applying is simply applying for jobs when you are fed up with your current job. We can probably trace it back to the Garden of Eden, where Eve got fed up with working in the garden all day, bit into an apple, and got a new job outside the garden–or left to be a stay-at-home mom. It’s hard to say.

Getting fed up with your current job isn’t new, and it won’t go away either. Technology makes it easier to find and apply for new jobs than it did in the 1900s, when you had to mail copies of your resume to people or (gasp!) hand deliver it! However, online applications have been popular for decades (even I got a job via Monster.com in 2001), making applications faster.

Are your employees rage applying?

Undoubtedly, yes. You probably have employees who are unhappy in their jobs. You may also have employees who are mostly happy but have moments of frustration and then log in to LinkedIn and start applying.

Of course, not all applications fall under the “rage” label. Some people are just ready to move on. But since we know that people are more likely to move on when they are disengaged, some of your turnover is due to rage applications.

And anytime you have someone leave, know that it took tremendous work to find a replacement job. StandoutCV found that it takes an average of 27 job applications to get an interview and 162 applications to get a job.

That’s a lot of applications. Tuesday is the most popular day to apply; Saturday is the least popular. Which means your employees are likely applying on the clock. Maybe after they’ve been reprimanded or after getting frustrating news.

What do you do about rage applying?

The short answer is nothing.

The longer answer is more complicated. People will move on–that’s part of life. Employees applying for new jobs is not the problem. The problem is that if they have reached the point of rage, you probably need to change.

This is not to say that employees don’t get angry for ridiculous reasons occasionally. They absolutely do, and these are the employees with whom you want to move on. But, if your good employees are not engaged and are frustrated with the managers or their jobs, then you want to do something.

Employees who are highly engaged are 87 percent less likely to quit than less engaged employees. You’ll never stop people from applying in a moment of frustration, but you can reduce the number of applications by increasing employee engagement.

What things make a difference in employee engagement?

Researchers at the University of Chicago found four key parts of engagement.

Learning opportunities and variety: Most employees don’t want to stay in the same job forever. They want opportunities to learn and grow. Larger businesses have more opportunities to move from position to position but smaller businesses tend to have more variety within one job. Play to your strengths.

Relationships with managers and coworkers: A good working environment depends heavily on your teams. Team members who get along and managers who know how to manage will increase your employee engagement and lower rage applying.

Low stress: Some jobs are stressful by their very nature, but most are not stressful all the time. If your employees are in a constant state of stress, they are probably in a constant state of job applications. Reduce stress by reducing workloads, training your managers, and remembering the customer is most certainly not always right.

Extrinsic benefits (including pay and bonuses): It doesn’t matter how interesting the work is, how fabulous the managers are, or how much opportunity for growth there is–if you aren’t paying market rates, your employees will be looking elsewhere. Yes, finding a new job is difficult, but applying is not terribly complicated these days. Turnover is expensive, and you’ll likely have to replace a rage quitter with someone who earns the market rate. It’s far cheaper to give a good salary to your current employees than to have them quit.

If you are working toward and have good employee engagement, don’t give much thought to rage applying. It’s never going to go away. But, if you have good management, you can certainly reduce its impact on your business.

The post Rage applying: addressing the root causes, not the symptoms appeared first on Recruiting Resources: How to Recruit and Hire Better.

Boomerang employees: should you target them?

Suzanne Lucas — Mon, 17 Jun 2024 14:46:54 +0000

You can take advantage of Boomerang employees even if you don’t live in Australia.

Not the ones for throwing, but employees who leave and then come back. With average tenure at jobs remaining fairly steady at around four years, people can go through quite a few companies in their professional careers. So it makes a bit of sense that people may want to come back.

Is it a good idea to hire boomerangs? It can be! It can also be a disaster. Here’s what you need to know.

Boomeranging is more common than you may think

A Harvard Business Review study looked at 3 million employee records from 2019 to 2022 and found that “28% of “new hires” were actually boomerang hires who had resigned within the last 36 months.”

Of course, this is an unusual period, as many people lost their jobs in 2020, and the same companies that laid off en masse were hiring rapidly in 2022. However, it demonstrates that companies are interested in rehiring people.

They also found that boomerang workers tend to come back around the one-year mark–but again, take that with a grain of salt, as that was also when companies that laid off due to the pandemic were hiring again.

But it’s also enough time for someone who left voluntarily to decide, hey, you know what? The grass isn’t greener elsewhere. And that was precisely what the researchers found–the new company didn’t fulfill its promises.

What about boomerangs today?

Robert Half published a survey in May 2024 that found 48 percent of people would consider going back to a previous company–that’s up 8 percent from 2023. So your employees who left don’t hate you! Well, at least not all of them do.

They don’t all want to return to the same job–they want to return to a promotion. This follows the advice and the data–the easiest way to get a good salary increase is to change jobs.

So, employees hop to a new job for an increase and want to maintain or increase that to come back. Their latest job would have to be particularly awful to come back for less money.

Benefits of boomerangs

The number one benefit of a boomerang worker is they have a better idea of what they are getting into. And you have a better idea of who you are hiring.

You don’t need to worry about work ethic or cultural fit or even if this person brings terrible potato salad to the company potluck and badgers people about trying it.

You already know your boomerang, and your boomerang knows you.

No amount of interviewing can tell you how a person will be as an employee, so this is a huge advantage when considering a boomerang worker. If you reject one, you can do so with confidence that you have made the right decision.

But that’s not the only benefit of a boomerang employee. Consider the following:

Faster ramp-up time. Of course, they will need refreshers, but they already know the products, systems, software, and bureaucratic processes.
They’ve gained knowledge that, perhaps, your company couldn’t teach them.
They want to work for you. Sure, some people will still take jobs because they have no other options, but a boomerang knows what they are getting into and chooses to do it anyway.

The benefits to the employee are also solid. For instance:

They have a shorter ramp-up time. While this is generally seen as a benefit to the company, it also makes for a far less stressful onboarding process for the employee.
They are eligible for FMLA earlier. Suppose your company has 50 or more employees within a 75-mile radius. In that case, your boomerang employee can become eligible for protected leave when they reach 1250 hours–if they have already worked for you for 12 months. This can be a huge benefit to employees.
They know what they are getting into. Nobody is honest in interviews–candidates lie about their skills and experience, and managers lie about work-life balance and growth opportunities. Everyone knows the truth with a boomerang.

But none of this means that a boomerang is the right hire.

When you should be cautious about boomerang candidates

Why did the person leave in the first place? Has that problem been fixed? If you laid the candidate off, then it’s not as concerning as if they left voluntarily. A voluntary termination generally means the company did not meet some need.

Some of these needs are easily fixed or were fixed by leaving. For instance, if someone left because of a lack of growth opportunities and is now returning to a higher role, the problem is solved. But if the person left because of personal conflicts, have the other people left?

If the candidate was a lousy employee the first time around, there’s a strong possibility that the person will be a lousy employee the second time around. Some companies feel desperate for employees and agree to take someone back when they shouldn’t.

Sure, people change and grow, but unless it’s been 5-10 years with solid evidence of growth as a person, pass on the bad boomerang.

Should you target former employees?

Absolutely! Some companies even have alumni groups and keep in contact with former employees. And, honestly, if Wegmans ever reached out to me (my first professional job, way back in the 1900s), I’d strongly consider it–if just for better access to chocolate muffins.

Your best former employees can be your best future employees. It’s worth considering when you’re struggling to hire. And if the Robert Half numbers are correct, your former employees may well want to return.

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Your roadmap to deal with leadership challenges

Alexandros Pantelakis — Fri, 14 Jun 2024 15:43:12 +0000

Today more than ever, leaders face a multitude of challenges, from resolving conflicts and nurturing emotional intelligence to fostering a culture of accountability and investing in employee development.

To gain a deeper understanding of these critical issues, we turned to Alex and Andrew Geesbreght, founders of PRAX Leadership.

What’s their take on a series of contemporary leadership challenges, and what can you do to save the day? Let’s delve into it.

1. Conflict resolution: finding the root cause

One of the most significant obstacles organizations face when dealing with difficult conversations and conflict resolution is identifying and addressing the root cause of the issue.

Alex Geesbreght emphasizes this point, stating, “The most productive way to resolve a conflict is for all parties to first find and agree upon the root cause of the conflict, itself. Likewise, the most effective way to prevent these conflicts from happening in the first place is to understand what causes them.”

He further elaborates on the importance of seeing conflicts as symptoms of underlying issues.

“Unfortunately, conflict is often seen and described as the issue itself.

“These truths, which are often hidden and uncomfortable for organizations to search for, are the most common obstacles that organizations face when dealing with difficult conversations and conflict resolution.”

Alex illustrates this concept with an example of a conflict between a lazy supervisor and a hard-working subordinate. He describes how the tension and lack of effective communication manifest as symptoms, such as the employee feeling like she “can’t talk to her boss” and the supervisor feeling like the employee doesn’t “respect his authority.”

However, he points out that these are merely distractions from the real issue: the employee’s competence threatening the insecure supervisor.

“The reality is that the employee’s go-get-’em attitude and competence is a threat and mirror into the insecure supervisor. Until these hard truths are examined and corrected (the right people in the right places), symptomatic, unresolvable problems will persist.”

He emphasizes that until the actual root of an issue is discovered and resolved, conflict will continue to arise.

2. Emotional intelligence: the key to effective leadership

Emotional intelligence is a crucial factor in effective leadership and employee performance. Alex Geesbreght underscores its significance.

“Not to be glib, but emotional intelligence is kind of everything – at least everything that isn’t self-evident. At a CPA firm, someone can either add or not. Technical skills are rarely the basis of contention, miscommunication, and conflict.

“Whether internal or external to a business, all interactions involve some degree of a relationship between or among people. It is often not what we say or do that others take issue with, but rather how and the motivations behind the same.”

Alex highlights the impact of emotional intelligence on employee retention and promotion, citing, “89% of promotable leaders who leave their jobs do so because of either their loss of faith in the direction of the company (culture) or the soft-skill deficits of those ‘above’ them. In both cases, the problem is a human one – one that would improve with a higher level of emotional intelligence.”

To foster the development of emotional intelligence within an organization, Alex suggests starting at the top, with leaders setting a clear expectation of honest, candid, and kind communication.

He introduces the concept of “professional love,” explaining, “Kind does not mean soft. I refer to it as the practice of professional love, and it can, over time, be infectious within an organization, much as personal love is within a family structure.

“I refer to it as the practice of professional love, and it can, over time, be infectious within an organization.”
Alex Geesbreght

“With those you personally love, you care for them enough to risk offending them in the short term. However, because of the relationship, they know that you are motivated out of what is truly best for them – not out of some need you have to make them feel badly.”

Alex believes that when a workforce operates in an environment that promotes constructive, firm, and well-motivated communication, the health of the organization improves drastically.

3. Establishing a culture of accountability

Holding employees accountable for their performance and actions is a common leadership challenge that organizations face.

However, Andrew Geesbreght argues that the issue often lies with leadership, specifically in terms of organizational design and performance measurement.

“Leaders don’t control employees, but since this is often the ‘goal’ leaders become frustrated and blame employees for accountability.”

“Leaders don’t control employees, but since this is often the ‘goal’ leaders become frustrated and blame employees for accountability.”
Andrew Geesbreght

Andrew highlights common mistakes in organizational design, such as having too many direct reports and poor role definition.

He explains, “A few common mistakes in organizational design are too many direct reports and poor role definition. Addressing just these two areas fixes a large percentage of the problems companies experience in performance.

“People require attention from their boss and if a leader has 17 direct reports there just isn’t enough time to give quality resources to the people doing the work.”

He also emphasizes the importance of giving individuals an “ownership” lens rather than just a set of activities,

“This means an individual understands what they are responsible for instead of just a set of activities. This type of design promotes engagement and mastery and far better performance. It’s the difference between doing the dishes and keeping a clean kitchen. The first is something I do and the other is the outcome I am wanting.”

Andrew believes that effective performance initiatives must begin with organizational design; otherwise, practices will ultimately suffer. He believes it is the responsibility of leadership to assess this before addressing an employee’s accountability.

4. Critical leadership skills for navigating change

As the business landscape continues to evolve, leaders need to develop critical skills to navigate change and drive organizational success to avoid leadership challenges.

Andrew Geesbreght states that technical abilities rarely drive leadership performance.

“Rarely have I seen a person’s technical abilities drive leadership performance. For instance, If you run a large healthcare organization, your abilities as a physician aren’t likely to be the reason the organization thrives.

“Sports has experienced this phenomenon over and over, as the best players rarely make the best coaches or even general managers.”

“The best players rarely make the best coaches or even general managers.“
Andrew Geesbreght

Instead, Andrew puts the emphasis on the importance of soft skills, such as emotional intelligence, creative thinking, and transformational leadership.

“Research has confirmed this notion as well, noting that a person’s soft skill deficits are the primary reason an individual fails to advance in an organization.”

Andrew stresses the significance of self-leadership, stating, “PRAX believes these skills must begin at the self leadership level, meaning in order for a person to be effective leading others, they must be able to lead themselves.

“Although this concept is largely accepted in principle, I see this reality dismissed in practice because truly working on yourself requires humility, effort, and an ability to take responsibility for performance before blaming others – all of which are not natural.”

He asserts that as business evolves and becomes increasingly reliant on technology, leading people through high-level self-leadership principles will become a key differentiator between average and top performers.

5. Supporting employee development and growth

Supporting employee development is crucial for fostering a culture of continuous learning and growth within an organization.

Andrew Geesbreght stresses the crucial nature of giving attention to employees.

“This may seem quite obvious, but you might be surprised how often this is news to leaders. Here is how you know you are paying attention to them. First, you are spending money to help them develop them.

While it is normal to feel constrained by budget limitations when it comes to employee development, one should not claim that employee growth is highly important if the spending does not reflect this priority.

He suggests that corporate spending, much like personal spending, reflects what is truly valued: “We spend our corporate dollars (just like our personal dollars) on things we value, period.”

Additionally, he underscores the importance of both formal and informal interactions with staff, explaining that this means “time together on a project and time together when performance isn’t the focus.”

According to Andrew, fostering a sense of connection involves engaging in activities together both “when it matters and when it doesn’t.”

Moreover, he stresses the necessity of regularly evaluating the effectiveness of employee development programs.

He notes that when organizations demand quantifiable results for these programs, he often responds by suggesting the use of the same methods they use to evaluate their internal programs, which typically leads to “silence.”

Andrew acknowledges that employee development is not a core competence of most organizations, and it’s easy to neglect updating efforts in this area.

He explains, “Over time, organizations get new leaders, new decisions are made, and a mix of legacy programs converge into a patchworked employee development system that doesn’t track budgets or effectiveness.

“The new HR leader doesn’t like what the last guy implemented, but the organization committed to a 5 year deal so they just have to live with it. Or ‘we used to do staff meetings and regular rounding, but it got too cumbersome’.

“These scenarios are very common because employee development is NOT a core competence of most organizations. Which is absolutely normal.”

“Employee development is NOT a core competence of most organizations. Which is absolutely normal.”
Andrew Geesbreght

He concludes that large organizations typically maintain a combination of internal programs aimed at supporting growth, along with external vendors who supplement these efforts.

Andrew stresses the importance of continually updating these initiatives, noting that while it may be easy to neglect, it is necessary. He believes that remaining vigilant with employee development systems is crucial to preventing waste in an area that significantly impacts culture and engagement.

The valuable insights and strategies shared by Alex and Andrew Geesbreght provide a roadmap for navigating the complex challenges faced by leaders in today’s dynamic business landscape.

As leaders, it’s crucial to reflect on our own practices and take proactive steps to implement these strategies within our organizations.

By fostering a culture of continuous learning, growth, and accountability, we can effectively navigate the challenges ahead and achieve sustainable success.

The post Your roadmap to deal with leadership challenges appeared first on Recruiting Resources: How to Recruit and Hire Better.

Grow your talent pool with AI

Alexandros Pantelakis — Thu, 13 Jun 2024 14:29:39 +0000

The increasing demand for skilled talent is a challenge for many companies so this why you need to grow your talent pool with AI. Traditional recruitment methods often fall short.

They are time-consuming, costly, and limited in scope. However, the rise of artificial intelligence (AI) offers a promising solution. AI can significantly expand and enhance talent pools.

A 2023 McKinsey report indicates that 55% of organizations now use AI in at least one business unit,. This growth reflects AI’s expanding role in enhancing efficiency and innovation across various sectors.

Early adopters already see the benefits

Traditional recruitment faces several challenges. It is often slow and expensive. Finding the right candidates can take months.

This delay can hinder a company’s growth and competitiveness.

Additionally, traditional methods may not reach a diverse range of candidates.

AI is changing the recruitment landscape. It offers tools and technologies that streamline the hiring process.

Early adopters of AI in recruitment have seen significant benefits.

These include faster hiring times, reduced costs, and a broader reach. By leveraging AI, companies can stay competitive and attract top talent more efficiently.

AI-driven talent sourcing

AI can transform the way companies source talent. It helps identify both active job seekers and passive candidates.

Passive candidates are not actively looking for jobs but may be open to new opportunities. AI tools can scan social media and professional networks to find these potential candidates.

Using diverse recruitment channels is crucial. AI can help companies leverage online job boards, social media platforms, and industry-specific forums.

This broadens the reach and increases the chances of finding top-tier candidates. By using AI, companies can attract a more diverse and qualified talent pool.

Integrating AI with existing HR systems

Seamless integration of AI with existing HR systems like Workable is vital to grow your talent pool with AI.

AI can enhance Applicant Tracking Systems (ATS) and Human Resources Information Systems (HRIS). This integration streamlines candidate tracking and communication. It also automates administrative tasks, saving time and resources.

Integrating AI with existing systems can pose technical challenges. However, this depends on the software you use and how user-friendly it is.

A well-integrated AI system can improve the efficiency and effectiveness of the recruitment process. It ensures that companies can quickly and accurately identify the best candidates for their needs.

Additionally, companies are addressing the AI talent shortage by investing in upskilling and reskilling their workforce. Accenture, for instance, aims to double its AI workforce by combining hiring, acquisitions, and extensive training programs.

Enhancing candidate engagement with AI

Continuous engagement is crucial. AI can keep candidates engaged with personalized content and updates. It can also help schedule interviews and provide real-time feedback.

This makes the recruitment process smoother and more appealing for candidates.

The role of AI in talent analytics

AI-driven talent analytics offers significant advantages. Predictive hiring is one such benefit. AI can anticipate future hiring needs based on data analysis. It can analyze market trends and talent availability to inform recruitment strategies.

Skills and performance analytics are also crucial. AI can evaluate candidates based on their skills and potential.

This includes AI-driven assessments and performance tracking.

By focusing on skills and potential, companies can make more informed hiring decisions. AI helps ensure that the candidates selected will excel in their roles and contribute to the company’s success.

Leveraging AI for talent pool diversity

AI can play a vital role in enhancing diversity within talent pools. It helps identify underrepresented talent by analyzing broader data sets. AI tools can detect diverse candidates and reduce unconscious bias in job postings and selection processes.

Crafting inclusive job descriptions with AI assistance ensures that language and requirements are free from bias.

This attracts a wider range of candidates. Tracking and analyzing diversity metrics with AI allows companies to adjust their recruitment strategies based on data insights.

This continuous improvement fosters a more inclusive hiring process.

Future trends in AI-enhanced recruitment

Emerging technologies will continue to shape AI in recruitment. Advancements in machine learning and natural language processing will enhance AI capabilities.

These technologies will enable even more precise candidate matching and predictive analytics.

The role of HR professionals is also evolving. As AI becomes more integrated, HR professionals will need to develop new skills.

Understanding how to use AI tools effectively will be crucial. Preparing for these changes will help HR professionals stay relevant and effective in an AI-driven landscape.

By expanding and enhancing talent pools, AI offers significant benefits. From improving recruitment efficiency to personalizing the candidate experience, the advantages are clear.

As technology evolves, staying informed about future trends will be crucial. Embracing AI in recruitment can help companies attract and retain top talent, ensuring long-term success.

The post Grow your talent pool with AI appeared first on Recruiting Resources: How to Recruit and Hire Better.

Six reasons why your company needs a salary estimator tool

Alexandros Pantelakis — Fri, 07 Jun 2024 14:50:23 +0000

A salary estimator tool is a digital resource that helps employers determine fair compensation for various roles. It uses data from multiple sources to provide accurate salary ranges.

Key features often include market benchmarking, industry-specific insights, and customizable reports.

These tools are designed to ensure that salaries are competitive and aligned with industry standards.

Using a salary estimator, employers can input job titles, locations, and experience levels. The tool then generates salary ranges based on real-time data.

This process helps eliminate guesswork and ensures consistency in salary decisions. By relying on objective data, companies can make informed decisions that promote fairness and transparency.

Salary estimators also offer insights into industry trends. This information is valuable for HR professionals who need to stay updated on market conditions.

By understanding these trends, companies can adjust their compensation strategies accordingly.

Here are some good reasons you should consider using a salary estimator tool.

1. Ensuring competitive salaries

Offering competitive salaries is crucial for attracting and retaining talent. A salary estimator tool helps you stay informed about market rates. It ensures your offers are competitive.

According to a recent report, U.S. job postings with salary information more than doubled from 18% in February 2020 to 44% in February 2023.

This trend shows the growing importance of salary transparency.

When your salaries are competitive, you can attract the best candidates. It also helps retain current employees who might otherwise look elsewhere.

With the job market constantly evolving, staying updated on salary trends is vital. A salary estimator tool ensures you are always informed and ready to offer the best compensation packages.

2. Promoting fairness and transparency

Fairness and transparency in pay are vital for maintaining employee trust and satisfaction. Salary estimators help ensure pay equity by providing objective data.

This data-driven approach helps eliminate biases in salary decisions. Moreover, transparency in pay practices can improve employee morale.

Statistics from the World Economic Forum show that pay transparency in job postings has increased internationally. In Germany, it rose from 8% to 20%, in France from 10% to 30%, and in Canada from 12% to 23%. These numbers highlight a global shift towards more transparent pay practices.

Pay transparency not only builds trust but also encourages a culture of fairness. Employees feel valued when they know their compensation is fair and competitive.

This can lead to higher job satisfaction and lower turnover rates. By using a salary estimator tool, you can promote a transparent and equitable workplace.

3. Supporting budget planning

A salary estimator tool is invaluable for budget planning. It helps companies allocate resources effectively.

By providing accurate salary data, these tools enable better financial planning and management.

Knowing the market rates for various roles allows you to plan your budget more accurately.

For example, consider a company planning to expand its team. Using a salary estimator, the HR department can project the total cost of hiring new employees.

This includes not just salaries, but also benefits and other associated costs. Having a clear understanding of these expenses helps in making informed decisions about growth and resource allocation.

Additionally, salary estimators can help identify areas where the company might be overspending.

By comparing your current salary structure with industry standards, you can pinpoint roles where adjustments are needed. This ensures that your compensation strategy is both competitive and cost-effective.

4. Improving employee satisfaction and retention

Fair and competitive salaries are key to employee satisfaction and retention. When employees feel they are compensated fairly, they are more likely to stay with the company.

A salary estimator tool helps ensure that your compensation packages meet industry standards and employee expectations.

Employees who believe they are being paid fairly are more engaged and motivated. This can lead to increased productivity and a positive workplace culture. On the other hand, perceived pay disparities can lead to dissatisfaction and high turnover rates.

By regularly using a salary estimator tool, you can make necessary adjustments to stay competitive.

This proactive approach helps retain top talent and reduces the costs associated with high turnover.

It also demonstrates to your employees that you value their contributions and are committed to fair compensation.

Please review these sections and let me know if any adjustments are needed before proceeding

5. Staying compliant with regulations

Salary estimators also play a crucial role in ensuring compliance with wage and labor laws.

Many regions have implemented pay transparency laws that require employers to disclose salary ranges in job postings.

For instance, in Colorado, the percentage of job postings including salary information increased from 16% to 81% following the implementation of such laws.

Compliance with these regulations is essential to avoid legal issues and potential fines. A salary estimator tool helps you stay updated with the latest legal requirements and ensures your job postings meet these standards.

By adhering to these laws, you not only avoid penalties but also build a reputation as a fair and transparent employer.

Even in regions without explicit transparency regulations, salary transparency is growing.

For example, Utah’s largest metro areas saw salary information included in more than 50% of job postings, likely influenced by nearby Colorado’s legislation.

This trend suggests that adopting transparency practices proactively can keep you ahead of potential regulatory changes.

6. Facilitating market benchmarking

Market benchmarking is another significant benefit of using a salary estimator tool. Benchmarking allows you to compare your company’s compensation packages with those of other companies in your industry.

This ensures that your salaries are competitive and aligned with market standards.

For example, a mid-sized tech company used a salary estimator tool to benchmark their salaries against competitors.

They discovered that their compensation packages were below industry standards for several key roles. By adjusting their salaries, they were able to attract higher-quality candidates and improve employee retention.

Benchmarking also helps you understand industry trends and shifts in salary expectations. This information is crucial for strategic planning and staying competitive in the job market.

A salary estimator tool provides the data needed to make these comparisons and adjust your compensation strategies accordingly.

For HR professionals and SMB employers, adopting a salary estimator tool can be a game-changer. It equips you with the data needed to make informed decisions about compensation.

This, in turn, helps attract and retain top talent, fosters a fair and transparent workplace, and supports strategic financial planning.

The post Six reasons why your company needs a salary estimator tool appeared first on Recruiting Resources: How to Recruit and Hire Better.

Top HR terms any HR professional should know today

Alexandros Pantelakis — Thu, 30 May 2024 15:21:48 +0000

Whether it’s terminology or jargon, the HR mind is always ready to learn and face new challenges. You’re the driver, and there are many elements of hiring that you can navigate with the support of key terms and practices on the job.

Are you ready to explore a few of the most significant ones for your day-to-day work?

You’ll have to wait a little bit longer because we believe it’s better to explain our thought process while crafting this article. We didn’t want to add more confusion, so we divided the terms into six major categories: practicality, fundamental concepts, technology integration, compliance and legal, current trends, and core HR functions.

Now, you are ready. Let’s explore each category and provide additional context on the HR terms every HR professional should know today.

Practicality

This category focuses on practical HR practices and policies that enhance operational efficiency and employee well-being, such as managing absences, implementing telecommuting, and retaining employees.

1. Absence management

Absence management involves policies and procedures designed to reduce absenteeism in the workplace. Effective absence management ensures that employee absences are handled in a way that minimizes disruption to operations.

This includes tracking employee absences, understanding the reasons behind them, and implementing strategies to reduce absenteeism. It can involve flexible working conditions, health and wellness programs, and clear communication of attendance policies.

Good absence management can improve employee productivity, reduce costs associated with absenteeism, and enhance overall workplace morale.

2. Full-time Equivalent (FTE)

Full-time Equivalent (FTE) is a unit that indicates the workload of an employed person in a way that makes workloads comparable across various contexts.

One FTE is equivalent to one employee working full-time.

It’s used to measure the total workforce capacity by converting part-time hours into full-time equivalent hours.

For example, two part-time employees working 20 hours each would be equivalent to one FTE. This metric is crucial for budgeting, financial analysis, and understanding workforce productivity.

3. Telecommuting

Telecommuting, also known as remote work, allows employees to perform their job duties from outside the traditional office environment. This can be from home, a co-working space, or any other location with internet access.

Telecommuting offers flexibility, reduces commuting time and costs, and can increase job satisfaction.

For employers, it can lower overhead costs and attract talent from a broader geographic area. However, it requires robust communication tools, clear expectations, and a strong company culture to ensure productivity and engagement.

4. Unlimited PTO (Paid Time Off)

Unlimited Paid Time Off (PTO) is a policy where employees can take as much time off as they need, as long as their work is completed and deadlines are met.

This policy is designed to promote a healthy work-life balance, reduce burnout, and increase employee satisfaction.

It shifts the focus from tracking hours to achieving results. While it offers flexibility and autonomy, it requires a high level of trust and responsibility from employees and may not be suitable for all types of jobs or industries.

5. Employee retention

Employee retention refers to the ability of an organization to keep its employees and reduce turnover.

High retention rates indicate a positive work environment, competitive compensation, opportunities for career advancement, and strong leadership.

Strategies to improve retention include offering professional development, recognizing and rewarding performance, providing a supportive company culture, and ensuring work-life balance.

Effective employee retention strategies can lead to increased productivity, reduced recruitment and training costs, and a more experienced and cohesive workforce.

Fundamental concepts

Fundamental Concepts cover the core principles and essential knowledge every HR professional should understand, including employment laws, employee engagement, onboarding processes, and job analysis.

1. Employee engagement

Employee engagement refers to the emotional commitment and involvement an employee has towards their organization and its goals.

Engaged employees are more productive, motivated, and likely to stay with the company.

Strategies to boost engagement include providing meaningful work, recognizing achievements, offering professional development opportunities, and fostering a positive workplace culture. High employee engagement can lead to better performance, lower turnover, and a more positive organizational atmosphere.

2. Onboarding

Onboarding is the process of integrating new employees into an organization and equipping them with the necessary tools, knowledge, and skills to become effective team members. It typically includes orientation sessions, training programs, and introductions to company policies and culture.

Effective onboarding helps new hires adjust quickly, improving job satisfaction and retention rates. It is a critical step in ensuring employees feel welcomed, valued, and prepared for their roles.

3. Job Analysis

Job analysis involves systematically studying a job to determine its essential duties, responsibilities, skills, and qualifications. This process helps create accurate job descriptions, which are essential for hiring, performance evaluations, and compensation management.

Job analysis also identifies the physical and mental requirements of a position, ensuring that employees are well-matched to their roles. Accurate job analysis supports effective HR practices by aligning job requirements with organizational goals.

4. Compensation and Benefits

Compensation and benefits refer to the total rewards an employee receives for their work, including salary, wages, bonuses, health insurance, retirement plans, and other perks.

A well-designed compensation and benefits package can attract and retain top talent, boost employee morale, and enhance job satisfaction.

It’s important for HR professionals to stay informed about market trends and ensure that their offerings are competitive and align with organizational objectives and budget constraints.

Technology integration

Technology Integration involves leveraging digital tools and software to streamline HR functions, including applicant tracking systems, HR software, video interview platforms, and payroll solutions.

1. Applicant Tracking System (ATS)

An Applicant Tracking System (ATS) is software that manages the recruitment and hiring process. It automates job postings, screens resumes, and tracks candidates through the hiring stages.

ATS helps HR professionals streamline recruitment by organizing candidate information, ensuring compliance with hiring regulations, and facilitating communication with applicants. By using an ATS, companies can reduce the time and effort required for recruitment, improve the quality of hires, and create a more efficient and organized hiring process.

2. HR software

HR software refers to digital solutions designed to automate and manage various human resources functions. These include payroll, benefits administration, performance management, employee records, and recruitment.

HR software improves efficiency by centralizing data, facilitating reporting, and enabling self-service for employees. It helps HR departments reduce manual tasks, ensure compliance with regulations, and enhance overall HR service delivery. With the right HR software, organizations can improve data accuracy, streamline HR processes, and support strategic decision-making.

3. Video interview software

Video interview software enables organizations to conduct interviews with candidates remotely. This technology facilitates live video interviews or allows candidates to record their responses to predefined questions.

It is particularly useful for screening candidates who are geographically dispersed. Video interview software can save time and costs associated with travel, provide flexibility in scheduling, and offer a more convenient experience for both candidates and interviewers.

Additionally, it can be integrated with ATS and other HR systems to streamline the hiring process.

4. Learning Management System (LMS)

A Learning Management System (LMS) is software that manages and delivers educational courses, training programs, or learning and development initiatives. It allows organizations to create, track, and manage employee training activities.

An LMS provides a centralized platform for e-learning, offering features like course enrollment, progress tracking, and assessments. It supports employee development by providing accessible and consistent training, ensuring compliance with industry standards, and helping measure the effectiveness of training programs.

5. Payroll Software

Payroll software automates the process of managing employee compensation.

It calculates wages, withholds taxes, and ensures employees are paid accurately and on time. Payroll software can also handle deductions, bonuses, benefits, and generate payroll reports.

By automating these tasks, the software reduces errors, ensures compliance with tax regulations, and saves time for HR professionals. Efficient payroll software enhances the overall accuracy and reliability of the payroll process, improving employee satisfaction and trust.

Compliance and legal

This category emphasizes the importance of adhering to legal standards and regulations in HR practices, covering topics such as employment laws, equal opportunity, safety regulations, and family leave policies.

1. At-will Employment

At-will employment is a legal doctrine where either the employer or employee can terminate the employment relationship at any time, for any reason, or for no reason, with or without notice. This framework offers flexibility but provides less job security for employees.

Exceptions to at-will employment include termination for discriminatory reasons or violations of public policy. Understanding this doctrine is crucial for HR professionals to manage terminations properly and ensure compliance with legal standards, thereby minimizing potential legal risks and fostering fair workplace practices.

2. Equal Employment Opportunity (EEO)

Equal Employment Opportunity (EEO) refers to the principle that all individuals should have equal access to employment opportunities without discrimination based on race, color, religion, sex, national origin, age, disability, or genetic information.

EEO laws and regulations, enforced by agencies like the Equal Employment Opportunity Commission (EEOC), aim to prevent workplace discrimination and promote diversity. HR professionals must ensure that hiring, promotion, and other employment practices comply with EEO standards to foster an inclusive workplace and avoid legal penalties.

3. Occupational Safety and Health Administration (OSHA) Regulations

OSHA regulations are standards set by the Occupational Safety and Health Administration to ensure safe and healthy working conditions. These regulations cover a wide range of workplace hazards, including chemical exposure, machinery safety, and ergonomic practices.

Employers are required to comply with OSHA standards to prevent workplace injuries and illnesses. HR professionals play a key role in ensuring compliance by implementing safety programs, conducting regular training, and maintaining accurate records. Adhering to OSHA regulations helps create a safer work environment and reduces the risk of legal issues.

4. Family and Medical Leave Act (FMLA)

The Family and Medical Leave Act (FMLA) entitles eligible employees to take unpaid, job-protected leave for specified family and medical reasons. Covered reasons include personal or family illness, childbirth, adoption, and certain exigencies related to a family member’s military service.

Employees can take up to 12 weeks of leave in a 12-month period. HR professionals must ensure compliance with FMLA requirements, including proper documentation, communication, and maintaining employee benefits during leave. Understanding FMLA helps protect employees’ rights and ensures that organizations fulfill their legal obligations.

Current trends

Current trends highlight the latest developments and emerging practices in HR, such as inclusive leadership, employer branding, recruitment marketing, remote work policies, and the gig economy.

1. Inclusive Leadership

Inclusive leadership refers to leadership practices that ensure all team members feel valued, respected, and included. Inclusive leaders promote diversity by actively seeking out and leveraging diverse perspectives, fostering an environment of openness and respect.

They are aware of their biases and work to mitigate them, ensuring fair treatment for all employees.

This approach not only enhances team performance but also drives innovation and employee engagement. HR professionals should encourage and train leaders to adopt inclusive leadership practices to build a more equitable workplace.

2. Employer Branding

Employer branding is the process of promoting a company as an employer of choice to attract and retain top talent. It involves creating a positive image of the organization through marketing and communication strategies that highlight the company’s values, culture, and benefits.

Strong employer branding can differentiate a company from its competitors, making it more attractive to potential employees. HR professionals play a key role in developing and maintaining an effective employer brand by ensuring that employee experiences align with the brand’s promises.

3. Recruitment Marketing

Recruitment marketing applies marketing principles to the recruitment process to attract, engage, and nurture potential candidates. It involves creating targeted campaigns that highlight the company’s strengths, culture, and opportunities to attract top talent.

Techniques include social media marketing, content marketing, and employer branding efforts. Effective recruitment marketing helps build a strong talent pipeline, enhances the candidate experience, and improves the overall efficiency of the hiring process. HR professionals should leverage recruitment marketing to reach and engage with passive candidates.

4. Remote Work Policies

Remote work policies outline the guidelines and expectations for employees who work outside the traditional office environment.

These policies cover aspects such as eligibility, communication protocols, performance expectations, and cybersecurity measures.

Implementing clear remote work policies ensures that remote employees are productive, engaged, and aligned with company goals. HR professionals must develop and enforce these policies to support a flexible work environment while maintaining organizational efficiency and security.

5. Gig Economy

The gig economy refers to a labor market characterized by short-term contracts or freelance work rather than permanent jobs. It includes individuals who work as independent contractors, freelancers, or part-time workers in various industries.

The gig economy offers flexibility and autonomy for workers, while companies benefit from cost savings and access to a diverse talent pool. However, it also presents challenges such as lack of job security and benefits.

HR professionals need to understand the implications of the gig economy and develop strategies to manage and support gig workers effectively.

Core HR functions

Core HR Functions encompass the fundamental activities and responsibilities of HR, including performance management, onboarding, recruitment marketing, talent management, and employee relations.

1. Performance management cycle

The performance management cycle is a continuous process used to plan, monitor, and review an employee’s work objectives and overall contribution to the organization. It typically includes setting performance expectations, providing ongoing feedback, conducting performance appraisals, and creating development plans.

Effective performance management ensures alignment between individual goals and organizational objectives, enhances employee performance, and fosters professional growth. HR professionals play a critical role in facilitating this process, ensuring it is fair, transparent, and conducive to employee development and organizational success.

2. Onboarding software

Onboarding software assist you in integrating new employees into an organization and familiarizing them with company policies, culture, and their specific roles.

Effective onboarding helps new hires adjust quickly, enhances job satisfaction, and reduces turnover. By providing necessary resources and support, HR professionals can ensure that new employees become productive members of the team, contributing to their long-term success and the overall efficiency of the organization.

3. Talent management

Talent management encompasses the systematic attraction, identification, development, engagement, retention, and deployment of individuals who possess the skills and potential to meet current and future organizational needs.

It includes activities such as workforce planning, talent acquisition, performance management, learning and development, and succession planning. Effective talent management ensures that the organization has the right people in the right roles, promotes employee growth, and supports the achievement of strategic business goals.

HR professionals are essential in designing and implementing talent management strategies.

4. Employee relations

Employee relations involve managing the relationship between the employer and employees to ensure a harmonious and productive work environment.

This includes handling workplace conflicts, addressing employee grievances, ensuring compliance with labor laws, and promoting fair treatment.

Effective employee relations practices help prevent and resolve issues that can impact employee morale and productivity. HR professionals play a key role in fostering positive employee relations by implementing policies, conducting training, and providing support to both management and employees.

We know it’s a lot for one day. But don’t panic! By following our content, you’ll become more familiar with these terms and receive up-to-date insights from the HR industry.

The post Top HR terms any HR professional should know today appeared first on Recruiting Resources: How to Recruit and Hire Better.

Decoding office etiquette: guiding interns effectively

Suzanne Lucas — Mon, 03 Jun 2024 15:25:58 +0000

According to this post on Reddit, when an intern showed up to work in a crop top, even though it violated the written dress code, she defended her outfit, saying she’d learned it from an HR TikTok video.

Someone in the thread suggested it sounded like this influencer:

View this post on Instagram

A post shared by Nicole Pellegrino (@nicolepellegrin0)

To which the original poster said, yes, just with shorts instead of a mini skirt.

Now, to defend the Instagrammer, she plays the role of a clueless person, but apparently, not everyone catches on to that.

It’s intern season, and this Redditor discovered that even though the company gave the interns a dress code, it didn’t stick in their heads.

If you have interns showing up to work, you could use more clarity around office rules than you need for more established employees.

If you have interns showing up to work, you could use more clarity around office rules than you need for more established employees.

Or, as one Redditor said, “spell it out in crayons.”

Here is some help spelling things out so every employee–even your interns can understand.

Office etiquette: dress code

Because dress code violations brought this all on, let’s start there. Things like “business casual” or “business attire” and, especially, “dress for the day you have” can work just fine with experienced professionals, but with people who are in their first professional environment, it’s not enough.

Be crystal clear with what you mean by your dress code. HR Director at LPS, Marie Lobbezoo, suggests wording such as:

Backs and stomachs should be covered at all times.
Proper undergarments must be worn at all times. T-Shirts, Camisoles, and/or Bras are recommended for office wear under outer clothing.
Underwear as outerwear is not permitted in the office.
Bra straps and underwear should not be visible when you are fully dressed,
Leggings should only be worn under a tunic or top layer that extends to mid-thigh.
Strapless or spaghetti-strap tops should only be worn with a top layer over them.

You might find that ridiculously over the top, but you need to assume that interns (and some more experienced employees) will have no idea what is and is not appropriate.

Spelling it out makes it straightforward for everyone and removes discomfort from managers and HR. You don’t have to struggle with why their outfit is inappropriate; just point to the bullet point on the list.

Punctuality and breaks

Interns should understand the importance of punctuality, as school classes start at specific times, but office environments can feel different. Meetings with coworkers or clients can feel like get-togethers for group projects, but it’s not the same. It falls under the office etiquette.

Be specific about what you expect. If you need our interns to show up at 8:30, say so clearly and speak with someone the first time they arrive at 8:40. This may seem overly nitpicky, but the goal of an internship is to train people how to act in an office.

If your office is more casual about start times, that’s great! Just let your intern know precisely what you expect. And don’t demand that your intern be there at 8:30 when you aren’t going to stroll in until 9:45. If there is a reason for the difference in start times, also make that clear.

Breaks can be a weird concept for people in their first job. If they worked in food services or retail, they undoubtedly had breaks assigned by a shift leader and strictly timed. But white-collar breaks can be much more casual. Can your interns wander to the kitchen for coffee or a glass of water anytime? Probably. Do you want them to spend half the day there? Probably not.

What about lunch? How long is it? Do people generally eat at their desks, pack lunches, or go out? Remember that your interns probably can’t afford to eat out daily, so let them know where they can store their lunches and whether eating at their desks is acceptable.

What should they call people?

When I was in college, we called all the professors “Doctor” or “Professor.” Grad students who taught undergraduate classes were referred to by their first names. When I moved to graduate school, the professors introduced themselves to us by their first names.

I struggled with using their first names throughout grad school because it just seemed wrong to me.

It doesn’t matter what your standard is–just tell the interns. “We call everyone by their first name except for the CEO, whom we call Ms. Smith.” Or, “Please call clients Mr. or Ms. Last Name until they ask you to use their first names.”

Just make it very, very clear. That way, there is no awkwardness.

They know what to expect. Different cultures and different schools use very different naming standards. Don’t assume they will know your company practices.

The first few days and weeks at a new job are stressful for seasoned professionals, triple that for interns.

Be incredibly clear about expectations and correct them promptly and politely. If you can do this, intern season will be great for you and your interns.

The post Decoding office etiquette: guiding interns effectively appeared first on Recruiting Resources: How to Recruit and Hire Better.

How valued is salary in the UK? Quite a bit, actually

Keith MacKenzie — Wed, 13 Oct 2021 15:33:02 +0000

The only real ‘surprise’, if there needs to be one, is that there are studies showing that other job attractors have grown in value – such as the willingness to take less salary in order to remain remote according to HR software provider CIPHR, and the value of perks over salary as a motivator, according to MetLife UK.

Our own dataset, however, finds that compensation remains a leading motivator when looking at career opportunities. A US-based respondent from our other survey report on the same topic puts it perfectly:

“Employees will go where the money is. And where they’re treated respectfully and valued. But, mostly, it’s the money.”

Money above all

As stated above, a vast majority of respondents are open to new opportunities, whether they’re passively open or actively looking. When we asked those respondents to choose from a list of top reasons why they’re open to new opportunities, more than half (53.5%) selected “I need to make more money” as a major reason.

Closely following in second place is “I need a fresh challenge”, with 43.9% citing that as a reason.

The need for more meaning in work is a distant third, at 21.9%.

We also asked respondents what would lure them from their present job to a new one, again choosing from a list of popular attractors. Again, compensation tops the list, with 70.1% of UK respondents citing that as a leading motivator when deciding to move to a new company.

Work flexibility (43.5%) and job security (39.5%) are the second and third-most popular attractors in a new opportunity.

One UK respondent noted their disappointment at their current employer cutting corners on compensation:

“The company pays less as we are touted as ‘independent contractors’, they can seemingly bend the rules.”

We know there are nuanced differences between what someone might be hoping to get in terms of a new job at a different company, and what they might want to see improved in their current capacity. It’s the difference between being ready to leave and being satisfied – albeit not 100% with one’s current working situation.

So we asked that question separately: what could be improved in your current job for a better employee experience?

Again, compensation is the number-one area where their current employer can improve, with 60.7% picking that as a top area in need of improvement.

It’s worth noting another comment from the US, on the importance of keeping salaries proportionally balanced throughout a company – especially when a company is growing and accumulating wealth:

“As a business owner, I understand that you can not cave to every whim your employees have, but instead of prioritizing balloon money bombs for executive persons, make the wealth of the company available to the people that make it happen. Smaller executive bonuses in favor of increased bonuses / benefits / perks for the workers/moving parts of a successful company.”

The different types of compensation

Now, compensation doesn’t necessarily mean only a base salary. It can also mean paid time off, paid vacations, bonuses, incentives, extra perks and benefits, company lunches, team outings, tuition or mortgage reimbursements, pre-tax benefits, and many other things.

Intangibles can include company-wide recognition, advancement potential, the ability to work remotely and on flexible schedules, mentorship, network building, and so on.

Even those intangibles – while still valued – aren’t worth as much as raw compensation. Support from their employer, whether it’s in the actual day-to-day work or moral/emotional support are at the bottom of both lists. This suggests that the traditional core elements of having a job (i.e. compensation, career opportunities, job security) remain paramount for workers.

The motivators are clear – the working population in the UK want and need to make more money. Full stop.

There’s just one little intangible that deserves a much deeper dive: work flexibility, which ranks highly across all these lists. We’ll take a deep dive into that in the next chapter.

The post How valued is salary in the UK? Quite a bit, actually appeared first on Recruiting Resources: How to Recruit and Hire Better.

Is salary important to workers? Bet your bottom dollar it is

Keith MacKenzie — Wed, 13 Oct 2021 15:33:27 +0000

Compensation sits at the very core of the worker-employer relationship. And the survey results from our Great Discontent study of 750 workers in the United States cements this reality. Salary is important.

The only real ‘surprise’, if there’s one, is that other studies show a growth in value placed on job attractors besides compensation – such as the willingness to take less salary in order to remain remote according to a TeamBlind survey, and the value of perks over salary as a motivator according to Staples.

Our dataset, however, clearly indicates that compensation remains the number-one driver in career opportunities across the board. As one respondent succinctly put it:

“Employees will go where the money is. And where they’re treated respectfully and valued. But, mostly, it’s the money.”

Take a look at the dataset and see for yourself.

Money above all

As stated above, a full seven out of 10 respondents are open to new opportunities, whether they’re passively open or actively looking.

When we asked those respondents to choose from a list of top reasons why they’re open to new opportunities, nearly two-thirds (63.4%) selected “I need to make more money”.

That’s more than double the next-most popular reason, which is “I need a fresh challenge” (24.6%).

Work flexibility (20.8%), meaningfulness in work (19.3%) and career advancement (also 19.3%) are other leading factors prompting the drive to explore new job opportunities. Still, those numbers pale in comparison to compensation.

We also asked respondents what would lure them from their present job to a new one, again choosing from a list of popular attractors. Again, compensation remains the top attractor, with 62.2% of respondents in the US citing that as a top factor in deciding to move to a new company.

Again, other major attractors here are similar to the previous question, with career opportunities (38.1%), work flexibility (37.5%) and job security (32.1%) being reasons why someone would jump to a new job.

Another respondent was frank about their emphasis on salary as the dealmaker:

“If someone pays me more than I make running my own company, I’ll do it!”

We know there are nuanced differences between what an individual might want in terms of a new job at a different company and what they might want to see improved in their current capacity. It’s the difference between being ready to leave and being satisfied, but not 100%, with one’s current workplace.

So we asked that question separately: what could be improved in your current job for a better employee experience?

The answers are still very much the same. Compensation, again, is the number-one area where their current employer can improve, with 57.4% picking that as a top area for improvement.

A third respondent noted the importance of keeping salaries proportionally balanced throughout a company – especially when a company is growing and accumulating wealth:

“As a business owner, I understand that you can not cave to every whim your employees have, but instead of prioritizing balloon money bombs for executive persons, make the wealth of the company available to the people that make it happen. Smaller executive bonuses in favor of increased bonuses / benefits / perks for the workers/moving parts of a successful company.”

Is salary important? Yes, it is, but there are other forms of compensation worth noting.

The different types of compensation

Intangibles can include company-wide recognition, advancement potential, the ability to work remotely and on flexible schedules, mentorship, network building, and so on.

Even then, support from their employer – whether it’s in the actual day-to-day work or moral/emotional support – are at the bottom of both lists. The traditional core elements of having a job (compensation, career opportunities, job security) continue to be top of mind.

The motivators are clear – workers in the United States want and need to make more money. Salary is important. Full stop.

There is just one area of the intangibles that deserves a deeper dive: work flexibility, which ranks highly across all these lists. We’ll go deep into that area in the next chapter.

The post Is salary important to workers? Bet your bottom dollar it is appeared first on Recruiting Resources: How to Recruit and Hire Better.

Should you include salary in a job description? Let’s talk!

Keith MacKenzie — Mon, 06 Dec 2021 14:39:34 +0000

Every candidate is on the lookout for something different, and it’s impossible to tick every box. After running internal and external research, the ACELR8 team noticed that one box interests candidates more than any other part of the job description – the salary.

There are very few reasons for a candidate to apply for a job if the salary is below their threshold:

The real question is, if you want to attract top talent with high potential, should salaries be included in the job description?

As an embedded recruitment firm, the ACELR8 team works with a wide range of clients from a variety of industries. Despite this variety, there are many common themes that play a big part in creating a solid hiring strategy. One of the most well-worn paths is the discussion on salaries.

Should salaries be mentioned in job descriptions? Should it come up only in the interview stage?

Or, should they be not mentioned at all until the job offer stage?

It’s a hot-button topic right now and you’re looking for answers. To learn more, ACELR8 polled its talented team of recruiters to find those answers for you:

A third of our recruiters maintain that salaries should be shared only later in the hiring process, while twice as many believed the opposite.

To learn more, ACELR8’s Head of Marketing, Milda Skladaityte, posted the same question on LinkedIn. Here, things were a little different.

Out of 582 votes, an overwhelming majority of 91% wanted to see the salary in the job description.

This is an interesting finding, because it shows that there are completely opposing views on the market. At first, this may seem off the mark, but when you look at the reasons why, the issue becomes a lot clearer.

So, we spoke with Sara Bent, the recruitment lead at Hotjar, to learn more about Hotjar’s opinion on disclosing salaries.

“When I first started with Hotjar, I set us up with a Glassdoor account. The interview reviews that came through on it quickly highlighted one main area causing a negative candidate experience,” Sara explained.

“With candidates who we wanted to move forward with beyond the initial application stage, we’d email them to ask about their minimum compensation expectations. Our intention with this was to be sure that we would only move forward with candidates who fit within our compensation banding; we wouldn’t want to waste a candidate’s time if we knew we couldn’t match their expectations.

The Glassdoor reviews, though, made it clear that a lot of candidates felt we were doing this to ‘lowball’ them – plus these extra emails could add days to a candidate’s recruitment journey.”

That conclusion motivated Sara to be more open about salaries in job ads. And the response was quick and favorable.

“So, based on candidate feedback and guided by our own core value of building trust with transparency, we made the decision to immediately start posting all compensation ranges onto job descriptions. If we use the Glassdoor reviews as a measure of success, this change did seem to immediately make a positive difference to our candidates’ experience.”

Salaries are a tough topic to negotiate and discuss, and it’s often easy to scare away or disincline candidates. What Sara found, though, was that asking for feedback and adjusting processes to suit the candidate’s expectations was a quick, insightful, and easy step to take.

To learn more about people’s reasonings behind salaries and job descriptions, we asked our recruiters more questions. Let’s start with why many recruiters believe salaries should be disclosed in job descriptions.

Salaries in job ads: the argument for

Another recruiter made it clear – it’s about being transparent.

“I believe that transparency in hiring is the most important value. I believe that if we are hiding the salary, we know we pay less than we should or we are not transparent internally. Also, it may be that people in the company earn less than we are now offering to the new candidates.”

Transparency is a vital aspect of a well-run business. If everyone is on the same page and respects each other, the culture of the company will undoubtedly improve.

By disclosing the salary at the very beginning of the process, you start off on the right track – by creating trust. As said above, this not only allows the potential hire to understand their financial position, it can also give current employees an insight into the salary structure of the company.

This, in turn, mitigates any risk for attrition.

Moving with the times

Another important factor to take into consideration is that approaches and attitudes to disclosing salaries have changed considerably in recent years.

Another recruiter, Jonathan, explains:

“It’s something of an archaic taboo in my view,” Jonathan says. “Pay is often tied in with feelings of self-worth, so to openly discuss it manifests as either an ego boost or feeling undervalued.”

Candidates are also at a major disadvantage when it comes to salary disclosure, he adds.

“What has happened is people no longer have any real grasp of salary banding from industry to industry or role to role. The only people who know what the correct salary expectations broadly are, are recruiters. People generally have no idea whether they are under or overpaid…who can they compare to?”

And opening up that discussion from the get-go can make significant positive differences – not just for the individual candidate but overall benefits as well.

“If salaries, stock options, etc. were openly disclosed, people would then have a critical piece of intelligence required to make important career decisions. We would all be able to clearly see what is happening in the marketplace. It would also oust any disparities on account of gender, age, race or religion.”

These are some excellent points that lead to a much larger issue of diversity, equity, and inclusion. By creating a more transparent salary structure, everyone, including outside candidates, gets a better understanding of their financial self-worth.

In all, disclosing salary expectations allows for a level playing field and a transparent hiring process that ensures that time is not wasted and equal opportunities, both internally and externally, can be achieved.

Let’s look at the counter-argument. While disclosing salary does save time at the outset, but there are many eye-opening implications from our recruiters.

Salaries in job ads: the argument against

“I think companies have much more than a salary to offer … a remote-work policy, stock option, different benefits,” says another recruiter in the network. “It’s a complicated topic because I also see a potential benefit in having the salary on the job description.”

The modern company has to offer more than just a good salary. Remote-first working, equity options, and a whole host of other benefits can be just as important to potential hires.

For example, an early-stage startup will often not be able to compete with an established company for talent due to its lack of resources. However, incentives such as equity, bonuses, and remote work can level the playing field. Disclosing the salary may skew the candidate’s impression of the full value of the position.

Another recruiter shared three reasons why disclosing the salary may be problematic:

The salary can put people off of applying if it is too low or below current salaries. Then, the company also gets a reputation in the market for underpaying.
It can encourage juniors or unqualified people to apply to more senior roles if they are attracted just by salary and the bands are too high.
It can run into situations at the end of a process if you offer 80k but the candidate sees the band pays up to 90k.

Overall, disclosing the salary puts the ball in the court of the candidate. It can lead to a glut of unsuitable candidates applying for the role, can affect the reputation of the company, and can also make closing the deal significantly more difficult.

Competitive issues

Another issue that may arise is that competing companies will see your offered salary and now know the benchmark for out-offering you.

Yet, while disclosing all your cards early in the game certainly gives the other players an advantage, it also avoids spending time on candidates who are unsuitable for the role.

There is also the issue of under-offering. If a company discloses their salary offer in the job description and it is much lower than the expected amount desired by the client, they won’t bother applying for the job.

In all of these situations, it’s important to remember to take things on a case-by-case basis. Every employer is different, and one rule does not apply to all. Take the time to understand what your company really needs, and approach the salary dilemma from there.

The issue of salary trends

The other aspect of the salary issue comes into what we’ve discussed previously: salary trends are changing fast.

2020 and 2021 have been two of the most paradigm-shifting years in hiring trends, communication methods, and work environments. A large population of the world had to change their work habits, and so they have become used to a certain style of employment.

Now, many people are leaving old jobs which do not adhere to their desired lifestyle, creating a boom in candidates and employers vying for position. This has led to a wide series of changes, including in the world of salaries and salary estimates. Again, we asked recruiters what they thought.

To the future: salary trends in 2022

“Aside from a competitive salary, companies need to offer competitive benefits to stay ahead,” says one recruiter. “These can include remote work, hybrid, flexi-work, company equity, family days/additional sick days, mental health days, remote office set-up allowance, learning and development budget and room for career growth.”

As above, salary is not the one carrot which you can use to lure a great candidate into your company. After COVID, people have higher expectations for work-life balance and the availability of remote work – this is documented along with the importance of compensation in the Great Discontent study released in September 2021.

By creating a progressive offering and work environment, you can attract exceptional talent that is looking for those freedoms and benefits.

Another issue in regards to the shift of work to remote is the issue of salaries. Hiring has gone global – EU-based candidates that would recently have had no chance of getting a role with a German company, for instance, can now count on being considered.

One recruiter explains:

“A thing I have noticed is that as remote work soars, candidates who are working remotely for San Francisco/Silicon Valley start-ups are getting paid San Francisco salaries and they then will expect this level of compensation in Europe.”

Now, when you’re hiring, you have the entire globe as a talent pool. This issue is only going to become more widespread as time goes on. The world is more interconnected than ever before, and it is up to you to learn how to adjust your hiring strategy to counteract this.

Learn more about the global talent market in our podcast or read about it here.

Choose wisely

In the end, the choice of whether to disclose the salary or not is up to you and your hiring team. But, hopefully, this article has helped to shed some light on the pros and cons of each situation.

A high salary posting can certainly attract excellent candidates, but it’s important to ensure you can foot the bill when it comes to the offer stage. Additionally, the only way of maintaining this appraisal is to create a transparent salary structure throughout your company. This avoids issues of unfair pay, employee morale problems, and general miscommunication.

When it comes to keeping your cards close and not mentioning the salary, make sure that you are supplementing that with another attractor important to candidates. Excellent candidates will only respond to well-thought-out and attractive job descriptions. Promote your company values and ambitions to entice top talent into the application process before they even think of the salary.

Again, in the modern world of recruitment, salary is not everything; other benefits can become even more important to candidates – especially issues such as remote working or flexible hours.

Take the time to really understand the job position – who is the ideal candidate? Will they respond better to a high salary or company equity? Are there other benefits which haven’t been considered yet?

The world of recruitment is dynamically changing, and it’s important for each company to take a deep, introspective look at how they want to hire. Jobs descriptions need to be more than just salary postings now. Although, statistically, it may seem as though the public wants to make sure salaries stay present.

Above all: stay transparent, don’t overpromise, and remember to keep an open mind.

Lewis Mc Cahill is the Content Marketing Manager for ACELR8. With over half a decade of experience, he has worked with a range of major brands and upcoming startups alike. With ACELR8, he is helping push the Embedded Recruitment Model forward with the help of the rest of the marketing team.

The post Should you include salary in a job description? Let’s talk! appeared first on Recruiting Resources: How to Recruit and Hire Better.

Salary transparency: Good thing for employees – and employers?

Suzanne Lucas — Tue, 01 Mar 2022 14:10:47 +0000

You can leave your mortgage payment a secret. (We can all look up how much you paid for your house, anyway.)

How taboos change

Can you recommend a therapist? Have you had therapy?

Those questions would have been shocking and rude in previous times, but Gen Z has no problem talking about mental health and seeking therapy or medication. How did this happen?

Very Well Mind theorizes, “Gen Z has grown up in a world where it’s normal and considered natural to get treatment for psychological problems. They don’t know any different, and so they don’t attach any bad feelings to speaking about it.”

Gen Z alone doesn’t deserve the credit for being open – it was also the hard work of previous generations that worked to remove stigmas around discussing mental health. The result is a generation with the ability to talk about these things openly.

We are with salary now where we were 30 years ago with mental health. People are starting to talk about it – in fact, a Glassdoor survey finds 70% of employees across seven countries say salary transparency is a good thing.

It’s still a taboo for many, though. People are working hard to change that, though.

New laws around salaries

Some of these taboos around pay transparency are being broken by state legislatures. For instance, Colorado and New York City both have laws requiring salary ranges on job postings. Companies worked around the Colorado law by advertising in their job ads that remote employees could work in any state but Colorado – because they didn’t want to share salary information.

New York City’s law didn’t go into effect until May 15, 2022. Even then, with so many big companies already located there, it’s not likely to prevent companies from going the Colorado company route and offering remote positions in the Big Apple.

Twenty-two states have bans on asking job candidates to produce their salary histories. That may seem like a step backward for salary transparency, but the opposite is true: when companies can’t rely on a person’s previous salary they have to create their own salary around market rates. Knowing previous salaries helped employers to maintain disparate pay and gave companies strong reasons to not want people to speak about it.

For example, if Bianca was making $40,000 at her last job and Dimitri was earning $50,000 at his last job, and you offer them both a 10-percent increase, you can pat yourself on the back and say you’re fair. But, deep down, you know that is not fair.

By not allowing employers to know previous salaries, they are more likely to offer a reasonable wage to both. Without that salary gap, they are less inclined to care if Bianca and Dimitri compare salaries.

Employees have the right to talk salaries

The National Labor Relations Act (NLRA) in the United States protects the rights of employees to talk about their salaries with their coworkers. This is called “concerted activity,” and the National Labor Relations Board doesn’t look kindly on companies that punish employees from talking about it.

That doesn’t stop companies from attempting to ban salary discussions. Even big names like Apple and Google get nervous when employees discuss salaries. But talk you can – just perhaps not on company servers.

With the ease that people can share information now, it seems more and more likely that these outlier spreadsheets will become the norm.

People leading the pay transparency shift

Alison Green, who writes the Ask a Manager Blog, asks people to share their salaries. The result is a sortable spreadsheet with 24,000 responses that can help you determine your own market worth.

Also, the Global Editor of Business Insider, Nicholas Carlson, announced a new project to help demystify salaries:

Insider is launching a series that demystifies people's salaries, and we need your help https://t.co/lsaYePUyEz

— Nicholas Carlson (@nichcarlson) January 25, 2022

But, when asked to share his own salary, he balked, responding:

“Fun question! I’d rather not say publicly for lots of practical reasons I’m sure you can imagine. This feels a little wimpy but also prudent. I think I would submit it to some third party I could trust to keep it anonymous and average it with other people in roles like mine.”

https://twitter.com/beckpeterson/status/1486054955718950914

We do, it seems, want everyone else to go first. I’ll tell you my salary if you tell me yours, but you better go first!

Well, somebody needs to go first.

How is recruiting and hiring affected?

People push back on companies that won’t share salary ranges up front. With many areas facing a labor shortage, quality candidates won’t waste their time on companies that won’t open up about salaries – whether up front or early in the recruitment process.

Even if you’re not hiring in Colorado or NYC, you will increase your candidate pool by being honest – unless your salaries are too low.

Plus, it saves everyone time and effort if you speak up first. It also cuts down on the potential for discrimination and bias.

Recruiter Mercedes Johnson found out the hard way how people won’t stand for hidden salaries that result in underpaying people. She wrote a Facebook post that stated:

“I just offered a candidate $85,000 for a job that had a budget of 130K. I offered her that because that’s what she asked for & I personally don’t have the bandwidth to give lessons on salary negotiation. Here’s the lesson: ALWAYS ASK FOR THE SALARY YOU WANT (DESERVE), no matter how large you think it might be. You never know how much money a company has to work with. #BeConfident”

The response was not “Oh yes; I should negotiate better,” but instead went on the offensive against Johnson. In short – the candidate shouldn’t have to be confident in negotiations. Rather, the onus should be on the company to be upfront about the pay for a job.

There are 2 types of ppl in this world smh pic.twitter.com/dlHA3rXJWB

— BOOBERELLA (@TE_AMO_COURT) January 29, 2022

Johnson learned her lesson – and was let go from her role – but companies that try to keep salaries hush-hush may find themselves on the wrong side of Twitter or /r/antiwork. It’s not a nice place to be.

Let’s all be open about how much we’re being paid for a job. You tell me yours, and I’ll let you know mine.

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Salary based on location versus pay for value: which is better?

Suzanne Lucas — Tue, 15 Mar 2022 14:00:38 +0000

Way back in the dark ages of 2019, it was pretty obvious how you should pay people, and location was a big part of that decision calculus. Everyone understood that if you lived and worked in Silicon Valley, your salary would be higher than if you lived and worked in the Red River Valley (Minnesota, if you’re wondering).

Then in 2020, many people took their work home, and some moved from California to Kentucky.

But their job didn’t change, and the pandemic continued for too long, and now, no one wants to come back to the office. Just what do you do about salaries now that the employee can choose their own cost of living?

Since salary is top of mind for many active and potential jobseekers, it’s an important discussion.

So, let’s look at the options you have as an employer when considering salary structure:

Option 1: Ignore location when considering salaries

Historically, all salaries were local because everything was local. Your clients lived next door, and you couldn’t charge more than they could pay. Today, whether you are in manufacturing or app building, your clients could be anywhere across the globe.

So, it makes little sense to determine a salary based on where someone lives when their labor brings revenue from elsewhere. (There are, of course, strictly location-based jobs: plumbers, retail workers, dentists, etc.) But even a manufacturing plant could be supplying products for New York City just as easily as it supplies products for Nebraska.

With these thoughts in mind, you calculate salaries based on the value the person brings to the company – regardless of where they sit. Whether in an office or from home, it’s all about value.

This can be difficult to calculate – with a salesperson, it’s easy: it’s a percentage of how much they sell. It can also be easy for a manufacturing plant – how much product do they produce? But what about your HR person? Your IT person?

While good people in these positions bring value to the company, that value can be hard to calculate. Just how much money does your HR person save you by ensuring your company complies with employment laws? The answer could literally be millions. But, no one calculates it that way.

Fortunately, you don’t have to do too much fancy math to figure this out. Take your current salaries and advertise new positions based on those salaries. If qualified people apply, great! You’ve found the right compensation. If only unqualified people apply, bump it up. If you get 100 overqualified people applying, you’re probably offering too much.

Option 2: Location is everything

Google said they would vary salaries based on location as part of their return-to-work program. If you stay in California, you’ll make more money than if you relocate to Texas.

You can buy a much bigger house in Texas for a lot less money than your tiny San Francisco apartment, so people are pretty okay with that.

But, what if you currently operate out of Texas and say, “Everyone who wants to can work from home!” and then someone moves to San Francisco? Most companies will balk at increasing a salary when someone moves. It’s worth noting that Google’s headquarters are in a costly location (San Francisco) so they save money by following this plan.

Towns that have been inundated with big-city refugees are tired of watching their housing prices soar as big-salaried Californians snap up properties. It can be devastating for local groups.

Option 3: Think hybrid

The best solution is a hybrid one: you need to consider both location and national salaries for jobs – especially those in high demand that can be done remotely. While it may not seem fiscally responsible to pay more than you absolutely have to, the Great Resignation means that you may have a hard time keeping people if you’re not willing to be on the high end of compensation market rates.

People who need to be onsite – either full time or a couple of days a week – will need to live close by and you can look towards more localized salaries. People who can literally live anywhere won’t want to take a lower salary just because they’ve moved away.

Be very clear about your salaries when hiring. And be honest about remote working opportunities. Candidates don’t like the bait-and-switch technique where you advertise the position as “remote” but then switch that to in-office or even hybrid.

And, as far as keeping costs down, remember, if an employee is working 100% remotely, you don’t need to pay for space for that employee. You’re saving money on office costs – pay that forward in the form of higher salaries.

Shifting salaries, shifting locations

This may all become a moot point as local market rates start to disappear – at least for jobs that can be done remotely. Even if you require your accountant to work onsite, you may find that you’ll have to pay the same amount as someone in a wealthier area would. Right now, salaries are changing, and we’ll see how it plays out.

And while people clamor loudly for remote work opportunities, there is no guarantee that those preferences are fixed. When it’s just you and your spouse working from home, it can be pleasant. Add three kids and a dog, and you just might look forward to the office every day.

Related: What about salary transparency? See Suzanne’s take on that as well.

And people are moving – from California, Illinois, and New York (among others) to Idaho, Florida and Texas. As things shift around, the most important thing is for you to pay attention. If you struggle to hire or retain staff, you’ll need to change how you do things. If you’re open with your salary ranges and working conditions and get plenty of applicants, you’re doing it right.

Remember, if you wait to adjust until some expert tells you what you should do, you’re too late. And that may mean paying based on location and it may mean paying on skills only. You’ll have to pay attention and get ahead accordingly.

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Navigating the nuances of salary negotiations – how to do it right

Keith MacKenzie — Fri, 27 Oct 2023 15:14:56 +0000

If you’re in hiring – or even managing teams outright – you’ve probably been pulled into a salary negotiation with a candidate or existing employee.

As it happens – salary negotiation goes far beyond one side offering X and the other side asking for Y, and then (hopefully) meeting in the middle.

It’s more nuanced than that. And it’s no longer just an HR task – it’s now a strategic element of overall employee satisfaction and company culture.

Trevor Bogan is regional director at the Top Employers Institute in North America, and he knows a fair bit about this. In an email Q&A, he emphasized practical strategies for handling salary negotiations, a process becoming increasingly complex in today’s workplace especially as salary transparency becomes more part of the norm than before.

Haggling is hotter than ever

First off – salary negotiations have become more common in recent years, Trevor says, pointing to “increased awareness around things like the impact of lifetime earnings, wage gaps, and economic factors like inflation and recessions.”

In other words, today’s workers are more market-aware and market-savvy. They’re not shy about their own self worth and what they feel they deserve to make for their work.

This shift presents distinct challenges for you as employers. Trevor points to three main ones:

Budgetary considerations – where you need to balance financial health and competitive offers
Fairness and equity considerations – where you need to ensure parity across roles
Competition considerations – where you need to match or outdo market rates to attract top talent

So, how do you, especially those in the SMB sector, navigate these challenges without compromising company stability?

Openness is key

Trevor emphasizes the importance of establishing open compensation policies, even and especially when handling delicate topics such as salary and how it’s determined.

Transparency in how salaries align with broader company parameters eases employees’ minds, he notes, ensuring they feel valued rather than just another budget line.

And don’t think of salary negotiations as a simple hiring-phase hurdle.

“[Salary negotiations] can happen in different scenarios, but the most common are during onboarding, when both applicant and employer are establishing the work relationship; during performance reviews where employees can go over their contributions to the company and their professional growth over the time being reviewed,” Trevor notes.

When you recognize these periods and you’re transparent about it, this helps you prepare and manage expectations on both sides.

Strike that balance

Employees do expect higher salaries, which is normal, especially when they’ve looked at the market and they see that their experience or education level justifies higher pay, Trevor says.

Which brings to mind one negotiation delicacy: how do you maintain employee engagement when you can’t meet their salary expectations?

One word: communication.

“Listening and acknowledging concerns is important as is expressing appreciation for the contributions they have made to the team or company,” Trevor says. You can’t always meet salary expectations – and often, you can’t immediately do so – but it helps to ensure employees feel heard, respected, and confident that their contributions aren’t overlooked.

“Listening and acknowledging concerns is important as is expressing appreciation for the contributions they have made to the team or company.”

The present economic reality, however, is that many companies’ hands are tied financially. They just can’t afford to give out raises – in fact, a recent ResumeBuilder.com survey finds that one quarter of companies will not be giving out raises in 2024, and a full half say the cost-of-living adjustment will be less than 3%.

That’s a tough situation for many employers and employees alike. So how do you navigate that when you’re pulled into a conversation about salary? Trevor suggests being transparent about budgetary constraints and actively involving employees in career growth discussions.

“Scheduling regular check-ins will assure the employee that they are valued, and that the salary conversation will not be swept under the rug,” he explains. Such steps help in mitigating disappointment and potential disengagement.

You also must incorporate standard adjustments for inflation – and monitor the overall economic trends as you do it.

“Identifying an inflation index that is relevant to the location or industry the company sits in is also important in this determination,” Trevor states. This methodological approach ensures that your adjustments are justifiable and consistent, not arbitrary.

What about global and multinational companies? There’s an added layer of complexity here when looking to resolve salary disparities across regions. Trevor recommends looking for the balance between global consistency and local relevance – which requires a formal policy.

“The first step is to create a global compensation strategy that will consider the local markets, company budget, and equity across all regions,” Trevor says, highlighting the need for continuous local market research and regular policy reviews.

The diversity aspect, of course, cannot be overlooked.

“Employers must be diligent in collecting and analyzing salary, bonus, and benefits data in the categories of race, age, and gender, amongst other influencing data points to identify any disparities that might be present,” Trevor says. Proactive measures, including pay equity audits and promoting diverse leadership, reinforce a culture of fairness and inclusivity.

And finally, being open about salary across the company is becoming more and more standard, even if it’s controversial. Trevor notes that salary transparency is being adopted by more and more organizations regularly.

“This has proven to be effective in attracting and retaining top talent as it creates a culture of trust and equity between employers and employees,” he says.

However, he warns, salary transparency still comes with challenges, such as potential privacy concerns and internal discontent. The decision to embrace transparency should align with your organization’s culture and strategic goals.

Transparency, policy, and strategy are musts

All in all – be transparent and ensure you have a policy and clearly thought-out strategy when handling salary matters. It’s a nuanced art requiring balancing financial realities with employee expectations and market demands.

By embracing transparency, equitable practices, and open dialogue, you can turn these negotiations into opportunities for mutual growth and trust-building. After all, at the heart of every salary negotiation is a person seeking validation of their worth – an aspect every employer should recognize and respect. Trevor at Top Employers Institute would absolutely agree on this.

Need more? Our email template on salary can help: Salary negotiation with candidates email template

The post Navigating the nuances of salary negotiations – how to do it right appeared first on Recruiting Resources: How to Recruit and Hire Better.

A chat about salary transparency: the shift towards open discussion

Keith MacKenzie — Fri, 23 Feb 2024 17:15:27 +0000

Recent data shows that career-driven professionals want salary transparency when they’re looking at new opportunities. Stigmas and taboos around public sharing of salaries between colleagues and in job descriptions are increasingly going away.

Does it matter for employers? Absolutely. Your talent attraction and retention metrics will be impacted if you don’t plan for this.

So, to help you get ahead of any potential issues around salary transparency, we talked with Amanda Augustine, a certified professional career coach and resume writer, and the resident career expert at ZipJob, a professional resume service.

Amanda had great insights to share. Let’s get into it.

Salaries are no longer taboo

Recent developments highlight a significant shift towards transparency in the workplace. A ZipJob survey shows that two-thirds (65%) of career-driven professionals are willing to reveal their salaries when asked by a colleague.

And 28% of professionals would not be offended if asked about their salary.

This highlights a destigmatization surrounding the topic.

“We are certainly moving more towards this workplace that requires [and] demands greater transparency, openness, even vulnerability across all aspects,” says Amanda.

Amanda points out that this shift isn’t just happening in social circles. It’s increasingly underscored by legislation across the United States; as of January 2024, 30 states or localities have laws mandating employers to disclose pay ranges, with that number likely to keep growing.

And as of 2023, nearly 83.6 million workers in the United States may be covered by pay range transparency laws, according to the National Women’s Law Center.

Governments have their own pilot projects underway in this area. In March 2022, the UK government launched a pay transparency pilot scheme encouraging companies to disclose salaries in all of their job postings.

And in 2023, the EU Pay Transparency Directive was passed. Employers with 100 or more employees are required to publish information on the pay gap between female and male employees, as well as share information on how pay is set, progressed, and managed.

Suffice it to say – there’s a lot of ‘official’ movement in this area.

The shift in the zeitgeist

When asked why all this was happening, Amanda pointed to the increasing influence of younger generations on workplace expectations.

“Younger workers have grown up in the era of social media and sharing, value transparency in all aspects of their lives, including compensation,” Amanda says. “Their expectations are shifting workplace norms, compelling organizations to adapt.”

It’s part and parcel of a larger shift as well, she adds.

“The #MeToo, Black Lives Matter, all those things; we know that salary transparency also shines a spotlight on any major wage gaps that may occur across various sectors of your population, of your workforce, whether that’s ethnicity or race, whether that’s gender,” Amanda adds.

“Those things tend to be more apparent – and there’s a greater need to then address them,” she explains.

“So it’s not a surprise, at least in my opinion, that we’re seeing a lot more force or demand on this transparency because it intersects in so many different ways with what’s been going on in the workforce for the past three to four years.”

“We’re seeing a lot more force or demand on this transparency because it intersects in so many different ways with what’s been going on in the workforce for the past three to four years.”

The reprioritization of salary

With this comes a shift in job priorities – for example, Workable’s Great Discontent survey found that 69% of respondents would go to a new job if they had a better salary.

“For the longest time, company culture had overtaken and eclipsed compensation, but we have started seeing a shift back towards compensation in the last few years.” Amanda adds that it’s not a huge shock, nor is it about the actual monetary value of transparency. It’s a precursor to career paths and expectations.

“It’s an overall transparency. How are people being evaluated? And is it consistent across positions?“

The remote work factor

Amanda suggests that the increase in remote work may correlate with the increase in transparency around compensation. Previously, she says, companies were able to offer more in way of culture and community when workers traditionally worked on location – but that’s lacking in the remote sphere.

“Not every company’s figured out how to do that in a remote setting,” she notes. And the same applies for full-time remote workers as well – Amanda puts herself in the shoes of someone who works remotely:

“I don’t really care about the culture anymore. I’m not joining in on the activities. I’m not doing that sort of stuff. I don’t want to sit through another virtual happy hour.”

And that brings us back to salary: “I want to make sure I’m getting paid what I’m worth.”

A multifaceted challenge for employers

Even for those fully bought into the value of full salary transparency, the transition can be potentially challenging territory for employers accustomed to keeping salaries and compensation ranges in the back room.

Pay gaps, often unintentional yet still existent, will inevitably come to light. Uncomfortable disconnects will surface between a new hire commanding a higher salary than a veteran employee who’s been with the company for a long time.

The same discomfort applies for the lack of alignment in salaries across similar positions, which exposes potentially illegal bias across the company.

Amanda emphasizes that companies need to be thinking about this.

The power of knowledge

“Employers can no longer sustain substantial gaps in pay without repercussions,” Amanda says, highlighting the potential impact on recruitment as potential job candidates learn about these pay imbalances via employer review sites such as Glassdoor – again highlighting the transparency and sharing of information.

“Candidates and employees are becoming more informed, and these disparities can greatly affect an employer’s reputation and their ability to attract top talent.”

“Candidates and employees are becoming more informed, and these disparities can greatly affect an employer’s reputation and their ability to attract top talent.”

Also, companies can no longer control that narrative. Once it’s out there, it’s out there for the world to see.

“You see it with social media, right? Not that I’m condoning this, but people are willing to record any and everything that happens at work and share with whosoever eyeballs they can find online. We’re also seeing more of that. I just don’t think they’re going to be able to continue having substantial gaps in pay in the future,” she says.

Increased leverage for employees and candidates

Retention will be impacted since candidates and employees have greater leverage with this extra information on their hands.

“We’re going to see a lot of people trying to negotiate to close those gaps. And if they’re not finding an employer who’s willing to address that or make an effort to close that gap, people are going to start looking elsewhere.”

Even if a company is fully balanced in salary up the ladder and across positions, talent attraction will change – and a SHRM report shows this.

“[In the SHRM report], 82% of people said they are more willing to apply for a role if the pay range is listed. And 74% are less likely to apply for a job if it doesn’t list that information.”

So, what can employers do?

So, clearly, there are repercussions either way. If you open up the information coffers, pay gaps come to light and issues will inevitably arise. Keep it under wraps, and it’s a bad look for your employer brand.

So what do you do as an employer? You’ll have to power forward – but you can do it the right way. There are clear benefits to transparency – for employers, it’s about fostering a culture of openness not just in compensation but in career progression, which is also encouraging information for employees.

Companies can also procure salary benchmarking tools and softwares which will help them stay competitive when hiring and retaining top talent.

It’s all in your hands as an employer, Amanda says.

“It’s all about how you approach someone and how you pose these questions and how you conduct these conversations – that will decide if it’s a positive or a negative outcome for everyone involved.

“Because there certainly is power in knowing what everyone else is being paid or what they’ve been told and sharing that information.”

Rome wasn’t built in a day – but things are changing.

“I don’t think it’s going to happen overnight,” says Amanda. “I don’t think we’re going to have this magical change, but I do think it’s going to move more towards that transparency direction. And we’re going to continue to see a greater comfort level amongst employees talking about these issues.“

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What happens when AI screens AI? 4 insights from experts

Alexandros Pantelakis — Tue, 31 Oct 2023 14:18:31 +0000

Talking about the effectiveness of AI and trying to forecast the future of it is not an easy task. It is a rapidly evolving space with many twists and turns, and it’s important to listen to those in the know.

AI is becoming a part of our professional lives, but what happens in hiring? What happens when candidates utilize AI tools to apply for a job and another AI tool will conduct the first screening?

To discuss this, David Näsström, co-founder of the reference checking platform Refapp, and Emira Blomberg, Refapp’s CSO, sat with Workable CEO Nikos Moraitakis and Hung Lee, curator at Recruiting Brainfood, in a webinar titled Hiring for Potential: When AI is screened by AI, then what? on October 25, 2023.

A quick side thought: the best-case scenario is that AI optimizes the process for both employer and candidate. Worst-case scenario may be the recruitment version of the old Stephen Wright joke about putting a humidifier and dehumidifier in the same room and letting them fight it out.

Jokes aside – here are the key takeaways to put you in the discussion.

1. Both employers and candidates are using AI tools

Recent surveys have shown that generative AI is being used by both candidates and companies in the hiring journey.

This situation has implications on both ends of the hiring spectrum, questioning whether the overlap of AI in both applying and screening processes will lead to better recruitment decisions or merely speed up the hiring process without improvement in quality.

“AI screening can analyze information so quickly. AI can screen hundreds of resumes in a matter of minutes searching for relevant experience or other useful qualities. Recruiters can identify candidates faster,” Emira states.

There’s a predicted surge in applications as candidates leverage AI to perfect and automate their applications. This can dilute the significance of known personality indicators making it harder for recruiters to identify authentic candidates in a vast pool of applicants.

“Candidates are given all kinds of tools in order to boost their own application process, like for example, ChatGPT with the cover letters, with the resumes,” says Emira. “So it is a really weird scenario that we end up with AI, screening AI, and I’m really conscious [in asking]: ‘Will this lead to better recruitment decisions?’”

This raises the possibility of needing AI-to-AI interactions to counteract this deluge or rethinking recruiting processes.

“I think what we also must focus on not just [trying] to shorten time to hire, because that’s not the KPI to rule them all. That’s one KPI, right?”, says David.

There’s also a highlighted difference in motivation between recruiters and job seekers to adopt AI, with job seekers being much more incentivized to use every tool available.

“We’re still at the very early stage of this. And with every new technology, initially you have the technology and you have people using the new tool to do what they were doing before.” adds Nikos.

2. A return to ‘real human’ interaction

The potential for AI to mimic human-like behavior and tasks, such as language translation, prompts a departure from traditional values in recruitment.

However, it should not be surprising if in-person interviews return due to trust issues and a potential re-evaluation of what matters in recruitment.

“The trust factor is going to be eroded with the ubiquitous use of AI. If we are still in the business of hiring people for growing a team, for instance, and we care about that, then yeah, we can see that the analog processes come back in.” Hung says.

“The trust factor is going to be eroded with the ubiquitous use of AI.”

While AI can handle much of the recruitment groundwork, human-to-human interactions may become a premium, valued experience especially for specific roles where soft skills play a huge part.

Nikos brings up the example of plastic, which was perceived as an invention that would end craftsmanship, but it didn’t:

“Maybe the recruiting process is going to change to be a process that is a lot more software, a lot more automation, a lot more filtering and getting machines are going to battle it out until we get to the point where we talk.”

In short, there remain many blurry lines in how AI in hiring will evolve even in a year from now.

3. The impact of AI is sometimes overestimated

Despite the advances in AI, maintaining a personal touch in the recruitment process remains crucial. Relying solely on AI could diminish the candidate experience. That is because this technology is still new to many of us.

Plus, the pace and impact of AI in hiring are sometimes underestimated or overestimated.

“You feel that, for the first time, you are witnessing something that is going to be unstoppable. But, like all technologies, it is also going to follow the same cycle of adoption. This is not about the AI itself, but rather about the way we purchase software, use it, incorporate it into our processes, lives, habits, and all the other good stuff,” says Nikos.

Emira shares a quote from Roy Charles Amara: “We tend to overestimate the effect of technology in the short run and underestimate the effect in the long run.”

“We tend to overestimate the effect of technology in the short run and underestimate the effect in the long run.”

On the other hand, Hung believes that there is a lack of analysis: “When you’re looking at technology innovation, oftentimes we mistake analogy for analysis.”

But what does it mean for candidates?

“What’s going to happen in the short term is that we’re [going to] start getting weaker and weaker signals from some parts of the process so we’re going to have to pay more attention to other parts of the process,” David says.

4. AI needs to be the enabler for human touch

We borrowed this phrase from a chat comment that better suits this takeaway. There’s a call for AI to be an enabler of better human interaction rather than a barrier.

While AI can handle the efficiency side of recruitment, the human touch is essential for providing experience, value, and ethics, often overlooked or undervalued in the current recruiting process.

“We always valued efficiency more than the human touch. Maybe here’s an opportunity, because AI may be able to basically take care of the efficiency, and the human touch comes in order to provide the experience, the value, the ethics, perhaps that have been missing from recruiting. So, I think there is an optimistic vision of how this ends up.”, Hung says.

“We always valued efficiency more than the human touch.”

“What are we supposed to think about when we actually implement AI? In our processes, these kinds of philosophical questions are untouchable by AI, because it’s human, right? And those are the discussions that we are not having. And that makes me feel super stressed out, because these are the discussions that we should be having,” Emira says.

However, there’s a cautionary note that recruiters must advocate for the value of this human touch, or the industry might get swayed entirely by the allure of efficiency brought by AI.

On the contrary, a solely tech-driven approach might lose sight of the personal, “human” side of hiring.

“I keep reminding myself that these things usually take enough time that we can adapt because they adapt with us. When we see a technology, we assume that everyone is going to instantly be motivated to use it in the best way like they did,” Nikos says.

“These things usually take enough time that we can adapt because they adapt with us.”

The outcome

Wrapping up on the takeaways, it’s clear that technology can’t replace the unique human connection in hiring. While there’s a hype around AI, it’s essential not to overestimate its impact.

For HR professionals, the challenge is guiding AI’s role so it supports, not supplants, the traditional recruitment process. Let’s view AI as a tool in our toolkit, not the sole game-changer.

After all, it’s not going to kill us like the T-1000. Hopefully.

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Officevibe / Workable – Webinar takeaways – Tips to hire and retain talent in turbulent times

Gina Theodorou — Fri, 12 Aug 2022 14:10:00 +0000

Our guest speaker Rob Long (Chief Human Resources Officer, Workable) and Jackie Sirni (Senior People Operations Specialist, Workable) took to the mic alongside Julie Jeannotte (HR Expert & Researcher, Officevibe) to share their insight and personal experiences.

Below I’ve distilled my favorite actionable takeaways from Jackie and Rob.

1. Put yourself in their shoes

When you get on the phone with them and you’re speaking to them for the first time, Put yourself into their shoes, create a personal connection, and understand what they’re looking for in the role. Make sure they feel comfortable and understand what their journey’s going to look like.

2. Be their first friend

Remember you’re the first person they talk to. You’re the person they’re emailing asking when they’re gonna be onboarded and reminding yourself once a new hire comes on board that you are, that person for them is so critical. Example: Even if it’s just a Slack on day three to say how’s it going? It creates a warm positive feeling. They know that you’re still thinking about them.

3. Create a safety net

Regardless of if the employee is remote or office based. Make sure they know that they have that safety net (in you). So that they can come to you in the future with any other concerns. Take it beyond a phone screen relationship. Make it genuine and make sure they know you’re there for them.

4. Make sure that they know that they’re valued, and that development is available

Work to get consistency around the career path and onboarding experience you offer. Make sure it’s being implemented across different teams, and break down silos.

So how can we make sure that everyone in the company has that, that great employee experience as well, which I think people are expecting more of.

5. Bridge the remote working disconnect

Since the pandemic we’ve seen a significant shift towards remote working. Away from the office where genuine work and social interaction were able to happen a little more organically. It’s important to actively address challenges. Team events are historically office based, and with the pandemic, that just stopped overnight for many people. So in order to maintain a healthy remote and/or hybrid environment companies should look to actively implement more policies to help us engage more with the company?

6. Work from home isn’t for everyone

For many people life fits really well around working from home, but that’s not everyone’s experience of work from home. There’s a lot of people who want to be in the office every day, whether it’s because they want to be around people or because their work set up at home just isn’t as enjoyable. The shift and the technology have enabled choice. Where employees, if we’re able to give that choice, it’s great, but it doesn’t mean that everyone wants to be working from home.

7. Maintain and promote transparent

Being transparent is hugely important. Call it out whenever you can with employees. Help them understand there’s things that you can’t tell you right away, but when you can you will, and that there will be an opportunity to talk about more. Making what they’re going to expect when joining your team, Really taking that side of transparency, wherever possible.

Thanks for reading. I hope you found these tips useful. Next, drive deeper with more insights from Jackie, Rob, and Julie Jeannotte.

Watch full webinar here

Our partner, Officevibe is the incredibly friendly people-first employee experience platform – providing a fresh, new way to engage, recognize, align, and enable world-class leaders and teams. Learn more

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Evolve your hiring strategy in tough times: 7 webinar lessons

Alexandros Pantelakis — Thu, 17 Aug 2023 12:05:00 +0000

With a panel of experienced HR professionals, we aimed to offer insights around hiring practices, the importance of onboarding, employee retention, and the challenges of establishing a hiring strategy in tough times.

Also discussed: the need to focus on maintaining a human touch in the hiring process, the use of technology in recruitment, and the idea of promoting from within.

Don’t worry if you missed the webinar. We’ve got you covered offering all the important tips to help you hire better, surpassing the economic headwinds.

Better hiring practices – the takeaways

Let’s delve deeper into each of the major takeaways of the webinar:

1. Empathy is key

The hiring process isn’t just about filling a position. It’s about understanding the human element behind each application. Empathy plays a pivotal role in ensuring that candidates feel valued and understood especially when creating a hiring strategy in tough times.

It’s essential to put oneself in the shoes of the applicant. Consider their journey, the challenges they might face, and the anxieties they might have.

“From the recruiting perspective, we try to create a timeline of each department’s process, leading with empathy. It’s really just putting ourselves in the shoes of the candidates and understanding if this recruiting process is enjoyable for us,” Dave Deguzman, Head of Recruitment at Ylopo, comments.

By approaching the hiring process with empathy, HR professionals can foster a more inclusive, understanding, and efficient recruitment process.

Jordan Greenstreet, Sr. Partner Marketing Manager at Checkr adds: “From the Checkr perspective, our whole mission is fair chance hiring. It’s built on the premise that everyone, regardless of their background, has the right to be fairly assessed for the role that they’re qualified for.”

This not only enhances the candidate’s experience but also positively impacts the company’s brand in the job market.

2. Dealing with inundated qualified candidates

When a job posting is inundated with qualified candidates, it’s crucial to maintain a transparent, communicative, and empathetic recruitment process. Firstly, leverage technology to ensure timely communication.

Automated emails can be set up to acknowledge receipt of applications, providing candidates with a clear expectation of the timeline for feedback.

For instance, if a match is identified, the candidate could be informed within a set number of days. If not, a courteous rejection email should be sent.

While it’s disappointing to receive a rejection, it’s preferable to being left in the dark.

Setting clear expectations from the outset ensures candidates are not left waiting indefinitely.

Additionally, personalizing communication, even if it’s automated, can make a significant difference in how the company is perceived.

Remember, word of mouth is powerful; candidates will share their experiences with peers. The recruitment process should align with the company’s brand, ensuring every interaction reflects the company’s values and ethos.

Deanna Baumgardner, President at Employers Advantage, agrees that “it sucks to get a thanks note but it’s better than getting nothing. Even if it’s not as easy as a click of a button, I think the investment in the time that it takes to communicate with candidates is worth it”.

3. Onboarding is crucial

The initial days of a new hire are critical in setting the tone for their entire tenure at the company.

Effective onboarding goes beyond just introducing a new hire to their role.

It’s about integrating them into the company culture, ensuring they have the necessary resources, and providing continuous support.

Deanna Baumgardner states: “It’s really just planning ahead. Plan through the recruiting process to know who is involved, what is each person’s role in the recruiting process, and what specifically are you looking for from your candidates.”

Especially in remote settings, where face-to-face interactions are limited, HR professionals should prioritize regular check-ins, assign mentors or buddies, and provide clear documentation and training materials.

“One thing I think about when it comes to onboarding is that it is the most important aspect of a team member’s lifecycle experience when they join the company. Having a solid onboarding experience is especially crucial when working remotely,” Nadia Alaee, senior director human resources business partner at Deel, comments.

4. Promoting from within

Internal growth and development are essential for employee satisfaction and retention.

Encouraging and facilitating internal promotions can lead to higher job satisfaction, increased loyalty, and better overall morale.

HR professionals should ensure that employees are aware of potential career paths within the organization, offer training and development opportunities, and maintain open communication about potential growth opportunities.

As Melissa Escobar-Franco, VP of HR in Workable, puts it: “We really want everyone here at Workable to see that they have a career here, that they have a career path in place. We want to keep people on board for longer, while still having a healthy turnover rate.”

5. Challenges of global hiring

Hiring across different geographic locations presents its own set of unique challenges and considerations when your are implementing your hiring strategy in tough times.

When hiring globally, it’s crucial to be aware of cultural nuances, local employment laws, and compensation standards.

Additionally, with varying time zones and work cultures, HR professionals need to ensure that communication remains consistent and that all employees, regardless of location, feel integrated into the company culture.

Lastly, the time between the signing of the job offer and the starting date is crucial. Especially, when hiring from abroad, these times may increase.

Nadia Alaee offers her view on this: “We’re keeping them excited about the deal, sending them any sort of documentation they can start, introducing them to team members. Having the hiring manager have a touchpoint with them on a cadence that makes sense to make sure that they’re still really excited even though it’s two or three months away”.

6. Gamifying recognition

Gamification can be a powerful tool to foster a culture of appreciation and acknowledgment within an organization.

Implementing gamified recognition systems, like awarding points or badges for achievements, can motivate employees and encourage positive behaviors.

However, it’s essential to ensure that such systems don’t inadvertently create a competitive or exclusionary environment. The focus should always remain on fostering collaboration and appreciation.

Dave Deguzman shares his experience at Ylopo: “we typically give people five tacos a day to offer. We have the reward store, but we really focus on the gamification around. We’re trying to foster a culture of recognition and giving rather than a popularity contest of the one who receives the most tacos. So it’s the people that are appreciating the most versus the popularity.”

7. Using technology in hiring

While technology can streamline the hiring process, it’s essential to balance automation with a human touch.

Leveraging technology in recruitment, like Applicant Tracking Systems (ATS) or AI-driven screening tools, can make the process more efficient.

However, HR professionals should be wary of over-relying on these tools. It’s essential to maintain a personal touch, ensuring that candidates have a point of human contact and don’t feel lost in an automated system.

Deanna Baumgardner comments: “Technology creates a lot of efficiency and it can bring people to the surface or it can eliminate people that aren’t qualified. But we need to take the time to remember that there is somebody on the other end who is a human trying to get their next job and to create a livelihood for themselves and their families”.

By understanding and implementing these insights while crafting your hiring strategy in tough times, HR professionals can enhance their hiring practices, ensuring a more efficient, inclusive, and empathetic recruitment process during economic headwinds.

Candidate to employee, made easy. Book your demo at Workable and make use of the world’s leading hiring platform.

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How Casio transformed its hiring process to attract top talent

Alexandros Pantelakis — Fri, 24 May 2024 15:25:19 +0000

Casio utilized cutting-edge HR technology to bolster its focus on soft skills, resulting in positive outcomes for both candidate satisfaction and employee engagement. How easy was it for them to attract top talent?

Sam emphasizes the significance of a well-crafted candidate experience, stating, “For us it’s incredibly important, especially given the current climate within the UK in terms of talent acquisition. It’s very competitive so businesses need to ensure that their recruitment processes are smooth, consistent and with quick action for candidates.”

To address this challenge, Casio overhauled their recruitment process, which “previously was very manual – from candidate shortlisting all the way through to facilitating communications between our hiring teams and candidates. Interview scheduling at times was tricky to coordinate, requiring multiple reminders, as we also had introduced hybrid working in our head office post-COVID”.

Sam further elaborates, “It’s important for that candidate to know where they stand, not just waiting a long time for their first interview and then the follow-up stages after that.

“So, having Workable really helped us with that communication and recruitment pipeline, making sure those touchpoints with the candidate were really easy to use and maintain; enhancing a more personal experience with automated communication templates that were easy to define and customize in the platform.”

This proactive approach to communication has been key in keeping candidates engaged throughout the hiring process and boosting their efforts to attract top talent.

HR Technology can overcome hiring challenges

Casio implemented Workable, our recruitment software, to enhance candidate communication and smooth the hiring process.

This has been particularly beneficial for roles in high demand, such as customer service, marketing, and retail.

Sam notes the specific challenges in these industries, saying, “Recently the predominant roles we recruit for are customer service and marketing, which can be quite challenging due to their demand in the market.

“Additionally, retail positions pose a challenge since the pandemic, with experienced retail workers seeking opportunities that are more remote work or hybrid, so brands have to be able to emphasize their benefits clearly to attract quality candidates.”

“Brands have to be able to emphasize their benefits clearly to attract quality candidates.”

By leveraging technology, Casio has been able to navigate these challenges more effectively “by ensuring our adverts are optimized to reach the relevant talent we want to attract. Workable’s AI recruiter has also been helpful in sourcing potentially applicable matches.

“Furthermore, the collaboration with the hiring teams on our recruitment campaigns has improved and been made easy with the platform, centralizing our communications, feedback and evaluations in one place rather than just emails. Seamlessly managing campaigns via Desktop or App is made so easy.”

The value of unified reporting

As the self-proclaimed “data cruncher” of the team, Sam appreciates the value of a unified reporting system.

“I’m probably the data cruncher on our team. Having HR technology that helps inform our strategic decisions was incredibly important for our team. Previously, I had to manually gather data from various sources, which was time-consuming.”

“Whether I was working with recruiters or analyzing data myself, everything was done manually, including generating reports.

With HR technology, “I can easily access information for how the campaigns are performing – reports like time to fill, recruiter productivity, performance of different recruitment sources are just some of the reports pre-built into the system and easy to use and export.”

“Having real-time data and robust filtering options is invaluable for our team’s efficiency and historical analysis.”

Embracing video interviews

One standout feature that has transformed Casio’s hiring process is the use of one-way video interviews.

Sam shares, “The recorded one-way video interviews were a trial, but they really worked. Initially, I was hesitant because I knew this could be a drastic change for the business as we were used to always conducting interviews in person, which isn’t always feasible nowadays. It could also be argued as a potential barrier for some candidates.”

This shift has not only saved time but also received “really positive feedback from both candidates and hiring managers. Candidates are able to proceed in our selection process quickly and hiring managers are able to review candidates and evaluate them almost as soon as the candidate has submitted their interview, allowing us to move on to the next stages of the process more efficiently.

“It also allows us to consider how candidates present themselves in a remote environment which is a factor we consider now that remote meetings happen more often nowadays with hybrid working.”

“Being able to shortlist people who we might have otherwise taken longer to see has been a great benefit from the system.”

Prioritizing soft skills

Casio has shifted its focus to prioritize soft skills and cultural fit over strict qualifications. Sam explains:

“For some roles, yes we do still need some technical expertise, but our focus is about what else the candidate can bring? Are they organized? Are they more methodical in approach to problem solving or more creative? How do they tailor their communication?”

This approach aligns with Casio’s values. Sam elaborates, “values are really important to us, especially in the challenges of adapting to a hybrid work environment. Ensuring someone can engage with the rest of the team is part of our interview process.

“Also understanding the candidate’s needs and wants for their work environment is also crucial, these days it’s important to assess cultural fit from both employer and candidate perspectives. It’s a partnership at the end of the day. This is particularly emphasized in senior roles.”

“These days it’s important to assess cultural fit from both employer and candidate perspectives. It’s a partnership at the end of the day.

“We’ve also used the system’s psychometric assessments, which have been very insightful during interviews encouraging productive conversation between us and the candidates.”

Workplace culture: a factor to attract top talent

Casio has noticed promising trends in employee satisfaction. Sam shares, “By focusing on that, you end up having people who are more invested in your workplace culture. This, in turn, hopefully leads to an upward trend in positive feedback from our employees.”

“We do survey our employees as well, and we are not only scoring high, we are also seeing further increase in recommendations for Casio as a place to work and in people wanting to be part of our team.”

Sam acknowledges that while they are making progress, there is still room for growth. “Focusing more on those softer skills is actually crucial for us, ensuring that we have an engaging process. There’s always room for development and learning from our employees.”

Casio’s transformation of their hiring process demonstrates the impact of prioritizing candidate experience, utilizing HR technology, and focusing on soft skills. That was the best way for them attract top talent.

By implementing tools like Workable and embracing video interviews, Casio has streamlined its recruitment efforts while attracting high-quality talent that aligns with their culture.

As Sam notes, “it’s really important for us to get that right and make sure we have the right people in the right seats.”

With a dedication to continuous improvement and a candidate-centric approach, Casio is well-positioned to build strong, engaged teams that drive the company’s success.

Sam Vallins is the Senior HR & Payroll Executive at Casio, working in the UK subsidiary of the iconic global brand. With over 7 years of experience within HR, Recruitment & Payroll, she has worked with multiple businesses from different industries and sizes.

Combining a meticulous eye for detail and passion for fostering inclusive workplace cultures, Sam keeps the employee experience as the core focus of her work. Sam’s motivation for identifying operational efficiencies, analysing trends and enhancing HR processes help provide crucial support to the team, helping improve key metrics since joining the business back in 2021.

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The rise of the digital humanist: AI at work to stay

Keith MacKenzie — Wed, 08 May 2024 20:18:47 +0000

Since the 19th century, we’ve seen a number of large-scale foundational shifts in how we carry out our work and how the surrounding economy operates as a result.

The Industrial Revolution, of course, is an early example – it marks a profound transformation from agrarian, handcraft economies to machine-driven manufacturing.

Enter mechanization of processes, factories, mass production – and ultimately, a workforce skilled in machine operation and maintenance and technical skills, as opposed to artisanal and agricultural work.

Much later, we saw the widespread adoption of computers and the advent of the Internet leading to increased digital transformation of work – allowing for greater automation of basic tasks and especially the development of entirely new industries (SaaS, especially).

Hiring also changed with the entry of the Internet – in tandem with an increased demand for a computer-literate workforce is the emergence of online job postings, digital resumes, tests in the cloud, and virtual interviews, among others.

More recently, the COVID-19 pandemic accelerated another paradigmatic shift in the workplace to greater flexibility in work, a booming gig economy, and adoption of new principles. This is something we’ve discussed at length in our workplace studies on the New World of Work (2020 and 2022) and on the Great Discontent (2021 and 2023).

The hiring process was also altered significantly in the fallout of COVID-19, with recruitment going global and a greater emphasis on self-management and agility skills. The traditional employer-employee relationship also shifted, with more people working as independent contractors on a project basis.

AI is just the latest workplace transformation

And now, of course, we have AI in hiring and the workplace. Our survey dataset shows continued disruption of existing working models now and in the future – meaning we’re in the midst of yet another workplace transformation.

In hiring, AI’s role will evolve from being a mere tool for efficiency to a more complex system that enhances decision-making and strategic planning. As AI technologies become more sophisticated, they may offer deeper insights into candidate assessment, going beyond resume screening to analyzing behavioral patterns, cultural fit, long-term potential, and other insights.

This evolution will necessitate a shift in HR roles, where professionals will need to be as adept in utilizing AI technologies as they are in traditional recruitment methods.

The rise of the digital humanist

Another nuanced shift in hiring will be the continued emergence of hybrid decision-making models. These models will blend AI’s analytical prowess with human intuition and emotional intelligence.

We discussed above the importance of this in addressing concerns around bias – as AI systems learn from historical data, there’s a risk of perpetuating existing biases. Human oversight will be essential to counteract this to maintain DEI standards not only in hiring but in the workplace.

AI technology will also penetrate focal areas of HR beyond hiring, including employee engagement, performance management, and even employee mobility, retention, and turnover. The tech can only grow the ability to take proactive approaches in all these areas

Meanwhile, with routine tasks largely dominated by automated AI capabilities, the skillset required for various roles will shift (or even evolve), emphasizing creativity, problem-solving, and emotional intelligence. This means rethinking training and development, focusing on upskilling existing employees and onboarding new hires to thrive in a more AI-integrated workplace.

The path ahead of us isn’t about a choice between human-driven and AI-driven work. It’s about pulling the best of both into a single, synergized system. Those who blend the irreplaceable (or rather, irreplicable) human elements with the limitless capabilities of artificial intelligence will spearhead the development of a new ecosystem where technology and humanity can thrive together.

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6 major assessment concerns and why you should not worry

Keith MacKenzie — Tue, 22 Jun 2021 15:14:18 +0000

However, unlike skills assessments, which are focused squarely on analyzing a candidate’s skill set, the benefits of cognitive and personality assessments are less clear – including to the candidate. In fact, candidates have spoken out against the idea – with articles titled “No, I won’t take your pre-employment assessment. Here’s why“. and “I Hate Dumb Pre Assessment Tests When Applying For Jobs“, among others.

Before we go into detail on assessment concerns, let’s take a look at the types of assessments. There are five core assessments:

abstract reasoning
numerical analysis
verbal communication
attention & focus
personality

Each of them have their distinct best practices for specific job roles – for instance, verbal communication skills are desired for those working in public-facing roles such as customer service or sales. Numerical analysis can be applied to those working in finance. And so on.

Now, let’s look at the concerns about these assessments.

Why you should use cognitive assessments

Let’s first look at cognitive assessment concerns, with reasons why you should include them anyway.

Concern #1: They reduce the candidate to a number

The concern: A standardized recruitment process – especially for larger organizations who have built a scalable hiring model – can make candidates feel like they’re on a conveyor belt. When you add assessments, candidates will feel like you’re just adding another statistic to them.

The reality: A standardized process is also more susceptible to bias – despite the sincere intent for the opposite. Likewise, AI screening of resumes can lead to a new problem, as seen in the example of Amazon. Even if you take AI out of the picture, humans can still be influenced by the reputation of the school the candidate went to, or their charisma in a face-to-face interview.

When you add assessments to the process, you can analyze cognitive abilities and potentials in an isolated environment without being influenced by these other factors.

Concern #2: There’s plenty to learn in other stages of the process

The concern: In between the resume, cover letter, interview, and even the reference check, you already have plenty of information to help you make a good decision on the candidate. Adding assessments just further complicates things.

The reality: Each of the stages in the evaluation are designed to understand specific parts of a candidate’s eligibility for a role. But gaps remain: for instance, it’s hard to discern how much of a candidate’s success actually comes from their own contribution or just from the environment they worked in. Plus, exaggerating one’s accomplishments in a resume isn’t entirely uncommon.

With assessments, you’re future-proofing your company against those potential bad or misleading hires by directly analyzing what they can actually bring to your company.

Concern #3: Assessments prolong an already lengthy process

The concern: Adding assessments just adds time to an already lengthy recruitment process – a common gripe among many candidates.

The reality: Yes, they’re right – if those other stages are clumsily managed with slow turnaround at the recruiter’s side due to an excess of work. But optimization tools, such as automated emailing, self-scheduling options, and one-way video interviews, can shorten those stages. This gives you the luxury to seamlessly add assessments to the mix – also in a semi-automated way – without prolonging the process. In effect, you’re getting more for less.

Now that we’ve covered three main concerns around cognitive assessments, let’s look at the more charged topic of personality assessments.

Why you should use personality assessments

While cognitive assessments are already a widely accepted element of the recruitment process, the value of personality assessments isn’t as universally acknowledged. The controversy around Myers Brigg and DiSC profile testing is widespread, and there’s little consensus on their usefulness.

Concern #1: Personality assessments promote biased hiring

The concern: Testing for personality promotes biased hiring. For instance, if you find that someone’s not a so-called “team player” or a good “cultural fit”, you may opt not to move forward with them. It also unfairly favors extroverted “go-getters” and “problem solvers” over equally qualified introverts who prefer to focus on the work at hand.

The reality: Personality assessments should not be dealmakers or dealbreakers in a hiring decision. They only help provide stronger insights into a candidate that may not be found in other stages. Perhaps a candidate seemed quiet and unmotivated during an interview – a personality assessment may find them to be introverted yet still just as qualified as a louder, friendlier candidate who made a stronger impression in the interview stage.

Concern #2: Candidates will try for the “right” answer rather than being honest

The concern: When jobseekers take a personality test, they’re going to be naturally inclined to try and give the ‘right’ answers to further their candidacy for the role. They may not be wholly honest.

The reality: It’s not a test. It’s an assessment. You’re trying to get a deeper understanding of their personality and traits. The result can help you learn how they’re likely to behave in the role, how they like to be managed, the job environment in which they most thrive, and their preferred communication style, among other things that help you understand who the candidate is and what motivates them.

Concern #3: Personalities have nothing to do with the job

The concern: Many see personality assessments as irrelevant and even as an invasion of privacy. What do they really have to do with candidacy for a role?

The reality: As stated above, having a good understanding of how a candidate might act or behave in the workplace will help you build better teams and a work environment in which they can thrive. This can create a better all-around employee experience with more engaged and productive employees.

Assess your own team first

That being said, personality assessments have their limits. To use them to their fullest benefit, have the existing employees in your company take an assessment as well.

Not only can you identify opportunities to build stronger teams, more motivational environments, and better management structures, you can also set up mentorship programs specifically tailored to specific personalities that can bring the best out of a new hire.

This means a much stronger onboarding and a shorter time to maximum productivity.

It’s not a dealmaker or dealbreaker

Boston-based management consultant Laura Crandall seconds that. Personality assessments shouldn’t be the defining factor in making a decision – nor should they even influence a decision.

Laura adds: “The name is a bit misleading, as, at their core, these tests aim to identify how personality traits, be they assertiveness, optimism, extroversion or introversion, and the like, will manifest in workplace behavior.”

And she adds succinctly: “They’re just lenses.”

In the end, while they are great tools to overcome the “one size fits all” solution, cognitive and personality assessments need to be utilized properly for them to be effective. You also want to communicate their intent and benefits to the candidate as clearly as you can to maintain that all-important candidate experience.

Think of it as adding another tool to your HR toolkit that focuses on bringing the best people to your company, and bringing the best out of them while they’re there.

The post 6 major assessment concerns and why you should not worry appeared first on Recruiting Resources: How to Recruit and Hire Better.

Top Employers Institute on how AI is reshaping talent acquisition

Alexandros Pantelakis — Tue, 21 May 2024 13:40:28 +0000

AI in talent acquisition has already changed the way organizations approach hiring. As AI-driven tools become more sophisticated, they are reshaping the strategies employed by leading companies to attract and evaluate top talent.To gain deeper insights into this transformative trend, we spoke with Jake Canull, Regional Director Americas at Top Employers Institute.

AI is reshaping talent attraction strategies

According to Jake Canull, “Talent leaders have been using AI-driven tools to help them hire the right people for the right roles and improve decision making since the early 2000s.”

He notes that the technology has improved incrementally over the past 20 years, with a revitalized boom in the last two years following the emergence of ChatGPT and the potential of Generative AI.

“HR and Talent teams can gain and maintain a strategic advantage against competitors by employing the most balanced talent process that consists of improved work efficiencies, and enhanced human-decision making,” Jake explains.

Top Employers Institute’s World of Work Trends report for 2024, which surveyed and certified the people-practices of more than 2,400 large organizations globally, found that “84% of Top Employers are defining a strategic vision for how technology will contribute to the overall employee experience.”

Jake Canull emphasizes that Generative AI is at the forefront of this conversation.

AI in talent acquisition transforms various aspects including candidate sourcing, resume screening, candidate matching, assessments, predictive analytics, and reporting.

These tools enable HR teams to identify potential candidates more effectively, streamline processes, and make data-driven decisions.

Jake Canull elaborates on the specific areas where AI is making a difference: “AI-powered applicant tracking systems (ATS) and talent acquisition software (TAS) can analyze resumes and job descriptions to identify relevant skills, experiences, and qualifications.

“By leveraging natural language processing algorithms, ATS platforms match candidates to job requirements, enabling recruiters to focus on the most suitable applicants.”

Enhancing accuracy and efficiency in skills evaluation

AI tools have empowered frontline people leaders and talent professionals with more accurate information at a more efficient rate than ever before.

The World of Work Trends report for 2024 found that “employee engagement scores were statistically best when both strong organizational purpose and good leadership were present.”

Jake highlights several benefits of implementing AI in the talent acquisition process, such as improvement in the time needed to hire new employees, data-driven decision making, efficiency, competitive advantage, and enhanced candidate quality.

“AI analytics tools offer hiring managers valuable insights into recruitment trends, candidate behaviors, and performance metrics, enabling them to make informed decisions, optimize recruitment strategies, and forecast future talent needs,” Jake adds.

“AI analytics tools offer hiring managers valuable insights into recruitment trends, candidate behaviors, and performance metrics, enabling them to make informed decisions, optimize recruitment strategies, and forecast future talent needs.”

The personal touch in candidate interactions

While AI in talent acquisition offers numerous advantages, maintaining a personal touch in the recruitment process can be challenging.

Jake Canull emphasizes that “maintaining personal touch in processes can only come through human context of situational empathy and compassion based on experience.”

“Maintaining personal touch in processes can only come through human context of situational empathy and compassion based on experience.”

He further explains, “It can become painfully obvious when you receive a message about a work item that feels painfully out of context. Top employers of choice invest time and resources building the right context of messaging around the most relevant use-cases.”

Top employers invest time and resources in building the right context of messaging around the most relevant use-cases.

He notes that certified Top Employers are extremely thorough when integrating AI into their talent recruitment processes, as they are accustomed to annual reviews and audits of every HR practice.

“If the systems and controls are not in place to maximize the employee’s experience, the employer may not pass certification,” he adds.

However, overreliance on technology and candidate bias are potential issues that organizations must address. Jake warns that “AI algorithms may inadvertently perpetuate or even exacerbate biases in the data used for training the models.”

Emerging AI technologies and their future impact

Looking forward, Jake Canull identifies several emerging AI technologies that he believes will have a significant impact on talent attraction and evaluation over the next five years.

These include technologies supporting neurodiversity in the workplace, AI-driven skill matching for jobs and career changes, personalized employee experiences, wellbeing management, and tying employee sentiment to organizational communication.

The World of Work Trends Report for 2024 found that “72% of Certified Top Employers expect the importance of Neurodiversity in people practices increasing by 2026.”

Jake also anticipates the rise of AI tools that tie soft skills to business outcomes.

“Hard skills help an individual get work done, and the soft-skills enable positive work environments, trust, and wellbeing. AI tools that tie soft skills to business outcomes will start appearing more too,” Jake predicts.

He also foresees the emergence of “AI-driven recommendation engines that prompt action at key moments to personalize a work experience for individual people and reinforce feelings of appreciation, support, and trust.”

Overcoming challenges in AI integration

Despite the benefits of AI in talent acquisition, organizations face challenges when integrating AI into their recruiting processes. Jake emphasizes the importance of ensuring that processes, technologies, and workflows are built with a diverse group of stakeholders to avoid bias.

“Top Employers are avoiding the negative outcomes from bias by ensuring processes, technologies, and workflows are built with a group of diverse stakeholders each step of the way,” he explains.

“For example, a high performing group of individuals may be assigned to join a committee that contains generational diversity, neurodiversity, job-level diversity, gender/ethnicity diversity, and more.

“Including differences throughout work we do is key to creating a psychologically safe space for stakeholders to mention concerns and in turn, help their employers avoid the costly mistakes that can originate from well-intended decision-makers that operate out of their own set of biases as well.”

Top Employers Institute captured an “18-percentage point increase in the prioritization of diversity, equity, and inclusion initiatives globally from 2023 to 2024,” concurrent with the continued rise of AI technology in the workplace.

Organizations must also navigate ethical considerations, data privacy, and security concerns when implementing AI recruitment platforms.

Jake Canull highlights two additional challenges: “AI raises ethical dilemmas related to using candidate data, algorithmic decision-making, and the potential impact on employment opportunities and socio-economic disparities.

“Organizations must navigate ethical considerations, uphold principles of fairness and integrity, and prioritize ethical AI practices to build trust and credibility in their recruitment processes.”

“Organizations must navigate ethical considerations, uphold principles of fairness and integrity, and prioritize ethical AI practices to build trust and credibility in their recruitment processes.”

“AI recruitment platforms rely on vast amounts of candidate data, raising concerns about privacy and security. Organizations must ensure compliance with data protection regulations, implement robust security measures, and establish transparent data handling practices to safeguard candidate information from unauthorized access or misuse,” he adds.

New skills for HR professionals in the age of AI

To stay relevant and maximize the potential of AI in talent management, Jake Canull advises HR professionals to focus on three key skills: curiosity in asking the right questions, algorithmic literacy, and discernment in decision-making.

“As someone who champions growth-mindsets rooted in gratitude, my advice is to focus on three skills that I believe will future-proof every talent management team and professional,” Jake shares.

An article by Jessica Kim-Schmid and Roshni Raveendhran in Harvard Business Review published in fall of 2022, stated, “One way to reduce algorithm aversion is to help users learn how to interact with AI tools.

“Talent management leaders who use AI tools for making decisions should receive statistical training, for instance, that can enable them to feel confident about interpreting algorithmic recommendations.”

Jake Canull wholeheartedly agrees with this statement. “There tends to be a delay between commercial ready items and Discernment in decision-making: this is learned through years of experience and this lesson never stops.

“The Institute for Digital Transformation puts it this way: ‘Discernment involves the ability to make sound judgments and decisions by analyzing and understanding situations or information through a careful examination of the details.

“It is a cognitive process that involves evaluating and differentiating information to make informed decisions.'”

AI is undeniably transforming the landscape of talent acquisition, offering organizations new ways to attract, evaluate, and retain top talent.

As Jake Canull and the insights from Top Employers Institute demonstrate, embracing AI-driven tools can provide a competitive edge, streamline processes, and enhance decision-making.

However, the successful integration of AI requires a balanced approach that combines technology with human judgment, empathy, and a commitment to diversity, equity, and inclusion.

As AI in talent acquisition continues to evolve, HR professionals must adapt and acquire new skills to harness its full potential in talent management.

The post Top Employers Institute on how AI is reshaping talent acquisition appeared first on Recruiting Resources: How to Recruit and Hire Better.

Top HR influencers you should follow in 2024

Alexandros Pantelakis — Tue, 14 May 2024 11:10:22 +0000

These influencers have demonstrated expertise in various aspects of HR, from talent acquisition and employee engagement to HR technologies and organizational development.

By following their work, HR professionals can stay informed about emerging trends, innovative practices, and best-in-class strategies for managing the modern workforce.

Why should I follow HR influencers on Linkedin?

Following HR influencers offers several benefits.

They provide valuable insights and expertise on various aspects of human resources, helping you stay informed about industry trends, best practices, and emerging technologies.

HR influencers often share practical tips and strategies that you can implement in your own work to enhance recruitment, employee engagement, and organizational culture.

Additionally, by following HR influencers, you can stay connected with a community of like-minded professionals, fostering networking opportunities and collaboration.

What are the qualities of a good HR influencer?

A good influencer possesses several key qualities that set them apart and make them effective in their role.

Authenticity is paramount, as they are genuine and transparent in their interactions, sharing their expertise, experiences, and opinions in a sincere manner.

Credibility is another essential attribute; a good influencer is knowledgeable and credible within their niche or industry, demonstrating expertise through their content and track record of success.

Engagement is crucial, as they actively interact with their audience, responding to comments, participating in discussions, and fostering a sense of community.

Consistency is key for maintaining relevance and building trust; a good influencer consistently produces high-quality content that resonates with their audience and aligns with their brand.

Providing value to their audience is also fundamental; whether it’s educational, entertaining, or inspirational, their content enriches the lives of their followers in some way.

When evaluating influencers, pay attention to these qualities to determine who is genuinely influential and worth following in your industry or area of interest. This how we came up with the following list.

Top HR influencers

Introducing our curated list of top HR influencers who are reshaping the future of human resources. We’ve compiled this list of 11 influential voices in the HR industry, each offering unique perspectives, valuable insights, and practical advice. The order is random. Let’s begin.

Suzanne Lucas

Suzanne Lucas, also known as the “Evil HR Lady,” is a seasoned HR professional renowned for her candid and practical advice.

With over twenty years of experience in HR management, Suzanne shares her expertise through her popular blog, offering straightforward solutions to common workplace challenges.

Known for debunking HR myths and advocating for both employees and employers, Suzanne’s insights have been featured in top publications like Inc. and Forbes.

Through her engaging writing and speaking engagements, she has become a trusted voice in the HR community, helping professionals navigate complex issues and foster positive workplace environments.

If you are a fan of our Resources blog, then you surely came across her articles here.

Find Suzanne Lucas on Linkedin.

Hung Lee

Hung Lee is a prominent figure in the HR and recruiting space, known for his expertise in talent acquisition, technology, and innovation.

He was the founder and CEO of Workshape.io, a recruiting platform that used machine learning to match developers with job opportunities based on their skills and preferences.

Hung is also the curator of Recruiting Brainfood, a weekly newsletter with over 30,000 subscribers that features curated content on recruiting, technology, and HR trends.

With a background in software engineering and recruitment, Hung brings a unique perspective to his work, blending technical expertise with a deep understanding of the human side of hiring.

Hung Lee is widely respected for his thought leadership and contributions to the HR community, and he influences the way organizations approach talent acquisition.

Find Hung Lee on Linkedin

Roberta Matuson

Roberta Matuson, known as the “Talent Maximizer®,” is a globally recognized leadership coach, author, and HR consultant specializing in talent management and organizational development.

With over 25 years of experience working with Fortune 500 companies, small businesses, and non-profits, Roberta brings a wealth of expertise to her work.

She is the author of several acclaimed books, including “Suddenly in Charge” (3rd edition released this year), “The Magnetic Leader,” and “Evergreen Talent,” which offer practical strategies for attracting, retaining, and developing top talent.

Through her consulting firm, Matuson Consulting, she helps organizations worldwide maximize their talent potential and achieve sustainable growth.

Roberta Matuson is a trusted advisor to executives and HR professionals, empowering them to build high-performing teams and drive business success. Through her LinkedIn newsletter, which counts over 150,000 subscribers, you can always be sure that you are updated.

Find Roberta Matuson on Linkedin

Meghan M. Biro

Meghan M. Biro is a respected HR and workplace expert known for her thought leadership, writing, and consulting work.

As the founder and CEO of TalentCulture, a leading media outlet and community focused on the future of work, Meghan provides valuable insights and resources to HR professionals, leaders, and organizations worldwide.

She contributes to Forbes, Huffington Post, and other publications, where she explores topics such as leadership, employee engagement, and the evolving role of HR in the digital age.

Meghan is also a sought-after speaker and commentator, sharing her expertise on HR and workplace trends at conferences, webinars, and podcasts.

With a background in marketing, technology, and entrepreneurship, she brings a unique perspective to her work, blending strategic thinking with a deep understanding of human behavior and organizational dynamics.

Her passion for innovation, advocacy for employee well-being, and commitment to driving positive change make her a respected voice and influencer in the HR community.

Find Meghan M. Biro on Linkedin.

Heather R. Younger

Heather R. Younger is a well-respected keynote speaker, author, and leadership expert known for her work in employee engagement, workplace culture, and leadership development.

As the founder and CEO of Employee Fanatix, she helps organizations create environments where employees feel valued, engaged, and empowered.

Heather is the author of three books, “The 7 Intuitive Laws of Employee Loyalty,””The Art of Caring Leadership,” and “The Art of Active Listening,” offering practical strategies for building strong relationships with employees and fostering a positive work environment.

Through her writing, speaking engagements, and consulting work, Heather R. Younger continues to inspire leaders to prioritize empathy, compassion, and authenticity in their interactions with employees, ultimately driving organizational success and employee loyalty.

Find Heather R. Younger on Linkedin.

Johnny C. Taylor

Johnny C. Taylor is the President and CEO of the Society for Human Resource Management (SHRM), the world’s largest HR professional society.

With a background in law and HR leadership, Johnny brings a unique perspective to his role, advocating for HR professionals and shaping policy on issues such as workplace diversity, employment law, and workforce development.

Under his leadership, SHRM has expanded its reach and influence, providing resources, training, and certification programs to HR professionals worldwide.

He authored the national bestseller, RESET: A Leader’s Guide to Work in an Age of Upheaval, offering a candid, forward-thinking vision for leaders to reimagine their company cultures amidst global upheaval. The book presents data-driven strategies to fundamentally reset all aspects of work.

Johnny is a frequent speaker at conferences and events, where he shares his insights on topics such as the future of work, talent management, and HR innovation.

Through his work at SHRM and his advocacy efforts, Johnny C. Taylor Jr. continues to drive positive change and elevate the HR profession on a global scale.

Find Johny C. Taylor on Linkedin.

Josh Bersin

Josh Bersin is a globally recognized HR thought leader, analyst, and educator, known for his expertise in the intersection of HR, technology, and business strategy.

He is the founder of The Josh Bersin Company , a leading research and advisory firm in the HR space. Josh has been at the forefront of analyzing and predicting trends in HR technology for over two decades.

He is a writer and speaker, sharing his insights on topics such as digital transformation, talent management, and the future of work.

Josh Bersin is also known for his annual “HR Technology Market Report,” which provides an in-depth analysis of the HR technology landscape and highlights emerging trends and innovations.

Through his research, writing, and consulting work, Josh Bersin continues to shape the conversation around HR technology and AI, helping organizations leverage technology to drive business success and enhance the employee experience.

Find Josh Bersin on Linkedin.

Ben Eubanks

Ben Eubanks is an HR analyst, author, and speaker specializing in HR technology, talent management, and workplace innovation.

He is the founder of HR Tech Awards and upstartHR, a blog and community focused on HR and leadership topics. He is also the Chief Research Officer at Lighthouse Research & Advisory, a research and advisory services firm specializing in HR and talent management. You can find his podcast show “We’re only human” here.

Ben is known for his in-depth research and analysis of HR technology trends, as well as his practical insights into how organizations can leverage technology to enhance their HR practices and improve the employee experience.

He is the author of several books, including “Artificial Intelligence for HR: Use AI to Support HR Functions & Improve the Employee Experience,” which explores the potential impact of AI on HR processes and practices.

Through his writing, speaking engagements, and consulting work, he helps organizations navigate the complexities of HR technology and harness the power of AI to drive innovation and achieve their business goals.

Find Ben Eubanks on Linkedin.

Liz Ryan

Liz Ryan. Liz is the founder and CEO of Human Workplace, a career advisory firm that provides coaching, training, and consulting services to individuals and organizations.

With over 30 years of experience in HR leadership roles at companies like U.S. Robotics and AlliedSignal, Liz brings a wealth of expertise to her work.

She is known for her unconventional approach to HR and career advice, challenging traditional notions of work and leadership.

Liz is a prolific writer, contributing regularly to Forbes and LinkedIn, where she shares her insights on topics such as career development, personal branding, and workplace culture.

She is also the author of several books, including “Reinvention Roadmap” and “Happy at Work.”

Find Liz Ryan on Linkedin.

Laurie Ruettimann

Laurie Ruettimann is a seasoned HR leader turned writer, speaker, and consultant, known for her bold and provocative commentary on HR and workplace issues.

With over two decades of experience in HR, Laurie brings a wealth of knowledge and a fresh perspective to her work.

She is the author of “Betting on You: How to Put Yourself First and (Finally) Take Control of Your Career,” a book that challenges conventional career advice and encourages readers to prioritize their own well-being and professional fulfillment.

Laurie contributes to publications like Forbes, Fast Company, and The Muse, where she shares her insights on topics such as leadership, employee engagement, and workplace culture.

She is a Linkedin Learning Instructor and the host of Punk Rock HR Podcast & Newsletter

Through her writing, speaking engagements, and consulting work, Laurie Ruettimann empowers individuals and organizations to rethink outdated HR practices and create more human-centered workplaces.

Find Laurie Ruettimann on Linkedin.

Jeanne Meister

Jeanne is a recognized expert in HR technology, workplace innovation, and the future of work.

She is the founding partner of Future Workplace – now part of Executive Networks – a research and advisory firm specializing in HR

She has authored several books on the topic, including “The Future Workplace Experience” and “The 2020 Workplace: How Innovative Companies Attract, Develop, and Keep Tomorrow’s Employees Today.”

Jeanne is a frequent speaker at industry conferences and events, where she shares her insights on emerging trends in HR technology, AI, and the digital transformation of the workplace.

She is also a contributing writer for Forbes and Harvard Business Review, where she explores topics such as remote work, employee experience, and the impact of technology on the future of work.

Find Jeanne Meister on Linkedin.

As we conclude our exploration of these influential HR figures, it’s clear that their collective expertise, passion, and innovative thinking are driving significant change in the HR profession and beyond.

From thought leaders shaping the future of work to advocates championing employee well-being and technological innovation, each influencer brings a unique perspective and invaluable insights to the table.

As HR professionals, leaders, and organizations, we have much to gain from their wisdom and guidance.

Let us continue to learn from, engage with, and be inspired by these individuals as we strive to create workplaces that are innovative and thriving for all.

The post Top HR influencers you should follow in 2024 appeared first on Recruiting Resources: How to Recruit and Hire Better.

Upgrade FLSA: legislation vs free market in employment

Suzanne Lucas — Fri, 17 May 2024 12:16:15 +0000

The Department of Labor is upgrading the minimum salary for exempt employees from $684 per week ($35,568 per year) to $844 per week ($43,888 per year) as of July 1, 2024, and then to $1,128 per week ($58,656 per year) as of January 1, 2025.

The idea is that this minimum salary should be tied to the economic reality. And that makes at least a little sense.

But, let’s face it, the FLSA makes little sense in 2024. Congress first passed this law in 1938, and they have amended it from time to time, but it remains substantially the same. In a nutshell, it divides employees into two classes: exempt and non-exempt. The non-exempt are paid by the hour and can receive overtime pay, and the exempt receive a salary.

Both groups have minimum salaries, and the law enshrined the 40-hour workweek into law.

And so, what’s wrong with that in 2024? Just about everything, and this latest law change is an example of this.

The economy is very different

In 1938, the unemployment rate was 19 percent. People wanted government intervention. Now when the unemployment rate breaches 4 percent, we all freak out.

Many of the jobs we have today did not exist in 1938. Certainly, my job did not exist, and yours probably did not either. As technology has changed, the workplace has shifted. The current debate over remote work demonstrates that this is not even close to the same workforce Congress looked at 86 years ago.

In 1940 the US population was 132,164,569 with approximately 8 million farm workers. In 2023, the population was 339,996,563 with only 2.4 million farm workers. Today we have over 3 million IT workers, in comparison.

And while the original FLSA did not cover farm workers until 1966, just looking at this one set of facts indicates how very different the economy is today.

And while there have been tweaks to FLSA it still is a law built for an economy that doesn’t exist.

What could a new law look like?

If we wanted to start from scratch, what could we do differently? This is actually a very difficult thought exercise because, of course, people are paid by the hour unless they are meet the duties test to be salaried employees!

But it doesn’t need to be that way. We don’t even need a 40-hour work week!

Other countries survive with different rules. France has a famous 35-hour work week (although that isn’t universal in France); in Bhutan, the average worker works 54.30 per week (the highest in the world). In practice, French employees work an average of 30.7 hours per week.

Many professions that offer services don’t charge clients an hourly rate but rather pay by the project.

Many people like the flexibility of a salaried job–no matter how many hours they work, their paycheck remains the same. However, some complain that this allows employers to exploit them. It’s true that absent safety regulations, a company can require an exempt employee to work around the clock.

Senator Bernie Sanders tried to lower the work week to 32 hours, but that will go nowhere. President Biden just vetoed a bill that would have allowed employers to sidestep joint employer regulations that often affect franchised companies.

Some countries offer strong employee protections. The US generally does not. The vast majority of employees are at-will employees. And 36.6 million people in the US are not employees at all, but independent contractors.

So, our status quo doesn’t have to be the future. And while there are a million ways to look at employment, there is one foundation principle that I would like to apply: Contract law.

Why I support contracts?

I spent a good portion of my career laying people off. I know how the at-will system works, and there are many advantages for both employers and employees. The same law that allows a company to terminate you without notice allows you to quit without notice.

But, what if we flipped employment law on it’s head and said, instead of detailed rules that said who could be paid a salary and who earns overtime, we just said “Everyone is an adult here. You work it out.”

In that case, if I wanted to work for $3 an hour, I could take a job that pays $3 an hour. As an employer, I would also be free to offer a lousy job, but certainly couldn’t force anyone to take it.

If I wanted to offer a salary to work 80 hours a week at $30,000 a year, I could do that, but it’s doubtful anyone would take it.

Let people make the contracts they want to make. Under my system, offer letters would spell out the conditions of pay, including maximum hours per week for salaried roles, and when overtime kicks in for jobs that pay by the hour. And then let people decide if they want to take the jobs or not.

Positions could either be at-will or contracted. Either way, everything would be upfront at first.

Would that mean businesses could take advantage of some people? Absolutely. But they do that today, already. With a clear contract for every role, you would know what you were getting into. Heck, I’d even throw in a mandatory 48-hour waiting period between when the offer was made and when a candidate could accept the offer, giving them time to consult friends at minimum and a lawyer if necessary.

You might say it would be a disaster without protections. But the true minimum wage is always zero, and too many protections lead to that. Take a look at California, which implemented a $20-an-hour minimum wage for fast food workers, and many people lost their jobs.

Honesty is the best policy in my book and I value independence. So, let individuals decide what they want. The results might surprise you.

The post Upgrade FLSA: legislation vs free market in employment appeared first on Recruiting Resources: How to Recruit and Hire Better.

Legal experts chime in on the FTC’s noncompete ban

Suzanne Lucas — Fri, 26 Apr 2024 19:42:19 +0000

If you want to know what HR has been doing this week, it’s been talking with people about the end of noncompete agreements under the new proposed FTC ban.

On the one hand, CEOs (who generally have noncompetes themselves) panic that their employees will be free to cross the street and work for their competitors, and on the other hand, employees rejoicing because they will be able to cross the street and work for the company’s competitors.

Both sides need to take a deep breath. This is not a done deal.

In fact, employment attorney David Miklas said, “As an FYI, I am changing nothing from last week to today. I am still drafting noncompetes for my Florida businesses.”

Just what are the experts saying about this proposed FTC ban on noncompetes?

Wait! A lawsuit?!

To no one’s surprise, the US Chamber of Commerce and the Business Roundtable already filed a lawsuit against the FTC in federal court in the Eastern District of Texas. The only surprise was that they managed to get it filed in less than 24 hours.

While how the lawsuit will go at this point is anyone’s guess (although I’m guessing it never goes into effect), there will undoubtedly be an injunction, and even if there’s not, it doesn’t go into effect for 120 days. Any agreement for executives entered into before the effective date will still apply.

Why noncompetes aren’t evil incarnate

While noncompetes are often seen as a threat and a punishment, that may not be the case. The FTC acknowledged that executives (defined as workers earning more than $151,164 annually and who are in policy-making positions) with access to expert advice weren’t being taken advantage of.

Related: Jimmy John’s famous noncompetes, which prevented former employees from working in any sort of food service that made sandwiches for two years, died in 2016, yet people still bring it up as a sign that noncompetes are awful.

Employment attorney Todd Stanton explains:

“Our Firm’s standard advice though, is to have narrowly tailored restrictive covenants (non-solicits, non-raiding/poaching, and confidentiality clauses) in most employment agreements. We only recommend noncompetes in very limited circumstances (mostly sales of businesses). Having those covenants in place gives employers options when they face a nefarious former employee, but we make sure we talk the client through every available option before will even discuss writing a demand letter, much less a complaint and TRO.”

While many people automatically assume business interests aren’t legitimate, anyone who has worked with actual people knows that there are terrible people who would happily destroy your business. Business owners take tremendous risks and responsibilities and, as such, need a way to protect that.

But, Todd says, enforcing a noncompete is often a last resort. When he has a client who wishes to enforce one against a former employee, he looks for a different solution:

“We start with, ‘did you pay them in a manner compliant with the FLSA?’ If the answer is no, we do not send them a letter they’ll take to a lawyer. Then we ask how much the employee’s activity is costing the company and how much they’re willing to spend to stop it.

“No matter what that number is, I ask if they can think of any other more productive ways to spend that money to protect their business interests. … $100k buys a lot more good will from wavering clients than it does attorney time. And your life is happier. Most clients realize how stupid it all is if they get a little perspective.”

And if it does go into effect?

Attorney Fitzgerald (“Jerry”) Bramwell says, “What happens, assuming the Supreme Court doesn’t kill the rule? Employers start relying on carrots instead of sticks to keep their best people engaged. There is a cascading effect leading to a much happier society overall.”

And maybe you don’t even need carrots.

Employment attorney Kate Bischoff tweeted:

“Folks. Business groups. If a noncompete ban will end your business, how do businesses in ND, OK, CA, and MN stay open?”

Folks. Business groups. If a noncompete ban will end your business, how do businesses in ND, OK, CA, and MN stay open?

— Kate Bischoff (@k8bisch) April 24, 2024

Kate has a strong point. noncompetes have been essentially unenforceable in California since the 1940s and that doesn’t seem to have driven away business or innovation. California has its problems, but no one is citing the lack of noncompetes at the center of those difficulties.

And lawyers will innovate and find ways around the ban, such as confidentiality agreements, partnerships, non-disclosure, and stronger IP protection.

Employment attorney Eric Meyer explains, “The new rule does not generally impact NDAs or non-solicitation agreements unless they prohibit a worker from, penalize a worker for, or function to prevent a worker from seeking or accepting work or operating a business.”

But there will be consequences to that as well.

Stephanie Raynor, an HR application specialist, says that, if the noncompete ban goes into effect, “companies may strengthen confidentiality agreements, limiting employee mobility and innovation.”

This is no magic fix for anyone. And we all have to wait for the lawsuits to sort out. My best guess is that noncompetes will ultimately be limited but not done away with altogether. As the FTC says, executives can represent themselves well.

The post Legal experts chime in on the FTC’s noncompete ban appeared first on Recruiting Resources: How to Recruit and Hire Better.

WeyMedia: insights on mitigating recruitment headaches

Alexandros Pantelakis — Wed, 15 May 2024 12:37:30 +0000

WeyMedia is an East Coast fintech startup that operates a pair of personal finance-focused websites, moneyGenius and creditcardGenius.

Our fully remote team, scattered across Canada, provides Canadians with accurate, honest, and helpful information about credit cards, spending money, and saving money.

As an organization that’s seen significant growth over the past few years, WeyMedia has experienced its fair share of recruitment headaches. We finally turned to Workable in August of 2021 as a solution to the hiring challenges we’ve faced and we’ve never looked back.

Our hiring efforts have increased considerably over the past six months, and this wouldn’t be possible without the cohesion and simplicity that Workable provides.

Collaboration is key

Our company is organized into five teams—content, growth, development, marketing, and administration—that work very closely together. Each has a narrow focus but requires regular input from one or more of the other teams, creating a well-oiled, cohesive team out of the smaller groups.

This kind of seamless integration of people means that members of various teams communicate regularly and form both professional and personal relationships as a result.

Because of these interdepartmental working relationships, a new employee may be hired to work on a specific team but will still work closely with members of other teams.

Hiring is a collective effort

Therefore, it’s important to consider the needs of related teams during the hiring process avoiding recruitment headaches.

To help with this, WeyMedia involves multiple team members in the interview process. It’s not just the hiring manager—other team members also participate in the interview panel.

Things can get confusing when ambitious growth goals combine with a large hiring committee.

WeyMedia has a fairly complex hiring process that involves multiple interviews, personality assessments, skills tests, reference checks, and more.

WeyMedia’s HR toolkit

Workable has made it exponentially easier for every person on the hiring project to check who the candidates are, where they are in the process, what the results of their assessments were, and more.

We’ve integrated our Gmail account with Workable, too, which creates a seamless line of communications. We can reply from within the Workable platform or directly from our shared inbox, and all correspondence is recorded.

The current WeyMedia team has reached 22 employees, but we intend to fill at least 10 more positions within the next 6 months.

This an ambitious goal but we have full confidence that it will be reached, thanks in large part to the efficiency of Workable.

Hiring challenges

Initially, application links could be found on the WeyMedia website and resumes were sent directly to the admin’s email account.

This caused significant backlogs and made it tricky to find and sift through the applications.

There was often confusion among staff members as to which stage a candidate was in and who still required a reply. Now that we use Workable, we receive applications directly in the platform and can easily move candidates from one stage to the next.

As our small but mighty recruitment team manages multiple roles at once, having everything in one place within Workable’s organized platform makes juggling these roles and candidates much easier.

In fact, the numerous stages in Workable have been customized to our unique vetting process.

Considering our bold goals for growth over the next few months, this kind of convenience and simplicity is necessary characteristics for a hiring platform.

Our hiring process is perhaps lengthier than some candidates are used to, but our thoroughness ensures that we hire the best possible candidate for the position avoiding recruitment headaches.

Workable helps ensure that we choose someone with the skills we need, who can quickly make a notable impact, and who will enhance our workplace culture.

Nikita Garner is the Administrative Manager at WeyMedia, a fintech startup headquartered in the Maritimes, with a remote team spanning across Canada. Over the last two years, she’s played a pivotal role in recruiting ten new team members to fuel the company’s rapid growth. Nikita’s enthusiasm for organization and knack for efficiency drives her to streamline processes and offer support, embodying the spirit of collaboration and productivity within the team.

The post WeyMedia: insights on mitigating recruitment headaches appeared first on Recruiting Resources: How to Recruit and Hire Better.

Implementing an alternating four-day workweek: how & why

Keith MacKenzie — Mon, 26 Sep 2022 13:41:13 +0000

As such, we decided to try offering an alternating four-day workweek to our employees. The results have been encouraging thus far, and we’d like to share some of what we’ve seen.

What is an alternating four-day workweek?

The idea of a four-day workweek is nothing new, and it’s something some companies have been offering as an option – or even a required schedule – for years. In most cases, this means that the employee works 10-hour days instead of eight, so the standard 40-hour workweek is completed in just four days. That way, instead of two days off per week, the employee gets three.

An alternating four-day workweek is a little different. With this plan, the employee works five days one week, and four the next. The day off could be Friday to allow for a three-day weekend every other week, but that is up to the individual employee and employer. Those additional days off provide the employee with tremendous flexibility to take extra trips, engage in their favorite hobbies, or whatever else they’d like to do with their spare time.

Why an alternating four-day workweek?

When the pandemic hit, we had to transition our team from being in-office to being a fully remote workforce. It was really all hands on deck to help the company come through the pandemic unscathed, and our team hunkered down and helped us figure out how to make our day to day operations more effective as a remote workforce. This meant lots of retooling and new process development … and long hours.

Working remotely can make work-life balance challenging and increase risk of burnout. A recent survey discovered that 69% of remote workers are experiencing burnout symptoms and 59% of remote workers are taking less time off than normal. Another survey stated that burnout at work doubled from March 2020 to April 2020.

Our hypothesis was that implementing this new perk would help prevent burnout, increase employee job satisfaction, and make our team feel more rested and ultimately, more productive, at work.

Our main concerns

My primary concern was ensuring that our clients and customers still had the level of support that they have come to expect from us. At the same time, I didn’t want this effort to make it harder on our support team as a result of any client frustrations or support ticket backlog. It was important to me that we still had adequate coverage for all teams and for all departmental responsibilities.

My secondary concern was making sure that this new schedule wouldn’t prevent anyone from being able to do their job. I didn’t want this alternating schedule to create any unnecessary stress for employees that couldn’t get something done because a key stakeholder was out of the office. But, all of these concerns can be prevented with proper planning.

How it’s been going so far

We piloted this new program from April to June 2021, a full quarter. We then said we would ressas with leadership, and see if this is something we would want to implement for the long term. Once the pilot was nearing the end, we sent a survey around to our team to get their feedback on this new work schedule.

Here are a few key takeaways:

100% of employees said that they wanted us to continue offering this benefit
93% of employees have said their productivity has improved, while the other 7% said their productivity has been the same
85% of employees said they feel more rested and happier at work

Anecdotally speaking, we also had a few key learnings, including;

It really enabled better habits when it came to time management and meeting scheduling. For example, everyone seems to be more thoughtful about scheduling meetings in general, so as to not waste time.
Many of the team members use Fridays for “deep work” days, with no meetings or interruptions.
This has been a great perk to mention to job candidates during the hiring process, and has been a deal breaker for some of our recent hires.

Four-day workweek tips for you

If this is a concept that you are considering for your team, here are a few things to consider and tips for implementation.

1. Try it as a pilot program first

I highly recommend you “try it on” by first implementing it as a pilot or trial program, with a specific start date and end date, to see how your team and customers adapt to this change. This gives you the flexibility of trying it out before having to fully commit. You may learn that it’s great and everything is fine to move forward with it long-term, or you may learn that you need to tweak a few things.

2. Make any special conditions very clear

Ensure everyone is aware of any special conditions or restrictions to this process to set the right expectations. For us, we didn’t require longer hours during the week of their Friday off, but other companies do. So, if there are special conditions, make them very clear from the start.

3. Make the schedule transparent and visible

Meet with your team leads and schedule out everyone’s Friday off in advance. Make sure it’s clear and visible in a shared calendar so everyone is aware of who is and who isn’t “in the office” on a given Friday. This also helps the team think in advance about any vacation days that may overlap or big events or meetings that need planning around.

4. Ensure your leaders lead by example

Leading by example is essential not only because leadership also needs time to recharge, but also because failing to follow through with the process can send mixed messages to employees and could cause anxiety on whether or not they should take the time off.

Matt Buchanan is the Co-Founder and Chief Growth Officer at Service Direct, a technology company that offers local lead generation solutions for service businesses. He is a graduate of Vanderbilt University. He has 15+ years of expertise in local lead generation, sales, search engine marketing, and building and executing growth strategies.

The post Implementing an alternating four-day workweek: how & why appeared first on Recruiting Resources: How to Recruit and Hire Better.

MIYO Health: optimizing the hiring process for education

Alexandros Pantelakis — Thu, 09 May 2024 12:08:05 +0000

MIYO Health, formerly known as Teleteachers, were born from a vision to address the glaring shortages in specialized educational services across various remote and underserved communities.

“Teleteachers was founded by a female speech language pathologist who wanted to create a network of other SLPs that could provide services virtually,” Sarah McLaurin explained.

This was especially crucial in areas “where kids live in rural areas where they might have a provider coming out to them once a month or once every few months.”

The initiative stemmed from sheer necessity, as McLaurin recounted, “She even worked in Alaska at one point, and in those villages out there, people had to take five planes and all kinds of transportation. So those kids were going without services.”

The evolution of technology provided a timely solution: “As technology has advanced, there’s the opportunity to be able to provide those services virtually, so that kids can have consistent services that they are legally entitled to.”

Expansion in service offerings

As the demand for virtual educational services grew, so did MIYO health. “

We started with SLPs but quickly expanded to include special education, occupational therapy, physical therapy, and even general education. It’s pretty much anything that you can teach in a classroom, we could teach online,” McLaurin highlighted.

This growth was organic but accelerated significantly with the advent of the COVID-19 pandemic, underscoring the crucial need for virtual platforms in education.

“The pandemic really pushed the importance and opportunity for virtual services to the forefront,” McLaurin noted. This period also marked a significant pivot for the organization, as they began to package their platform for broader use.

Optimizing the hiring process for education

MIYO health faced the dual challenge of rapidly scaling its workforce to meet burgeoning demand while ensuring that each hire meets stringent qualifications necessary for educational roles.

Sarah McLaurin elaborates on how they’ve optimized their hiring process to address these challenges effectively.

“As we continue to grow it was like the previous tools weren’t fulfilling all of our needs. I think that really came to a head when we had to hire 30 to 40 speech language pathologists and at that time that seemed impossible for a lot of companies.

“So, being able to navigate over to workable, we were able to get the word out a lot farther.”

Workable helped streamline the hiring process by allowing MIYO Health to disseminate job postings widely and filter applications efficiently.

“The challenge was to hire people and get them started as quickly as possible. It was really necessary for us to have somebody to apply today, possibly interview them tomorrow. Get another interview or another step by the end of the week and get them started next week.”

As a result, one of the things they really love at Workable is that “there are so many integrations into free job boards, and then other integrations as well, that we can do. It just automatically sends it out to all these different places.”

Educational background on MIYO Health’s HR approach

The significant impact of having a staff predominantly composed of former educators is evident in MIYO health’s HR strategies and operations. “What’s cool about our staff is that probably 90% of us are former teachers,” McLaurin proudly stated.

This shared background in education provides an invaluable perspective in understanding and addressing the specific needs of schools and students.

McLaurin elaborated, “We were all involved in special education. I was in gifted education as a classroom teacher. It’s wonderful that we know firsthand the burden and the amount of work and pressure that is on teachers in the classroom.”

This deep understanding directly influences how Teleteachers develop their products and services, ensuring they are empathetic to the educators’ daily challenges.

Commitment to educators and appreciation

During Teacher Appreciation Week, it’s especially pertinent to highlight how MIYO health supports and values educators, both in and out of the classroom.

“Our Operations and Hiring Team do such a great job of ongoing support with our providers.” states McLaurin.

MIYO Health sets itself apart from other staffing companies by going beyond simply placing educators.

They engage with them every step of the way and continue to support them in their assignments on an ongoing basis.

This commitment fosters strong relationships with both providers and districts, ensuring a successful and enriching learning environment for all students.

It’s all about helping these kids

MIYO Health aims to reduce the burdens on educators while enhancing the services provided to students.

“We don’t want to put something else on your plate, we want to take things off. We want to make things easier for you. At the end of the day, it’s all about helping these kids and making sure that they’re getting the help and the services that they desperately need,” McLaurin explains.

They also offer mental health services and technologies for schools to address the ongoing mental health crisis. Hence, their new name, MIYO Health, reflects their vision of solving the challenges in mental health and special education delivery.

As we celebrate Teacher Appreciation Week, our conversation with Sarah McLaurin reminds us of the critical role educators play in shaping future generations.

It also highlights the innovative approaches companies like MIYO Health are taking to support these educators through thoughtful HR practices. Also, through commitment to providing valuable, often life-changing services to students across the globe.

Sarah’s journey began in education, fostering a deep understanding of student needs and the power of engaging learning experiences. As an award-winning gifted educator, she crafted innovative curriculum and embraced technology to empower both students and teachers. This passion for education, coupled with her strong analytical and creative skills, led Sarah to the exciting world of EdTech. Now, she leverages her background to develop and launch impactful educational technology solutions, ensuring they effectively address the needs of learners and educators alike.

The post MIYO Health: optimizing the hiring process for education appeared first on Recruiting Resources: How to Recruit and Hire Better.

Leveling up with AI in your HR – digital upskilling for recruitment

Keith MacKenzie — Wed, 08 May 2024 18:41:31 +0000

Imagine stepping into an office of the future where traditional paper files are obsolete, replaced by digital holograms displaying candidate profiles in mid-air.

Sounds like a dream – but it’s now reality. We’re already seeing VR being used in onboarding and orientation, and in the workplace itself, with Apple, Meta, and others bringing their VR headsets and other technologies to the working environment..

Now we have AI – it’s not a futuristic concept at all. ChatGPT was just the beginning, and we’re now seeing countless AI technologies in hiring, management, and business strategy being developed every day.

This doesn’t just require adaptation on your part. It requires strategic upskilling in HR if you, the HR professional, are to stay relevant and competitive in your skill set.

The emergence of AI in HR

Workable’s AI in Hiring & Work survey report at the end of 2023 found that AI is used widely throughout organizations. More than three in five (62.5%) of all respondents say they’ve used AI in hiring processes over the last year.

The desire for greater efficiency drives growth, improved decision-making capabilities, and enhanced employee experiences.

AI and upskilling in HR: a strategic response

The shift towards AI and automation isn’t replacing jobs – it’s simply reshaping job roles and functions, making upskilling an essential strategy. The World Economic Forum (WEF) estimates that 1.1 billion jobs will be transformed significantly by technological advances.

The WEF also estimates that, by 2025, half of all workers will require reskilling to cope with emerging job functions including automation and AI technologies.

A 2024 Randstad report also finds that 29% of workers point to AI as among the top skills employees are interested in when upskilling and reskilling. Future-proofing is at the core of this motivation.

Upskilling not only prepares HR professionals for these new challenges. It also positions them to take advantage of AI’s benefits in recruitment, employee management, and policy implementation.

AI-powered HR tools: enhancing efficiency

Incorporating AI tools bring advantages, such as automating repetitive tasks and analyzing large data sets more efficiently than human counterparts. You can, for instance, use AI to boost employee retention, and AI-enabled predictive analytics to preempt turnover.

And platforms like Workable have revolutionized hiring processes by automating candidate screening and reducing the time spent on administrative tasks.

This allows HR professionals to focus on strategic decision-making and personalized employee engagement.

To invest in AI upskilling in HR, consider the following strategies:

1. Establish a micro-certification program

Following AT&T’s NanoDegree approach, create or procure a micro-certification program in partnership with an online learning platform.

Focus on specialized courses like data analysis for recruitment, predictive analytics for employee retention, or AI-based onboarding strategies.

2. Plan internal AI workshops

Similarly to Amazon’s Machine Learning University, organize internal workshops that offer hands-on experience with machine learning tools.

You can also invite experts to conduct sessions tailored to HR professionals, enhancing their understanding of AI-driven talent management.

3. Build personalized learning pathways

Develop a personalized learning pathway for yourself and your colleagues – via an app, online portal, or something similar.

Utilize assessment tools to identify knowledge gaps and tailor AI training modules that build on existing HR expertise, ensuring practical application.

4. Train your executives as well

Take a cue from Microsoft’s AI learning hub by organizing executive-level seminars focused on AI ethics, strategy, and data management.

Help HR leaders understand AI’s strategic implications in workforce planning, diversity hiring, and employee development.

Implementing these targeted upskilling strategies will empower you to seamlessly integrate AI into your recruitment and talent management.

Future trends: AI and the global workforce

Looking forward, we’ll see a spike in AI’s role in HR, influenced by global trends towards remote working and digital collaboration. AI can help manage geographically dispersed teams, enhance virtual training programs, and create personalized employee experiences at scale.

As businesses continue to navigate these changes, HR professionals must remain at the forefront of technological adoption, advocating for tools that improve both operational efficiency and employee satisfaction.

Upskilling human resources to utilize AI in its work is not merely about keeping up with technology – it’s also about leading the charge in redefining the workplace of the future. For HR professionals, upskilling in AI is a pivotal step toward enhancing your strategic role and driving your organizations toward innovative horizons.

HR’s future is an intelligent one, one that offers opportunities to those who level up with it.

The post The role of AI in talent acquisition: a study for recruiters appeared first on Recruiting Resources: How to Recruit and Hire Better.

10 HR video memes you wish you’d watched before

Alexandros Pantelakis — Thu, 11 Apr 2024 14:45:54 +0000

I get it, the 9-5 grind can feel monotonous at times. Amidst the cumbersome tasks, it’s highly recommended to find moments of entertainment. While we equip you with all the resources and tech you need for HR, today, we’re taking it a step further by bringing you some lighthearted humor.

Just remember to keep those big laughs in check so you don’t disturb anyone!

Every video comes with a lesson, so let’s begin.

1. When you have good week of HRing

Congratulations! You had a successful and productive week in your human resources role.

This could include using cutting edge HR technology like our Workable Suite, achieving key objectives such as hiring new employees, managing employee relations effectively, implementing HR policies or initiatives, conducting training sessions, resolving conflicts, and generally contributing positively to the organization’s HR functions. Well done.

Receive this video as a reward for your good work.

View this post on Instagram

A post shared by HR Memes (@hr.memes)

2. Return to work, please….

If you are among those striving to bring employees back to the office and searching for motivators, this video is for you. You are not alone.

View this post on Instagram

A post shared by HR Memes (@hr.memes)

While remote work offers flexibility, the office provides a unique space for mentorship, team synergy, and professional growth.

We recognize your RTO efforts, which is why you can find many articles on that topic. From strategies and AI assistance, to what really works for your business and the potential benefits.

3. Update employee handbook

*plays error sound* – Yep, working in the HR department means you need to do that often. As your company grows, your technology changes, your sensitivity increases; there is a need for updating your employee handbook.
It’s your time to thrive, obviously:

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A post shared by HR Memes (@hr.memes)

But keep cool. Consider the changes, foster transparency within your company, and make it genuinely helpful for your employees. We can almost feel your satisfaction when you confidently answer, “You’ll find this in your employee handbook, you *****.”

4. What is it like being in HR these days?

Caution: Skip this video if you’re prone to dizziness.
As the saying goes, “Nothing surprises me, I work in HR,” and we’re sure this video will resonate with you.

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A post shared by HR Memes (@hr.memes)

A Chief People Officer (CPO) or a Chief Human Resources Officer (CHRO) holds a senior role tasked with managing an organization’s human resources and talent strategies.

They are primarily responsible for directing and optimizing all aspects of an organization’s human capital, including talent acquisition, development, retention, and overall employee experience.

Holding such a high-ranking position requires strong interpersonal skills for effective communication, empathy to understand and address employee needs, adaptability to navigate diverse situations, and leadership abilities to inspire your team.

Welcome to the world of executives, where every day is a roller-coaster ride, but it’s still a fun adventure!

5. We already answered that question…

Do you remember number 3? Well, forget it. People are always going to ask you things when you work in HR.

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A post shared by HR Memes (@hr.memes)

One effective strategy to avoid this is by creating and maintaining a comprehensive FAQ (Frequently Asked Questions) document – or confluence pages. You didn’t learn that from me.

By compiling answers to commonly asked questions about company policies, benefits, procedures, and other HR-related topics, employees can – hopefully – find the information they need without having to ask you directly.

I have to admit something, though. Many of them won’t read them, which drives us to the next one…

6. When employees don’t read HR emails

Don’t take it personally. It happens. People who have worked in customer service can tell you thousands of stories like this.

View this post on Instagram

A post shared by HR Memes (@hr.memes)

One tip here, especially for urgent announcements, is to utilize every communication channel you have. You can send an email, ping them on your corporate messaging app, or take the megaphone and start shouting it to everyone (please don’t).

Another tip is to leverage personalization in your emails and clearly communicate expectations, following up as needed.

7. HR people navigating their tasks

You have a lot on your plate. You need to respond to requests, implement or write new policies, stay aligned with current legislation, follow specific processes, and ensure that everything is functioning properly.

You probably feel like this:

View this post on Instagram

A post shared by Hacking HR (@hackinghr)

Prioritization, organization, and collaboration are key. Utilize project management tools and systems to track requests, deadlines, and policy updates.

Establish clear processes for policy development and implementation, ensuring alignment with current legislation through regular reviews and updates.

Delegate tasks where possible, leveraging the expertise of team members, and communicate expectations clearly to ensure smooth functioning.

We hope we’ve been able to assist.

8. What about a pay raise?

Covid-19 and inflation have had a strong impact on the corporate world. Bonuses and raises were among the first to be affected. So how do you handle a request for a pay raise as an HR professional?

Certainly not like this:

View this post on Instagram

A post shared by MEMEZAR • MEMES & MEME-CULTURE (@memezar)

Acknowledge the request with appreciation and empathy, explaining the current inability to offer raises due to constraints or policies.
Offer alternatives such as additional responsibilities or training opportunities. Assure them of ongoing advocacy and transparent communication regarding any future changes or opportunities.

9. Employee feedback survey leaked

Look how such an important tool in your organization can transform into a nightmare.

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A post shared by Corporate Majdoor (@corporate__zindagi)

Leaking employee feedback survey results breaches trust, violates privacy, and hampers future participation. The leaker could be anyone from HR, managers, or IT staff.

It fosters a hostile environment, damages morale, and undermines transparency.

HR can prevent leaks by controlling access, providing training, establishing clear policies, using anonymous reporting, monitoring access, and promoting trust.

10. Trying to be strategic

Simply, you can’t do everything simultaneously. You need to prioritize because all your efforts would be like this:

View this post on Instagram

A post shared by Hacking HR (@hackinghr)

To be more strategic in HR, align HR activities with your organization’s goals. Understand the business deeply, use data for evidence-based decisions, and focus on impactful areas like talent management and organizational culture.

Build strong relationships across the organization to ensure HR initiatives support broader objectives.

Stay updated on workforce trends to adapt strategies proactively, positioning HR as a key player in achieving business success.

Feel free to share these videos with your colleagues in HR and let us know if you enjoyed them on the comments of our social media posts.

Until next time!

The post Optimize your hybrid work environments – Here’s how appeared first on Recruiting Resources: How to Recruit and Hire Better.

What is the biggest HR challenge now? We asked 10 HR experts

Alexandros Pantelakis — Mon, 29 Apr 2024 11:59:35 +0000

It’s logical that challenges faced by HR a few years ago persist today.

The COVID-19 pandemic has necessitated remote work, which remains a challenge.

Additionally, issues like retention and talent acquisition continue to hurdle companies in search of the best hires.

Technology evolves rapidly, with AI becoming increasingly prevalent. HR teams are exploring how AI can serve as an invisible coworker, automating time-consuming and manual tasks.

Let’s find out more about it below.

1. Remote work and team morale

The sudden shift to remote work has been one of the most significant changes businesses have faced in the previous years. This transition has placed new demands on HR departments to maintain company culture and employee morale without the traditional physical workplace.

Dan Dillon, the founder of CleanItSupply, explains the core of this challenge: “As we moved online in response to the pandemic, keeping the team spirit alive and maintaining employee morale remotely has required a whole new approach to leadership and workforce management.”

In his company, they undertook additional measures to enhance employee engagement.

“We initiated weekly virtual team-building activities to foster stronger connections amongst teams. We also revamped our performance management system, focusing more on results and less on hours worked, to encourage a healthy work-life balance while maximizing productivity.”

Similarly, Max Shak of Nerdigital highlights the difficulties in “maintaining a strong company culture” in a remote setting. He notes that creating a sense of belonging and aligned purpose among dispersed teams has demanded innovative solutions and adjustments to HR practices.

The consensus among HR leaders like Laurie Hyllberg of Kinsa Group is that adapting to the rapidly changing work landscape, especially in terms of remote work and digital transformation, presents significant HR challenges.

Laurie mentions, “One of the most significant HR challenges we currently face in our industry revolves around adapting to the rapidly changing work landscape, particularly in remote work and digital transformation. As VP overseeing our strategic direction in HR, I’ve observed these shifts firsthand while maintaining a strong company culture and ensuring operational efficiency.”

These statements highlight a universal HR focus about how to effectively manage remote work to ensure that it benefits both the company and its employees.

2. Talent acquisition and retention

Another perennial challenge that has intensified in the current job market is talent acquisition and retention. The competitive job market has made it crucial for HR to not only attract but also keep top talent.

Viktoriia Prydatko, from HireDeveloperBiz, addresses this challenge: “As an HR professional, one of my biggest challenges is attracting and retaining top talent in a highly competitive job market. With the availability of job openings increasing and candidates having multiple options to choose from, it’s becoming increasingly difficult to find the right fit for our organization.”

She stresses the importance of creating a positive and satisfying work environment that not only draws skilled professionals but also encourages them to stay.

Joe Coletta, CEO of 180 Engineering, echoes this sentiment, pointing out the difficulties in “attracting and retaining highly skilled and qualified candidates.” He highlights the competitive nature of the technical recruitment field, where top talent often has multiple offers to consider.

He also commented on the technological information that we are going to elaborate on in the next section:

“With technology and data analytics, it’s possible to analyze metrics such as employee performance, engagement levels, and retention rates to identify trends and design targeted strategies.” – Joe Coletta

“I’ve noticed some of the best HR departments leverage the vast amounts of data available to them in today’s digital age to drive insights and informed decision-making. With technology and data analytics, it’s possible to analyze metrics such as employee performance, engagement levels, and retention rates to identify trends and design targeted strategies.”

These insights reveal a shared struggle across industries to tackle the dual issues of hiring qualified individuals and ensuring they have compelling reasons to stay.

3. Technological integration and adaptation

The integration of technology in HR processes is a critical theme that runs through many of the challenges highlighted by HR professionals.

This encompasses everything from recruitment processes to employee management and data analytics.

Garrett Ham, CEO of Weekender Management details the balancing act required in tech integration: “One distinct challenge we’ve faced is the integration of technology in streamlining operations while ensuring that our team is not only tech-savvy but also possesses strong interpersonal skills crucial for guest relations and conflict resolution.”

Similarly, Laury Hyllberg of Kinsa Group explains how helpful it was for them to use HR technology:

“We’re focused on leveraging technology to enhance our HR practices while being mindful of the human element crucial to our success.” – Laury Hyllberg

“We’re focused on leveraging technology to enhance our HR practices while being mindful of the human element crucial to our success. This includes investing in training and development opportunities, fostering open lines of communication, and creating virtual spaces for collaboration and social interaction.”

These perspectives highlight the important role of technology in modern HR, both as a tool for efficiency and as a potential area of upskilling/reskilling.

4. Industry-specific challenges

Each industry faces its unique set of HR challenges, shaped by market demands, workforce composition, and regulatory environments. HR professionals must tailor their strategies to meet these specific needs effectively.

Tawny Lott Rodriguez of Rowland Hall discusses the global scope of talent acquisition, which has expanded significantly in the digital age.

“Gone are the days of recruiting from a local pool. Today, we’re in a global battle for the best minds.” – Tawny Lott Rodriguez

“Gone are the days of recruiting from a local pool. Today, we’re in a global battle for the best minds. We need laser focus, innovative strategies, and forget the old interview tactics – it’s time to think human touch and impeccable employer branding to attract top talent.”

This global competition necessitates a more dynamic approach to HR practices, from understanding diverse cultural backgrounds to managing different time zones and legal frameworks.

In sectors with high employee turnover, such as the service industry, specific challenges emerge. Nick Valentino of Bellhope Atlanta Movers highlights the difficulty of managing turnover:

“One of the biggest challenges we’re running into right now is keeping up with turnover for our seasonal positions. This has been an issue for us since our business launched, but it’s definitely not getting easier as we grow. Because we operate nationwide, one of the hardest parts of this is setting compensation levels competitively in each individual market.

“Especially in dense, urban areas, it can be tough for us to hit the sweet spot of competitively pricing our services and adequately compensating our staff.”

This challenge requires innovative HR solutions that not only address recruitment but also focus on retention strategies, even in temporary roles.

5. Training opportunities

Philip Wentworth, Jr, of Rockerbox.tech, discusses the need for additional knowledge that a specific product may require: “The primary hurdle has been ensuring our team isn’t only tech-savvy but also deeply understanding and empathetic toward the unique challenges our small business clients face.

“With a focus on developing solutions for employer-based tax credit programs, staying ahead in a niche yet complex field requires a specialized skill set combined with a high degree of adaptability.

“One effective strategy we’ve implemented is fostering a culture of continuous learning and innovation within our team.” – Philip Wentworth

“One effective strategy we’ve implemented is fostering a culture of continuous learning and innovation within our team. For example, we introduced a regular “Innovation Hour” where team members can explore new possibilities in tax credit programs or pitch technological advancements without the constraints of their everyday roles.”

Dylan J. Cleppe from OneStop Northwest LLC sheds light on the complexities of managing a diversified service portfolio: “We aim to integrate a multitude of services for businesses, including SEO, payroll, HR, and social media management. This has presented a set of unique HR challenges.

“The most pressing challenge we face is finding and retaining multi-disciplined professionals who are not only adept in their respective fields but can also cross-functionally collaborate to deliver a holistic service to our clients.

“This necessitates an ongoing investment in a dynamic learning environment and fostering a culture that values versatility and continuous improvement..”

As technology evolves and new products are launched, companies have to train their employees to ensure they are up-to-date and can integrate this knowledge into their roles.

This exploration of HR’s biggest challenges reveals the complex landscape that HR professionals navigate. From adapting to remote work and integrating technology to managing industry-specific challenges and providing training, these professionals play a crucial role in shaping the future of work.

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On-demand pay: the pros and cons of earned wage access

Keith MacKenzie — Fri, 03 May 2024 17:19:16 +0000

In today’s rapidly evolving workplace, employee expectations are driving significant transformations. Among these changes is the rising popularity of on-demand pay, a trend that empowers employees to access their earned wages before the standard payday.

This approach addresses the limitations of traditional pay cycles, which often fail to align with the immediate financial needs of workers. By offering flexibility and control over earnings, on-demand pay is reshaping the employee compensation landscape.

Let’s get into the meat and chaff of all the things you wanted to know about on-demand pay and were afraid to ask.

What is on-demand pay?

On-demand pay, also known as earned wage access (EWA), is a payroll model that allows employees to access their earned wages before the traditional payday.

This payroll feature enables your workers to withdraw a portion of their accrued but unpaid earnings at their discretion, often through a digital platform or app provided by their employer or a third-party service. It can also be a “trickle” of pay into your employees’ accounts on a regular basis with greater frequency than the traditional biweekly / bimonthly / monthly models.

The idea of on-demand pay is to provide financial flexibility, which has a range of benefits for both employees and employers.

Benefits of on-demand pay for employees

There are numerous reasons your employees might like an on-demand pay model. First, on-demand pay addresses the financial stress faced by many workers. When offering on-demand pay, employees are better able to manage their personal expenses on a regular basis. They don’t need to wait until the end of the two-week or monthly cycle for a paycheck as bills pile up.

According to PwC’s Employee Financial Wellness Survey 2023, 28% of full-time employees often or always run out of money between paychecks. Even among those who earn $100,000 or more per year, 15% always or often run out of money between paychecks. On-demand pay would help ease these challenges.

The culture of immediate delivery is a factor as well. Borja Perez, VP at EWA provider CloudPay, told TLNT: “People are used to instant gratification in so many aspects of their lives, and they expect the same with their pay. Instead of waiting for payday, employees want immediate access to the wages they’ve earned.”

“People are used to instant gratification in so many aspects of their lives, and they expect the same with their pay. Instead of waiting for payday, employees want immediate access to the wages they’ve earned.”

The rise of the gig economy and freelance models in today’s working world is also an influence. A more dynamic working environment brings the expectation of more flexible payment options.

People do like it – especially younger generations. According to ADP’s Earned Wage Access study, 59% of millennials put higher priority on a job offer when that employer offers on-demand pay or EWA.

Benefits of on-demand pay for employers

In the ADP study, there’s positive sentiment among employers regarding the business benefits. For instance, 96% of employers offering EWA also find that their employees like it. That same study finds 96% saying it helps with talent attraction, and 93% saying it helps with employee retention.

Also, according to Employee Benefit News, four out of five employers (80%) say EWA improved mental health in their teams, and 88% of business leaders offering EWA saw decreased stress in their employees.

There are intangible benefits as well. By offering on-demand pay, employers can alleviate financial stress, leading to a more focused, satisfied, and productive workforce.

Modernization of payroll processes is also a factor. An earned-wage access model streamlines payroll operations, potentially reducing administrative burdens and costs associated with traditional payroll cycles.

Overall, it can benefit your employer brand, positioning your company as an innovative and employee-centric organization.

The drawbacks of on-demand pay

There are, of course, drawbacks to on-demand pay. It may lead to impulsive spending on the part of employees if they lack financial literacy or discipline. While this falls more on the employee than it does on you as an employer, it’s worth thinking about.

Also, some on-demand pay services charge extra fees, which can add up over time.

And finally, in contrast to the above-listed benefit of reduced administrative work. an on-demand pay model built into an existing payroll system can lead to numerous technical and logistical headaches, at least in the short term.

On-demand pay: an evolution or just a fad?

On-demand pay is gaining traction globally. A report from Zion Market Research predicts a rise in the earned wage access software market from $22.5 billion in 2022 to $26.74 billion by 2030. That same report highlights opportunities in countries with a high rate of daily wage workers where on-demand pay models make sense.

It’s also increasingly legislated. In April 2024, the US Congress advanced the Earned Wage Access Consumer Protection Act to ensure a regulatory framework and establish consumer protections for services that offer workers access to their paychecks before their scheduled payday.

On-demand pay – or earned wage access – could mark a paradigm shift in employee compensation that empowers workers with financial flexibility and control. It could be another ingredient in how the future of work is shaped.

On the other side of the coin, employers are apprehensive about the administrative factors – although with time, practice, and guardrails, these can be resolved.

Employees may also be hesitant because of the implications it might have on their taxes. Those worries may be short-lived as the US Treasury Department continues to update the Internal Revenue Code to clarify tax treatments of on-demand pay models.

What it all boils down to is this: what do your employees want in terms of compensation? And what works best for you as an employer? Weigh out the benefits and risks from an on-demand pay model and act accordingly.

The post Pay transparency: the pros, the cons, and best practices appeared first on Recruiting Resources: How to Recruit and Hire Better.

The future of AI in work: majority sees growth in this area

Keith MacKenzie — Thu, 02 May 2024 15:14:24 +0000

AI in the workplace continues to be a focal point for professionals across various industries. But what will it look like in the future? That’s the question we sought to answer with Workable’s AI in Hiring & Work survey which launched in January 2024.

In the dataset, nearly four out of five respondents (78.9%) anticipate a substantial or slight increase in the importance and usage of AI.

Only a small fraction (4%) predict a decrease, underscoring a strong consensus toward AI’s expanding role.

It’s clear that AI’s influence is not just present but growing, not just tangibly but in the eyes of our respondents.

The industry lens

Differences stand out when we look at the dataset across industries. Notably, 52.7% in Construction predict a substantial increase in AI usage compared to the overall 38.2%. This suggests a significant shift toward more technologically integrated operations.

IT / Technology / SaaS (83.3% vs. 78.9% overall) and Manufacturing (83.2%) see AI increasing over the next few years as well. This aligns with their core operations which naturally integrate newer technologies faster.

At the other end, Healthcare stands out with 6.9% anticipating a slight decrease, possibly reflecting concerns around AI’s implications in sensitive areas such as patient care.

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How to use automation to avoid the awkward HR questions

Alexandros Pantelakis — Tue, 30 Apr 2024 16:46:14 +0000

Larry wondered if dating someone from work was a good idea. He really liked a person who worked near him, but he wasn’t sure if it was okay.

Dawn felt tired after many meetings and wanted a longer lunch break to relax. She wondered if it was possible without causing trouble.

Sam worried that the company was watching what he did online. He couldn’t tell if it was real or just his imagination.

Molly felt sad when she found out about a job opening too late. She wanted to know why nobody told her about it.

Vince didn’t like taking time off work. He wondered if he could avoid using his vacation days.

Olivia got excited about the idea of getting a bonus. She wondered when it would happen and if it was real.

They all needed to reach out to HR to ask the burning questions.

But would they avoid that if there was another way to obtain the information they wanted without having to pose these uncomfortable queries?

The awkward questions list

Still wondering what the questions are?

Let us break them down for you:

Is it okay to date someone from the workplace?
Can I take a longer lunch break if I come in early and leave late?
Is the company monitoring my emails and internet usage?
Why wasn’t I informed about the internal job posting before it was filled?
What happens if I don’t want to use my vacation days?
Is this Nick a higher-up?
What is his/her job role?
Will I receive a bonus and when?

Do you see yourself fitting into any of those scenarios?

I know there are even more. If you ask an HR professional, they will come up with dozens of them.

Each of these questions pertains to various workplace concerns and dynamics.

The topics cover various aspects of workplace dynamics and policies. They touch on the challenges of dating coworkers and navigating professionalism, conflicts of interest, and HR guidelines.

Additionally, there’s discussion about work-life balance, with considerations for extra hours worked versus time off taken.

Privacy concerns arise regarding surveillance in the workplace, particularly related to email and internet usage monitoring. Communication and transparency within the organization are also scrutinized, especially concerning internal job postings and the dissemination of pertinent information to employees.

Leave policies, including the implications of not utilizing allocated vacation days, are highlighted.

Lastly, inquiries into organizational hierarchy and employee benefits, including the role of an individual named Nick within the company and the timing of potential bonuses, round out the breadth of topics.

Each one underscores different aspects of workplace culture, policies, and interpersonal dynamics that can impact employee experiences and relationships within the organization.

We have automation now

Utilizing AI-powered technology alongside collaborative tools or an HRIS can enhance accessibility to information and streamline HR processes. Let’s elaborate on them one-by-one:

Human Resource Information Systems

An HRIS like Workable can streamline the process of answering these questions without requiring in-person interaction. Here’s how:

Policy documentation: An HRIS can store and provide access to company policies and procedures regarding workplace relationships, lunch breaks, digital privacy, job postings, vacation policies, and bonus eligibility.

Employees can easily refer to these documents online, ensuring clarity and consistency in information dissemination.

Self-service portals: HRIS platforms often include self-service portals where employees can find answers to commonly asked questions. Employees can log in to the portal to access information about company policies, benefits, and procedures, reducing the need for direct HR involvement.

Automated notifications: HRIS systems can automate notifications regarding important updates or changes in policies, job postings, or bonus structures. This ensures that employees are informed in a timely manner, mitigating confusion or frustration over missed opportunities or outdated information.

AI-powered chatbots

This can be combined with the previous one, significantly increasing efficiency.

AI-powered chatbots or virtual assistants integrated into HR platforms can respond to employee queries instantly and accurately.

These bots can be programmed to understand natural language, providing personalized support on topics such as workplace policies, break schedules, vacation accrual, and internal job postings.

By leveraging AI, employees can access relevant information without needing direct interaction with HR personnel, promoting self-service and efficiency.

Collaborative tools

Platforms like Confluence offer centralized repositories for HR-related documentation, including policies, procedures, and FAQs.

HR teams can maintain up-to-date information on Confluence pages, ensuring employees have access to the latest guidelines and resources avoiding asking awkward questions.

Employees can search for answers independently within Confluence, finding information on topics such as workplace relationships, vacation policies, organizational hierarchy, and bonus structures.

Collaborative features allow HR teams to collaborate on document creation and updates, ensuring accuracy and consistency across materials.

Why is it important to avoid the awkward questions

Companies benefit greatly from working to avoid recurring employee questions and automating their resolution processes through HR technology.

By proactively addressing common inquiries and streamlining responses, companies can save valuable time and resources for both HR professionals and employees.

Automation reduces the burden on HR staff, allowing them to focus on strategic initiatives and more complex employee needs rather than repetitive administrative tasks.

Furthermore, by providing clear, consistent, and readily accessible information through self-service portals and automated notifications, companies can improve employee satisfaction, foster a culture of transparency and trust, and enhance overall organizational efficiency.

Additionally, automation helps ensure compliance with company policies and regulations by consistently applying rules and procedures across the organization.

Overall, investing in systems to automate and manage employee awkward questions not only enhances HR effectiveness but also contributes to a more productive and engaged workforce.

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Internal mobility: benefits, challenges, and the impact of AI

Alexandros Pantelakis — Tue, 30 Apr 2024 12:01:17 +0000

Imagine George, a talented software developer at a fast-growing SaaS company. George has been working in the product development team for over three years, building robust code and gaining deep insights into the technical challenges her company faces.

While he excels in her current role, George aspires to understand the broader business implications of the software she helps create. Recognizing her potential, her company offers her a temporary role in the product management team.

This move is not just a change of scenery for George, it’s an opportunity to understand different aspects of the business, enhance his skills, and contribute more significantly to his organization’s goals.

This is a prime example of internal mobility, a crucial strategy in modern organizational management that benefits both the employee and the company.

What is internal mobility?

Internal mobility refers to the movement of employees across different roles, departments, or geographies within the same organization.

It is an integral part of human resource strategies aimed at leveraging existing talent by providing opportunities for growth and development while filling internal needs for key skills.

There are three types of internal mobility

Lateral moves: These occur when an employee moves from one role to another at the same level. These moves are often aimed at broadening an individual’s skills and experience.
Promotions: Moving an employee to a higher-level position within the organization, which typically involves more responsibilities and a change in job status.
Temporary assignments or rotations: These are short-term changes in an employee’s role, often used for project-based work or developmental purposes, much like George’s move to the product management team.

Objectives of internal mobility

The objectives of internal mobility are diverse and impact various aspects of organizational health and employee engagement:

1. Career development

Internal mobility is instrumental in career development, providing employees like George opportunities to learn new skills and gain exposure to different facets of the business.

This not only helps in building a versatile skill set but also prepares employees for higher responsibilities, making them well-rounded professionals.

2. Organizational agility

Today, organizational agility is more crucial than ever. Internal mobility allows companies to quickly reallocate resources to where they are most needed, adapting swiftly to market changes and business needs without the delays of external hiring processes.

3. Retention and satisfaction

Internal mobility is closely linked to higher rates of employee retention.

According to data from LinkedIn’s 2023 Workplace Learning report, employees who have made an internal move by the end of their second year with a company have a 75% likelihood of staying, compared to a 56% likelihood among those who remained in the same position.

Employees are less likely to seek opportunities outside if they feel their current employer supports their career development and offers them new challenges.

This is particularly relevant in industries with high turnover rates, like technology and digital services.

The benefits for your organization

We’ve already highlighted the objectives of internal mobility. But what about the additional benefits for the company? From enhanced collaboration to strategic alignment, companies stand to gain significantly from this process.

1. Strategic alignment and succession planning

By allowing employees to traverse various roles and departments, organizations can develop a workforce that understands multiple aspects of the business. This understanding is crucial when identifying potential leaders for succession planning, ensuring the company’s future is in knowledgeable and capable hands.

2. Enhanced collaboration and innovation

When employees move across departments, they bring unique perspectives that can lead to innovative solutions and improve collaboration. This cross-pollination of ideas is crucial for innovation, helping break down silos and fostering a culture of continuous improvement and creative problem-solving.

3. Cultural integration

As employees move within an organization, they spread and reinforce the company culture. This movement helps in building a unified culture that supports the organization’s values across all departments, which is essential for maintaining a cohesive work environment.

There are challenges too

While the benefits of internal mobility are clear, several barriers can impede its successful implementation.

Common challenges include managerial resistance to losing top talent, lack of a structured internal mobility program, and inadequate HR technologies to track employee skills and match them to internal opportunities.

Overcoming these barriers requires a proactive approach, beginning with strong leadership support to champion the benefits of mobility.

A Deloitte survey reveals that only 6% of respondents believe their organizations excel at moving people from role to role, and 59% rate their ability as fair or inadequate. The survey also indicated that 49% of respondents see a lack of processes to identify and move employees as a major barrier.

AI can change the way we think about internal mobility

The advent of artificial intelligence and other new technologies has created new job roles and increased the necessity for internal mobility, ensuring that organizations can quickly fill roles that are newly significant or have never existed before.

Utilizing AI technology, organizations can now pinpoint skill deficiencies and identify internal candidates primed for career advancement, according to Tom Baker, Head of Talent and Resourcing at M&G.

This approach ensures that individuals possessing the requisite skills and potential are duly considered for new opportunities within the company.

While encouraging employees to take charge of their career paths is a common discourse in talent management, equipping them with the right tools remains imperative.

AI-powered tools can be a pivotal solution in this regard. These platforms empower employees to craft personalized learning journeys, pinpoint relevant training programs, and align their career trajectories with individual interests and organizational skill needs.

Consequently, employees can proactively acquire the skills necessary for future roles, fostering a culture of continuous growth and development.

In addition, AI-driven predictive analytics emerge as invaluable allies, simplifying the complexities of this task.

By analyzing workforce data and industry trends, these tools forecast forthcoming skill requirements and potential talent shortages.

Armed with such foresight, talent leaders can devise effective strategies, ensuring the organization maintains a well-equipped workforce ready to tackle future challenges head-on.

Best practices for effective internal mobility programs

To implement a successful internal mobility program, organizations should adopt several best practices:

Leadership support: Encourage leaders to endorse and actively participate in the mobility program.
Clear policies and procedures: Develop transparent policies that outline the process for internal applications, selection criteria, and career development opportunities.
Effective communication: Regularly communicate the availability of internal opportunities and success stories to motivate employees to participate in the program.
Robust HR systems: Invest in HR technology that can track employee skills, career aspirations, and internal job openings to facilitate the matching process.

By investing in robust internal mobility practices, companies can retain top talent, adapt to changing market conditions, and ensure a competitive edge in their industry.

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The future of hiring: 7 of 10 say AI usage will rise

Keith MacKenzie — Thu, 25 Apr 2024 20:08:48 +0000

Reflecting on the future of AI in hiring, the outlook is cautiously optimistic and grounded. That’s what we’re seeing in the dataset from Workable’s AI in Hiring & Work survey.

Notably, a substantial majority of respondents foresee a continued rise in AI usage within the hiring processes, with 68.1% of participants anticipating either a substantial or slight increase in the deployment of these tools in their companies’ recruitment strategies.

This suggests a broad acceptance and integration of AI as a beneficial component in streamlining and enhancing the recruitment process.

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Additionally, about one in five (24%) believe that the utilization of AI tools will remain consistent, underscoring a stable confidence in the technology’s current contributions to recruitment.

This forward-looking perspective is anchored in practical expectations rather than far-fetched predictions, indicating that the integration of AI into hiring processes is seen not just as a passing trend, but as a substantive shift towards more efficient, data-driven recruitment practices.

As AI tools become more sophisticated, they are likely to further influence how organizations attract, screen, and retain talent, potentially making the hiring process more predictive of candidate success and aligning it more closely with organizational goals and culture.

The industry lens

When breaking down the responses by industry, we see some interesting discrepancies in how each sees the future of AI in hiring.

Construction is far ahead of the pack (44% vs. 26.8% overall) in predicting substantial increase of AI in hiring over the next five years, while IT / Technology / SaaS (72.7% vs. 68.1% overall) predict a substantial or slight increase.

Retail is more likely to see a slight or even substantial decrease of AI use in hiring (9%) than the overall (5.8%).

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The noncompete agreement ban: what you need to know

JamieLee Watson — Wed, 24 Apr 2024 17:32:14 +0000

The Federal Trade Commission (FTC) has made a groundbreaking decision that will significantly affect employees and employers across the United States.

The FTC has decided to limit the enforceability of most noncompete agreements in employment contracts, except those applicable to senior executives.

The FTC defines senior executives as workers earning more than $151,164 annually who are in a “policy-making position.”

Noncompete agreements for regular employees, such as those in sales or marketing or engineering teams, will no longer be enforceable.

The background

Noncompete agreements were once limited to highly paid executives to prevent them from sharing confidential information with other companies.

However, in recent years, such agreements have become more common in lower-paying jobs such as fast-food workers, yoga instructors, and maintenance workers.

These agreements can prohibit workers from taking a job with a competitor, starting their own business, or even working in the same industry for a set period after leaving their current job.

They can sometimes be so broad that they prevent workers from finding new employment in their chosen field – thereby limiting their career options.

“The freedom to change jobs is core to economic liberty and a competitive, thriving economy,” says FTC Chair Lina M. Khan.

“Noncompetes block workers from freely switching jobs, depriving them of higher wages and better working conditions, and depriving businesses of a talent pool they need to build and expand. By ending this practice, the FTC’s proposed rule would promote greater dynamism, innovation, and healthy competition.”

Employees will have more freedom to navigate the job market and explore new opportunities. The FTC believes that this change will provide more choices for employees and enable them to explore new places of work without the fear of being tied down by noncompete agreements.

However, it’s important to note that without noncompete contracts, employees may face increased competition and potential loss of job security.

What this means for you as an employer

In the current business landscape, employers are advised to be cautious about their restrictive covenants to ensure compliance with legal regulations. To safeguard their business interests, they should consider implementing appropriately tailored nonsolicitation or confidentiality clauses and limit trade secret access only to those who need it.

Employers who are concerned about the FTC rule, as well as broader legislative and regulatory efforts to restrict the use of noncompete agreements, may look into other options to protect their confidential information and business relationships. This could include nondisclosure and nonsolicitation agreements.

However, ensuring that these agreements comply with local, state, and federal laws is crucial.

The FTC hopes to encourage worker mobility, enhance competition, and stimulate innovation by limiting noncompete agreements. This decision will also benefit small businesses and startups, which often need help recruiting and retaining top talent due to their inability to offer competitive salaries and benefits.

Overall, this recent decision to limit the use of noncompete agreements in the US has been widely praised by experts as a significant move towards promoting competition and dynamism in the job market.

Noncompete agreements restrict employees from working for a company’s competitors for a certain period after leaving. While these agreements were originally intended to protect companies’ trade secrets and intellectual property, they have often been misused to limit workers’ mobility and bargaining power, resulting in reduced wages and stunted career growth.

The rule will take effect 120 days after publication in the Federal Register, which if published now, makes it effective in late August 2024. Publication typically happens several days after approval – however, legal challenges may delay enforcement. Business groups led by the US Chamber of Commerce have already taken legal action.

Disclaimer: Workable is not a law firm. This article is meant to provide general guidelines and should be used as a reference. It’s not a legal document and doesn’t provide legal advice. Neither the author nor Workable will assume any legal liability that may arise from the use of this article. Always consult your attorney on matters of legal compliance.

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Your best co-worker yet: the human-AI working relationship

Keith MacKenzie — Tue, 23 Apr 2024 19:02:35 +0000

As HR professionals, we’ve all lost a co-worker to another opportunity, retirement, or for some other reason, and while that co-worker will be missed, we quickly wonder how long it will take to replace them and how much of their job responsibilities will I have to take on.

Now, imagine this: instead of your manager informing you that the job posting for the vacant position has been posted, they announce that the organization has decided to implement AI-driven solutions to handle the responsibilities previously managed by the departing individual.

You are immediately skeptical of this new development.

“How will AI know how to do my former co-worker’s job?”

“We were working on some projects together. What will happen to those?”

These questions abound, among other fears and uncertainties.

However, a fascinating journey of discovery and adaptation unfolds, illustrating the symbiotic relationship between humans and AI in the workplace.

A fascinating journey of discovery and adaptation unfolds, illustrating the symbiotic relationship between humans and AI in the workplace.

AI integration is becoming increasingly prevalent in today’s rapidly evolving landscape of workplace dynamics. From streamlining operations to enhancing decision-making processes, AI has undoubtedly transformed various facets of organizational functioning.

However, as illustrated in the example above, when it comes to HR, the introduction of AI can evoke a spectrum of emotions, ranging from curiosity to apprehension.

At the heart of this narrative is the recognition that AI can be a valuable tool for HR professionals when used strategically and ethically. By leveraging AI’s capabilities, organizations can streamline administrative tasks, optimize recruitment processes, and gain actionable insights from vast datasets.

Returning to our original scenario, one of your former co-worker’s tasks was answering questions about employee benefits. Imagine: instead of being directed to a phone number, employees are now greeted by a chat box that provides instant access to not only the benefits information but also other HR-related information, policies, and procedures.

These AI-driven assistants can enhance HR service delivery, reduce administrative burden, and improve employee experience, all of which contribute to a more efficient and effective HR function.

But I understand you may have concerns. If AI can handle my former co-worker’s primary responsibility, what about my own job? It’s a valid question.

The value of the human touch

Amidst the excitement about the potential benefits of AI in HR, it’s important to remember the human aspect of this technological integration. While AI may excel in executing repetitive tasks and providing readily available information, it cannot replicate the nuanced understanding, empathy, and creativity that are inherent to human interactions.

Therefore, the HR function must navigate the human-AI relationship with care, ensuring that technology complements rather than replaces human expertise and intuition. This human-centric approach is crucial to maintaining the unique value that HR professionals bring to the table.

In fact, amidst the optimism about AI’s potential benefits, it’s essential to dispel the notion that AI is a substitute for human involvement in HR. While AI can enhance efficiency and effectiveness, it cannot replace the human touch in areas such as employee relations, conflict resolution, and leadership development.

HR will always need humans – individuals who possess empathy, intuition, and a deep understanding of human behavior.

Easing the workload

As a former HR leader and consultant to HR professionals, I am particularly excited about one of the most significant advantages of AI in the HR realm: the potential to alleviate stress and burnout among HR practitioners.

By automating mundane and time-consuming tasks such as data entry, scheduling, and compliance management and answering questions about information that is already accessible, AI liberates HR professionals to focus on strategic initiatives and meaningful interactions with employees.

This shift enhances job satisfaction and significantly empowers HR teams to impact organizational culture and employee well-being, thereby relieving HR professionals of some of their workload and stress.

Reducing financial stress

Furthermore, the integration of AI in HR promises cost savings for organizations. By streamlining processes and optimizing resource allocation, AI-driven solutions can drive operational efficiencies and reduce overhead costs.

From talent acquisition to performance management, AI-enabled platforms can yield valuable insights that inform data-driven decision-making, leading to more informed and effective HR strategies.

Humans and AI: the best of both worlds

In conclusion, the integration of AI in HR represents a paradigm shift in how organizations approach talent management and organizational development.

By embracing AI as a complementary tool rather than a substitute for human expertise, HR professionals can harness its transformative potential while upholding human-centric values.

The key lies in fostering a workplace culture that values technological innovation and human connection, ensuring a harmonious coexistence between humans and AI in pursuing organizational excellence.

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AI has positive impact on morale, say 52.4% of workers

Keith MacKenzie — Wed, 17 Apr 2024 18:39:50 +0000

The integration of AI into workplace workflows has stirred significant concern and anxiety among employees. As these technologies redefine roles and alter task requirements, the transformation provokes a sense of disruption that permeates through staff ranks.

We wanted to understand the depth of these concerns and fears among workers in our AI in Hiring & Work survey, and the results were actually optimistic. Workers are feeling pretty good about AI at work.

We can dig into it further, but right now, we will say that it’s likely because the “boring” parts of work are being automated, freeing up time to focus on the more interesting, challenging, and strategic elements of work. AI is the happy assistant that helps take care of those mundane tasks for you – and accurately too, if you manage it well.

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Back to the data: for one, we found that 71.9% of workers are generally comfortable with AI – and the actual disruption to jobs was minimal or even nil, with 71% reporting little or no displacement.

It’s understandable to expect otherwise though: the rise of AI means changes to daily tasks – some unpredictable, some welcome.

Out of this, big questions arise: are employees feeling invaded? Does it all feel a little more impersonal than before? Does the future see human roles continuously redefined by algorithms and machine-led processes?

So, it makes sense to ask in our survey: how does all this affect employee morale in grappling with these rapid adaptations demanded by AI implementation?

Again, optimism prevails. More than half (52.4%) say the integration of AI in workflows has had a positive impact on team morale.

Two out of five (39.4%), however, say there’s no real significant change to morale.

Negative impact? It’s barely one in 20, or 5.2% of employees responding as such.

So, even with the concerns around job security, morale remains strong. Perhaps employees are as excited as they are nervous about the impact of AI on their working lives.

The industry lens

Nearly seven out of 10 (68%) in Construction see a positive impact on team morale, a healthy 15.6 points above the overall. IT / Technology / SaaS follows closely behind at 66.5%.

Manufacturing (9.1% vs. 5.2% overall) and Healthcare (7.8%) are more likely to see a negative impact on team morale with the integration of AI at work.

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The great talent shift – and the need for leaders and L&D

Keith MacKenzie — Tue, 02 Apr 2024 13:34:13 +0000

Few business leaders would deny the value of showing appreciation to employees. Most see appreciation as a critical component of a healthy culture that yields huge benefits in the workplace because they know it results in workers who are more engaged, loyal, and productive.

Still, many companies fail in this area. A Workhuman survey revealed that more than half of employees want to see their companies offer more recognition, while a BlueBoard survey showed that 40% of companies have not taken steps to build a culture of appreciation.

Even when bosses take the time to show appreciation, it can often fall flat. Another study on workplace culture that surveyed employees in the US, UK, and China found that 43% of employees who were recognized by their companies felt the gesture was “empty” and “not meaningful.” The study puts organizations on notice that employees expect recognition to be sincere and significant.

So what does meaningful recognition look like? One valuable way to express appreciation is by showing an interest in your employees’ professional development.

The value of employee learning and development

Essentially, recognition shows employees they are important and serves as an organization’s way of communicating that it sees and values its employees’ efforts and accomplishments. It says, “We’re glad you’re here and we want you to stay.”

Providing opportunities for learning and development is a powerful form of employee appreciation because it acknowledges an employee’s value. It indicates that the employee is seen as a worthwhile investment and communicates that the organization has confidence in the employee and their abilities.

Recent studies support the idea that employees see value in learning and development. A 2021 Pew Research Study showed that 63% of the employees who left jobs that year pointed to a lack of advancement opportunities as a reason. In 2022, a McKinsey and Company study identified a lack of career development as the top reason for leaving a job.

The impact of employee learning and development

The list of benefits that organizations gain from facilitating employee learning and development is long and broad, but almost always begins with improved morale.

As mentioned above, investing in an employee’s development communicates they are a valued part of the organization – a message that can dramatically improve employee satisfaction.

Learning and development also drive employee engagement. As employees become more skilled at their jobs, their confidence level grows, leading to greater motivation, initiative, and output. When widespread, it drives greater overall corporate profitability.

Retention rates can also increase through learning and development programs. The University of Phoenix Annual Career Optimism Index for 2022 revealed that 68% of employees said they would stay at a job with an employer who provided upskilling opportunities and showed that 65% of employees would stay based on reskilling opportunities.

Employees who upskill and reskill their employees also contribute to a more robust talent pipeline. Learning and development make an organization’s workforce more agile and capable of shifting into new positions as opportunities arise. It can also inspire workers to take the steps necessary to advance to higher levels within the organization.

The best approach to creating or enhancing L&D

The ideal learning and development approach aligns with both employee expectations and corporate goals. Consequently, the first step in crafting a program will involve assessing organizational and individual needs.

An assessment of performance metrics can provide insights into skills gaps that exist within the organization, which will help the organization define the learning objectives that are critical for moving the organization forward. General training programs should flow from those learning objectives.

Assessments should also involve interviews and surveys that identify the personal learning and development goals of employees. This is a critical step in communicating that learning and development are meant to support and benefit the employee as well as the organization. Gathering and acknowledging employee input has the potential to increase motivation and participation when learning and development programs are rolled out.

Individual interviews can also be used to create personalized development plans for employees by identifying their career goals as well as any skills gaps that need to be bridged to meet those goals.

These interviews create an environment in which employees and their managers work together to map out steps, such as formal training and stretch assignments, that will contribute to learning and development.

As programs are developed, organizations should acknowledge that the best learning is not a “one-size-fits-all” endeavor.

Learning and development can be delivered through a variety of channels and formats to provide a higher likelihood of success, including online courses, mentoring programs, conferences and seminars, job rotations, and more.

Measuring the effectiveness of programs is also critical to their ultimate success. Organizations can assess the value of learning and development by evaluating participation, employee feedback, and the impact on individual and corporate performance.

Learning and development programs require a significant investment from organizations, but they can also provide a significant return. They are a powerful tool for showing employees how much they matter to the organization and the potential they have for growth.

Ultimately, they result in a workforce that is more engaged, more confident, and more equipped to meet the shifting needs of today’s rapidly evolving business landscape.

Lauren Winans is the Chief Executive Officer and Principal HR Consultant for Next Level Benefits, an HR consulting practice offering clients access to HR professionals for both short-term and long-term projects. Based in Pittsburgh, Pennsylvania, she has 20 years of human resources and employee benefits experience and possesses a deep expertise of HR best practices and what resonates with employees. She founded Next Level Benefits in 2019, offering HR teams access to former corporate HR professionals on-demand when they need them most.

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Evil HR Lady: four hot takes on hot topics in HR

Suzanne Lucas — Wed, 17 Apr 2024 20:22:21 +0000

When I was a teenager, my mother told me I should become a senator. Why? Because of this lovely little thing called the “filibuster,” where you could just keep talking forever and stop all Senate business until you either passed out, a la Mr. Smith Goes to Washington, or the rest of the Senate gives up and gives you what you want.

Apparently, I liked to talk, and I had a lot to say – some of it ridiculous (well, in high school, most of it). But now, I think I’m a bit more educated than I was 30 years ago, with a couple of degrees (in political science, of course) and 20-plus years in the HR space.

So, I’ve formed opinions in this area – including some very conversational ones. Here are my hot takes on some issues in HR.

1. Return to the office

Many CEOs want people to return to the office – at least in a hybrid fashion.

And many people hate it.

People seem to think that CEOs are running their businesses into the ground because they are micromanagers and that’s just illogical to me.

Dell recently decided to allow employees to choose between hybrid and fully remote work, but if you chose the latter, you were banned from promotions (unless you were working remotely for ADA reasons).

When I shared this on LinkedIn I got many comments talking about how awful this is.

Like this one:

“And employers continue to wonder why they can’t attract the type of employees they want. When you make stupid decisions that show clearly that you don’t value your employees and what they bring to the table unless they play ball your way, and only your way, then you deserve to be boycotted by the younger, cheaper, and more productive employees that are looking for new opportunities. Heaven help us if we ever have a war where most of our young people are sent off to fight. Employers like these will find no one that will want to work for them during any extended manpower shortage.”

My hot take: CEOs want to make money. They see things that we armchair analysts cannot. There are benefits to working together.

If you see a CEO telling people to come back to the office, the CEO probably knows that remote work isn’t working for the company. It’s not for everyone.

And if not? Well, the free market will sort it out, won’t it?

Return to the Office II

My hot take: If you are the type that wants to be a C-suite occupant in the future, get your behind to the office. You’re much less likely to reach that level without the visibility and mentorship you’ll find in the office. It’s much, much harder to learn things outside your silo when you are working alone at your kitchen table.

And stop whining about remote workers earning less money. Everyone told the survey takers that they would be willing to take a pay cut to work remotely.

It turns out that CEOs listened. You asked for it, you got it.

2. Respectful workplace training

I’m 100% opposed to bad behavior in the workplace. Everyone should be respectful of everyone else. No (cough cough) pics should ever be shared on company servers.

(Or anywhere, really. Men, take note: women are not impressed with photos of your nether regions.)

I love training and I love training people on how to be respectful. But:

My hot take: I couldn’t care less about the history of oppression or privileged backgrounds or what people think. Workplace training shouldn’t focus on that. It should focus on behavior.

The whys don’t actually matter because they aren’t up for debate. You may not tell dirty jokes or use racial slurs. The end.

You may not treat people poorly because of their race, gender, sexual orientation, religion, or any other characteristic. Judge people based on their performance. Be nice to everyone.

Trying to get people to understand that there is a history of this or that doesn’t help achieve the goal of a respectful workplace.

Teach behavior, not thought.

3. Work-life balance isn’t everything

Lazy girl jobs are a thing, apparently. The idea is you get a job that requires minimal effort and get a paycheck and focus on yourself. It sounds great, but is it?

I see people praising Gen Z (and to a lesser extent, Millennials) for not settling for the 9-to-5 grind that their parents and grandparents put up with. But, I certainly don’t see them being happier with the outcome.

Michele Parmalee writes for Deloitte about Millennials and Gen Z:

“They’re values-driven. Striving for work/life balance. Concerned about the environment, the state of the world, and the future they see developing ahead of them. And they’re looking for employers who will empower them to make a difference.”

Then why are they so unhappy? Survey after survey shows that Gen Z’s mental health is in the toilet:

Gallup and the Walton Family Foundation: “Less than half (47%) of Gen Z Americans are thriving in their lives — among the lowest across all generations in the U.S. today and a much lower rate than millennials at the same age,
Ogilvy: 70% of Gen Z say their mental health needs attention or improvement
American Psychological Association: “Nine in 10 Gen Z adults (91%) said they have experienced at least one physical or emotional symptom because of stress.”

My hot take: Of course, we can blame Gen Z’s problems on the generations who came before, but I wonder if this focus on working as little as possible (popularized by the anti-work movement) and finding all the bad things (calling words “unsafe”) is contributing to poor mental health.

When you’re focused on yourself rather than on others and constantly look for the bad in others, you become more miserable.

So, while I don’t want people to burn out, I’m skeptical that working less is really the panacea that we want. I’m absolutely willing to be convinced I’m wrong, but I can’t see too much self-focus as a good thing. I’m much more of the “forget yourself and get to work” philosophy.

I also know that a job well done is very psychologically rewarding, whether it be in the office or not.

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5 qualities of a good employee and candidate and how to evaluate them in an interview

Nikoletta Bika — Tue, 16 Jul 2019 12:08:26 +0000

AI’s integration into HR processes is not just a futuristic concept, nor is it akin to the Roko’s basilisk experiment, but rather a present reality brimming with opportunities for you and your team.

From automating routine tasks to facilitating data-driven decision-making, AI empowers HR professionals to transcend traditional boundaries and embrace a strategic role.

Learning and development (L&D) teams recognize this shift. According to the LinkedIn Executive Confidence Index, in the next six months, nine out of 10 global executives plan to either increase or keep steady their investment in L&D, including upskilling and reskilling.

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Moreover, 60% of CEOs acknowledge the positive ripple effect of robust upskilling programs on company culture and revenue projections, underscoring the organizational benefits of embracing AI.

As we move further into the AI revolution in HR, the focus sharpens on the specific upskilling opportunities for HR professionals that promise to redefine the role of HR professionals in this new era.

Essential AI skills for HR professionals

Here are some helpful skills you need to have or update in order to boost your productivity in the HR field.

1. Data analytics

Mastery in data analytics is no longer optional; it’s crucial for making informed decisions that drive talent acquisition and retention. As AI reshapes the landscape, HR professionals must also become proficient in automation and Robotic Process Automation (RPA), streamlining processes and enhancing efficiency.

This skill is crucial for identifying trends in employee performance, predicting turnover, and understanding the efficacy of HR policies.

Mastery in data analysis means HR can forecast hiring needs, tailor retention strategies, and build a more engaged, productive workforce. The ability to sift through data and derive meaningful insights is no longer a nice-to-have but a must-have in the toolkit of modern HR professionals.

Automation in HR not only accelerates tasks like payroll processing and benefits administration but also minimizes errors, freeing HR professionals to focus on more strategic initiatives.

Understanding and deploying RPA means transforming the HR function into a more agile and strategic partner in the business, capable of delivering more value with less effort.

2. Ethical AI use and bias mitigation

In the realm of AI, ethical use and bias mitigation are paramount. HR professionals are at the vanguard, ensuring that AI tools are implemented in a way that is fair and inclusive.

This involves scrutinizing AI applications for inherent biases, promoting transparency in AI decision-making processes, and advocating for the ethical collection and use of data.

By championing ethical AI, HR not only safeguards organizational integrity but also fosters a culture of trust and fairness.

3. Formal education and certification programs

The urgency for reskilling is clear, with the World Economic Forum reporting that 50% of all employees will need new skills within the next five years.

As the demand for AI-savvy HR professionals grows, so does the availability of formal education and certification programs designed to upskill HR practitioners.

These programs, ranging from online courses to full-blown certifications, cover essential topics like data analytics, machine learning, and ethical AI use.

Investing in formal education not only enhances an HR professional’s skill set but also positions them as a strategic asset within their organization, ready to lead in the AI era.

HR professionals can stay ahead through formal education and certification programs, particularly those focusing on AI.

Lastly, 93% of Millennial and Gen Z workers expect employers to provide learning opportunities. With Millennials set to make up 75% of the U.S. workforce by 2030, catering to their expectations for on-the-job training is crucial for retention and organizational growth

With these generations set to dominate the workforce, offering regular upskilling programs can significantly impact retention and attract top talent, ensuring that organizations remain competitive in the rapidly changing business environment.

4. On-the job training

Practical, hands-on experience with AI tools and platforms is invaluable.

Many organizations now offer on-the-job training programs that allow HR professionals to learn by applying AI technologies to real-world HR challenges.

This experiential learning approach helps demystify AI, encouraging innovation and experimentation within the safe confines of the organization. It’s a powerful way to build confidence and competence in using AI to solve everyday HR problems.

The significance of on-the-job training is underscored by a study from MIT Sloan School of Management, which found a 250% return on investment from soft skills training within just eight months.

Envision the significant ripple effects of equipping the workforce with AI expertise, empowering them to reduce time spent on manual tasks and amplify overall productivity. This shift transcends the HR realm, resonating across all facets of the organization.

5. Networking and professional development

Staying abreast of the latest AI trends and best practices in HR requires active engagement with the broader HR and tech communities.

Networking events, professional associations, and HR tech conferences provide invaluable opportunities for HR professionals to exchange ideas, learn from peers, and discover new technologies.

This ongoing professional development is crucial for HR professionals looking to leverage AI effectively, ensuring they remain at the cutting edge of HR innovation.

Work smarter, not harder

In the busy world of HR, professionals have to handle lots of tasks quickly. Education helps them share important knowledge with the whole company. But here’s where things get tricky.

Many think that working harder is the only way to get things done. But the real trick is working smarter, not harder. How? By using HR tools with AI, like Workable HR software. These tools are easy to use and help HR pros make the most of technology.

By using these tools, HR folks can make their work easier and get better results. It’s like having a secret weapon that helps them do more with less effort, moving the whole company forward faster.

For HR professionals ready to lead in this new era, the path forward is clear: invest in learning, adapt with innovation, and commit to ethical practice, thus steering the future of work towards a horizon brimming with potential.

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71.9% of workers generally comfortable with AI: Survey

Keith MacKenzie — Wed, 10 Apr 2024 15:33:17 +0000

Amid all the insights in Workable’s expansive AI in Hiring & Work 2024 survey report is an opportunity to gauge the ‘mood’ of employees regarding AI.

AI is not a single, anomalous monolith – it brings a complex range of technologies with a wide-ranging and diverse impact.

That means we need to somehow measure the intangible impacts of AI on worker motivation. To find out, we asked respondents directly about their comfort levels, team morale, and predictions.

New report: AI in Hiring 2024

We asked 950 hiring managers how they're using AI in hiring and in the workplace. And now we have a new survey report packed with insights for you.

Get your free report now!

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We noted in an earlier question the struggles with employee resistance when using AI in the workplace – namely, 40.5% of all respondents pointed to initial resistance/discomfort with adopting AI at work.

Interestingly, that’s not reflected in the question of how comfortable employees themselves are with using AI tools.

Nearly one in three (31.8%) say their colleagues are very comfortable with using AI tools at work, and another two in five (40.1%) say they’re somewhat comfortable – that’s a total of 71.9% who are comfortable to some degree.

If the majority of workers are generally fine with AI at work, then any challenges including resistance and discomfort are perhaps seen as easily overcome.

In other words – any newfangled thing will be met with some initial apprehension – but everything can get better, including the experience of using AI in the workplace.

The industry lens

Construction leads in terms of comfort with AI tools in the workplace (85.1% vs. 71.9% overall – a 13.2-point difference), followed by IT / Technology / SaaS (77.5%) and Accounting / Finance (75.9%).

Healthcare (57.9%) and Education (61.1%) aren’t nearly as comfortable with AI tools. In fact, they’re rather neutral (29.4% and 27.3% vs. 20.8% overall), and even more “somewhat uncomfortable” (10.8% and 10.4% respectively, vs. 6% overall) than the baseline response.

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Dell’s remote work ultimatum: is it the right decision?

Suzanne Lucas — Fri, 05 Apr 2024 15:02:13 +0000

Good news for Dell employees! If they like their remote jobs, they can keep their remote jobs!

They just won’t be considered for any promotions or internal transfers.

While you may be shocked at this, it’s simply Dell saying the quiet part out loud.

We know that CEOs want people in the office. We also know that CEOs want to make profits. Lots of people think that these two things are incompatible, but I’m not convinced by the numbers that insist productivity is higher at home. It certainly is higher for some people – there’s no doubt to that. But it certainly is lower for some people as well.

It’s weird that people assume CEOs are just ignoring reality because they want to control people. It makes much more sense that CEOs see something the rest of us don’t see.

CEOs like money more than anything

This is probably not entirely true. They probably love their children more than money, and maybe their cats – although I suspect CEOs are dog people. I’d say they love their spouses more than money, but CEOs have higher-than-average divorce rates, and divorced CEOs perform better than never-divorced ones.

But a CEO’s primary goal is to make money for shareholders. It defies logic that all CEOs who want people in the office would reject solid evidence that remote work is more profitable.

Kate Maddison-Greenwell, CEO of People Efficient, imagined the conversation with the CEO of Dell and the head of HR went like this:

If the HR director had legitimate data that these specific remote employees were more productive and the CEO said nope, my word is final, then that is definitely an issue with the CEO, but I doubt things are that clear or simple.

What is productivity?

You can calculate productivity by dividing output by hours (or hours by output, whatever floats your boat). That method is brilliant if you own a widget factory. For a company like Dell, it’s really easy to see how many computers you build, but evaluating the productivity of every employee is a little more complicated.

How do you evaluate the productivity of an HR manager, for example?

A good HR department can prevent sexual harassment, for instance. How do you measure how many sexual harassment complaints didn’t happen because the HR manager was highly productive? Sure, you can compare it to the year before, but that shows a change, not overall productivity. And if this year’s is the same as last, does that mean zero productivity?

It’s easy to count the number of investigations conducted but not the number of investigations that were not needed because of proactive behavior.

We can instead of looking at productivity, look at productivity or market capitalization. Let’s take a look at Dell’s market cap over the past few years.

The market cap increased after COVID until the huge drop-off when they spun off VMware, but the overall market cap shows more ups and downs consistent with large businesses.

It certainly doesn’t show that remote work was a disaster. But it doesn’t show how it was an overwhelming success either. There are too many other market forces at play – and Dell has offered hybrid work for a very long time.

Diversity and remote work

Someone at Dell with “access to staff data” said this new requirement to work 39 days in the office per quarter will disproportionately affect women.

I have no doubt that this is true. We know from Dr. Claudia Goldin’s work that women prefer flexibility over money. Women are more likely to want to remain fully remote rather than get more promotions by coming in.

Is this a bad thing? Lots of people think it is, and we should set up our systems to ensure that our employees look like the world around us. I’m not so sure.

If an employee wants to make Dell the center of their life, great! It makes sense that Dell would reward that. If an employee wants to put their family and friends at the center and use Dell to support themselves, then raises and promotions should reflect that as well.

It’s a choice.

The unfair burdens of child and eldercare falling on women are also a choice – a choice heavily influenced by society but a choice nonetheless. When we make those choices, we get those consequences.

Why do CEOs want people in the office?

Last night I hosted an improv jam – where a bunch of us get together and practice our improv comedy skills. A fairly new group member was very subtly helping other group members with their skills.

If we weren’t all in the same room, I wouldn’t have observed his skill at teaching and training others, unless the person he was coaching came to me to tell me or the person self-advocated, I would never have known.

You can’t accidentally observe with remote work because only those directly involved are in the conversation – whether via Slack or video call. Whether it’s a manager observing employee behavior or an employee observing manager behavior, it’s much easier to do in person.

As someone who trains thousands of people per year, I strongly prefer in-person training to remote training. I can easily make adjustments on the fly as I see people’s reactions, which is much more difficult when I’m speaking to a computer screen.

It’s harder to build relationships when you aren’t together. One study found it takes adults 50 hours to make a friend and 200 hours to make a close friend. While I don’t advocate managers making friends with their direct reports or HR being friends with anyone, it takes time to know and understand people. That’s harder to do remotely.

Is this the right decision for Dell? It’s a weird decision, but it’s better to say out loud that remote work will damage your career than leave people frustrated. I’m a huge fan of hybrid work because it gives you the benefits of both worlds, but Dell is foolish to punish all remote workers.

Victoria Purser, the Founder of Conquer HR points out:

“The discussion around remote productivity is more pertinent than ever, especially as companies like Dell navigate the complex decision to return to the office. The past years have undeniably demonstrated that remote work is not just a feasible alternative but, for many, a preferred mode that can lead to enhanced productivity, work-life balance, and job satisfaction.”

Dell will definitely lose employees and potential candidates over this. But most jobs are still onsite, and most people will continue to go to work, regardless of what Dell does. It will be interesting to see if Dell’s leadership changes its mind.

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The hybrid model could be a step closer to RTO

Alexandros Pantelakis — Mon, 05 Feb 2024 16:11:23 +0000

Surveys show a majority favoring the hybrid working, highlighting its balance of collaboration and autonomy. HR must adapt, ensuring policies reflect both organizational goals and employee well-being in the evolving work landscape.

Labor market dynamics and employer-employee power shift

The dynamics of the labor market are undergoing a significant transformation, influenced in part by the cooling labor market. As reported by ABC News, some of Australia’s largest employers are leveraging performance bonuses to entice staff back to the office, indicating a shift in the balance of power towards employers.

This trend is mirrored globally, with companies like Google, Meta, and Amazon mandating office attendance for at least three days a week and tying compliance to performance reviews.

The decline in employment numbers, such as the 65,100 drop in Australia in December as reported by Investing, suggests a cooling labor market that could further empower employers in the work-from-home equation.

For HR professionals, this shift necessitates a strategic approach to employee engagement and retention. It’s crucial to balance the enforcement of RTO policies with the maintenance of a positive work culture and employee satisfaction.

This balancing act involves not only crafting policies that reflect the company’s operational needs but also addressing employee preferences for flexibility and autonomy.

"More

Remote turned to hybrid and that works

Hybrid work, a concept that marries remote and in-office work, has swiftly transitioned from a temporary measure to a mainstay in corporate strategy.

The hybrid work ‘agreement’, if we can call it that, seems to be the middle ground, as Workable predicted in a report back in 2022.

However, Resumebuilder report highlights that an overwhelming majority, approximately nine in ten companies with office space, are set to have employees return to the office by the end of 2024. 51% of them have already achieved that at the moment.

Yet, this return is far from a straightforward revival of pre-pandemic norms. This shift is not merely a top-down directive but reflects a broader consensus on work preferences.

A survey by Bankrate, involving over 2,000 adults in the U.S., reveals that around 68% of full-time workers are in favor of a hybrid schedule, which allows for at least one remote workday per week.

This model strikes a harmonious balance, merging the collaborative benefits of office presence with the flexibility and autonomy afforded by remote work.

For HR practitioners, this trend underscores a clear mandate: the workplace of the future must be adaptable, catering to both the individual preferences of employees and the overarching goals of the organization.

It suggests a move towards creating environments that not only enhance productivity and engagement but also prioritize employee well-being.

Regional variations in office recovery

The journey back to the office is far from uniform, with significant disparities in recovery rates across regions.

Insights from Placer.ai’s December 2023 Office Index shed light on these variations. New York City, for instance, showcased a promising year-over-four-year visit gap of just 19.2% in December 2023, a testament to its robust recovery.

In stark contrast, San Francisco reported a visit gap of 53.1%, underscoring the challenges some regions face in rebounding to pre-pandemic office visitation levels.

These discrepancies underscore the impact of localized factors — from the composition of industries and public health directives to the sentiments of the workforce — on the implementation and success of RTO strategies.

For HR leaders, this emphasizes the need for policies that are not only flexible but also attuned to the specific contexts and needs of their workforce.

Tailoring RTO approaches to accommodate these regional dynamics can significantly enhance an organization’s ability to navigate the complexities of a post-pandemic recovery, ensuring that strategies are both effective and empathetic to employee concerns.

Employer strategies for encouraging office returns

From performance bonuses to the integration of office attendance into performance evaluations, employers are adopting more structured approaches to manage hybrid work models.

CNBC reports that nearly 30% of companies have stated they would consider termination for employees who resist compliance with in-office requirements, highlighting the tension between operational needs and employee preferences for flexibility.

Remember the video of WebMD? Check more about it here.

As you can see, there are right ways and wrong ways to encourage RTO. For HR professionals, devising these policies is a balancing act. It involves aligning organizational objectives with employee well-being and preferences, ensuring that the workplace remains a space of productivity and collaboration – without compromising on the flexibility that has become a hallmark of the modern work environment.

Productivity and engagement concerns

The debate over the impact of remote work on productivity and engagement remains unresolved, with data presenting a mixed picture. Yahoo Finance highlights that employee productivity in the U.S. saw fluctuations, with a notable increase in 2020 and 2021, followed by a dip and then a rise again in 2023. These variations suggest that the effectiveness of remote versus in-office work is contingent on several factors, including job nature, company culture, and individual preferences.

The transition to hybrid work models has further complicated this debate. While some argue that remote work enhances productivity by reducing commute times and allowing for a more flexible work-life balance, others contend that it can diminish team cohesion and impede spontaneous collaboration.

For HR departments, navigating these concerns requires a nuanced understanding of the factors that drive productivity and engagement within their specific organizational context.

Implementing regular feedback mechanisms, fostering a culture of trust, and providing the tools and resources necessary for effective remote and in-office work are essential strategies in this regard.

How big companies deal with RTO

Different organizations have taken varied approaches to the post-pandemic work environment, ranging from strict office-first strategies to more flexible hybrid models. Here’s how some of the world’s leading companies are adapting:

Office-first strategy

Goldman Sachs: Under the leadership of CEO David Solomon, Goldman Sachs has taken a firm stance on the importance of in-person work, particularly for its collaborative and apprenticeship-driven culture.

In March 2022, Solomon mandated a return to the office five days a week for all employees. He has been vocal about his belief that remote working does not align with the company’s ethos of innovation and collaboration, emphasizing the need for an office-first approach to maintain the firm’s dynamic work environment.

Hybrid approach

Adobe: In June 2021, Adobe announced a shift towards a hybrid work model, allowing employees to divide their time between home and the office. Chief People Officer Gloria Chen highlighted the model’s flexibility, designed to support significant in-person and virtual collaboration.

This approach aims to balance the benefits of physical presence with the convenience of remote work, ensuring that employees gather for critical moments and maintain productivity and creativity.

Airbnb: CEO Brian Chesky’s announcement in May 2022 marked a significant departure from traditional work models, allowing employees to work from anywhere in the world without affecting their salary.

This policy enables staff to relocate from high-cost areas to more affordable locations, a stark contrast to companies that adjust salaries based on geographic cost-of-living differences. Airbnb’s approach reflects a commitment to flexibility and employee well-being, acknowledging the diverse needs and preferences of its workforce.

Amazon: Initially, Amazon introduced a hybrid work model permitting employees to work remotely two days a week.

However, in a pivot in February 2023, CEO Andy Jassy announced a new expectation for employees to be present at Amazon’s headquarters at least three days a week.

This adjustment aims to enhance communication, collaboration, and innovation by fostering more consistent in-person interactions among team members.

Apple: Apple’s approach to hybrid work, announced by CEO Tim Cook in June 2021, requires employees to be in the office three days a week (Monday, Tuesday, and Thursday).

Despite facing some resistance and calls for greater flexibility from its workforce, Apple has upheld this policy. The company believes that this model best supports its goals for in-person collaboration, which is seen as essential for creativity and team cohesion.

Challenges and opportunities for HR in the hybrid era

The transition to hybrid work models presents a unique set of challenges and opportunities for HR professionals.

As the architects of the workplace’s future, HR has a pivotal role in crafting policies that support both organizational objectives and employee well-being.

This involves not only navigating the logistical complexities of hybrid work arrangements but also addressing the cultural shifts that accompany this transition.

One of the primary challenges is maintaining a cohesive company culture in a dispersed work environment. HR must innovate to create shared experiences and foster a sense of belonging among remote and in-office employees alike.

This might involve leveraging technology to facilitate virtual team-building activities or reimagining office spaces to encourage collaboration when employees are on-site.

Another significant challenge is ensuring equity and fairness in opportunities and evaluations for remote and in-office employees. HR must develop clear guidelines and metrics for performance assessment that recognize the contributions of all employees, regardless of their physical work location.

On the opportunity side, the hybrid model offers HR the chance to redesign work in a way that prioritizes employee flexibility, autonomy, and work-life balance. This can lead to increased job satisfaction, reduced turnover, and a more attractive employer brand.

The post Dell’s remote work ultimatum: is it the right decision? appeared first on Recruiting Resources: How to Recruit and Hire Better.

WebMD’s RTO video: it’s mega cringe, but reflects today’s reality

Suzanne Lucas — Tue, 23 Jan 2024 17:05:57 +0000

Labor market dynamics and employer-employee power shift

This trend is mirrored globally, with companies like Google, Meta, and Amazon mandating office attendance for at least three days a week and tying compliance to performance reviews.

This balancing act involves not only crafting policies that reflect the company’s operational needs but also addressing employee preferences for flexibility and autonomy.

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Remote turned to hybrid and that works

Hybrid work, a concept that marries remote and in-office work, has swiftly transitioned from a temporary measure to a mainstay in corporate strategy.

The hybrid work ‘agreement’, if we can call it that, seems to be the middle ground, as Workable predicted in a report back in 2022.

Yet, this return is far from a straightforward revival of pre-pandemic norms. This shift is not merely a top-down directive but reflects a broader consensus on work preferences.

A survey by Bankrate, involving over 2,000 adults in the U.S., reveals that around 68% of full-time workers are in favor of a hybrid schedule, which allows for at least one remote workday per week.

This model strikes a harmonious balance, merging the collaborative benefits of office presence with the flexibility and autonomy afforded by remote work.

It suggests a move towards creating environments that not only enhance productivity and engagement but also prioritize employee well-being.

Regional variations in office recovery

The journey back to the office is far from uniform, with significant disparities in recovery rates across regions.

In stark contrast, San Francisco reported a visit gap of 53.1%, underscoring the challenges some regions face in rebounding to pre-pandemic office visitation levels.

For HR leaders, this emphasizes the need for policies that are not only flexible but also attuned to the specific contexts and needs of their workforce.

Employer strategies for encouraging office returns

From performance bonuses to the integration of office attendance into performance evaluations, employers are adopting more structured approaches to manage hybrid work models.

Remember the video of WebMD? Check more about it here.

Productivity and engagement concerns

For HR departments, navigating these concerns requires a nuanced understanding of the factors that drive productivity and engagement within their specific organizational context.

How big companies deal with RTO

Office-first strategy

Hybrid approach

This approach aims to balance the benefits of physical presence with the convenience of remote work, ensuring that employees gather for critical moments and maintain productivity and creativity.

Amazon: Initially, Amazon introduced a hybrid work model permitting employees to work remotely two days a week.

However, in a pivot in February 2023, CEO Andy Jassy announced a new expectation for employees to be present at Amazon’s headquarters at least three days a week.

This adjustment aims to enhance communication, collaboration, and innovation by fostering more consistent in-person interactions among team members.

Apple: Apple’s approach to hybrid work, announced by CEO Tim Cook in June 2021, requires employees to be in the office three days a week (Monday, Tuesday, and Thursday).

Challenges and opportunities for HR in the hybrid era

The transition to hybrid work models presents a unique set of challenges and opportunities for HR professionals.

As the architects of the workplace’s future, HR has a pivotal role in crafting policies that support both organizational objectives and employee well-being.

This involves not only navigating the logistical complexities of hybrid work arrangements but also addressing the cultural shifts that accompany this transition.

This might involve leveraging technology to facilitate virtual team-building activities or reimagining office spaces to encourage collaboration when employees are on-site.

The post Dell’s remote work ultimatum: is it the right decision? appeared first on Recruiting Resources: How to Recruit and Hire Better.

Your job’s likely OK in AI: 71% report little or no displacement

Keith MacKenzie — Wed, 03 Apr 2024 16:11:41 +0000

AI, of course, has disrupted the way we work, but is it disrupting our jobs as well? Not necessarily, according to data from Workable’s AI in Hiring & Work survey. In short: worries are one thing – actual occurrence is another.

New report: AI in Hiring 2024

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In the survey, we asked respondents whether they saw actual job displacements in their company as a result of AI, and the responses are pretty spread out.

On the one hand, more than one in five (22.7%) say they saw many job changes or layoffs in their work, with another 34.5% saying there was a bit of an impact.

But, on the other hand, more than one in three (36.5%) say there weren’t any known job displacements whatsoever.

This means 71% have seen minimal or no displacement thanks to AI. What this says to us is that the worries about job loss related to AI isn’t necessarily grounded in truth – rather, it’s just that jobs are changing. For example, Trevor Bogan at the Top Employers Institute told us about a talent shift as a result of AI, and that adapting and learning how to use the new technology is absolutely the way to go.

The industry lens

It makes sense that the fears of job loss would be accentuated when there’s actual job loss.

Construction led the way in terms of job worries. Three in four (74.6%) say there were a few or many job displacements in their company.

Meanwhile, retail (44.8% vs. 36.5% overall) and Education (42.9%) are more likely to say they saw no actual impact to jobs as a result of AI.

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Tech & money are seen as hurdles in AI use at work: Survey

Keith MacKenzie — Wed, 20 Mar 2024 16:34:20 +0000

AI has been a lovely development for many in today’s working (and hiring) world – but like anything else, it has its drawbacks.

So instead of speculating, we went out and asked AI-using hiring teams (i.e. those who have hired in the last year and have used AI in the process).

New report: AI in Hiring 2024

We asked 950 hiring managers how they're using AI in hiring and in the workplace. And now we have a new survey report packed with insights for you.

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The question we asked, specifically: “Hiring aside, what are the main overall challenges your company has faced in integrating AI?”. We provided a laundry list of potential challenges and asked people to select up to three items from that list.

The results were both interesting and unsurprising.

Nearly half of all respondents (46.2%) cited technical difficulties related to implementation or operation of AI tech, followed closely by financial challenges (41.9%).

This suggests that the costs of AI tools overall may be higher than the costs of AI tools in hiring specifically – after all, we’ve found that one in three (32.7%) say there are significant cost savings with the integration of AI in hiring.

Meanwhile, two out of five respondents (40.5%) point to employee resistance or discomfort when adopting AI in workflows.

That’s understandable – for some, AI or any new technology can be a newfangled thing requiring a learning curve or causing a disruption of long-established work habits.

The industry lens

Across the seven industries, Construction is most likely to cite technical difficulties (52% vs. 46.2% overall), while Accounting / Finance (48.1% vs. 41.9% overall) and Manufacturing (46.8%) pointed to cost as a problem.

Ethics is a major concern for IT / Technology / SaaS (42.3% vs. 28.4% overall). Compliance is a consideration for Construction (26.7% vs. 17.8% overall) and Healthcare (25.5%), and not so much for Retail (11.9%).

Retail (34.3% vs. 41.9% overall) is also far less worried than others about cost, while Construction isn’t so concerned with ethics (18.7% vs. 28.4% overall).

While employee resistance and discomfort is cited as a major concern, that challenge pretty evenly spread out across the seven major industries in our dataset. That being said, IT / Technology / SaaS is a bit more concerned (44.5% vs. 40.5% overall) and Education (36.4%) a little less so.

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L&D trends for 2024: reports find there’s no more one-size-fits-all

Alexandros Pantelakis — Fri, 19 Jan 2024 14:35:41 +0000

So what does meaningful recognition look like? One valuable way to express appreciation is by showing an interest in your employees’ professional development.

The value of employee learning and development

The impact of employee learning and development

The list of benefits that organizations gain from facilitating employee learning and development is long and broad, but almost always begins with improved morale.

As mentioned above, investing in an employee’s development communicates they are a valued part of the organization – a message that can dramatically improve employee satisfaction.

The best approach to creating or enhancing L&D

Individual interviews can also be used to create personalized development plans for employees by identifying their career goals as well as any skills gaps that need to be bridged to meet those goals.

As programs are developed, organizations should acknowledge that the best learning is not a “one-size-fits-all” endeavor.

Ultimately, they result in a workforce that is more engaged, more confident, and more equipped to meet the shifting needs of today’s rapidly evolving business landscape.

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Horrible workplaces: The signs of a hostile work environment and what to do about it

Nikoletta Bika — Wed, 12 Jun 2019 12:45:50 +0000

As the new employee, Jake stepped into the lively office on his first day, feeling a mix of excitement and uncertainty.

As he settled into his workstation, he wished he had a better onboarding experience and maybe a peer to help him navigate the intricacies of the company’s project management software.

A seasoned colleague could have easily stepped in, guiding him through the software, explaining the project workflows, and sharing tips on effective collaboration.

Later in the day, when Jake tried to grab a cup of coffee from the high-tech espresso machine in the breakroom, he realized he was in for a challenge.

A buddy could have been there to demonstrate the machine, highlight the preferences of the team when it came to coffee, and share the unwritten office rituals associated with the daily caffeine fix.

Having a knowledgeable buddy by his side would be an opportunity for connection and camaraderie in the workplace.

And guess what? This buddy actually has a name.

Let’s get to know them better.

What is an onboarding buddy

An onboarding buddy is essentially a current employee who volunteers or is selected to act as a guide and support system for a new hire during their initial period at the company.

Unlike formal mentors, who are often involved in long-term professional development and career guidance, an onboarding buddy focuses on the immediate, practical aspects of settling into a new job.

This includes understanding company culture, navigating the workplace, and integrating into new teams.

The buddy system is designed to be informal and approachable, providing a safe space for new employees to ask questions and express concerns that they might hesitate to share with their managers or HR representatives.

The distinction between an onboarding buddy and a mentor is crucial. While both roles aim to support the new hire, their objectives and durations differ significantly.

A mentorship relationship is typically more structured, with set goals and a longer timeline, often extending beyond the onboarding phase to focus on career growth and development within the organization.

In contrast, an onboarding buddy is there to ease the immediate transition into the company, focusing on short-term goals like understanding job responsibilities, company policies, and workplace culture.

This difference ensures that new employees have a comprehensive support system that addresses both their immediate and future needs.

Onboarding buddies can boost productivity

The implementation of an onboarding buddy system can have a profound impact on a new hire’s experience and their productivity.

Having a robust onboarding process is proven to increase new hire retention by 82% and boost productivity by more than 70%.

One of the most significant benefits is the provision of context.

New employees, regardless of their experience level, face a steep learning curve when joining a new company.

An onboarding buddy can offer invaluable insights into the nuances of the workplace, from identifying key stakeholders to understanding the unspoken rules that govern office dynamics. This insider knowledge helps new hires navigate their early days with greater confidence and ease.

This insider knowledge helps new hires navigate their early days with greater confidence and ease.

By having a go-to person for questions and guidance, new hires can quickly learn the ropes and begin contributing to their teams more effectively.

This not only benefits the new employee in terms of job satisfaction and engagement but also contributes to the overall productivity of the team and organization.

This emotional and professional support can make a significant difference in how new employees perceive their new workplace, influencing their decision to stay with the company in the long run.

The onboarding buddy’s responsibilities

The effectiveness of an onboarding buddy system hinges on the clear definition of the buddy’s responsibilities.

These duties are designed to ensure the new hire feels supported, informed, and welcomed into the company. Here are some of the key responsibilities that an onboarding buddy typically undertakes:

Meet the new employee on their first day: Making a positive first impression is crucial. The onboarding buddy is often the first friendly face the new hire sees, offering a warm welcome and easing the natural anxieties of the first day.

Introduce the new hire to other employees: Integration into the social fabric of the company is as important as understanding the role itself. Buddies facilitate introductions to team members and other colleagues, helping to build the new hire’s internal network.

Answer questions about the job and the company: Buddies act as a knowledge resource, answering questions about day-to-day operations, company culture, and policies. This open line of communication helps to demystify aspects of the new role and the organization.

Take the new employee on a tour of the workplace: Familiarizing the new hire with the physical workspace helps them navigate their new environment and understand where key facilities are located.

Teach the new hire unfamiliar tasks: Buddies provide hands-on guidance for tasks and processes that are new to the hire, ensuring they have the practical skills needed to perform their job effectively.

Cover the company guidelines, culture, and unwritten rules: Beyond the employee handbook, buddies share insights into the company’s culture and the unwritten norms that guide behavior within the organization.

Allow the new hire to shadow on the job: Shadowing allows the new employee to see firsthand how tasks are performed, which is invaluable for learning the nuances of their new role.

Hold weekly check-in meetings: Regular meetings between the buddy and the new hire help to address any ongoing questions or concerns, ensuring the new employee’s smooth transition into the company.

The 4-step onboarding process with a buddy system

A structured onboarding process, complemented by a buddy system, can significantly enhance the new hire’s integration and productivity. Here’s a breakdown of a 4-step onboarding process that incorporates the use of an onboarding buddy:

Preparation: Before the new hire’s first day, select an appropriate onboarding buddy and brief them on their responsibilities. Ensure the buddy has the resources and time needed to support the new employee effectively.

Integration: The buddy plays a key role in helping the new hire integrate into the company culture and team. This phase focuses on making introductions, explaining company norms, and answering any immediate questions the new hire may have.

Development: As the new hire becomes more comfortable in their role, the buddy assists with more in-depth learning and development opportunities, such as shadowing on projects or guiding them through more complex tasks.

Transition: Eventually, the new hire should feel confident and integrated enough to navigate their role independently. The buddy system can be phased out, with the buddy remaining a friendly and familiar face for any future questions or support.

The checklist

To ensure consistency and cover all necessary aspects of the onboarding process, creating a buddy checklist can be incredibly helpful. This checklist might include:

Schedule a welcome meeting on the first day.
Arrange introductions to team members and key personnel.
Provide a tour of the office, highlighting important areas.
Share insights on company culture and unwritten rules.
Offer guidance on specific tasks and processes.
Set up regular check-in meetings to discuss progress and address questions.
Provide resources for professional development within the company.
Facilitate the transition to independence while remaining available for future support.

This checklist serves as a roadmap for the buddy, ensuring that they provide comprehensive support to the new hire throughout their onboarding journey.

It also helps in standardizing the onboarding experience, ensuring every new employee receives the same level of support and information.

An onboarding buddy system is more than just a mechanism for welcoming new employees; it’s a strategic investment in the long-term success and integration of new hires into the company.

By providing immediate support, facilitating cultural integration, and enhancing job satisfaction, onboarding buddies play a crucial role in the overall employee experience.

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7 out of 10 workers are worried about jobs in age of AI: Survey

Keith MacKenzie — Thu, 28 Mar 2024 15:50:44 +0000

In 2008-09, it was the subprime mortgage crisis. In 2020, it was the pandemic. In 2022, it was the invasion of Ukraine. And now, we have AI.

All of these things contributed to destabilization of economies – and at the individual level, anxieties around job security.

In Workable’s AI in Hiring & Work survey, one of the questions we asked was about how employees are feeling about AI’s emergence as a mainstay in the workplace.

So, are employees worried about their jobs? Yep, they are.

Nearly seven out of 10 (68.1%) say employees in their company frequently or occasionally express concerns about AI impacting their job security.

Only 7.9% – less than one in 12 – say they don’t see those concerns being raised in their workplace.

The industry lens

Perhaps unsurprisingly now that Construction is shown to be a leading industry in AI adoption, this industry also leads in terms of job security worries at 84%, 15.9 points higher than the overall benchmark of 68.2%.

Education (61.1%) and Retail (55.2%) aren’t as concerned.

In fact, two out of five in Retail (40.3% vs. 30% overall) say their employees rarely or never express concerns about AI impacting their job security.

The post 7 out of 10 workers are worried about jobs in age of AI: Survey appeared first on Recruiting Resources: How to Recruit and Hire Better.

AI in HR can transform overload into meaningful impact

Alexandros Pantelakis — Wed, 27 Mar 2024 16:27:21 +0000

The concept of generative AI, particularly its application in HR, marks a significant shift towards the integration of advanced technologies in daily operations.

Recent surveys and reports shed light on a burgeoning trend: a substantial proportion of HR professionals are now harnessing the capabilities of gen AI to enhance various aspects of their work.

This movement is not just about adopting new tools; it represents a deeper evolution in the approach to HR management, where AI’s potential to optimize and innovate is being recognized and actively pursued.

Gen AI among HR professionals

Statistics reveal a growing acceptance and utilization of gen AI among HR practitioners. For instance, in a comprehensive survey conducted by Grammarly found that 60% of professionals use generative AI for work-related tasks, and 61% of knowledge workers report that their teams are planning to implement gen AI technology within the next 12 months

“HR expects to take a leading role in the evolution of generative AI; 35% of the 133 HR leaders who responded to Gartner’s survey expect to lead their organization’s enterprise-wide AI ethics approach,” noted Helen Poitevin, VP analyst in the Gartner HR practice.

This widespread adoption underscores a pivotal transition, with gen AI becoming an integral component of the HR toolkit.

The implications of this shift are profound. With gen AI, HR departments can automate routine tasks, such as sorting through resumes and scheduling interviews, thereby freeing up valuable time to focus on more strategic initiatives like workforce planning and employee development. Furthermore, gen AI’s ability to analyze vast amounts of data can help HR professionals identify trends and insights, enabling more informed decision-making and a proactive approach to addressing workforce challenges.

Enhancing Communication with AI

One of the most significant impacts of gen AI in HR is its ability to transform communication. Effective communication is the backbone of HR, crucial for everything from recruiting and onboarding to employee engagement and retention.

Gen AI tools have changed this domain by making communication more efficient, targeted, and impactful.

AI-driven communication platforms can automate and personalize a wide range of HR communications, from initial recruitment messages to regular employee updates.

This not only ensures consistency and accuracy but also allows for a level of personalization that was previously unattainable at scale.

For example, AI can tailor communication based on the recipient’s role, location, or even personal preferences, enhancing the relevance and effectiveness of the message.

The benefits of improved communication are tangible. The same study by Grammarly and The Harris Poll titled “State of Business Communication” highlights that employees who use generative AI tools for writing tasks experience a 52% increase in efficiency, a 50% boost in productivity, and a 38% reduction in costs.

By automating the creation and distribution of communication materials, AI enables HR professionals to dedicate more time to strategic engagement and personalized interactions, fostering a more connected and motivated workforce.

Related: Top AI in hiring statistics

Improving work quality through AI

The influence of gen AI extends beyond communication, significantly elevating the quality of work across HR functions. From the automated generation of job descriptions to the sophisticated analysis of employee feedback, AI is enabling HR professionals to perform their roles with greater accuracy and consistency.

Tools like AI-powered analytics platforms are transforming decision-making processes by providing insights into employee performance, engagement levels, and retention rates, thereby allowing HR teams to devise more effective strategies.

One of the most compelling applications of AI in HR is in performance management. AI systems are now capable of analyzing performance data in real-time, offering personalized feedback to employees, and identifying development opportunities that are aligned with individual skills and business goals.

This not only streamlines the performance review process but also contributes to a more dynamic and supportive work environment.

Furthermore, AI’s capacity to predict employee turnover and identify factors contributing to dissatisfaction or disengagement is helping organizations to proactively address potential issues, thereby improving retention rates and overall workplace morale.

Boosting productivity in HR with AI

Generative AI is not just transforming how HR tasks are executed; it’s redefining the very notion of productivity within the HR domain. By automating routine and time-consuming tasks, AI enables HR professionals to focus on more strategic and impactful activities.

For instance, AI-powered tools are being used for resume screening, candidate matching, and even preliminary interviews, significantly reducing the time HR teams spend on these processes.

The implications of this shift are profound: a study by Deloitte indicates that organizations utilizing AI for such tasks can see a productivity increase of up to 35%.

Moreover, AI’s role in reducing miscommunications and errors—common issues in manual HR processes—cannot be overstated.

By ensuring that communications are clear and processes are accurately followed, AI tools minimize the risk of costly mistakes and misunderstandings. This level of precision and efficiency translates into not just time savings but also enhanced employee satisfaction and engagement.

New report: AI in Hiring 2024

We asked 950 hiring managers how they're using AI in hiring and in the workplace. And now we have a new survey report packed with insights for you.

Get your free report now!

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AI education and training in HR

The potential of AI in HR can only be fully realized through a comprehensive understanding and adept use of these technologies.

Hence, the emphasis on AI education and training within HR is critical. Organizations leading in AI adoption are implementing specialized training programs designed to enhance AI literacy among HR professionals.

These programs focus on the practical applications of AI tools in HR tasks, ethical considerations, and data privacy, ensuring that HR teams are equipped to leverage AI responsibly and effectively.

Additionally, fostering a culture of continuous learning and adaptability is essential for staying abreast of rapid technological advancements.

HR departments that prioritize ongoing education on AI and its evolving capabilities are better positioned to innovate and maintain a competitive edge in talent management and organizational development.

Strategic investment in HR technology

To capitalize on AI’s potential, strategic investments in HR technology are essential. This means not only adopting AI tools but also ensuring that these tools are integrated seamlessly into existing HR systems and processes.

Successful organizations are those that select AI solutions that complement their HR strategies, enhance employee experiences, and drive operational efficiencies.

Investing in AI technology also involves a commitment to data security and privacy, considering the sensitive nature of HR data. Therefore, selecting AI partners and platforms that prioritize ethical AI use and data protection is paramount for HR leaders aiming to build trust and ensure compliance.

The integration of AI into HR practices offers an unprecedented opportunity to transform traditional tasks into strategic, impact-driven operations.

By enhancing communication, improving work quality, boosting productivity, and fostering a culture of continuous learning and innovation, AI is setting a new standard for HR excellence. Do you feel part of it?

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People aren’t so interested in pay transparency; they only need this

Alexandros Pantelakis — Tue, 26 Mar 2024 16:37:37 +0000

While pay transparency remains a significant concern, access to a comprehensive benefits package is increasingly seen as paramount.

However, the latest reports indicate a shift in what employees value the most. Let’s discover it together.

The growing demand for pay transparency

The conversation around pay transparency is not new, but its importance and the demand for it among employees have surged to unprecedented levels.

A report by Visier paints a telling picture: 79% of surveyed employees express a desire for some form of pay transparency, with a notable 32% seeking total transparency where all employee salaries are publicized.

This growing trend is not isolated to a specific demographic; it spans across generations, with GenZ employees at the forefront, advocating for a transparent approach to compensation as a means to build trust and foster a fair workplace environment.

This demand for transparency is deeply intertwined with the notion of equity and fairness within the workplace. Employees believe that open discussions around pay can lead to more equitable compensation practices, effectively addressing disparities and biases that have long plagued salary negotiations.

Moreover, the willingness of 68% of employees to switch employers for greater transparency—without an accompanying increase in compensation—signals a profound shift in workplace values.

However, this demand for transparency represents more than just a desire for open disclosure of salaries; it reflects a deeper quest for respect and acknowledgment in the workplace.

The implications of this shift are far-reaching for employers. In an era where talent retention is as crucial as talent acquisition, the ability to offer transparency becomes a competitive advantage.

It’s a clear message to current and potential employees that an organization is committed to fairness, equity, and open communication. However, as the data will reveal, pay transparency, while highly valued, is only one piece of the puzzle when it comes to attracting and retaining top talent.

The emerging workforce priorities suggest a broader definition of what constitutes a desirable employer, with benefits and perks increasingly taking center stage.

The shift towards benefits over pay raises

A pivotal shift is underway in the landscape of employee compensation preferences. According to a survey conducted by Glassdoor and cited by HRD America, an overwhelming 80% of employees would choose additional benefits over a pay raise.

This staggering figure highlights a crucial trend: while salaries are important, the value placed on non-monetary compensation is growing significantly.

This shift underscores the evolving definition of what it means to be adequately compensated in today’s workforce.

The changing preferences can be partly attributed to the COVID-19 pandemic, which has reshaped many aspects of the workplace, including benefits offerings.

Insights from Robert Half reveal that organizations have been prompted to revise their benefits, with a notable pivot towards health coverage and work-life balance enhancements.

This adjustment reflects a broader understanding that, beyond the paycheck, employees are seeking support in navigating the complexities of modern life.

Health insurance, flexible work schedules, and mental wellness initiatives have emerged as top priorities for employees, signaling a shift towards a holistic view of compensation that prioritizes quality of life.

This reevaluation of benefits versus salary increases is not merely a response to global crises but a reflection of deeper societal changes.

Employees are seeking benefits that address their specific life circumstances, such as child care support, elder care assistance, and mental health services.

These benefits, often seen as perks, play a significant role in an individual’s decision to join or stay with an employer, highlighting the competitive edge that a comprehensive benefits package can provide.

Comprehensive benefits as a competitive edge

The strategic importance of offering a comprehensive benefits package cannot be overstated.

Data from the Society for Human Resource Management (SHRM) in its Employee Benefits Survey illustrates how organizations are adapting their offerings in response to global challenges and evolving employee expectations.

The inclusion of new, diverse benefits reflects an awareness of the need to support employees not just financially but in their overall well-being and life satisfaction.

Moreover, the PwC Employee Financial Wellness Survey sheds light on the rising financial stress among employees, exacerbated by inflation and economic uncertainty.

An astonishing 60% of full-time employees report being stressed about their finances, with this concern spanning across income levels. This financial stress not only affects their personal lives but also their productivity and engagement at work.

By offering resources such as financial wellness programs and coaching, employers can play a pivotal role in alleviating this stress, thereby enhancing employee satisfaction and retention.

The Aon Benefits and Trends Survey further emphasizes the changing landscape of employee expectations, particularly regarding their work experience and well-being.

With 93% of companies acknowledging these evolving expectations and 95% recognizing their responsibility towards employee health and well-being, it’s clear that the bar has been raised.

Yet, 67% of employers feel they are falling short in supporting financial well-being and pensions through effective communication, pointing to an area ripe for improvement.

The emphasis on benefits over salary and the role of comprehensive benefits packages as a competitive edge highlights a critical shift in workplace dynamics.

Avoid quiet quitting with pay transparency and benefits

The State of the Global Marketplace report by Gallup provides a window into the broad spectrum of employee preferences, which extend far beyond base salary considerations.

With 28% of feedback related to pay and benefits, employees are vocalizing their need for fair compensation, but they are equally emphatic about the importance of benefits like transport cost vouchers, access to quality childcare, and health and wellness support.

The report also ties these preferences back to the larger picture of employee engagement and retention.

In an era marked by phenomena like “quiet quitting,” where disengagement manifests in minimal effort, the suggestions for workplace improvements often revolve around better engagement practices, culture enhancements, and, significantly, improvements in pay and benefits.

The value of benefits and perks cannot be understated. They offer a sense of security, demonstrate an employer’s investment in their employees’ health and happiness, and foster a positive workplace culture that values individual needs.

The effectiveness of these benefits, however, hinges on communication. Employees must be made aware of the benefits available to them and understand their value. This understanding fosters appreciation and loyalty, making employees more likely to stay with an employer who they feel genuinely cares for their well-being.

Strategic recommendations for employers and HR professionals

As the landscape of employee expectations continues to evolve, employers must adapt their strategies to remain competitive. Here are several recommendations:

Continually assess and adapt benefits offerings: Stay abreast of changing employee needs and industry trends to ensure that your benefits package remains relevant and competitive.

Enhance transparency and communication: Clearly communicate the full scope and value of the benefits package offered to employees. Consider regular information sessions and accessible resources that help employees make the most of their benefits.

Focus on holistic well-being: Expand the concept of benefits beyond traditional offerings to include initiatives that support mental health, financial wellness, and work-life balance.

Solicit employee feedback: Engage employees in discussions about benefits and compensation to ensure their needs and preferences are being met. This can also highlight areas for improvement that may not have been previously considered.

Embrace flexibility: Flexible work arrangements are highly valued by today’s workforce. Incorporate flexibility into your benefits package, whether through remote work options, flexible hours, or compressed workweeks.

Employers who recognize and adapt to these evolving preferences will not only enhance their competitive edge in the talent market but also foster a workforce that is engaged, satisfied, and loyal.

HR professionals, what will be your next move?

The post People aren’t so interested in pay transparency; they only need this appeared first on Recruiting Resources: How to Recruit and Hire Better.

Sanders’ 32-hour workweek: what Reddit & employers think

Keith MacKenzie — Fri, 15 Mar 2024 19:24:45 +0000

If a company gave you Fridays off, but you were able to keep your current salary, would you do it? Of course you would.

If you were an employer encouraged to do that for your teams? Maybe yes, maybe no.

The topic of the 32-hour workweek – also described as the four-day workweek – is top of mind for those in the business community after US Senator Bernie Sanders presented new legislation calling for a shortened workweek without a reduction in pay.

If passed, any hours worked above 32 in a week would mandate overtime pay.

Why this and why now?

It’s been a wild year – we’re seeing technology in the form of artificial intelligence becoming a mainstay at work for many, and an increased pressure on higher productivity among workers who are operating in times of austerity. And the logic is that this trend needs to be curtailed before it gets out of hand.

According to the New York Times, Sanders said: “The sad reality is that Americans now work more hours than the people of any other wealthy nation.” He cites data that US workers work far more hours than their peers in other countries including Japan, the UK, and Germany.

“The sad reality is that Americans now work more hours than the people of any other wealthy nation.”

Does Sanders have a point? Let’s get into the conversation.

32-hour workweek: the experiences

Let’s first look at those who have actually done it. Matt Buchanan at Service Direct introduced alternating 32-hour workweeks as a three-month experiment in his own company in 2022, and shared his story with Workable.

The result at Service Direct was mostly positive – all workers wanted to keep it after the trial period ended, 93% said productivity improved and 85% said they felt more rested and happier at work.

Meanwhile, 4 Day Week Global (4DWG) – yes, that’s a real organization – found huge value in a four-day workweek based on trials in a number of countries including the US, UK, Ireland, Australia, New Zealand, and a handful of other countries since its inception as a consultancy to willing parties in 2019.

4DWG found that employee engagement went through the roof, with a 42% decrease in employee turnover and 68% decrease in burnout.

Employees actually want it too according to 4DWG data – with 63% of participating organizations now finding it easier to attract new talent to their open jobs when operating on a four-day workweek schedule.

32-hour workweek – take it or leave it?

But take that with a grain of salt. The Washington Post reports that two thirds of the companies in the UK trial, for instance, had fewer than 25 employees – allowing for greater flexibility in hours than larger, more standardized enterprise organizations.

Also, their willingness to participate suggests they’re already looking to move in that direction.

Additionally, according to WaPo, 90% of the employees involved in the pilot project were White – indicating potential privileges that allow for greater flexibility in this group.

And Reddit, of course, has opinions too

A quick scan of Reddit posts suggests that there’s more skepticism than one might realize. A quick glance at a new thread in the popular online site suggests there’s plenty of support for it – but again, with a healthy dose of skepticism.

For instance, Reddit user gracelyy wrote:

“Of course I love it in theory. In reality people are greedy and don’t wanna pay their workers more, so they’re going to try to find any loophole they can in order to make sure your pay is decreased if you work that 32 hour mandatory workweek.”

“Of course I love it in theory. In reality people are greedy and don’t wanna pay their workers more, so they’re going to try to find any loophole they can in order to make sure your pay is decreased if you work that 32 hour mandatory workweek.”

And there’s more pain than that, too:

“As much as I want it to pass.. it won’t. The entire country needs a major overhaul in order for anything like that to even pass the House,much less end up on anyone’s desk who won’t immediately trash it. And if it does ‘pass’, they’re gonna jack up prices and force a false inflation to account for how much they’re gonna be forced to pay workers. Then all of a sudden you’ll need 5 million to retire instead of 2 mil.. if you do retire.”

Which invited this retort from DetectiveJoeKenda:

“Imagine if all of the labour organizers and workers who fought for the rights we have now thought like you. I’m glad they didn’t.”

Well, it can work, right?

User lostmindplzhelp then shared their past experience with the four-day workweek:

“I had it for a few years before Covid came along. We worked 32 hours but got paid for 40. It was pretty awesome but I saw it as a raise they could take away at any moment, which is what happened once business slowed down and the company had to start minimizing expenses. Now I work 32 hours there, get paid for 32, and work somewhere else on weekends to make up for the lost income.”

But all in all, it’s a nice experience for everyone involved:

“Our company is not very productive so it had no effect on productivity. Having a weekday off was nice. The schedule was staggered so some of us worked Monday-Thursday and some worked Tuesday-Friday and the office could stay open as usual. TLDR it’s pretty cool.”

The almighty dollar has something to say

Money, of course, was a hot topic. For instance, flsingleguy suggests that this is something much needed in the modern working world.

“Wages in the U.S. have stagnated since the early 1970s. Between 1979 and 2020, workers’ wages grew by 17.5% while productivity grew over three times as fast at 61.8%. The 32 hour workweek would be an effective way to bridge that gap and give people the time they really need in this crazy world.”

But it’s not always feasible

Wages are nice, but employers have their own needs, according to bklynboyz2, who wrote:

“How about a 5 hour week? One hour week? 10 minute week? You do know companies need to make money if you expect same pay with less hours? Then you complain WAH WAH I am not paid enough!”

Realistic_Salt7109 agreed:

“Who is gonna force employers to pay 20% more? Without repercussions?”

Mooblegum also pointed to the downsides of a four-day workweek in this comment in another Reddit thread from four months earlier:

“Like always, it will be more people without jobs and the rest working full time or even overtime. It is like this in my country in France, many have no jobs but the government just decided to make people work until 64 (it was 62 until now).”

The role of AI in the four-day workweek

We mentioned the role of artificial intelligence above as a reasoning for Sanders’ new legislation. There’s a huge reality there.

Data from London-based news-and-events resource Tech.co collected in late 2023 shows it. In their 2024 Impact of Technology on the Workplace study, which surveyed more than 1,000 business leaders, they found that 29% of businesses on a four-day workweek use AI extensively in their work processes – this includes ChatGPT and other programs to support overall operations.

On the flip side, just 8% of those on a standard five-day workweek use AI to the same extent.

The correlation between AI-driven productivity and the propensity for a four-day workweek is clear:

Closely related is that nearly three out of four (72%) of businesses experienced higher productivity with heavy use of AI in work processes.

So does this mean organizations can do more with less when using AI – and therefore are able to shift to a four-day workweek without a loss in productivity?

The answer is a resounding yes, with 93% of business leaders at AI-focused companies either considering or having already introduced a four-day workweek in their overall business strategy.

But does it work in the real world?

Again, there are many opinions on this at Reddit. Users like PmMeYourBeavertails, were quick to point out the impracticalities of a four-day workweek in terms of time investment and resources:

“How would a 32 hour week work for manual labor? You can’t check out 40 hours worth of customers in 32 hours. Stores will have to hire someone else to cover those 8 hours, resulting in price increases. You also can’t see 40 hours worth of patients in 32 hours, or wait 40 hours worth of tables. Wanna build a house? That’s now gonna take you 20% longer or will be 20% more expensive.”

‘More for less’ will hurt workers

Workable’s AI in Hiring & Work survey report for 2024 finds that workers are more efficient in their jobs when using AI – with three in four workers (75.7%) saying AI has enhanced productivity in their day-to-day work by a little or by a lot.

But is that a good thing? Not necessarily.

For instance, DumpTrumpGrump suggested in the previous Reddit thread that there’s other motivations for employers using AI that may not be so beneficial for employees:

“[Companies] will just hire fewer workers and expect higher productivity out of the ones they do hire. I’m using AI every day right now and comfortably doing the job of 3-4 people right now which is only possible because (1) the work I’m doing for jobs normally outside my specific hired role can be greatly assisted by current AI options and (2)! there’s no one else in the company who can adequately do you those roles nor budget to hire for them. When budget [becomes] available, I [expect] we will hire someone who is only working 15 hours per week but still gonna be expected to show up every day.

And “getting more done with less” continues to be a point of contention:

“Eventually you’ll start seeing the consolidation of jobs. For example a marketing job might end up doing all ad spend, SEO, SEM, content / copy creation and design (web and graphic) whereas most mid-sized companies would split those roles into 3 or 4 roles today.”

Everything old is new again?

Another user, radio_gaia, lamented that the whole AI-driven work environment is just another reflection the same old, same old:

“We’ve heard this before albeit not about AI. Same capitalism model will kill this dream again. The best thing an individual can do is build a skill set that has more demand than supply to be able to earn enough to live and work less hours if they choose to do so. It’s always the same.”

32-hour workweeks may be here to stay

Whatever people think or don’t think, it seems that the trend is heading in that direction anyway. A report from the UK-based think tank Autonomy predicted that by 2033, 28% of the total workforce in the UK would be working in the four-day workweek and 88% of the workforce would see working hours reduced by 10%. Again, a correlation between the integration of AI and the standardizatio of four-day workweeks.

The end result? Quality of life increases for workers. That’s one of the reasonings behind Sanders’ proposed legislative change.

That’s the hoped-for end game for many. But will worker happiness and better health be the end result? We will have to see.

The post Sanders’ 32-hour workweek: what Reddit & employers think appeared first on Recruiting Resources: How to Recruit and Hire Better.

Survey: AI boosts productivity for three of four workers

Keith MacKenzie — Thu, 14 Mar 2024 20:35:52 +0000

AI is everywhere – and then some. Many workers find it automates processes like nothing else has before – others are fearful that AI is going to take over their jobs. For every company that bans use of AI tools due to compliance or privacy considerations, there’s another company that dives headfirst into it.

New report: AI in Hiring 2024

We asked 950 hiring managers how they're using AI in hiring and in the workplace. And now we have a new survey report packed with insights for you.

Get your free report now!

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And the seemingly endless list of new AI tools is growing by the day. 2024 is bound to see even more developments in this area.

But how effective is it? In Workable’s AI in Hiring & Work survey report, we wanted to understand the effectiveness of the technology at a deeper level in overall work.

And now, we have a snapshot of how it’s being used in the modern working world.

The effectiveness of AI at work

In all the excitement, an important question stands out for professionals: how does AI help one work?

Since work is often measured in terms of productivity, we asked how effective AI is at enhancing day-to-day operations.

Three in four (75.7%) say it’s either highly or somewhat effective in their daily job.

Another two out of five say it hasn’t made a difference – in other words, they answered “neutral”.

Just one in 20 (5%) say AI is somewhat or highly ineffective at enhancing productivity.

The industry lens

Construction resoundingly calls AI very effective in enhancing productivity (86.4% vs. 75.7% overall), with Accounting / Finance coming in second out of the seven industries in this measurement (82.3%).

Healthcare is much more likely to say the effect is ultimately neutral (29.4% vs. 19.5% overall) – it’s also more likely to say it’s somewhat or highly ineffective (6.9% vs. 5% overall).

The post Survey: AI boosts productivity for three of four workers appeared first on Recruiting Resources: How to Recruit and Hire Better.

Going viral as an employer – for all the wrong reasons

Suzanne Lucas — Thu, 13 Jul 2023 12:04:10 +0000

I’ve been working in HR for more than 20 years, but I’ve also worked in media for a long time, which makes me uniquely positioned to help you go viral as an employer! Of course, nothing can guarantee virality, but there are many things you can do to help get our company trending on Twitter.

Here are some things I’ve seen that can help you if you want your company to be the talk of the town.

Related: There are ways to communicate bad or shady news to your teams so they don’t result in PR disasters – the Kate Photoshop debacle is a perfect lesson for employers. Check it out!

1. Praise high gas prices

An Applebee’s executive emailed colleagues praising high gas prices. He reasoned that with gas being so high, people would need to work more hours. With more people desperate for work, Applebee’s could pay their employees less. A profitable situation for sure!

This helpful tip for saving money made Applebee’s hit the headlines in Inc, CBS News, Fortune, Fox Business, and many other news outlets. Can you imagine how much work a public relations department would have taken to get average news into the headlines? A golden opportunity, for sure!

2. Take WFH to the next level

Working from home is exactly what employees want. As such, companies that allow people to work from home can easily attract applicants and keep current employees engaged (even if new figures show that remote work has made people less productive).

Many people argue that anything that can be done in an office can be done remotely, and these companies went viral as an employer, showcasing just how they genuinely mean anything–like firing people.

Vishal Garg, the CEO of online mortgage lender Better.com, fired more than 900 people via Zoom. Everyone heard about that.

McDonald’s generally required everyone to work in the office, but when they had layoffs planned, they sent everyone home so that they could fire people remotely. Talk about embracing new technology and new ideas! Everyone talked about McDonald’s for days, not just because their chicken McNuggets are like crack to toddlers.

And then there’s Elon Musk, who goes viral just by breathing (it helps when you own Twitter), who announced the end of remote work for Twitter employees but didn’t make people come into the office to lose their jobs.

If you can fire people remotely, you already have a leg up on your competitors when it comes to virality.

3. Bring in a bit of (fake) religion

When your employees want to go to confession but don’t have time, you could bring in a priest. That’s what Taqueria Garibaldi in northern California did. Except he wasn’t a real priest, and he reported all the “confessions” to the boss, who used them to discipline the staff.

The Department of Labor uncovered this during an investigation into wage and hour problems, and the optics of it made the case go viral. Any time you want to get more press for your business, consider thinking outside the box and faking religion.

4. Go on a date (with your mistress)

China National Petroleum went viral this week when one of its executives got caught on video on a date with his mistress. If your junior accountant has an affair, the only people who care are the HR department and the injured spouse. But, if your leadership does, it can make people talk about your company.

Do you really want to go viral?

While sometimes good things cause companies to go viral, it’s far more likely that your screw-up will be what trends on Twitter.

Like it or not, people don’t sit around talking about this small business that gives paid maternity leave.

If you focus on getting your company in the limelight, you may not like it too much. Take Gravity Payments, which went viral a few years ago when CEO Dan Price made the minimum salary at his company $70,000 – himself included. While that made great headlines and positive discussion, it also made people pay a lot of attention to a relatively small company.

When it turned out that Price was not a fine and upstanding gentleman, he went viral again.

The best thing you can do for your employees is to have a stable, legally compliant business. If you want something to go viral, you want it to be a product – a well-tested product.

You’ll likely get attention when you ignore the Americans with Disabilities Act or fire pregnant employees. Giving employees reasonable accommodations and following the law (including the newly activated Pregnant Workers Fairness Act) will keep you out of trouble and out of the spotlight. But honestly, that’s what you want. You want a rock-solid business with good employees, and that’s how you get that.

Forget going viral. It’s not the best solution for your recruitment marketing needs.

The post Going viral as an employer – for all the wrong reasons appeared first on Recruiting Resources: How to Recruit and Hire Better.

AI and candidate experience: 49.6% say it’s a mixed bag

Keith MacKenzie — Thu, 07 Mar 2024 17:28:13 +0000

Hiring team members are not the only beneficiaries of – or more accurately, not the only ones impacted by – AI use in the hiring process. In other words, AI isn’t only useful for those who do the hiring. There are those who hire, and there are those who are hired.

New report: AI in Hiring 2024

We asked 950 hiring managers how they're using AI in hiring and in the workplace. And now we have a new survey report packed with insights for you.

Get your free report now!

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Because the focus of hiring and recruitment is ultimately to get job applicants – and ideally, the perfect hire – it makes sense to ask hiring team members what the experience has been like for candidates when AI is used in hiring.

So, we asked that specific question in our AI in Hiring and Work survey: “How do candidates generally respond to the use of AI in your hiring process?”.

Two out of five respondents (38.7%) say they’ve received mostly positive feedback from candidates in regards to AI in hiring. That sounds pretty good, except that half (49.2%) also say they’ve received mixed feedback from applicants in the hiring process.

AI in hiring – the positive CX

Let’s look at the positives first: it likely stems from better communication – even automated information and updates are better than nothing at all. Candidates like to know what’s going on with their application. For instance, AI chatbots can make a huge difference.

Also, the automation capabilities of AI in the hiring process mean that the hiring process can be sped up. That’s always a nice experience for candidates, who are accustomed to long waits between updates and stages in the process. We’ve seen complaints on Reddit about that.

AI in hiring – the negative CX

What about the negatives? We can presume that it’s about the non-human approach. You know how annoying it can be to “press one for XYZ” and “press two for ZYX” when trying to get through to a human being in customer support. Candidates are no different.

Also, there’s a perceived danger in allowing “robots” to make decisions for you – candidates are understandably skeptical about that. Being transparent about this from the get-go will be crucial to set expectations and maintain a positive experience for candidates.

The industry lens

When looking at the different industries, Construction leads in terms of positive feedback (53.3%, a full 14.6 points higher than the baseline), while Manufacturing lags in that same area (33.8%).

Retail, on the other hand, has twice as many respondents receiving mostly negative feedback compared with the baseline (10.5% vs. 5.3%) while just 2% of Healthcare respondents say the same.

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Tackling age discrimination in the workplace: 5 HR strategies

Elpie Fampiou — Wed, 06 Feb 2019 14:15:51 +0000

We’re living in a unique period where five different generations potentially coexist in the workforce. Factors such as improved healthcare and delaying retirement credits result in employees born in the 1950s working alongside those born in the 1990s and even 2000s.

Can these different age groups work together in harmony or is there a certain age discrimination that hinders collaboration and productivity?

While millennials (born between 1981 and 1996) are the prevalent generation, they’re often the target of criticism. They’re known as “entitled, lazy people who are addicted to social media and their biggest concern is whether their next office will have ping pong tables.” But they’re not the only ones who face age bias.

In fact, age discrimination in the workplace takes on many shapes and forms. And it starts even before hiring. For instance, consider the possibility that female candidates in their 30s get rejected or turned down for promotion because they’re mothers or “might get pregnant soon”.

Or when millennials are looked with suspicion and are considered unreliable because of their increased tendency for job-hopping.

But it doesn’t end there. Think of the following examples of age discrimination in the workplace:

Baby boomers who don’t apply to jobs they’re fully qualified for because they’re afraid they won’t fit in the “youthful and vibrant startup culture”.
Millennials who try to apply new methodologies and tools when working at traditional industries (e.g. manufacturing or logistics) but come across a “this is how we’ve always done things here” mentality.
GenX employees who prefer childcare and job security over flexible work schedules but have to settle for benefits less meaningful to them when they’re not the prevalent generation at work.
GenZ employees who are expected to pick up very quickly how systems work, since they grew up with unlimited access to information and technology.

It’s getting clear from these examples that there are two main issues when different generations coexist in the workplace. First, different age groups have different needs and expectations and this can turn into a game of power: whose needs will be met?

And, second, the generation gap widens even more as we make assumptions and over-generalizations about our younger or older colleagues.

With baby boomers, millennials, GenX and GenZ employees around at the same time, work environments are by default diverse – at least as far as age is concerned. We need to foster a more inclusive environment that engages each group’s strengths and motivations.

From ageism to inclusion

When the topic of diversity and inclusion is raised, what are the first topics you think of? If you’re like many recruiters and HR managers, you’re likely thinking about gender and race. Women who don’t get promoted, ethnic minorities who are not included in key decision making processes – these are common themes you try to tackle when you want to achieve a more diverse and inclusive work environment.

This is great, of course. It means you’re already heavily invested in DEI in your office, but the expansive coverage of gender and race equity may have monopolized your efforts. There are so many other aspects to DEI that you may not have thought of – which brings us to age.

Tackling ageism poses an extra challenge, though. The way people perceive or define DEI does not vary much in the gender and race categories, however, it does vary widely among people of different ages.

Older generations, including GenXers and baby boomers, define DEI as equal representation of and fair opportunities for all employees, regardless of any bias towards race, gender, religion or sexual orientation. They primarily care about the moral side of DEI, seeing it as the right thing to do. They have a more anthropocentric approach while taking into account demographic differences.

On the other hand, younger generations such as millennials and GenZers interpret DEI as the existence of diverse perspectives and ideas in the workplace and the inclusion of these ideas in achieving business goals, also known as cognitive diversity.

They value the impact that different opinions and experiences can have on productivity and business innovation and emphasize the importance of connection, collaboration and formation of relationships in order to deliver results.

These diverse perspectives have a strong influence on daily work life.

So, in short, the standard approach to DEI isn’t always applicable here. Tackling age discrimination in the workplace has its own unique angles for HR.

How can HR fight age discrimination?

1. Take a strong stand against ageism

Apply anti-discrimination policies that clearly indicate how you hire employees, how you train them and how you promote them, regardless of age or other factors. Also, establish ways for your employees to speak up when they face age discrimination in the workplace and explain how you’re going to investigate any complaints.

2. Acknowledge existing issues among your employees

Age bias is often unconscious. Whether you realize it or not, your company culture may put some of your employees off. For example, when you organize team building activities or after-work meals, do you take into account that some older employees who have families might not be able to adjust their personal schedules?

Don’t assume that everyone enjoys or uses the same benefits; it’s best to ask so that you ensure that what you offer is inclusive and offers options for each age group.

3. Provide training on new technologies

Younger generations are usually more familiar with modern tech stacks, as opposed to baby boomers, for example, who’ve been working with the same tools for years. As millennials now are getting managerial positions, it’s natural that they’ll want to apply new systems and tools with the expectation that others adapt quickly to them. Don’t let people feel out-of-date; make sure everyone knows how to use company-wide software and provide additional assistance if needed.

4. Rethink career paths

Different generations have different challenges when it comes to career development. Older employees might feel pressure seeing their younger coworkers bringing their fresh ideas and ambitions on board, while they’re stuck in the same position.

On the other hand, younger employees may think that it’s not worth investing (and staying for too long) in a company where they won’t have the chance to get promoted for at least 10 years due to an inflexible structure.

To change that, consider non-traditional career paths inside the company, develop employees’ professional interests and apply mentoring and reverse-mentoring techniques.

5. Consider the similarities, too

Yes, age groups have differences, but they have things in common, too. Perhaps, though, we’ve heard the stereotypes for so long that we’re now too biased to see past them.

For example, we often hear how millennials are all about digital communication against face-to-face. But other studies show that this is not necessarily the case: younger generations actually value in-person meetings and networking.

Another mythbuster? Contrary to popular belief, millennials are only job-hopping as frequently as GenXers did in the past.

Finding that common ground among different age groups could be the key to narrowing generation gaps. There is no magic solution, of course, but there are many steps towards building a healthy, inclusive work environment where employees feel included every step of the way regardless of the life stage they’re in.

The post Tackling age discrimination in the workplace: 5 HR strategies appeared first on Recruiting Resources: How to Recruit and Hire Better.

What if skills-based hiring doesn’t work?

Alexandros Pantelakis — Tue, 05 Mar 2024 16:07:47 +0000

Although many employers have publicly committed to removing degree requirements from job postings to promote skills-based hiring, the transition from traditional degree-based hiring practices to genuine skills-based hiring is complex and gradual.

This is our first interpretation of reading the report by Harvard Business School and Burning Glass Institute.

They analyzed more than 11,300 roles at large firms, defined as a given occupation at a given employer, for which there was a meaningful volume of hiring for at least one year before and after a firm removed a degree requirement.

This data was gathered from the Burning Glass Institute’s database of the career histories of 65 million US workers.

TL;DR is that companies are all about words and promises, but they feel insecure about implementing a skill-based hiring process without first observing results in other companies. And that’s okay. Let us explain more.

Skill based hiring as the promised land

45% of firms that communicated that they follow a skill-based hiring approach had no meaningful difference in their actual hiring behavior after removing stated degree requirements, according to the report.

If you consider that, at the same time, 18% of firms were identified as backsliders – firms that initially made progress in hiring non-degreed workers but later reverted to previous patterns – this raises questions about the effectiveness of this hiring strategy or the challenges that may arise.

While there is a notable increase in the number of roles for which degree requirements have been dropped – 97,000 incremental non-degreed hires occurred in 2023 – this has only translated into a modest increase in the hiring of non-degreed candidates (+3,5%).

Out of 77 million yearly hires, the above equals to 1 in 700 hires last year

Furthermore, the impact of these changes varies significantly among employers, with only a portion making tangible changes to their hiring practices that align with a skills-based approach.

What if skills-based hiring doesn’t work in the end?

Deep down, most companies are hesitant to take risks. The idea of skills-based hiring may appear promising, but what if it ultimately fails?

Companies tend to prefer following suit rather than experiencing the hardships themselves.

So, how do you move to skills-based hiring while also mitigating any risks in the process?

The shift to a skills-first approach begins with organizational changes and tangible outcomes. Part of this discussion involves not only the executives but also the HR professionals who will be responsible for the hiring process.

By providing proper training to the HR team, defining specific qualities and targets, and measuring the outcomes, this process could be very fruitful and change the dynamics of the workforce.

Still, if you follow this practice and do not achieve the positive outcome you were aiming for, there is a lot to learn from this experience.

For a company that finds skills-based hiring not as effective as expected, it may need to revisit and adjust its approach.

This could involve enhancing skills assessment techniques, integrating educational qualifications where necessary, or improving ongoing training and development programs to bridge any gaps.

It’s also important to collect feedback from the hiring process and outcomes to identify specific areas of improvement.

The key is flexibility and willingness to adapt hiring practices to align with both the company’s needs and the evolving workforce landscape.

Transition to the skill-based hiring process

About half of the employers continue to hire candidates with degrees at the same rate as before, despite removing educational requirements from job listings.

Construction Managers, Sales Supervisors, Web Developers, IT Help Desk Specialists, and several clerical positions are among the professions that would benefit from a skills-first approach.

If you believe it’s about time to make the transition, here’s a strategy you can use to increase your talent pools and make skill-based hiring a priority.

Adjusting hiring processes

Moving from degree-based to skills-based hiring requires significant adjustments to existing hiring processes.

HR managers must develop new methods to assess and validate skills, which may not be as straightforward as verifying educational qualifications.

Reevaluating job descriptions

HR managers need to reevaluate and possibly rewrite job descriptions to focus on skills and competencies rather than educational requirements.

This involves a thorough understanding of the skills needed for each role and the ability to communicate those requirements effectively in job postings.

Implementing new assessment tools

To accurately assess candidates’ skills, HR managers might need to implement new assessment tools and technologies.

These tools can range from practical tests and simulations to digital platforms that evaluate candidates’ skills through various tasks.

Training hiring managers

Hiring managers who are accustomed to evaluating candidates based on their educational background may need training to shift their focus to skills and competencies.

This includes developing an understanding of how to interpret non-traditional indicators of skill, such as projects, experiences, or online courses.

Overcoming bias

There may be inherent biases toward candidates with traditional degree qualifications. HR managers must work to overcome these biases within their teams and ensure that hiring practices are truly skills-based.

Ensuring consistency

As skills-based hiring is more qualitative than degree-based hiring, maintaining consistency in evaluation across candidates and roles can be challenging.

HR managers need to establish clear criteria and processes to ensure fairness and consistency.

Long-term integration

Successfully integrating skills-based hiring into long-term HR practices requires more than just changing job ads. It involves a cultural shift within the organization to value skills and competencies as much as, if not more than, formal education.

Measuring impact

HR managers must also develop methods to measure the impact of skills-based hiring on the organization, from the quality of hires and team performance to diversity and employee retention rates.

Things in business are fluid, as you already know. There is no one-size-fits-all approach to the skill-based hiring process. Defining whether your company needs more adaptive skill sets or the authority of a university degree is a good starting point.

The post What if skills-based hiring doesn’t work? appeared first on Recruiting Resources: How to Recruit and Hire Better.

Data-driven business decisions: the foundation for growth

Keith MacKenzie — Mon, 04 Mar 2024 16:37:31 +0000

Data is all the rage these days, with storage expected to reach 175 zettabytes by 2025. That’s 1,000,000,000,000,000,000,000 bytes. That’s an absolute lot.

That’s according to Deloitte, and emphasized by Avinash Tripathi, a leading figure in analytics who has observed that explosion of data throughout his long career. We sat down with him for an email Q&A and he had plenty of insights on this.

Currently working as VP of Analytics at the University of Phoenix, Avinash brings more than 20 years of experience in using data to inform decisions.

What he sees is a shift in the way businesses run operations. In short, we’re going data-first.

A data-first society

First off – our business communities are evolving.

“The advancements in computing and increased access to data have paved the way for the rise of technologies such as AI,” Avinash says.

“Organizations are recognizing the immense value of data, investing heavily in data infrastructure, governance, and talent.”

It’s no longer about traditional data storage restricted to limited tools and prohibitive costs of storing data. Business communities are moving forward to more modern, sophisticated analytics platforms both in the way they approach customers and employees.

“Today,” Avinash says, “the changing landscape of customer demands is pushing for data-driven approaches.”

He adds that compliance is a growing consideration in an increasingly regulated data ecosystem – necessitating a data-driven approach.

Despite the optimistic landscape, companies face practical challenges.

“Despite the investments in data-driven initiatives, research by McKinsey suggests that only a small percentage of organizations (8%) effectively scale up their analytics capabilities.”

This, however, could be an opportunity for the right organization to get ahead. Avinash reaffirms this – with a caveat.

“This underscores the need for data governance, talent development, and a strategic approach to maximize the potential of available information.”

“This underscores the need for data governance, talent development, and a strategic approach to maximize the potential of available information.”

The value of data-led management

What should companies do with all this, then?

The first step is to recognize the sheer value of vast data collections and analytical tools in today’s competitive environment. There are a number of ways how data has value for organizations:

More accurate projections of behavior

“Companies are amassing vast troves of customer information,” says Avinash. “These resources help them identify patterns and trends that may go unnoticed using traditional methods.”

A classic example is seen at Lyft, which matches drivers to customers through behavioral data – escalating its profile as a carshare service beyond the traditional taxi even back in the late 2010s.

That’s the kind of customer intent data that Avinash is referring to, where data provides a deeper understanding of customer behaviors, market trends, and operational efficiencies, enabling businesses to tailor their decisions more closely to their ideal customer’s needs and pain points.

Using data to make decisions also reduces risk in ensuring that decisions are grounded in real science – again, in the Lyft example, knowing exactly where/when a customer is looking for service is an objective advantage over pursuing the same result via sheer speculation.

“Utilizing real-time data to inform decisions has additional benefits compared to other traditional approaches. The accuracy derived from analyzing data sets it apart from relying solely on intuition and opinions.”

“Utilizing real-time data to inform decisions has additional benefits compared to other traditional approaches. The accuracy derived from analyzing data sets it apart from relying solely on intuition and opinions.”

An ever-evolving feedback loop

Companies can also gain a competitive edge when they can use historical data to refine business strategies.

“By monitoring the impact of their decisions, evaluating results, and learning from mistakes, businesses can refine their strategies for better outcomes and continuous growth.”

This continuous loop of feedback and adjustment keeps businesses competitive and adaptive to changing market dynamics, Avinash adds.

“The scalability of data-driven decision-making makes it suitable for businesses of all sizes, fostering growth and creating opportunities for improvement.”

How to use data in hiring decisions

When asked for how data can be applied in recruitment, Avinath highlighted three examples.

1. Refining recruitment practices

First, recruitment practices can be updated.

“During the hiring process, recruitment analytics can influence screening by employing skills-focused tools to sift through and assess applicants,” says Avinash.

He adds that data-driven tools like gamified assessments and simulations can support the suitability of a candidate for a role, resulting in more accurate and efficient hiring processes.

All the usual recruitment metrics, including time to hire, time to fill, cost per hire, etc., can illustrate the opportunities that leveraging data can provide in streamlining recruitment operations, Avinash says.

“Data-backed tools … can provide comprehensive analytics on candidate sourcing, engagement, and conversion rates and help optimize hiring.”

2. Planning the workforce of the future

Data analytics can also aid in future-proofing talent management – predicting potential outcomes in a company workforce that can be minimized or even eliminated using data intelligence.

“Predicting future workforce needs, finding the right talent, and effectively nurturing and retaining employees is a multifaceted and intricate challenge.”

Employee data – such as schedules, productivity and quality of work, time off and sick days, engagement survey results, exit interview feedback, compensation, collaborative tool usage, and much much more – can be analyzed using analytics tools.

This can then be turned into actionable insights to support business decisions as they relate to talent, Avinash says.

These insights can prove valuable in mitigating talent attrition and turnover, looming skills gaps, and losses in productivity.

3. Establishing a robust talent pipeline

Data also provides objective criteria for decisions to develop and promote your team members.

“Analytics can help pinpoint employees using measurable indicators,” Avinash tells us. “It can also play a role in cultivating talent pipelines by analyzing employee performance metrics.”

This underscores the fairness and objectivity that data-driven criteria bring to advancement decisions, reducing risks associated with bias – bias being a growing concern in today’s working world.

This highlights another benefit of talent data analytics: progress in diversity, equity, and inclusion.

“Recognizing and appreciating diversity and inclusivity is crucial when it comes to making decisions based on data,” Avinash says.

“Prioritizing fairness and inclusivity in data-driven processes for all employees helps create a positive workplace environment. Companies must recognize the limitations of data and ensure they integrate insights to prevent oversimplification.”

The risks of relying on data

The movie “Moneyball” is based on the true story of a baseball manager who switched to a data-first approach in building his team. As Brad Pitt’s character says in one scene: “His on-base percentage is all we’re looking at now.”

Data can provide a reliably objective foundation for employer decision-making, but does not consider the vast range of nuances and intangibles that an employee can bring to the table.

As such, Avinash warns against overreliance on the numbers especially in today’s workplaces which are more multifaceted than the game of baseball.

“Employees are much more than just statistics, aren’t they?” he asks. “Relying solely on a fixed set of metrics for evaluation has its limitations.”

In other words, soft skills are undervalued.

“Characteristics such as ethics and integrity, collaboration, empathy, resilience, and adaptability are essential but frequently difficult to accurately quantify.”

Avinash emphasizes a balanced approach that appreciates both tangible and intangible contributions.

“Neglecting these [intangible] traits could result in underestimating the true worth of an employee.”

A fine balance between human and machine

Many employers are cognizant of the need for balance. According to Workable’s poll on AI in Hiring & Work, 15% of hiring managers who use AI still take a fully human approach and 57% adopt a mostly human approach to that crucial final hiring decision.

“While data is valuable it is essential to remember that it is one piece of the puzzle, in understanding and managing individuals,” says Avinash, who notes that the reliance on data-first insights versus human expertise really depends on the situation.

Which begs the question: how do you know which situation calls for data and which calls for human involvement?

“Data analysis is preferred for operational tasks and decisions because it helps reduce risks and uncertainties, such as sales forecasts, staffing, and more,” says Avinash, who says that these can be high-impact decisions and should absolutely be grounded in data.

On the other hand, humans are still the experts at managing the human component of business or establishing overall strategy.

“For decisions that require strategic foresight, or a grasp of human capital, experience and intuition hold immense value,” says Avinash. “This is particularly evident in areas like employee relations and the voice of the customer.”

This means an ideally symbiotic relationship between data-driven methodologies and human insights, highlighting the importance of leveraging both to achieve comprehensive and fair outcomes in a data-driven world.

Data, data, everywhere – and not a drop to waste

Avinash isn’t just a self-proclaimed data expert – his resume includes overseeing data science, marketing analytics, and yes, AI, at the University of Phoenix. He also holds board member positions at Fast Company and at Evanta, a Gartner company. His past roles include numerous directorial-level positions in analytics at a range of companies primarily in the education sector.

His sage advice is that companies understand the advantages of advanced data analytics and ensuring a copacetic synergy between human wisdom and data intelligence in business operations.

It’s an exciting road ahead. If 175 zettabytes of data volume is predicted for 2025, imagine what’s coming after that. And companies need to get on board if they want to stay competitive.

“As these factors continue to converge,” Avinash concludes, “making decisions based on data will unquestionably be a factor in achieving success in contemporary society.”

“As these factors continue to converge, making decisions based on data will unquestionably be a factor in achieving success in contemporary society.”

Disclaimer: The opinions and views expressed herein are solely those of Avinash Tripathi and do not necessarily reflect the views of the University of Phoenix, its affiliates, or its employees. This content is provided for informational purposes only and should not be considered advice, an endorsement or representation by University of Phoenix or any other party.

The post Data-driven business decisions: the foundation for growth appeared first on Recruiting Resources: How to Recruit and Hire Better.

AI in hiring: bias & privacy an issue for 40% of hiring teams

Keith MacKenzie — Wed, 28 Feb 2024 17:52:45 +0000

There are many positives when using AI technology in the hiring process – but let’s be real: there are drawbacks as well.

So, in our AI in Hiring & Work survey, we asked respondents what issues they’ve run into when using AI in hiring. What struck us is how spread out the responses were in comparison to other questions asked in the survey.

New report: AI in Hiring 2024

We asked 950 hiring managers how they're using AI in hiring and in the workplace. And now we have a new survey report packed with insights for you.

Get your free report now!

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That being said, however, we know the concerns around bias and privacy when using AI at work – and we’ve written extensively about both, including best practices for maintaining ethical AI usage, overcoming bias using ChatGPT, and tackling bias and privacy concerns when using AI in HR.

So it came as no surprise that bias and privacy were leading concerns in our survey dataset. Let’s go through them now.

Hiring bias

In the survey, two out of five (40%) of respondents pointed to hiring bias as a major issue when using AI in their recruitment.

Fair enough. Bias is a huge consideration when making a hiring decision in general. Technology does help in overcoming bias in some areas with anonymized screening, standardized assessments, and other features.

And it’s important to note that AI tools are often trained on existing materials and experiences, meaning it’ll aim to replicate the biases inherent in the system. So, as we’ve previously reported – AI is not at fault. Rather, the data it’s trained on is.

In this case, technology giveth and it also taketh away. However, hiring teams can overcome this challenge with the right level of human involvement and supervision, if not taking over outright.

Legal considerations

Meanwhile, 37.2% point to privacy concerns especially when handling the personal data of candidates and employees.

Perhaps overlapping is the 30.7% who highlight compliance as a focal area that’s keeping them up at night – largely due to copyright, security, and other regulated areas.

Data privacy, of course, is a major ongoing concern for employers with mounting legislation on the heels of GDPR in Europe and CCPA in California. It’s reaching a point where every government will have some form of data privacy law in place.

The big concern with AI is that hiring teams interact with external technology using sensitive candidate and employee data in what amounts to a new wild west in this age of AI. Legislation around this is sparse, although is rapidly evolving over the coming years – we’re already seeing this in the European Union’s AI Act. There’ll no doubt be more to come.

Meanwhile, an AI tool usage policy will be useful for your organization.

Talent identification

In other parts of the survey, we found the top two use cases of AI in hiring to fall in line with candidate identification – resume screening tools being used by nearly three of five (58.9%) and candidate matching tech being utilized by 43.1%.

We find that the major issues are in line with those top use cases. For instance, overemphasis on keywords (31.2%), inaccurate interpretation of soft skills (26.3%), inability to capture candidate potential (15.5%), and over-reliance on historical data (15.5%) are all popular areas of concern for hiring team members when using AI.

Despite its rapid evolution, AI and the many tools utilizing it continue to be in a relatively nascent stage. Two scenarios are likely here:

AI tools are not quite sophisticated enough to support teams in identifying top talent
Hiring team members are not quite sophisticated enough in how they’re using AI tools

It’s probably a combination of both.

The industry lens

Hiring bias is an even bigger consideration for Construction (48%), Manufacturing (45.5%) and IT / Technology / SaaS (44.5%) versus 40% overall. It’s not nearly so much of a concern for Accounting (35%).

Data privacy, on the other hand, is a major concern for Accounting / Finance (43.8% vs. 37.2% overall) and for IT / Technology / SaaS (44.9%). It’s not as high in the minds of Healthcare (29.2%) or Retail (32.8%).

Likewise, compliance is top of mind for Accounting / Finance (43.8% – 13.1 full points higher than the overall 30.7%) and IT / Technology / SaaS (39.2%), but not so much for Construction (22.7%) and Retail (22.4%).

Healthcare, meanwhile, lamented the overemphasis on keywords (41.2% vs. 31.2% overall) and Construction downplayed that impact on their own hiring processes (22.7%).

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How can AI support your RTO efforts? Check our strategy

Alexandros Pantelakis — Wed, 28 Feb 2024 15:11:14 +0000

The truth is that the Return To Office (RTO) has brought a new trend, the hybrid work model. This has emerged as the new normal, balancing the flexibility of remote work with the collaborative benefits of in-person interactions. But how long will it last?

AI supports RTO offering innovative solutions for workforce management, health monitoring, and enhancing employee experiences, making it an indispensable tool for HR professionals navigating this maze.

The value of in-person work

Understanding the preferences of employees and the perspectives of employers is crucial in shaping effective RTO strategies.

A staggering 86% of employees express a desire to work from home at least twice a week, indicating a strong preference for flexibility in their work arrangements (Deskbird, 2024).

This sentiment is echoed by the 95% of individuals who favor a return to the workplace in some capacity, preferring a hybrid model that combines the best of both worlds (Envoy, 2024).

From the employer’s standpoint, the drive towards RTO is motivated by more than just operational considerations.

A recent CNBC survey revealed that 90% of companies aim for some form of office return by the end of 2024, highlighting the widespread belief in the value of in-person work.

This is further supported by ResumeBuilder report, which found that 72% of companies with RTO policies have reported increased revenue, underscoring the perceived economic benefits of returning to the office.

However, aligning employee preferences with employer objectives requires a delicate balance.

The challenge lies in implementing this model in a way that addresses the logistical, technological, and cultural shifts necessitated by the new work landscape.

The role of AI In facilitating the RTO

AI supports RTO in various ways and can assist in fostering effective communication and collaboration, as well as supporting HR decision-making.

Create a resilient and adaptive workplace following these strategies:

Optimizing office space and resource allocation

AI’s capability to analyze workspace usage patterns is revolutionizing office space management.

By leveraging data from various sources, AI algorithms can recommend office layouts that maximize space utilization while adhering to health and safety guidelines.

This intelligent space management ensures that resources such as meeting rooms and workstations are allocated efficiently, reducing waste and enhancing employee satisfaction.

Enhancing Health and Safety Protocols

In the era of RTO, maintaining a safe workplace is paramount. AI plays a crucial role in monitoring and enforcing health and safety protocols.

AI systems can ensure compliance with health guidelines, adjusting HVAC systems to optimize air quality, and even predict potential health risks.

This proactive approach to workplace safety underscores an organization’s commitment to its employees’ well-being.

Facilitating effective communication

AI-driven communication platforms can enhance the way information is shared and received within an organization. Features like sentiment analysis and urgency detection prioritize critical communications, ensuring that important messages are conveyed efficiently.

Furthermore, AI enhances collaboration tools by suggesting relevant documents and optimizing meeting schedules, thereby streamlining project management and team collaboration.

Supporting HR decision-making with predictive analytics

AI’s impact on HR decision-making cannot be overstated. Predictive analytics provide HR professionals with valuable insights into workforce dynamics, employee engagement, and potential turnover risks.

This data-driven approach enables the identification of skill gaps and informs strategic planning for upskilling and reskilling initiatives. By leveraging AI, HR can make informed decisions that align with the organization’s strategic goals and support a successful RTO.

Personalizing the employee experience

AI’s ability to analyze individual employee data offers unprecedented opportunities for personalizing the employee experience. Tailored engagement strategies and career development paths increase employee satisfaction and retention.

AI-driven platforms can identify personalized learning opportunities and career advancements, fostering a culture of growth and development within the organization.

Enhancing security and compliance

Security and compliance are critical concerns in the RTO process. AI applications in security monitoring protect against physical and cybersecurity threats, ensuring a secure work environment.

Additionally, AI can automate compliance tracking, simplifying the management of health, safety, and employment regulations and reducing the risk of non-compliance.

All-in-one HR solution for RTO

In the journey towards a successful Return to Office (RTO), Workable stands out as an essential tool for HR professionals.

This AI-powered recruitment and HR software streamlines the hiring process, enabling efficient candidate screening and engagement for the workforce.

With Workable, workforce planning becomes strategic and data-driven, thanks to its robust analytics that forecast staffing needs and talent distribution.

Workable’s suite enhances employee engagement through targeted surveys, providing HR with actionable insights to boost morale.

Additionally, it automates administrative tasks, allowing HR teams to focus on strategic RTO initiatives.

As a comprehensive solution for RTO challenges, Workable simplifies HR operations and supports a smooth transition to hybrid or in-office work models.

The post How can AI support your RTO efforts? Check our strategy appeared first on Recruiting Resources: How to Recruit and Hire Better.

Job shadowing at work – How can it benefit your organization?

Alexandros Pantelakis — Tue, 27 Feb 2024 16:34:08 +0000

Job shadowing, contrary to its ethereal counterpart, casts a significant presence in the workplace, offering a tangible pathway for employees to explore, learn, and ultimately, illuminate their career paths with newfound knowledge and skills.

This form of on-the-job training allows employees to closely follow their more experienced colleagues, not just to observe but to engage with the day-to-day activities that drive success in various roles within an organization.

Let’s explore the positive outcomes of job shadowing and the multiple benefits—not just for the individuals involved but for the organization as a whole.

What is job shadowing?

Unlike traditional training programs that often rely on hypothetical scenarios, job shadowing grounds learning in the reality of the workplace, offering insights into the practical challenges and strategies that define various roles.

From mastering specific technical skills to understanding the broader organizational culture, job shadowing provides a unique vantage point from which employees can envision their future within the company and identify pathways for career advancement.

Through this immersive learning experience, the shadowing employees uncover the nuances of different positions, gaining insights that are seldom found in manuals or traditional training sessions.

Key benefits of job shadowing

To prove that job shadowing is a holistic approach that not only aligns individual aspirations with organizational goals but also cultivates a culture of continuous learning and collaboration, we have gathered some of the major benefits and their impact on both the organization and its employees.

For the organization

Talent development: Job shadowing is a testament to an organization’s commitment to nurturing its talent pool. By facilitating direct knowledge transfer from experienced professionals to eager learners, organizations can cultivate a workforce that is not only skilled but also aligned with the company’s goals and values.

Increased employee engagement: A survey by the Society for Human Resource Management (SHRM) in 2021 highlighted a compelling statistic: 89% of organizations with job shadowing programs reported improved employee engagement.

This underscores the role of job shadowing in fostering a sense of belonging and motivation among employees, as they feel valued and see clear opportunities for growth within the organization.

Succession planning: Job shadowing is an effective tool for preparing employees for future roles, especially in leadership positions. By understanding the complexities and responsibilities of different roles, employees are better equipped to step into these positions when the time comes, ensuring a smoother transition and continuity of operations.

Cross-functional collaboration: By exposing employees to different departments and functions, job shadowing breaks down silos and promotes a culture of collaboration. Understanding the interdependencies and challenges faced by various teams enhances cooperation and drives collective success.

For employees

Career development: Job shadowing opens the door to a world of possibilities within the organization, allowing employees to explore various career paths and identify where their interests and skills align best.

Skill acquisition: A 2022 study by the National Career Development Association (NCDA) found that 82% of participants in job shadowing programs reported feeling more confident in their career choices (NCDA: Career Development Quarterly, Volume 70, Issue 4, 2022). This boost in confidence stems from the hands-on experience and knowledge gained through direct observation and interaction, equipping employees with the skills needed to excel in their current roles and beyond.

Networking: Job shadowing naturally facilitates networking within the organization, enabling employees to build valuable relationships with colleagues across different departments. These connections can prove invaluable for career development and mentorship opportunities.

Increased job satisfaction: Understanding the broader impact of their work and seeing the potential for career advancement within the organization can significantly enhance job satisfaction among employees. Job shadowing provides a clear picture of how individual contributions fit into the larger organizational goals, fostering a sense of purpose and fulfillment.

Implementing job shadowing in your organization

The successful implementation of a job shadowing program requires careful planning, clear objectives, and a structured approach. Here’s how organizations can effectively introduce and manage job shadowing:

Planning and goal setting

Begin by defining the specific goals you aim to achieve through job shadowing. Whether it’s to enhance skill sets, improve interdepartmental understanding, or prepare employees for future roles, having clear objectives will guide the structure of your program.

Consider the needs of your workforce and the strategic goals of your organization to ensure alignment.

Selecting participants

Identify both mentors (experienced employees) and mentees (employees seeking to learn) based on their skills, career aspirations, and the goals of the job shadowing program.

It’s crucial to ensure that mentors have the capacity and interest to share their knowledge, while mentees should demonstrate a genuine curiosity and willingness to learn.

Structuring the shadowing experience

Determine the duration and format of the job shadowing experience. Some roles may require only a few days of shadowing to grasp the essentials, while others might benefit from a longer period.

Outline the activities and interactions that will take place, including observation, hands-on tasks, and feedback sessions. Providing a structured agenda helps maximize the learning experience for the mentee while minimizing disruptions to the mentor’s work.

Measuring success

Establish metrics to evaluate the effectiveness of the job shadowing program. Feedback from participants, improvements in job performance, and increased engagement levels can all serve as indicators of success.

Regularly review these metrics to identify areas for improvement and ensure the program continues to meet its objectives.

Best practices for effective job shadowing

To maximize the benefits of job shadowing, consider the following best practices:

Ensuring a good match

The compatibility between mentor and mentee is crucial for a successful job shadowing experience. Take into account personality, learning styles, and professional interests when pairing participants to ensure a productive and positive relationship.

Clear communication

Set clear expectations for both mentors and mentees regarding the goals, responsibilities, and outcomes expected from the job shadowing experience. Open lines of communication help prevent misunderstandings and ensure both parties are fully engaged in the process.

Support and resources

Provide mentors and mentees with the resources and support they need to make the most of the job shadowing experience. This may include training for mentors on how to effectively share their knowledge and resources for mentees to document and reflect on their learning.

Continuous improvement

Solicit feedback from participants after each job shadowing cycle to identify successes and areas for improvement. Use this feedback to refine and enhance the program, adapting to changing organizational needs and participant feedback.

As organizations look to the future, the implementation of job shadowing programs will be a key differentiator in attracting, developing, and retaining top talent. The challenges associated with job shadowing are not insurmountable and, with the right approach, can be turned into opportunities for further growth and development.

For HR professionals and organizational leaders, the message is clear: investing in job shadowing is investing in the future of your workforce and your organization.

The post Job shadowing at work – How can it benefit your organization? appeared first on Recruiting Resources: How to Recruit and Hire Better.

Remote work loneliness: how virtual coworking can help

Keith MacKenzie — Mon, 26 Feb 2024 16:39:38 +0000

In recent years, there has been a significant shift towards remote work. There’s a good chance you’re a part of this movement. Since the pre-COVID era, the proportion of remote workers in the US has increased from merely 5% to just over 25%.

This shift has been driven by advancements in communication technologies and pandemic-induced changes to workers’ and organizations’ preferences.

Loneliness increases in remote work

However, with the increased adoption of remote work comes new challenges for organizations and workers, particularly when it comes to feelings of isolation and a lack of community among remote workers. If you’ve been working outside of the office, either full-time or for part of the week, you likely identify with these feelings.

Remote teams often have fewer opportunities to interact and face difficulties in building camaraderie and solidarity, which are critical for workers’ happiness and satisfaction. Our team at UC Berkeley recently conducted a study on remote teams that highlights this concern.

Using empirical evidence from a one-week field experiment in India, we found that remote work eroded within-team solidarity, which led to remote teams being 75% less likely than on-site teams to ‘voice upward’ – in other words, to bring grievances to their managers.

Our findings underscore the crucial role of interpersonal interactions in fostering a sense of belonging and community within a workplace, and how the absence of these interactions can have detrimental effects on remote workers.

There’s a tech for everything

The good news is that there are solutions that can help you alleviate isolation. One compelling solution is virtual coworking, which experienced a surge in popularity during the pandemic. When engaged in virtual coworking, users join timed, quiet “coworking” sessions, often over video. These sessions enable workers to focus on independent tasks in the presence of others.

We estimate that virtual coworking platforms have collectively amassed more than 100,000 active users and 10 million sessions – pointing to the critical mass of users adopting this practice as part of their daily work structure.

Some of the major virtual coworking service providers aim to offer a community and sense of accountability to workers — especially those who may be physically distant but can cowork virtually.

One such platform we’ve been studying, called Groove, takes the community aspect one step further. During its 50-minute coworking sessions, Groove enables users to connect with each other via in-app messages. They can even build cohorts of like-minded individuals called “Orbits” that help facilitate future ‘Grooves’ together, build stronger bonds, and offer greater support over the long term.

Replicating the office environment

Interviews we conducted with remote workers point to the potential positive impacts that virtual coworking could have on individuals’ professional and personal lives.

Interviewees consistently spoke to the effectiveness of virtual coworking in acting like a pseudo-“office” environment that mirrors the camaraderie found in traditional office settings; increasing their sense of accountability and work structure, and reducing their isolation.

For example, a freelance digital marketer who started a new job abroad explains: “During the pandemic, for health-related reasons [or] timezone-related reasons … trying to connect remotely with someone was very difficult […] So, [virtual coworking] was one of my only social interactions for being in a place where I didn’t have a strong community.”

A remote financial advisor also expresses appreciation for the unique community of virtual coworkers: “These are people who will [be] vulnerable […] or honest at the beginning [of the session], ‘I’m struggling today and this is stressing me out.’”

Virtual coworkers also share camaraderie: “[It’s] nice to have accountability, … [and] to commiserate with other people doing it,” a remote data analyst told us.

Overall, working virtually with friends or even strangers seemed to provide a sense of community similar to that of an in-person work environment.

Overcoming isolation among remote workers is imperative for the sustainability of remote work in the long run. Insights from our research suggest that virtual coworking has the potential to be a transformative solution.

As remote work continues to evolve, it is essential to prioritize solutions that not only enhance individual productivity but also nurture workers’ overall happiness and satisfaction to create a fulfilling and sustainable work experience. Virtual coworking platforms can be a big help here. Try a few and see if there’s one that works best for you.

Dr. Aruna Ranganathan is an Associate Professor at UC Berkeley’s Haas School of Business. Her research combines multiple methods to understand what the future of work holds, the ways in which remote work exacerbates or alleviates pre-existing workplace inequalities, and how workers seek meaning in this new world of work.

Angela Tran, who also contributed to this article, is a Research Fellow at UC Berkeley’s Haas School of Business.

The post Remote work loneliness: how virtual coworking can help appeared first on Recruiting Resources: How to Recruit and Hire Better.

Our survey finds hiring is easier, better, faster, stronger with AI

Keith MacKenzie — Wed, 21 Feb 2024 17:32:41 +0000

We know how AI tools are being used in hiring (in short: it’s a lot, but rather concentrated in talent identification) and how much human involvement there is (in short: the machines are far from taking over).

New report: AI in Hiring 2024

We asked 950 hiring managers how they're using AI in hiring and in the workplace. And now we have a new survey report packed with insights for you.

Get your free report now!

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Now, let’s look at the benefits of introducing new tools, technologies, and tactics into the recruitment process.

According to our survey on AI in hiring, there are three distinct benefits that come to mind when looking at ways to optimize the hiring process:

the time it takes to fill a role
the time invested by the hiring team in doing so
and finally, the actual cost of the process itself.

We separated those out into three questions in our survey. Let’s look at the results for each now.

The time to fill

First, the speed of the actual hiring process – the Time to Fill – is one of the most common metrics in the recruitment playbook.

The data is resounding – 89.6% say AI has either significantly or somewhat sped up the time from a job being posted to the signing of a job offer.

Only 7.7% say it didn’t make a difference whatsoever.

A mere 1.6% say it actually slowed down the process.

The time invested in hiring

As for time invested by the hiring team in the process, the response is again resoundingly positive, with 85.3% saying it did increase it by a lot or a little.

One in nine (10.8%), however, say it made no change.

Again, a very small amount (2.7%) say AI led to teams spending more time on hiring.

The cost of the hiring process

In terms of cost, one in three (32.7%) say there are significant cost savings with the integration of AI in hiring.

Another 45.2% say there are moderate cost savings. Put together, this totals 77.9% of all respondents saying AI helped them save money in the process.

Another 15.4% say there is minimal or no change in cost savings.

The industry lens: the time to fill

Now let’s look at how the numbers differ by industry – in this case, we have seven major industries who responded to our survey.

Those in Construction (60%) and Retail (58.2%) say their Time to Fill was sped up significantly – much higher than the overall 44.2%.

IT / Technology / SaaS is tops among the seven industries when combining the “significant” or “somewhat” acceleration in Time to Fill (91.3%), just a touch higher than the overall baseline of 89.6%.

The industry lens: the time invested in hiring

In terms of reducing the time invested in the recruitment process, Construction (56%, 14 points higher than the overall) is by and far the leader in seeing significant benefit in this area.

When combining “significant” and “somewhat” answers, Construction again leads with 90.7% vs. the overall 85.3%, while Education (88.4%) and IT / Technology / SaaS (87.3%) are second and third.

Healthcare is most likely to say there’s no change (14.7%, vs. 10.8% overall), and even considering the small percentage who say they’re spending more time on hiring, 4.5% of those in Retail significantly exceeds the overall of 2.7%.

The industry lens: the cost of hiring

Regarding cost savings – again, the trend continues with 48% of Construction seeing significant savings with AI in hiring compared with 32.7% overall.

IT / Technology / SaaS also see either moderate or significant cost savings at 85.4% compared with 77.9% overall.

Education (26% compared with 15.4% overall) and Manufacturing (20.8%) see only minimal or no cost savings when using AI in hiring.

The post Our survey finds hiring is easier, better, faster, stronger with AI appeared first on Recruiting Resources: How to Recruit and Hire Better.

Reinstated SAT requirements: why hiring teams should care

Suzanne Lucas — Fri, 16 Feb 2024 22:09:18 +0000

Dartmouth College – an Ivy League School – stopped requiring SAT/ACT scores for its applicants during the pandemic. Now that there aren’t health concerns in taking the test anymore, the college decided to take a look at whether they should reinstate these standardized tests as a requirement.

The evidence told them to do so and that it was better for their goals as a school and better for the student applicants. They looked at all students’ test scores after they had been admitted and learned what the impact was.

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What on earth does this have to do with your business or hiring practices? In an era when more and more companies and state governments are removing degree requirements, why would it matter to the talent acquisition (TA) world how colleges admit students?

Many reasons, as it happens. Let’s look at Dartmouth’s evidence and break this down.

1. Personal recommendations don’t mean much

What Dartmouth learned: It turns out that personal recommendations and grades that aren’t standardized among schools weren’t as good predictors of success as standardized tests.

What TA can learn from this: It’s not what you know; it’s who you know. This is oft-repeated along with advice to candidates to “network, network, network” their way into jobs.

In addition, giving preference to people who know someone, many companies still require reference checks – not just previous employment checks.

Of course, when asking person A about candidate B, unless you know person A well, you cannot judge their credibility. If someone says, “Candidate B was so whiny and never did his work right!”, you don’t know if that is correct or if the manager was the whiny one who micromanaged.

Using skills-based hiring that can be standardized for certain positions can help avoid this recommendation bias.

2. Removing tests decreased economic diversity

What Dartmouth learned: Students from disadvantaged backgrounds didn’t submit their scores, mistakenly believing that their less-than-perfect scores would disadvantage them. The scores would have shown success in difficult situations.

The researchers who studied the impact of scores wrote, “There are hundreds of less-advantaged applicants with scores in the 1,400 range who should be submitting scores to identify themselves to admissions, but do not under test-optional policies.”

“There are hundreds of less-advantaged applicants with scores in the 1,400 range who should be submitting scores to identify themselves to admissions, but do not under test-optional policies.”

What TA can learn from this: When people think you expect perfection, they may opt-out. If you focus too much on the right connections, you’re going to miss out on people who could do a great job if given the chance.

Universities are sometimes more about connections than about what you learn. In fact, a company that specializes in helping students gain admission to top schools explicitly explains that advantage:

“[Ivy League] connections can open doors to internships, job opportunities, and partnerships in various industries.

“Ivy League alumni networks also offer a sense of exclusivity and access to unique opportunities. From alumni reunions and social events to guest lectures and panels featuring distinguished alumni, there are numerous ways for Ivy League graduates to stay engaged and connected.”

In other words, again, it’s all about who you know and not about what you can do.

The real question TA should focus on is not who recommended this person, but whether this person can do the job.

3. The right tools can help you find people you’d otherwise miss

What Dartmouth learned: The New York Times wrote about Dartmouth:

“For instance, many critics on the political left argue the tests are racially or economically biased, but Beilock said the evidence didn’t support those claims. ‘The research suggests this tool is helpful in finding students we might otherwise miss,’ she said.”

“Many critics on the political left argue the tests are racially or economically biased, but Beilock said the evidence didn’t support those claims. ‘The research suggests this tool is helpful in finding students we might otherwise miss,’ she said.”

What TA can learn from this: Perhaps standardized processes that anyone can use to apply would identify hidden talent.

Of course, candidates don’t like taking tests, and certainly not ones that require significant work. But, perhaps for positions that require specific skills rather than an application, a short skills test could be used.

The key is that you can find people who wouldn’t otherwise have a chance by moving away from subjective criteria (resumes, recommendations) and into objective criteria (skills tests).

4. Look at your real data

What Dartmouth learned: They thought that removing the test requirement would increase their diversity and it didn’t. They hope that reinstating it will increase diversity.

What TA can learn from this: Many companies want to increase diversity at all levels of the organization, but are not terribly successful at this. Take a look at your actual data. Consider the following:

How do your applicants apply?
What does your interview process look like?
What are the similar characteristics of successful employees?
How can you find candidates with these characteristics?
Do your processes help evaluate these critical skills?

If you’re willing to truly take a look at how you do things and make changes when you find that things aren’t necessarily what you thought they were, you become better off.

As Dartmouth did with admissions, experimenting with different hiring methods is a good thing, but make sure you follow up your experiments with data analysis.

That way, you’ll improve your overall talent and have the data to show it.

The post Reinstated SAT requirements: why hiring teams should care appeared first on Recruiting Resources: How to Recruit and Hire Better.

D&D work alignment charts: are you Leslie Knope or Homelander?

Keith MacKenzie — Thu, 15 Feb 2024 22:06:15 +0000

If you played Dungeons & Dragons as a kid, then you’ll love this one – we’ve taken the standard alignment chart and found nine famous characters from TV and movies who fit to each of the nine alignments.

Don’t know Dungeons & Dragons? That’s OK – in short, each of the nine categories shows the “alignment” of a specific character in this world – whether they’re good, neutral, or evil, and whether they take a lawful, neutral, or chaotic approach to their decision-making process.

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And as it happens, 2024 marks the 50-year anniversary of the original Dungeons & Dragons roleplay game, so it’s a perfect time to do this. First, we’ll describe what a worker looks like under each of the nine alignments, and then provide a specific example from TV or movies that fit that mold.

Ready? Let’s start!

1. Lawful Good

Employees who are lawful good value company policies and ethical standards. They will address challenges by adhering to established protocols and seeking fair solutions that benefit everyone. They are the dependable ones who follow rules but also ensure that actions are morally just.

Example: Leslie Knope (Parks and Recreation) – Dedicated to her community, always striving to do the right thing within the framework of rules.

2. Neutral Good

Neutral good employees focus on the well-being of their colleagues and the company. They adapt to changes flexibly, aiming to do what’s best for the greatest number of people, even if it means bending some rules or creating new ones.

Example: Jim Halpert (The Office) – Aims to do good in a general sense, often without being overly concerned with strict rules or rebelling against them.

3. Chaotic Good

Workers who fall into the chaotic good category prioritize innovation and positive outcomes over traditional methods. When facing challenges, they might disregard standard procedures in favor of creative or unconventional solutions that benefit the team or customers, even if it means challenging authority.

Example: Eleven (Stranger Things) – Uses her powers to protect her friends and fight against evil forces, often breaking rules and defying authorities to do what she believes is right.

4. Lawful Neutral

Lawful neutral individuals are the enforcers of company policies and traditions. They approach workplace changes with a focus on maintaining order and structure, adhering to rules and systems even if it means slower adaptation to new challenges.

Example: Mando (The Mandalorian) – Follows a strict code as a bounty hunter, showing commitment to his tasks while often remaining emotionally detached from the broader moral implications.

5. True Neutral

Employees with a true neutral alignment might strive to maintain balance. They can be seen as pragmatists who adapt to new situations while trying to maintain a balance between different approaches, without strong bias toward order or innovation.

Example: Dr. Gregory House (House M.D.) – Focuses on solving medical cases, balancing his genius and cynicism, often indifferent to good or evil, law or chaos.

6. Chaotic Neutral

The chaotic neutral workers value their independence and may resist changes that impose more structure or rules. In responding to challenges, they prioritize personal freedom and may pursue novel solutions, regardless of whether these align with company policies or goals.

Example: Jack Sparrow (Pirates of the Caribbean) – Prioritizes his freedom and self-interest, navigating through life with a flexible moral compass, often causing chaos around him to achieve his goals.

7. Lawful Evil

Employees who fall into the lawful evil bucket might use the company’s structures and rules to advance their own interests, even at the expense of others. They are adept at navigating bureaucracy and might exploit systems during times of change for personal gain.

Example: Gus Fring (Breaking Bad) – A drug lord who masquerades as a legitimate business owner, Gus uses the existing legal and social structures to his advantage, meticulously planning his moves to maintain his drug empire while presenting a facade of respectability.

8. Neutral Evil

Focused on their own advancement, neutral evil employees will use whatever means – order or chaos – to benefit themselves. During times of change, they are likely to take advantage of confusion or weakened structures to further their own ends.

Example: Thomas Shelby (Peaky Blinders) – As the cunning leader of the Peaky Blinders gang, Thomas Shelby is focused on advancing his family’s and his own status by any means necessary. He navigates between legality and criminality, using both order and chaos to achieve his ambitions, showing little regard for whom he hurts in the process.

9. Chaotic Evil

And finally – chaotic evil employees may actively disrupt processes and resist change, not for any ideological reason but to create disorder or advance their own agenda. They might sabotage new initiatives or spread dissent, caring little for the consequences to the company or colleagues.

Example: Homelander (The Boys) – Presents a facade of a hero, but his actions are driven by selfish desires and a need for power, often resorting to violence and manipulation to achieve his goals, with little regard for the consequences to others.

Agree, disagree? Tell us!

We’ve traversed the spectrum from the steadfastly ethical to the chaotically self-serving, each illustrated with iconic characters from TV and movies.

This is all a reminder that, just as in the worlds of TV, movies, and role-playing games, our professional environments are composed of a wide range of characters, each contributing to the story in their own unique way.

What do you think? Should it be someone else? Send us your thoughts to content@workable.com with “D&D” in the subject heading.

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72% of hiring managers don’t trust AI to make hiring decisions

Keith MacKenzie — Wed, 14 Feb 2024 19:37:53 +0000

The acronym “GIGO” – or more elaborately: Garbage In, Garbage Out – exists for a reason. It’s the suggestion that a machine (albeit a little less evolved than an AI-driven machine) will only do exactly what you tell it to do.

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In other words, if it fails, or doesn’t deliver the results you intended, you’re at fault – because you were the one giving the orders to the machine..

This mindset is still relevant in today’s hiring landscape, and begs the question: how much do humans need to be involved in the use of AI in the hiring process?

Can you just push a button and let AI work its magic, and presto, you’ve got a new hire? “You will act as my hiring manager. You will look at this list of candidates and tell me to hire the best one based on their ability to do the job as outlined in the job description I have provided you with.”

That’s a fair prompt right there – and ChatGPT will respond accordingly if you give it the information it needs to make that hiring decision.

But maybe the question is better phrased as: do you use AI to help in the evaluation stages but not at all in the selection process?

The human-AI seesaw

Note that we’re not asking how much AI is being used or how much humans are involved in the entire process – we already know that to some extent above. Rather, where is the fine line between human and machine in that final decision – to hire?

Not a lot of trust is placed in AI in that case, it turns out. More than one in seven respondents (15.3%) say their choice of candidate continues to be a fully human decision, while an additional 56.8% say it’s mostly human, with AI merely as a supportive tool.

More than one in five (21.1%) maintain an equal balance between the two.

And for those letting AI drive decisions? Only 6.7% lean more towards (or rely entirely on) AI-driven recommendations when making hiring decisions.

The industry lens

IT / Technology / SaaS (75.8% vs. 72.1% overall) and Education (74%) lead the pack in terms of leaning towards human judgment.

Accounting (11.4% vs. 6.7% overall) and Education (9.2%) are more likely than the overall average to lean towards AI recommendations.

Accounting, in fact, is more than five times as likely (3.8% vs. 0.7% overall) to rely solely on AI recommendations.

Retail (31.3% vs. 21.1% overall) and Construction (29.3%) are most likely to put equal weight on human and AI when making that important final decision in hiring.

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Learning & development plans: value, impact, best practices

Keith MacKenzie — Tue, 13 Feb 2024 22:15:39 +0000

So what does meaningful recognition look like? One valuable way to express appreciation is by showing an interest in your employees’ professional development.

The value of employee learning and development

The impact of employee learning and development

The list of benefits that organizations gain from facilitating employee learning and development is long and broad, but almost always begins with improved morale.

As mentioned above, investing in an employee’s development communicates they are a valued part of the organization – a message that can dramatically improve employee satisfaction.

The best approach to creating or enhancing L&D

Individual interviews can also be used to create personalized development plans for employees by identifying their career goals as well as any skills gaps that need to be bridged to meet those goals.

As programs are developed, organizations should acknowledge that the best learning is not a “one-size-fits-all” endeavor.

Ultimately, they result in a workforce that is more engaged, more confident, and more equipped to meet the shifting needs of today’s rapidly evolving business landscape.

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Developing a future-proof HR strategy to align with trends

Keith MacKenzie — Mon, 23 Oct 2023 18:26:12 +0000

Developing future-proof HR strategies for today’s rapidly changing workplace is not easy. Employee expectations, regulatory requirements, and HR best practices are constantly evolving.

Now, more than ever, anticipating the future and addressing its needs feel like Herculean goals.

Taking up the challenge, however, can deliver huge benefits to any organization. An HR strategy that aligns with the current state of the workplace helps organizations attract top talent, enhance employee engagement, and optimize overall effectiveness.

There are steps you can take to extend the life and improve the impact of your HR efforts. They are:

1. Stay updated on emerging trends

A commitment to tracking the evolution of the workplace is a critical component of a future-proof HR strategy. The sooner HR teams can identify and understand emerging trends, the better they will be able to provide meaningful direction and support to the organizations they serve.

Flexible work arrangements are an example of a major workplace trend that has recently emerged, as reports show that nearly 90% of employees are choosing flexible arrangements, such as remote and hybrid work, when it is available to them.

Another recent survey found that 97% of employees desire some form of remote work. A future-proof HR strategy must take into account the expectations employees now have for flexible work arrangements.

AI is a hot trend now

Artificial intelligence is another topic a future-proof HR strategy should address. HR teams should be leading the conversation with internal stakeholders like Legal and IT to develop guidelines on AI use in the workplace.

Employees are using AI tools – whether their managers realize it or not – and need guidelines or at least guardrails. Any ambiguity surrounding AI use could lead to a variety of internal and external challenges, including data privacy concerns, increased vulnerability to cyber attacks, and AI-driven biases. HR strategies should include the development and deployment of a policy on the use of AI in the workplace (template here) – as well as employee training.

New trends surface anytime, anywhere

When tracking trends, HR teams should remember to pay attention to both internal and external trends, as it is vital for HR policies to align with overarching business goals and plans for future development.

For example, succession planning is a critical element of a future-proof HR strategy for organizations that have reached certain stages of their development cycle. Creating and resourcing a talent pipeline to support projects in development is another element that may be necessary.

2. Stay flexible

Fostering flexibility is central to future-proofing, but tracking emerging trends can only ever partially prepare an organization for the future. To address the unexpected, organizations must take steps to increase flexibility and adaptability.

Prioritizing employee wellbeing programs is one way to improve an organization’s flexibility. The healthier a workforce is, the easier it is to adapt to new challenges. By including employee wellbeing in HR strategies, organizations can better help their employees become physically, mentally, emotionally, and financially ready for challenges the future may bring.

Strategies that prioritize learning and development also help equip organizations for the future. Ideally, learning and development strategies will strive to make continuous learning part of the organization’s DNA, encouraging employees to engage in an ongoing cycle of exploration and growth.

3. Stay engaged

It is also important for organizations to acknowledge that the best HR strategies are those that make an impact. If something is not working now, it won’t help the organization effectively address future challenges.

To ensure strategies are effective, HR teams can draw upon workplace analytics derived from a variety of data sources, including feedback from employees. This provides insights into workforce trends, employee engagement, and retention rates.

Armed with these analytics, HR teams can use data-driven decision-making to improve the effectiveness of HR initiatives and increase their ability to drive future success.

Developing future-proof HR strategies should be a goal for every organization. Tracking emerging trends and staying flexible allows organizations to ensure their strategies are addressing the present realities of the workplace as they evolve in real time.

By staying engaged with the impact strategies they implement, organizations can better ensure their chances of achieving optimal results.

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AI has a positive impact on job creation, and we have proof of it

Alexandros Pantelakis — Fri, 09 Feb 2024 13:35:27 +0000

It’s about time to to shed light on the optimistic approach to AI and job creation, countering the fears of job loss with evidence and projections that highlight AI’s potential to generate new employment opportunities, enhance productivity, and drive economic growth.

By examining historical precedents, current trends, and future projections, we will explore how AI is not just a disruptor but a catalyst for job creation, requiring a shift in skills and adaptation from the workforce.

Before we proceed, if you feel curious about the extent to which AI companies utilize technology, we recommend referring to our recently published AI in hiring report.

Personal computer was a job killer back in the day

The fear that technology will render human labor obsolete is not new. Each technological revolution, from the Industrial Revolution to the internet boom, has been met with apprehension about the future of work.

Yet, history has consistently shown that while technology can displace certain jobs, it also creates new opportunities and industries.

For instance, the introduction of the personal computer, once feared to be a job killer, has instead expanded employment in a wide range of fields, from software development to digital marketing.

A study by Atkinson and Wu (2017) highlights how the automation of agriculture led to a significant shift in employment towards manufacturing and services, ultimately creating more jobs than were lost.

Similarly, the digital revolution of the late 20th and early 21st centuries has given rise to entirely new sectors such as e-commerce, digital content creation, and cybersecurity, further illustrating the dynamic nature of technological progress and its capacity to generate employment.

These historical examples underscore a crucial lesson: Technological advancement does not spell the end of work – nor the world – but rather, it transforms it.

As we stand on the brink of the AI revolution, it is essential to view AI not as a harbinger of joblessness but as the next step in the evolution of work, with the potential to create new industries and redefine existing ones.

AI’s impact on job creation: the evidence

Contrary to the dystopian view of AI-induced unemployment, a growing body of research suggests that AI can significantly contribute to job creation and economic growth.

Generative AI has the potential to significantly boost productivity and contribute trillions of dollars to the global economy. McKinsey Global Institute research suggests that it could add $2.6 trillion to $4.4 trillion annually across 63 analyzed use cases, increasing the impact of all AI by 15 to 40 percent.

In the context of China, a recent study published in Nature Communications by Yang Shen & Xiuwu Zhang provides empirical evidence that the adoption of industrial robots has increased employment in Chinese enterprises.

Furthermore, the concept of virtual agglomeration, facilitated by digital technologies, has emerged as a significant driver of job creation, enabling new forms of business models and employment opportunities in the digital economy.

Moreover, the World Economic Forum predicts that by 2028, AI and automation will create 69 million new jobs worldwide, leading to a net reduction of 2% in overall jobs. This slight reduction is subject to change as technology evolves driving the economy to new heights.

This economic boost is expected to come from a combination of labor substitution, enhanced innovation in products and services, and the creation of new demand for AI-related jobs.

These findings highlight the multifaceted impact of AI on the job market, demonstrating its potential to not only automate tasks but also to create new job categories, enhance the quality of existing jobs, and drive economic growth.

Let’s take a look at this Tedx talk by Rutika Muchhala, a pioneer in the technology space, who supports the idea of adapting to the new era by enhancing our skills and shares some occupations that may diminish in the future:

From repetition to innovation

The narrative of AI-induced job displacement often focuses on roles characterized by repetitive and predictable tasks, which are indeed susceptible to automation.

However, this perspective overlooks the broader trend of workforce transformation towards roles that demand innovation, creativity, and emotional intelligence—skills that AI cannot easily replicate.

For instance, the emergence of technology in HR has streamlined administrative tasks, sourcing, and hiring the best people. However, it has also created a need for human professionals in areas that demand strategic thinking and interpersonal skills, such as talent management and employee engagement.

The rise of AI in customer service has automated routine inquiries, yet it has simultaneously increased the demand for human workers in roles that require nuanced understanding and empathy, such as handling complex customer issues or providing personalized services.

The healthcare sector provides a compelling example of this transition. AI technologies have automated administrative tasks and data analysis, allowing healthcare professionals to dedicate more time to patient care and complex medical decision-making.

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Skills for the AI era

As the job market evolves in response to AI advancements, the demand for certain skills will rise.

Technical skills related to:

AI development
data analysis
and cybersecurity

…will be in high demand, as will soft skills such as:

critical thinking
creativity
interpersonal communication

The ability to work alongside AI, leveraging its capabilities to enhance human productivity and creativity, will become a valuable asset.

Educational institutions and training programs are beginning to adapt to this new reality, emphasizing STEM education, coding, and data literacy, alongside critical soft skills.

For example, the Massachusetts Institute of Technology (MIT) has introduced the MIT Stephen A. Schwarzman College of Computing, which integrates computer science and AI education with other academic disciplines, preparing students for a future where AI is ubiquitous across all fields of study and work.

Furthermore, lifelong learning and continuous skill development will become crucial for workers aiming to stay relevant in an AI-driven job market. Many educational platforms offer AI and machine learning courses, providing accessible pathways for individuals to acquire the skills needed for the jobs of tomorrow.

Policy and organizational strategies for an AI-positive future

To maximize the positive impact of AI on the job market, policymakers and business leaders must implement strategies that support workforce transitions and skill development.

Governments can play a pivotal role by investing in education and training programs that are aligned with the needs of an AI-driven economy, providing incentives for businesses to retrain their employees, and developing social safety nets for those displaced by automation.

Organizations, on their part, need to prioritize the reskilling and upskilling of their employees, fostering a culture of continuous learning and adaptability.

HR departments will be at the forefront of this transformation, identifying skill gaps, and facilitating training programs that prepare workers for new roles within the AI-enhanced workplace.

Also, HR might provide specific AI tool usage policies to employees so there is a framework of actions and limitations.

Partnerships between the public sector, private sector, and educational institutions can also drive innovation in workforce development.

For instance, IBM’s P-TECH model offers a pathway from high school to industry, combining education in STEM fields with work experience and mentorship, preparing students for high-demand jobs in technology sectors, including those involving AI.

The bottom line

The journey through the evolving landscape of artificial intelligence and its impact on the job market reveals a narrative far more optimistic than the prevailing discourse of doom and displacement.

For individuals, the imperative is clear: embrace lifelong learning, adaptability, and the continuous development of both technical and soft skills.

For organizations and HR professionals, the challenge is to foster an environment that prioritizes reskilling, upskilling, and a culture of innovation.

And for policymakers, the task is to implement strategies that facilitate smooth transitions for workers, invest in education and training systems aligned with the future job market, and ensure that the benefits of AI are broadly shared across society.

The post AI has a positive impact on job creation, and we have proof of it appeared first on Recruiting Resources: How to Recruit and Hire Better.

Two-thirds of hiring team members use AI – but how?

Keith MacKenzie — Wed, 07 Feb 2024 23:18:41 +0000

AI, of course, rocked our world. But for those of you who hire and employ, let’s understand what’s going on in AI in hiring.

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The first – and most basic – question we asked of recent hiring team members in our AI in Hiring & Work survey is simply: when hiring, did you use some form of AI when doing so?

Nearly two in three respondents (62.5%) said yes.

That 62.5% of respondents brings us to a total of 950 hiring team members who have:

1) hired within the past year
2) used some form of AI in the hiring process

This gives us a rich opportunity to get deeper in this area.

The use cases of AI in hiring

First off, we asked respondents to choose three items from a comprehensive list of potential use cases of AI in hiring. Two major purposes for AI in hiring stood out: identifying potential talent, and optimizing the hiring process.

Talent identification

Respondents told us that AI is most used as a tool to help identify the right kind of candidates in the overall applicant pool. In other words, out of the entire pool, they’re using AI to extract the good ones worthy of a deeper evaluation.

Resume screening (58.9%) and candidate matching (43.1%) were by and far the top two most popular use cases for AI in recruitment.

But interestingly, only 8% of hiring team members used AI to source candidates – even though there are many tools out there that can do so, such as Workable’s AI Recruiter technology.

Logistical processes

As you work down the list of how AI is being used in hiring processes in the US and UK, the purpose becomes more logistics focused.

In other words, speeding up the overall process, freeing up bandwidth, and reducing bottlenecks in the hiring team – and AI supports the optimization and automation of steps with those goals in mind.

For instance, interview scheduling (37.6%), assessments (19.9%), and background checks (16.4%) are the third, fourth, and seventh most popular items in the list of 11 in total.

Compensation analysis (6.7%) and diversity analytics (6.6%) are the least popular items.

The industry lens

Not all hiring teams are the same, obviously – especially when looking through industry lenses.

Where resume screening leads the way in terms of what AI is being used for in the hiring process, it’s even more so for those in Accounting / Finance, where seven out of 10 hiring team members (70%) use AI in resume screening. That’s a full 11.1 points above the overall baseline of 58.9%.

That sector, however, is also less likely to use AI for candidate matching (36.3%) than all respondents (43.1%).

Meanwhile, Manufacturing (51.9%) and Retail (52.2%) are less likely to use resume screening. They are, however, much more likely than the overall to use candidate matching technologies (54.5% and 50.7% respectively, vs. 43.1% overall).

AI in video interviews is more popular with those in IT / Technology / SaaS (26.3% vs. 19.4% overall) and less so in Healthcare (12.7%) and Retail (13.4%).

When it comes to AI in assessments, Education is far more likely to use AI (29.9% vs. 19.9% overall) and Construction less so (13.3%).

There’s a lot more, of course. Download your free copy of the AI hiring and work survey now!

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Hiring managers: what’s your working relationship with AI?

Keith MacKenzie — Wed, 31 Jan 2024 14:15:47 +0000

In 2023, AI didn’t just nudge into everyday life – it outright barged into the global landscape, disrupting foundational rules and redefining the way many of us work. The term ‘augmented workforce’ is climbing in prominence, and it’s worth including AI in conversations about ‘hybrid’ work since it involves the hybridization of human and machine. So to speak.

New report: AI in Hiring 2024

We asked 950 hiring managers how they're using AI in hiring and in the workplace. And now we have a new survey report packed with insights for you.

Get your free report now!

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The march of AI, sparked by the rise of ChatGPT into the popular lexicon in December 2022, has stirred feelings of curiosity (What is this that stands before me? How can it help me?) and caution (Will this become sentient? Will it take my job?).

That’s especially so in the workplace. We at Workable are diving right in – our software is already evolving to exhibit robust AI utility in its hiring and management capabilities to support your day-to-day work.

A new survey – to understand AI @ work

And as authorities in this arena, we understand that to truly grasp the extent and impact of AI,we must turn to those at its forefront – the people and industries it serves.

We want to unravel AI’s role at work, with hiring at the center of that focus. This is a journey into the heart of modern hiring and a finger on the pulse of the working environment that’s seen so much transformation since early 2020.

To collect our data, we surveyed 950 employees in the US and the UK across a wide range of sectors and functions. Seven key industries stand out, each with its own ecosystem impacted by AI:

Accounting/Finance: Precision meets prediction in this space – AI and its analytical potential can evolve the necessity of financial accuracy into strategic foresight.
IT/Technology/SaaS: The foundational garden from which AI sprouts – and itself a landscape that’s being reshaped by its own inventions.
Education: Learning and growth requires guidance and mentorship in the human, and is boosted by AI’s analytical powers.
Construction: Long evolved beyond wood and nails and hammers, the physical world of construction is increasingly built through digital precision and optimization.
Manufacturing: Machines are the foundation of manufacturing – AI orchestrates a symphony of physical technology with intelligent development.
Healthcare: A critical sector on which the literal health of society depends, this area is rife with compliance requirements, privacy considerations, and processes that are all augmented with digital transformation.
Retail: Experiencing AI’s transformation from inventory management to personalized shopping experiences and omnichannel presentation.

The resultant dataset from our 28-question survey of 950 provides numerous opportunities to understand all this at a deeper level. Let’s dive into the results together.

Sorry? You want to get the highlights right now? Sure. Major takeaways include the following:

If you’re looking to utilize AI in hiring, you’re in good company. A significant majority (62.5%) of respondents used some form of AI in hiring processes last year.
There are clear benefits to using AI in recruitment. A vast majority report that AI has sped up the hiring process (89.6%) and reduced the time (85.3%) and cost (77.9%) spent on hiring.
When using AI, don’t dismiss the human touch. Human decision-making dominates final hiring choices, with 15.3% relying solely on human judgment and 56.8% using AI only as a supportive tool.
IDing ideal candidates is a popular use of AI. The most common uses of AI in recruitment are resume screening (58.9%) and candidate matching (43.1%).
Different industries do AI hiring differently. For example, resume screening is predominantly used in Accounting / Finance, while IT / Technology / SaaS sectors leverage AI more in video interviews.
If you can mitigate bias, privacy and compliance challenges with AI, all the better. Common reported issues of AI in hiring include hiring bias (40%), privacy concerns (37.2%), and compliance challenges (30.7%).
Don’t expect AI to solve all your woes. A majority say AI boosts their productivity (75.7%), but challenges persist – including tech difficulties (46.2%) and employee resistance (40.5%).
Job security is a huge concern. A significant proportion of employees (68.1%) express concerns about AI impacting job security, and 57.2% say they did see jobs being displaced due to AI.

But the outlook is positive. The majority foresee an increase in the importance and usage of AI in hiring and overall workplace functions.

There’s a lot more, of course. Download your free copy of the AI hiring and work survey now!

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Employee layoffs: HR lessons from Cloudflare’s incident

Alexandros Pantelakis — Tue, 30 Jan 2024 15:48:10 +0000

A nine-minute TikTok video posted by Brittany Pietsch recently made waves, providing an unfiltered glimpse into the often murky waters of employee layoffs.

The tech industry has witnessed a significant increase in layoffs over the past few years. According to Layoffs.fyi, in 2022, a total of 1,064 tech companies implemented layoffs, leading to the termination of 164,969 tech employees.

In 2023, the number of tech companies conducting layoffs rose to 1,186, resulting in 262,582 tech employees losing their jobs.

What really happened?

Pietsch, a former Cloudflare employee, recorded herself during a virtual meeting with HR representatives named Rosie and Dom, seeking answers about her abrupt termination. Despite her inquiries, the HR duo offered scant explanation, citing performance expectations not being met.

@brittanypeachhh Original creator reposting: brittany peach cloudflare layoff. When you know you’re about to get laid off so you film it :) this was traumatizing honestly lmao #cloudflare #techlayoffs #tech #layoff ♬ original sound – Brittany Pietsch

Pietsch, in a mix of frustration and confusion, countered their claims, mentioning her high activity levels and positive feedback from her manager.

She pressed for transparency, stating, “If that’s the real answer, I would rather just you tell me that instead of making up some bull**it and telling me that right before I lose my job from someone that I’ve never met before.”

Cloudflare CEO, Matthew Prince, responded to the video, admitting the discomfort it caused him and acknowledging the imperfections in the layoff process. He stressed the importance of managers being involved and HR not being entirely outsourced for such delicate matters.

We fired ~40 sales people out of over 1,500 in our go to market org. That’s a normal quarter. When we’re doing performance management right, we can often tell within 3 months or less of a sales hire, even during the holidays, whether they’re going to be successful or not. Sadly,…

— Matthew Prince (@eastdakota) January 12, 2024

By publicly addressing the issue and openly admitting areas of weakness, Cloudflare signals a willingness to learn and grow from its mistakes.

The incident has sparked discussions about the role of HR professionals and the need for improved practices in terms of communication during employee layoffs.

@mollybmcpherson Breaking down Cloudflare’s HR crisis response: A deep dive into the aftermath of their viral termination call. #PublicRelations #cloudflare #CrisisCommunication #prlady #prcrisis #chrispaul #HRStrategy #brittany #ceo #corporatecommunication ♬ original sound – Molly McPherson | PR

What HR could do better?

In the aftermath of the Cloudflare incident, the spotlight now turns toward the broader HR landscape, urging professionals to reflect on what could be done better in such challenging circumstances.

The lack of transparent communication, evident in the vague performance-related explanation provided, highlights a need for HR to reevaluate their communication strategies during layoffs.

Action items include:

Transparent communication protocols: Establish clear guidelines for HR representatives to communicate the reasons for layoffs openly and honestly, avoiding vague or generic statements.

Employee-centric approach: Prioritize an employee-centric approach by ensuring that the reasons behind layoffs are conveyed in a way that fosters understanding and allows for questions and clarifications.

Involvement of managers in communication: Enforce policies that mandate the direct involvement of managers in conveying termination decisions, leveraging their existing relationships and understanding of individual performances.

Addressing emotional impact: Develop training programs for HR professionals and managers to navigate emotional conversations during layoffs, acknowledging the potential trauma and offering appropriate support.

The manager’s role and the need of leadership skills

While HR professionals play a vital role in orchestrating layoffs, the manager’s involvement is equally pivotal. Layoffs should not be a surprise for employees, and managers, being more familiar with their team’s dynamics, must actively participate in the process.

Leadership skills come to the forefront during layoffs. Sensitivity, clear communication, and providing support are key elements that define a successful manager in these situations.

It’s not merely about delivering the news but about doing so with empathy and understanding, recognizing the impact it has on the departing employee as well as those remaining.

Building strong relationships between managers and employees becomes a preventive measure against surprises during layoffs.

When there is open communication, employees are more likely to be aware of their performance levels and potential areas for improvement.

A supportive manager can guide employees in navigating challenges, creating a workplace culture that values growth and continuous improvement.

In the context of Cloudflare, the absence of a clear and empathetic communication channel between managers and employees contributed to the sense of shock and dismay.

The incident underscores the need for HR professionals to champion effective leadership and communication at all levels of the organizational hierarchy.

Turning challenges into opportunities

Within the challenges exposed by the Cloudflare incident lies a roadmap for HR professionals to transform their practices. Proactive measures to turn these challenges into opportunities include:

Feedback integration: Establish regular feedback loops to gather insights from employees about their experiences during layoffs, allowing for continuous improvement in HR practices.

Cultivating a supportive culture: Foster a workplace culture that prioritizes support, empathy, and open communication, creating an environment where employees feel safe to discuss concerns about job security.

Continuous evaluation of layoff processes: Regularly review and refine layoff processes, incorporating lessons learned from incidents like Cloudflare to ensure a more humane and transparent approach in the future.

We need to talk about Brittany, and Gen Z

Brittany Pietsch, 27 years old, showcased notable soft skills in her response to the layoff at Cloudflare.

Her effective communication skills were evident as she articulated her thoughts clearly and sought transparent answers during the emotionally charged conversation.

Demonstrating emotional intelligence, Pietsch expressed the emotional toll of sudden layoffs, highlighting her awareness of both her own and others’ feelings.

Assertiveness played a key role as she actively questioned the HR representatives, pushing for transparency and genuine reasons behind her termination.

Her resilience was evident in facing adversity with strength and determination.

In the face of Pietch, many people from Gen Z saw a representative of their needs.

Gen Z individuals are motivated by a strong desire for purpose and fulfillment, seeking to make a positive impact in their organizations and society as a whole.

They prioritize corporate social responsibility (CSR) and value the connection between their work and ethical considerations.

By 2025, HR departments and managers must be prepared because Gen Z is projected to constitute 27% of the overall workforce. If your answer to this is “yes, and?” then unless you are Ariana Grande, you have to take action.

As HR professionals continue to refine their practices, the Cloudflare incident serves as a catalyst for positive change, urging organizations to prioritize the well-being of their workforce even in challenging times.

The post Employee layoffs: HR lessons from Cloudflare’s incident appeared first on Recruiting Resources: How to Recruit and Hire Better.

Job shift shock: the trend that intimidates HR professionals

Alexandros Pantelakis — Wed, 24 Jan 2024 17:31:42 +0000

Picture Hannah, an experienced marketing specialist with a track record of success, eagerly joining a renowned tech firm. She joins the tech firm filled with hope, but soon encounters a wave of stress and self-doubt.

She grapples with feelings of being unprepared for the challenges ahead and questions her fit in the new environment.

This emotional turmoil is the crux of job shift shock. It’s about more than just a mismatch of expectations, it’s about the personal struggle of finding one’s footing in an unfamiliar setting.

What is job shift shock?

Job shift shock, also known as new hire’s remorse, is characterized by the psychological stress and emotional dissonance experienced by individuals transitioning into new roles.

This stress can stem from feeling unprepared, overwhelmed by new responsibilities, or a sense of cultural misfit.

It goes beyond the practical aspects of role alignment, delving into the deeper emotional and psychological challenges that come with adapting to a new job environment.

This term, while not historically labeled, has existed for decades, often manifesting as a brief period of adjustment.

However, in today’s rapidly evolving job market, job shift shock has emerged as a critical issue, impacting not just employee well-being but also organizational stability.

The roots of job shift shock can often be traced to a variety of factors: bad past experiences, misleading job descriptions, a disconnect between the company’s external image and internal reality, or a lack of transparency during the recruitment process.

72% of employees have experienced job shift shock

The relevance of job shift shock in today’s workforce cannot be overstated. In a rapidly changing job market, where the balance of power is shifting towards employees, understanding and addressing this phenomenon has become crucial for organizations.

A survey by The Muse in 2022 laid bare the extent of this issue: a significant 72% of 2,500 respondents experienced job shift shock, with 29% feeling a misalignment with both the job and the company culture.

These numbers are more than just statistics, they are a clear indication of the changing dynamics in the workplace.

In an era characterized by the ‘Great Resignation’, employees are increasingly willing to leave jobs that do not align with their expectations or values.

80% of respondents in the same survey stated it was acceptable to leave a job within six months if it failed to meet their expectations.

This growing sentiment highlights the urgent need for organizations to proactively address job shift shock, not only to retain their workforce but to foster a positive and productive work environment.

But how do the HR professionals play a pivotal role in all of this?

It’s the onboarding process that matters

Effective onboarding must be carefully planned and executed.

It should begin even before the employee steps into the office, with pre-boarding activities like sending out a welcome pack, company information, and setting clear expectations for the first few weeks. Pre-boarding and onboarding are your opportunities to avoid beating around the bush and get to the point.

Show your new employees that you are willing to have them in the company so that you can grow together.

The process should then be continued with structured orientation programs, mentorship initiatives, and regular check-ins.

By providing a clear understanding of the company’s values, expectations, and culture, the onboarding process can significantly reduce the occurrence and impact of job shift shock, ensuring a smoother transition for new hires.

Use tools so you can focus on the real value

In an era where technology is increasingly ingrained in our work lives, leveraging platforms like Workable for onboarding can be a game-changer.

Workable is not just a tool for recruitment, it’s a comprehensive platform that facilitates a seamless and engaging onboarding experience. By automating the mundane and time-consuming aspects of the onboarding process, Workable allows HR professionals and managers to focus on the human element of welcoming a new employee.

Workable’s features include customizable onboarding checklists, document management, and automated task assignments, which ensure that nothing falls through the cracks.

Additionally, Workable provides analytics and feedback tools, allowing HR teams to continuously refine their onboarding processes based on real data and employee feedback.

This technology-driven approach not only streamlines administrative tasks but also creates a more personalized and engaging experience for new hires, further reducing the risk of job shift shock.

Continuous improvement mindset

As we look towards the future, it’s clear that addressing job shift shock is integral to the broader conversation about employee engagement and retention.

The onboarding process is just the starting point of an ongoing journey of employee development and integration.

Companies need to adopt a continuous improvement mindset, seeking feedback and making regular adjustments to their onboarding and overall HR strategies.

Ultimately, the question remains: How will your organization evolve its strategies to address the ever-changing dynamics of the modern workforce and reduce the incidence of job shift shock?

The post Job shift shock: the trend that intimidates HR professionals appeared first on Recruiting Resources: How to Recruit and Hire Better.

Need a new ATS? No one cares, unless you speak their language

Rob Long — Tue, 16 Apr 2019 10:00:00 +0000

Imagine this: You’ve just come out of a big meeting where you’ve learned that your company plans to expand staff by 50% by the end of Q4. Normally, this would be an exciting step and a huge opportunity for you to really show your game.

But guess what? Your ATS (applicant tracking system) sucks. As you walk back to your desk (admittedly thankful that this long-winded meeting is finally over), you realize the nightmare that lies ahead: the crappy UIs, the broken buttons, the numerous clicks you have to endure to hire just one person – all that is about to be multiplied by 50.

And the person who has the decision-making power to bring in a new ATS just can’t be bothered, for whatever reason. The guys in IT are blocking it. Finance is slammed at the end of the quarter – that’s enough for you to not even knock on their door.

You know you’ll have to do more than give another lunchtime rant to your boss about the clunky ATS to make a switch happen. You open a new blank document to make your case. But the blank screen is as intimidating as those stern faces in Finance.

So where do you start?

To understand how to make an effective case for new software, it’s good to learn a bit from Product Marketing. That’s right, Product Marketing. This will help you understand why your boss doesn’t and, to an extent, shouldn’t give a shit that you don’t like your ATS’s clunky UI.

You’re probably familiar with the idea of “speaking someone’s language” when trying to persuade them to come around to your way of thinking. But knowing the underlying theory of why that’s important means you can make a more powerful case.

It will also help you personalize any “Convince Your Boss!” marketing collateral you’ve received from ATS vendors you’ve spoken to.

Another way to think about this is to think like a technology vendor. Vendors spend a lot of time thinking about how to sell, position, and talk about their product. This is the responsibility of Product Marketing, and it’s those folks we’ll learn a bit from now.

One of the key roles of Product Marketing is understanding a few simple ideas:

Who are the buyers of the product?
Why do the buyers start looking for the product?
What process do buyers go through when evaluating and selecting a new software like this?
What is important to the buyers?
How do we position our product to appeal to those buyers?

In some cases, only one person (“buyer”) is involved in a buying decision, but usually there are more. By and large, in Product Marketing, these buyers are categorized into three groups according to the Pragmatic Marketing Framework. Each of these groups have different priorities:

Economic Buyers

Hold the budget, sign the check
Care about costs and ROI
Request reports from the team to present to management
Not necessarily users of the product

Functional Buyers

Users of the product
Care about features and ease of use
Create reports for the boss

Technical buyers

Care a lot about security, compliance, contracts, terms and conditions, access controls, technical details, nitty-gritty of integrations with other business tools in use, etc.
Not necessarily users of the product
Often includes legal, IT, operations, finance departments

Know who your players are

Knowing which “buyer bucket” the interested players in your company fall into is essential to the success of your business case for a new ATS. Let’s take a fictional company, Albion Inc. – relatively large, and in the exact same situation as you are: getting ready for hypergrowth for the upcoming year. Let’s meet some of their staff:

Jenny

Jenny is the HR Generalist who, as part of her role, looks after recruitment. If you were at Albion, you’d probably be Jenny.

Beth

Beth, the VP of Human Resources, is Jenny’s boss. She is responsible for all aspects of HR including budget management and planning.

Alex

Alex is the Sales Director. Albion is doing well and his team is growing fast, so he’s always hiring. In this case, he’s the hiring manager.

Georgina

Georgina is the Director of Operations. She doesn’t have any responsibility for hiring, but she is responsible for the maintenance, seamless integration, and security of Albion’s internal IT and tools — in other words, Albion’s tech stack.

Know their pain points and motivations

Now, let’s look at how each of them factors into the overall decision to purchase a new applicant tracking system:

Jenny

Jenny’s the one who just got out of the aforementioned “We’re growing by 50% this year” meeting. She is, to say the least, unhappy with the ATS Albion is currently using. It’s clunky, outdated and hard to use, and it’s slowing her down. She feels like she is spending more time on admin than on recruiting.

Jenny still has to do big chunks of recruiting herself that she is sure software could be handling, such as interview scheduling or advertising on job boards.

The headache doesn’t end there: she’s also feeling overwhelmed because she cannot stay organized and spends too much time chasing hiring managers, like Alex, for feedback on candidates. She’s simply given up on trying to get them to use their ATS at all.

Beth

Jenny has brought this up several times with her boss and decision maker, Beth, without much success. Beth, whilst understanding of Jenny’s frustrations, doesn’t see – yet – how a change to the ATS can be feasible.

To some extent, Jenny is the victim of her own success. She’s made the bad software work OK up to now by using workarounds and a lot of extra sweat and tears.

But Jenny knows this current setup will no longer work with the big growth plans. She’s at the end of her tether, and, just as she should be getting excited about the growth of the company, she’s looking down the barrel of a frustrating and stressful year.

Alex

Meanwhile, around the corner, Alex isn’t happy either. He needs to hire fast and he doesn’t feel like he knows what’s happening. Where are his resumes to review? What happened to that great candidate they spoke about last week? Did Jenny even follow up with the ones that Alex referred her to?

He loves Jenny as a colleague and as a friend, but he’s always been a little tripped up by her ad-hoc approaches to the hiring process with all the workarounds and little fixes. It was fine when hiring just a couple people here and there, but 50 new people, nearly all at once? How is all that going to work?

Lining up his own interviews, the countless trips to and from Jenny’s office at the other end of the building, not to mention trying to hire people remotely? Never mind the fact he’s just been told to boost sales by 50% by EOY – he’ll have to work harder than ever to make that happen.

Georgina

And Georgina over in IT has been working hard to build a seamless integration of all the different technologies used in Albion. The current ATS was a real beast to install and implement. Educating countless people on how to use it (and how not to) took up a lot of her time.

The learning curve felt insurmountable, even for a seasoned tech veteran such as herself. Now that it’s finally in place, she’s happy and she doesn’t want to rock that boat again.

Know what type of buyer they are

Now that you know what drives the players at Albion – and what drives them crazy – let’s categorize them by type of buyer:

Economic Buyer:

Beth is Albion’s economic buyer. She holds the budget and signs the checks for software purchases in HR. She gives final approval to all this stuff. Without her say-so, no decision can be made.

Functional Buyer:

We have two functional buyers at Albion who actually use the ATS. Jenny is the main user, and Alex uses it extensively as his department’s hiring manager.

Technical Buyer:

Georgina is Albion’s technical buyer. She’s simply interested in making the software fit comfortably within the existing system, and ensuring it’s compliant with security standards. More on Georgina later.

All of those players are part of the decision to start looking for a new ATS and which ATS to select. You need to get all of them on board, and you need to know how to convince them.

For instance, as an Economic Buyer, Beth isn’t going to be convinced by Jenny’s “it’s clunky and hard to use” argument. It’s not that Beth doesn’t care — she’s probably been in Jenny’s shoes in the past — but Jenny needs to make an actual business case for a new ATS in a way that is more aligned to Beth’s professional goals and motivations, and ultimately, Albion’s.

Know how to convince them to try a new ATS

By knowing the players in each category, Jenny now knows who she must convince. To do that, Jenny needs to know their drivers, what is going to convince them to make a switch. What is it that drives Beth, Georgina and Alex?

Convince the economic buyer

So what are the drivers of Economic Buyers when it comes to recruiting software? Well, each company is different, but it mostly boils down to two factors: budget and timeline.

Staying within budget:

Do we have the budget for this?
Will the new tool be more expensive?
Will it save me money elsewhere in my budget, e.g. salaries, turnover, agency spend or advertising spend?

Staying on schedule:

Do we have the time for this?
Will implementation/learning of the new ATS delay the hiring plan?
Will the new ATS optimize and speed up the hiring process, meeting goals ahead of time?

Whether you’re simply starting a conversation about getting a new ATS, actively deciding which one to buy, or making a case for the ATS you’ve decided is the best one for the business, you want to be ready to address each of the above questions and any similar concerns on the Economic Buyer’s mind. You want Beth to sign the dotted line and be able to sleep that night. You want her to know that targets will more likely be met with the purchase of this new ATS.

Instead of anecdotal arguments, here are some of the impacts we hear about Workable from the mouths of “Economic Buyers” who were involved in selecting Workable:

“We’ve reduced our agency spend by 50%”
“We’ve increased employee referrals by 33%”
“We’re getting better quality applicants than before using Workable.”

See, no mention of ease of use. Economic buyers care about it, but it’s not the main driver in their decision making; just part of it. They simply have to balance this with other priorities that have been placed on them.

It is these reasons you need to take to your ‘Beth’ to help her understand the benefit of bringing in a new ATS in her “language”. Align your case to her goals and the strategic goals of the company. For instance, why is the existing ATS going to make it impossible to hit that 50% growth hiring plan, and why would a new tool make that possible?

Convince the functional buyer

Clearly, there’s not much convincing needed here. Jenny is the one pushing the case for a new improved ATS. You’re likely Jenny (or Alex) in this case, and you’re here because you want to press your case. So, let’s consider this part completed.

Convince the technical buyer

I mentioned earlier that we’d learn more about Georgina. And this is Georgina’s time to shine. Georgina is powerful. She can veto any software decision Jenny, Beth and Alex make – in fact, she can veto any software purchasing decision at Albion. She’s not the enemy – rather, it’s her job to make sure all the business’s tools work together nicely, are compliant and secure. If she’s not sure a new tool is secure or compliant, you’re back to the drawing board.

Georgina may not be involved in the decision to purchase a new tool, but once that decision has been made, you’ll want to make sure you know her requirements early on so you don’t get a nasty surprise just before signing a new contract. So, stop by her office to talk to her about what boxes she thinks the new software should tick.

Know that everyone cares – just about different things

Now that you have everyone on board – you, your Beth, your Alex, and your Georgina – you can write up that business case or an RFP (which will help you gather information about different recruiting solutions) and move forward in your plan to optimize the hiring process. Circle back to the start: you’re in that big meeting or in a follow-up meeting putting a concrete plan into place, and all heads turn to you when it’s time to talk about the hiring plan. You smile, because you have everyone on board for your new ATS, and you’re ready to show your game.

Shameless plug: Yes, Workable can help you meet those goals. Sign up for our demo and learn about what we can do for you. To learn all the things you need to know about an applicant tracking system and were afraid to ask, read this.

If you still have cold feet in regards to picking the right ATS for your business, this list of best applicant tracking systems in the market can help you make the right decision.

The post Need a new ATS? No one cares, unless you speak their language appeared first on Recruiting Resources: How to Recruit and Hire Better.

Ditching degree requirements for jobs – what to do instead

Suzanne Lucas — Mon, 29 Jan 2024 16:54:55 +0000

Massachusetts has joined 13 other states in removing the college degree requirement from many government jobs.

The Brookings Institute describes this move as “low-cost ways to open state hiring processes to more applicants and improve economic mobility for qualified workers who have been largely excluded from state hiring systems.”

The private sector has also begun moving in this direction as well, with companies like Walmart leading the way.

In fact, a survey from Intelligent.com found that “nearly half” of all companies plan to drop the bachelor’s degree requirement from their jobs.

Move the right people forward faster

Easily collaborate with hiring teams to evaluate applicants, gather fair and consistent feedback, check for unconscious bias, and decide who’s the best fit, all in one system.

Start evaluating candidates

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Let’s break this down and see how (or if) this affects your business.

Degree bias

A college or university degree is a simple filtering tool that businesses have used for years as a proxy measurement of knowledge, skills, and ability. If a person has a degree, you do know a few things:

Someone else determined they were smart enough to enter college (granted, some schools have open-admission policies, so depending on the school, this may not mean much.)
They have the stick-to-it-iveness to finish a four-year degree. (This is pretty valuable for young people; not so valuable for someone with a resume showing years of work experience.)
They were smart enough to graduate.

For specific degree required jobs – like accounting or engineering – it should indicate specific skills.

And while you can be an accountant but not a CPA, or an engineer but not a licensed Professional Engineer, it’s doubtful you could do the work without a degree – and in many cases, the degree and the license may be required for compliance.

With a liberal arts degree (I, myself, have two degrees in political science), the degree is a proxy for being able to write and think, but not once in my 25 years of professional work has someone asked me to explain Nietzsche’s religious philosophies and declaration that God is dead as it applies to HR.

(I got an A on my senior project about Nietzsche, by the way.)

It’s difficult to evaluate basic skills like writing and logical reasoning, and it’s easier to rely on universities to do that evaluation for companies. Plus, you don’t have to worry about choosing accurate exams for these skills; you can just check if they have finished school.

This, however, has led toward ‘degree bias’ that has been prevalent everywhere, including for baristas. You can see this bias in how AI does job descriptions.

For instance, I asked ChatGPT the following question:

Can you write a job description for the following positions for a manufacturing company with 100 people?

HR Manager

Accounts payable Manager

Shift Supervisor, manufacturing

Marketing director

Plant manager

The results came back with fairly good descriptions and the following degree requirements:

HR Manager: Degree in Human Resources or related field

Accounts Payable Manager: BS degree in Finance, Accounting or Business Administration.

Shift supervisor, manufacturing: High school diploma; degree in a technical, engineering, or relevant field will be an advantage.

Marketing director: BSc or MSc in Marketing or relevant field.

Plant manager: BS degree in Business Management, Industrial Management, Engineering, or related field

Only the shift supervisor didn’t require a degree and, even then, it still indicated that a degree would be beneficial.

Does removing the degree requirement change anything?

Removing a degree requirement certainly opens the jobs up to more people to apply but will it actually affect who gets the job?

Again, degrees are a quick proxy that hiring managers and recruiters alike may use when applicants with and without degrees apply for the position.

For example, I asked ChatGPT to evaluate two candidates. The resumes were identical, with the exception of a degree. I identified the second candidate as having a degree in Business.

When ChatGPT did the analysis it wrote:

Key Differences:

Education: The main difference lies in the educational background. Person 2 has a formal degree in Business, which may add value in terms of theoretical knowledge and business acumen.

Person 1’s Resume Lacks Education Details: If Person 1 also has a relevant degree or higher educational qualifications, this could level the playing field or even tilt it in their favor, depending on the specifics.

Recommendation:

If Educational Qualification is Important: Choose Person 2. The business degree might provide additional insights into business management, financial understanding, and strategic planning, which are valuable in a managerial role.

If Experience and Achievements are the Sole Criteria: It’s a tie. Both candidates demonstrate strong operational experience and achievements. In this case, other factors such as interpersonal skills, cultural fit, leadership style, and personal career goals should be considered in the final decision.

In today’s AI world, remember that the large language models were trained on Internet data, with a strong degree bias built in.

Incidentally, I ran the identical query in Bard, which did not reference the degree in its evaluation but did write:

While Person 1 also has a strong resume, Person 2’s overall experience, accomplishments, and leadership skills give them a slight edge. If you are looking for a manufacturing manager with a proven track record of improving efficiency, reducing costs, enhancing quality, and fostering a positive work environment, Person 2 would be a strong candidate.

Remember, the resumes were identical except for the degree, which Bard interpreted as giving Person 2 more skills.

What does this mean for your business?

Should you require degrees? It depends on your business model, of course, but consider how much is biased and how much is necessary. People with degrees will likely think they couldn’t do their jobs without the degree, introducing another layer of bias.

Take time to evaluate actual skills instead of assuming, as Bard did, that the degree automatically means additional experience.

Unless, of course, you have a desperate need for someone to discuss Nietzsche, then give me a call. I have a couple of unused degrees hanging in my office.

The post Ditching degree requirements for jobs – what to do instead appeared first on Recruiting Resources: How to Recruit and Hire Better.

Skills-based hiring: do we even need degrees for jobs now?

Alexandros Pantelakis — Fri, 26 Jan 2024 16:10:56 +0000

This shift towards skill-based hiring is reshaping how companies evaluate potential employees, emphasizing practical skills and real-world experience over formal education.

In 2024, 45% of companies are expected to eliminate bachelor’s degree requirements for some roles, continuing the trend from 2023 when 55% of employers had already done so – including WalMart.

Source: Intelligent Now

As we delve into this transformation, we explore the implications for both employers and job seekers, and the balancing act between traditional and modern hiring practices.

Skill-based hiring takes the stage

While this trend is evolving in the private sector, the governor of Massachusetts signed an executive order promoting skills-based hiring practices, highlighting the influence of this new trend on the public sector.

The order emphasizes applicants’ skills, knowledge, and abilities over educational credentials for most job postings. Degree requirements will only be included when necessary for the job. Hiring managers will also receive training and tools to implement this new strategy effectively.

Skill-based hiring represents a fundamental change in recruitment philosophy. This approach prioritizes a candidate’s specific skills and practical abilities, rather than their educational background.

According to the TestGorilla report “The State of Skills-Based Hiring 2023,” an impressive 73% of companies adopted this approach in 2023, up from 56% in 2022.

This shift is not merely a trend but a response to the changing needs of the global economy, where the ability to adapt and apply skills dynamically is increasingly valued.

The advantages of skill-based hiring are manifold.

It allows companies to tap into a broader talent pool, including self-taught experts, career changers, and those with unconventional career paths.

This method is particularly beneficial in fast-evolving sectors like technology, where specific technical skills and the ability to learn quickly are more indicative of a candidate’s potential than a traditional degree.

Furthermore, this approach aligns with the preferences of job seekers, with 86% of candidates believing that showcasing their relevant skills enhances their job prospects.

It also addresses the issue of educational inequality, providing opportunities to talented individuals who may not have had access to higher education.

Is degree-based hiring gone forever?

While skill-based hiring is on the rise, degree-based hiring maintains its relevance, especially in fields that require a solid theoretical foundation or specialized training.

Professions in medicine, law, and engineering, for instance, still heavily rely on formal educational qualifications as a baseline for competency.

This shift is driven by several factors, including the desire to diversify the workforce. A significant 70% of employers, in the TestGorilla survey, cite creating a more inclusive and diverse workforce as a primary reason for reducing degree requirements.

By doing so, they open doors to a wider array of candidates, including those from underrepresented backgrounds or with non-traditional educational paths.

Under this prism, it’s worth saying that while the trend of skill-based hiring is gaining more and more ground, the new workplace will be a place of coexistence and collaboration rather than a win-or-lose process.

Skill-based vs. degree-based hiring

The debate between skill-based and degree-based hiring is about understanding their respective strengths and how they can be strategically applied in different contexts.

The U.S. Chamber of Commerce reports that 95% of executives and HR heads say nontraditional candidates perform just as well, if not better than, degree-holders. This statistic underscores the increasing value placed on competency and versatility over formal education.

Skill-based hiring shines in industries where rapid technological advancements and evolving job roles make specific, up-to-date skills more crucial than a broad academic background.

For instance, in tech startups or digital marketing agencies, the ability to code in a new language or manage cutting-edge marketing tools is often more valuable than a degree.

On the other hand, degree-based hiring remains pivotal in professions where a comprehensive understanding of foundational theories and principles is essential.

The hybrid mode

In fields like medicine, engineering, and academia, a degree not only signifies a certain level of knowledge but also a commitment to a field of study and the ability to undertake extensive research and learning.

Employers are increasingly recognizing the value of blending these approaches.

For example, in industries like finance or business, companies might favor candidates with a relevant degree but also place significant emphasis on practical experience and skills, such as financial modeling or data analysis.

This hybrid approach allows companies to harness the strengths of both methodologies, ensuring a well-rounded and competent workforce.

Education, skills, and experience

As we look towards the future, it’s clear that the landscape of hiring is set for continued evolution. The trend towards skill-based hiring is likely to gain further momentum, driven by the rapid pace of technological change and the growing need for adaptable, skilled professionals.

This doesn’t mean that degrees will become obsolete, but rather that they will be one of many factors considered in the hiring process. The future of hiring is poised to be more holistic, taking into account a combination of education, skills, experience, and potential.

According to a report by the World Economic Forum, more than half of all workers will need reskilling by 2025 to keep up with technological advancements.

Technology will play a crucial role in shaping these future hiring practices. Advancements in AI and machine learning could lead to more sophisticated skill assessment tools, enabling employers to evaluate candidates more accurately and efficiently.

Additionally, the rise of online learning platforms and micro-credentialing will provide more opportunities for candidates to acquire and demonstrate new skills, further blurring the lines between traditional and non-traditional education paths.

The post Skills-based hiring: do we even need degrees for jobs now? appeared first on Recruiting Resources: How to Recruit and Hire Better.

Augmented workforce is not the future – it’s happening now

Alexandros Pantelakis — Wed, 24 Jan 2024 15:00:52 +0000

Whenever you are asked the question “Will AI take my job?”, the answer might be, “No, thanks to the augmented workforce.”

If you are not familiar with the term, then it is about time to explain what an augmented workforce is, how skills and reskilling are playing a pivotal role in shaping the present and future of work, and whether all these advancements can secure your job.

What is an augmented workforce?

The concept of an augmented workforce transcends the traditional boundaries of human and machine collaboration. It represents a sophisticated blend where human intellect and emotional intelligence are amplified by AI’s computational power.

AI is not a substitute but a complement to human skills, taking on repetitive and mundane tasks and freeing humans to engage in more complex, creative, and strategic endeavors.

This synergy is not about replacing human effort but about enhancing and expanding human capabilities.

This synergy is not about replacing human effort but about enhancing and expanding human capabilities.

For instance, IBM’s report, “Augmented Work for an Automated, AI-driven World,” states that 40% of the workforce will require reskilling in the next three years due to AI and automation’s impact. Are the HR teams ready for it?

The augmented workforce model

The emergence of the augmented workforce is a response to the rapidly evolving business landscape, characterized by a need for agility, innovation, and heightened productivity.

This model is already being adopted across various industries, as evidenced by insights from the recent report, “Augmented Workforce: Empowering People, Transforming Manufacturing”, by the Economic World Forum in collaboration with the University of Cambridge. That report illustrates the tangible benefits of this integration, such as a 300% improvement in ergonomics and a 50% increase in quality.

These statistics not only highlight the efficiency gains but also the enhancement in employee well-being and safety.

Moreover, the deployment of augmented reality (AR) and other technologies has led to a 70% reduction in training costs and a 20% efficiency gain, as per the same report.

This demonstrates the profound impact of AI in streamlining training processes and improving operational efficiency, making a compelling case for the augmented workforce model.

Applying AI and augmentation technologies

The integration of AI and augmentation technologies in the workplace is not just a futuristic concept, it’s a present reality.

For instance, the use of AI-powered video learning platforms has led to a 50% reduction in training time and a 25% improvement in performance, as highlighted in the WEF report.

In logistics, a sector known for its physical demands, augmentation technologies like exoskeletons have made a significant impact. The introduction of exoskeletons resulted in a 30-40% immediate improvement in posture during work execution, dramatically reducing the physical strain on employees.

Furthermore, the application of augmentation technology in quality and process assurance has achieved remarkable results.

In specific cases, there was a reported 100% success rate in both quality and process assurance, underscoring the potential for significant improvements in production quality and reliability through these technologies.

Security and stability concerns

In the age of AI, one of the primary concerns for employees is job security. However, the augmented workforce model offers a reassuring perspective.

Rather than replacing human jobs, AI is augmenting them, creating new opportunities and enhancing existing roles. For instance, IBM’s report indicates that while AI is expected to disrupt 85 million jobs globally between 2020 and 2025, it is also projected to create 97 million new roles.

This shift underscores the transformative nature of AI – it’s not about job elimination but job evolution. The key is to view AI as a partner rather than a threat.

The key is to view AI as a partner rather than a threat.

By automating routine tasks, AI allows employees to focus on more meaningful, impactful work, thereby increasing job satisfaction and security.

This shift necessitates a proactive approach from HR professionals and employers in reskilling and upskilling their workforce to adapt to these new roles.

Embrace a human-centric approach

For HR professionals and SMB employers, adapting to the augmented workforce model involves strategic planning and implementation.

The first step is to embrace a human-centric approach, recognizing that the ultimate goal of technology integration is to enhance human work, not replace it.

Implementing augmentation technology involves a phased approach: starting with the concept phase to identify technologies and assess industrial challenges, followed by the pilot phase to test the technology in practice, and finally, the scaling phase to expand its use and evaluate its broader impact.

Moreover, fostering a culture of continuous learning and adaptation is essential.

As AI evolves, so must the skills and capabilities of the workforce. Investing in training and development programs that focus on both technical and soft skills will be key to ensuring that employees are equipped to thrive in an AI-augmented environment.

AI won’t take your job

According to the World Economic Forum’s prediction, the year 2025 will witness the replacement of approximately 85 million jobs by AI. However, this technological advancement is also expected to generate around 97 million new job opportunities.

The transformative impact of AI in the workforce is echoed by industry leaders and experts.

For instance, Robin Bordoli, ex-CEO, Figure Eight, supports that “It’s not about machines replacing humans, but machines augmenting humans. Humans and machines have different relative strengths and weaknesses, and it’s about the combination of these two that will allow human intent and business processes to scale 10x, 100x, and beyond that in the coming years.”

Richard Baldwin put it right.”AI won’t take your job,” he said during a panel at the 2023 World Economic Forum’s Growth Summit. “It’s somebody using AI that will take your job.”

“The most expensive, most talented workers are the ones who have 20 years experience and know how to apply that. THAT’S what #AI does overnight.”

“.. A.I. won’t take your job, it’s somebody USING A.I. that’ll take your job.”@BaldwinRE @wef
pic.twitter.com/lGPKU0UtJp

— Carl Quintanilla (@carlquintanilla) May 2, 2023

These perspectives highlight a common understanding among experts: AI is a tool for enhancement, not replacement.

It’s about using technology to unlock human potential and drive forward innovation in ways previously unimaginable.

The journey towards an AI-augmented workplace is an opportunity for HR to redefine its role, focusing on strategic human capital development and fostering a culture that embraces continuous learning and adaptation.

By doing so, we can ensure that our workforce is not just equipped to handle the challenges of today but is also prepared to thrive in the ever-evolving landscape of tomorrow.

The post Augmented workforce is not the future – it’s happening now appeared first on Recruiting Resources: How to Recruit and Hire Better.

Top AI in Hiring statistics in 2024

Alexandros Pantelakis — Wed, 17 Jan 2024 17:07:56 +0000

The integration of AI in recruitment processes not only promises enhanced efficiency and effectiveness but also brings forth new challenges and opportunities.

This article explores the diverse effects of AI on the recruitment sector, gathering insights from multiple credible sources.

We explore the market size and growth, adoption and utilization of AI tools, their efficiency, and effectiveness in accelerating hiring processes, as well as the perceptions and attitudes towards AI in the recruitment sector.

Additionally, we address the concerns and challenges associated with AI integration, its role in reducing bias and enhancing diversity, future expectations and predictions, and the trends in investment and budget allocation towards AI in recruitment.

The data presented offers a comprehensive understanding of AI’s current and potential future role in transforming the recruitment landscape.

Top AI in Hiring statistics

The following statistics are divided into eight specific categories addressing the market’s perception of AI.

1. Market size and growth

Increase in AI importance: 78.9% foresee an increase in AI importance and usage in the workplace, with only 4% predicting a decrease. [Source: AI in Hiring and Work 2024 Survey]

Global market size: AI recruitment industry’s global market size is $590.50 billion as of 2023. [Source: FnF Research]

Projected growth: Enterprise sector of AI recruitment to grow at a CAGR of 6.17% between 2023 to 2030. [Source: World Economic Forum]

Market projections: Global AI recruitment market to reach $942.3 million by 2030. [Source: FnF Research]

2. Adoption and utilization of AI in recruitment

Growth in AI tool usage: 68.1% see an increase in the use of AI tools in recruitment. [Source: AI in Hiring and Work 2024 Survey]

Global AI usage: Since the pre-COVID period, 88% of companies globally have been utilizing AI technology in HR, including recruitment. [Source: SHRM]

AI in companies: 24% of companies use AI to hire talented employees. [Source: Sage Group]

AI for talent management: 60% of organizations use AI to manage talent as of 2024. [Source: McKinsey]

3. Efficiency and effectiveness of AI

Acceleration in hiring process: 44.2% report significant acceleration in the hiring process due to AI. [Source: AI in Hiring and Work 2024 Survey]

Time-saving: 44% of recruiters and 67% of hiring decision-makers see AI’s main advantage as its ability to save time. [Sources: Tidio]

Candidate sourcing: 72% of recruiters find AI most useful for candidate sourcing. [Source: LinkedIn]

Reduction in hiring time: Hilton reduced time to fill positions by 90% using AI. [Source: Medium]

4. Perceptions and attitudes towards AI

Mixed feedback in accounting/finance: 38.7% in Accounting/Finance give mostly positive feedback on AI in hiring. [Source: AI in Hiring and Work 2024 Survey]

Positive impact: 67% of HR professionals believe AI has a positive impact on recruitment. [Source: Tidio]

Public skepticism: 66% of U.S. adults would not apply for a job using AI for hiring decisions. [Source: Pew Research Center]

Racial or ethnic bias concerns: 37% of American adults think racial or ethnic bias is significant in hiring. [Source: Pew Research Center]

5. Concerns and challenges about AI

Technical difficulties in AI integration: 46.2% face technical difficulties in integrating AI. [Source: AI in Hiring and Work 2024 Survey]

Exclusion of unique talents: 35% of recruiters worry AI may exclude candidates with unique skills and experiences. [Source: Zippia]

Fear of replacement: 5% of HR leaders are concerned about AI taking over their jobs. [Source: Global CHRO AI indicator report]

24% of workers are worried AI will make their job obsolete [Source: CNBC]

6. Bias reduction and diversity enhancement

Challenges in hiring bias and data privacy: Top challenges include hiring bias (40%) and data privacy concerns (37.2%). [Source: AI in Hiring and Work 2024 Survey]

Reducing unintentional bias: 68% of recruiters believe AI will remove unintentional bias. [Source: Tidio]

Screening challenges: 43% of HR professionals find screening candidates the most challenging task. [Source: Ideal]

Onboarding preferences: 76% of people wouldn’t mind being onboarded by AI. [Source: Tidio]

7. Future expectations and predictions

Transformative impact anticipated: AI’s transformative impact on hiring processes is widely anticipated. [Source: AI in Hiring and Work 2024 Survey]

AI’s future role: 79% of recruiters believe AI will soon make hiring and firing decisions. [Source: Tidio]

AI decision acceptance: 31% would agree for AI to decide their hiring, 75% if there’s human involvement. [Source: Tidio]

AI in future recruitment: 77% of HR professionals believe people won’t have to be involved in the recruitment process at all soon. [Source: Tidio]

8. Investment and budget allocation

Increased budget in construction and IT/Technology/SaaS: These industries are likely to increase budget allocation for AI, indicated by the growing trend in AI usage. [Source: AI in Hiring and Work 2024 Survey]

Budget allocation in SMBs: 35.5% of small and medium businesses allocate budget toward AI recruiting tools. [Source: Statista]

Investment in AI-powered software: According to a survey conducted by MIT Tech Review, nearly half of the 600 firms surveyed stated that they plan to increase their spending on data infrastructure and AI by over 25% in the upcoming year. [Source: MIT Tech Review]

AI is important for the workplace

The integration of AI in recruitment signifies a major shift in the hiring paradigm, offering both remarkable opportunities and notable challenges.

As the data suggests, there is a growing recognition of AI’s importance in the workplace, with a significant number of companies adopting AI tools to enhance their recruitment processes.

While AI has shown potential in accelerating hiring, reducing biases, and improving overall efficiency, it also presents technical challenges and raises concerns about data privacy and the potential overlooking of unique talents.

The future of AI in recruitment is widely anticipated to be transformative, with industries increasingly allocating budgets to harness its capabilities.

As we move forward, it is crucial for organizations to navigate these changes thoughtfully, balancing the technological advancements with the human aspects of recruitment to achieve a more efficient, fair, and inclusive hiring process.

The post Top AI in Hiring statistics in 2024 appeared first on Recruiting Resources: How to Recruit and Hire Better.

Reverse ageism: why do companies avoid Gen Z workers?

Suzanne Lucas — Wed, 17 Jan 2024 17:59:08 +0000

Age discrimination is rampant in the United States. It can be challenging to get a job you are qualified for when you’re 22 years old.

Wait, what?

Okay, so legally, age discrimination isn’t illegal unless you are discriminating against people who are over the practically dead age of 40. (At least from a federal perspective – some US states prohibit age discrimination from 18.)

However, discrimination is happening frequently to the youngest members of the workforce – Gen Z.

A survey conducted by Intelligent.com in December 2023 found that many employers are steering clear of Gen Z employees.

If you ask me, I think the goal is to show how awful Gen Z is, and instead, it demonstrates three things to me:

Every generation thinks the next generation is lazy and awful.
If all laziness and awfulness of Gen Z is true, boy, Gen X, and Baby Boomers are bad parents.
There is something wrong with our universities.

Let’s break this down, first by looking at the survey results:

The survey results

The survey found that many managers prefer working with older, more experienced employees and are willing to pay a premium to ensure that.

Here are some key points from the Intelligent.com study:

38% of employers avoid hiring recent college graduates in favor of older employees
1 in 5 employers have had a recent college graduate bring a parent to a job interview
58% say recent college graduates are unprepared for the workforce
Nearly half of employers have had to fire a recent college graduate
53% say recent college grads struggle with eye contact
50% say recent college grads ask for unreasonable compensation
47% say candidates show up dressed inappropriately
21% say candidates refused to turn on cameras for video interviews
63% say new grads can’t handle their workload

Watch me tsk tsk about these horrible Gen Zs who don’t even know about dress codes and leaving Mommy at home! (Not to be sexist, but I’m willing to bet dollars to donuts that it wasn’t Dad who showed up at the job interview.)

But first, I’m going to shame the adults in the room.

1. Every generation thinks the next generation is lazy and awful.

This really shouldn’t be a shock to anyone. Paul Fairie, a researcher at the University of Calgary, posted a brilliant thread on

Twitter detailing how each generation complains about the younger generation – going back to 1894. He could even have gone further back to sometime around 300-600 BC, when Greeks complained that children “began to be the tyrants, not the slaves, of their households.”

A Brief History of Nobody Wants to Work Anymore

— Paul Fairie (@paulisci) July 19, 2022

The reality is that younger people will never be as good at being like older people precisely because they are younger. They have to be trained. They have to learn by experience. There’s no royal road to maturity. Complaining about young people just makes you sound, well, old.

2. If all laziness and awfulness of Gen Z is true, boy, Gen X, and Baby Boomers are bad parents.

Who are the hiring managers making these decisions? Why, some millennials, of course, whose oldest children are the younger Gen Zs.

But primarily, hiring managers fall into the forgotten Gen X with some Baby Boomers still hanging on down the home stretch to retirement.

And who raised these good-for-nothing Gen Zs who don’t have the sense to put some pants on, turn on their cameras, and cover their tattoos for a job interview? Well, that would be Gen X and the younger boomers.

Yes, it’s ridiculous that we (as a Gen Xer, I feel like I can say “we” here) complain that parents show up for interviews. Who is showing up? It’s not Gen Z that is going to their toddler’s job interviews. It’s the Gen X and Boomer parents. Whose fault is that? Again, not Gen Z.

Why doesn’t Gen Z know how to dress appropriately for a job interview? Perhaps it was because Mommy and Daddy ran to the school to complain about dress codes. When you’re fighting for the right for your son to have his waistband fall below his rear end and your daughter to have her midriff showing, don’t be surprised when your little darlings don’t know how to dress for a job interview.

You’ve spent 22 years saying, ”You be you, honey. Clothes don’t matter.” It turns out children do listen – sometimes.

3. There is something wrong with our universities.

Where does Gen Z get wildly inappropriate ideas about reasonable salaries? Well, from school, of course. A joint survey from PublicSquare and RedBalloon of business owners found that 91% believe universities “are fostering unrealistic expectations among students regarding post-graduation and professional life.”

Yikes.

Students graduate expecting the salaries of people who have worked for years and the responsibilities to match. Sixty-three percent said salary expectations were off, and 50%had false beliefs about work difficulty.

Parents send their children to university so that their children can get good jobs. That’s clear, but it’s not necessarily what universities are doing. Instead, some universities are fostering an environment where every need is handled.

For instance, at Stanford University, there are more administrators and faculty members than actual students. Businesses run much more lean than that. You’re expected to be responsible for yourself and carry out tedious tasks you don’t want to do.

Overall, work is called work because it’s hard. That’s why people pay you. It’s not all fun and games. Workable CEO Nikos Moraitakis made that clear in an interview about the work experience at his company in 2018:

“You will sit in an office, work on what are undoubtedly interesting problems with a pretty significant amount of data, designing a beautiful product on the way. … [Work] involves doing a lot of things that you would rather not be doing, but down the line, there may be something in it that may improve the way a lot of people work.”

[Work] involves doing a lot of things that you would rather not be doing, but down the line, there may be something in it that may improve the way a lot of people work.

And perhaps, look in the mirror before complaining about Gen Z. Young people being young people is expected. But the more significant problems? Well, older generations caused those. Stop accompanying your child on job interviews. Problem solved.

And one more thing; Of course, companies are willing to pay experienced workers more than inexperienced workers. This isn’t discrimination. This is smart. Imagine how people would complain if you paid Emily and Jacob at 22 with one internship, the same salary as Jennifer and Michael with 30 years of experience.

The post Reverse ageism: why do companies avoid Gen Z workers? appeared first on Recruiting Resources: How to Recruit and Hire Better.

Navigating the AI talent landscape with Allurion and Rokt

Keith MacKenzie — Wed, 17 Jan 2024 15:28:39 +0000

The rapid advancement of AI technology has brought about significant changes in talent acquisition and management. We reached out to two of our customers to understand this better.

Claire Vernié, Talent Acquisition Operations Project Manager at weight-loss company Allurion Technologies, and Sarah Wilson, Chief People Officer at the ecommerce tech firm Rokt, shared their experiences and strategies with us on how they’re navigating this rapidly evolving landscape especially in how the talent market is impacted.

New report: AI in Hiring 2024

We asked 950 hiring managers how they're using AI in hiring and in the workplace. And now we have a new survey report packed with insights for you.

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Here, we share the questions that we asked them, and their responses.

1. The overview

Q: Can you provide a brief overview of your company’s journey, especially in terms of hiring AI talent, and share a pivotal lesson you’ve learned?

In her response, Claire emphasized the importance of cultural fit and diverse skill sets alongside technical expertise.

She also describes an enthusiastic and strategic embracement of AI tech – including developing the Coach Iris weight-loss app, its own in-house AI tool.

It’s not just tech though.

“We’ve recognized that … cultural fit is also pivotal in building a cohesive team by fostering a collaborative environment that celebrates diverse skill sets as well as encourages continuous learning and innovation,” says Claire.

Naturally, this all leads to an increased need for top AI talent

This, Claire tells us, “emphasized the necessity for competitive packages to ensure we attract and retain the best talent.”

Allurion, says Claire, has bigger plans ahead including new product development, which will only emphasize the crucial balance between tech, culture, and compensation in the AI landscape.

Meanwhile, Sarah says the rise of AI has opened up what she describes as a “great problem to have”.

“We have had a machine learning (ML) team for many years and so the rise of AI in popularity has created both challenges and opportunities for us,” says Sarah.

“There are now more people training in this space (increasing the candidate pool) but by equal or greater measure, there are more opportunities for these individuals to choose from.”

2. What’s evolved in hiring AI talent

Q: How have your challenges and strategies in hiring specialized AI professionals evolved throughout 2023, and what’s in store for 2024?

While Sarah pointed to an already-existing machine language team at Rokt, Claire noted that Allurion hired its first machine language engineer in 2023 – with the focus on cutting-edge projects.

And in 2024, Allurion’s talent team will strengthen its relationship with existing AI communities.

“This is key to establish a robust pipeline for skilled professionals,” Claire says, highlighting the importance of aligning hiring strategy with a commitment to embracing AI tech.

Meanwhile, Sarah says the shifting tech market has opened up access to talent that Rokt didn’t have access to previously.

“We have found that we are hiring more internationally than we have previously as well. We expect these trends to continue.”

3. The balance between AI upskilling and hiring

Q: When looking at your AI team’s capabilities, how do you balance between upskilling existing employees and hiring new talent, and what criteria guide your decisions?

Sarah described a prioritization of hiring highly educated professionals, while also empowering their staff with individual professional development budgets.

“We put the power to develop these skills into the hands of our people,” Sarah says.

“That said, we typically hire PhD level people into these roles – and so our current priority is in hiring into the group versus leveling up the people we have.”

Claire looks to strike a balance between the two.

“Upskilling will foster loyalty and internal expertise with our current employees, while new hires bring in diverse perspectives to our organization,” she says, adding that decisions are made after assessing current skills gaps, project needs, and long-term goals.

4. Identifying and attracting AI talent

Q: Where can you find AI talent, how do you attract them, and what soft skills are crucial for them to succeed?

Claire highlighted a multifaceted approach.

“We tap into online communities, conferences, specialized platforms, and strategically explore colleges renowned for top-tier AI programs. By spanning out regionally and pinpointing locations rich in talent, we are casting a wide net.”

She adds that a focus on tackling “interesting and meaningful problems” through innovation and an emphasis on growth opportunities, collaboration, and teamwork are key, as are the overall company mission and benefits.

As for soft skills: “We value adaptability, effective communication, and a passion for innovation.”

Similarly, Sarah also points to alignment with core values as a key measuring stick of new talent.

“We have found in particular that Smart with Humility, Conquer New Frontiers, and Communicate with Impact correlate closely to success in this part of our business.”

5. Finding and filling gaps without in-house AI experience

Q: How do you evaluate candidates for a brand-new AI role when you don’t have that experienced leader who knows what to look for in terms of talent?

First, when engaging with candidates, Claire looks at skills and abilities, a track record, and a drive to stay updated in the evolving AI landscape.

And then there’s the team approach.

“We also adopt a team-oriented strategy to collectively break down the responsibilities associated with the new AI role. This collaborative effort involves researching, accessing training resources in our network or through platforms like LinkedIn Learning,” Claire says.

“We proactively gather insights from various channels, including reviewing other job postings, articles, and engaging in discussions during the recruitment process.”

Claire notes how this helps in collectively establishing knowledge and understanding for new AI roles in the absence of an experienced leader.

AI grows as a mainstay in work

The insights from Sarah and Claire show an increased emphasis on AI knowledge and capabilities – and they’ve evolved their hiring and employment strategies at their respective companies in response.

As is the case for any new developments in the workplace, an agile and proactive mindset is crucial to stay ahead of the curve – and we’re seeing this at Allurion Technologies and Rokt, among many others.

If you’d like to share your own insights or story on how you’ve navigated the sudden entry of AI into your company, send us a note and let’s talk!

The post Navigating the AI talent landscape with Allurion and Rokt appeared first on Recruiting Resources: How to Recruit and Hire Better.

Maybe a no-frills employee management tool is all you need

Alexandros Pantelakis — Thu, 11 Jan 2024 14:50:02 +0000

An HRIS is not just about cutting costs, it’s about streamlining processes, improving employee engagement, and ultimately driving your business forward.

This article aims to shed light on the top basic HRIS solutions that are making waves in 2023 and 2024, perfectly tailored for small and medium-sized businesses.

Why opt for a basic HRIS?

According to a report by SHRM, 25% of companies have incorporated automation into their HR workflow, primarily to enhance the recruitment and hiring process.

It’s simple. In a world where time is money, these systems offer straightforward, user-friendly platforms that cut through the complexity. They’re designed for businesses that need to manage their human resources effectively without the bells and whistles of more complex systems.

Consider this: According to a State of Digital Maturity report in 2022, more than half (51%) of workers stated that they dedicate a minimum of two hours each day to repetitive tasks.

Basic HRIS solutions can dramatically reduce this time, allowing you to focus on strategic initiatives that drive business growth.

Moreover, for small businesses, these systems offer an affordable way to manage HR processes, without the hefty price tag of more elaborate systems. This is confirmed by a vast majority of professionals who support that AI has sped up the hiring process (89.7%) and reduced the time (85.4%) and cost (78%) spent on hiring, according to our recent AI in Hiring survey.

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Don’t choose an HRIS before checking this

When it comes to selecting the right HRIS for your organization, it’s not just about picking the most popular option or the one with the most features.

It’s about finding the system that aligns best with your company’s specific needs, goals, and constraints.

Here are key considerations to keep in mind:

1. Company size and scalability

The size of your organization plays a crucial role in determining which HRIS is suitable. A system that works well for a small business might not scale effectively for a larger enterprise. Consider not only your current size but also your growth plans.

2. Industry-specific needs

Different industries have unique HR requirements. For example, a manufacturing company might prioritize safety training and compliance, while a tech company might focus more on talent acquisition and retention.

3. User experience and accessibility

A system that is intuitive and easy to navigate ensures higher adoption rates among employees. Accessibility across devices, especially mobile, is increasingly important.

4. Integration capabilities

Your HRIS should seamlessly integrate with other tools and systems in use, such as payroll, accounting, or project management software. This integration minimizes the need for duplicate data entry and streamlines processes.

5. Cost and return on investment

Budget is always a consideration. Weigh the cost of the HRIS against the benefits it provides. A more expensive system might offer a higher return on investment through time savings and efficiency gains.

6. Compliance and security

Ensure that the HRIS complies with relevant laws and regulations, especially those related to data privacy and security. The system should have robust security measures to protect sensitive employee data.

7. Support and training

Consider the level of support and training provided by the vendor. Good support can significantly ease the implementation process and help resolve any issues that arise.

8. Customization and flexibility

The ability to customize the system to fit your specific HR processes and policies is crucial. A flexible system can adapt to changing business needs over time.

Remember, the goal of an HRIS is not just to automate HR tasks but to enhance your organization’s human capital management.

The right system will help you attract, retain, and develop your employees, ultimately driving business success.

The post Maybe a no-frills employee management tool is all you need appeared first on Recruiting Resources: How to Recruit and Hire Better.

Inspire your workforce to embrace and excel with AI

Alexandros Pantelakis — Mon, 08 Jan 2024 14:28:26 +0000

The emergence of AI has sparked a duality of emotions among the workforce. A recent McKinsey podcast highlights the dilemma between professionals who wonder at AI’s potential and those who fear its inherent risks.

HR stands at the forefront of this technological frontier, tasked with demystifying AI and guiding employees through its integration. With the considerable employee resistance in mind – 40.5% according to Workable’s AI in Hiring survey – this can be a difficult task for you.

The challenge lies in balancing the curiosity to explore AI’s possibilities with the caution necessary to address its complexities and ethical considerations.

It’s up to you to make the decision and inspire your workforce to excel with AI technology tools.

Skip the lag, embrace the new technologies

According to Gartner, a staggering 76% of HR leaders believe that failing to adopt AI within the next 12 to 24 months will leave their organizations lagging behind.

This statistic underscores the urgency with which HR must not only understand AI but also lead its ethical and effective implementation. The role of HR is evolving from administrative gatekeepers to strategic pioneers, steering their organizations through the uncharted waters of AI integration.

AI’s impact on jobs

One of the most pressing concerns with AI is its impact on employment.

Contrary to the popular narrative of job replacement, the reality is more nuanced.

An IBM study revealed that while roles will undoubtedly transform, they are more likely to be augmented by AI than outright replaced. In fact, 87% of executives believe that AI will enhance employee capabilities rather than diminish them.

This insight is crucial for HR professionals as they seek to reassure employees and reframe AI as an opportunity for growth and innovation rather than a threat to job security.

Pioneering companies like PwC and Walmart have set compelling examples. PwC’s commitment to upskill all 65,000 of its employees on generative AI, including tools like ChatGPT, signifies the importance of comprehensive AI literacy.

Similarly, Walmart’s AI Playground allows employees to experiment with AI within a structured and safe environment. These initiatives demonstrate how organizations can mitigate fears and build confidence by providing hands-on learning experiences with AI.

Leadership in the AI era

The journey toward AI integration is not without its ethical and practical challenges.

Over one-third of HR leaders expect to lead their organization’s enterprise-wide AI ethics approach, according to Gartner.

This responsibility underscores the crucial role of leadership in setting a clear and ethical direction for AI adoption.

Leaders must not only understand the technical aspects of AI but also its broader implications on organizational culture, ethics, and governance.

AI as a pillar of HR strategy

The strategic importance of AI in HR cannot be overstated.

A Conference Board survey of CHROs found that 61% plan to invest in AI to streamline HR processes in 2024. Additionally, according to Workable’s AI in Hiring report, nearly two in three have used some form of AI when hiring in the last year.

This investment is not just a trend, but a recognition of AI’s potential to impact everything, from recruitment and onboarding to performance management and employee engagement.

For HR professionals, the challenge lies in identifying the areas where AI can deliver the most value, securing the necessary resources, and implementing solutions that align with the organization’s strategic objectives.

1. Fostering a AI-fluent workforce

As the workplace becomes increasingly diverse, HR must ensure that AI initiatives resonate across all generations.

The concept of reverse mentoring, where younger, digitally-savvy employees guide their older counterparts, can be particularly effective.

This approach not only facilitates knowledge sharing but also fosters a culture of inclusivity and continuous learning.

By engaging employees of all ages in AI learning and experimentation, organizations can harness a wealth of perspectives and experiences, driving innovation and adaptability.

2. Realizing the potential

Real-world case studies provide invaluable insights into the practical application and impact of AI in HR.

For instance, consider a company that implemented an AI-powered recruitment tool like DAOU Vineyards. This tool not only streamlined the application process but also reduced unconscious bias, leading to a more diverse and qualified candidate pool.

Another example is a global retailer that used AI to analyze employee feedback like PaneraTech, enabling leadership to address concerns promptly and boost employee satisfaction.

These stories not only illustrate the potential of AI but also provide a blueprint for other organizations looking to embark on a similar journey.

3. Addressing fears and misconceptions

Despite its potential, AI is often shrouded in myths and misconceptions. HR has a critical role in demystifying AI, providing clear and factual information, and addressing common fears.

For example, while some worry about job displacement, the reality is that AI is more likely to augment jobs and create new opportunities.

By proactively addressing these concerns and highlighting the positive aspects of AI, HR can help build a foundation of trust and openness, paving the way for successful adoption.

4. Staying ahead in the AI race

In the rapidly evolving landscape of AI, continuous learning and adaptation are key. HR professionals must stay informed about the latest developments, tools, and best practices in AI.

This requires a commitment to ongoing education and a willingness to experiment and learn from both successes and failures.

By fostering a culture of curiosity and resilience, HR can ensure that their organizations not only keep pace with the AI revolution but also leverage it to drive innovation, efficiency, and competitive advantage.

Embrace AI not as a challenge to overcome but as a catalyst for transformation and success.

By investing strategically, fostering a multigenerational workforce, sharing success stories, demystifying AI, and committing to continuous evolution, HR professionals and SMB employers can inspire their teams to embrace and excel with AI.

The post Inspire your workforce to embrace and excel with AI appeared first on Recruiting Resources: How to Recruit and Hire Better.

Unlocking the value of a positive hiring journey

Alexandros Pantelakis — Thu, 04 Jan 2024 14:50:18 +0000

How important is the candidate experience and what short or even long-term effects does it have on a company? Let’s dig further into this.

The candidate experience consists of two components: perception (perceived experience) and interaction (the “actual” experience). These two components are on behalf of the job seeker and it is up to the company to shape what that will be like for the candidate – or rather, how they will experience it.

It begins from the very beginning once the candidate applies up to the very end of their journey as a hopeful employee.

Good candidate experience elements

A good candidate experience has many elements to it, but must include:

1. An easy application process

Beyond perception and interaction, the candidate experience involves further internal components built by the organization that plays into the candidate’s journey.

First, you want the application process to be user-friendly and allow a candidate to apply with ease.

That’s seen in the application process using Workable, where our platform allows job seekers to apply within seconds.

2. Clear and swift communication channels

Following this is communication. One of the most important parts of recruitment is to have stellar communication with great response times. You want communication to be clear, transparent and timely all throughout the hiring process.

Candidates appreciate updates regarding their application and where they are in the hiring process, even as little as feedback can go a very long way.

3. Delivery of feedback

Feedback is also part of these components here. Feedback is often asked by candidates as they have faced several rejections elsewhere, have devoted time and effort into the hiring process, and are always seeking to improve their candidacy.

Constructive feedback delivered in a timely manner is crucial for the candidate and in turn maintains a positive impression of the organization.

4. A strong, positive first impression

We all know first impressions always matter – especially on behalf of the recruiter who is that first introduction to what the culture is like and gives the first impression of a company.

Professionalism, asking relevant questions, and overall building a relationship with the candidate is important.

You aim to leave a lasting impression, and a great screening call can make the candidate consider your company in the near future, regardless of the outcome.

First impressions also matter when it comes to your employer branding, another ingredient to the candidate experience.

You need great employer branding to attract talent in the first place and with a strong image of your company, this can attract that talent while it is up to the recruiter and hiring team to continue that strong image when they meet those candidates.

5. Ease of tech and tools

Lastly, efficient technology and tools. Luckily, we have a stellar applicant tracking system in Workable, which can provide that user-friendly experience I mentioned earlier.

A strong tool like this can enhance the candidate experience as they go through the hiring process.

What’s in a bad candidate experience?

Now that we’ve nailed down what the candidate experience is and what ingredients make up of it, let’s discuss the difference between negative and positive experiences that job seekers may go through and what you want to avoid.

Imagine you wanted to create a horrible experience for your job applicants. You would:

1. Ensure a time-consuming application process

Firstly, you want to avoid a lengthy application process, this can cause frustration for the candidate.

You want to avoid a lengthy process that could potentially make the job seeker give up mid application, or just gain a negative perception about the company that they have to jump through many hoops just to even have the chance to speak to a recruiter or hiring manager.

2. Communicate poorly

Secondly, having bad communication overall. Under this umbrella falls:

providing no constructive feedback
delivering inadequate information about your organization
misalignment with job descriptions
unwelcoming interactions in communications and even in the onboarding process if there are any delays or confusion

This can all turn off a candidate.

3. Talk the talk, but not walk the walk

Thirdly, the positivity you promote from within must be presented on the outside. Having negative reviews online about your company can really deter prospective candidates from applying to your company and damage your employer brand.

Be consistent, communicative, and clear

A great experience on the other hand, follows what I mentioned above where you want transparent communication that is consistent along with a great hiring process and efficient tool that helps you perform this. These measures are crucial and can make a lasting impact for job seekers.

So what is the goal here? You want to always make candidate experience one of your top priorities and look into enhancing the above. Even if you think you have a perfect process, there is always room for improvement. Remember that impressions matter and it is all on you on how you want to deliver that impression.

The post Unlocking the value of a positive hiring journey appeared first on Recruiting Resources: How to Recruit and Hire Better.

If you have a negative outlook for HR in 2024, you can fix it now

Suzanne Lucas — Tue, 02 Jan 2024 13:14:29 +0000

“Survey: Despite Improved Hiring Outlook, HR Leaders’ Expectations Worsen.” This is the headline the Conference Board chose to use to detail the results of their survey of CHROs. In the spirit of “if it bleeds, it leads,” they went with the most negative aspect of the survey.

And I get it–it’s all about the hits and no one likes to read “Everything is great!” We simply don’t click as often, but we should.

If you have a negative outlook toward HR for 2024, you can fix it. Here’s how.

1. Look at the actual numbers

The survey found that the CHRO confidence index fell from 55 percent in Q3 to 53 percent in Q4. Remember, anything above 50 means more people are positive than negative. Are you going to get your knickers twisted over a two percent difference? The majority of CHROs are confident about things going into 2024. That’s a cause for celebration.

And take a look at these stats:

44% of CHROs expect to increase their hiring over the next six months—up from 38% in Q3.
19% expect to decrease their hiring over the next six months—down from 26% in Q3.

Hiring is up! That is positive for businesses. 2023 saw a lot of layoffs, especially in the tech sector, so looking at increased hiring is a good thing–for candidates as well. And as hiring increases, more people are looking for new jobs. When things are bad, people hunker down in the position they have. When things look good, they are willing to try new things.

And let’s take a look at retention:

22% of CHROs expect employee retention to decrease over the next six months, up from 18% in Q3.
Only 28% of CHROs expect their employee retention levels to improve over the next six months—down from 34% in Q3.
51% of CHROs expect employee retention to hold steady—up slightly from 48% in Q3.

Let’s rewrite that for positivity’s sake:

78% of CHROs expect employee retention to increase or remain steady over the next six months.

That’s a fantastic number. Yes, it’s less than Q3s, 82%, but it’s still a great number. Remember, a good hiring market means retaining good employees can be more difficult, so it makes sense that if hiring is up, retention will be down.

These aren’t scary or negative numbers.

2. Look for the positive

When you are looking toward 2024, you can focus on the negative things in your business, or you can focus on the positive things. This does not mean ignoring the problems–that makes everything become negative rather quickly. But look toward the positive.

Doing an employee engagement survey can help you know what is working and what employees feel is lacking. But remember, don’t do a survey if you’re not going to address issues! Nothing is worse for employee morale than asking them how things are going and ignoring it.

When you get the results from your survey, look for the things that are going well and talk them up while patting yourself on the back. There are probably a lot of good things.

3. Fix the negativity

It would be fabulous if HR had all the power and budget needed to solve employee engagement problems, but alas, you are undoubtedly limited. But if your employees tell you of a problem, you need to acknowledge it at least. Here are some things to think about.

Complaint: Pay is too low

Response: Assuming you literally cannot adjust pay and that your pay is at market rates, at least acknowledge employee concerns. But don’t do so and then hand out big bonuses to the executives. It’s tone-deaf.

Complaint: Managers are terrible

Response: You probably can’t fire managers, but you can do things to address manager behavior. What is wrong with the managers’ behavior? Have you trained your managers in providing feedback and managing by results? If you haven’t done these things, start doing them.

Complaint: Lack of transparency

Response: Fixing this is free. The battle will be with the C-suite to convince them that letting employees know what is happening is good. People want to know and will perform better if they understand what is going on.

Complaint: No work-life balance

Response: Again, this is a C-suite issue more than a cost issue. Dig into the issue and find out what employees see as the problem. Do they want remote work? Flexible start and end times? More breaks? Some of this may be possible, and some may not–you certainly can’t have your certified nursing assistants working from home–but you can allow your accountants a bit more flexibility. Look for a solution and ask your employees for suggestions. They may have ideas that you would never think of.

4. Stay optimistic

While it’s easier to complain, look for the positive in your organization and celebrate it. This is not the toxic positivity of demanding fake happiness. This is looking for the good and pointing it out. You get more of what you look for, so you’ll see more and more good as you do this.

The post If you have a negative outlook for HR in 2024, you can fix it now appeared first on Recruiting Resources: How to Recruit and Hire Better.

SMB wins and lessons of 2023 – and what’s planned for 2024

Keith MacKenzie — Thu, 28 Dec 2023 17:37:44 +0000

Every year, we like to query hiring teams and SMB employers the world over to understand:

What their biggest challenge of the past year was
What their biggest triumph of the past year was
What they would plan for differently if they knew then what they know now

And also:

What they anticipate will be their biggest challenge for the upcoming year
What they anticipate will be their biggest triumph for the upcoming year
What they’re planning for the upcoming year after what they’ve learned from the past year

When you ask such a wide range of questions, you’ll get a fascinating array of answers. We did this in December 2021, and again in December 2022.

This time, in December 2023, we got more than 120 responses to our query, and we’ve packaged their responses into 11 major themes.

Read on and learn what the top wins and lessons of 2023 were for employers, and what they’re planning for 2024:

1. Adopting remote work models

Many respondents discussed the shift to remote work arrangements, focusing on the challenges and opportunities this change presents.

Ben Richardson, Founder & Director, Acuity Training:

“I have further optimized remote work setups within my team by leveraging technologies to facilitate seamless communication, collaboration, and productivity among remote teams.”

Eugene Klimaszewski, President, Mammoth Security:

“One of the key advantages we’ve experienced at our company is the flexibility it offers. As remote entrepreneurs, we can operate from virtually anywhere, tapping into a diverse talent pool without the constraints of physical office spaces.”

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Warner Quiroga, President/CEO, Prestige Homebuyers:

“Embracing remote work has taught us that we can achieve impressive results while offering our employees a flexible, fulfilling work environment. We can keep pushing the boundaries and setting new standards for remote work within the real estate industry.”

Nathan Jacobs, Senior Researcher, The Money Mongers Inc.:

“Our biggest win was rolling out a flexible work model. We struck a balance between remote and office work, leading to a spike in productivity and happier employees.”

Jason Smit, CEO, Contentellect:

“Basically, 2023 proved the prescience of remote work, and as old models are still playing catch up, I think our position solidifies as the exemplar.”

Marc Massad, Business and Marketing Director, VelocityPaddle:

“Our most notable accomplishment in 2023 was establishing a flexible work structure, more especially a hybrid model that allowed for both in-office and remote work. We made this strategic step because we care deeply about our employees and want to create a workplace that supports their different requirements. Not only did the hybrid model provide more leeway, but it also greatly improved both contentment in one’s work and productivity.”

James Gibson, Digital Marketing Manager, Camsurf:

“I would stress the significance of strong channels of communication and deliberate attempts to foster team cohesiveness if I could go back in time to December 2022. The shift to the hybrid work model may have gone more smoothly if early investments in digital collaboration tools and team-building exercises had been put in place.”

Kelly Indah, Editor in Chief, Increditools:

“To be successful and bring up new ideas, tech leaders need to be able to see problems coming and figure out how to fix them. In 2024 it’s hard to work with people who are far away. A tough issue needs direction and teamwork when many people work from home.”

2. Fine-tuning the hybrid model

The hybrid model itself posed challenges and lessons – namely, establishing remote and in-office collaboration to maintain productivity and team spirit.

Sebastian Petrosi, CMO, howtowatch.com.au:

“[Challenge for 2024]: Balancing the hybrid work model effectively. As we continue with remote and office-based work, ensuring equal opportunities and a cohesive company culture will be a challenge.”

Lisa Geller, Senior Content Writer Specialist, Eventify:

“Our key challenge in 2023 centered around maintaining seamless communication and cohesion in a hybrid work environment. Balancing remote and in-office collaboration required strategic adjustments. This challenge led us to invest in robust communication tools and innovative team-building activities to bridge the physical and virtual divide.”

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Dan Eastman, CEO & Founder, Ship Tracking:

“In 2023, I learned the significance of flexible work arrangements and prioritizing employee well-being. Remote work proved feasible, but maintaining team cohesion required deliberate effort. As we head into 2024, I’m focusing on refining hybrid work models, nurturing a supportive company culture, and using technology for seamless collaboration. Recognizing the importance of continuous learning, I’m investing in employee development programs to adapt to evolving industry demands and ensure a resilient and engaged workforce.”

Max Williams, Founder & CEO, Herobot.app:

*Our most significant achievement in 2023 was successfully implementing a flexible work arrangement that catered to the diverse needs of our team. We adopted a hybrid model, allowing employees to balance remote work and in-office collaboration. This not only boosted overall job satisfaction but also improved productivity and work-life balance.*

Wendy Wang, Owner, F&J Outdoor:

“Our most significant accomplishment in 2023 was transitioning to a hybrid work model. We found that this flexibility boosted our employees’ morale and productivity. Our physical warehouse operations were balanced with remote administrative tasks. Our biggest challenge was maintaining consistent communication and team cohesiveness in this hybrid model. It was essential to ensure that no one felt left out or misinformed, whether they were in the office or working from home. If I could meet with my December 2022 self, I would encourage a more proactive strategy in adopting digital tools for better communication. It’s not just about using these tools but understanding how they can bridge the gap between our in-office and remote team members. Our aim for 2024 is to perfect our hybrid working model, by fine-tuning our approach towards employee engagement and maintaining a strong culture in this modern workspace. We anticipate our biggest challenge in 2024 to be the process of hiring and onboarding new employees in a hybrid environment. Making them feel part of our culture and ensuring they’re up to speed with their responsibilities will be crucial.”

3. Balancing work and life priorities

The challenge of maintaining a healthy work-life balance and preventing burnout in remote work environments is a common concern.

Shawn Plummer, CEO, The Annuity Expert:

“In 2023 our most significant accomplishment in workforce management was implementing a flexible work schedule that accommodated employees’ personal needs. This led to improved work-life balance and increased job satisfaction.”

Will Hatton, Founder & CEO, The Broke Backpacker:

“Heading into 2024, I would like my biggest accomplishment to be improving the work-life balance of all my employees. My team deserves a favorable and flexible working schedule, giving them time to handle their personal affairs. I also like to establish a mental health program that focuses on reducing work stress for my staff.”

Daniyal Sanaullah, Owner & CEO, SocialSharings:

“Our main focus at SocialSharings for the year 2024 is to establish a comprehensive employee well-being program. This program aims to prioritize mental health, work-life balance, and professional growth. By providing a supportive environment, we believe that our team will not only perform at their best but also experience a sense of fulfillment and job satisfaction. This holistic approach to workforce management aligns with our values and contributes to the long-term success of both individuals and the agency.”

Kelly Indah, Editor in Chief, Increditools:

“Being unable to separate work and personal life while working from home can cause burnout. They should get regular wellbeing checks, know how much work they have, and find a good work-life balance for their health. Stress-free work and happy employees go hand in hand.”

Mathias Ahlgren, CEO & Founder, Website Rating:

“We started 2023 in a strong position in terms of results, but morale was low. The team had been working so hard, and the work/life balance had started to slide. I knew it was only a matter of time before our work was affected, and anyway, I care about my staff. So, we decided to improve the employee experience in 2023, and I’m proud to say we have done just that. Because of this, we have hit all our targets.”

4. Cohering as a team

Maintaining team cohesion and a unified company culture is another recurrent theme, with many seeking innovative communication and team-building strategies.

Vipin Nayar, Founder, Avivdigital.in:

“One insight we’ve gained is the importance of fostering a strong sense of community, even in a remote setting. Regular virtual team-building activities have been instrumental in maintaining camaraderie.”

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Michael Alexis, CEO, TeamBuilding.com:

“Employees who were worried about being overworked as their teams grew smaller soon came to see that with the right systems put into place, they could achieve just as much with a leaner team. Our biggest managerial accomplishment was being able to get employees onboard with these changes. We were able to achieve this in part by our history of repurposing employees in new roles and creating development and leadership opportunities. We also shared performance and victories to prove that these changes were bringing about results — for instance, we announced at our company retreat that our sales team achieved one of their biggest revenue months ever, despite being significantly smaller (about half) than it was at its peak.”

Michael Guinan, Founder, Subscription Stopper:

“We’re focusing on enhancing digital collaboration tools and strategies for effective remote management. Emphasizing mental health, work-life balance, and equipping leaders with tools to manage remote teams effectively are top priorities.”

5. Engaging employees

Strategies to deepen employee engagement and personal development are frequently mentioned, including tailored growth opportunities and mentorship programs.

Teresha Aird, Co-founder & CMO, Offices.net:

“Our biggest challenge was navigating the (quite dramatically) evolving landscape of employee expectations. Especially regarding work-life balance and career development opportunities. I expect the shift has largely come downstream from wider economic factors and changing workforce dynamics.”

Gretchen Boyd, President, NYC House Cleaners:

“From my experience, I can say that the biggest challenge of managing an employee base is the re-engagement of the workforce. There is no doubt that enhancing engagement from employees is definitely a crucial task for any organization however it becomes more difficult after a pandemic. I strongly believe that enhancing the engagement of the workforce requires a highly frequent performance conversation between employees and the organization. As a business leader or a team lead you can try to help your employees to understand how they can contribute to the company’s success or how their work is important for the organization.”

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Andrew Griffith, Founder, Garden Furniture:

“The foremost challenge in managing our workforce will be sustaining high employee engagement and retention… Effectively addressing these aspects is imperative for organizational success, emphasizing the need for strategic initiatives that prioritize employee well-being, growth opportunities, and a workplace culture that fosters motivation and commitment.”

Laurie Hyllberg, Vice President, Kinsa Group:

“In our planning sessions for 2024, a recurring theme is enhancing employee engagement in a hybrid work environment. We’re exploring new technologies and strategies to keep our team connected, engaged, and motivated. Discussions also revolve around refining our performance metrics to better suit our flexible work model. … Moving forward, it’s clear that agility and adaptability will be key in workforce management. Embracing change, being open to new ways of working, and prioritizing the well-being of our team will be crucial as we navigate the uncertainties and opportunities that lie ahead in 2024.”

Phil Strazzulla, Founder, SelectSoftware Reviews:

“In 2024, we aim to enhance our employee experience by focusing on personalized learning and development opportunities. We want to empower our team members to take control of their professional growth, leading to a more skilled and motivated workforce.

George Yang, Founder, Yanre Fitness and OxygenArk:

“By 2024, we need to make sure that every team member feels valued and connected by finding a balance between cutting-edge technology and our core values.”

Andre Kazimierski, CEO, Improovy Painters Chicago:

“I would say my biggest accomplishment in terms of managing my workforce in 2023 was finally instituting a system of regular employee check-ins. This has been something I’ve wanted to do for some time now, but was never able to produce an actionable system for this type of brief one-on-one with employees. This year I made it a priority and now we have a regular schedule in place for checking in with employees, which I hope will go a long way toward boosting employee engagement, increasing employee retention, and overall making my company a great place to work for the people we employ.”

6. Transforming to digital-first operations

The need for robust communication tools and infrastructure to support increased tech adoption and enhanced productivity is a key theme.

Michael Nemeroff, CEO & Co-Founder, RushOrderTees:

“Our initial challenges were around getting everyone up to speed with our digital transformation and keeping our physical team in the loop with any changes that impacted them. Knowing that we’d come out of it as smoothly now would have changed our mental space throughout our transition period.”

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Isla Sibanda, Owner, Privacy Australia:

“Coursing through the ongoing digital transformation as a team was a huge challenge. I wanted to make sure that my employees are equipped with the skills needed for us to become a technology-driven work environment.”

Suzanne Bucknam, CEO, Connecticut Explorer:

“The biggest challenge for me was the rapid pace of technological advancements. Especially in cloud computing and AI, not to mention keeping your top talent happy at their job in a very competitive job market. What made this difficult was finding the right training methods and getting material that suited everybody’s skill level. Thankfully, my team is rather tech-savvy and embraced the training positively, viewing it as an opportunity to expand their skills and adapt to the evolving landscape.”

Max Wesman, Founder & COO, GoodHire:

“In 2023, our biggest accomplishment was implementing and optimizing our technology and collaboration system use in the workforce. 2023 was a big year for us in terms of digital transformation, and we are looking forward to seeing the results in 2024.”

Eugene Klimaszewski, President, Mammoth Security:

“Virtual communication and collaboration can pose hurdles, especially in the security sector where data privacy is paramount. We’ve responded by making significant investments in communication tools and cybersecurity measures to tackle these issues… To succeed in this evolving landscape, it’s crucial to remain innovative, prioritize effective communication, and maintain a strong focus on cybersecurity, ensuring the continued growth and success of remote business operations.”

Hardy Desai, Founder & CEO, Supple Digital:

“With the evolution of AI, many professionals in our industry are worried about losing their jobs and becoming redundant. This year, we’re most proud that we proactively had conversations about those fears with our teammates and used it to bring us closer together. AI may change how our jobs look, but it doesn’t make it any less important for us to maintain the human touch and evolve our team skills to meet those changes. Our team feels valued, supported, and more open to using AI tools to build on their talents, not replace them.”

Will Hatton, Founder & CEO, The Broke Backpacker:

“The integration of AI tools into my operations is going to be one of my biggest challenges in 2024. Many small businesses are using artificial intelligence to recruit and select staff, but the use of AI tools will require me to recruit a technical AI analyst. If I meet my team today, we will talk about how to improve work-life balance, integrating AI tools, and how to improve efficiency in our operations.”

Phil Strazzulla, Founder, SelectSoftware Reviews:

“Our most significant accomplishment in workforce management in 2023 was implementing data-driven HR software that improved talent acquisition and retention. This allowed us to make more informed decisions and create a more efficient recruiting process.

7. Managing productivity

Several leaders mention the importance of understanding and auditing team productivity, especially in remote settings, to maintain or increase labor ROI.

Mark Stewart, Certified Public Accountant, Step By Step Business:

“Effective management was our single biggest accomplishment in 2023 and it involved fostering remote team collaboration, prioritizing employee well-being, and implementing technology for streamlined workflows to enhance overall workforce productivity and satisfaction.”

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Lilia Stoyanov, CEO, Transformify:

“In 2023, our most significant accomplishment in workforce management was successfully implementing a flexible hybrid work model. This not only boosted employee satisfaction but also enhanced productivit by fostering a culture of trust and autonomy, we experienced increased collaboration and innovation within our event management software SaaS team.”

Robert Brandl, Founder & CEO, Email Tool Tester and Tool Tester:

“Experimenting with building in-house writing optimization tools increased our content output velocity without sacrificing quality or editorial standards despite initially lacking extra writers. Technology leveraged existing efforts.”

8. Investing in L&D and growth

Planning and discussions around career development and skills enhancement are emphasized as critical for 2024 strategies.

Robert Kaskel, Chief People Officer, Checkr:

“It’s all about upskilling and focusing on soft skills. We believe that employees with the right blend of soft skills can handle changing technical role requirements that seem to be the norm as technologies evolve so quickly. So we’re looking at how to spot those soft skills, lean into the strong ones, and upskill to improve the weaker ones.

Teresha Aird, Co-founder & CMO, Offices.net:

“To boost our team’s skills through more targeted development. I believe we can further enhance our service by investing in our talent’s growth. And create a more dynamic and innovative workplace to boot.”

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Connor Butterworth, CEO & Owner, Southwestern Rugs Depot:

“Anticipated challenges include staying abreast of the constantly shifting digital landscape to avoid any disruptions in our workflow or connectivity issues that can emerge with a global team. As for current discussions with my team, the key themes are continuous professional development, refining remote work practices, and fostering a learning environment that encourages innovation and flexibility amidst ongoing uncertainties.”

Benzo Lee, Founder, Autoboxup:

“For 2024, we aim to upgrade our employee development programs, targeting the upskilling of 100 employees to meet new technological and market needs. A major anticipated challenge is integrating AI tools in our workforce, ensuring a seamless transition while preserving job security and morale.”

Zarina Bahadur, CEO & Founder, 123 Baby Box:

“In our current planning sessions for 2024, we’re talking a lot about recruitment strategies and how to onboard new members effectively in our hybrid setup. We’re also discussing continuous learning opportunities to keep everyone at the top of their game. The focus is really on sustainable growth while keeping our core values intact.”

Rob Hourie, IT Staffing Specialist, Elwood Roberts:

“We hope to keep our key employees in place and maintain our excellent attrition rate. As me explore new technology, I hope our team takes these changes as an opportunity to upskill and become more skilled. We hope to promote within, we have some managerial roles coming up soon, to relieve stress on management, so seeing people step up to those challenges is an area I’ll keep a close eye on.”

Ben Richardson, Founder & Director, Acuity Training:

“Increase emphasis on upskilling and reskilling initiatives. Adapt to evolving job roles and technologies. It is best to invest in comprehensive learning and development programs.”

Caio Bersot, Communications Manager, Rank-It.ca:

“My biggest hope is to give teammates even more autonomy and opportunities to showcase their work on strategic areas of growth for the business. The idea is to tell people less about how to do something but present them with a project and ask them to find the solutions. This is also part of my biggest challenge for 2024.”

Michael Maximoff, Co-Founder, Belkins:

“Our biggest accomplishment in 2023 was optimizing our training process and streamlining our sales process across the agency. As a thriving B2B agency, we depend heavily on the sales performance and results of our sales teams, and this is something we managed to perfect in 2023. Introducing and mastering new workplace tools has been our biggest challenge in the workforce for a couple of years now, but we’ve gotten really good at implementing new systems and training our workforce to utilize them.”

Vipin Nayar, Founder, Avivdigital.in:

“Our main focus for 2024 is cultivating a culture of continuous learning and upskilling within our workforce… One insight we’ve gained is the importance of fostering a strong sense of community even in a remote setting.”

9. Supporting mental health

Prioritizing mental health and creating support programs for employees is mentioned as a significant aspect of workforce management.

Mark Voronov, Co-Founder & CEO, SocialPlug:

“An essential lesson from 2023 is the importance of mental health and well-being in the workplace. As leaders, we must prioritize this to ensure a healthy and productive work environment.”

Jonathan Rosenfeld, Founder and Managing Attorney, Rosenfeld Injury Lawyers:

“Looking ahead to 2024, our primary aspiration in terms of managing our workforce is centered around enhancing employee well-being, particularly focusing on mental health support programs. Acknowledging the inherent stresses in the legal profession, we are committed to establishing and expanding initiatives that prioritize the mental and emotional health of our team members. This includes implementing counseling services, stress management programs, and fostering an open dialogue surrounding mental health within our workplace. By actively addressing these concerns, we aim to create a supportive and resilient workforce that can navigate the challenges of the legal profession with a stronger sense of well-being.”

10. Establishing DEIB

Striving for diverse, equitable, and inclusive workplaces is a goal for many, with a focus on fostering a supportive and inclusive environment.

Ben Richardson, Founder & Director, Acuity Training:

“I aim for significant strides in fostering diverse, equitable, and inclusive workplaces through data-driven approaches. This could involve leveraging AI to mitigate biases in hiring and promotion. I also plan to integrate monitoring diversity metrics and implementing inclusive policies and practices.”

Max Williams, Founder & CEO, Herobot.app:

“Looking ahead to 2024, our goal is to enhance diversity and inclusion initiatives within the team. We plan to implement targeted recruitment strategies, mentorship programs, and training sessions to create an even more inclusive workplace.”

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11. Adapting to change and being agile

Preparing and strategizing for the dynamic and evolving nature of work is ongoing in this fast-changing working world.

Ryan Carrigan, Owner, moveBuddha:

“Our biggest accomplishment was handling the volume that we did with minimal marketing outside of SEO efforts. We didn’t partake in many social media trends, nor did we take an avid interest in video marketing, we just posted blog content and worked to improve our SEO and the business kept coming. I am proud of my team for the hard work they did with minimal preparedness for what came.”

Vladimir Terekhov, CEO, Attract Group:

“Our single biggest accomplishment in 2023 was the successful implementation of a remote-first work policy. We managed to maintain productivity and team cohesion despite the physical distance, which was a significant transition given the previous emphasis on in-office collaboration.”

Christy Pyrz, Chief Marketing Officer, Paradigm Peptides:

*With the pace of technological advancements one of the biggest challenges that we faced was upskilling our workforce to use them. AI, machine learning, and other developments happened at such a fast rate and had such a massive impact on our industry, that maintaining a high level of proficiency in them became imperative for us to be able to create our most effective marketing campaign efforts.*

Billy Parker, Director, Gift Delivery Co.:

“In 2023, our single biggest accomplishment in terms of managing our workforce was our successful implementation of a remote working policy. This allowed us to increase our productivity and efficiency while still providing our employees with the flexibility and freedom they needed to succeed.”

Larry Snider, VP of Operations, Casago:

“Our biggest employee management success for 2023 was a successful transition back to our pre-pandemic systems. Many employees have still remained remote or adopted a hybrid schedule, but overall we have managed to create a schedule that balances the needs of our business and our employees.”

Vlad Khorkhorov, Co-Founder, WebsitePolicies:

“In 2023, our crowning achievement at WebsitePolicies was successfully automating the customization of legal policies using advanced AI algorithms. This innovation enhanced our service efficiency and allowed our legal team to focus on more nuanced and complex client consultations. It was a pivotal moment in marrying legal expertise with cutting-edge technology, greatly benefiting our clients and team.”

What did 2023 look like for you and what’s in store for 2024? Share your own workplace story with us and we’ll work with you to get it published!

The post SMB wins and lessons of 2023 – and what’s planned for 2024 appeared first on Recruiting Resources: How to Recruit and Hire Better.

PaneraTech: rapid scaling of hiring with digital savvy

Keith MacKenzie — Wed, 27 Dec 2023 16:34:33 +0000

In an enlightening interview with Workable, Nicole Madden, Human Resources Business Partner at PaneraTech, shed light on the dynamic and comprehensive human resources strategies employed at the company.

PaneraTech, known for its pioneering role in digitizing traditional manufacturing industries, has experienced rapid growth and change over the past several years, necessitating steep scaling of new hires. This meant a fourfold increase in employee numbers in less than a year and a half.

Nicole’s insights offer a window into how the company has navigated these changes, focusing on collaborative culture, innovative onboarding and mentorship programs, and leveraging technology in talent acquisition.

What is PaneraTech?

“We are pioneering the digital transformation for heavy manufacturing industries,” Nicole says of PaneraTech.

“So when you think of industries like glass, steel, aluminum – those are big, traditional industrial industries, and we are helping them digitalize, which can be a challenge because they’ve been around a long time.

“They’ve been doing things like this for centuries. And now we are introducing a better way to really manage your operations more efficiently with digital technology and solutions.”

That ‘better way’ is now in high demand in the manufacturing sector, which means Nicole’s talents in recruitment are in need.

Rapid company growth – and retention

First off, that growth has considerable. when Nicole joined the company in August 2022, PaneraTech had about 27 employees worldwide.

“We were expecting to grow … We always thought, we’re double in size and have about 50 employees at the end of the year. We have about 100 employees now.”

And what’s more, as of December 2023, PaneraTech has retained all those employees.

In order to meet those expectations of her role, Nicole spearheaded several initiatives. Among other things, she did the following.

1. Leverage technology for talent acquisition

When you work in a specialized industry, talent can be hard to come by.

“Sometimes like when we were finding field technicians, that was a big challenge because you want someone that has familiarity with furnaces, right? And unfortunately, they were working for our customers,” Nicole says, adding that she would have to be strategic about looking at past histories of potential candidates.

She’s quick to point out the benefits of technology especially in such a specialized sector where optimal talent is hard to find. For instance, she’ll actively seek out professionals on LinkedIn with outreach messaging.

Workable’s AI Recruiter feature also came into play here.

“Workable also identifies talent because they have … their own database too. You have candidates that might align that you can recommend. That’s very helpful as well,” Nicole says.

“And then when we open different jobs with candidates that have skills that might overlap from another one. We might not even be thinking about those candidates, but Workable always gives that reminder, like, ‘Hey, you want to check out some passive candidates?’, and it actually is helpful.”

Referrals also made a huge difference in essentially quadrupling her workforce in less than one and a half years.

“Workable Referrals was amazing because it’s digitalized. We have a lot of people making shares from Workable Referrals to share the jobs on their page on linkedin… We’ve had a third of our hires come from referrals.”

Nicole also was quick to point out some of the other things she liked about using Workable, including being able to customize each stage of the hiring process, keep notes in scorecards during interviews, and work across the hiring team.

2. Sustain a collaborative culture

When a company grows rapidly, there can often be challenges. But at PaneraTech, the outcome has been wholly positive.

“You have new leadership change management, all these different aspects occurring,” Nicole explains. “This is usually when people jump ship, right? They’re like, ‘it’s a little bit too crazy.’ Luckily, we have not had that occur.”

This is due to PaneraTech’s collaborative spirit.

“We’ve been able to focus on collaboration, collaborating with our existing team, helping them be involved with us – onboarding and bringing on our new team members so that everybody is working cohesively together and they’re familiar with one another.”

3. Establish a mentorship program

One method of collaboration was a ‘buddy system’ involving top talent in each of PaneraTech’s departments.

“When we onboarded a new hire, we would pair them with that individual,” Nicole explains.

“And then we would meet with that same buddy trainer… just make sure that they are covering the right aspects. Making sure that new hire really understands our culture that they can reach out and collaborate to whomever we have open doors.”

4. Ensure a smooth onboarding

Workable was also instrumental in onboarding new talent, Nicole says..

“The capabilities of being able to create the requisition so that you can manage each job, manage each hire, that just really helped us with the logistics of being successful with our onboarding,” she adds about the HR software.

“We were able to implement a new onboarding process and a new recruiting process – and having the recruiting process, the onboarding process in place helped us with being successful and bringing on so many people.”

5. Survey for continuous improvement

Employee surveys were crucial in ensuring a consistent loop of feedback that Nicole and her colleagues at PaneraTech could act on, including new hire experience.

“We asked: how was onboarding? How can we improve it? How were your connections with different team members? Were they helpful?

“And it just helps us give insight because if they say yes, then great. We know it works. But if they say no, then we can pinpoint and identify exactly what might have went wrong and see how we can improve it.”

6. Be flexible across time zones

Out of the 100-odd employees at PaneraTech, about 60 of them are in Turkey, Nicole tells us. There’s also 15 in the United States, plus team members in Germany, Italy,, Portugal, and India. There are plans in place to expand to Brazil.

So what does that mean for working across different time zones and cultures? Nicole responds that she loves the diversity of the company.

“I’ve always been a people person,” she says. “I love different people, diverse people, like I think mainly anybody that went to college, you deal with different backgrounds, diversity all the time. And I thrive in those types of environments.”

Overall, it’s been a positive learning experience.

“I like learning from other people,” she says. “This was my first time working at a global company, especially leading it as HR. So this was a big role for me and I feel like it’s been a great transition working with people in different cultures, understanding their thought process, seeing how they work differently because they are working heavy and hard.

“So it challenges you to be like, maybe I could do a few more hours. Feed off of each other, even though Turkey is like seven hours ahead of us.”

She adds that people might think collaboration would be by email in this situation, but it’s not like that at all.

“No, we make time,” she says. “When we have our company town halls, we have town halls every quarter. When we do that, it’s always at 8 in the morning, because we want to make sure that we’re not having them work super late and we can get up and start the meeting at 8.”

A digitized – and human – approach to hiring

Ultimately, Nicole’s strategies represent a modernized and proactive approach to hiring, particularly in a fast-evolving and technology-driven industry. The use of innovative methods like the buddy program and reliance on feedback through surveys demonstrate a commitment to continuous improvement and employee well-being.

As PaneraTech continues to expand its global footprint, Madden’s HR strategies offer valuable lessons in managing change, fostering a collaborative culture, and embracing technology to meet the challenges of a dynamic workforce.

And, she shares, “Workable definitely played a vital role in us being successful in identifying the talent, managing the talent, and also onboarding the talent … I would be lying if I said we could do all this without our ATS.”

The post PaneraTech: rapid scaling of hiring with digital savvy appeared first on Recruiting Resources: How to Recruit and Hire Better.

Making sense of 2023: the 7 biggest trends of the year

Keith MacKenzie — Tue, 26 Dec 2023 15:16:35 +0000

It’s getting boring to say that “this year has been a crazy year” – because honestly, since 2020, it feels like every year has been more turbulent than the previous one.

Nevertheless, it still calls for a breakdown of the main trends that we saw throughout the year. Without further ado, let’s have a look at the top seven developments of 2023:

1. Layoffs

2023 saw a continuation of the previous year’s trend with the tech industry experiencing more than 240,000 job losses, a 50% increase from the prior year.

Major companies like Google, Amazon, and Microsoft, along with startups across sectors, announced significant cutbacks.

It wasn’t just that there were more layoffs – according to the layoff tracker, Layoffs.fyi, we saw 1,064 companies laying off 164,969 employees in 2022 and 1,179 laying off 261,847 in 2023. So, the number of companies hasn’t grown so much as the number of people who lost jobs.

The reasons range from economic caution to a shift from growth to efficiency. The layoffs have profound impacts on innovation, company pressures, and the availability of talent for growing businesses.

We may not see the end of it yet. Layoffs are anticipated by four of 10 companies going into 2024 according to a ResumeBuilder.com survey.

2. Job turbulence

In 2023, the job market across the UK, US, and the APAC region showcased distinct trends reflecting their unique economic landscapes, technological advancements, and employment policies. In short, 2023 was a volatile year.

United States

The US saw a mixed bag of employment changes over the year. According to the US Bureau of Labor Statistics, there was a robust increase in total nonfarm employment, with significant contributions from sectors like leisure and hospitality, health care, and professional and business services. Specific areas like retail trade and transportation also showed growth, indicating a recovering and adaptive economy.

Also according to BLS, manufacturing and construction sectors demonstrated modest growth, signifying a sustained demand for goods and infrastructure development.

Meanwhile, the information sector experienced fluctuations, reflecting the dynamic nature of the tech industry and its impact on job numbers.

United Kingdom

The UK experienced a decline in job vacancies, falling for the 17th consecutive period according to the UK’s Office for National Statistics (ONS), yet still above pre-pandemic levels.

This indicates a cooling job market but with a sustained demand for labor higher than historical averages.

The UK saw significant numbers of working days lost due to labor disputes, particularly in the health and social work sector, indicating industrial relations strains. Despite this, the overall number of workforce jobs reached a record high, suggesting an expanding labor market.

Asia-Pacific (APAC)

The APAC region solidified its position as a global service leader, with countries like India, China, and Malaysia offering cost-effective and skilled labor.

However, hiring witnessed a slowdown in major markets such as Singapore and India, indicating a more cautious approach to employment amidst economic uncertainties, according to the workforce consultancy group Resourc e Solutions.

The group also noted significant shifts towards a tech-driven economy, formal upskilling programs, and a surge in ESG-related job openings

It continues to be an unpredictable job market for many around the globe – and, again, 2024 will likely see the same trends as 2023.

3. Salary trends

In 2023, the conversation around salaries evolved significantly, reflecting broader economic trends, legislative changes, and shifting cultural attitudes towards pay transparency and equity.

United States

The year saw significant salary increases across industries in the United States, according to the Conference Board’s US Salary Increase Budgets 2023-2024 – with an average increase of 4.4% from 2022. That’s expected to continue into 2024, with increases predicted to be an average of 4.1% from 2023.

Why? The report points to talent shortages, inflation, and tech developments as major contributors.

United Kingdom

Meanwhile, the UK saw a notable 7.3% annual growth in regular pay according to the UK’s Office for National Statistics, showing a strong but slowing wage increase trend.

This especially was seen in the public sector, a sign of government moves to retain and attract new talent in this unpredictable environment.

Increased transparency

Salary transparency is also a thing. Notably, the UK government launched a pilot project aimed at increasing pay transparency to break down barriers for women and other underrepresented groups. It’s a step towards addressing overall salary equity, including the gender pay gap.

Meanwhile, back in the US, a number of states including California, Colorado and New York have introduced salary transparency laws – there’s more, of course. Plus, a handful of municipalities are doing the same. More legislations are coming in 2024 (Hawaii) and 2025 (Illinois). It’s likely a sign of things to come.

How do people feel about that? It’s generally positive, according to a ZipJob study – 65% of respondents say they would like to ask, or have already asked, about a colleague’s salary.

4. The four-day work week

The year also saw increased experimentation with the four-day work week.

Various companies across the US, Canada, Australia, and other countries participated in six-month-long pilot programs organized by 4 Day Week Global – with a comprehensive report from the group citing increases in work efficiency and work-life balance as a result of the project.

Governments are also backing pilot projects, including at the state level (with more than 60 UK companies trialing it to the end of 2022) and the provincial level (including Ontario’s Bill 55 – Four-Day Work Week Act).

This kind of thing will continue as companies (and employees) experiment with alternative schedules. The death knell of the 9-to-5 system has long been predicted – and we’re seeing it unfold in real time.

5. Growing skills and talent gaps

The year also saw growing skills and talent gaps across industries, thanks to tech developments, evolving work, and educational misalignments.

Meanwhile, a report from Wiley University in Texas noted an increase in employers reporting skills gaps from 55% in 2021 to 69% in 2023. It also found that one in four (26%) say they’re unable to hire qualified candidates due to skills gaps.

A Harvard Business School report emphasized the urgent need for US-based employers to actively partner with local community colleges to close the middle skills gap. The nature of middle-skills jobs is evolving faster than educational institutions can adapt their curriculums, leading to a significant disconnect.

Another study from DeVry University in Illinois took a deep dive into the state of upskilling and the barriers to professional development. It found that 97% of workers and 96% of employers say that upskilling is essential or nice to have – but just one in three workers say employers are living up to their responsibility to upskill them for the future workplace.

This means greater emphasis on on-the-job training and L&D initiatives going into 2024 – and higher value being placed on workers who are agile and willing to learn (and roll with the punches, too).

6. Increased stress for workers

Due to the economy and layoffs – and continued emphasis on productivity for those “left behind” in the workplace with an increased burden on maintaining productivity – workplace stress was a huge factor in 2023.

Stress, burnout, loneliness, and anxiousness have skyrocketed, according to Calm’s Workplace Mental Health Trends Report: The Future of Work.

Also, the ongoing seesaw between working from home – with its added emphasis on output and productivity – and returning to the office continues to be a factor in 2023, again exacerbating the mental well-being of workers.

The hybrid work model continues as a growing trend, and it’s worth watching how this develops into 2024 as a potential mitigator for stress, as well as mental health support for teams.

Our survey report from 2022 on mental health in the workplace also reveals a lot about what you can do as an employer in that area.

7. The explosion of AI

And finally – the entrance of artificial intelligence into everyday society had huge impacts, especially in the workplace. A global survey report by McKinsey titled The state of AI in 2023: Generative AI’s breakout year noted that 79% of workers have had some exposure to generative AI in their workplace, with 22% adopting it in their workflows.

Plus, two out of five (40%) organizations, meanwhile, planned increased AI investment going forward.

And we really hate to come full circle to the first highlight at the top, but this may also impact job security with 44% of employers saying AI will likely replace employees in 2024 according to a ResumeBuilder.com survey.

Meanwhile, in December 2023, Workable released a survey report on AI in Hiring and Work that found 62.5% of hiring managers utilized AI tools in their hiring processes over the past year. Nine out of 10 (89.6%) found they were able to hire more quickly, and 85.3% said they saved time and money invested in the hiring process.

Despite all the doom and gloom, there’s some interesting opportunities for optimism here.

We don’t see AI going anywhere soon – Workable has incorporated the technology into its own software with huge benefits. Watch for more developments in this area in 2024.

Meanwhile, what did 2023 look like for you and what’s in store for 2024? Share your own workplace story with us and we’ll work with you to get it published!

The post Making sense of 2023: the 7 biggest trends of the year appeared first on Recruiting Resources: How to Recruit and Hire Better.

Why a growing business needs an HRIS soon (and cheaply, too)

Alexandros Pantelakis — Wed, 27 Dec 2023 13:38:25 +0000

A Human Resource Information System (HRIS) is a tool that has become not just a luxury but a necessity for growing businesses as ink to a pen. This article isn’t just about what an HRIS can do, it’s about why your business needs an HRIS sooner and more cost-effectively than you might think.

What is an HRIS system?

At its core, an HRIS is a software solution designed to manage and automate many of the routine and administrative tasks associated with human resources.

But it’s more than just a digital assistant.

An HRIS encompasses a wide range of functionalities, including employee data management, payroll, recruitment, benefits administration, time and attendance, and much more.

It’s the central hub from which you can steer the ship of your HR department, ensuring that everything from onboarding to offboarding runs smoothly.

While HRIS focuses on information management, Human Resource Management Systems (HRMS) and Human Capital Management (HCM) might offer broader functionalities, including talent management and strategic HR planning.

Choosing the right system depends on your business’s specific needs and growth stage.

If you are completely new to this, consider first reading about what an HRIS is and how to determine if you need one.

When should I get an HRIS system for my business?

Determining the right time to invest in an HRIS can be daunting. However, certain indicators suggest it’s time to make the leap.

If your HR team is overwhelmed with administrative tasks,
if errors are becoming more frequent,
if you’re struggling to meet compliance requirements,
if your business is scaling rapidly and the complexity of managing your workforce is increasing

…then an HRIS can provide the necessary support to manage that growth effectively.

For growing businesses, early adoption of an HRIS can be particularly beneficial, especially when they surpass the number of 25 employees, which triggers compliance requirements.

For growing businesses, early adoption of an HRIS can be particularly beneficial, especially when they surpass the number of 25 employees, which triggers compliance requirements.

Implementing the system when the business is still manageable in size allows for smoother integration and adaptation, setting a solid foundation for future expansions.

Why do you need an HRIS sooner and cheaper?

The question isn’t just why your business needs an HRIS, but why it needs one sooner rather than later and at a cost that won’t break the bank.

The answer lies in the compound benefits that an HRIS brings over time. Early adoption of HRIS technology can lead to significant long-term savings and efficiencies.

Firstly, it reduces the labor hours spent on manual tasks, decreasing the likelihood of costly errors, such as those related to compliance or payroll.

Secondly, it allows for a more strategic allocation of HR’s time towards talent management and employee engagement, activities that directly contribute to your company’s culture and bottom line.

Furthermore, as your business grows, the cost and complexity of implementing an HRIS will only increase.

Early adoption means you can integrate the system into your processes gradually and at a smaller scale, making it more manageable and cost-effective.

Early adoption means you can integrate the system into your processes gradually and at a smaller scale, making it more manageable and cost-effective.

This proactive approach not only positions your business to manage current challenges more effectively but also equips it to handle future growth with agility and foresight.

What does the market think about the HRIS?

A small company spends about 10 weeks before choosing an HRIS, which reflects the importance they place on it. However, this factor needs to be eliminated.

Time is not a problem when you proactively act for your business and check your options. The good news is that the sooner you choose the sooner your implementation will start.

People in the market believe that using an HRIS will increase their functionality and this is true. Utilizing technology to:

Can help you save a lot of time and increase productivity and efficiency quickly for your organization.

The future of HRIS technology is promising and is set to improve how businesses manage their human resources.

Emerging trends include the integration of artificial intelligence and machine learning to provide predictive analytics, further automating and enhancing decision-making processes.

We’re also seeing a shift towards more user-friendly, mobile-optimized systems that reflect the modern workforce’s needs.

As these technologies continue to evolve, they’ll offer even more sophisticated tools to manage, engage, and develop talent.

Don’t miss the opportunity to be part of it.

The post Why a growing business needs an HRIS soon (and cheaply, too) appeared first on Recruiting Resources: How to Recruit and Hire Better.

CTW: Attracting talent through tech and student communities

Alexandros Pantelakis — Fri, 22 Dec 2023 13:49:43 +0000

I’m Nobu Sato, HR professional and recruitment expert. Our story is one of exponential growth, from releasing a handful of game titles to becoming a dominant force in our market.

This growth wasn’t just about numbers, it was about continuously pushing the boundaries of creativity and technology. However, with growth comes the challenge of scaling our team effectively.

The talent attraction challenge

Joining CTW in the midst of a boom was a wake-up call to the need for a structured hiring process. The transition from managing a few titles per year to handling an ambitious pipeline required a rapid scale-up in talent across various roles.

The lack of structured hiring practices was a significant hurdle, leading to uncertainty and slow decision-making. As the company aimed for the stars, it was clear we needed a solid foundation from which to launch our talent acquisition efforts.

Adopting a strategic talent acquisition process

When I joined CTW, the recruitment process was intuitive but unsystematic, a reflection of our startup roots but inadequate for our expanding needs.

1. Approaching the definition of talent in a new way

To address this, I proposed a holistic talent definition framework, emphasizing motivation, behavioral competencies, skill competencies, and cognitive abilities.

This wasn’t just about identifying the right skills but also about understanding how a candidate’s motivation and cognitive style would fit within the fast-paced, innovative culture of CTW.

2. Implementing structured interviews

We transformed our interview process, incorporating structured techniques to assess candidates against these new, comprehensive criteria.

Instead of generic interviews, we implemented scenario-based questions and practical tasks that provided insight into how candidates solved problems, adapted to new information, and worked within a team.

This approach allowed us to gauge not just what they could do, but how they thought, collaborated, and could potentially innovate within their roles.

3. Making the right decisions, faster

Additionally, we recognized the importance of speed and agility in decision-making.

We streamlined our approval process, enabling team leaders to make quicker, more autonomous hiring decisions aligned with the defined competencies.

This shift significantly reduced our time-to-hire, a crucial factor in a competitive talent market.

4. Training our hiring managers

To ensure consistency and fairness, we also introduced regular calibration sessions where hiring managers could align on what excellence looked like for different roles.

This practice helped in maintaining a high standard across the board and fostered a shared understanding of what success looked like at CTW.

This change in recruitment was not just about filling positions more efficiently; it was about building the foundation of a workforce that could carry CTW’s vision forward.

It was a shift from a reactive hiring approach to a strategic talent acquisition process, one that aligned closely with our long-term goals and cultural values.

Engaging with tech and student communities

After establishing a completely new approach in our hiring process, we needed to enhance our initiatives to attract new talent from the tech and student communities.

In our quest for talent, we recognized the importance of proactive engagement with the communities where potential candidates thrived.

Our strategy was multifaceted, reaching out through various platforms tailored to different segments, from WeChat for Chinese-speaking candidates to LinkedIn for a global audience.

We established a regular presence at webinars, offline meetups, and organized office tours to showcase our culture.

These initiatives were not just about filling current vacancies but about building a pipeline of future talent by embedding ourselves in the ecosystems of potential hires.

Nurturing early-career talent

CTW has dedicated substantial efforts to nurturing early-career individuals, particularly those with a technical focus.

We’ve established strong relationships with universities and educational institutions. This isn’t about one-off career fairs, it’s about sustained interaction through seminars, workshops, and guest lectures where we don’t just talk about CTW but engage in broader discussions about the tech industry, emerging trends, and real-world applications.

We position ourselves as a source of knowledge and inspiration, not just potential employers.

In these sessions, I personally take time to focus on the nuances of tech roles and the job market, sharing insights that are valuable regardless of whether students choose to apply to CTW.

This approach has helped us build trust and rapport with the early-career community, positioning CTW as a company that truly cares about their development.

Our referral program is particularly innovative. It’s not just about incentivizing our employees to recommend potential candidates; it’s about creating a community of advocates for CTW.

We offer substantial rewards for successful placements, but it’s more than that – it’s about acknowledging the value of a strong internal network and the quality of hires it can bring.

We’ve found that early-career individuals are more likely to trust and be attracted to companies recommended by their peers or mentors.

Moreover, I’ve made it a point to keep in touch with many individuals I’ve met, from interns to young professionals.

These relationships often provide continuous feedback and insights, not just about CTW’s perception in the market but also about evolving expectations and desires of young talent.

This has been invaluable in shaping not just our recruitment strategies but our broader company policies and culture.

Internally, we’ve fostered a culture where young talent is encouraged to take initiative and drive change. We don’t just provide a job; we offer a path to growth, learning, and impact.

By involving them in significant projects and providing clear paths for advancement, we ensure that early-career professionals feel valued and invested in our mutual success.

Adopting cutting-edge technology in recruitment

Adopting Workable as our Applicant Tracking System (ATS) and Candidate Relationship Management (CRM) tool was a game-changer.

This platform allowed us to streamline our entire recruitment process, from sourcing to offering.

The integrated job boards brought a diverse array of candidates, while features like scheduler and communication tracking ensured that every stakeholder was informed and engaged throughout the hiring process.

The ability to analyze candidate motivation, salary expectations, and interview feedback in one place significantly reduced our lead time for making offers.

Moreover, Workable’s reporting and analytics capabilities provided us with valuable insights, helping us continually refine our strategies and improve outcomes.

Measuring success and continuous improvement

The impact of our recruitment strategy was measurable and significant. We saw a dynamic increase in the number and quality of candidates, a reduction in time-to-hire, and a boost in team satisfaction with the recruitment process.

Our efforts paid off, with CTW outperforming external recruiters and becoming a recognized name among potential candidates.

However, we didn’t stop there. We established a feedback loop, regularly reviewing our processes, and incorporating insights from candidates, new hires, and hiring managers.

This culture of continuous improvement ensures that our recruitment strategies evolve in line with our growth and the changing dynamics of the job market.

Our commitment is to stay ahead, continuously seeking out and nurturing the brightest minds.

Nobu Sato is an HR professional and recruitment expert in Japan. With over 10 years of experience in HR and project management, he has worked with multiple corporations across different industries and regions. In addition to the game industry, he also have experience in internet, logistics, and robotics. He is proud to lead the CTW Talent Acquisition team, which was a finalist for The Best Talent Acquisition Team in Japan 2022.

The post CTW: Attracting talent through tech and student communities appeared first on Recruiting Resources: How to Recruit and Hire Better.

Quiet quitting: if you can’t beat them, roll with them

Suzanne Lucas — Wed, 24 Aug 2022 12:54:15 +0000

Jordan Hart at Business Insider defines quiet quitting as “refusing to do more work than they’re being compensated for.”

The Washington Post reported that Kathy Kacher, founder of Career/Life Alliance Services, describes quiet quitting as a synonym for employee disengagement.

In Australia, the Sydney Morning Herald quotes a quiet quitter, software engineer, and musician, Zaid Khan, who says, “You’re still performing your duties, but you’re no longer subscribing to the hustle-culture mentality that work has to be your life.”

Then we go into a bit of humor on Twitter with, “We rebranding “quiet quitting” to “acting your wage.”

We rebranding “quiet quitting” to “acting your wage”

— Dad 2.0 – now containing more corn (@DadaBaseThought) August 19, 2022

Refusing to work more, not hustling, disengagement, doing what you’re paid to do, and nothing else, it doesn’t really matter when it comes to how HR approaches quiet quitting. Instead of arguing over where it comes from and the exact definition, you can look at your workforce and decide if you want to do anything.

Do you want disengaged employees?

Of course, you want your employees to be engaged! To be happy! To be working their little hearts out!

Do you?

I mean, we have tons of research that shows how it’s good to have high employee engagement, but engagement is not synonymous with going above and beyond.

You don’t need all your employees to go above and beyond all the time. That’s asking for burnout. That’s asking not for a quiet quit – that’s asking for a full-on “I can’t take this anymore”.

The trick, says Harvard Business Review, is to get the employees super engaged by taking ownership of their work. According to HBR, “to build an inspired, committed workforce, you’ll need middle managers who not only know the organization’s purpose but also deeply connect with it and lead with moral power.”

Here’s a secret: All your employees know that no matter how engaged they are, no matter how much purpose they feel in the work they do, and no matter how inspired they are to do and be better and make the company better, you’ll fire them without a moment’s hesitation should financial problems or a new executive’s desire to reorganize comes your way.

OK, that was a bit harsh. If you’re a normal human, you’ll feel bad as you lay off people, but you’ll still do it. And your employees know you will.

https://twitter.com/bynkii/status/1561402919597080577

When their entire self-worth is wrapped up in their job – when their job is their everything – losing that job is psychologically and financially devastating.

Maybe, just maybe, having a workforce that isn’t all-in to the company message isn’t a bad thing. Maybe having employees who are well-rounded and have outside interests are good things.

The idea that you have to go above and beyond and dedicate your life to the company is something that most of your employees will never reach and (in reality) you don’t need.

Embrace the quiet quit

Whether it’s “acting your wage” or “refusing to hustle,” this isn’t a new concept. Most of your employees probably worked this way before the advent of this term.

It’s called being an average employee.

And let’s face it, your company is probably an average company. You probably never make the top 10 companies to work for, even on those local lists where you pay $5,000 to be included in “Your Town Magazine!”

You’re average; they are average. It’s a match made in heaven.

For your leadership, you do need engaged and dedicated leaders. And that’s why many companies give stock options and other long-term forms of compensation to their senior staff members. They need actual skin in the game if you want them to make work a priority over their lives.

Then you have the few people with their eyes on the corner office. They are willing to put in the hours and sell their souls on the gamble that it will work out, and they’ll grab the brass ring – or whatever we’re calling it these days. Whether for your company or your competitor, that’s what they are after, and they’ll do what it takes to get it.

Everyone else? They have jobs.

And that’s OK.

Your concern is if they are happy, compensated fairly, and work in an environment free from bullying, harassment, and illegal discrimination. They’d probably like a promotion now and then, but they ultimately want to come in, do their jobs, and go home.

They don’t want to have meetings at 10 p.m., or 6 a.m. They don’t want to spend their weekends staring at spreadsheets. And when you push them to do so, they may quit, or they may “quiet quit” and set and keep their boundaries.

That gives you a choice: Do you demand that they dedicate their lives to the company or do you acknowledge that you hired them to do a 9 to 5 job or equivalent, and you shouldn’t be upset when they do?

If an employee isn’t meeting expectations, then, by all means, coach, help, and put the employee on a performance improvement plan if necessary. But if the employee is meeting expectations and getting the job done and just isn’t all in for the company, smile and know your employee has that elusive work-life balance that HR says they want everyone to have.

If the employee is meeting expectations and getting the job done and just isn’t all in for the company, smile and know your employee has that elusive work-life balance that HR says they want everyone to have.

If the employee is hostile or sabotaging the work, then that’s not quiet quitting. That’s subversive destruction. Termination is the answer there.

But quietly doing the job you offered them? Brilliant. Long live the quiet quit!

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Who has the power to fire? It depends – to a degree

Suzanne Lucas — Mon, 30 Jan 2023 13:58:23 +0000

That’s not how it happens.

Who has the final decision-making authority for termination decisions? When is HR the decision maker? When is it the manager?

There needs to be more clarity around this issue

I posted three separate polls on this issue, all asking the same question: Who has the final firepower?

But for each, I gave a different situation:

1. Entry-level Jane is caught stealing other people’s lunches. HR wants to fire. Manager says keep. Who is the final decision maker?

Results: 59% manager, 41% HR.

2. Sr Salesperson Sally said a racial slur at an alcohol fueled company party. After investigating. HR wants to fire and manager wants to keep.

Results: 66% HR, 36 percent manager.

3. Mid-level Margaret is a mediocre performer. The CEO wants to terminate. HR wants to keep. Who has final say?

Results: 79% CEO, 21% HR.

What makes the difference? In the real world, there’s one answer.

The power comes from above

The US Declaration of Independence claims that people are “endowed by their Creator with certain unalienable Rights,” This is an excellent thing to keep in mind when thinking about where hire/fire power comes from. In a business, it comes from the “creator” or the current head of the company.

That can be the CEO, the owner, the president, or the board of directors. The person (or board) with the highest authority then can choose to grant power to someone else – but they can also yank it back.

Human Resources is not an outside, independent, watchdog organization that wields independent power. HR gets its power from the top. They are endowed by the company president (or whoever is in charge.)

So, if HR can fire employees against the will of the employees’ managers, that power comes from the president or CEO, and that can be revoked.

In other words, HR only has the final say when the CEO grants it. There’s always an appeal to the “higher power” over HR.

Of course, you won’t win that final appeal very often, but the CEO can always override what a manager or HR wants to do. (Of course, a court can override the CEO – since we’re talking about higher powers.)

When should HR have the decision-making power?

Unless the business you work for is very small, it’s unlikely that the CEO will be involved in day-to-day employment decisions. That would not be a good use of the CEO’s time.

And some companies do give HR more power than line managers. And this makes sense in some cases. For instance:

1. First-line supervisors are ‘green’

If your supervisors who handle the day-to-day operations tend to be new at managing, then it makes sense for HR to be the “final” decision-maker in these situations.

You see this often at places with many entry-level employees and shift supervisors who manage the shift but don’t do proper employee management.

2. When there is a potential legal issue

HR should consult with each manager before a termination, and managers should listen when HR points out a legal issue with the term. If there continues to be a conflict, you should contact outside counsel for an official legal opinion.

It is critical that “similarly situated” employees have the same employment standard. HR can help make that happen.

The ideal termination policies

In an ideal world, everything would be sunshine and roses and you would never need to terminate any employee. But, the best you can hope for in the real world is a consistent policy.

Management and HR should discuss every termination. The type of terminations you see on TV where a manager suddenly screams, “YOU’RE FIRED!” should never happen. The closest thing to happen is, “You’re suspended! Go home now, and we will contact you!

While the vast majority of employment in the United States is “at-will,” companies have to be consistent with their own policies, and they can’t fire someone for an illegal reason. For instance, you can’t fire someone because of their race, gender, or pregnancy. You can fire a Black, gay, pregnant woman, but not because she’s Black, gay, or pregnant.

Most companies have a progressive discipline policy, so there should be discussion, warnings, and a formal performance improvement plan for most terminations. Of course, particularly egregious behavior (stealing, sex at work, sexual harassment) should result in a prompt termination, but those should be run by HR so that everything is consistent and investigated thoroughly.

Note: Workable’s collection of policy templates includes an employee termination policy and progressive discipline policy, both of which can be tailored to your company’s needs.

When managers or HR fire without consulting each other, it sets up the company for more significant problems. Are you treating people differently and it (even inadvertently) results in different treatment for people of different ages or races (or other protected classes)? If John is fired for coming in late five times, but Sally gets a written warning for the same behavior, you might end up with a sex discrimination lawsuit.

HR should act as an advisor and consultant, and management should listen. If the two can’t agree on what should happen, they should escalate the decision to outside legal counsel or a higher-level manager. If the CEO overrides you (whether you are HR or management), make clear notes about what you recommended. After all, you want documentation should things go wrong.

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How to help employees return to office: it’s more than mandates

Suzanne Lucas — Tue, 27 Jun 2023 16:51:51 +0000

Salesforce tried to get people to come into the office by offering a donation to charity if they showed up. Farmer Group CEO Raul Vargas wanted people to return to the office – even though some had been hired as exclusively remote – and employees rebelled.

And Martha Stewart says America will “go down the drain” if companies don’t return to cubicle farms.

Then there’s the problem of empty office space because employees aren’t returning. This is a massive problem for the building owners and the restaurants and shops that sold to the people who worked in those offices.

Some restaurant owners are even moving their restaurants out of business districts and into the suburbs where their former patrons work.

In other words, we are seeing a huge cultural shift. But there is another issue with bosses wanting employees to return to the office: They need support from blue-collar staff to make this successful.

It’s not just about office workers

When people come into the office to work, there needs to be support personnel to make that happen. Someone has to clean the bathrooms, empty the trash, work as security guards, and welcome visitors at the reception desk.

The hotel I stayed at on a business trip had minimal housekeeping services. After discovering the comforter had makeup smeared on it from the previous guest, it took hours to get someone from housekeeping to change it.

(Unfortunately, I found the makeup in the morning. Shudder.)

While the hotel advertised daily housekeeping, that was the only time cleaners set foot in my room during my four-day stay.

McKinsey notes that hotel staffing is a tremendous problem at the moment. They give many ideas for fixing this, such as making the housekeeping staff clean only the rooms of people checking out and giving front desk employees cleaning responsibilities. These are probably not ideal solutions, but it speaks to the difficulty of hiring cleaning people.

help employees return to office

Offices need cleaning people as well. While cleaning office desks might be less disgusting than changing bedsheets, it’s still a low-paid labor-intensive job. With companies struggling to fill entry-level positions, people have options for employment.

Some high-level employees shared with me how their company wanted everyone in the office at least thrice per week after three years of working remotely. The bathrooms wouldn’t stay clean, and they couldn’t keep trash cans at their desks. All trash had to be in a central location to make it easy for someone to take it out.

While that might be part of running lean, paying someone earning a six-figure salary to walk across the office to throw away a piece of scrap paper is ridiculous.

And it’s not just cleaning: there is also a shortage of security guards. If you have employees in your office building, you need a security plan at a minimum and onsite security in many areas. With around two million violent acts committed in the workplace each year, it’s not practical to tell your employees to assume everything will be fine.

Even the commute is affected. For instance, Boston’s transit authority, the MBTA, is experiencing a staffing shortage that will ultimately lead to delays and cancellations – making it more difficult for workers to travel to and from their workplaces.

Your employees are not going to want to come back to the office if they don’t feel safe in their offices that they have to clean themselves.

Thinking about more than your employees

Most companies have outsourced tasks such as cleaning and security, and you may think your problem is to get your accountants and marketers back to the office. The other issues will magically take care of themselves. After all, it mostly did pre-pandemic.

But to successfully return to the office, you must ensure the buildings are clean and safe, or your employees will be even more unhappy at returning.

What you need to return

Your employees need a reason to come back, and it can’t be for your convenience or that you don’t trust them. They need to know they will accomplish more and have an excellent experience to get them excited about returning.

It’s perfectly OK to say this is the culture you want and to hire people who want to be in the office. But if you do this, you still need to ensure you have the support staff to keep the offices running.

And, of course, many jobs must be done in person to support remote workers. You still need someone to maintain company servers, and while they could stay at someone’s house, this is not a good idea in the long run. Your employees are ordering lunch from restaurants delivered by people working for DoorDash. People are out there working onsite.

It’s just white-collar workers who are not always working on location. Those people still need the cleaning, security, reliable commutes, and places to get lunch that everyone else needs. If you can’t guarantee you can meet those needs, it’s not a good time to insist that people work in the office.

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Women will work for less now – but employers can fix this

Suzanne Lucas — Fri, 04 Nov 2022 05:34:23 +0000

While money isn’t everything, there are definitely floors that each candidate won’t drop below. And post-pandemic, those numbers are shifting.

As of July 2022, the average wage for an American to switch jobs (the “reserve wage”) was $72,873. Averages skew toward the high end. All it takes is Bill Gates saying he’s willing to change jobs for $3.6 billion, and the average number goes up. Most Americans earn less than $72,873. A median figure would probably give a more accurate picture of what people look for.

But what’s more interesting is when you break it down by gender. The average reserve wage for men has gone up to $86,259 from the previous quarter, while the reserve wage for women dropped to $59,543.

That’s right. Men want more than they did in March, and women are willing to settle for less than they did in March.

What is happening here that women feel like they are worth less in July than they did in March?

The Fed does this survey three times a year, and the July numbers, released in August, are the latest. Maybe it was a blip. It doesn’t seem logical that with inflation soaring, women should be looking to settle for less. What’s going on here?

Settling for less to re-enter?

Caroline Fairchild, Editor in Chief of BFF, a website focused on cryptocurrency news for women and nonbinary people, has a theory that makes a lot of sense. She writes on LinkedIn:

Caroline writes: “My hunch is that the women who were out of the workforce during the pandemic are willing to accept less to get back in. Also, there is no understating the impact of no work or stressful work during the pandemic (women who stayed employed during COVID took on more responsibility) on the ability of women to negotiate for higher pay.”

She’s got a point. More women than men left the workforce in 2020, whether voluntarily or involuntarily. And they didn’t come back when businesses started to reopen and ramp up.

Eden King, Ph.D., a professor of psychology at Rice University, explains that this isn’t purely preference. Societal pressures meant that when childcare became near impossible to find, women felt pressured to stay home while their husbands and boyfriends worked.

“Instead of opting out,” King told the American Psychological Association, “women are being pushed out.”

Additionally, women in 37% of families have most or all childcare responsibilities. So when schools and daycare centers closed, women left the workplace to care for their children.

Workable’s Great Discontent survey report found similar results, with twice as many women as men to cite family priorities to be the reason they’re not working (39.4% vs. 19.3%). That’s just for the US – in the UK, females are more than six times as likely as males to cite family priorities as the reason why they’re not working (41.7% vs. 6.7%).

Hiring biases

Because more women left the workforce than men and, therefore, have more significant gaps on their resumes, it is harder for them to land new opportunities.

An Indeed study in 2021 found that 70% of people in “hiring positions … believed that an unemployed person would make a less productive employee.”

Yikes. No wonder women are willing to work for less. If they’ve been out of the workforce for two years and 70% of hiring managers openly admit that they favor the already employed, it’s no wonder women feel they have to accept less money.

Can businesses fix this?

Yes, they can. Here is what needs to happen.

1. Stop the bias against the unemployed

We talk about unconscious bias, but this is conscious bias – remember, 70% of hiring managers explicitly preferred employed people. Whether you lose your job or choose to stay home, you don’t lose your ability to gain new skills.

2. List accurate salaries in the job posting

If you want to stop women from working less than men, stop making people guess the market rate for the position. List an accurate range – with the top being what your actual top range is. (Plenty of people use the whole range but never hire above midpoint. Make the midpoint your top-listed salary if you won’t go above that.)

3. Offer more flexibility

Women want more flexibility than men do, while female-heavy careers tend to be the ones without flexibility. If you can offer flexibility, do. Even offering a hybrid schedule or the chance to choose what time to come in can make a huge difference in attracting female candidates.

4. Offer fixed schedules

While this may seem a direct contradiction to the above, retail, restaurant, and healthcare jobs often have unpredictable schedules. If you recall, women take care of the children more than men. Daycare is difficult enough to find with a set schedule and can be nearly impossible if you work opening shifts all this week and closing shifts all next week. For in-person shift jobs, let employees pick shifts and stick to them.

5. Promote from within

An MIT Sloan Management study found that women who reached executive levels had to quit jobs to move up. It’s not that they weren’t capable – they had to go elsewhere to get someone to recognize that. Make sure you evaluate your current male and female employees for leadership roles.

Will the pay gap between men and women ever be zero? Probably not, because men and women do have different preferences.

But, when women think they are worth less now than they were a few months ago, it’s likely not a preference issue – business decisions matter; yours included.

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Affirmative action in hiring: challenges and solutions

Suzanne Lucas — Tue, 15 Aug 2023 13:11:36 +0000

The Supreme Court recently ruled that educational institutions can’t use affirmative action to favor one race over another. Federal law has prohibited that in hiring for a very long time, and yet there is an extensive discussion about how this ruling – technically unrelated to hiring – will affect business.

Some big businesses – including American Airlines, Apple, Bayer, Ikea, Paramount, Starbucks, and Hershey – submitted an Amicus Curiae brief to the court saying that prohibiting universities from running their affirmative action programs would negatively affect businesses. These businesses (called Amici in legal terminology) state:

“An essential part of the diversity Amici seeks is racial and ethnic diversity. Given these priorities, Amici have a significant interest in how universities consider and admit applicants: they rely on the nation’s schools to educate and train their future workers.”

Because the court rule against the universities (specifically Harvard and University of North Carolina, but applicable to all universities that accept federal funding), are these businesses correct that this will have a negative impact on their companies? If we assume that the Amici are correct, here’s what businesses must do to overcome this problem and keep increasing their diversity.

Expand your entry-level recruiting

While people panicked about the effect this would have on Black students, they ignored a reality of American higher education: Everyone with a high school diploma can attend college somewhere. There are many schools with open admissions policies. Some schools will even help you get your GED or high school diploma so that you can attend college.

Another truth is that anyone admitted to Harvard or UNC, even with a boost from affirmative action, could gain entrance into another good school. Very few students get into Harvard, regardless of race or background. Every single one that has could easily excel at another school.

In other words: companies that focus their recruiting only on the top schools limit who can get a job. Rather than relying on schools to seek out diverse students, businesses can recruit diverse candidates at more schools.

Because you can do recruiting virtually, you don’t have to increase your college job fair costs by sending recruiters to every school you want to consider. Arrange video conferences and fly in top candidates.

Make your business a place people want to work

You will never increase your diversity if you strictly rely on recruiting people from universities. Getting people in the door is only a temporary fix if you don’t create an environment where everyone feels welcome.

A Workable survey found that businesses do focus on demographic diversity but need action plans once they get people onboard. What are you doing to make employees of all races and backgrounds feel equal and included?

Do you focus on building strong teams, or do you focus on pointing out differences? A recent episode of Freakonomics looked at whale hunting in the 19th century. Michele Baggio, an associate professor in the Department of Economics at the University of Connecticut, looked at whaling ships to study crew diversity’s impact on performance.

Baggio found something interesting that businesses can learn from today: the U shape involved in diversity. He said:

“We find that the relationship between racial diversity and performance measured by revenue has a U-shape. So that means that very homogeneous teams, they perform well. The revenue is high. As diversity increases, the revenue decreases, so there’s a cost to diversity until it’s just a minimum. And then a higher level of diversity, the performance increases again, and basically overweights the initial costs.”

In other words, when you have a group of similar people, adding a few outsiders makes the situation worse. But when you have a genuinely diverse crew, they learn to work together and bring an increase in strength.

As long as you focus only on getting a few people in the door rather than building an environment where people can use their strengths, you won’t be a great organization for all people.

Provide opportunities at the high school level

If it’s important to you to hire candidates from certain high-ranking schools, then help high school students achieve the grades, test scores, and experience burdens necessary for admittance. Instead of waiting for universities to find and train diverse students, find them yourselves.

Offer summer internships to low-income students – regardless of race – who wouldn’t necessarily have the parental relationships to get such opportunities. Provide donations to struggling schools for things like AP classes that wouldn’t otherwise be available. Ask school districts what they need.

Is a college degree necessary for success?

Do the jobs you struggle to fill need college degrees? If yes, do they need to be from specific schools? Do they need to be recent? Can you look at people with some life experience instead? What about people with alternative forms of training and education?

College is valuable, but it’s not the only experience of value. And pay attention to people who perhaps didn’t have the opportunities to do unpaid internships because they had to keep working fast food to feed themselves and their families.

Evaluate what you need in a role before using a university degree as a proxy for capabilities. This is more difficult, but you’ll value looking beyond big-name schools if you value diversity.

Remember Title VII

Title VII of the Civil Rights Act prohibits employers from discriminating on the basis of race. This means you cannot hire someone because they are Black any more than you can hire someone because they are White. You can seek out people from a wide variety of backgrounds, make your application process easy for all to apply, and advertise jobs on niche job boards, but you have to hire the best candidate, regardless of race.

That’s been the case for many years, and this ruling doesn’t change that. It only changes your traditional pipeline, so expand that pipeline.

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Office space trends: if you build it right, they will come

Suzanne Lucas — Tue, 19 Apr 2022 13:46:04 +0000

“It might seem counterintuitive to step up our investment in physical offices even as we embrace more flexibility in how we work,” CEO Sundar Pichai wrote in a blog post in April. “Yet we believe it’s more important than ever to invest in our campuses and that doing so will make for better products, a greater quality of life for our employees, and stronger communities.”

Pinchai isn’t the only one building office space. Builders are working on 146.6 million square feet of new office space in the United States. Are builders being hopeful or is there a point at which everyone fighting to work from home will start heading back to the office?

And maybe it’s not the office – maybe it’s the space and the location. If it’s dingy and gray and two hours from your home, of course, you don’t want to commute. But if it’s close by and bright with private space? Maybe that’s what people look for. For instance, even people who can work at home are choosing to go to a co-working space instead. You find one close by, they have all the amenities, and there’s opportunity to mingle or even collaborate with like-minded professionals.

Returning to the office gets a bad rap on social media, and some companies are recruiting directly from competitors that announce a return to the office:

From a CEO:

“Every time a competitor mentions return to office our recruiters reach out to their people. We’ve hired 15+ of their engineers in the last 2 months.”

So easy.

— Chris Herd (@chris_herd) October 3, 2021

Don’t take this to mean you don’t need an office. You may well need one, and if you do, you want an office that works for you and your business. Here are some thoughts about what your employees might want if you’re planning to be part of this new office trend.

Ban open office space

This office space trend was a money-saving plan sold on the idea that everyone would collaborate if they shared a table rather than having private space. It turns out, people hate it, and it doesn’t work. Researchers found that people interacted 70% less when they worked in open office settings. They were more likely to use email and instant messages when sitting in a shared space.

If you have a hybrid workforce, you need fewer desks, as not everyone will be in the office simultaneously. Use that to give people their own space. The point of people coming into the office is to have collaboration. Don’t waste that precious office time by having people send each other instant messages while they sit across from each other. Give people offices, or at the very least, cubicles, and watch the communication flow.

But be careful of hot-desking

Hot-desking means you come to work and set up wherever you can find it. People hate that office space trend too. And so you ask, how on earth do you set up private office space for everyone without hot-desking?

Easy. Have two workstations in an office or a cube. Set it up so Jane comes in Tuesdays and Thursdays while Jon comes in Mondays and Wednesdays. On the rare occasions where they are in on the same day at the same time, they can share that space. But, mostly, they’ll have their dedicated, private space.

After all, people like to leave their sweaters at the office or have a picture of their kids or cats on their desk. Hot-desking takes that option away from them.

Your office space reflects your brand

In some cities (for example, Boston), so much office space is empty that you can have your pick of places. What was once a premium space may be much more affordable now. You can be picky and use the cost savings to make your office space something that helps you recruit employees.

Yes, even though people clamor for remote work, remember that many do want to work in a hybrid environment and they’d like for that to be a lovely space. This doesn’t necessarily mean pool tables and bean bags in the break room, like the stereotypical tech startup, but it can mean quality office chairs, good climate control, and free parking.

It can also mean rethinking the office. The owners of a co-working space have to ensure that every person who rents a desk is happy with the space and amenities – with more value to an employee than they get if they work from home.

The owners of traditional office space only need to keep the big boss happy. Who cares if the cubicles are half size and 1970s orange? Employees do, in fact, and co-working spaces know it. When thinking about new office space trends, consider the value of coworking spaces for your employees.

Your employees need a reason to commute

Most white-collar jobs can be done at home. But, some are done better in the office. You need to give your employees a reason to come into the office – beyond just having a nice destination for work.

Maybe you have a good cafeteria or you’re near good restaurants. (Cities and restaurant owners would love it if your employees went out to lunch again.) Maybe you add a room for yoga or have an office space across the street from a fitness center. Then strike up a deal with the fitness center – your employees might appreciate that. Maybe it’s high-quality catered lunches, or a quality lunch-and-learn every Thursday for those in person.

You want to make sure your space reflects your brand. When someone walks into your office space, they should automatically know something about your business. If you’re in creaky, old, and dark basement rooms, it’s time to move upstairs and into the light – unless you’re in the business of keeping secrets.

Be honest about your office

Sometimes companies lie about remote work in their job postings – assuming everyone wants to work from home. They figure they’ll hire you, get you working for a few weeks, and then drop the bomb that you need to come into the office. Don’t do that – that will reflect poorly on your employer brand.

If employees have the choice on how they work – say so. If you want everyone in the office all the time, say so (and be prepared to see your applicants drop). If you want people to have a hybrid approach to work, proclaim that loudly on your job postings. And be honest about what that means.

If it means working from home twice a month and the rest of the time in the office, that’s very different from the opposite. Just be upfront!

For example, Gallup described a hybrid working situation like this:

“A flexible, casual and hybrid work environment that allows you to work on-site and from home (you will determine with your manager and team what hybrid looks like for you).”

Visa spells it out very specifically:

“Employees in hybrid roles are expected to work from the office two days a week, Tuesdays and Wednesdays with a general guidepost of being in the office 50% of the time based on business needs.”

That’s so much better than companies (which shall remain nameless to protect the guilty) simply have a remote/hybrid box checked off.

If your office space is welcoming and reflects a positive culture, it can be a powerful recruiting tool. People want to work at least some of the time in the office – but only if it’s a nice place to work.

Know what they want before you commit

We all love the “sunk cost fallacy.” We tend “to follow through on an endeavor if we have already invested time, effort, or money into it, whether or not the current costs outweigh the benefits.” If you have already spent big bucks remodeling office space or have three more years on your lease, you may wish to ‘protect’ your return on that investment by requiring everyone to return.

But, turnover can rapidly negate any justification for having space people don’t want to work in. Take the time to speak to your employees about what they want. You may find that the majority in fact want to be in the office. You may find the opposite. You won’t know until you ask the employees themselves.

By taking the time to speak with your current staff, you’ll be more likely to make a decision that reflects your current company culture – not just the culture you think you have. Keeping your current employees happy also goes a long way toward recruiting new ones. After all, candidates ask around about how much people like working there.

Will more and more people return to the office voluntarily, or are these builders full of wishful thinking? Is this new office space trend going to fizzle out? Only time will tell. But as you ponder what to do with your office space, think through how this reflects on your business and how it makes your employees feel. That will help you make the right decision.

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The agile recruitment process: hiring with leaner teams and budgets

Suzanne Lucas — Thu, 09 Dec 2021 14:24:22 +0000

Many businesses had massive cutbacks in 2020 and are trying to come out of that, but still operating on a shoestring budget and with a slimmed-down staff. Many companies laid off recruiters in 2020 (because you were cutting heads, not adding them) and now need to add – but recruiters are now at a premium.

What can you do? Here are five ideas to help you build an agile recruitment process, and hire when there aren’t extra people and extra dollars in the budget.

1. Target your recruiting efforts

The big job boards cost a lot of money and provide access to a wide variety of candidates. However, you don’t need a wide variety of candidates – you need candidates to fill your positions. Who cares how many plumbers there are in Pomona when you’re recruiting accountants in Akron?

Focus your recruiting efforts and money on niche job boards and through networking. You need to find people who can and want to do the jobs you need to fill. Narrowing your search can help you find those people.

2. Utilize your current employees’ networks

Everyone talks about networking to find a job, but you also need to use networking to fill positions. Who is likely to know a bunch of people that do X? Why, people who work for you that also do X!

Many companies have employee referral programs to help encourage people to refer their former colleagues, and that can be a reasonably inexpensive – and quicker – way to gather candidates. But, you can go a step further and ask hiring managers to take a look through their own networks and see what they can find. Have them look at their LinkedIn connections and see if anyone seems qualified.

This part of agile recruitment has another distinct advantage: Hiring managers know what they are looking for better than a recruiter can know, so if the hiring manager looks through contacts, something may pop out that a recruiter would overlook.

3. Focus on your current staff

Yes, we were talking about hiring, but too many companies make the mistake of focusing on hiring new people and forgetting about your current employees. For every employee you keep, that’s one less person you have to hire!

Take a look at what it takes to get new people in the door and make sure your current employees have that salary and benefit level. If all your competitors offer sign-on bonuses for new hires, your employees may jump ship if you can’t provide a stay bonus.

This seems like it costs a lot of money, right when you’re trying to stay lean, but what costs more?

Giving a stay bonus and a raise to a current employee who does a good job and is already fully ramped and trained; or
Going through the recruiting process, offering a market rate salary and a sign-on bonus to someone new?

And keep in mind you then have to train that person. No matter how experienced this person is, they still have to learn your systems and methods. It’s always cheaper to retain than it is to recruit.

4. Ask the employees themselves

Sometimes employees have insights that managers (especially senior managers) don’t have. This isn’t because managers are bad – it’s just that sometimes they don’t understand the day-to-day. They’re not in the trenches, after all.

When trying to run agile recruitment, ask the people who do the daily running what they need. Maybe no one sees a need for a senior team leader for their group because Jane is handling it well, and everyone likes her. Perhaps everyone wants the most is a group administrative assistant to help with the paperwork.

While it’s true that managers have a more empirical perspective of what’s needed and what’s not needed – but you won’t fully know unless you ask employees as well. Forget about traditional structures and ask away. You may be surprised how much you learn where you can cut back and which positions you need to target immediately.

5. Put the money where it counts

Often companies have salary budgets, travel budgets, and facilities budgets, and they cannot take money from one category to pay another.

Why?

What is the most important thing to your company? The default reaction is “the people!” That is probably true, but it doesn’t have to be. It depends on what your company does and what product or service you produce. It may be that the best use of your money is something that will automate tasks (including in recruitment itself), meaning you can have a smaller headcount.

But, I’ll tell you what it almost surely is not: your location.

Sure, location, location, location. But, with many people wanting (and expecting) to work from home and fewer people willing to do a long commute, having that downtown office space may not be the best use of your budget.

Of course, not all companies can or should have a fully remote workforce, but you need to consider the rent costs of where you are when you’re attempting to recruit people. If your employees commute long distances, moving to where they live may be better. If many jobs can be done at home, maybe a smaller office is in order.

Focus your money on the most important thing – which is probably your employees.

Recruiting isn’t easy at any time, but with tight budgets and high salary demands, it can be even more complicated than usual. Hopefully, some of these elements supporting an agile recruiting process will help you get through it.

The post The agile recruitment process: hiring with leaner teams and budgets appeared first on Recruiting Resources: How to Recruit and Hire Better.

WFH vs. RTO: what really works for your business

Suzanne Lucas — Wed, 13 Sep 2023 20:05:08 +0000

47% of Employees Say They’ll Quit if Employer Orders Return to Office Full Time!

Return-to-office orders look like a way for elite, work-obsessed CEOs to grab power back from employees!

It’s a battle of headlines, none of which are grounded in reality. First of all, only 12% of employees work exclusively from home, so 47% of 12% is a measly 5.6%, and the survey actually found they would start looking for a new job, not up and quit.

But somehow, “5.6% of employees say they will start looking for a new job if they have to return to the office!” doesn’t get all those juicy hits that headline writers crave.

The article from the second headline does not support the headline at all. Yes, CEOs are generally more work-obsessed than the average person, which is how they got to be CEOs in the first place. You don’t get the top job at a blue-chip company by working 37.5 hours per week. Is it possible that this isn’t a power grab but a foundation in reality?

We know, for instance, that remote school was in large part a disaster. Children did not learn well, and test scores dropped. Plus, children preferred to be in school. Perhaps these “elite, work-obsessed CEOs” simply understand something that the average employee does not.

But wait! Working from home can increase worker productivity by 77%!

OK, wait: the actual survey didn’t show that: it showed that 77% of people who worked from home reported being more productive.

How about the study that did an actual randomized control that found a 13% increase in productivity? Of course, that was one Chinese company, and the study took place over a nine-month period.

And, of course, other studies show that 2023 productivity is down, and those evil (ahem, elite work-obsessed) CEOs blame remote work.

There is no clear answer

All of this shows there is no way to make a blanket statement that remote work is good and in-person work is bad.

And what about hybrid work?

As someone who has worked in person, remote, and hybrid, I strongly prefer hybrid. (I work from home exclusively, so I’m not saying that in hopes of getting to work from home a few days per week. Rather, I’d love to have an office to go to.)

What you have to do is right for your own business. And that will vary from company to company and perhaps even department to department. Here are some tips to help you figure out what works best for you.

Elon Musk got everyone’s knickers twisted when he demanded that Tesla employees return to the office.

He said:

“Anyone who wishes to do remote work must be in the office for a minimum (and I mean *minimum*) of 40 hours per week or depart Tesla. This is less than we ask of factory workers.“

Elon to Tesla team: no more remote work pic.twitter.com/aSmZAAOm7G

— Whole Mars Catalog (@WholeMarsBlog) June 1, 2022

Tesla’s primary business is making cars. That means all the staff ultimately support the factory workers, who must be onsite.

If your business is retail, hospitality, healthcare, or manufacturing, consider your primary business when considering remote work. If the people ‘doing the work’ must come to work, you probably want your office staff to be there.

Yes, they probably can work remotely – just about anybody whose job involves sitting behind a computer can – but if your primary business is onsite, your people probably should be primarily on-site.

Otherwise, you end up with a two-tiered system. This can breed resentment among the people who do the hard work of meeting customer demands and building products.

At a minimum, you should focus on ensuring that everyone (except people with valid medical needs) works in the office at least some of the time.

Suppose your primary business is software development, a think tank, or something where absolutely everyone in the company can work behind a computer. In that case, having a largely remote workforce is much more logical.

But with that remote workforce, make sure you have plenty of opportunities for communication with each other!

Do you hire a lot of entry-level workers?

Experienced professionals know how the business world “works.” They know that savvy business people understand what is going on in other departments and are more likely to work to build relationships across the company – even in a fully remote situation.

New grads? Forget it. They don’t know how things are supposed to work. They don’t know how to run a meeting. They don’t know what they are doing, let alone what other departments do. They need training and lots of it.

And, despite Gen Z being raised on internet culture, they won’t learn how to work as adults unless you train them.

And, of course, you can’t just have the Gen Zs come into the office while everyone else works remotely. That’s a Lord of the Flies philosophy that doesn’t play well outside an English class.

If you need to train people from the ground up, you need people in the office both to be trained and trainers.

Is what you’re doing now working for you?

Are you remote? Onsite? Hybrid? Is it working out for you? Can you hire? Are your employees productive? What’s your turnover like? Sometimes, we spend a lot of time fretting about what we should do without considering whether what we are doing actually works.

If everything is going well and employees are engaged and productive, keep doing it. You don’t need to listen to the crowds shouting one way or another – there’s no perfect way to run a business.

Don’t use remote/hybrid/in-person work as a ‘fix’

If what you’re doing is not working and everyone is miserable, allowing remote work won’t solve the misery of anything other than the commute and the need to take a half day off when the washing machine repairman is coming.

If you have bad managers, remote work won’t fix it. If you have bad managers, bringing everyone into the office won’t fix it.

Your business may run better if everyone is in the office, if everyone is hybrid, or if everyone is remote. But make sure bad managers are the actual issue before you act. You can’t fix lousy management by changing employee location.

Overall, no single solution applies to every business. The working world isn’t that simple. Ensure you focus on what works for your employees and your business, and never mind the rest of them.

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4 lessons for employers from Reddit’s Antiwork community

Suzanne Lucas — Tue, 15 Feb 2022 14:29:50 +0000

Well, yes, but if you manage people or work in HR, you need to be aware of what is happening. With 1.7 million members, it’s not a majority of people overall, but it is where people are talking. Here’s what they are talking about.

1. Employees have options

Take this story: CEO said, “If you want to work from home, go work somewhere else,” so most of my team and I did just that.

The writer details how even people hired to work remotely were told they had one year to move their families to a town with an office. The employees responded by quitting in great numbers.

Is this a true story? Maybe. The number of people who quit may be an exaggeration, but it may not be. With more than 60,000 upvotes, though, it’s clear that this resonates with people.

This is a case where the CEO thought that the employees would fold and do whatever the company said. It turns out your power over your employees is limited. With lots of people hiring (the writer says he found a new job with a 50 percent pay bump), you have even less power than you did a few years ago. Don’t make an ultimatum thinking your employees will back down. They have options they didn’t use to have and a whole lot more guts.

If in-office work is important to your business, ask your employees how to go about it. Would quarterly all-hands meetings work? Monthly regional get-togethers? If it won’t, accept the turnover.

2. Insults are not the way to go

There’s this sign, for instance.

Whether this was put up by an out-of-touch owner or an angry employee, who knows? But, combined with the glut of “no one wants to work” signs and people struggling to fill positions, it’s not a smart thing to insult employees.

Or this handout from McDonald’s that reminded employees that “tax returns don’t last forever.” Yes, this is a true principle, but it’s insulting to your employees. The last thing you want to do is insult the very people you want to work for you.

You may think your employees just need to know that it will be harder to find a job again if they quit, but it comes off as condescending.

3. Don’t keep secrets

Not explaining things can also cause problems. “In the absence of information, people make stuff up,” says HR consultant Brenda Neckvatal. So, assume that when someone has a ridiculous complaint, it’s not that they are stupid or whiny, it’s that they don’t know what is going on.

Take this tweet from Jon C. Stone.

One reason people insist that you use the proper channels to change things is because they have control of the proper channels and they’re confident it won’t work

— Jon Stone (@joncstone) June 8, 2020

It’s now circulating on /r/antiwork and drawing considerable attention.

First, we need to acknowledge that in bad businesses this is absolutely true. But, in good ones, systems exist to make things better, but your employees may not understand why.

For instance, if Jon comes to his manager and says, “Look, I’ve done the research, and the market rate for this position is 10% higher,” he may feel like his manager is putting him off by saying, “I need to talk to HR.”

But, here’s what the employee doesn’t understand and you can explain to him that the manager doesn’t control the budget, jobs vary greatly even within the same title, and the company can’t adjust Jon’s salary without adjusting a bunch of other people’s as well.

Plus, it may be time to pull out the books and show that there just isn’t money left. Not all companies have fatcat CEOs that can give up a million without blinking. For companies with under $10 million in revenue, the CEO earns under $200,000. He may still be angry after you explain, but at least he’ll know.

Another place where behind the scenes processes can make things look insensitive or downright mean is with layoffs. This person said he was laid off because he didn’t meet his boss’s vision.

This is a clear case where there could be explanations, suggestions for improvement, and perhaps some coaching. But, the manager chose to use a vague term like “vision.”

4. Listen to your employees

One very important note about listening to employees: Don’t do employee engagement surveys if you are planning to ignore the feedback you receive. This person posted an obscene rant on an employee survey (click at your own risk), and again and it demonstrates the frustrated feeling employees have.

If you’re not planning to make any changes based on the results from an employee survey, do not do the survey. It’s bad to ignore your employees’ feelings, but it’s even worse to ask them about their feelings and then ignore them.

You likely won’t be able to resolve the above employee’s concerns – because the damage appears to be done. But, for every employee that spews vitriol, there are undoubtedly others who feel neglected and abused. Listen to them.

At a bare minimum, tell your employees what you learned and what things you will address. No company can solve all employee complaints (nor should they – sometime employees are unreasonable), but you can let people know that you hear them.

Don’t spend your life at /r/antiwork. But keep in mind that there are humans here who are hurting. And even if you run the best company ever, they influence your employees. So, keep an eye out, make changes, and communicate with your employees. Honesty truly is the best policy.

In short: people – including disgruntled employees – will be more likely to accommodate imperfections if they understand that you are trying.

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The rules of talent engagement are changing: What’s new now?

Suzanne Lucas — Tue, 26 Oct 2021 12:20:04 +0000

The old rules of talent attraction

The employer posts the job, you apply, beg for a job, and then, if lucky, the employer will offer you the job. If you’re brave, you can negotiate the salary up a bit, but it’s pretty much a take-it-or-leave-it situation.

Job interviews were like dog-and-pony shows where candidates tried to impress judges, and the judges didn’t feel obligated to try to impress the candidate.

During this time, you saw a lot of ghosting – on the employer’s part. Come in for two, three, five interviews… and then silence. And that was just how it was. It was wrong then, but everyone knew to expect it.

The booming economy in the pre-pandemic days and then the pandemic itself turned all these rules on their heads. Here is how it is now.

The new rules of talent engagement

If you are hiring or looking for a job, you need to know how to play the game. Here are the new rules.

Job descriptions are marketing documents
Salary comes first
Candidates are interviewing you
Lack of flexibility makes it harder to hire
Everyone is ghosting
Candidates won’t play the long interview game

1. Job descriptions are marketing documents

The labor shortage means companies compete for the best candidate. Your job descriptions need to be well written and focus on the critical aspects of the job. Just as recruiters can reject an applicant in seven seconds or less, job candidates can breeze through job postings.

Make sure your job postings:

Use good formatting to draw eyes to key points
Stay away from jargon (fast-paced, exciting environment is a red flag to today’s candidates)
List the top responsibilities only. Long lists get you rejected as nit-picky.

2. Salary comes first

Several states banned recruiters and hiring managers from asking about previous salaries, which means you can’t get an advantage by asking for a current and past paycheck size.

But that doesn’t mean money is taboo – in fact, candidates want to know the salary budget for the job. Colorado even requires companies to post their salary and benefit information in the job posting.

Candidates don’t like wasting their time interviewing or even applying for jobs where the salary is unknown. Plus, salary is still king when it comes to job decisions, according to September’s Great Discontent survey.

Putting a salary in your job description, or discuss it on the initial phone screen, and you’ll get a lot further. Some candidates will refuse to go on without this knowledge.

3. Candidates are interviewing you

It’s no longer a beauty pageant but a date. The candidate wants to know about your business, management style, and benefits. Candidates expect to have conversations rather than have you interrogate them.

This is a benefit to all parties – after all, you want to hire someone who wants to be into the job, not just a warm bod.

And keep in mind, candidates feel like they have more options, so they will carefully consider your answers as much as you consider theirs.

4. Hiring now requires flexibility

Seventy-two percent of people prefer a hybrid situation, where they can come into the office sometimes and work from home occasionally. While there are plenty of jobs that must be done onsite (dentist, grocery store clerk, janitor, etc.), there are plenty of jobs that can offer options.

Not offering a work-from-home or hybrid option for most white-collar jobs will reduce the number of people interested in your position. People worked from home during the pandemic, liked it or hated it, and now want to control that aspect of their lives.

Including flexibility information in the job posting can help you attract candidates.

Related: One in three US workers value remote work – and three in five value flexible hours. Learn more in our Great Discontent survey report.

5. Everyone is ghosting

It used to be just recruiters and hiring managers that ghosted candidates; now, it’s candidates ghosting interviewers. While this is terrible manners regardless of who does it, you can hardly blame candidates who now feel they have the upper hand. Recruiters treated them poorly for years, and now it’s payback time.

However, the ghosting doesn’t end at the interview stage. Candidates can accept job offers and yet not show up on the first scheduled day or leave after a couple of weeks without saying a word. You may not feel secure in your new hire until several months have passed.

6. Candidates won’t play the long interview game

Many candidates are no longer willing to go through six rounds of interviews plus a presentation when pursuing a job. They will jump to a company that can decide after one or two rounds of interviews. Some companies are even doing on-the-spot job offers.

Adjusting to the new reality

Change is hard for everyone, but candidates jumped at the opportunity to have more power in the hiring relationship. You need to train your recruiters and hiring managers in this new reality.

Shorten your time to hire

It may be a struggle for a company that traditionally has long interview processes or hides salary information until the offer stage. Still, if you continue on this path, you risk losing out on the best (or any) candidates.

Stay on top of salary trends

You also need to keep an eye on market-rate salaries. Things change rapidly. You may think that the fast-food restaurant’s increasing pay doesn’t affect your business, but when unskilled labor jobs start increasing their pay, you’ll find people expect more money for more skilled jobs. No company operates in a vacuum. Salaries can change rapidly across the system.

Don’t hold out for the unicorn

You also cannot afford the perfect candidate to drop out of the applicant tracking system. The labor shortage is a real thing, and you may need to settle.

But, don’t worry – hiring someone who isn’t perfectly equipped to carry out the job means you have the opportunity to train the new employee according to your desires. In other words, you can create your own unicorn – you don’t need to find one.

It’s not a revolution – it’s an evolution

You don’t have to start completely over with your hiring processes. Many things remain the same – you’ll still screen resumes, interview candidates, and make job offers. You’ll just need to do it all a bit faster and a bit more openly.

Be upfront about salary and benefits and keep to a tight timeline. Otherwise, your competitors will race ahead of you in the war for talent.

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How to support your employees during a crisis

Suzanne Lucas — Tue, 22 Mar 2022 13:53:49 +0000

If you’re living safely in the United States or anywhere outside Ukraine, it shouldn’t affect your work. Your employees should get their acts together and get their work done. No bombs are falling on their houses. Right?

This kind of attitude is familiar – “If it doesn’t affect me, it shouldn’t affect you”. After all, you aren’t personally involved in the crisis. Whether it’s a war in Ukraine, a terrorist attack in West Africa, or even a terrible car accident on the freeway, people often assume that it’s no big deal unless you yourself were there.

They are wrong. And as managers and HR people, we need to be aware of the world and local events and understand that even people without obvious connections may be shattered by what goes on elsewhere. You need to support your employees during crisis. Here’s why, and what you need to do.

Everywhere is more global than you realize

I went to high school in St. George, Utah, with Michelle Truax. She was the high school orchestra concertmistress, and I was a very bad cellist. If you know anything about St. George in the 1980s and 1990s, you’d know it was not a very diverse place.

And yet, today, Michelle is the mother of seven children, three of which she and her husband adopted as teenagers from Ukraine. Her children remember their Ukrainian families and keep in touch, and so, why you might see Michelle as a woman from Southern Utah, she’s also a mother of Ukrainian children, and you can bet that this war affects her life.

Also, 13.7% of people living in the United States immigrated from another country. They, most likely, still have friends and families in their countries of origin. Their American-born children are likely still deeply connected as well. And Ukraine isn’t the only country in crisis. Just because you haven’t heard about a particular tragedy doesn’t mean it doesn’t profoundly hurt your employee.

And it’s not just the United States that has a diverse population. Here are the top 10 countries based on foreign-born residents:

United States — 50.6 million
Germany — 15.8 million
Saudi Arabia — 13.5 million
Russia — 11.6 million
United Kingdom — 9.4 million
United Arab Emirates — 8.7 million
France — 8.5 million
Canada — 8.0 million
Australia — 7.7 million
Spain — 6.8 million

So how do you react to this information? When tragedy strikes, assume someone in your organization is closely connected to that country. If they are stressed or concerned, listen. Do what you can to support your employees.

1. Do something

If you have employees in Poland, they may well be housing Ukrainian refugees. But your employees in Boston are far less likely to be taking strangers into their homes. But that doesn’t mean you can’t do something to help.

You can organize a fundraiser or join a reputable organization to raise funds. This can support your employees during a crisis and helps your employees feel like you care. Doing something, no matter how small, makes people feel like they can make something a little bit better.

You may even have employees in Ukraine or Russia who are affected firsthand by the war. Many companies in this situation are reinvesting their resources and are actively working to move these employees to safety.

With a big crisis like the Ukrainian invasion, there are obvious ways to help. With smaller or local problems, it might not be so obvious, but there is always something your company can do.

2. Compassion is better than sympathy

You can be sympathetic, and it can still come across as cold, even though you don’t mean to. Harvard Medical School Psychologist Susan David breaks down the differences in how you react to someone else’s problems and pain. Here are her three examples:

Sympathy: I’m so sorry you’re in pain. (Distant)
Empathy: I can imagine what this pain feels like. (Shared)
Compassion: You are suffering, and I will do what I can to help. (Connected and Action-oriented)

Compassion is the best way forward when an employee struggles, whether from a personal problem or a global tragedy. What you can do will vary from person to person and from job to job, but doing what you can and asking your employees what they need is genuine compassion.

Don’t assume based on what you think you would need – ask. And keep in mind that sometimes, your well-meaning suggestions may sound tone-deaf. For example, if an employee comes to you and says the war in Ukraine is very stressful because her relatives live there, and you respond, “Remember, self-care is important. Why don’t you take a day off to relax?”

You may be trying to be nice, but your employee may respond; “How on earth can I relax when they are hiding in the basement of their apartment building?”

Focusing on compassion is never a wrong way to support your employees during a crisis.

3. Remember your Employee Assistance Program

You probably have an Employee Assistance Program (EAP) that comes with your insurance – and if not, look into getting one. The EAP can be like magic in times of crisis. They have access to resources you wouldn’t think of, and your employees might not know what they need. Remind your employees that they can call, and you won’t even know they did. (Your EAP should report only that someone used their services and not identify the person.)

It’s not the first thing that comes to people’s minds in times of crisis, so remind people that it’s there. Post the details in the break rooms or distribute them via online channels such as Slack. Let people know that you want them to call if they need help – and emphasize the privacy to support those employees who may be otherwise hesitant during a crisis.

4. Be as flexible as possible

When an employee suddenly finds their cousins will be arriving from a war-torn area or following a natural disaster, your employee will need time and money to prepare for their family members. If you can offer extra time off, allow your other employees to donate their days, or put out a call for beds and dressers, it can be a tremendous help.

If someone needs to travel without much notice, even if it’s your busy season, remember to be compassionate – this is something you can do.

If someone needs time off because of stress or anxiety, it’s possible that FMLA or ADA can cover that. Send them to their doctor. And if not? Be proactive and give it anyway. Remember, it will take you far longer to replace an employee that quits because you couldn’t be flexible in times of trial than it would to give them the time off and show that you’re thinking about them.

The war in Ukraine won’t be the last tragedy that befalls us, so even if this doesn’t affect your employees directly, the next thing might. Prepare now for the next problem.

The post How to support your employees during a crisis appeared first on Recruiting Resources: How to Recruit and Hire Better.

Why companies outsource recruitment (and why you shouldn’t)

Suzanne Lucas — Fri, 16 Jul 2021 14:36:13 +0000

Not every company can do every function. When your company is small, you can’t afford experts in every aspect of the business, so you outsource. One of the functions where businesses often choose to outsource is recruiting.

In some cases, this makes perfect sense, and in some cases, it does not. Here’s what you need to know when making a decision on whether or not to outsource recruitment.

What is recruitment outsourcing?

Outsourcing is hiring someone outside of the company to do a task. This can be a consultant or a contractor, or a company. It can be someone who lives and works in the same town or lives in another country.

When you outsource a task, you give it to an outside person or organization. When you outsource recruitment, you can use several different types of outsourced recruiting.

Headhunters. This is the colloquial term for recruiters that recruit for specialized positions. They often work on a commission basis. While they can technically recruit for any role, they often have specialized areas. Headhunters increase their value by building relationships in their chosen industries. Companies, not candidates, pay headhunter fees (usually a percentage of the salary if they place a candidate). Some executive or highly specialized headhunter contractors are retainer-based. In this case, the recruiter receives pay for providing candidates and sourcing, and is not contingent on job acceptance.
General recruiting. You can hire an outsourced recruiter or recruiting firm to handle all your recruiting needs, regardless of specialization. Again, the company, not the candidates, pays the recruiters.
Staffing companies. These companies not only find people to work for you, but they hire them and pay them as well. Consequently, the employees work for the staffing company and not for you. This model is popular in industries with high turnover and low-skilled labor. It’s also popular for some IT roles, and larger companies, including Google, use this model.

When outsourced recruitment is good

Suppose you are a startup looking to hire your first of everything. In that case, it’s far better to hire a professional recruiter to help you find a CFO than to appoint your college roommate who majored in musical theater but never managed to get their big Broadway break.

For senior roles, the headhunter option generally remains a good idea, as these positions are highly specialized and critical to company success. If you get a mediocre junior analyst, it can get expensive (as bad hires tend to be), but if your newly recruited Chief Marketing Officer is a failure, it can tank your entire company.

You may also want to consider outsourcing recruiting during intense hiring phases, as your in-house HR may not have the bandwidth to take it on. For instance, if you are launching a new product and you need to hire 100 new salespeople across the entire country in a short time, your lone in-house recruiter may not be able to handle that added workload (although a great ATS can help alleviate that stress!).

You can, of course, use a contracted recruiter for all your positions, and some companies do this. Smaller companies can’t afford a dedicated recruiter or don’t hire enough people on a regular basis to warrant an extra employee for that task.

When outsourced recruitment is bad

Relying on someone outside the company to market your jobs, source candidates, and screen them, can be problematic in many situations.

If you want to build a specific company culture, you probably want to bring your recruiting in-house. An external recruiter generally has multiple clients at a time and won’t be able to dedicate themselves to the unique needs of your company as well as an in-house recruiter can do.

Because external recruiters typically get paid upon placement, there can be a bigger push to fill the role than to focus on finding the right person for the position.

If your turnover – whether voluntary and involuntary – is higher than the industry average, you may wish to take a look at in-house recruiting. People do leave when they feel that the company is a bad fit for them. You also need to fire people who turn out to be not a good fit for you.

If your turnover in either of these categories is too high, it could be due to wrongly or poorly targeted recruiting. There are times where assigning the recruiting to someone who knows the employees personally, who walks your warehouse floor every day, or sits in on exit interviews and sees the problems firsthand can result in a better candidate fit.

If you have the proper HR systems in place – a good applicant tracking system and a compatible HRIS – running the recruiting in-house can save you time and make your reporting more straightforward and more accurate.

If you choose outsourced recruitment

This is a path that fits some companies, and if you go in this direction, there are a few things you need to remember when you search for your recruiter.

If employees work in the office, ensure the recruiter has visited and understands the working environment firsthand. There are different challenges in different businesses, and seeing the physical facilities can help the recruiter’s understanding.
Go over the job descriptions with the recruiter in depth so that the recruiter understands the key points to look for. You can’t assume an external recruiter understands the unwritten rules of your business because she doesn’t work there.
Consider the costs. If you hire more than one or two professional people per year with a headhunter, the associated costs can become higher than an in-house, salaried recruiter.
Keep communication channels open. Hiring managers often change criteria during the recruitment process. If you aren’t communicating clearly, your recruiter will waste valuable time looking for the wrong candidates.
Figure out how you will coordinate your onboarding process. Frequently, in-house recruiters handle that part of the process. If you outsource recruitment, someone in-house will need to process the paperwork and new-hire orientation.

In-house recruitment benefits

Whether you’re growing or in a high-turnover industry, you might consider bringing the whole thing in-house – the technology is there to help even the leanest hiring teams manage the recruitment process, and at cost. And the benefits of doing it internally can far outweigh the conveniences of outsourced recruitment.

Consider the following:

Your recruiter can help identify internal candidates that may or may not apply for an open position. Someone with an intimate knowledge of the business will have powerful insight into people who can fill gaps when an external recruiter cannot.
You can control costs. Many employers outsource recruitment to reduce costs, but filling two senior positions in a year with an external recruiter can cost more than a full-time salary for an experienced in-house recruiter.
You have more flexibility. If you think you need to do a job fair, you can organize one. If you’re working with an outside firm, you may have to renegotiate the entire contract.
An internal recruiter can help anticipate business needs. They can spot things before requisitions appear and plan ahead.
Internal recruiters have a better understanding of company culture because they work there every day. They have a vested interest in getting the right people in roles because they have to work together.

Whatever you decide for your business, remember that good quality recruitment needs to be a high priority. Your business needs people to succeed, and that can’t happen without quality sourcing, recruiting, and hiring.

The post Why companies outsource recruitment (and why you shouldn’t) appeared first on Recruiting Resources: How to Recruit and Hire Better.

The Weird Al leadership playbook: Lessons for Elon Musk

Suzanne Lucas — Thu, 10 Nov 2022 09:17:41 +0000

But when we think about who embodies and demonstrates leadership, Weird Al comes out ahead.

First, here’s what the community thinks:

I’m not joking. (I’m in HR, we never joke.) What leadership qualities does Weird Al have that Elon Musk lacks? Here are three qualities the singer has that the businessman could and should learn.

1. Weird Al laughs at himself

Musk is a fantastic troll. But when he had people trolling him by changing their names to Elon Musk, he banned them. He gave a very funny reason for banning comedian Kathy Griffin.

Actually, she was suspended for impersonating a comedian

— Elon Musk (@elonmusk) November 7, 2022

Hilarious, right? But he’s not laughing at himself; he’s laughing at Griffin. It’s funny, but it also looks like Musk can’t take a joke.

Weird Al? He laughs at himself. Take a look at his interview with the New Yorker.

New Yorker: When you decide what a song is going to be about, do you then do a lot of research to get the details right? And do you enjoy that?

Weird Al: Yeah. I’m very passionate about my music, so I’m going to make sure that everything I write about is researched thoroughly. Some require more research than others. When I did “Living with a Hernia,” I didn’t really know about hernias, so I went to the library and just researched hernias for a week. But, like, “White & Nerdy,” I didn’t need to do hardly any research, because I spent my whole life doing research on that song.

Leadership lesson:

If you can’t laugh at yourself, you will take things too seriously. It’s too easy to get offended. Do you know the No. 1 reason companies end up being sued by employees? It’s not sexual harassment or age discrimination: It’s retaliation.

What’s retaliation? When someone makes a complaint, the company punishes the employee for pointing out a real or perceived problem. This distinct lack of being able to handle criticism costs businesses millions of dollars. Recognize when you’re wrong. Laugh at yourself.

2. Weird Al takes care of his staff

Did you know that Weird Al has had the same “executive team” since the early 1980s? Drummer Jon Schwartz met Yankovic while recording “Another One Rides the Bus” in 1980. Bass player Steve Jay and guitarist Jim West joined in 1982, and the four played their first concert together in March 1982.

And Weird Al’s manager, Jay Levey, has been with Yankovic since 1980.

Compare that with Musk, who’s got an annualized 44% turnover for his executive team at Tesla.

I don’t know what goes on behind the scenes at either Tesla or the recording studio, but I know that long-term employees are a sign of good leadership.

While pay is important, it’s not enough. Tesla’s former head of AI Andrej Karpathy has an estimated net worth of $50 million with a $5 million salary, and he walked away.

I will make an educated guess that Weird Al’s long-term staff have much lower compensation levels – Yankovic himself has an estimated net worth of ‘only’ $20 million.

Plus, by all reports, Weird Al is scandal-free (unlike Daniel Radcliffe’s fictional portrayal of him in his “biopic.”). Musk, on the other hand, has a, ahem, reputation.

Leadership lesson:

Treating people right, not just paying them properly, is necessary for authentic leadership. If your team keeps quitting (or you keep having to fire them), the problem is you, not them.

3. Weird Al is nice

Weird Al has every right not to be humble – he’s an accomplished musician and performer. He’s utterly hilarious. Everyone loves him.

And yet, he doesn’t parody a song without the approval of the original songwriter – even though the law specifically allows you to write a parody without permission. When there was a misunderstanding with an artist, Yankovic apologized personally.

Contrast that with Musk, who former employees say threw “temper tantrums” and who, in a Twitter rage, infamously called a cave diver, working to rescue boys trapped in a cave in Thailand, a “pedo guy”.

Leadership lesson:

Nice is important. Being considerate of others is crucial. It shows that you think of others – and not just yourself. Being nice to people even if they can’t do anything for you (other than, perhaps, buy your product) is the type of person a good leader should be.

While Musk and Yankovic are successful in their own spheres, if you had the opportunity to work for one or the other, chances are your gut would tell you to hitch your cart to Yankovic’s star. Sure, there may be more money to be made with Musk, but in terms of leadership skills, Weird Al wins.

The post The Weird Al leadership playbook: Lessons for Elon Musk appeared first on Recruiting Resources: How to Recruit and Hire Better.

Killer phrases in HR: don’t use them, or you’ll erode trust

Suzanne Lucas — Tue, 17 Oct 2023 17:08:27 +0000

Everyone hates HR.

Okay, not everyone. We love ourselves – most of the time. But sometimes, we say things that make people hate us, and it’s our own darn fault.

Alan Collins, the author of The New HR Leader’s First 100 Days, wrote a post on LinkedIn where he identified three “killer” phrases that HR Leaders use. They are:

“Please Copy Me on Everything…”
“Look, It’s Company Policy, I Can’t…”
“I Know I Promised This to You, But…”

I agree with Collins 100%. These phrases will destroy all confidence that people once had in HR. (And, in reality, every leader who uses these phrases.)

Collins suggests asking for updates rather than asking to be copied, explaining the reason behind the company policy (and supporting it even if you, personally, disagree), and never making promises you can’t keep. HR leaders can do much better if they adopt these ideas and eliminate these killer phrases.

They aren’t the only killer phrases, though. You probably have some in your vocabulary that are destroying confidence in your organization, and you don’t even realize it.

Here are a few more:

1. “Recruiting isn’t really part of HR, so, you know, I can’t explain why the process sucks.”

What the employees hear: “Yeah, HR is a bad department. We all know it stinks, and we don’t care.”

There’s often a battle between HR and recruiting, with recruiters often being the loudest opponents to being included in the HR umbrella. Whether recruiting should roll up to HR is an entirely different question, worthy of discussion, but here is the hard truth HR (and recruiting) needs to face: Employees and candidates believe HR and Talent Acquisition are one and the same department.

When HR insults TA or TA insults HR, it weakens the respect in both groups. It shouldn’t be a battle. Both groups are supposed to be people experts, and you need to get along and support each other.

Find out if you don’t understand why the recruiting process is X. Work together to make recruiting, hiring, onboarding, and retention work.

And, FYI, the flip side is also true – when recruiters undermine HR, employees lose respect for both groups.

What to say instead: “Tell me what parts frustrate you, and let’s work with the talent acquisition team. They, of course, will be better at explaining the process, but we all want to work together.”

2. “I don’t handle paperwork. My role is strategic. Now, what we should do here is …”

What the employees hear: “I don’t care about your problems at all.”

The larger the organization, the more likely this is to be true. So, if it’s true, you should be able to say it, right?

Just like the TA/HR fight, the paperwork vs. strategy battle rages as well. HR is paperwork heavy – and there’s not a thing HR can do about it. People have to be paid. They have to receive benefits. Hours have to be tracked. The government demands reports. It has to be done.

The average employee doesn’t notice at all when those things go smoothly. But, boy oh boy, do they notice if their paycheck is wrong. (Cue HR Business partner: “That’s payroll! They report to finance! Stop blaming me!”)

To employees, it’s all the same organization. And an organization that messes up someone’s paycheck or health insurance can’t be trusted to provide strategic guidance.

When I was new in HR, I had the pleasure of working for Denise Peppard, who used to tell us that if we can’t get the paperwork right, no one will trust us with the higher-level work. She was right then, and HR needs to remember that now. Ignoring paperwork problems will destroy your relationship with managers and employees.

What to say instead: “I’m so sorry about that. Here’s how we can fix it …” (Even if that is just a referral to an 800 number for your outsourced benefits group.)

3. “I’m not the decision maker here; I’m just doing what the CEO wants.”

What the employees hear: “The CEO doesn’t trust me and my ideas, so you probably shouldn’t listen to me either.”

Again, this is a true statement. HR is always subject to company leadership, but this kind of statement just announces that you’re a worthless lackey without input or influence.

“What? That is completely untrue! I do have influence; it’s just that the CEO overrides my good judgment and …”

If you can hear yourself sputtering that, you can see why it’s a problem. If you want managers to think you have influence and you want to have influence, you need to act like you do. The CEO does have the final say, but you need to be fully on board with whatever that decision is. Your battle is behind closed doors.

Just as you can’t hide behind policy, you can’t hide behind the CEO. You need to be all-in in public. If that’s not possible, find a new job where you can be all-in.

What to say instead: “Yes, the leadership team decided to do X. How can I help you with this change?”

The TL;DR version of this whole article is to lead rather than follow, take responsibility, and take action. It makes for a much better HR department; as a bonus, people will respect you more.

The post Killer phrases in HR: don’t use them, or you’ll erode trust appeared first on Recruiting Resources: How to Recruit and Hire Better.

Work-life boundaries: establish them ahead of time

Suzanne Lucas — Tue, 21 Nov 2023 18:10:20 +0000

There’s an aspect of culture that almost all managers lie about during job interviews – and that’s how fast they expect you to respond outside of regular working hours.

I’ve yet to see a job posting that states, “This position requires you to be on call 24/7. Don’t think that just because it’s Saturday evening and you’ve got Taylor Swift Tickets that your boss won’t demand you drop everything and do that report!”

Nope. They talk about their great work-life balance and flexible schedules!

Some bosses are great and don’t disturb you unless it is a true emergency, while others consider everything to be an emergency and expect you to respond right now.

Can you effectively build boundaries if you’ve got the latter for a boss? Maybe.

I’d love to give a resounding yes, but some bosses are beyond reason and not trainable. But others, you can handle, and here’s what you need to do.

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Rules vs. boundaries

Many people mess these up and think they are setting boundaries, but in reality, they are just creating rules. A rule is just that – a rule and people often treat rules like speed limits: something they’ll comply with if there’s a police officer in the area, but otherwise, they do what they want.

When you tell your boss, “Don’t contact me after 5 p.m. or on weekends,” you’re making a rule. And you have no authority to make rules – you’re the employee after all – and your boss will go speeding right past it.

A boundary, on the other hand, is about behavior. Your behavior, not that of your boss.

So, a boundary would look like this: “I turn my work phone off when I leave the office, so I won’t be reachable.” And then you do just that.

That’s a boundary. Your boss can try to violate it, but if your phone is off; it’s off.

You can choose whatever boundary works for you.

“I’ll check my email occasionally, but I’ll only respond in the case of a true emergency.”

Or: “I turn my phone off when I go to sleep so anything after that will wait until morning.”

But the key point in boundaries is carrying them out. You can say, “I won’t check my phone on the weekend,” but if you keep checking your phone on the weekend, you haven’t set a boundary. You’ve just set a rule that even you aren’t following.

Setting realistic work-life boundaries

Just what is a reasonable expectation in a job? Well, that depends on the job. If you work in public relations and one of your clients goes viral for a very bad thing, you must set aside everything and fix it, even if you have the aforementioned Taylor Swift tickets. It’s tough, but that’s your job.

But, if you work as a grocery store cashier, it’s perfectly reasonable to say that your time off is your time off and you’ll be in the next time you’re on the schedule.

You need to determine what is reasonable for your job and industry. A general rule is that the more money you earn, the more responsive you’re expected to be. Sometimes that gets flipped, and managers expect their entry-level people to bust their buns at all times, but that shouldn’t be the case. Push back.

So, it’s not just about setting a boundary and keeping to it; it’s about setting a reasonable boundary.

A great time to talk about work-life boundaries is after you’ve gotten a job offer and before you accept it. Make it clear what you’ll do and see how they react.

If they react negatively, that’s a good sign that this isn’t the job for you. If they react positively at that point and later push back, you can refer back to the original conversation. “If you recall, I told you I won’t be available on weekends, and you agreed.”

When a rule smash occurs

So, you let your boss know you don’t work weekends and you get an urgent phone call or text message anyway. How do you handle it?

Evaluate: Is this a true emergency or can it wait?
If it’s a true emergency caused by unpredictable events: Handle it.
It’s a true emergency caused by other’s failure to plan: Evaluate if this is the hill you want to die on. It’s easy to say you won’t fix it, but there can be real consequences to your career.
If it’s not a true emergency: Say, “This can wait until Monday.” And then wait until Monday.

Now, the problem with handling the true emergency caused by someone else is that they will expect you to do it again and again.

But if you can anticipate these emergencies, set the rule early so that you can see this is going down a bad path and, therefore, you will not be available, and then don’t be. Turn your phone off. Don’t answer. Don’t let anything get marked as read.

If your boss freaks out when you refuse to handle something that isn’t an emergency, you’ll have to remain firm. Handle it first thing when you’re back at work.

And if your boss punishes you for this? Well, then you’ll have to make a decision: Is this job worth it? Because sometimes that answer is yes, and sometimes it’s no.

If you are consistent in holding your boundaries on non-emergency events and responding to true emergencies caused by unpredictable circumstances, most rational bosses and coworkers will learn to take a chill pill.

But some people won’t, and sometimes those people fire you for not being a “team player.” And then you have to make a choice.

Whatever you choose is fine – do what’s best for you. But, unfortunately, sometimes firmly-held work-life boundaries don’t go over well with boundary stompers. It would be great if we could set boundaries and hold them, and everyone would get in line.

But sometimes, the only way to do that is to go no contact. That works for bad mothers-in-laws, but you need your paycheck, so you may have to bend until you can find a new job if your boss falls in that category.

It’s never an easy balance, but it’s made easier if you set expectations by establishing clear work-life boundaries ahead of time – and perhaps you won’t have to find yourself in this quagmire to begin with.

The post Work-life boundaries: establish them ahead of time appeared first on Recruiting Resources: How to Recruit and Hire Better.

Executive dismissal at OpenAI: many lessons for businesses

Suzanne Lucas — Wed, 22 Nov 2023 14:57:35 +0000

Firing a CEO is a big decision and should not be taken lightly – especially when the company is in the limelight like OpenAI is.

Since the board of OpenAI fired CEO Sam Altman last week – and even with his reinstatement as top boss – it’s been one news story after another. First, the standard, “CEO fired articles,” and now we saw information like this:

https://twitter.com/GRDecter/status/1726965375974203629?ref_src=twsrc%5Etfw

I don’t pretend to have unique insight into the backroom decisions of OpenAI, ChatGPT, or Microsoft. But what I do know is people. And as a people leader, I would have advised the board to think through the people side of things.

Let’s assume that the OpenAI board was correct and that Altman shouldn’t be the CEO. This was open for debate – clearly, many people think it was a bad decision, and as it happens, it was reversed just days later with Altman reinstated as CEO.

Regardless of the outcome, there are important lessons to be learned here regarding a decision that’s bound to reverberate through the ecosystem as we’ve seen with OpenAI. Whatever happened behind the scenes at OpenAI, it’s clear that it was not the right move in the end.

So, I would advise your company to think through these things before making moves like this one.

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Popularity means a lot

For instance, when 745 of 770 employees threaten to quit over a decision you make, that’s a huge problem. Did the board even know just how popular Atlman was with the employees?

This isn’t to say that you should make decisions based on popularity. Popular does not always mean good. In fact, it can often mean terrible.

But, before you terminate someone at the top, you should have a good idea of how the employees will react. An employee survey would have been a good idea before a change of this magnitude.

Have clear reasons for termination

Why did the board terminate Altman? The OpenAI board tapped Emmett Shear to replace Altman – and Shear then explained on X:

“Before I took the job, I checked on the reasoning behind the change. The board did *not* remove Sam over any specific disagreement on safety, their reasoning was completely different from that. I’m not crazy enough to take this job without board support for commercializing our awesome models.”

Okay, so we know it wasn’t because of the board’s concern that Altman was willing to allow AI to destroy humanity. But that’s a good thing – so what was the reason?

CBS News reports the reasons as follows:

“OpenAI said Friday that Altman was pushed out after a review found he was ‘not consistently candid in his communications’ with the board of directors, which had lost confidence in his ability to lead OpenAI.

“However, one Wall Street research firm said it believes that tensions arose over Altman’s push to develop more advanced products.”

So, there is a lack of communication and a disagreement on products, but not because of Skynet concerns!

So, what is the actual reason?

It’s entirely possible that the board has an excellent reason for the termination they are not publicizing, but it’s unclear, and the employees aren’t buying it as a valid reason.

There is no claim of impropriety, and Microsoft offered Altman a job even before the tweets on the topic stopped trending, so clearly, many people are not concerned about Altman’s character or skills.

If you don’t have a solid reason, it’s time to step back from any termination. I often tell managers and HR to be prepared to have their decisions go viral and to be very careful, but going viral is actually pretty rare for most businesses.

But OpenAI? They knew (or should have known) that this would be hashed out in great detail online. You may never be able to explain it to internet mobs, but OpenAI’s employees clearly weren’t buying it.

In tech, all you really have is your employees

Yes, OpenAI has distinct products, including ChatGPT, but it’s not like a factory where you have machines with distinct value. If all the people who threatened to quit actually quit, will ChatGPT shut down? How long will it take to get going?

And while it’s a difficult market out there, many of them already have job offers from Marc Benioff.

Salesforce will match any OpenAI researcher who has tendered their resignation full cash & equity OTE to immediately join our Salesforce Einstein Trusted AI research team under Silvio Savarese. Send me your cv directly to ceo@salesforce.com. Einstein is the most successful… pic.twitter.com/1RXoc9ekeo

— Marc Benioff (@Benioff) November 20, 2023

If Altman hadn’t been reinstated, and consequently if these people had walked, Shear would have had one heck of a time replacing them. And he would have had to offer people big raises to stay – since Salesforce is offering to match current compensation.

Even the return of Altman to the fold won’t necessarily reverse the damage. Some (many?) employees could still be looking at the exit doors.

How should they have handled it?

Let’s assume that termination was the right path to begin with. Would it have been at all possible to terminate Altman without an employee revolt?

Perhaps. The best bet (and maybe they tried this) is to give him an exceptionally good golden parachute that included, in exchange, a resignation because he wanted to spend more time with his family, travel the world, or build a time machine.

But the whys don’t matter so much here; what matters would be that Altman would be the one leaving voluntarily rather than what came across as an abrupt and rude executive dismissal.

Would this have been possible? If Altman knew his own popularity, he would have had them over the proverbial barrel. And that’s something you should also consider – is the problem you’re going to (or hoping to) solve with such a high-profile termination going to cause even more significant pain down the road?

A new CEO may have happily communicated with the Board more effectively – but what can they say if they have no employees to report on?

You probably won’t have a termination anywhere near this dramatic, but there are many more things to consider when terminating an executive. Proceed with caution.

Executive dismissal: guidelines to follow

Your company probably isn’t as newsworthy as OpenAI, but you don’t want to have a disaster on your hands even if it doesn’t hit the news.

So keep these things in mind before carrying out a decision like the one seen at OpenAI:

Know your people. If necessary, do a survey.
If you can’t explain why you’re terminating a leader, reconsider your decision.
Remember that without your people, you have no business.
Consider the long-term impacts of any major decision – and weigh them out.

Thinking through these things can help prevent disaster, which is what you’re intending to do in the first place. If it’s worth it to you to replace a leader, then taking these steps will be worth your time.

The post Executive dismissal at OpenAI: many lessons for businesses appeared first on Recruiting Resources: How to Recruit and Hire Better.

LYTT: A sevenfold increase in LinkedIn followers over 3 years

Keith MacKenzie — Thu, 14 Dec 2023 16:43:48 +0000

In the dynamic realm of digital marketing and talent acquisition, leveraging social media platforms is crucial for brand visibility and audience engagement. One platform that stands out for professional networking and business growth is LinkedIn.

In this blog post, I’ll share the journey of how I spearheaded a remarkable 685% growth in LYTT’s LinkedIn followers over the course of three years.

The secret? A strategic combination of personal updates, curated company content, and the powerful automation tools provided by Workable.

Building a foundation: personal updates

The journey began by recognizing the power of personal connection on LinkedIn. Instead of solely relying on corporate updates, I decided to infuse a personal touch into the content strategy.

Regular personal updates allowed me to humanize LYTT’s brand, making it relatable and approachable. By sharing my professional insights, industry experiences, and even behind-the-scenes glimpses of the LYTT team, I established a genuine connection with the audience.

Showcasing company culture: LYTT’s content

Consistent and relevant content is the backbone of any successful social media strategy. At LYTT, we recognized the importance of showcasing our company culture and values. Regularly posting content that highlighted our team’s achievements, workplace events, and industry expertise not only kept our current followers engaged but also attracted new ones.

This approach positioned LYTT as an industry thought leader and a desirable workplace, enticing professionals to become a part of our growing LinkedIn community.

Harnessing Workable’s automated emails

Workable’s suite of automated email tools became a game-changer in our pursuit of LinkedIn growth. After successfully attracting potential candidates through our job listings on Workable, we implemented automated email campaigns encouraging them to connect with LYTT on LinkedIn.

These personalized emails not only facilitated easy navigation to our LinkedIn page but also conveyed the value of staying updated on industry trends and career opportunities.

The seamless integration between Workable and LinkedIn streamlined our outreach efforts and maximized the chances of converting potential hires into engaged followers.

The results: A 685% growth in 3 years

The combined impact of personal updates, curated content, and Workable’s automated email campaigns resulted in an astounding 685% growth in LYTT’s LinkedIn followers over a span of three years.

Beyond the numerical success, this growth translated into tangible benefits for LYTT, including an expanded talent pool, increased brand awareness, and enhanced credibility in the industry.

Key takeaways

1. Personalization pays off

Humanizing your brand through personal updates fosters a deeper connection with your audience.

2. Content is king

Consistent and relevant content showcases your company culture, positioning your brand as a leader in the industry.

3. Automation amplifies results

Leveraging tools like Workable’s automated emails can significantly enhance your outreach efforts, turning potential hires into active followers.

Strategy leads to prominence

In conclusion, the journey of growing LYTT’s LinkedIn followers by 685% was a testament to the power of a well-rounded social media strategy.

By combining personalization, compelling content, and the efficiency of automation tools, we not only increased our follower count but also solidified LYTT’s position as a prominent player in the talent acquisition landscape.

Sam Merron is LYTT’s Talent Acquisition Manager. He has a proven track record of success managing end-to-end talent acquisition processes, fostering diversity, equity, and inclusion (DEI), and executing impactful HR projects, with 15 years experience in international hiring, project management, and building strong employer brands.

LYTT is a technology company transforming customer decision making by providing software to turn contextual sensing data into real-time insights, driving increased asset performance. LYTT’s new Industrial AI Platform is designed to help businesses in the energy and utilities sectors generate smarter insights, accelerate operational value, and monetize sensor data.

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The future of recruitment: Q&As from Workable Next

Content team — Wed, 13 Dec 2023 23:12:56 +0000

At Workable Next on Dec. 6, 2023, CEO Nikos Moraitakis, CRO Rob Long, and CTO Spyros Magiatis unveiled groundbreaking enhancements in recruitment technology.

They discussed ATS advancements, innovative reporting tools, and HRIS features, highlighting Workable’s commitment to evolving talent acquisition and management.

Here are key insights from their FAQs.

Q. How much of your 2024 product road map will focus on the ATS?

A. The ATS remains the majority of our business, the overwhelming majority of our revenue and also the thing we are very well known for. So, the point solution for ATS is not being left behind in any way.

In fact, just to give you a sense, the ATS you see has been developed by, for most of the years, it was an engineering team of like 50, 60 people. And now it’s up to 70. And right now, already, the team is 150.

And yes, it includes maybe a third of them working on things that are not ATS including HRIS, job sites, etc.

We have a lot of other things that come together around the product, but [the ATS] is still the majority of the thrust of the R&D and, in absolute numbers year over year, bigger investment happens there.

So, today, obviously, the HRIS parts are new, and there’s a lot of new features, and there’s a lot of novelty in that direction.

But this is a bit misleading. The ATS remains like the brand of our business and the core of our business. That should give peace to people that we’re not starting to do other things.

Q. Are there any [plans] to improve the reports feature for recruiting?

A. We’re not surprised because these features that people are mentioning here are also the few very, very in-demand features.

We know that reporting is something that users always want more. I don’t know the details specifically, but I know we’re going for a very comprehensive solution that will give a lot of flexibility and essentially cover lots of different needs that different users have brought up.

And you’re going to get some really good news on that front, including the ability to receive scheduled email reports in your email.

Q. How can we get the information of our employees from our previous HRIS into Workable?

A. We’ll help you do that. Essentially, we have a customer success and professional services team that is going to sit with you, figure out your needs and how you want the work of HRIS to be set up and then they’re going to work with whatever provider or vendor you had before, how you had your data, and try to find the best way to migrate it and map it.

It’s not an easy process, but we have a team that is going to actually do that effort for you because it’s vital for your success. So you will have our assistance. We just did this for ourselves; we moved from Bamboo users before, and we moved to Workable. It’s been made so that this can be done.

If you just want to take a snapshot of the current information of your employees and import it to Workable, you can do it by a CSV import. We already have a fully customizable CSV import. You can map the columns of the CSV file to the employee record, the fields of the employee record as they have been defined by you in our own HRIS. And you just need to upload the CSV and you’re done.

But if you want to also migrate the historical information, then yes, with a professional service, we can do the more sophisticated import for you. It depends if you just have a list of employees and data that you can probably upload yourself.

But if you want to carry over your policies, documents, signatures, if you had an HRIS before, it’s best if you talk to our customer services team and we’ll do all the hard work for you.

Plus, we really want people to try it out because it’s a new thing. So, you will get a super VIP treatment from our team who wants to be super successful with their first customers. First-class service.

Q. Will we be adding a field to search by the general function since titles are so arbitrary?

A. What we are going to do in people search is replace the existing way to search with a natural language search that will be interpreted by an LLM to a query to our People Search index. So this thing will change completely and will have theoretically unlimited capabilities.

You’ll be able to tell it what you’re looking for and it will do with some LLM including some other things I saw in the chart, like a radius of a locale, you know, location with radius-based location searches and stuff like that.

Everything that can be mapped from natural language to an elastic search query – essentially being a bit technical here – will be possible.

Q. Any news on posting jobs in multiple locations?

A. Job postings in multiple locations is perhaps the most requested feature at the moment. It’s in the roadmap, The first version of multiple locations will be available in the beginning of 2024, but we will continue improving it over the first two quarters but even the first iteration will be good enough for most use cases regarding this qualification reasons.

I must admit this is something we had planned for [2023] but because it took us longer to do the required improvements in the new design of the candidate profile and candidate pipeline management. It’s definitely coming [in 2024].

The post The future of recruitment: Q&As from Workable Next appeared first on Recruiting Resources: How to Recruit and Hire Better.

DAOU shares effective HR toolkit for inclusion and scalability

Alexandros Pantelakis — Mon, 11 Dec 2023 14:45:20 +0000

When we upgraded our employee systems in 2022 – we were hyper focused on user-friendliness, inclusion, and scalability.

We searched high and low for the right combination of platforms that would serve our workforce, as we were finding that some of the all-in-ones just weren’t quite right for us. We needed solutions that could scale with us at a fast rate, and that were friendly and engaging.

We have employees in a diverse array of roles – from wine educators in our tasting room, to our vineyard team, to our teams creating world class events and brand marketing – we needed solutions that could span time zones, operate in multiple languages, and that empowered employees, managers, and leadership to access information they needed easily.

We implemented a new HRIS (HiBob), new ATS (Workable), and new Payroll system (Paylocity) all at the same time. It was a heavy lift from the People & Culture team, but it has paid off in spades.

Training teams to adapt new HR technologies

We first launched Workable with great success. We set up 1-1 training sessions for any hiring managers with open roles, providing a white glove service as they had to adopt the platform first.

The 1-1 interactions were helpful to gain buy in and solicit feedback from some of our “influencer” hiring-managers, and as an added bonus, we had an excuse to connect in real time which is always so valuable in helping employees understand that the People & Culture team is their partner.

To ensure successful launches of each system, we did a variety of things – sent out teaser communications, created scavenger hunts within the systems to incentivize employees to become familiar, and set up both virtual and in-person trainings for the platforms.

For our onsite employees, we made sure to have open office hours for employees to pop in and ask questions about the new apps during the first few weeks.

Hiring times were reduced; candidate experience was enhanced

A big win that comes to mind when we reflect back on the transformation that these upgraded systems has provided, is the fact that while our employee base has grown 20% since January 2022, our P&C team has not needed to hire any additional resources.

The streamlined application process that we set up in Workable, not only enhances the candidate’s experience but also ensures that our hiring managers can identify and connect with the right talent swiftly, contributing to a more dynamic and competitive recruitment process.

The added visibility with Outlook integration is a game-changer to keep all parties related to a hire on the same page.

We have also seen a drastic increase in hiring managers’ engagement in the recruiting process, which has sped up our time to hire and as a bonus, has made the process a lot more fun for managers and recruiters.

We’d offer an exact statistic on how much time we have cut down on the typical time to hire, but the honest truth is that previously we didn’t even have that data in a lovely dashboard like we do now – helping us find our ground and now which way is up.

Bridging communication barriers

The social platform aspect of Bob has helped bridge the gap between different departments, languages, and locations. It brings so much energy back to our culture when employee milestones or kudos can be offered in a public setting, and it helps keep everyone informed on happenings at the company.

We included some key leaders in a few of the demos to create early buy-in, and it’s amazing what a public shout out from leadership can do to boost engagement on the platform.

The emphasis on a more dynamic and competitive recruitment process, streamlined application processes, and increased hiring manager engagement also suggests a commitment to inclusivity and ensuring that the hiring processes are fair and transparent, reducing biases.

Increasing transparency and scalability

The upgraded systems also forced us to get our act together in regards to job structure, levels, and compensation banding, which translates into just about everything we do as we scale, both in systems and as a company that values equity and transparency.

The Workable system encouraged us to launch a referral program which also helped user-adoption and has been very successful in bringing solid employees to some hard-to-fill roles.

Like pulling a thread on a sweater, our policy development has started to snowball in a positive direction as we discover all of the ways to optimize the system and continue increasing engagement.

The policies that we developed as we implemented these new systems has made us overall more consistent, especially in regards to items like fair and consistent interview processes, internal vs external job postings, and has even helped us as we navigate improving salary transparency.

As hard as we were trying previously, Workable has greatly reduced the room for biases in our hiring process.

As far as our People & Culture team’s daily work, the seamless integration between Bob and Workable has helped delineate workflow between our individual roles – making employee promotions, onboarding, and offboarding tasks trackable and measurable – leading to more achievable OKRs and far fewer items slipping through the cracks.

I’m Kelsey Turner. I grew up on the Central Coast of California. I have worked at DAOU Vineyards in People Ops for 2 years and have loved being part of “a people business in the wine industry” as we like to say. I help with employee systems and data, onboarding, DEIB initiatives, Training & Development, and many other items that can come up in any given day.

I love the variety! Previously I worked as a Global Scheduling manager for a travel company (Backroads); managing staffing and equipment needs for trips across 60+ countries. Prior to that I have been a bicycle and hiking guide in Peru & France, as well as an English Teacher in Ecuador and Spain, and have held many different jobs in restaurants (from a busser in a diner, to guacamole maker, to server at a fancy Relais & Chateaux restaurant in Montana).

I graduated Cal Poly San Luis Obispo with a BA in Spanish & French Literature; I have always loved languages and love getting to put my Spanish to good use at work with a lot of our Spanish-speaking employees. I love running, yoga, and all things food and wine (especially our Estate Cabernet Sauvignon).

I have always loved working with internal employees and finding efficiencies wherever possible and love being part of a team that knows how to have fun and work hard.

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The art of building a stellar startup team from scratch

Alexandros Pantelakis — Mon, 11 Dec 2023 20:10:55 +0000

My name is Chris Allen, and I am the Senior Vice President of Marketing at Heartland, a people-centric fintech company serving over 1 Million entrepreneurs today. I have over 15 years of executive leadership experience in marketing for B2B tech and SaaS companies, and I specialize in revenue marketing powered by content in highly matrixed organizations.

In this piece, I’ll discuss the role of a well-built team in startup success. From the early days of a fledgling venture to navigating major corporate milestones, the right team is not just a part of the journey — it is the journey.

1. Understand the challenges of building a startup team

One of the most pressing challenges in building a startup team is maneuvering through the constraint of limited resources. Unlike established companies, when you’re just starting up a new business, you often operate with tight budgets and scarce manpower, making every hiring decision crucial.

This requires a strategic approach to resource allocation, where maximizing the potential of each team member becomes essential — the key is not just finding the right talent but also ensuring that each hire can wear multiple hats, contributing diversely to the startup’s growth and adaptability.

Vince Lombardo, the president of Heartland, highlights the intricate challenges involved in assembling and managing a startup team. Unlike established corporations, startups often operate with limited resources, including tight budgets and minimal manpower.

This scarcity makes every hiring decision pivotal.

While building the team, he learned the importance of strategic resource allocation and the necessity of maximizing the potential of each team member. The key isn’t just finding the right talent but ensuring each hire can contribute in multiple ways, thereby supporting the startup’s growth and adaptability.

For startups, it’s crucial to not only hire for skills but also for cultural fit. Aligning team members with the company’s core values is as important as their professional abilities.

The insights from Lombardo’s experience reflect a deep understanding of the nuanced dynamics of team building in a startup environment, where resource constraints necessitate a multifaceted approach to hiring and team development.

2. Decide on core values

Core values are the heartbeat of a startup’s culture, directly influencing the essence of its workplace environment. They serve as a guiding light for hiring decisions and ensure that each new team member brings the necessary skills and aligns with the company’s ethos.

When startups establish clear core values, they create a cohesive culture where every employee aligns with the shared principles.

Katharine Wolf’s journey in founding Odetta exemplifies the impact of aligning business objectives with personal values. She founded Odetta with a mission to empower highly educated women in regions where they face significant barriers in the job market, particularly in the Middle East and South Asia.

These barriers may stem from societal norms, logistical challenges, or workplace cultures that restrict women’s participation in the traditional workforce.

Katharine’s mission is to connect these skilled women to global gig economy opportunities, thereby offering them remote, flexible work that overcomes the limitations they face locally. It’s rooted in addressing gender disparities observed from a young age, and demonstrates how a strong, value-driven foundation is critical for a startup’s success.

Her venture not only addresses a market need but also champions a cause, making Odetta a purpose-driven enterprise.

3. Adopt the right hiring mindset

Adopting the right mindset in hiring is pivotal for the growth and sustainability of a startup. Emphasizing diversity brings a lot of different perspectives and ideas and fosters innovation and creativity. Equally important is seeking adaptability in candidates: working in a startup demands individuals who can pivot and evolve with the company’s needs.

Alignment with the company’s vision ensures that each team member is not just a cog in the machine, but a passionate contributor to the collective dream, driving the startup towards its long-term goals with shared enthusiasm and commitment.

The expansion of Bondi Bowls illustrates the importance of a mindful hiring approach. Bailey Wilson, the founder, faced the challenge of rapidly building a team for her burgeoning business.

Her strategy focused on identifying individuals who resonated with her passion for health and community engagement, and who could adapt to the dynamic nature of a growing startup. Bailey’s approach was about finding the right people who could embrace and contribute to Bondi Bowls’ ethos.

This aligns seamlessly with the startup hiring mindset, emphasizing adaptability, shared vision, and a commitment to the company’s core values. As a result, Bondi Bowls didn’t just grow in size but also in its capacity to impact communities positively.

4. Develop an effective onboarding process

This step is vital for building a strong foundation for team dynamics, encouraging open communication, and aligning individual goals with the company’s vision. A strategic onboarding process ensures that new team members feel welcomed and understood, fostering a sense of belonging from day one.

Tim Tebow is a renowned athlete and philanthropist. His approach at the Tim Tebow Foundation is characterized by setting a vivid end goal and inspiring his team to see beyond the immediate challenges. Tebow advocates for focusing on the ultimate objective, emphasizing that hard work is not the goal itself, but a means to achieve the end result.

Tebow believes in being hands-on, showing rather than just telling. This approach gains respect and fosters a sense of camaraderie. He exemplifies this by participating in tasks alongside his team, rather than delegating difficult tasks to newcomers.

Tebow’s philosophy centers around painting a clear picture of success, not just in terms of hard work but in visualizing the rewards of that effort. He encourages envisioning the end result — whether it’s a football player dreaming of triumph in a stadium or a team member visualizing the success of a project.

This vision, Tebow argues, is more motivating than the abstract concept of hard work.

This approach reflects a deep understanding of human motivation and team dynamics. He shows that by inspiring with a clear end goal, teams can cultivate discipline, resilience, and a collective effort towards a common objective. This philosophy applies not only in sports but also in business and life, where the clarity of the ultimate goal can transform the way teams work and achieve success.

5. Foster a culture of growth and development

Cultivating a growth and development culture is all about nurturing a workspace where learning and professional growth are not just encouraged, but are a key part of the daily routine. It’s about moving beyond the traditional approach to development and creating an environment where every team member has the chance to learn, improve, and excel.

This means rolling out things like mentorship programs, hands-on training sessions, and providing plenty of resources for self-guided learning. The aim is to create a vibrant, supportive workplace where growth is ingrained in the culture and where everyone, regardless of their role, feels they have the support and opportunities to continuously develop their skills and advance in their careers.

Christina Tosi’s journey with Milk Bar is a stellar example of cultivating a culture of growth and development in an entrepreneurial environment. Her approach to business combines extraordinary discipline and boundless creativity, mirrored in her philosophy of “just bake the cake.”

This attitude encapsulates the essence of learning traditional business rules only to artfully subvert them. Tosi’s example highlights the importance of embracing new experiences and prioritizing flexibility, while nurturing one’s creativity and adapting amidst uncertainty.

She is focused on understanding and connecting with customers — which coupled with a focus on streamlined operations underlines the vital role of creating a suitable culture for business success.

Tosi’s journey with Milk Bar, characterized by innovative thinking and a relentless pursuit of growth, is an inspiring blueprint for fostering a culture of continuous learning and development in any entrepreneurial venture.

Build your startup dream team

We’ve navigated various facets of constructing a startup dream team. As we wrap up, it’s crucial to reiterate the undeniable significance of a well-constructed team in startup success.

A team isn’t just a group of individuals working under the same banner — it’s a mosaic of diverse talents, perspectives, and aspirations, all converging towards a singular vision.

Remember, in the often unpredictable world of startups, your team is your strongest asset. It’s the resilience in times of uncertainty, the creative spark in moments of challenge, and the relentless drive that propels your vision forward.

As a leader, your role extends beyond mere recruitment to nurturing, inspiring, and leading by example. Let your team be the embodiment of your startup’s values, aspirations, and dreams. The path to success is paved with challenges, but with the right team, no hurdle is insurmountable.

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Organizational trauma: what you can do to build resilience

Keith MacKenzie — Mon, 11 Dec 2023 14:56:55 +0000

Every person is highly likely to know someone with significant trauma or they themselves have been traumatized.

Likewise, they may be part of an organization struck by serious challenge or abrupt change experienced by staff, leaders and investors as highly distressing.

Rates of individual trauma range from estimates of 40% up to 70% for specific negative individual experiences such as accidents, assaults, abuse, loss and related events. Collective trauma – affecting a large group, institution or organization, community or even the whole of society – involves both loss of life and subsequent strain and crisis of meaning.

Intergenerational trauma is also a factor, with events of past decades and centuries passed along from parent to child, and through the organizational lifecycle long after memories of past events have been forgotten.

Speaking to senior staff members to obtain organizational history can, often surprisingly, shed light on current issues – notably unprocessed losses from changes in leadership, mergers and reorganizations wishfully assumed to be water under the bridge.

In other words, those who forget history are doomed to repeat it.

The challenges of mental health

Mental illness is on the rise across all age groups, and suicide has rapidly become a leading cause of death, with more than 47,000 deaths annually in the United States as of most recent estimates. Grief is a major background issue for many, due to massive losses from the pandemic, as well as grief for how society is changing and fear about the future.

Workplace trauma has also become more common, as many companies have not survived economic changes resulting in:

mass layoffs
higher rates of churn
reorganization and downsizing
sudden financial shock
losses due to the pandemic both directly vis-a-vis death and infirmity

Also, the work environment has been disrupted due to remote work including social isolation and impact on team cohesion and social support. The future of the workplace remains uncertain.

The depth and breadth of trauma

Generational issues have further disrupted the traditional work structure, with managers reporting difficulty learning how to work with Gen Z, Gen AI and younger folks in general. They all have different expectations, needs and ways of relating in the workplace, and higher rates of anxiety, depression and related mental health conditions.

While there is increasing awareness of the above concerns, healthcare and workplace support is lagging. Burnout is on the rise, and companies are behind the curve in gearing up, though satisfaction and productivity has been rising post-pandemic after sharp declines.

While rates of trauma are very high, not all individuals who experience trauma develop clinical conditions. Rates of post-traumatic stress disorder (PTSD) hover around 8% for women and 4% for men over a lifetime, in addition to trauma increasing the risk of many other mental and physical health problems.

The impact of technology

At the same time, technology has thrown gasoline on the fire with social media bringing information from around the world to our fingertips, often driving individual insecurities and exposing us to large amounts of negative information about distant events at an unprecedented scale.

While technology has made our lives more convenient, it has been associated with various health problems. In the workplace, artificial intelligence and machine learning have already transformed our lives in many ways, adding promise and at the same time great concern over how they will impact employment.

AI also has incited fears of human extinction, with prominent figures raising a warning flare. Companies have embraced this technology nonetheless with little pause in order to keep up the productivity and optics arms race, as leaders seek to stay current or ahead of the curve.

Collective trauma at work

We’ve also seen the #MeToo movement and subsequent development of DEIB and an anti-harassment, increased awareness of workplace bullying and microaggression, and rising conflict between conservative and progressive factions. This has led to a workplace rife with mistrust, suppressed resentment, lingering damage, accusations and legal risk.

HR and leadership teams are rushing to figure out how to hold things together while the world shifts underfoot.

Alongside collective trauma, moral hazard represents outrage and injury around failures of individuals, organizations, leaders and society at large to provide protection.

This leads to increased feelings of betrayal and mistrust, feelings of shame and anger, and condemnation of oneself and others for these perceived injustice and failures. Collective trauma and moral injury work side-by-side to undermine individual and group awareness and function.

Trauma plays out in the form of “enactments”, as patterns of split-off, or “dissociated”, unrecognized trauma and moral injury repeat on multiple organization levels in what psychologists call “parallel process”. Collective trauma reverberates in similar ways, for instance:

within work groups
between leadership and investors
between staff and managers
between and among leadership and staff
in conflict and dysfunction among team members and workgroups

There are two science-backed models that leaders can draw from to mitigate and even resolve the above. They are the Sanctuary Model and ‘disaster medicine’.

The Sanctuary Model

The Sanctuary Model, developed by psychiatrist Sandra Bloom, addresses collective organizational trauma and its consequences. This can include a lack of safety, emotional management issues, miscommunication, authoritarianism, decision-making difficulties, aggression, and unresolved grief in the workplace.

These issues can lead to a toxic work environment characterized by mistrust, high turnover rates, and a loss of organizational identity.

The model, particularly useful for social service and healthcare organizations, promotes recovery from collective trauma through the SELF framework: Safety, Emotional balance, Loss recognition, and Future orientation.

This requires a commitment to seven principles:

nonviolence
emotional Intelligence
inquiry & social learning
democracy
open communication
social responsibility
growth & change

Here, leaders can be trained to use specific tools and processes to foster trauma recovery and prevention, aiming to restore team cohesion, strong leadership, and a safe, enjoyable work environment aligned with the organization’s mission.

‘Disaster medicine’

Organizations can also draw leadership lessons learned from disaster medicine. Based on work at Johns Hopkins during the COVID-19 pandemic, George Everly and his colleagues defined leadership principles to “decrease psychological casualties in COVID-19 and other disasters of uncertainty”.

These principles include:

establishing structure as antidote for chaos
listening before speaking
using information as antidote for anxiety
ensuring transparent, timely and truthful communication is essential to maintain credibility
knowing that people trust actions not words
recognizing empowerment as an antidote for feeling out of control
perceiving support as antidote for isolation
building cohesive groups – these do better with stress and challenge
preempting absolute uncertainty
learning to embrace ambiguity and uncertainty – what poet John Keats called “negative capability” is essential for navigating crisis and change

Both the Sanctuary Commitments and the Johns Hopkins Leadership Principles are evidence-based and draw upon best practices.

What you can do as a company leader

Leaders must become psychologically savvy, looking beyond traditional business training to develop the skills and tools required to shepherd their organizations through uncertain and turbulent times.

They must become experts in organizational dynamics and social and emotional intelligence.

Moving beyond conventional transactional leadership to models of transformational and servant leadership, leaders become “internal consultants” and trainers, themselves highly skilled with the above practices and perspectives.

They’re also able to delegate and empower their teams to ensure collective trauma and moral distress is prevented, mitigated and addressed when present.

There’s a cost savings to it all as well. Research shows that for every dollar spent on mental health, there is an estimated four in future savings. Of course, each organization needs to do their own cost-benefit analysis.

When we ignore the human factor over fiscal considerations, it is likely that collective trauma and moral injury will show up later on in increased costs related to turnover and poor performance for individuals. For organizations, the trauma is felt in the form of increased legal, HR and EAP costs.

In short: an ounce of prevention is worth a pound of care.

Grant H. Brenner MD is a board-certified psychiatrist, psychoanalyst, and therapist. He is the author or co-author of four books, including his latest, Making Your Crazy Work For You: From Trauma and Isolation to Self-Acceptance and Love.

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What is coffee badging – and what you can do about it

Keith MacKenzie — Fri, 27 Oct 2023 16:12:39 +0000

Coffee badging is the latest in a long line of new terminologies that have surfaced in the work world recently – joining quiet quitting, quiet hiring & firing, resenteeism, bare-minimum Mondays, lazy girl jobs, rage applying, and other linguistic hallmarks that point to how much has changed at work since the advent of COVID-19.

As an employer or hiring manager, you’re really at the heart of this new coffee badging phenomenon. While novel, coffee badging is actually just a modern echo of the old “clock in and clock out” systems of times past, with a modern twist that points to the rise of flexwork and autonomy in the modern workplace.

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Back in the day, it really was just about showing up for work (or not):

But things have evolved since then. And besides, that video is mostly in jest. Your workers aren’t necessarily partying when they’re remote working, just for the record.

That said, the message is clear: if your workers are checking in just so you can “see” that they’re working, that’s not necessarily a good thing.

Before we get into all that, let’s understand the whole trend of coffee badging and where it came from.

Unpacking coffee badging

What is coffee badging? It’s a response to the growing popularity of return-to-office (RTO) mandates we’re seeing out there. An August survey found that 47% of employees say they’ll quit if RTO is imposed on them – but that’s a luxury option that not all employees can easily afford to make, especially in a tight economy.

So, if workers must go into the office, they’ll just go in, make their presence felt, and then pirouette to alternative work environments more conducive to their working habits.

But this trend doesn’t just float on the surface. It’s a deep-dive response to the perceived rigidity that comes with RTO requirements that many find restrictive compared with the fluidity of remote-first work.

Like the bare-minimum Monday, workers just do the bare minimum to return to the office, and then go back to what they’ve been doing all this time – in other words, they’re just getting their badge for showing up at work.

Presenteeism and coffee badging

On the topic of showing up – remember presenteeism? It’s that old terminology that valued showing up over showing results. It’s primarily defined as being at work in spite of being injured, sick, or otherwise unable to be a fully contributing worker – in which case, you should stay home.

Coffee badging is presenteeism’s evolved, modern cousin, taking the act of being present to a new level while continuing to advocate for flexwork and a more balanced work environment.

It’s not just about clocking in; it’s about clocking in with choice. The card game between employer and employee has progressed step by step through COVID, remote work, the Great Resignation, and all the other workplace developments, and then slowly a Great Disconnect starts to form as a chasm between the two parties.

Now, employers are playing the RTO card – and employees are responding with the coffee badging card.

So, what can you do about coffee badging?

Navigating the currents of coffee badging requires a blend of open dialogue, trust, and a willingness to adapt. Here are three actionable steps for you to think about if you’re looking to “overcome” coffee badging in your own organization:

1. Embrace flexibility

Two-thirds of US workers love work flexibility, according to the Great Discontent survey. It’s not going away.

Acknowledge this reality by embracing flexible work arrangements. Whether it’s hybrid work models, flexible hours, or remote working options, integrating these into your organizational culture can address the root causes that drive coffee badging.

2. Foster open communication

That same survey finds that company transparency and responsiveness are high up the list in what workers value in a job.

In that spirit, create channels for honest feedback and open communication. Understand the specific needs and preferences of your team, and be open to exploring new ways of working that benefit both the individuals and the organization.

3. Prioritize outcome over presence

Often, focusing on outcomes rather than processes can make all the difference.

Shift the focus from mere physical presence to the quality and timeliness of work output. Establish clear goals, expectations, and metrics that measure what truly matters – the results.

Coffee badging isn’t the actual problem

The reality is, coffee badging isn’t itself something to be solved – it’s just a symptom, not the core issue. It’s an adaptation by employees who want to navigate what they see as increasing rigidity in their working schedules.

If your workers are coffee badging – maybe that’s fine and they’re still doing a great job, and it’s a sincere attempt to check in with their colleagues. But, honestly, if that’s why they’re doing it, then they’d do it anyway regardless of whether you’re pushing RTO or not.

The reality is: they’re checking in because you’re requiring them to. Consider engaging in open dialogue, reassessing your workplace policies, and being open to the new realities of workplace presence. If you play that card, your employees will respond in kind.

The post What is coffee badging – and what you can do about it appeared first on Recruiting Resources: How to Recruit and Hire Better.

Linearity: finding the solution in the details of hiring data

Keith MacKenzie — Fri, 20 Oct 2023 15:34:14 +0000

I am Dan, a Senior Talent Acquisition Specialist at Linearity with over five years hiring software engineers globally. I’ve hired engineers from various locations of the world, from Eastern & Western Europe all the way to East Asia & Latin America. I love having technical conversations with engineers and hiring managers, and I’m very data-driven and candidate-centric. I’m big into the gym and science, but most importantly, I love being a father to my cheeky 18-month-old daughter.

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Here at Linearity, we’ve always had a great intuitive product. It’s visually appealing and offers a good balance between being technically challenging and presenting the opportunity to grow.

In Q3 of 2022, when the market was very candidate-driven, we knew that we needed to improve our hiring process to acquire the best talent in the market. Being more data-driven and leveling up our candidate experience ensured this.

Why did we focus on candidate experience? Research shows that candidate experience has a huge impact on employer branding, the number of candidates that accept an offer, and referrals within the market. It can also influence revenue.

When you combine candidate experience with hiring data, you can identify trends, patterns, areas for improvements to improve your recruitment process.

When you combine candidate experience with hiring data, you can identify trends, patterns, areas for improvements to improve your recruitment process.

First, we identified that the time to offer / hire has a huge impact on results, as almost every company was hiring at that point. The speed of the hiring process – and how engaging it is – can make a huge difference for you versus your competitors.

So how exactly did we level up our recruitment process?

The challenges

First, we implemented a data-driven approach, tracking multiple metrics to see what areas we need to improve on the most.

This meant looking at different data points and identifying areas where we had an opportunity to improve:

Speed: Time to offer, time to hire, time at each stage, time to deliver feedback, time to fill a role
Funnel metrics / conversions: pass rate at each interview stage, withdrawal rate at each stage
Bottom-of-funnel metrics: Offer / acceptance rate

We identified that the hiring process for some of our specific engineering roles were longer than the market average (close to 100 days).

We dove deeper into this one by looking at the following metrics:

Source for candidates we moved forward (whether they applied directly, were sourced via TA, came from employee referrals, or something else)

Pass rate at each interview stage (%)
Withdrawal rate at each stage (%)
Time spent at each stage (which gives us a deeper look at time to offer/hire)

From the above, we identified that the number of candidates passing our “computer science fundamental stage” was very low.

This stage also saw the longest booking / wait time in the whole interview process – showing the bottleneck as a result of the number of interviewers we had.

We also saw that this stage had the highest withdrawal and lowest pass rates. This increased the time to hire and the time to offer, hurting candidate experience and engagement. All in all, this meant higher costs and more hiring team hours spent in the process.

The action items

Our first step to improving in this area was to understand why candidates were not passing this stage at the rate we’d like to see.

We looked at the feedback we received, which helped us see that we needed to focus more on a specific skill set when sourcing new candidates.

By sourcing & targeting a specific skill set of engineers resulted in less candidates identified (but more suitable), reducing the volume of interviews and the time candidates had to wait at this interview stage naturally decreased the time to offer and increased candidate experience.

We also implemented an interview preparation process designed to help candidates be better prepared for upcoming interviews at this stage.

The results

This led to an increase in the overall candidate experience as well as boosting the interview pass rate.

With all of the above, this resulted in an overall shorter time to offer / hire, lowered the withdrawal rate, increased candidate experience, and improved our offer acceptance rate.

When we grew the same team and role, our time to fill was halved based on the data we collected previously.

Our metrics now stand as follows:

Time to offer: 19 days
Time to hire: 26 days
Time to fill: 54 days
90% offer / acceptance rate

Our lesson? Sometimes the solution isn’t in the big-picture fixes – it can also be found in the little details.

The post Linearity: finding the solution in the details of hiring data appeared first on Recruiting Resources: How to Recruit and Hire Better.

What even is an HRIS – and how to know you need one

Alexandros Pantelakis — Tue, 28 Nov 2023 17:24:32 +0000

For small business owners, the journey to effective human resource management is often fraught with challenges. Limited resources and expertise can make traditional HR processes cumbersome and inefficient.

HRIS enters the room…

By utilizing an HRIS software you can make your business life a lot easier. This technology can ameliorate significantly the way small businesses handle their HR tasks.

After all, it is no coincidence that 25% of companies identify better functionality as a top reason for using an HRIS.

And guess what? This article is designed to provide a comprehensive understanding of HRIS and its transformative potential for small businesses.

What is an HRIS?

Don’t panic. A Human Resources Information System (HRIS) is a software solution that integrates and automates various human resource functions into one centralized system. This is not as technical as it sounds. It really is a software that you can just install on your computer or use it online to help you manage your employees.

It is designed for everyday people to manage employee data, streamline HR processes, and provide strategic insights into workforce management.

HRIS systems vary in complexity and features, but they all serve the primary purpose of making HR management more efficient and data-driven.

What can an HRIS do?

Enough with the terminology. Let’s see now how an HRIS can help small business owners or HR professionals do their job in practice.

Here’s a list of the most popular features of an HRIS:

Onboard new hires
Consolidating all Paid Time Off (PTO) requests in one place for easy tracking and approval
Automatically updating employee records when they change personal details like address or phone number
Generating payroll automatically, including calculating deductions and taxes
Scheduling and tracking employee performance reviews and storing the outcomes
Providing a portal for employees to access their pay stubs and tax forms.
Monitoring employee training progress and certifications.
Generating compliance reports for labor laws and regulations.
Offering analytics on workforce trends like turnover rates or average time in position.
Sending out automatic reminders for important dates like work anniversaries or certification renewals.
Facilitating internal job postings and transfers within the organization.
Enabling managers to approve expense reports and travel requests.

And this is just for starters. Can you now imagine how helpful an HRIS could be for your organization?

An HRIS can save you a significant amount of time and money, and also help you identify areas that require human intervention.

Why do small businesses need an HRIS?

Like everyone operating in a market, all small business were in a position where they were trying to handle different situations and focus on their company’s growth. That is the way to make a small business bigger and bigger.

However, it comes with no surprise that small businesses often grapple with managing HR tasks efficiently.

Business owners often cope with payroll, schedules, and employee time off manually, either on paper or in spreadsheets. This outdated approach not only consumes a significant amount of time but also introduces the potential for errors, leading to a frustrating experience for you who seek efficiency and accuracy in your day-to-day operations.

HRIS offers an easy way to deal with these challenges by automating processes such as payroll, benefits administration, and employee data management. This automation not only increases efficiency but also aids in maintaining compliance with various regulatory requirements.

At least, this is what 35.3% of small business owners believe when it comes to increased efficiency.

Benefits of implementing HRIS in small businesses

We believe that by now, you have received all the information you need to begin implementing an HRIS. However, if you still can’t find the answer to the question ‘why do I need one,’ please allow us to describe some of the benefits of this software.

Efficiency and time savings: Automation of routine HR tasks leads to significant time savings and enhanced operational efficiency.

Data accuracy and security: HRIS minimizes human errors and securely manages sensitive employee data.

Compliance and risk management: It helps in staying compliant with the constantly changing labor laws and regulations.

Employee self-service: Employees can access and manage their own HR-related data, reducing the administrative burden on HR staff.

Scalability: As the business grows, HRIS can easily adapt and scale according to the changing needs.

Choosing the right HRIS for your business

Selecting an appropriate HRIS requires careful consideration of various factors:

Cost and budget

Evaluate the cost of the HRIS against the budget and expected ROI.

Features and functionalities

Ensure the HRIS has all the necessary features that meet the specific needs of your business.

Ease of use and training

The system should be user-friendly and require minimal training for staff and employees.

Integration capabilities

Ensure that the HRIS can integrate with other business software and tools for seamless operations.

Vendor reputation and support

Research the vendor’s reputation in the market and the level of customer support and training they provide.

For small businesses, an HRIS is not just a tool for managing HR processes; it’s a strategic asset that drives efficiency, compliance, and growth.

You don’t have to be tech-savvy to understand how it works, as most of them – and especially ours – are incredibly user-friendly and designed for everyday people like me and you.

The post What even is an HRIS – and how to know you need one appeared first on Recruiting Resources: How to Recruit and Hire Better.

Do you classify employees correctly? California’s law got stricter

Nikoletta Bika — Mon, 02 Dec 2019 10:15:22 +0000

The AB5 bill codifies the decision of the Supreme Court’s ruling in the case of the company Dynamex. In general, this law makes it harder for companies to misclassify employees as ICs, and thus obliging them to provide their workers with all benefits attached to employee status by California’s Wage Orders (e.g. minimum wages, rest breaks).

Please keep in mind: Workable is not a law firm. This article is meant to provide general information and should be used as a reference. It’s not a legal document and doesn’t provide legal advice. Neither the author nor Workable will assume any legal liability that may arise from the use of this article. Always consult your attorney on matters of legal compliance.

What constitutes an independent contractor in California according to AB5?

Until now, workers would be classified as ICs via the Borello test (S.G. Borello & Sons, Inc. v. Department of Industrial Relations (1989)). After AB5 goes into effect, companies and courts will mainly use the “ABC test” to properly classify workers.

The ABC test has three qualifiers, each of which have to be satisfied in order for someone to be classified as an independent contractor. A worker can be an IC if:

(A) they’re free from the control and direction of the hiring entity in connection with the performance of their work; and

(B) they’re performing work that is outside the usual course of the hiring entity’s business; and

(C) they’re customarily engaged in an independently established trade, occupation, or business.

Workers are presumed to be employees, unless a company can prove otherwise via this test that a worker qualifies as an IC.

Exemptions to the AB5

The law exempts several professions including but not limited to the following:

Licensed insurance agents, lawyers, architects, engineers, private investigators, or accountants
Certain licensed health care professionals, such as physicians, surgeons, dentists, podiatrists, psychologists, or veterinarians
Securities broker-dealers or investment advisers
Direct sales salespersons
Commercial fishermen working on an American vessel

However, these exemptions from AB5 apply only to the ABC test. This means that an exempt worker still has to pass the Borello test to be classified as an IC.

Contracts for some professional services are exempted from the ABC test, too, but there are some additional factors that need to be satisfied along with the Borello test. These factors are clearly listed in AB5. “Professional services” in this case includes some creative professions (e.g. designers, writers, fine artists), travel agents and more.

There are other exemptions as well, so consult an attorney to get comprehensive information as needed.

Do independent contractors have any rights?

Yes. ICs have full control over how, where and when they work. They charge their own rates and aren’t bound to one employer. This flexibility is a strong motivation for workers to become independent contractors.

On the other hand, independent contractors aren’t entitled to unemployment insurance, workers’ compensation claims, minimum wage, overtime pay, rest breaks, working condition standards, and other benefits and privileges that traditionally are seen – or in some cases that are required by law – in full-time employee status. Consequently, many gig workers don’t have the leverage to negotiate their pay or living conditions, so, as misclassified employees, they are compromised.

Under AB5 law, these workers may benefit. And, the law will also protect companies that usually employ workers as employees against competitors that are trying to cut costs by misclassifying employees as independent contractors.

But, the road to AB5 is no bed of roses

The controversy around employee vs. contractor has lasted for decades. For example, the IRS once audited Microsoft for open tax years 1989 and 1990 and found the tech giant had misclassified its employees as freelancers. In 2013, the IRS estimated that employers misclassify millions of workers. Before Dynamex, there were many relevant cases in recent years – for example, the company Uni Floor had to repay significant sums in back pay in 2017 because of misclassifying its workers. On the flip side, in 2018, delivery company Grubhub won the case against one of its delivery drivers who the court found was properly classified as an independent contractor.

All that aside, AB5 is expected to have an impact on companies that consistently depend on independent contractors. That’s because the ABC test is stricter than the Borello test and its three conditions are much harder to satisfy. Hundreds of thousands of workers in California could be reclassified and many companies are likely to see a jump in employment costs.

Some employers object

The expected increase in costs is mainly why many employers are campaigning against AB5. For example, trucking company Western States Trucking Association (WSTA) had filed a federal lawsuit against AB5 which was dismissed in early 2019. Gig companies Uber, Lyft, and DoorDash started working on a ballot initiative for 2020 that will cost around $90 million. Their purpose is to earn an exemption to the law, providing some benefits to their independent contractors as a compromise.

But, their efforts have drawn fire – in a Vox article on the topic, Art Pulaski, executive secretary-treasurer of the California Labor Federation said:

“No corporation should be above the law, no matter how much they spend on political campaigns to rig the rules in their favor.”

The outcome of this campaign remains to be seen.

What could an employer do to comply with the law?

If you have even one independent contractor in California, you need to pay attention to the AB5’s requirements. Consult a legal expert who specializes in employment law in California – and make sure not to misclassify them (um, pardon the jest).

With their guidance, you can learn whether some workers as exempt or not, and you can start auditing your employment relationship with your independent contractors to determine whether the ABC test is satisfied. If it’s not, you need to change your workers’ status to employees as soon as possible.

If you’re interested in this, you’ll also want to know about other recently enacted laws in California, such as the CCPA. See a basic CCPA FAQ and a comparison of CCPA vs. GDPR.

The post Do you classify employees correctly? California’s law got stricter appeared first on Recruiting Resources: How to Recruit and Hire Better.

Great Discontent UK priorities: clarity, culture, & compensation

Keith MacKenzie — Mon, 27 Nov 2023 21:01:06 +0000

What are UK workers interested in right now when it comes to jobs? We have data for you from the Great Discontent 2023 worker survey.

As an employer looking to attract and – more importantly – retain talent, Workable’s Great Discontent survey report for 2023 for the UK should provide you with a sharper north star going forward. We asked 500 UK workers and we understand what’s going on in that mindset.

What the survey’s resulting dataset reveals is that your employees (and candidates) put a huge value on clarity in their jobs. This means clarity in what’s expected of them in their day-to-day work, clarity in career paths and opportunities, clarity in communications, and so on.

They also really like flexibility in working schedules and locations, connection with their colleagues and leadership, and a more humane approach to the workplace.

What else? Compensation, unsurprisingly, reigns supreme. It’s not that people love money – it’s that they want (and need) to be compensated fairly for the work they put in.

This was always the case. But it’s even more so now, and workers are indeed getting it. Flexible work is becoming standard in many jobs – especially when it comes to setting one’s hours. Compensation is growing as a major priority (even if inflation is prompting it).

But most of all: the expectation is that a job isn’t just a “job”, but a livelihood. When you’re putting 40-some hours of your life every week into work, you want it to actually mean something.

The remote work conversation is also an interesting one. It’s no longer a stopgap reaction to COVID-19. We’ve had a few years of experience with this in the UK, and now, it’s finding its groove. The workforce loves the flexibility that comes with remote work, and they want to keep it as part of the new status quo.

Community is huge as well. Company culture and executive leadership are seen as the glue that holds everything together. Career growth is also top of mind for today’s workers in the UK – and they’ll respond to that opportunity whether it’s in your company or another.

So: what does this tangibly mean for you, the employer? When your company is struggling to roll with the punches, especially during these volatile times, you’re likely calling on your teams to roll with the punches too.

That’s fair, of course. The question is – will they roll with you? Maybe, maybe not. Which begs the even more important question: how can you set it up so that they *will* roll with you?

The answer is clear from our survey. While people are more hesitant to move jobs than they were before, they will move for the right opportunity. However, they will stay with you when they’re engaged in the work and in the company – and while engagement is a two-way street, a lot of it falls on you to build that optimal experience so your teams will stay with you for the long haul. Retention is a very real thing.

The post Great Discontent UK priorities: clarity, culture, & compensation appeared first on Recruiting Resources: How to Recruit and Hire Better.

Great Discontent survey: keys to attracting and keeping top talent

Keith MacKenzie — Tue, 21 Nov 2023 17:18:49 +0000

What’s happening in the evolving US job market right now? We have data for you on the biggest changes from 2021 to 2023 in the worker mindset.

As an employer looking to attract and – more importantly – retain talent, the Great Discontent survey report for the United States should provide you with a north star going forward.

What we’ve learned from asking 750 US workers is that they value the following:

stability and security
flexibility in schedules and work locations
connections and humanity
and, of course, compensation.

We always knew this. But it’s become even clearer over time, including in our 2021 survey on the same topic and again in 2023. We’re seeing flexible work become the standard in many jobs – even if most employers are more hybrid than they are remote. Compensation is absolutely growing along with inflation – people are expecting to be compensated more for the work they put into a job, and they’re getting it in many cases.

Most of all: the expectation from US workers is that a job isn’t just a “job” – it’s a livelihood. When we’re spending 40 or more hours every week at the grindstone, it becomes an intrinsic part of our overall life experience. And pounding sand isn’t going to cut it – the work needs to mean something.

As remote work starts finding its groove in a more sustainable fashion, the workforce isn’t shy about saying, “We love the flexibility, keep it coming.” They’re also wearing their hearts outwards and valuing a workplace that feels like a community, where company culture and relationships glues everything together.

Plus, where an opportunity for career growth knocks, workers in the United States will answer that door whether that’s with your company or another employer altogether.

Now, here’s the big question: What does this tangibly mean for you, the employer?

When your company is struggling to roll with the punches, especially during these volatile times, you’re likely calling on your teams to roll with the punches too. The expectation is that your employees and colleagues will step up and put the work in – after all, your company’s livelihood depends on them.

That’s fair, of course. But the question is – will they respond to that call for action? And more importantly – how can you set it up so that they *will* roll with you?

The answer is clear from our survey. People are very hesitant to move jobs, but they will move for a new opportunity. They’ll stay with you when they’re engaged – and while engagement is a two-way street, a lot of it falls on you to build that optimal experience so your teams will stay with you for the long haul.

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Candidate-facing chatbots: a more human digital touch

Keith MacKenzie — Mon, 20 Nov 2023 16:36:44 +0000

Within many modern organizations, “human resources” is stuck in a particularly tragic and ironic corner of existence. The arm of a company entrusted with providing support to the humans within is often bound up by tedious processes and technology solutions that create just as many problems.

Rather than humans helping other humans, we have humans catching glimpses of other humans, separated by a clumsy lattice of technology and foldable paperwork.

This isn’t fair to human resources professionals, the employees they interact with, or the talent they are charged with acquiring and retaining. The good news: we’re in a moment when all of that can change. When designed properly, conversational AI gives us the opportunity to eliminate tedium on all sides by adding a distinctly human touch.

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The current process of applying for jobs can be confusing and demoralizing. Sending emails in a vacuum with resumes and cover letters attached often feels like an exercise in futility. Uploading the same materials into a company’s recruiting software of choice can be just as tedious, and the persistent core problem of feeling disassociated from the process remains.

As Alana Semuels recently reported in Time:

“Job hunting was becoming more miserable even before the pandemic, as the amount of time companies took to hire stretched out and as they asked candidates to undergo more and more interviews. Labor shortages during the pandemic gave a temporary reprieve, but now, as fears about a recession grow, companies are going back to their old habits of putting candidates through a grueling process.”

Semuels’ reporting found individuals navigating a fraught environment where lengthy application processes lead to interminable interview processes, all while trying to sidestep various scams. In many cases, it feels like technology is the problem.

Two of the frustrated job-seekers profiled in her article worked in tech and were aware of the general threat that AI posed to their jobs. “They had worried that software would replace them, not that it would make it almost impossible to get a job,” Semuels writes.

“They had worried that software would replace them, not that it would make it almost impossible to get a job.”

We need to do better

What if instead, an applicant read about a job on the LinkedIn feed and was prompted to reach out to the company via text or email with a simple “Hello, I’m interested” message?

An automated response could lead the applicant to a rich web chat experience (or RWC) that would begin the process of filtering with few key questions that relate to the role and the company. For example:

“How much experience do you have redesigning CRM systems?”
“How comfortable are you working in a corporate environment?”
“How important is the ability to work remotely to you?”

The bot running the automation can also be reviewing the applicant’s LinkedIn profile and ask follow-up questions. For example: “I see that you have experience working with analytical CRM systems. Do you have experience working with collaborative CRM systems?”

While this kind of automated experience is in some ways less human, it seems more humane. The applicant quickly gets a sense of whether or not the position will be a good fit for them, and the bot can predict how good a fit the applicant may be for the role.

If it’s immediately clear that the candidate isn’t going to make it through to the next round, the bot can quickly relay the read to a human teammate to validate the assessment, and tell the candidate. For example: “Thanks so much for taking the time to answer my questions. You have a lot of really valuable experience, but are not going to be a good fit for this position.”

The applicant might be crestfallen, but at least they didn’t have to wait weeks or months for a response.

If the applicant is promising, the bot can let them know, perhaps even giving them a sense of how they stack up against other candidates.

For example: “Thanks so much for taking the time to answer my questions. Based on my calculations, you are a 76% match for this position. I will pass your information on to our talent acquisition team. You can expect to hear from us again within two weeks. You can always check back in with me at any time.”

One of the worst parts of applying for a job is waiting, perhaps holding out hope, with no reasonable way to check in. A bot isn’t going to get annoyed if a prospective candidate asks it for updates twice a day. And if the position gets filled, the bot can let other applicants know.

These examples amount to a more transparent process that might require significant systemic change, but these are the shapes the companies of the future will take.

These changes run deep

I co-host the Invisible Machines podcast and recently had a great conversation about the relationship between HR and AI with Greg Vert, a leader in Deloitte Consulting LLP’s Human Capital practice.

We talked about many of the problems percolating at the intersection of HR and AI, but he said something really insightful about the power of conversational AI in this space.

People are starting to realize that conversational AI is a great medium to attract candidates that don’t work for you yet but that you want to work for you. Being able to give them an assistant that they can interface with and whenever they need to through whatever channel they want – that’s a breakthrough moment and clients are starting to pay attention. (Go to 39:46 in the video for the conversation about that.)

Conversational AI can help people feel more connected to the process of looking for work. There isn’t enough time for HR reps to talk to every interested candidate, but a properly designed fleet of bots can do this all day.

The same bots can also be incredibly useful helping HR team members make better and more efficient decisions about who to interview. Instead of having to comb through hundreds of cover letters and resumes, they can review customized summaries of applicant information, including highlights from resumes, cover letters, and their interactions with bots in the first round.

They might be trained to cull information from the applicant’s social media activity as well. And if the HR agents want to see a different collection of information, they can just ask the bot to curate one.

These behaviors amount to a working relationship, which is why I typically use the term intelligent digital worker (IDW) instead of “bot.” IDWs represent conversational AI as a teammate – an ally that can remove tedium from people’s lives and help them make better decisions.

IDWs can talk to each other. They can also talk to information in vector databases, including unstructured data like recorded conversations and emails. Most importantly, IDWs can talk to their human counterparts.

Giving HR a more human digital touch

In researching this article, I found myself pulled into an older (2016) Forbes article by Liz Ryan titled “Ten Reasons Everybody Hates HR.”

One of the reasons she listed stuck out to me: “HR people often have trouble seeing the ‘human side’ of any issue.” She notes that HR is often seen as obsessing over keeping every process “uniform and exception-free.”

Machines are excellent at keeping things uniform and exception free. With intelligent digital workers as teammates, the people within HR departments can focus instead on the human side that seems to be lacking.

In the same article, Ryan also shares an inspirational quote from one of her early mentors, who convinced her to pursue a career in HR: “The purpose of HR is to make this organization an awesome place to work and to make sure we don’t do anything stupid.”

Intelligent digital workers can definitely help with that.

Robb Wilson is the Wall Street Journal bestselling author of Age of Invisible Machines, and is the visionary behind OneReach.ai, the highest-scoring company in Gartner’s first Critical Capabilities for Enterprise Conversational AI Platforms report. In 2023, Robb was recognized as an Outstanding Knowledge Expert at the 7th Annual CogX Awards, and he has spent more than two decades applying his deep understanding of user-centric design to unlocking hyperautomation.

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What changed in the UK worker brain between 2021 and 2023?

Keith MacKenzie — Thu, 16 Nov 2023 18:57:04 +0000

What are UK workers interested in right now when it comes to jobs? This time, we have data for you on what’s shifted most in the UK worker mindset from 2021 to 2023.

Top 3 takeaways

People really like clarity when it comes to what they’re expected to do at work, but don’t need the support nearly as much as two years earlier
Remote work is on the downswing
Workers are increasingly looking for jobs where they can make more money – and not have to commute

Understanding the worker mindset in the UK is one thing – it’s even more compelling when we have data from two different years so we can look at what’s trending upwards and what’s trending downwards in what’s important to UK workers in a job.

And we have a lot of that information for you on hand. Our Great Discontent survey series is in its second edition, which gives us this opportunity to see what’s changing (or evolving?) in job priorities from 2021 to 2023.

In Hamlet, Claudius said: “”When sorrows come, they come not single spies but in battalions.” A bit grim, yes, but the underlying point is that when things happen, they happen in bunches. And would it be a stretch to apply that thinking to today’s workplace which has been shaped drastically by the COVID-19 pandemic? Probably not.

In other words, the amount of changes that have happened in the span of two short years between 2021 and 2023 probably is more than what’s happened in the decades preceding that.

So, what are the biggest shifts that happened in our dataset in that two-year span? Let’s first start with the biggest upward shifts. Tops is clarity of job role and responsibilities for workers in their current jobs – which nearly doubled from 17.7% to 31.1%. Clearly (and yes, we use that word deliberately), workers in the UK want more clarity in what’s expected of them right now.

Closely following in terms of raw increase is a 12.9-point upward change from 53.5% to 66.4% for active jobhunters saying their main motivation is that they need to make more money.

We’ve talked a lot about the benefits of remote work and how those have crystallized after years of experience – one of the biggest positive shifts in our dataset is, in fact, the benefits of extra hours saved from not needing to commute. That’s gone up from 41.3% to 52% of UK workers citing that as one of the major reasons they like remote work.

Meanwhile, there are some significant downward shifts as well. Tops in that list is the percentage of workers working remotely in 2023. It was well more than half (55.2%) of UK workers in 2021 – that’s now gone down to two out of five workers (40.9%). Not surprising considering we were still in the thick of COVID at the time, and the barriers to in-person work have all but disappeared since.

That doesn’t mean the return to the in-person workspace is a willing change though – the WFH vs. RTO debate continues to rage on.

Meanwhile, the need for support in their current jobs went down drastically in the two-year span, from more than two in five workers (21.9%) in 2021 to less than one in 10 (8.9%) now. Again, the pandemic factors into this – support is no longer as crucial as it was when uncertainty and volatility in the working and living environments were high.

Things are different and more stable now, of course. It’s worth coming back to this in 2025 to see where we go from here.

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69% of UK workers will come to you if you offer more money

Keith MacKenzie — Mon, 13 Nov 2023 17:05:47 +0000

What are UK workers interested in right now when it comes to jobs? This time, we have data for you on the value of compensation for workers in a job right now and how that’s changed since 2021.

Top 3 takeaways

Salary / perks / benefits remains a top attractor in a new job at 68.8%
It’s growing as a major reason why active jobseekers are hunting for new opportunities, to 66.4% from 53.5%
It’s also an area for improvement in current roles – up to 63% from 60.7%

This much is clear: money talks, and it always has – including in the UK.

And it probably will always talk. It does put food on the table and pay the bills, after all.

Compensation was already a clear priority for most UK-based workers in our 2021 dataset – and it remains so in 2023. The percentage of those who picked salary / perks / benefits as one of the major factors that would attract them to a new role remains at the top of the heap, albeit declining slightly to 68.8% from 70.1%.

And of those who say their current job could be improved, 63% say salary / perks / benefits is a top area for improvement – up from 60.7% in 2021.

But here’s the huge differentiator this time: of those who are actively looking for new opportunities, two-thirds (66.4%) say the need to make more money is the reason why. That’s up hugely from 53.5% in 2021.

What more need we say? The data resoundingly points to the importance of compensation across the board. Well-compensated employees will be happier, and jobs are more attractive when they pay well.

What can you do?

1. Reevaluate compensation packages

With the increased focus on salary, perks, and benefits, employers should periodically reassess their compensation packages to ensure they remain competitive and attractive.

This can involve benchmarking against industry standards and considering factors such as cost of living and inflation.

2. Enhance benefits offerings

Besides salary, the emphasis on perks and benefits calls for a more comprehensive and enticing benefits package.

This could include health benefits, retirement plans, wellness programs, flexible work schedules, remote work options, and professional development opportunities.

3. Create attractive offers to lure passive candidates

With a significant rise in the number of passive job seekers, employers need to craft compelling offers to attract this group.

This could mean not just offering a competitive salary, but also demonstrating the potential for career growth, a positive work culture, and a strong commitment to employee well-being.

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The biggest shifts in US worker priorities from 2021 to 2023

Keith MacKenzie — Tue, 14 Nov 2023 14:11:09 +0000

What’s happening in the evolving US job market right now? We have data for you on the biggest changes from 2021 to 2023 in the worker mindset.

Top 3 takeaways

Workers aren’t outright looking for new jobs as much as two years earlier, but company culture is more important now than before
The benefits of remote and flexible work options are even clearer in 2023 than in 2021
Stabler times in 2023 mean less importance put on leadership, day-to-day support, and job security

The whole idea behind conducting nearly identical surveys two years apart is so we can understand what’s changing over that two-year period in the worker mindset.

Lenin once said: “There are decades where nothing happens; and there are weeks where decades happen.”

In the case of the COVID-19 pandemic, it really does feel like a lot happened in the span of just a few years – and no less so in the workplace. So if you’re looking at worker priorities in 2021 and then again in 2023, you’re sometimes going to feel like you’re looking at two different epochs entirely.

OK – that is an exaggeration. We didn’t have an actual revolution (although some may talk about the “workplace revolution“). Some things did stay the same – for instance, the importance of flexible work. But there were some pretty significant changes in our dataset.

For instance, workers in 2023 are much more likely to be only passively open to new work opportunities (51.1%). They’re not as aggressively looking as they were two years earlier (37.3%). That’s a 13.8-point upward change – not insignificant at all.

“Overall company culture” is far more important when considering new jobs in 2023 (48.3%) than it was in 2021 (34.7%) – an upward shift of 13.6 points. Employers should take note – maybe you’re not finding your ideal candidates, but that doesn’t mean they’re not interested. They’re just not actively applying – and you can bring them out by showing off your stellar company culture in your careers page (and living by that culture, of course).

What else? As discussed in other parts of the report, we pointed to how the benefits of flexible work really started to rise to the surface after years of experience. The integration and balance of professional and personal lives and the absence of the need to commute are even bigger benefits today for those working flexibly. Again, employers should take note.

Now, that doesn’t mean everything grew in importance. Many elements of the workplace fell in importance between 2021 to 2023. For instance, management and leadership as an area of improvement dropped as a key item in the worker priority list, from 38.7% to 31.3% – a 7.4-point negative change. This also dropped in terms of what’s attractive about a new job opportunity – from 33.1% to 28.7%.

Day-to-day worker support also came down in importance from 14% to 8.5% – not big numbers, but a big drop – as did job security (27% in 2021, 21.5% now).

Evidently, in 2021, we were in the thick of the pandemic still – which meant that worker morale was likely heavily dependent on leadership, support, and security during a very uncertain and scary time for many.

We’re seeing more stability in 2023 – even as economic uncertainty remains top of mind, it still pales in comparison to what felt like existential instability in 2020 and 2021. So, now, worker priorities are shifting.

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More money won’t solve everything, say UK workers

Keith MacKenzie — Thu, 02 Nov 2023 14:42:35 +0000

What are UK workers interested in right now when it comes to jobs? This time, we have data for you on the growing value of career paths and clarity on roles and responsibilities in a job.

Top 3 takeaways

Career advancement is surging as an area of interest for those open to new roles – up to 23.6% from 17.6%
It’s not as big an area for improvement for current employees, dropping to 19.9% in 2023 from 31.3% in 2021
Clarity is what’s needed in current roles, increasing from 17.7% in 2021 to 31.1% now

Money may be integral to the UK worker (and much more so now than previously) when making a decision to take on a new job, but it’s not the only thing. There’s another takeaway here we’d like to highlight: today’s workers have a growing appetite for advancement in their careers and acquiring new skills.

In short – growth is on their minds. And the percentage of workers saying that has grown in the two-year span between 2021 and 2023. For those actively looking for new opportunities, nearly one quarter (23.6%) say the reason is they want to move to the next level in their careers – up from 17.6%.

And when asked what would get them interested in a new opportunity (even if they’re not actively looking), the lure of a better job higher up on the ladder is a driving factor for 37.8% of respondents – up 7.5 points from 28.3% in 2021. That’s the single biggest jump out of all the attractors in the list.

So, why don’t employers just build clearer and more attractive career paths for their current employees? That might have worked in 2021, but not so much now. When asked what could be improved in their current role, 31.3% of workers in the UK pointed to advancement potential, and that’s dropped hugely to 19.9% in 2023.

The clearer the job, the better

So what could employers do instead? More than one in five workers (22.5%) say that clarity of job role and responsibilities is a big factor in choosing a new job in 2023, up from 16.8% in 2021.

And when looking at clearer job roles and responsibilities in their current job, 31.1% say this is an area ripe for improvement – up from 17.7% two years earlier.

So, it really isn’t only “show me the money”. These data points underscore that companies need to focus on being clearer about what they expect from their teams. This can be the magic that really glues a team together if they’re clear on their goals and their expected deliverables.

This means stronger leaders with organizational skills who can really pull a team together and get them collectively moving the needle.

What can you do?

1. Invest in stronger leaders

Workers are expressing a clear desire for crystallized work processes. Employers should invest in and train team leaders on their organizational and strategic skills.

This means being able to take OKRs from the top and package them into understandable and realistic to-do lists for each of their team members.

2. Emphasize growth opportunities

The potential for advancement is a key factor in attracting new talent.

During the hiring process, communicate the potential for growth in the role and within the organization to entice potential candidates.

3. Enhance training and development

Continuous learning and skills development are increasingly crucial for organizational success. Companies should enhance their training and development opportunities, offering tailored programs and resources for employees to upskill and reskill – and turn those into real actionables for their work.

This not only attracts new talent but also retains current employees by making them feel valued and invested in.

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Is career development good for employee retention in SMBs?

Alexandros Pantelakis — Wed, 08 Nov 2023 15:29:50 +0000

One of the most challenging aspects of hiring employees is retaining them. In today’s fast-paced business environment with options to work remotely, employees are not keen on sticking around if they find a better opportunity, higher salary, work environment, and perks.

How then can employers retain them? Most employers veer towards career planning and development but is it an effective practice?

Let’s explore the different challenges, and why (or why not) it is good to have career development strategies in place.

In a traditional setting, employee retention is often associated with better salaries, bonuses, and paid time off. Not so for the current generation of employees. The Great Resignation of 2021 has shown us employees no longer feel they need to be shackled to jobs with low pay, no opportunities for career advancement, and work-life balance.

As much as 38% of employees will quit in the first year of employment if employers do not have anything tangible to offer on the table. It has become more and more challenging to hire and retain employees nowadays.

Why employee retention is challenging

Whether you own a small business or a large enterprise, the hard reality is that employers can’t tie down employees anymore.

The fast-paced technological advancement; the changing economic conditions; and the corresponding business needs, have given rise to the dynamic workplace where multi-skilled employees are in great demand, salaries are competitive, and well-connected workplaces are the norm.

As a result, a 9-to-5 job is a thing of the past. Better salaries, paid time off, health insurance, and such benefits may have retained employees a decade ago but today they want more.

Businesses with smaller HR budgets, find the cost of replacement as high as 33% of an employee’s salary, quite challenging to meet. This calls for the need to study and understand what today’s employees look for when they evaluate job options.

Factors that impact employee retention

Let’s get this straight: there is no one-size-fits-all approach to retention. It is relative to industry, company size, mode of operation, and workplace culture. In this article, we’ll focus on some of the major factors that impact retention in small businesses.

Global factors

The COVID-19 pandemic was one of the main reasons that small businesses were forced to cut down on human resources, cost of operations, and go into remote mode. Today, global remote teams have become a common denominator for companies with smaller budgets looking for rapid business growth.

Remote work, in particular in the technology sector where it is easy to plug into the workplace, has caused employees to re-evaluate the necessity of in-person office when they already have tools, processes, and virtual team mechanisms in place.

It also makes sense to cut down on “going to the office costs” as global inflation sets in.

Work culture

According to a Forbes article, some of the main factors that employees cited that led to the Great Resignation were feelings of disrespect, dismissive behavior of employers, and lack of transparency.

Inclusivity, diversity, accountability have become the benchmarks for employees to choose a company to work with.

As more and more employees think beyond the tangible benefits, aspects like inclusivity, diversity, accountability, etc. have become the benchmarks for employees to choose a company to work with.

The changing attitudes do not stop there. Today’s employees have high expectations from their employers. They are attracted to organizations that have:

Culture of innovation
Job goals and purpose
Engaged employers
Work-life balance
Environmentally conscious, to name a few

Employers need to really prove to employees that their organizations are worth pursuing, and not the other way around.

Competitive hiring strategies

Despite the prevailing rate of 3.8% unemployment in the United States, hiring remains robust generally. In the technology sector, some of the driving forces for hiring are the rapid rate of innovations like the development of artificial intelligence (AI), and startup unicorns entering the market with Y combinator accelerator programs.

In order to attract top technical talents in a shorter time frame, companies are adopting competitive hiring strategies.

In order to attract top technical talents in a shorter time frame, companies are adopting competitive hiring strategies.

Apart from high salaries, it’s common for employers to offer WFH, flexible hours, and four-day work week options. Throw in perks like company gadgets, paid vacation, airfare, food allowance, etc. then consider the deal done.

What can employers do about it?

Given the rapidly changing status quo of the job marketplace, employers need to adapt and adopt effective hiring strategies with retention mechanisms in place.

Having a career development strategy is a good start. Employees prefer to work for employers who plan their career paths for growth and development for the long term. This shows that the company is committed and has a clear vision for their roles in the organization.

However, career development is not enough. What employers need to do is go the extra mile if they are concerned about retaining valuable human resources for business continuity.

Planning resources and strategies

Having worked with startups with limited resources, and now at Logo Design, a SaaS small business, I understand the importance of budgets and hiring constraints. My take on this is that retention strategies do not necessarily have to be expensive. You just need creativity and commitment.

So, let’s explore the options.

1. Set clear career goals

You don’t have to be a genius to know that every person, young or old, needs a sense of purpose, and a goal in life. A personalized career plan is part of it and it starts right from the moment of the interview.

In my view, finding the right person for the right job isn’t effective anymore, after all, you can train them to the skill level that you want them to be at. A couple of years ago we engaged an intern with no skills in Adobe Illustrator or Photoshop. We trained him so thoroughly that today he’s a senior graphic designer who not only creates logos, mockups, and brand identities but also designs infographics.

My point is, finding someone with the right attitude and aspirations goes a long way. I ask myself: Can they fit in with the company culture? Will their career goals fit in with the company’s goals? Are they willing to learn on the job? Are they committed?

2. Build mentorship programs

Establishing a mentorship program is a great strategy that forces employees to work together to achieve a common goal. Mentoring not only helps the mentored but also the mentor as well.

At BalanceOne.com for example, James Wilkinson shares, “We provide job shadowing opportunities for our employees to gain valuable insights into various roles within the company. This allows them to expand their skill set and fosters a sense of camaraderie and understanding among teams.”

Job shadowing, cross-training, and buddy systems are all great options for on-the-job training and upskilling.

3. Establish upskilling and reskilling programs

Speaking of skilling, I find reskilling and upskilling programs superb tools to help team members stay abreast with technological development and industry trends, especially in the tech sector where a lot happens day to day.

For companies that can afford it, funded courses, training, workshops, seminars, webinars in AI, cybersecurity, and software, can develop a sense of loyalty towards the organization, says Maurizio Petrone of Must Read Quotes.

For employers with low or no training budgets, reskilling and upskilling can take the form of internal knowledge-sharing, training and team-building sessions.

Encouraging employees to take free online courses through Udemy, Google, Facebook, etc. helps in professional development and growth. Even making an hour a day mandatory skill learning fosters commitment to a company that values their contribution.

Besides, Sarah Jeffries, Managing Director of First Aid Course Leicester adds, “By working on projects they are genuinely passionate about, employees not only gain valuable experience but also acquire new skills and insights that contribute to their overall professional growth.”

4. Ensure an inclusive and respectful company culture

People by nature are communal. So, building a community is not that difficult. What matters most is developing a culture of inclusivity, transparency, and accountability in that community. How do you do that?

Anand Krishan of SlidetBazaar tells us, “We openly share our company’s performance and emphasize that their contributions matter in our journey. We position ourselves as underdogs fighting against industry giants, encouraging our team to be the driving force behind our success.”

As we have discovered earlier, one of the most important factors that influence employees to quit is disrespect. Disrespect comes in all forms, ranging from abuse, and bullying to dismissive behavior.

At Logo Design, we maintain a respectful company culture from top to bottom and vice versa. Abusiveness, harassment, and bullying are not tolerated because we’ve seen that news about them tends to spread in the candidate circle and discourages them from applying to the company that harbors such a reputation.

Moreover, an open-door policy has helped me check on employee motivation levels; address grievances and feedback on the spot; and keep a check on managers as well.

The bottom line is if you treat employees with respect, trust, and recognition, David Zhang of KateBackDrop emphasizes that you are gearing for a positive work environment that will make employees think twice before leaving such a robust company culture behind.

5. Recognize and reward development

Where there is so much going on, rewards and recognition can’t be that important. Wrong!

Employees are as hungry for recognition and rewards as they are for the above elements for career development.

Employees are as hungry for recognition and rewards as they are for the above elements for career development.

For an employer of a small business, like mine, it is difficult to shell out monetary bonuses for everyone. What we can do is celebrate small achievements with verbal recognition, written notes, time out, books, free redeemable coupons, etc. that can make a difference and encourage healthy competition.

Having said that, yearly appraisals, performance bonuses, paid vacation including airfare, etc. attached with monetary values have their charm too.

If you can’t have both then at least have one in place to make employees feel acknowledged and earn satisfaction through rewards.

6. Prioritize work-life balance, a reduced workweek, and flexible hours

In recent years, work-life balance has gained a great deal of popularity, and rightly so. In countries like Japan, the U.S., and others, where “work is life” devalues personal relationships, quality of life, and purpose of work, employees realized after the pandemic that they can have both work and life balanced out, which has given employers cause for concern.

Hence, strategies for work-life balance with flex hours, reduced workweeks, and ensuring personal needs like maternity and paternity leaves, and childcare are met, have made companies like Google, Apple, Tata, etc. the best places to work.

According to Phil McParlane of 4dayweek.io over 95% prefer to have 4-day work week but only 0.5% of companies offer this. Any company that offer this perk can have a retention rate as much as 80-90%. Those are staggering numbers.

They have proved that changing the way we work has in fact increased productivity rather than decreasing it. These strategies are not difficult to implement, just need the commitment and processes to accommodate work-life needs.

So, does career development help in employee retention?

The short answer is yes. Career development does help in employee retention. But it can’t be the only strategy.

Employers need to think beyond this, to help employees envision their personal and career development goals and aspirations. By combining the value of their work, people they associate with, a community, and trust of the organization, employers help their people develop a sense of wellbeing, job satisfaction, and achievement when they commit their lives to the company.

Developing an engaged and inclusive work culture is critical for retention as well. In a study by Advanced, where Nick Gallimore is Managing Director, reports about 73% of employees are of the view that their organizations could engage more with them.

Instead of the traditional yearly performance appraisals, today’s employees are keen on getting instant feedback for improving skills and personal development.

Instead of the traditional yearly performance appraisals, today’s employees are keen on getting instant feedback for improving skills and personal development.

It fosters a culture of continuous learning which adds value to skilled resources.

Feedback also opens up channels of communication in real-time, and allows employers to resolve grievances as they work together. They are able to recognize and reward deserving employees and acknowledge their roles in contributing to the company’s mission. This way, a sense of trust, loyalty, and community is developed between them, making employees reluctant to leave.

Finally, retention is about making employees feel they are part of a bigger picture rather than just a peg in the wrong hole.

Janil Jean is the Head of Operations at LogoDesign.net. She loves to write about branding, small business, organizational development, careers, and digital marketing. She is the owner of multiple blogs including BusinessSchoolHub.com, and a contributor for Newsbreak, eLearning, GoSkills. Connect with her on social media: LinkedIn, Twitter or Facebook.

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7 in 10 workers lie in resumes – how do you catch them out?

Alexandros Pantelakis — Fri, 10 Nov 2023 13:30:30 +0000

“Oh mum, I didn’t do it,” “I feel sick today, I don’t want to go to school,” “Yes, I finished my homework,” “It wasn’t my idea,” “I didn’t hear you call me.”

Do all these tiny, innocent lies sound familiar to you?

It would be a lie to not admit it.

We choose to lie from our childhood in our perpetual struggle to seek attention, to test our limits, or to avoid punishment. And it’s okay.

Lying is a sign that we have a steep imagination. It’s a step to our cognitive development and a way to be more independent at some point. It’s a way, if you want, to discover the value of honesty. It works fine when we are kids.

Lying in resumes is true

In adult life, things are different. As kids mature, they usually outgrow these fibs. They need to be honest in their personal and professional relationships. But some lies remain innocent.

Lying on your resumes isn’t the end of the world. Actually, 7 in 10 workers do it in different ways, and guess what, they include applicants in your company – and those you’ve already hired.

Today, as AI generative tools set in, it is easier than ever to present yourself in such a way that is a stretch of reality. However, when you repurpose a cover letter or leave AI to craft your whole CV without letting others know, is it still a lie of the same gravity?

Boundaries of lying may be subjective, but candidates choose to lie for one reason: to increase their appeal to the recruiter and to receive the coveted invitation for the job intervIew.

Perfect candidates are no longer the case

It is not surprising that for many years, the HR industry has been focused on finding the perfect candidate. However, discussions about diversity, on-the-job training, and hiring without borders were not being considered.

This practice drove many candidates to start lying about their hard and soft skills in order to present a better version of themselves and schedule an interview.

The interview remains until today the best process of identifying lies such as educational background, inflated work experience, time gaps, false skills, or a criminal record.

As a recruiter, you can encourage people to be honest, even by updating details in your job description about the company culture and your needs.

Don’t write a job brief that attracts only the best of the best. Instead, write a job description that embraces talent and different skill sets that could be helpful for your organization.

Give opportunities to rising talents and offer competitive on-the-job training to create the kind of employee that other companies would be jealous of.

But what happens even when you are so open and honest, and still come face to face with blatant lies? 75% of HR managers still catch a lie on a resume. How can you identify them? Let’s go deeper.

Can AI tools help candidates to lie better?

AI tools are prone to learning and they react based to what we prompt them.

This implies that if a candidate fails to include important details or, in a more concerning scenario, deliberately provides false information about their qualifications, the AI tools will incorrectly attribute those qualifications to the candidate.

Do you see the chaos that is coming? Don’t panic, because there are ways that can help you identify it.

How to find out if a candidate is lying?

You don’t have to buy a lie detector to identify if a candidate is lying. There are some indicators that could help you during the interview process to have a clear sentiment about it.

Some steps require being proactive as you navigate this labyrinth. Here are some actions you can take:

1. Employment verification

Verifying your employment history is a standard procedure. Employers reach out to former managers or HR departments to confirm details like dates of employment, job titles, and roles. Any discrepancies may be red flags. Don’t go crazy about it.

You can have a clear image just by visiting the candidate’s LinkedIn profile.

Did you know that lying is more common in high level positions? For example, employees in management and executive positions were found to be more prone to exaggerating their AI skills compared to other employees according to ResumeBuilder.

2. Background checks

Background checks delve into personal and criminal histories. If the information they provided conflicts with the findings of a background check, their credibility takes a hit.

3. Reference checks

References play a crucial role. Employers may contact the individuals that candidates listed to vouch for their character. Inconsistencies in the information may surface during these conversations, especially if they have resorted to using false references.

4. Interview inconsistencies

Lying during an interview is risky. Nervousness or the inability to answer industry-related questions can raise suspicions. Hiring managers noticing inconsistencies may prompt further investigation.

5. Educational background verification

Employers can verify candidate’s educational credentials by contacting the institution or using third-party services. Falsifying academic achievements can be uncovered through these checks.

6. Job assessment

Some companies incorporate skills tests in their hiring process. Discrepancies between claimed skills and test scores may expose dishonesty.

7. Inconsistent resume information

Hiring managers scrutinize every application component for coherence. Inconsistencies in job titles, duties, or an exaggerated career path may trigger deeper investigations.

And remember: 51% of candidates may have gotten a bit more excited when describing their job role in their resumes.

8. Lack of explanation

Vagueness in your resume or during the interview may signal a lack of actual skills or experience. Inability to provide specific details could lead hiring managers to question candidates’ qualifications. Embellishing responsibilities (52%) is the main reason for lying.

We live in a bad world, but we still have to believe in people. They are the most important asset of a company. Getting prepared means being ready to catch any lie, but there is no need to be an alternative to a truth detector. Look deeper and seek potential.

Think about all the reasons why kids used to lie.

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Not just money: growth and L&D are key for US talent attraction

Keith MacKenzie — Tue, 07 Nov 2023 17:00:10 +0000

What’s happening in the evolving US job market right now? We have data for you on how workers value compensation.

Top 3 takeaways

Career advancement is surging as an area of interest for those open to new roles – up to 22% from 15.8%
Training & development is also a growing area for improvement in current roles, now at 23.3% from 20.9%
Overall and day-to-day support in the workplace is dropping both as a reason for a new job (14.5% now vs. 19.3% in 2021) and as an area for improvement in a current job (13.9% vs. 17.7%)

Money and balance are crucial and essential in the modern worker’s mindset – but they’re not the only things. Today’s workers have a very strong appetite for advancement in their careers and acquiring new skills. There’s such a thing as a “ladder” in the workplace and they want to climb it.

Of workers who were open to new opportunities whether passively or actively, 22% said the reason is that they are very interested in moving to the next level in their careers – and that’s up from 15.8% in 2021.

And of all workers, what would get their interest for a new job opening? The lure of a better job higher up on the ladder is a major factor for 37.9% of respondents – which actually is largely unchanged from 38.1% in 2021, albeit still very significant.

Those workers also say they want to grow in their current area of employment – 34% say advancement potential is something that could be better in their job, up from 32.3% in 2021.

Learning & development

Closely aligned with a positive career trajectory is building one’s skill set through learning & development opportunities. That desire remains significant for one in seven workers – 16% now, just a touch up from 15.6% in 2021 – when considering the appeal of a new job.

Likewise, when asked what could be improved about their current role, 23.3% pointed to L&D – up from 20.9% in 2021.

And interestingly, the need for more support at work is dropping. In 2021, 19.3% said that’s what they want to see in a new job, and the percentage has dropped significantly to 14.5% in 2023. Ditto for their current workplace – 17.7% said as much in 2021, and that’s now down to 13.9% in 2023.

So, “show me the money” isn’t the only thing. These data points underscore that companies need to focus on creating opportunities for personal and professional growth. Workplaces aren’t just workplaces – to be truly productive environments, they must be fertile ‘growth places’ where employees can see a clear trajectory for their professional advancement.

The drop in need for support indicates that workers may be feeling more confident, and/or employers have risen to the challenge of supporting their workers through the tumult of the last few years – creating a fertile ground in which employees now feel they can thrive.

What can you do?

1. Invest in career development

Workers are expressing a clear desire for advancement.

Employers should invest in systems that allow for clear career progression, such as implementing transparent career paths and promoting from within.

2. Emphasize growth opportunities

The potential for advancement is a key factor in attracting new talent.

During the hiring process, communicate the potential for growth in the role and within the organization to entice potential candidates.

3. Enhance training and development

Continuous learning and skills development are increasingly crucial for job attractiveness. Companies should enhance their training and development opportunities, offering tailored programs and resources for employees to upskill and reskill.

This not only attracts new talent but also retains current employees by making them feel valued and invested in.

The post Not just money: growth and L&D are key for US talent attraction appeared first on Recruiting Resources: How to Recruit and Hire Better.

The human connection at work: half of US workers value culture

Keith MacKenzie — Tue, 24 Oct 2023 13:51:28 +0000

What’s happening in the evolving US job market right now? We have data for you on how workers value the human connection at work.

Top 3 takeaways

Company culture emerging as a top factor when choosing a new job – nearly half say so now vs. 34.7% two years ago
Transparency and responsiveness are increasingly attractive now, growing to 25.4% and 34.6% from 18.7% and 31.3% respectively
Worker relationships remain a key factor – and corporate leadership is diminishing in importance

The human connection is strong – including in the workplace. And it’s even more important to workers in the US now.

There are two kinds of connections in a job: first, the connection of the employee to the company where they’re working, and second, the connection between colleagues.

First, the company – nearly half of all workers in our survey (48.3%) ranked “overall company culture” as a major factor in what would lure them to a new job opportunity – that’s up nearly 14 points from 34.7% in 2021. Pretty big jump.

The importance of “company transparency” also saw a significant bump, from 18.7% in 2021 to 25.4% in 2023 as an attractive item in the list of very-nice-to-haves for a new job.

What about in their current jobs? Workers echoed the same sentiment – especially when they were asked what could be improved about their current working situation. “Overall company culture” (32.9%, up from 24.7%) and “company transparency” (28.7%, up from 20.8%) were top items in what could be made better at their current job in 2023.

Relationships a core of total rewards

Similar trends are seen in employee working relationships. While not much higher than 2021’s 37.1%, “relationships with colleagues” remained near the top at 38.7% in 2023 – the second-highest attractive item after company culture when evaluating new opportunities.

Interestingly, the relationships with those up the ladder aren’t nearly so high. “Management and executive leadership” saw a drop both as a new job attractor (from 33.1% to 28.7%) and as an opportunity to improve in a worker’s current job (from 38.7% to 31.3%).

This points to the growing importance of lateral working relationships in the total rewards package for the modern worker – perhaps that indicates a desire to build stronger connections after years of pandemic-related isolation.

What does all this tell us? Employees are increasingly interested in their organization’s decision-making process, in other words transparency. They want to know the role they’re playing in that larger company vision – and the role they’re expected to play – and they also want to feel included. They want to feel that they belong. In other words, DEIB continues to be valuable.

These shifts also highlight the value of the social aspects of work – i.e. the ‘watercooler’ – and suggest a power balance shift towards employees who want respectful and supportive environments. The rise in “coffee badging” shows this reality.

It’s understandable, considering the volatility of recent years – and when combined with the greater emphasis on job security above, we’re seeing that workers really do covet stronger professional and social foundations more now than before.

What can you do?

1. Strengthen company culture

The increased emphasis on company culture calls for organizations to put more effort into defining and communicating their values, ethos, and work environment clearly.

Building a supportive and inclusive company culture can serve as a strong attractor for potential employees.

2. Promote transparency and responsiveness

Companies should strive to be more transparent in their decision-making processes and responsive to individual employee needs.

Regular open forums, Q&A sessions with leadership, and timely response to employee concerns can help foster a culture of transparency and responsiveness.

3. Encourage collaborative relationships

The data suggests that lateral working relationships are growing in importance. Therefore, encouraging teamwork, collaboration, and social interaction among employees could be key.

This might include team-building activities, collaborative projects, and providing communication tools that facilitate better peer interaction.

The post The human connection at work: half of US workers value culture appeared first on Recruiting Resources: How to Recruit and Hire Better.

Money money money – not just funny in the US worker’s world

Keith MacKenzie — Tue, 31 Oct 2023 17:49:06 +0000

What’s happening in the evolving US job market right now? We have data for you on how workers value compensation.

Top 3 takeaways

Salary / perks / benefits is already a top attractor, and even more so now – up to 68.9% from 62.2% two years previously
It’s growing as a major area for improvement in current jobs too, to 63.7% from 57.4%
While money is still a top priority when actively looking for work, it’s not as high as before – 58.5% compared with 63.4% two years ago

This really isn’t surprising: money is often the great differentiator in any decision – and that’s the case in our Great Discontent study.

Compensation was already a clear priority for most workers in the 2021 dataset – and it’s even more so now. The percentage of those who picked salary / perks / benefits as one of the major reasons they’d find a new job attractive grew from 62.2% in 2021 to 68.9% in 2023.

And of those who say their current job could be improved, 63.7% say salary / perks / benefits could absolutely be better – and that’s also up from 57.4% in 2021.

Here’s where it gets interesting: the “need to make more money” actually dropped as a reason why employees are actively looking for new work, from 63.4% to 58.5% over the two-year period.

This signals that when people are looking for new opportunities, it’s not necessarily always because of money – and with active candidates dropping to 22.6% from 33.4%, this tells us that workers in 2023 are staying put where they are. It’s the safer and more secure option in this uncertain economy.

Regardless, the data is resoundingly conclusive – compensation reigns as a top priority across the board. Well-compensated employees will ultimately be happier, and jobs are more attractive when they’re paid well.

What can you do?

1. Reevaluate compensation packages

With the increased focus on salary, perks, and benefits, employers should periodically reassess their compensation packages to ensure they remain competitive and attractive.

This can involve benchmarking against industry standards and considering factors such as cost of living and inflation.

2. Enhance benefits offerings

Besides salary, the emphasis on perks and benefits calls for a more comprehensive and enticing benefits package.

This could include health benefits, retirement plans, wellness programs, flexible work schedules, remote work options, and professional development opportunities.

3. Create attractive offers to lure passive candidates

With a significant rise in the number of passive job seekers, employers need to craft compelling offers to attract this group.

This could mean not just offering a competitive salary, but also demonstrating the potential for career growth, a positive work culture, and a strong commitment to employee well-being.

The post Money money money – not just funny in the US worker’s world appeared first on Recruiting Resources: How to Recruit and Hire Better.

6 workplace stories that will give you the pumpkin chills

Alexandros Pantelakis — Tue, 24 Oct 2023 16:50:33 +0000

Imagine on a spooky Halloween eve at a company close to your office. As dusk falls, the Slack channels suddenly come alive.

Messages from accounts of old colleagues, who left the job under unclear circumstances, start popping up, sharing ghostly gripes about bugs they never managed to fix.

With each eerie emoji and spooky screenshot, a cold breeze of past frustrations sweeps through the sleek office. The ghosts of former coders moan about their never-ending backlog, spooking the current team into a fixing frenzy.

Employees start to panic, but quickly understand that this was just a prank.

Horrifying workplace stories do exist

I know we set the expectations high but talking about reality things are different.

We don’t have ghosts, but we do have bad employees or employers. We are not afraid of the cold, but we don’t like cold relationships within the company we work for. We don’t have fictional stories, but we have real and even more terrifying experiences from our previous roles.

Every story that you will read below has a difficult situation, a lesson to be learned, and action items (or let’s say treats) to avoid it happening in your company.

Take the steps after each story, and you won’t have to worry about making it to this list in the coming years.

Are you ready for spooky workplace stories and lessons to be learned from each? And please, don’t creep up with our titles because they are all coming from related scary movies or songs.

1. Terrifier

Some colleague gestures can be terrifying. Let’s consider the story above about a hygiene incident that makes people feel uncomfortable.

“In my previous job, the HR manager visited the workplace kitchen to pour herself a cup of coffee. There was already a coworker in the kitchen who was also helping themselves to some coffee.

“At one point, the coworker picked up the teaspoon that was inside the sugar container, ate a teaspoon of sugar, and then put the teaspoon back inside the sugar container. The HR manager was obviously baffled and had to explain basic hygiene to our coworker.“

Lesson to be learned

We avoid sugar as it is unhealthy.

Just kidding.

Maintaining good hygiene at the workplace is paramount for several reasons.

Firstly, it helps in fostering a healthy environment, reducing the transmission of diseases like the common cold, flu, and even more serious illnesses, which in turn decreases absenteeism.

Secondly, a clean and hygienic environment enhances the overall image and perception of the business, showing professionalism and care towards both employees and clients. Thirdly, it promotes a sense of well-being and satisfaction among employees, which can boost morale and productivity.

Furthermore, adhering to hygiene standards is often a legal and regulatory requirement in many industries, particularly in healthcare and food service, where poor hygiene can have dire consequences.

Lastly, good workplace hygiene practices like regular cleaning, waste management, and personal cleanliness contribute to creating a safer workplace by preventing accidents and ensuring the well-being of everyone on the premises.

Action items

To avoid hygiene incidents at work, it’s crucial to establish and communicate clear hygiene policies that align with local health regulations.

Regular training sessions should be organized to educate employees on the importance of hygiene and proper practices. You can use posters on the walls to help your employees understand the process of using common devices or working materials.

Providing adequate hygiene facilities like restrooms and sanitization stations, along with necessary supplies such as soap and hand sanitizers, is fundamental.

Scheduling regular cleaning, maintenance, and hygiene inspections will help in ensuring a clean and compliant environment.

In this case, establishing a reporting mechanism for hygiene concerns and recognizing good hygiene practices among employees could be very helpful.

2. A quiet place

The restroom is always a quiet place, but in this story, it was an actual workplace.

“I worked as an assistant and received a call at 8:00 pm on a Friday while I was out at a bar. My boss had missed their ferry and could not get on another one. My boss said I had to figure it out right then and there, or they would miss a “networking” party that was apparently of utmost importance.

“I called the ferry company from the bathroom of the bar to find out if I could purchase a ticket for the last ferry out. They informed me that it was completely sold out and there was no way to get my boss and their car onto the ferry.

“There was no other option than to be completely honest with the ferry company. ‘I am locked in a bathroom stall at a busy bar, trying to complete this task, and I know that if I fail, I will be in a lot of trouble on Monday’, I said.

“They took pity on me (I mean, who wouldn’t) and the ferry company allowed my boss to get on the ferry even though they were at capacity.

“The whole ordeal took an hour, and not only did my boss JUST make the ferry by 3 minutes, but someone sent the bouncer into the bathroom to check on me because I had been in there for so long.

“To add to it all, I then had to call and RSVP to said party for my boss… the night before the event… and they made sure to ask me if my boss would prefer lobster or steak.”

Lesson to be learned

Steak is always a better option.

Again, kidding.

Achieving a harmonious work-life balance is essential for both personal and professional fulfillment. It entails managing career demands alongside personal responsibilities and leisure activities, ensuring neither sphere is neglected.

A well-rounded work-life balance contributes to improved mental and physical health, reducing stress and the risk of burnout. It fosters enhanced productivity and creativity at work, as individuals are more likely to feel motivated and less fatigued.

Additionally, a satisfactory work-life balance supports better relationships with family and friends as it allows for quality time and engagement outside the professional realm.

Moreover, it cultivates a positive organizational culture, attracting and retaining talent while promoting a holistic approach to employee well-being. The ripple effect of a balanced work-life dynamic extends beyond the individual, benefiting families, communities, and organizations at large.

So, when thinking about the best choice between lobster or steak, just remember that everything in life is the result of our choices. The same applies to jobs as well.

Action items

To foster a better work-life balance, it is critical to respect the working hours and maintain job responsibilities that reflect the actual role.

A toxic boss can cause employees to leave their jobs, regardless of their qualifications, thereby harming your own business. Keep boundaries within reason and don’t confuse your personal life with your professional life.

While it is really difficult to confront a toxic boss, there are steps that HR can take to balance work life with personal life, making employees feel satisfied with their jobs.

As a first step, implementing long-term flex work or remote work options, allowing employees to tailor their schedules to personal needs.

HR should also consider introducing a robust paid time-off policy, encouraging employees to take breaks for rest and personal pursuits.

Your company can also promote a culture that values balance through regular communication and workshops on time management and stress reduction.

Establishing clear boundaries between work and personal time, such as discouraging after-hours emails and meetings, can help in maintaining this balance.

3. Want your bad romance

Workplace affairs may look interesting for a movie, but in real life, things are different. A bad romance could cost you your job, or even worse, harm your own business. And we have a true story about that.

“I once worked in an early-stage start-up where it was clear that my boss was having marital issues. It was a very early-stage company, and only a handful of us were in the regional office, so it was difficult for him to hide his black eye when he came in one day.

“It turned out that he was having an affair with a colleague from an office in a different country. When he confessed to his wife that his next trip away for a week was actually to see his mistress and not work from the other office, his wife punched him in the face and cut up his passport in front of him.

“At the next company retreat, things between them became official, and the founders of the company discovered their secret affair when they started making out in front of everyone after a few drinks at the work party. The worst thing was that it wasn’t the only affair that happened on that company trip.“

Lesson to be learned

You don’t need to be a Don Juan at your work.

Navigating the terrain of workplace relationships can be complex, and often, maintaining a clear boundary between professional and personal interactions is advised.

This distinction is crucial for several reasons.

Firstly, it helps in preserving objectivity and impartiality, ensuring that decisions are made based on merit rather than personal affiliations.

Secondly, it reduces the potential for conflicts of interest or perceived favoritism, which can negatively impact team dynamics and morale.

Thirdly, it minimizes the scope for personal issues to infiltrate the professional environment – like it happened in the above story – thereby maintaining a focused and productive work atmosphere.

Lastly, maintaining a professional demeanor at work contributes to building a respectful and harmonious workplace culture, which is conducive to the overall growth and success of the organization.

Action items

To prevent complications arising from personal relationships at work, HR professionals or company owners should establish clear policies regarding such relationships, especially between supervisors and subordinates, ensuring there’s a process for disclosure and management of conflicts of interest.

Regular training can educate employees on the importance of professional boundaries. Open communication channels should be established for discussing concerns, alongside robust conflict resolution mechanisms.

Transparency and disclosure of personal relationships should be encouraged, with regular monitoring to identify potential issues.

Fostering a professional work environment, creating alternative reporting structures, and establishing feedback loops can further mitigate challenges.

4. It

This boss is the one who floats new jobs over to you – like Pennywise – even after you think you’re done work for the day. And then before you know it, they’re gone.

“I once had a boss who loved to power trip. During a 6:30 PM call, she asked me to create a PowerPoint for her client meeting later that week. I informed her that I would have it finished by the end of the day tomorrow, but I needed to confirm a few things with the product team first.

“She criticized me, saying that I should already know the answers and shouldn’t need input from the product team. She emphasized that it was urgent. Naively, without realizing that I should have stood up for myself, I stayed up late working on the PowerPoint for her.

“I completed it that night and sent it to her for feedback. However, I never received any response from her. Two days later, when I checked on the deck, I discovered that she hadn’t even opened it. It seems that it wasn’t as urgent as she claimed.

Lesson to be learned

Messages are practicing social distancing from eyeballs too.

Maintaining defined working hours – and respecting them – is crucial for several reasons. Firstly, it helps in establishing a clear structure and routine, which is beneficial for both the employer and employees.

This structure aids in managing workloads effectively, ensuring that tasks are completed within set timelines.

Secondly, adhering to specified working hours promotes a healthy work-life balance, as employees can plan their personal activities around their work schedules.

Thirdly, it fosters a sense of fairness and equality within the workplace, as all employees are expected to abide by the same working hours.

Fourthly, it aids in compliance with labor laws and regulations, which often stipulate the maximum working hours and overtime provisions.

Lastly, maintaining consistent working hours helps in building a professional work culture, setting clear expectations regarding availability and commitment, which in turn contributes to better productivity and a harmonious working environment.

Action items

To ensure adherence to defined working hours, it’s important to set clear working hours policies outlining the standard time of work, overtime, and procedures for requesting changes in work schedules.

Communicating these policies effectively to all employees is crucial. Implementing time-tracking tools can provide a transparent way to monitor attendance and working hours.

Training managers on the importance of respecting working hours and how to manage their teams within these constraints is also essential.

Encouraging employees to voice any concerns regarding working hours and being open to providing flexible working arrangements where possible can also promote adherence.

5. The haunting

Haunting or hunting, this story has many definitions. From the haunted truck that doesn’t move to the hopeless hunt for better working conditions, this story will remind you of the first jobs you had to do in your early years to earn your first money.

“When I was about 19 and willing to take on (almost) any job, I took on a role as a mobile ice cream vendor with an ice cream cart – basically, an ice box on bicycle wheels with pedals so you could ride it to any location and sell ice cream bars to anyone who wanted it.

“It was a commission-paid position so we only got to make decent money if we could sell enough ice cream bars throughout the day. Us new hires were assured that we’d make pretty great money doing this.

“My very first day was perfect for ice cream – a hot summer day. A truck filled with ice cream carts came around and picked up all of us and dropped us off at strategic locations throughout the city with the promise that they’d come back to get us at a specific time later that evening.

“When they dropped me off, they gave me a broken ice cream cart with no pedals on it, meaning I was not mobile at all. They also told me not to go anywhere near the beach because that was forbidden by city bylaws, and not to go anywhere near the street because of another reason I can’t recall.

“Basically, I had to stay put in an awkward location next to a large parking lot with no ability to go anywhere, even for a quick lunch break.

“And then they were two hours late coming back to pick me up and by that time I was hungry and tired (and not a little bit grumpy!).

“But at least I’d get my commission, right? Well… turned out the commission was so low that when averaged out over the day, I actually made far less than the legal minimum hourly wage. When I protested, they basically said too bad for me and that I should have sold more ice cream bars.

“The next day, I waited 2-3 hours before the truck came around to pick us up – basically, 2-3 hours where I wasn’t getting paid. By the time the truck finally showed up, it was too late – I had already quit and walked home and started looking for another job.”

Lesson to be learned

You will never have an ice cream after reading this.

OK, in all seriousness: respecting employees and providing them with the necessary resources to excel in their roles is fundamental to a thriving organizational culture.

When employees are treated with respect and are well-equipped, they feel valued and empowered, which in turn boosts their morale, job satisfaction, and loyalty to the organization.

This positive environment fosters a collaborative spirit and enhances productivity as employees are motivated to contribute their best.

Providing the necessary tools, training, and a conducive work environment also manifests in the quality of work output, as well-equipped employees can perform their tasks efficiently and effectively.

Action items

To foster a culture of respect and ensure employees have what they need to excel, organizations should engage in regular dialogue to understand employees’ needs and concerns.

It’s crucial to provide the necessary tools, technology, and training that empower employees to perform their tasks efficiently.

Establishing clear communication channels for employees to express their needs, and providing timely responses to such requests, demonstrates respect and consideration.

Promoting a culture of recognition, where employees’ contributions are acknowledged and rewarded, can also reinforce a sense of respect and appreciation.

6. The invisible man

It takes great talent to be an invisible man. This movie title describes both the manager and the candidate. The manager knew how to disappear after making the offer, and the candidate began to question whether all of this was really happening or if it was just in their imagination.

“A few months ago, I had to book flights and travel to another city for an interview. It was a role that I really wanted because it was closer to my ambitions and studies. Fortunately, they liked me and told me that I was going to be hired. I can’t describe how happy I was.

“Before giving my final answer, I asked for two days because it was a big decision for me. I had to give a notice to my other job and to begin the procedures of relocating to a different city. I called the manager who offered me the job, but he didn’t answer. Okay, he must have been busy, I thought.

“So, I sent him an email accepting his verbal job offer. I waited for days to receive a sign of life from him confirming everything we said that day.

“After this short conversation HR finally called me and said, ‘Welcome to our family.’ ‘Okay, great, but when am I supposed to start?’ They told me, ‘I don’t know. Relocate to the city from your hometown, and we will let you know.’ ‘Yes, but I need proof. Can I have an official job offer?’ They replied, ‘Yes, of course.’ They cc’d the manager, and I never heard anything from them.”

Lesson to be learned

There is a skill that makes you invisible.

Experiencing a situation where a hiring manager extends a verbal job offer and then disappears can be disheartening and unprofessional.

This scenario reflects a lack of communication and possibly a lack of respect or consideration for the candidate’s time and expectations.

From a recruitment perspective, this behavior might indicate a lack of transparency, organization, or commitment to following through with the hiring process.

Recruiters and hiring managers should exhibit a high degree of professionalism and clear communication throughout the recruitment cycle to maintain trust and uphold the organization’s reputation.

This situation may also indicate a lack of proper processes or guidelines within the organization for extending job offers and managing communication with candidates.

Action items

To prevent situations like a disappearing hiring manager post verbal job offer, organizations should establish clear recruitment and communication protocols.

Firstly, a structured and documented process for extending job offers, both verbal and written, should be in place, ensuring consistency and professionalism.

Secondly, training hiring managers and recruiters on the importance of clear communication and follow-through with candidates is crucial.

Thirdly, implementing a centralized applicant tracking system for all communications and job offers can provide transparency and accountability.

Fourthly, designating a point of contact within the HR department for candidates to reach out to for updates or clarifications can mitigate communication breakdowns.

Lastly, fostering a culture of respect and empathy towards candidates, and understanding the impact of the hiring process on the organization’s reputation, will help inculcate a more responsible approach towards recruitment communications.

We are sure that now you believe that the most terrifying stories do not come from movies or Halloween, but from real life.

The good news is that we can make an impact and reverse these situations to achieve a positive outcome.

Let’s give a happy ending to all these stories by being more transparent, communicative, and professional with our employees.

Want to read more real-life horror stories from the workplace? Check out Workplace horror stories we wish were not real.

And want to share your own story? Send it to us at content@workable.com with “Workplace horror” in the subject heading!

The post 6 workplace stories that will give you the pumpkin chills appeared first on Recruiting Resources: How to Recruit and Hire Better.

Methods: gravitating to success in diverse recruitment

Keith MacKenzie — Fri, 20 Oct 2023 16:02:32 +0000

My name is Jordan Adams, and I am the Talent Acquisition Manager at Methods. I have experience spanning over 10 years managing recruitment functions within a mix of both public and private sectors.

My collaborator, Karen Nell, has been in the Learning and Development industry for over 25 years and is the Learning and Development Manager at Methods. Karen oversees the GRAVITATE program and works with myself, and HR, who then team up with the respected Portfolios to help initiate and support the process end to end.

We aren't the experts – you are!

Are you a business or HR professional who overcame a workplace challenge and want to share tips and advice with your peers? Share your workplace story with us!

Make your pitch!

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The power of collaboration

The path forward became clearer when I began working closely with Karen. Karen’s extensive experience in the field made her an invaluable ally. Our mutual dedication to our roles, complemented by our regular discussions strengthened our partnership – especially in pre-meetings around our much-loved coffee machine.

At the heart of our efforts is GRAVITATE, the brainchild of our Head of HR, Sarah-Jayne Smith.

This initiative, represented by the acronym for Graduates, Returners, Apprentices, Veterans, Interns, Into Tech, and Transformation Employment, outlines our dedicated approach to broadening our talent pool:

Graduates: Fresh faces from schools, colleges, and universities, eager to dive into the tech world
Returners: Those resuming work after taking a hiatus, bringing along a reservoir of skills and past experiences
Apprentices: Enthusiasts looking to learn while they work, building skills on the job
Veterans: Individuals with a history of service, offering unique perspectives and discipline
Interns: Early-career individuals seeking hands-on experience in the tech sector
Into Tech: Those transitioning from other sectors, keen to explore the world of technology
Transformation Employment: Professionals looking for a shift in their career trajectory, seeking roles that may differ from their previous experiences

The action items

Together, Karen and I embarked on refining every aspect of our strategy. We recognised that we had to revisit the whole process, including understanding business requirements at Methods, and revising our sourcing methods right through to tailor-made specific training for our cohorts.

We have been collaborating in gathering business requirements, sourcing methods, and attending events, and the entire recruitment process to the final stage of hiring before actual employment.

This then included the onboarding of a new employee, with an induction and a formal training plan in place.

This has given our stakeholders an effective solution to bringing the next generation of talent into the business.

The results

Since implementing GRAVITATE, we’ve seen a noticeable increase in the diversity of our recruits. There’s a marked shift in company culture that’s more welcoming and inclusive. The connection between our employee retention rates and the GRAVITATE initiative speaks to its effectiveness.

The initiative represents our ongoing effort to redefine talent acquisition. It’s a reflection of Methods’ spirit of diversity and inclusion, and recognition of the range of values that each individual can bring to the table.

Here’s to a future rich in varied talents, experiences, and perspectives.

It’s a reflection of Methods’ spirit of diversity and inclusion, and recognition of the range of values that each individual can bring to the table. Here’s to a future rich in varied talents, experiences, and perspectives.

Jordan Adams is a passionate, inclusive, and skilled talent acquisition professional with a track record of success across sectors over a number of years. He specializes in building, maintaining, and managing real talent through a coaching approach.

The post Methods: gravitating to success in diverse recruitment appeared first on Recruiting Resources: How to Recruit and Hire Better.

What’s the UK worker’s ideal habitat? It includes humanity

Keith MacKenzie — Thu, 26 Oct 2023 16:23:22 +0000

What are UK workers interested in right now when it comes to jobs? This time, we have data for you on the longer-term benefits of remote work and flexible schedules for workers in a job right now and how that’s changed since 2021.

Top 3 takeaways

Company culture emerging as a top factor when choosing a new job – more than four out of 10 say so now vs. 34.7% two years ago
Executive leadership surging as a major area in need of improvement at current jobs, from 27.2% to 36.2%
Worker relationships remain a key factor – and so is overall company culture

The various facets of the “human connection” in the modern workplace are surging in importance for the everyday worker in the United Kingdom.

There are two forms of this connection: the connection of the employee to the company where they’re working, and the connection to their fellow colleagues in the workplace

Connection with company

First, let’s look at the employer connection. More than four out of 10 workers (40.8%) in the survey ranked “overall company culture” as very important when looking at new job opportunities – and that’s up from 34.7% in 2021.

“Management and executive leadership” also grew in importance over the two-year span, from 23.4% in 2021 to 29.6% in 2023 in terms of new job attractiveness.

UK workers also want to see both of these in their current place of employment. We asked survey respondents whether there was something that could be improved in their job – and of those who said yes, we asked what that improvement should be.

They also highlighted management and executive leadership as a major focal area, up sharply to 36.2% in 2023 from 27.2% two years earlier.

Connection with fellow workers

Worker symbiosis is also high in priority in the UK. For instance, relationships with colleagues grew as an item of importance, from 31.8% in 2021 to 36.2% in 2023.

Overall company culture is also high up the list, from 24.8% to 31.3%, and perhaps most dramatically of all, the percentage of those who picked brand reputation as an area in need of improvement nearly doubled from 7% to 13.8%.

What does all this tell us? Employees are increasingly interested in their organization’s leaders – a strong, transparent, and inspiring leadership has that trickle-down effect throughout the company.

Employees also want to enjoy working with their colleagues, highlighting the value of the social aspects of work – i.e. the ‘watercooler’. And the growth in brand rep can’t be overlooked here.

What can you do?

1. Strengthen company culture

The increased emphasis on company leadership calls for organizations to put more effort into defining and communicating their values, ethos, and work environment clearly.

Building a supportive and inclusive company culture that’s led from the very top can be a powerful attractor and retainer for employees in the UK.

2. Promote transparency and responsiveness

Leadership isn’t just about morale. Companies should strive to be more transparent in their decision-making processes and responsive to individual employee needs.

Regular open forums, Q&A sessions with executive teams, and timely response to employee concerns can help foster a culture of transparency and responsiveness.

3. Encourage collaborative relationships

The data suggests that lateral working relationships are growing in importance. Therefore, encouraging teamwork, collaboration, and social interaction among employees could be key.

This might include team-building activities, collaborative projects, and providing communication tools that facilitate better peer interaction.

The post What’s the UK worker’s ideal habitat? It includes humanity appeared first on Recruiting Resources: How to Recruit and Hire Better.

Cisco exec says the AI hype is legit, but be pragmatic about it

Keith MacKenzie — Wed, 25 Oct 2023 16:09:59 +0000

So, is AI all hype or is it the real thing? Instead of speculating, we get insight from those in the know. In this case, Javed Khan, SVP and GM of Collaboration at Cisco, shared his tips and perspectives on AI in the workplace.

Is the AI hype for real?

First, we asked him what AI in the workplace looks like right now and whether it’s here to stay.

“While it seems overnight that AI became the hot topic – and is just now showing up in workplaces – it’s been around for a while,” Javed says.

And now it’s evolving.

“With advancements in LLMs and their ability to respond in more human ways, we’re seeing so much potential to reimagine work. AI in the workplace is here to stay and will eventually disrupt every profession.

“Moreover, AI will disrupt business operations, requiring business leaders to look at how people will operate, as well as how employees are trained and reskilled to best harness the rise of AI for optimal business outcomes.”

With advancements in LLMs and their ability to respond in more human ways, we’re seeing so much potential to reimagine work. AI in the workplace is here to stay and will eventually disrupt every profession.”

There’s a lot to say for AI’s positive benefits as well.

“We already know AI can scale the pace at which value is created – like building better products or delivering better customer outcomes. Beyond that, it has the ability to make employees better – removing mundane, time-consuming tasks and allowing a focus on activities that drive value. AI gives us the power to think deeper, broader, and more creatively than ever before.”

Workplace adjustments need to be considered right away, Javed adds, to future-proof against any potential problems.

“As the AI landscape continues to evolve, considerations for flexibility, privacy, and security need to be factored in from the get-go.”

What about the AI skeptics?

Naturally, there will be some skepticism and resistance from employees who may either not see the value of AI or consider it to be a threat to their work – including their jobs themselves. There are ways to ‘convert’ them to the value of AI, but this needs to be carried out in the right way and different employee personas need to be considered.

We asked Javed this as well.

“AI must be used ethically – and that can be done by establishing a responsible AI framework to be followed by the organization at large and every individual,” he says – emphasizing the importance of training. “Help employees understand and gain access to the benefits available to them.”

He adds that once employers start showing the benefits that AI can provide in day-to-day work, employees will be more receptive.

“Whether it’s summaries that enable quick, easily digestible information sharing or removing background noise to ensure everyone is heard, once the benefits of AI are apparent – and it’s clear how it makes work better – most employees will embrace AI.”

Hiring managers and recruiters are already using interview question generators and job description generators to enhance their recruitment process – and you can too.

How do we navigate without precedence?

AI is very much uncharted territory for many businesses. When there’s no real playbook to run business processes by, mistakes are bound to happen.

Since businesses don’t have the luxury to take a live-and-learn approach – we asked Javed what he thinks are the biggest mistakes business leaders could make when attempting to leverage AI in their organization.

The first one, Javed says, would be not having clear parameters for using AI or having clarity around its value proposition.

“AI, for the sake of AI, leads to confusion and, worse, potential security issues. Leaders should spend the necessary cycles on diligence before making vendor selections and architectural choices. It is paramount to establish responsible AI practices for its use.”

And don’t force it on employees – that would be a mistake as well. Give employees a choice in the matter, he says.

“There are some roles where AI can help employees be more productive and deliver better work products. But there are also roles where it’s not as critical; just like we give employees a choice over which tools they use, we need to do the same with AI.”

Don’t just buy the hype

It’s been discussed aplenty – when it comes to incorporating AI into regular workflows, it’s important to remember that with great power comes great responsibility. Cisco is already leveraging AI in their Webex portfolio, so Javed knows what he’s talking about.

The common theme throughout Javed’s insights is this: if you’re working AI into your day-to-day business (and you should), take a pragmatic approach. Think about security, data privacy, user buy-in, and other logistical elements of management. Go forward by all means, but go prepared.

The post Cisco exec says the AI hype is legit, but be pragmatic about it appeared first on Recruiting Resources: How to Recruit and Hire Better.

66.7% of US workers love the flexibility of flexible schedules

Keith MacKenzie — Tue, 17 Oct 2023 15:31:27 +0000

What’s happening in the evolving US job market right now? We have data for you on the top benefits of remote work and flexible schedules for workers in a job right now and how that’s changed since 2021.

Top 3 takeaways

Work-life integration is growing as a major benefit of flexwork – up to 52.8% and 66.7% from 39.7% and 55.8% for flexible location and flexible schedules respectively
Saving time and money increasing as a benefit to 45.8% from 33.5%
Productivity another bonus on the rise, to 48.6% from 39.4%

Both the first Great Discontent survey from 2021 and this one in 2023 bring pretty clear insights: workers aren’t only readily adapting to remote work and flexible schedules, but also recognizing the unique advantages that these have over on-location and set schedules.

What we’ve learned now is that, in the two years of experience in these setups between the two surveys, some benefits are rising to the surface and others have sunken to the depths.

The growing benefits of remote work

What remains at the top in terms of benefits associated with remote work is the ability to integrate personal and professional priorities – described to us as “work-life integration” by one-time SmartBug Media CEO Ryan Malone in 2020. In this case, more than half of all US workers (52.8%) in the new survey cited that as a major benefit of remote work – up 13.1 points from 39.7% in 2021.

Another huge benefit is how much time workers get back in the day if they’re working remotely. For one, they don’t have to commute – and that’s also a fast-growing benefit of WFH, with 45.8% of workers calling that a major perk now compared with 33.5% in 2021.

The growing benefits of flexible schedules

Workers are also finding benefits in not being required to adhere to the traditional 9-to-5 (or 7-to-3, or 11-to-7, or what have you) grind. The ability to balance personal and professional priorities again takes center stage for workers with flexible schedules, with 66.7% calling that a major benefit in 2023 compared with 55.8% in 2021.

We know that different people are more productive at different times of the day. Some are night owls, others are early risers, and some are in between. In that mindset, increased work performance is also growing as a benefit of flexible schedules, with 48.6% of workers citing that in 2023, up from 39.4% in 2021.

Overall, it’s simply easier – if someone needs to skip out for a longer lunch or catch a doctor’s appointment, or pick up their kids from school, they’re able to do so and balance out their time commitment by investing a couple extra hours in the evening or earlier in the day.

Overall, these shifts reveal a matured understanding of the advantages of remote and flexible work. Some benefits are becoming clearer over time and with experience. Plus, as workers have become more adept at these arrangements, the benefits have expanded beyond just health and safety considerations to encompass efficiency, flexibility, work-life balance, and financial gains.

Above all, the increased autonomy that comes with flexwork appear to benefit both the employee and the employer (in the resulting productivity) – and that’s worth noting.

What can you do?

1. Emphasize work-life integration policies

With the increased emphasis on the integration of personal and professional priorities, it’s clear that maintaining work-life balance is more important than ever for employees.

Employers need to develop and promote policies that respect and encourage this balance, such as promoting “disconnect time” or offering support for family needs.

2. Reevaluate cost and time-saving measures

The increase in recognition of cost and time-saving benefits indicates the need for companies to consider how they can facilitate these advantages further.

Employers could consider allowances for home-office setup, stipends for utilities, or even “no meeting” days to maximize efficiency.

3. Promote autonomy and flexibility

Given the positive impact of flexible schedules on productivity, it is crucial for employers to promote work autonomy. This could include encouraging employees to work when they feel most productive or allowing flexibility in daily work schedules.

Businesses must continue to evolve their practices and policies to align with these changing preferences and needs of their employees.

The post 66.7% of US workers love the flexibility of flexible schedules appeared first on Recruiting Resources: How to Recruit and Hire Better.

UK workers hate commuting – at least 52% of the time

Keith MacKenzie — Fri, 20 Oct 2023 17:25:57 +0000

Top 3 takeaways

Not needing to commute is growing as a major benefit of remote / hybrid work – up to 52% in 2023 from 41.3% in 2021
Cost benefits grew as a benefit to 47.6% from 35.7%
Productivity another bonus on the rise, to 44.5% from 36.5%

When looking at Workable’s Great Discontent surveys from 2021 and 2023, one conclusion is pretty clear: workers have not only adapted to the remote and flexible work arrangements but also find unique advantages in them.

And over time, some of these advantages have risen to the surface – and sunken to depths – in the two years between the surveys.

Remote saves time and money

What’s resoundingly clear in our new dataset is how remote workers enjoy the benefits gained from not needing to commute more now than before. More than half (52%) cite that as a major benefit of remote / hybrid work in 2023 compared with 41.3% in 2021.

People also say they’re saving money and that’s what they like about working remotely – 47.6% say remote is easier on their pocketbook now, up from 35.7% in 2021.

Flexible time means flexibility

Flexible work schedules also saw significant changes from 2021 – the ability to balance personal and professional priorities grew in importance for workers in 2023, with 64.9% citing that as a top benefit compared with 57.3% previously.

We know that different people can be more productive at different times of the day. Some are night owls, others are early risers, and some are in between. Likely related to this, increased work performance is also growing as a benefit of flexible schedules, with 44.5% of workers picking that in 2023, up from 36.5% in 2021.

What does all this mean? These shifts show that the understanding of the real advantages of remote work and flexible schedules have matured over time.

Plus, as workers have become more adept at these newfangled working arrangements, the benefits have expanded beyond just health and safety considerations to encompass efficiency, flexibility, work-life balance, and financial gains. Instant return is fine, but we now have the opportunity to see what the long-term gains are.

Ultimately, it’s worth noting that the increased autonomy that comes with flexwork appear to benefit both the employee in terms of increased employee experience and the employer in terms of productivity and retention.

What can you do?

1. Emphasize work-life integration policies

With the increased emphasis on the integration of personal and professional priorities, it’s clear that maintaining work-life balance is more important than ever for employees.

Employers need to develop and promote policies that respect and encourage this balance, such as promoting “disconnect time” or offering support for family needs.

2. Reevaluate cost and time-saving measures

The increase in recognition of cost and time-saving benefits indicates the need for companies to consider how they can facilitate these advantages further.

Employers could consider allowances for home-office setup, stipends for utilities, or even “no meeting” days to maximize efficiency.

3. Promote autonomy and flexibility

Businesses must continue to evolve their practices and policies to align with these changing preferences and needs of their employees.

The post UK workers hate commuting – at least 52% of the time appeared first on Recruiting Resources: How to Recruit and Hire Better.

Benefits of specialized recruitment software vs HRIS

Content team — Mon, 27 Aug 2018 10:15:24 +0000

We get this a lot. Why? Workable is a dedicated recruitment system. And some organizations waver between dedicated software and all-in-one platforms that let them manage both recruitment and other HR processes.

At first glance, an all-in-one Human Resources Information System (HRIS) seems to be a convenient choice. But, for organizations that want to take recruitment to the next level, Workable’s specialist approach is exactly the right fit.

Why is all-in-one HR software appealing?

One software, one bill. It’s simple and efficient. Plus, most HRIS are usually cheaper than dedicated recruiting solutions.

So, when you can buy one software for every function in your company at a good price, it seems like you’ve got a pretty good deal. And sometimes, this may indeed be the best choice for your company, depending on size, hiring volume and budget. But often, there are disadvantages that shouldn’t be overlooked.

What are the disadvantages of all-in-one HR software?

HRIS are designed as multi-purpose tools. They’re the Swiss Army Knife of HR software. But it’s the generalist approach that makes them pale in comparison to specialist recruiting tools. Here’s why:

HRIS recruitment solutions are usually under featured

This is mostly a matter of resource availability. A company that builds an HRIS has to allocate development resources to a wide variety of add-on features. This means that this HRIS may be really good at one thing (their main product), but not so good at the rest. As our Account Executive Brooke Weimar explains:

When you’re building an HRIS, features for recruiting will get a fraction of the available resources. Conversely, Workable’s entire development team is focused on improving our recruitment platform – this is what we do, it’s our bread and butter. That’s why our system not only streamlines candidate management, but also has advanced sourcing features and more robust integrations than a typical HRIS.

Are there exceptions to the rule? Of course. Systems like iCIMS and UltiPro do have dedicated solutions with useful features. But those solutions aren’t add-ons to a main product nor are they integrated with each other by default. They’re standalone products sold separately by the same provider. Integrating them would take time and effort, probably as much as it would take to integrate them with an external system. In that sense, those solutions aren’t much different from Workable or other ATS which build integrations from scratch. And because these all-in-one systems are dedicated solutions in disguise, they’re usually very expensive.

HRIS recruitment solutions aren’t optimized for mobile

In today’s digital world, both job seekers and hiring teams need to use their mobile devices for job hunting and hiring respectively. For example, twenty-eight percent of Americans use their smartphone in their job search, and half of them have used their smartphone to fill out a job application. This highlights the importance of having a mobile-optimized app for hiring as well as a mobile-optimized careers page and application form. And that’s something that most HRIS can’t provide. It takes specialist skills and time to create a mobile app for both Android and iOS platforms. When your HRIS covers so many tasks, it’s just not cost-effective to make them all work for mobile too.

The lack of mobile-optimization can result in losing good candidates who may find the application process a hassle. Most job seekers already abandon application forms that are complicated or too long, and this effect will be even more pronounced on mobile where the screen is smaller and people are in a hurry.

And of course, there’s the effect on hiring teams. Our SVP of Sales & Marketing Rachel Bates hired more than twenty new employees for her team using Workable’s mobile app. Had she been using a system that wasn’t designed and optimized for mobile, the process would have been a lot more difficult and frustrating.

Maybe all-in-one systems aren’t perfect, but why should I choose dedicated recruitment software instead?

Dedicated solutions take recruitment to the next level

A dedicated recruitment platform can add structure to your hiring process. This means, your hiring teams won’t have to invent strategies and hiring stages, but they’ll have a rubric to go by from the moment they publish their first job ad.

That’s a huge benefit when it comes to ensuring that hiring managers and team members are engaged throughout the hiring process:

HRIS provide a way for you to manage your recruiting process, but that’s as far as it gets, says Brooke Weimar. If your hiring teams aren’t engaged, an HRIS recruitment solution doesn’t have the power to change that. You’re better off with a dedicated system that understands this, and gives direction in an easy way. Something that’s easy to use (not clunky), that supports your hiring teams and lets them do their recruiting effectively and on the go.

For example, many of the features Workable has developed for these purposes aren’t found in most all-in-one solutions. Examples of those features are:

Finding and attracting candidates:

Candidate sourcing
Referral programs
Social Recruitment
Career page hosting

Assessing candidates:

Pre-screening questions & application forms
Interview scheduling & management
Candidate scorecards and evaluations

Hiring candidates:

Offer letters with a built-in approval process & e-signatures
Candidate background checks

Managing the recruiting process:

Customized hiring pipelines
Access rights and user permissions
Candidate source tracking
EEOC Compliance
Robust external integrations

All these features are usually developed in a dedicated recruitment system, and as companies see their hiring needs rising, they will need to use some or all of these at some point.

Dedicated solutions keep expanding their functionality, fast

Recruitment software companies have the dedicated resources to implement lots of new product features throughout the year. The same goes for integrations; for example, Workable’s integrations include video interviewing platforms, background check providers and assessment software, and the list is growing all the time. And of course, we also integrate with more than one HRIS.

So the final choice isn’t ‘either ATS or HRIS’ because a good ATS works hand-in-hand with other software. Use specialist tools to get the job done more effectively. We do this ourselves as a company— use our own product for recruiting and an external HRIS for our HR needs. Brooke often mentions this to the people she’s talking to:

Workable as a company is our inside example of how an all-in-one system can coexist with recruiting software. Our HRIS is an excellent solution and we love it. We use our own robust ATS for recruiting, and the two systems integrate seamlessly. We get the best of both worlds.

Why Workable?

So, a dedicated recruiting solution should play well with a dedicated HR system. But what differentiates Workable from other recruitment software? Rachel Bates has a very straightforward answer:

Our platform’s ease of use and built-in sourcing capability is why people choose Workable. That, and of course, our stellar global support team. They’re available 24-7, no matter where you are in the world.

It’s impossible to reach your business goals without the right people in your organization. We know ourselves how important recruiting is. Our software—our entire team—are focused on making sure you hire effectively.

The post Benefits of specialized recruitment software vs HRIS appeared first on Recruiting Resources: How to Recruit and Hire Better.

Don’t rock the boat: stable and secure is the way to float

Keith MacKenzie — Tue, 03 Oct 2023 12:30:28 +0000

What’s happening in the evolving US job market right now? We have data for you on what’s most important to workers in a job right now and how that’s changed since 2021.

Top 3 takeaways

Job security is more important now, up to 38.6% from 32.1% two years ago
Career advancement is growing as a job attractor from 15.8% to 22%
Compensation is still the top consideration for a job across all scenarios

Job security is always important, of course – people need to put food on the table and to pay their bills, so they’re reliant on that employer-employee arrangement where they provide their services in exchange for compensation. It’s the basic structure of labor.

Naturally, it would follow that one side of that equation would have leverage over the other. One may have a luxury of choice that the other may not have. In the last few years, we saw employees exercise their leverage by pushing for higher salaries, more flexible working arrangements, and better working conditions.

But now, things have shifted again. Job security is growing in importance for US workers when evaluating the value of a new job. In 2021, 32.1% considered job security as a significant factor in what they’d find attractive about a new opportunity – and this climbed to 38.6% in 2023.

This suggests a desire for stability and predictability among workers who are rattled by the weird chaos of the post-pandemic economy. Workers now want to be able to count on a reliable income stream for the foreseeable future.

The percentage of workers looking to move to another job overall is also dropping. Why fix what ain’t broke, right? When workers would rather stick with something they already have rather than go into the wild blue yonder looking for new roles, that suggests they’re valuing stability over opportunity. It’s another effect of the uncertain times we’re living in right now.

What else is growing in importance for workers who are looking for new opportunities? Career advancement. In 2021, 15.8% of workers in the US considered this a major factor in changing jobs – that’s since climbed to 22%.

But it’s still mostly about the money

Money still talks. No matter how you look at it, compensation in the form of salary, perks, and benefits is still the top priority for all workers regardless of the situation they’re in – whether they’re looking, whether they’re staying in their current job, or anything else.

Comp is also growing in terms of attractiveness when potential candidates are being wooed to a new job – from 62.2% in 2021 to 68.9% now.

Interestingly, we asked active jobseekers why they’re looking for a new opportunity, and we found that compensation dropped in terms of importance from 63.4% in 2021 to 58.5% now. What’s growing in importance for those who decide to start looking for a new job are, yes, career advancement opportunities and meaningfulness of work (25% now compared with 20.8% two years ago).

Job security in itself is valued hugely – that much is clear. And compensation is part of that security – when a worker gets paid more, that’s security in the form of personal finance.

Even a focus on career advancement can be indirectly related to workers’ desire for greater security – people don’t want to be just mercenaries brought in to do a specific job with an end date to that job. They want to flourish, grow, and evolve in their existing role. They want to be invested for the long haul.

Today’s workers are looking beyond the financial aspects of a job, seeking roles that offer intrinsic satisfaction. Plus security and stability, too.

What can you do?

1. Promote job security

As job security grows in importance, employers should communicate the stability of their organization and roles during the recruitment process.

You can demonstrate this by showcasing a strong company history, financial stability, and a reliable pipeline of future projects. Your careers page is a great opportunity to show off all this stuff about you.

2. Highlight growth opportunities

With career advancement becoming more important to workers, employers should highlight opportunities for career growth in their organizations.

This can be communicated by promoting examples of career progression within the company, mentoring programs, and opportunities for ongoing professional development. Again, put this in your careers page in the form of employee testimonials and workplace videos.

3. Keep your salaries competitive

Despite the growth in importance of job security and career advancement, compensation remains key. Ensure ensure your compensation packages remain competitive, encompassing not just salary but also benefits and perks.

This can demonstrate your commitment to rewarding and retaining your employees – leading to a happier and more productive workforce in the end.

The post Don’t rock the boat: stable and secure is the way to float appeared first on Recruiting Resources: How to Recruit and Hire Better.

Flexwork in the UK: It’s staying this time – maybe

Keith MacKenzie — Fri, 13 Oct 2023 13:17:35 +0000

What’s important in the minds of UK workers? We have data for you on flexwork in its different forms, and how that’s changed since 2021.

What do UK workers want now?

Our Great Discontent 2.0 survey report contains a wealth of data revealing how employee priorities in the UK have changed since 2021. Learn more here.

View the report highlights

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Top 3 takeaways

Those working fully remote dropped from 55.2% to 40.9% – but most have been doing it for years now
Flexible schedules remains steady – and those working on flexible times have increasingly been doing so for years
More employers than before have made overall flexwork a permanent feature

Remote work, once a novelty, became a necessity with the onset of the pandemic. That much is clear, and it was even predicted at the onset of the pandemic. In our New World of Work survey in August 2020, 71.1% said remote work and distributed teams would be a major paradigm shift moving forward.

And then it became a standard for a little while – until now. In our new survey report on the Great Discontent in 2023, recent data shows a decline in remote work among UK-based workers. In short: the percentage of respondents working remotely is down 14.3 points in a two-year span, from 55.2% in 2021 to 40.9% in 2023.

Does that mean remote work is going the way of the dinosaurs? Hardly. The prediction from 2020 is still absolutely spot on.

We see this when asking workers how long they’ve been working remotely – 29.6% of remote workers have been doing so for more than two years, up a full 20.6 percentage points from 9% in 2021.

This just means that those working remotely are increasingly doing so for long periods of time.

On the flip side: the percentage of workers who say they’ve only been working remotely for less than two years has gone down from 91% in 2021 to 70.4% now.

Flexible schedules

Meanwhile, the percentage of those working on flexible schedules is largely unchanged, from 55.2% in 2021 to 55.7% in 2023.

And when asked how long they’d been in that setup, the percentage of those saying they have been working in flexible schedules for more than two years is also largely unchanged in the UK – and is drastically different from the US where 46.5% of flexible workers had been doing so for more than two years now compared with just 21.9% in 2021.

Regardless of the above, there remains a long-term focus on overall flexibility in working time and location in employer management strategy, as 35.6% of employees say their employer has always had remote / hybrid work with an additional 23.7% saying it was introduced during the pandemic and is now a permanent strategy.

Meanwhile, 50.4% of employees say their employer has always allowed flexible schedules, with an additional 10.2% saying they introduced it during the pandemic and it’s now permanent.

It’s always interesting to look at the interesting parts: in this case, 29.7% say their employer introduced remote work during the pandemic and will likely return to on-location work. And 27% say the same for flexible schedules. Those are not insignificant numbers – they suggest many companies are pushing for return-to-office and set schedules.

What can you do?

1. Embrace flexibility

The steady demand for remote and flexible work options indicates that these aren’t passing fads, but fixtures of the modern workplace. Even as some employees return to the office (or attempt to), it’s crucial for employers to maintain flexible work policies.

This flexibility could be a deciding factor for talent considering whether to join or remain with your organization.

2. Communicate clearly

Employers who introduced remote or flexible work options during the pandemic need to communicate their plans clearly.

If the changes are permanent, let employees know. If not, it’s equally essential to inform employees about any transitions back to on-site work, providing sufficient notice and support for the change.

3. Re-evaluate and update policies

The landscape of work has changed significantly over the last couple of years. Now might be a good time for employers to re-evaluate and update their policies around remote work and flexible schedules.

Consider factors like productivity, employee well-being, and company culture when making these decisions, and ensure the updated policies are in the best interest of both the company and its employees.

The post Flexwork in the UK: It’s staying this time – maybe appeared first on Recruiting Resources: How to Recruit and Hire Better.

Is flexwork normal or a fad? In the US, that depends

Keith MacKenzie — Mon, 09 Oct 2023 13:03:02 +0000

What’s happening in the evolving US job market right now? We have data for you on flexwork in its different forms, and how that’s changed since 2021.

Top 3 takeaways

Those working fully remote dropped from 58% to 41% – but most have been doing it for years now
Flexible schedules remains steady – and those working on flexible times have increasingly been doing so for years
More employers than before have made overall flexwork a permanent feature

At one time during the onset of the pandemic, remote work and distributed teams were necessitated for pure business survival and continuity, and was predicted by 71.1% of respondents in our New World of Work survey in August 2020 to be a major paradigm shift going forward.

But now? It’s declining for US-based workers. The percentage of respondents working remotely is at 41% now, down 17 points from 58% in 2021.

Here’s where it gets interesting: the prediction of a paradigm shift from 2020 onwards is absolutely spot on. We can see this in how long workers have been working remotely – 46.1% of remote workers have been doing so for more than two years, up from just 13.2% in 2021. That’s a long time to be working remotely, so it could be safe to say that it’s becoming standard for many.

Flexible schedules are a little different. The percentage of those working on flexible schedules hasn’t changed from 2021 to 2023 – both surveys found that exactly 57.9% are working on flexible schedules.

Again, like remote work, flexible schedules are becoming more standardized, with 46.5% saying they’ve been working on a flexible schedule for more than two years in 2023 – more than double that of 2021, when 21.9% said the same.

That long-term focus on overall flexibility in working time and location is also evident in employer management strategy. According to the new survey, 36.2% say their employer has always allowed remote / hybrid work and an additional 24% say their employer introduced it during the pandemic and has since made it a permanent fixture of work.

And 50.8% of workers saying their employer always allowed flexible schedules.

What about the whole return-to-office (RTO) discussion? A full quarter (26%) say their employer introduced remote work during the pandemic and will likely return to on-location work, and 23.2% say the same for flexible schedules.

Those are not small numbers – many companies are indeed pushing for return-to-office and set schedules. And if you’re watching the news, it’s a reality for many workers whether they like it or not.

What can you do?

1. Embrace flexibility

The steady demand for remote and flexible work options indicates that these aren’t passing fads, but fixtures of the modern workplace.

Even as some employees return to the office, it’s crucial for employers to maintain flexible work policies. This flexibility could be a deciding factor for talent considering whether to join or remain with your organization.

2. Communicate clearly

Employers who introduced remote or flexible work options during the pandemic need to communicate their plans clearly. If the changes are permanent, let employees know.

If not, it’s equally essential to inform employees about any transitions back to on-site work, providing sufficient notice and support for the change.

3. Re-evaluate and update policies

The post Is flexwork normal or a fad? In the US, that depends appeared first on Recruiting Resources: How to Recruit and Hire Better.

Leading during difficult times: 4 real-world tips from employers

Keith MacKenzie — Fri, 13 Oct 2023 16:43:19 +0000

The ongoing events in Israel and in the Gaza Strip have dominated headlines lately. And the resulting strong opinions and worries for loved ones make for a very tense environment – including in the workplace.

We asked employers what they were doing to support their workers during these tense times, and we have four takeaways.

1. Support their mental health

Mental health has been growing as a focal area for many employers in recent years – and it’s no different right now. Min Hwan Ahn, a lawyer and owner of the Philadelphia-based Law Office of Ahn & Sinowitz, says he’s brought in additional psychological support resources for his 250-odd employees and their families.

“We’ve brought in therapists for group sessions and availed one-on-one therapy sessions for individuals that may need them,” he says.

Derrick Hathaway, sales director at VEM Medical, a provider of high-quality medical mold tooling and cleanroom injection molding with locations around the world, says his company offers a comprehensive employee assistance program (EAP).

“[It] provides problem identification, counseling, and referral services for employees and their covered dependents.” Derrick says.

“This program is free, voluntary, and confidential, addressing a broad range of personal and work-related issues affecting mental and emotional well-being.”

2. Open up the channels

Communication is also key. The magnitude of events is such that it can’t really be ignored, and many employers are aware of this.

The challenge is to open up those channels of communication to preempt any fallout that could come from a conflict of opinion between colleagues.

Min in Philadelphia looks to pre-empt this potential situation with company-wide ‘listening sessions’.

“The idea behind these is not to attempt to discuss or analyze the ongoing events or viewpoints,” he says, “but rather to provide a safe space where those affected can express what they are feeling.”

But this doesn’t mean avoiding the topic altogether.

“We don’t shy away from difficult conversations,” Min adds. “We are promoting open dialogue, but we are stringent on enforcing discriminatory behavior or offensive comments not being tolerated.

“This, combined with promoting a respectful approach to discourse, has been an effective strategy for managing differences between employees.”

Melissa Terry, Digital Marketing Manager at VEM Tooling – part of the VEM Group that also includes VEM Medical – highlights this importance as well.

“Open and respectful communication is key in managing differences between employees,” Melissa emphasizes. “We encourage constructive dialogue and understanding of diverse viewpoints while maintaining a strict policy against discrimination or harassment.”

“Open and respectful communication is key in managing differences between employees.”

Meanwhile, Michael Coleek-Johnson, CEO and Co-founder of Embedwitz, a Los Angeles-based website that shares research on embedded platforms, says his recently created communication platform doubles as a space for open dialogue.

“Our staff can speak their mind, express their opinions and concerns. This has helped us manage differences in perspectives constructively and ensure that everyone feels heard and valued.”

Not every employer, however, believes that open discussion in the workplace is the way to go. Nathan Clark, co-founder of the AI solutions company Gate2AI in California, would rather see these conversations take place outside of work.

“We’ve actively discouraged any discussions or debates related to the ongoing events within the workplace to maintain a harmonious and focused environment,” Nathan stresses.

3. Allow for flexibility

Nathan, however, isn’t staying out of it altogether. He’s well aware that his employees will have unique needs as a result of the ongoing situation.

“We’ve implemented a flexible work schedule to accommodate any employees who may need extra time due to personal or family situations arising from these events,” he says.

“This flexibility includes providing paid time off for those directly affected by the situation, allowing them to focus on their families and safety.”

4. Be kind and empathetic

Supporting your employees does not necessarily have to be part of formal company policy – expressions of kindness and empathy can go a long, long way.

CEO Peter Michaels of Yeespy, a parental monitoring solutions company based out of New York, says he’s learned “tough lessons” from what’s happening in Israel in regards to how to be a leader for his employees.

“Now, I have started devoting ample time to my employees’ well-being,” Peter says. “I have started focusing more on providing them with more benefits so that they stay satisfied with the company.

“We provide competitive pay packages, high-quality healthcare options, and employee perks. Our employees and the people they care about must feel supported by the company. This is very important in terms of maintaining one’s health and well-being.”

Meanwhile, Michael relates his company’s previous experience in supporting employees directly affected by the Russian invasion of Ukraine.

“We had a staff whose daughter schooled in Ukraine at the time,” Michael explains. “To imagine a mother in that situation is not quite healthy. We rallied around her and gave her all the warmth and love we harbored.

“Today, both mother and daughter are doing great. The calls, the messages we sent did go a long way, and we were happy we did it together as a team.”

Support can go a long way

Michael is optimistic that actively leading employees through tense times can have a positive effect in the long run.

“We can get people back on track from being discouraged, weak in spirit to being full of life, cheerful and positive when we communicate with them.”

The post Leading during difficult times: 4 real-world tips from employers appeared first on Recruiting Resources: How to Recruit and Hire Better.

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