PeopleScout Jobs Report Analysis – September 2023

U.S. employers added 336,000 jobs in September. This is nearly double the job growth that analysts expected and shows that employers still have a high demand for labor. The unemployment rate remained at 3.8%. Year-over-year wage growth fell slightly to 4.2%.

u.s. jobs report september 2023 infographic

The Numbers

336,000: Employers added 336,000 jobs in September

3.8%: The unemployment rate remained steady at 3.8%.

4.2%: Wages grew 4.2% over the past year.

The Good

The best news in September’s jobs report is that the jobs added were spread across industries, according to the Wall Street Journal. Leisure and hospitality led with 96,000 new jobs as bars and restaurants finally reached pre-pandemic staffing levels. Education and health services also added a significant 70,000 new jobs, and all major jobs categories experienced growth. The report shows that hiring is not slowing, despite high interest rates and wage growth, the restarting of student loan payments and low unemployment.

The Bad

The factors that make September’s report strong are the same ones that have analysts worried. In previous months, reports have suggested the Federal Reserve’s plan to slow hiring by raising interest rates was starting to work. The latest report tells an entirely different story. As the New York Times reports, Wall Street was wary of the blockbuster report because of the influence it could have on the Fed.

The Unknown

The latest report paints a more complicated picture for the Federal Reserve as they head into their next meeting. According to MarketWatch, this is the last report the Fed will see before that meeting, and it increases the likelihood that they will decide to raise rates again this year. The Fed has two more meeting scheduled in 2023—one on October 31 to November 1 and another December 12-13. Officials say they’re increasingly convinced that the U.S. can avoid the mass layoffs and high unemployment that typically go along with high interest rates.

3 Strategies for Solving Hospitality Recruitment Challenges with Technology

Amongst travel and hospitality recruitment challenges is a clear and persistent issue: staffing shortages. Talent leaders are struggling to fill empty roles amid low unemployment rates.

According to a 2023 survey by Deloitte, more than half of hotel executives (53%) say their properties have between 25–74% of the workforce they had in 2019. The situation at airports is even tighter with 62% of executives saying their workforce is half its prepandemic size or smaller.

On top of this, the unemployment rate sits at 3.8% in the U.S., 4.3% in the UK and 3.7% in Australia. The travel industry also saw a massive exodus of workers. In 2022, the U.S. Bureau of Labor Statistics reported record quit rates during the Great Resignation, with the quit rate in leisure and hospitality jumping by a percentage point to 6.4%. So, how can talent leaders hire hospitality and travel workers when the available pool is smaller?

Luckily, the right technology solutions deployed at the right times during the recruitment process can help talent leaders source, attract and screen candidates to find the best talent more efficiently and effectively. In this article, we’ll cover three technology interventions that talent acquisition teams can put into place to tackle hospitality recruitment challenges.

Hospitality Recruitment Challenge No. 1: Our open positions receive few applicants, and many of those who do apply do not have the background or experience needed to succeed in the role.

Solution No. 1: Invest in artificial intelligence sourcing technology to fill the top of your funnel.

Amongst common hospitality recruitment challenges that we see is finding talent with a wide variety of specialized skills across diverse and distant geographies. There is no one-size-fits all approach to hiring travel and hospitality talent. Finding a chef for a luxury property in Lake Como, Italy will look very different from a search for housekeeping staff at a family resort in Orlando, Florida. Finding a flight attendant looks very different from filling a baggage handler role.

With such a tight talent market, employers must target passive talent. During the Great Rehire talent leaders focused on filling roles as quickly as possible, but now they need to focus on finding and hiring more experienced workers.

An AI-enabled candidate sourcing tool can identify passive candidates with the right experience for specific roles and can even identify which candidates would be most likely to leave their current employers. Within seconds, recruiters can build a list of these candidates and share the opportunity. PeopleScout’s total talent suite, Affinix®, includes the AI sourcing feature, Talent Finder, which can connect employers with millions of passive candidates.

Consider the following best practices for using an AI sourcing tool:

  • Before searching for candidates, make sure you have a thorough understanding of the technical and soft skills needed to be successful in the role.
  • Use features, like PeopleScout’s Diversity Boost, that can identify candidates from underrepresented backgrounds to help meet your DE&I goals.
  • Blend AI with the human touch. By having a recruiter reach out to a sourced candidate with a personalized message, employers can create a positive experience.
  • Make sure a human makes all final hiring decisions. AI can make the process more efficient, but hiring managers should make the final call.

Hospitality Recruitment Challenge No. 2: Candidates drop out of our process before reaching the offer stage, either by abandoning the application or ghosting the interview.

Solution No. 2: Improve the candidate experience by making the process quick and easy by embracing tools like SMS or virtual interviews.

Hospitality employers must ensure that their candidate experience sets them apart from other employers at every stage of the candidate journey. For candidates, how they’re treated during the hiring process is a preview of what their experience will be as an employee.

PeopleScout research shows that the hospitality industry has a lot of room for improvement in this area. In our analysis of the candidate experience of more than 215 different organizations, the hospitality sector came in last overall with the lowest average scores in every stage except Follow-Up (in which it was second to last). While hospitality organizations effectively showcased their diversity and inclusion efforts on their career sites, only half gave candidates the opportunity to register their interest.

Your candidate experience should be unique to your brand and help you distinguish yourself from other employers hiring for similar roles or skills. Many talent acquisition teams don’t appreciate that candidates don’t perceive the recruitment process as a funnel. They’re the main character in their own story, and they expect to be treated that way. Candidates want to engage in their job search on their own terms. So, anytime they encounter a roadblock to getting the information they want, especially if they don’t know what to expect in the next stage, they’re more likely to drop out of your process.

There are several ways to leverage  technology to make the process easier for candidates. First, start with a shortened application. According to PeopleScout research, nearly 40% of organizations asked candidates to duplicate information that was already contained in their resume or CV. Make sure your application only collects the information that is most critical for determining who moves along to the next step of the process.

From there, other technology solutions can be used to gather the additional information necessary to make a hiring decision. SMS can be used for an initial text screening, and virtual interviews, like those available in Affinix, allow candidates to answer additional questions at their own pace while feeling as though they’re driving the process.

Finally, automated communication can keep a candidate engaged in the process. The right technology platform can help by sending automated messages to candidates, via email or chatbot technology, updating them on their application status. You can even craft messages letting a candidate know if they did not get the job, so they aren’t left wondering if you ghosted them.

Consider the following best practices for using technology to improve your candidate experience:

  • Make sure your application is mobile-friendly and can be filled out in 10 minutes or less. Test your current application to see how long it takes to apply.
  • Provide candidates with the opportunity to opt-in to receive text messages or emails from your organization to remain in compliance with local spam laws.
  • Tailor the type of virtual interview to the type of role. While video interviews may be appropriate for customer-facing roles, others may prefer the opportunity to answer questions with recorded audio.
  • Make it simple for candidates to understand where they are in your process; this can be something as simple as a progress bar.

Hospitality Recruitment Challenge No. 3: Our assessment process isn’t effective at identifying the candidates most likely to succeed in the role, leading to increased turnover, reduced productivity and disengaged employees.

Solution No. 3: Assess candidates for passion, purpose and mindset.

The travel and hospitality industry is all about guest experience, and hotels, airlines, restaurants and theme parks differentiate themselves with the unique experience that they provide. So, talent leaders need to find candidates who not only have the right skills and experience but also a deep understanding of the brand and how it is reflected in the service provided.

For example, in a major city, you may find three hotels on the same street, one catering to a high-end luxury experience in a historic building, another geared toward young travelers with bold art and hit music playing in the lobby, and a third designed with business travelers in mind—with a large business center, meeting rooms and plenty of quiet spaces for someone to plug in their laptop. Many hotel brands even have this variety of styles within their own portfolios. The service provided in each hotel looks different, and a person who excels at a luxury property may not thrive in a trendy hotel.

By selecting the right assessment tool, employers can go beyond looking at just capability, behavior and results but also determine whether candidates align with their organization’s purpose, have passion for the work they would do and whether they have the mindset to adapt to new environments.

By building an assessment during pre-screening that accounts for passion, purpose and mindset in addition to the standard skills and experience, employers can use technology to shortlist candidates based on several different attributes at the same time. This way, employers can get a clear picture of the different strengths and weaknesses of candidates in order to make informed decisions about which candidates are best to bring forward to the interview stage.

By identifying candidates who match well with an employer’s brand of guest experience, talent leaders can reduce turnover and build a happier, more engaged team. In turn, that leads to better customer experience and a better bottom line.

Consider the following best practices for building an effective assessment for hospitality talent:

  • Identify the essential behaviors for the role to separate those who will actually be successful from those who simply present well during an interview.
  • Build assessment tools around your organization’s vision and values so applicants have a chance to form a connection to them from the start.
  • Self-evaluation tools can also be used to help applicants consider their own strengths and whether the role will offer sufficient opportunity to use and demonstrate them.
  • Distinguish between good candidates who meet the criteria and great candidates who will take an organization further.

Finding the Right Talent Technology for Hospitality

The travel and hospitality industry still faces an uphill climb in returning to or even exceeding their prepandemic staffing levels, but talent leaders have additional and improved tools available to help identify, attract and screen candidates. However, in a full marketplace, finding the right tools can be a challenge. Consider partnering with an RPO with expertise in technology that can help identify the most impactful ways new tools can solve your most pressing hospitality recruitment challenges.

Get more strategies for attracting and hiring hospitality, travel and tourism talent, with our Recruitment Handbook for Travel and Hospitality.

Debunking RPO Myths: How Savvy Talent Leaders Separate Fact from Fiction

In the ever-evolving landscape of talent acquisition, recruitment process outsourcing (RPO) has emerged as a go-to solution to help organizations redefine their recruitment strategies. However, many employers shy away from engaging an RPO provider because of common misperceptions. If you’re a talent acquisition leader stepping into the world of RPO for the first time, get ready to separate fact from fiction as we dismantle RPO myths. 

Myth 1: Outsourcing Means Losing Control Over the Hiring Process. 

Let’s set the record straight from the get-go: RPO doesn’t mean relinquishing control. You’re not sending your recruitment program into a mysterious void.  

In fact, reputable RPO providers thrive on collaboration. You maintain oversight, make strategic decisions and keep your finger on the pulse of the recruitment process. Your RPO partner should provide you with regular reports so you can track metrics and SLAs against your hiring goals.    

It’s like having a co-pilot who respects your position in the driver’s seat.  

Myth 2: RPO is Expensive. 

There’s a notion that RPO will drain your coffers faster than you can say “ROI.”  

With an ever-widening skills gap and climbing hiring costs, organizations are looking for recruitment solutions to reduce overhead and improve outcomes while reducing risk. By streamlining your hiring process, reducing time-to-fill and minimizing administrative burdens, RPO creates substantial value, particularly for high-volume or hard-to-fill specialty roles. While RPO may not be the cheapest option, a good RPO, and the technology they bring to the table, improves efficiency and delivers results.  

Think of it as an investment that not only bolsters your team but also your bottom line.  

Myth 3: RPO Only Works for Large Companies. 

You might be thinking, “RPO? That’s only for the large enterprises with deep pockets.”  

Not so fast! RPO isn’t an exclusive club for corporate giants. It’s an adaptable strategy for businesses of all sizes. Whether you’re a startup looking to scale or a mid-sized enterprise seeking an edge, RPO can be tailored to fit your unique needs.  

In fact, according to Everest Group, smaller organizations made up 43% of RPO of news deals in 2022, up from 23% in 2017, as they increasingly turn to RPO to help scale and reduce risk in an uncertain labor market. RPO helps these mid-sized and small organizations scale up their hiring efforts without the costly commitment of building talent acquisition teams in-house.  

Myth 4: RPO Takes a Long Time to Implement. 

With the economy see-sawing post-pandemic, we’ve seen our clients shift their focus to agility and speed with an increase in urgent hiring projects. Organizations often think that RPO is not a viable option in these situations due to the misperception that it takes 12 to 16 weeks to ramp up.  

While an RPO engagement can certainly be a long-term strategic partnership, there are also solutions for short-term recruitment projects where speed is the priority. For example, we developed PeopleScout Accelerate, a tech-powered, ready-to-go recruitment process outsourcing (RPO) solution that combines PeopleScout’s deep recruitment expertise and a pre-configured Affinix® talent acquisition technology suite—implemented in just two weeks.  

Myth 5: RPO is Only for Filling Volume-Based Positions. 

Your talent needs are unique to your organization and the right RPO partner will know that a one-size-fits-approach isn’t effective. Don’t let the myth of “volume hiring only” keep you from experiencing the benefits of RPO. 

While RPO is an ideal solution for high-volume hiring in which many hires for similar job families are made annually, it’s also perfect for hard-to-fill specialist professional roles. With their networks, resources and expertise, RPOs have the ability to attract candidates from all corners of your industry. 

One huge bonus of the long-term relationship you build with an RPO partner is their ability to create talent pools. Having a pool of active and passive candidates speeds up time-to-hire by giving you fast access to qualified candidates when a new vacancy opens. Plus, RPO providers have access to leading technology featuring AI matching tools that can identify and source strong passive and active candidates within seconds of an open job requisition. 

Myth 6: RPO is Exclusively Cost-Cutting, Not Quality-Improving. 

Quality over quantity, right? Absolutely. And guess what? RPO providers are on the same page.  

Unlike working with a staffing agency, which is often a transactional relationship, an RPO partner won’t flood your inbox with résumés that miss the mark. Instead, they use targeted strategies to find the ideal candidate who aligns with your values and vision.  

RPO providers can help you develop and implement effective selection and assessment processes to identify high-performing candidates with the right skills and experience for the role. Plus, with their tech know-how, RPOs can help you leverage predictive analytics to gain a better understanding of the behaviors of top talent and predict factors such as cultural fit, willingness to change companies and future tenure potential. 

With RPO, quality isn’t compromised—it’s elevated.  

Myth 7: RPO is a One-Size-Fits-All Solution. 

While some providers have gained reputations for making their clients follow a rigid process, it doesn’t have to be this way. 

Good RPO partners are chameleons, adjusting their approach to your shifting hiring needs. Whether you’re gearing up for a hiring spree or scaling down temporarily, your RPO provider should deliver custom solutions based on your industry, job types, hiring budget and goals. 

And remember, you don’t have to outsource your entire full-cycle, end-to-end recruitment process. Look for an RPO partner that offers partial-cycle, project-based and even modular RPO solutions to help you scale your recruitment function to meet your needs—from talent mapping and sourcing to designing assessments and onboarding. In the fast-paced world of talent acquisition, flexibility is your secret weapon. An RPO partner should provide you with the agility you need to weather the ups and downs of the economy. 

Myth 8: RPO Providers Only Cover Recruitment. 

While RPO is focused on improving recruitment processes, it can also include other HR functions such as employer branding, talent management and workforce planning. RPO providers can offer a range of services that can be customized to meet the specific needs of the organization. 

RPO partners are increasingly offering a range of value-added services to meet the demand for proactive, innovative candidate experiences. When you partner with a leading RPO provider, you also access: 

  • Talent acquisition consulting and best practices 
  • Technology consulting and implementation 
  • Passive candidate engagement 
  • Market insights, talent mapping and analytics 
  • Recruitment marketing and candidate attraction strategies 
  • Employer branding and employer value proposition (EVP) development 
  • Assessment design and execution 
  • Diversity, equity and inclusion consulting 

When considering potential RPO providers, make sure they can provide you with value-added services that will optimize and streamline each phase of the recruiting process. 

Myth 9: RPO Replaces Your Internal HR Expertise. 

Your internal talent acquisition expertise is invaluable—and it’s here to stay. RPO isn’t about replacing your team; it’s about augmenting their strengths.  

Organizations often struggle to invest in growing the number of talent acquisition and HR resources required to keep up with the rate of change. RPO providers take on time-consuming, but necessary, recruiting activities such as sourcing and candidate engagement. This frees up internal HR staff to focus on higher value activities.  

Plus, through working across many clients and industries, RPOs have their finger on the pulse of what’s going on the labor market and can share best practices and insights to help you make informed workforce decisions.  

Consider your RPO team your ally, enhancing your internal capabilities and helping you and your team shine even brighter.  

Myth 10: RPOs Don’t Care About Your Company Culture. 

Your company culture is your crown jewel, and you’re not about to let it fade away in the name of outsourcing. Fear not! Reputable RPO providers understand the value of cultural fit.  

Your RPO team integrates your values, purpose and employer brand into every candidate touchpoint. An RPO provider can help you amplify your employer brand by leveraging your established candidate attraction assets in targeted recruitment marketing campaigns. Utilizing job postings, social media posts, your career site and email campaigns, your RPO provider will carry your carefully crafted employer brand to candidates, providing them with compelling reason apply to your open positions.  

It’s like having a partner who not only respects your company culture but actively works to preserve and enhance it. 

If your organization is looking to develop an employer brand from scratch or update your current one, a leading RPO partner can provide you with employer branding services to complement your recruitment strategy ranging from creative support to full-scale employer value propositions (EVP) development. 

From debunking misconceptions to revealing the true essence of RPO, you’ve now navigated through the labyrinth of misperceptions to arrive at the threshold of transformation. With RPO, you’re not just recruiting—you’re building a workforce that will grow your business for years to come. So, it’s time to shatter RPO myths and embrace the potential of of this powerhouse solution. 

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The Synergy of Workforce Planning and HR Analytics

Strategic HR management has become a crucial aspect of organizational success. Hence, HR analytics and workforce planning have significantly influenced the rapidly evolving recruitment industry in the past few years. These approaches provide insights and tools that help organizations optimize workforce solutions, shape decision-making processes and drive the overall growth of the business.

This article delves into the complexity of HR analytics and workforce planning, the benefits and risks as well as real-world workforce planning examples and HR analytics applications.

What are Workforce Planning and HR Analytics?

Workforce planning is a methodical process that organizations implement to ensure they have the right mix of talent with the appropriate skills to meet current and future business objectives. It involves forecasting future workforce needs, identifying gaps in skills and competencies, as well as designing strategies to address those gaps. Workforce planning aims to align the company’s strategic goals with its human resources.

On the other hand, HR analytics involves the use of data analytics to provide organizational leaders with actionable insights on recruitment, performance management, employee engagement and more. It helps organizations to gain a deeper understanding of workforce dynamics, identify trends and predict future outcomes. Leveraging HR analytics tools can aid Human Resource professionals in developing better, well-informed strategies that boost the overall employee experience and contribute to the company’s future success.

Although workforce planning and HR analytics share a common goal of enhancing human resources management, these approaches provide varying degrees of information.

Workforce planning tends to focus on the macro-level view, addressing questions like:

  • What are the hiring needs for the upcoming quarter?
  • What kind of skills will be crucial in overcoming current growth challenges?
  • Are there skills gaps in our teams?

On the contrary, HR analytics delves into micro-level insights:

  • Are there specific patterns in employee engagement and productivity?
  • What are the factors causing high turnover in a particular department?
  • What is the most common reason for high performers to resign?

Whilst workforce planning takes a more strategic approach, HR analytics contextualizes information to support data-driven decision-making. Leveraging workforce planning and HR analytics together helps promote engaged and productive teams.

Benefits of HR Analytics and Workforce Planning

Whilst the benefits of taking a data-forward approach to talent strategy are numerous, here are the top three benefits:

Improved Resource Allocation

Workforce planning aids in allocating resources effectively by ensuring the right people are in the right roles at the right time. HR analytics enhances this process by providing insights into individual and team performance.

Strategic Decision-Making

Workforce planning supports long-term goals, while HR analytics facilitates swift decision-making for immediate concerns.

Proactive Problem Solving

Workforce planning identifies potential gaps and challenges in advance, allowing organizations to take action before issues become critical. HR analytics offers the ability to identify and address emerging employee-related problems promptly.

Real-World Application of Workforce Planning

A financial services organization engaged PeopleScout and our Talent Mapping solution to unlock their talent segments and provide enhanced workforce planning data that would help streamline the client’s global contact centers into multilingual hubs. Within two weeks, PeopleScout delivered comprehensive insights into:

  • Size and language skills of the customer service workforce in several countries
  • Additional salary expectations for specific language abilities
  • Age, gender, diversity data to aid DE&I efforts
  • Candidate preferences to inform market messages
  • Optimal platforms for recruitment advertising in each area
  • Desired recruitment process for better candidate experience
  • Regional variations based on location-specific data

PeopleScout’s findings were summarized into easily understandable reports for each country. These insights guided the client in assessing locations for their multilingual centers, refining their value proposition, designing talent attraction strategies, and structuring compensation packages. The solution enabled informed decision-making and optimized recruitment efforts.

Real-World Application of HR Analytics

A leading credit reporting company struggled with increased staff turnover, prompting the need for action. The HR department collaborated with the internal specialists who formulated the credit scoring model. Using a similar approach, the team was able to create a predictive employee turnover model. The model provided a risk score for each employee using diverse data sources and alerted managers about the potential turnover risks at various role levels. The model was based on roughly 200 variables that were likely to influence an employee to seek opportunities elsewhere, including aspects like team dynamics, supervisor performance as well as commute length.

The new approach was rolled out globally and has provided valuable insights for decision-making and workforce planning in the longer term. For example, it was evident that turnover in each region was affected by a unique set of factors.

The model’s implementation led to a 3% decrease in attrition over 18 months, translating to a £8 million business saving. The rollout’s success was attributed to leadership endorsement of analytics and a collaborative approach between the analytics and HR teams to ensure action based on predictions and continuous improvement of the model.

Navigating Risks in Talent Analytics

Whilst the use of data insights as part of workforce planning and HR analytics initiatives is appealing, this promising approach comes with potential risks. These challenges include data privacy and data quality risks, interpretational biases as well as data collection pitfalls. Navigating these hurdles is crucial in ensuring that the use of data in building HR strategies is effective and ethical.

Talent analytics relies heavily on employee data, including personal information, which can lead to concerns around data privacy and security. Employers must prioritize data protection and compliance to prevent data breaches.

Low quality data can lead to misleading conclusions and negatively impact decision-making.  Well-designed data collection processes ensure that the records are complete and provide enough information from which to draw conclusions as well as to test hypotheses on multiple data samples.

In the modern business world, the synergy between HR analytics and workforce planning is undeniable. By leveraging them effectively, organizations can stay ahead in dynamic business environments, promoting a culture of adaptability, efficiency, and innovation. By aligning strategic goals with workforce planning and leveraging data-driven insights, employers can navigate the complex HR landscape with confidence and foster business growth.

[On-Demand] Modular RPO: Amping Up Your Recruitment Strategy

[On-Demand] Modular RPO: Amping Up Your Recruitment Strategy

In today’s tumultuous economy, employers continue to face hiring challenges, and because many lack sufficient in-house recruitment resources, they need nimble solutions to help them effectively and efficiently respond to market fluctuations. That’s where modular RPO comes in—a tool for targeted problem solving and a way to amplify your talent program.

In today’s tumultuous economy, employers continue to face hiring challenges, and because many lack sufficient in-house recruitment resources, they need nimble solutions to help them effectively and efficiently respond to market fluctuations. That’s where modular RPO comes in—a tool for targeted problem solving and a way to amplify your talent program.

In this Talking Talent webinar, Modular RPO: Amping Up Your Recruitment Strategy, available on-demand now, PeopleScout Head of RPO in EMEA, Jo Taylor and PeopleScout Senior Vice President of Client Delivery, Allison Brigden, take a deep dive into how modular RPO and PeopleScout’s new Amplifiers can help augment your team to meet your short-term talent needs—while providing lasting business value.

In this webinar, Jo and Allison cover:

  • The factors driving this complex talent market
  • The impact of increased agility in your talent program
  • Strategies for filling the top of your talent funnel
  • Developing the right assessment process for your organization
  • Solutions to reduce new-hire ghosting and turnover
  • And more!

PeopleScout Launches RPO Amplifiers—Modular Talent Solutions to Help Employers Boost their Recruitment Efforts

Curated suite of modular recruitment solutions helps augment recruitment efforts, deliver fast results and drive lasting business impact

CHICAGO—September 6, 2023—Recruitment process outsourcing (RPO) leader PeopleScout is proud to announce the launch of RPO Amplifiers, a curated suite of modular recruitment solutions to help employers augment their recruiting teams when and where they need it most. Whether it’s focused support for peak hiring seasons or onboarding hard-to-fill roles, RPO Amplifiers are designed to help organizations meet immediate talent goals and drive lasting business impact.  
 
“We are committed to meeting our clients’ unique needs with customizable talent solutionsand a full-cycle RPO engagement may not always be the best fit,” said Rick Betori, President of PeopleScout. “The flexibility of RPO Amplifiers allows organizations to scale quickly and augment their existing recruitment efforts, giving them the agility needed to compete in today’s talent landscape.” 
 
PeopleScout’s suite of RPO Amplifiers includes: 

  • Talent Mapping: PeopleScout experts harness research and analytics to help employers make better workforce planning decisions with insight into talent availability, salary benchmarks and more. 
  • Talent Sourcing: This talent sourcing solution helps employers boost their internal recruitment resources, engage with passive candidates and generate a list of qualified, enthusiastic applicants. 
  • Recruiter On-Demand™: This project-based solution leverages the expertise of PeopleScout’s recruitment pros when and where needed, without increasing permanent recruiter headcount. Recruiter On-Demand is implemented quickly and seamlessly, providing all the benefits of RPO expertise on a short-term basis. 
  • Assessment Transformation: This solution helps employers deploy assessments to make the right hires and enhance the candidate experience, leveraging cutting-edge technology and visionary design. 
  • Talent Diagnostic: PeopleScout’s 360-degree approach delves deep into every facet of the talent lifecycle. From evaluating an employer brand and enhancing attraction strategies, to optimizing the candidate experience and maximizing technology usage. 
  • Sure Start: Retention and Onboarding: This solution is designed to ensure that new hires not only start on their first day, but also feel valued and engaged from the get-go. Blending personal attention and technology, PeopleScout Sure Start keeps new employees excited, reducing early turnover, boosting productivity and creating a path to success for all new hires. 

RPO Amplifiers offer scalable, agile recruitment support for organizations in all industries, augmenting existing processes with focused support, backed by PeopleScout’s 30+ years of recruitment expertise. RPO Amplifiers can be added as a standalone service or combined with an existing RPO engagement—whether with PeopleScout or another provider—when extra support is needed. 

Learn more about PeopleScout’s RPO Amplifiers here

6 Benefits of Modular RPO in a Challenging Economy

By Jo Taylor, Head of RPO, EMEA

Employers face persistent challenges in talent acquisition and require agile solutions to address hiring needs efficiently. Despite a hiring slow down, demand continued to outpace supply toward the end of 2024, the ratio of job openings to unemployed workers is shifting closer to 2019 levels. This talent shortage is exacerbated by demographic shifts, with nearly four million workers having permanently exited the traditional labor force since 2020.

Organizations increasingly find themselves without sufficient recruitment infrastructure—both in human capital and technological capabilities—to navigate the complexities of today’s talent marketplace. With technical skills gaps widening and evolving rapidly, internal recruitment teams struggle to effectively manage the entire candidate journey. The consequences are clear: diminishing talent pipelines and rising instances of candidate disengagement between offer acceptance and official start dates.

It’s no surprise then that 59% of leaders report having difficulty finding qualified talent. In response, forward-thinking companies are turning to flexible recruitment process outsourcing (RPO) solutions as a strategic approach to enhance their talent acquisition capabilities precisely where support is most valuable.

That’s why we’re thrilled to announce our new suite of modular solutions, Amplifiers™. There’s an option for every organization offering targeted recruitment support to meet your immediate talent needs while delivering sustainable business advantages in today’s competitive marketplace.

What is Modular RPO? 

Modular RPO, or variable RPO, is a strategic approach to managing the recruitment process in an ultra-focused manner. It involves outsourcing specific components of the recruitment process to an RPO provider, or as a supplement to an existing outsourced recruitment engagement, providing quick access to targeted and customized recruitment support. With a modular or à la carte approach, you choose from a range of services based on your requirements. 

Our Amplifiers include: 

  • Talent Mapping 
  • Talent Sourcing 
  • Recruiter On-Demand
  • Assessment Transformation 
  • Talent Diagnostic 
  • Organizational Culture & EVP Diagnostic
  • Sure Start: Retention and Onboarding Support
  • Technology Diagnostic
  • Project Management 

Modular RPO vs Full End-to-End RPO 

Modular RPO differs from traditional enterprise RPO in that it allows businesses to select and customize the specific recruitment services they need, rather than outsourcing the entire process.  

The main differences include: 

  • Scope: Modular RPO focuses on specific parts of the recruitment process or short-term initiatives, while end-to-end RPO can cover the entire recruitment function. 
  • Duration: Modular RPO engagements are typically short-term, while end-to-end RPO is a long-term strategic partnership. However, many of our RPO partnerships at PeopleScout have started as short-term engagements.  
  • Technology Integration: End-to-end RPO often involves more extensive use of technology, including integration with other HR systems as well as customization. 

The decision between modular RPO and a full RPO engagement depends on various factors, including organization size, hiring volume, budget and strategic workforce planning. It’s essential to assess your specific needs and evaluate the benefits and trade-offs associated with each approach before making a decision. 

6 Benefits of Modular RPO

Here are six key benefits of a modular approach to RPO. 

1. Cost Optimization 

Modular RPO gives you greater control over your recruitment costs. You select specific recruitment services based on your challenges, enabling you to allocate your budget more efficiently by avoiding unnecessary expenses for unused services. In uncertain economic times, this is a more cost-effective approach that still lets you benefit from the expertise of an RPO partner. 

2. Scalability and Agility 

The business landscape is unpredictable, which can cause your hiring needs to fluctuate rapidly. Modular RPO provides the agility to scale your recruitment capabilities up or down based on demand. You can quickly adapt your recruitment efforts in response to market conditions, ensuring you have the adequate resources during high-demand periods and avoiding unnecessary expenses during slower periods. Plus, some of our clients have added Amplifiers onto their full RPO engagement—whether they’re partnered with PeopleScout or another RPO—when an extra boost is needed.  

3. Customization and Control  

Some organizations prefer to maintain a certain level of control over their recruitment process, particularly during uncertain economic times. With modular RPO, you can customize your recruitment process according to your specific requirements. Select the services you need, such as candidate sourcing, screening or onboarding support, while retaining oversight of other aspects of the recruitment process. This level of control allows companies to align the outsourced services with their internal hiring strategies and maintain greater mastery of their talent acquisition function. 

4. Strategic Focus 

By outsourcing specific recruitment functions to an RPO partner, you can free up your internal HR teams and hiring managers to focus on core business activities, such as talent development, workforce planning and organizational restructuring. By opting for a modular approach, organizations can collaborate with their RPO partner to design a solution that addresses their specific challenges and aligns with their strategic goals. 

5. Access to Technology 

RPO providers have access to advanced recruitment technologies and tools. Even with modular RPO, you can leverage these technologies for specific recruitment functions without investing in them for internal use. This is particularly beneficial in challenging economic environments where capital expenditures are carefully managed. 

6. Risk Mitigation 

In uncertain economic climates, modular recruitment solutions are a great option for organizations who are new to RPO. By opting for a more targeted and flexible approach, you can evaluate the effectiveness and value of the outsourced recruitment partner before expanding the engagement further. 

PeopleScout’s Amplifiers offer you the ability to optimize costs, maintain agility, streamline recruitment processes and focus on strategic priorities—while still benefiting from our 30 years of expertise as an RPO partner. The benefits of modular RPO align your organizational needs with our current economic realities. 

PeopleScout Jobs Report Analysis – August 2023

U.S. employers added 187,000 jobs in August. This is slightly higher than analysts expected and shows that the Federal Reserve’s plan to slow growth may be working. The unemployment rate rose to 3.8%. Year-over-year wage growth fell slightly to 4.3%.

us jobs report infographic

The Numbers

187,000: U.S. employers added 187,000 jobs in August.

3.8%: The unemployment rate rose to 3.8%.

4.3%: Wages rose 4.3% over the past year.

The Good

While 187,000 jobs would have been a standard month of growth in 2019, in 2023, it shows signs that the labor market is slowing. As the Wall Street Journal reports, August’s report reflects a cooling job market in a strong economy, which is what the Federal Reserve has been hoping to see. Job growth was led by the education and health services sector, and leisure and hospitality saw continued strength. The increased unemployment rate was caused by more Americans looking for work, but the job market has remained tight, with more employers choosing to slow their hiring rather than opt for layoffs.

The Bad

Wage growth is slowing, but not as quickly as the Fed would like to see. Yearly wage growth fell to 4.3% in August, slightly lower than the previous month. However, wage growth has remained stubbornly higher than 4%. As the New York Times reports, Fed officials believe high wage growth could make it difficult to return to their long-term inflation goal of 2%.

The Unknown

The big question for analysts is whether or not the Fed will raise interest rates at its next meeting in September. According to MarketWatch, the latest report shows enough of a slowdown that could convince officials to hold the interest rates steady. Over the past year-and-a-half, the Fed has increased a key short-term interest rate from near zero to 5.5% in an attempt to slow inflation. At the same time, they want to avoid raising interest rates too high, which could trigger a recession.

August’s jobs report is also typically one of the trickiest of the year to interpret. Fewer businesses than usual respond timely to the monthly questionnaire as many people take summer vacations. Additionally, the strikes in Hollywood and the bankruptcy of a large trucking company could make hiring numbers appear to be artificially lower.

CSR and ESG: How Markers of Sustainability and Social Responsibility Transform Talent Acquisition

Amid the alphabet soup of corporate jargon, buzzwords, and acronyms, you’ll find CSR and ESG. Respectively, the two stand for corporate social responsibility and Environmental, Social, and Governance. These concepts have been around for years but have been growing in importance. Now, CSR and ESG impact talent acquisition in new ways. As candidates become more knowledgeable and passionate about social responsibility and sustainability practices, employers need to respond. The issue is particularly salient for Gen Z, where 87% say it is important to work at a company that aligns with their values.

Job seekers want to work at organizations with values that match their own, with as many as 80% of workers in some industries saying that ESG issues play a role in whether they will resign from or remain at certain organizations.

So, how do CSR and ESG impact talent acquisition? In this article, we explore their impact and outline strategies to help talent leaders incorporate these concepts into their recruitment strategies.

What is Corporate Social Responsibility?

According to the United Nations, corporate social responsibility is “a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders.” CSR focuses on issues including environmental management, eco-efficiency, responsible sourcing, stakeholder engagement, labor standards and working conditions, employee and community relations, social equity, gender balance, human rights, good governance, and anti-corruption measures.

CSR has been growing in importance over the last several decades, according to Harvard Business School, and has led to specific designations like B Corporations (B Corps), social purpose corporations (SPCs), and low-profit limited liability companies (L3Cs). But for many organizations, CSR is simply a self-imposed regulation. Employers can express it through initiatives and strategies and often report back their results through corporate social responsibility reports.  

What is Environmental, Social, and Governance?

According to Gartner, Environmental, Social, and Governance (ESG) is “a collection of corporate performance evaluation criteria that assess the robustness of a company’s governance mechanisms and its ability to effectively manage its environmental and social impacts.”

Each pillar of ESG includes different criteria. McKinsey outlines environmental criteria as relating to how much energy a company takes in, how much waste it produces, what resources it requires and how that impacts life around the world. Social criteria address the relationships between an organization and the institutions and communities where it does business. Finally, governance represents the internal procedures and checks and balances an organization uses to make decisions and govern itself.

How CSR and ESG Impact Talent Acquisition

Once little-known terms, these markers of corporate responsibility and sustainability now play a role in job seekers’ decision-making.

One survey found that more than half of employees would not work for a company that doesn’t have strong policies addressing social or environmental sustainability issues. Additionally, 74% of employees said their job is more fulfilling when they’re given the chance to make a positive impact on social and environmental issues, and 70% indicated they’d be more loyal to a company in which they can help contribute to solutions.

The changing environment and increasing pace of climate-related disasters plays a role. Compiled data shows that Google searches for sustainable companies have been growing rapidly since 2016, reaching the highest volume yet in 2023, with no signs of slowing down. In that time, a number of environmental events have dominated headlines, from the devastating 2017 floods caused by Hurricane Harvey in the U.S. to the disastrous 2019-2020 Australian bushfires and 2023 Canadian wildfires. Spikes in searches often follow global climate meetings like the United Nations Climate Change Conferences.

Job seekers are paying attention, and employers can only expect that interest to increase. One survey found that 40% of Gen Z and millennial employees have changed jobs or sectors due to climate concerns or plan to in the future. Additionally, 60% of respondents reported feeling anxious about the environment over the past month, and more than 70% said that they are actively trying to minimize their impact on the environment.

3 Approaches for Including CSR and ESG in Your Recruitment Strategy

To stay ahead of the competition, talent leaders should include CSR and ESG in their talent strategies. Below we outline three approaches.

1. Build a Responsible, Sustainable Employer Brand

Your employer brand is your most powerful tool in attracting top talent, and your ESG and CSR initiatives should be featured throughout your branding materials. Think about your efforts to reduce carbon emissions, support local communities or promote diversity and inclusion. You may measure or report on progress of these initiatives for investors, so consider sharing with candidates as well. Even if you haven’t reached your goals yet, being transparent about your progress can demonstrate to candidates that these initiatives are genuine—not just lip service. Share your next steps and the strategies you have in place for reaching these goals.

There are several ways to showcase your progress to candidates:

  • Highlight ESG initiatives in your job descriptions
  • Create an ESG page on your career site
  • Leverage social media to share your progress toward ESG goals
  • Tap into current employees who can share their experiences
  • Train recruiters and hiring managers on ESG initiatives

2. Get Employees Involved

Your social responsibility and sustainability goals should be at the core of your culture. Make your goals and initiatives a regular part of conversation rather than distant promise. This will not only help retain top performers but will also help engage candidates.

You can get your employees involved in reaching your CSR and ESG goals by communicating progress and adding performance targets where appropriate. You can also consider benefits that align with your goals so that employees feel as though your commitment to social responsibility and sustainability are part of your DNA, not just marching orders.

Here are a few strategies you can employ:

  • Communicate updates on ESG initiatives regularly, like in team meetings or all-company updates
  • Encourage leadership to display day-today behaviors that align with goals
  • Add ESG-related performance goals
  • Consider ESG-related benefits, like days off for volunteer work, a cycle-to-work scheme or vouchers for public transit
  • Recognize employees for ESG-related contributions

3. Avoid Greenwashing

As you focus on and promote your social responsibility and sustainability work, avoid falling prey to greenwashing. Greenwashing happens when an organization spends more time and money showcasing sustainability initiatives than actually performing them. It’s often seen as a marketing gimmick, and consumers and candidates are growing more savvy in recognizing it. To maintain a positive reputation and brand perception, ensure that your organization lives up to the values you’re advertising from the top down.

Here are some tips to avoid greenwashing:

  • Avoid overly flowery language
  • Don’t use dishonest imagery
  • Ensure your business practices reflect your marketing promises
  • Be honest, even if you aren’t perfect
  • Share real data
  • Make concrete claims

A Sustainable Future: CSR and ESG in Talent Acquisition

As we move toward a more sustainable future, your CSR and ESG initiatives are important factors for job candidates. The right RPO partner can help you communicate the environmental work you’re already doing to attract top talent. The desire for sustainable employment isn’t going anywhere, and employers should only expect it to get stronger.  

Check out our predictions for the future of work in our ebook, Destination 2030: 10 Predictions for What’s NEXT in the World of Work.

future of work

DESTINATION 2030: 10 Predictions for What’s NEXT in the World of Work

Checking In: Updating Your Hospitality Recruitment Strategies for the New World of Work

Travel is back, but hospitality employers are still playing catch up. Travelers around the world are booking flights, checking into hotel rooms, making reservations and buying tickets. Brands are attracting customers but struggling to attract employees with the right hospitality recruitment strategies.

In 2020, the size of the global tourism market fell by nearly a trillion dollars as travel came to a halt. The industry finally surpassed its prepandemic highs in 2023, reaching a market size of $2.3 trillion (USD). But employment in the industry lags behind. In the U.S. alone, nearly 2 million hospitality jobs remain unfilled, according to the Washington Post.

The old hospitality recruitment strategies aren’t working anymore. The world of work has changed.  Many sectors have expanded the availability of remote and hybrid work, and many front-line hospitality workers left the industry for more flexible roles.

Employers must update their employer branding and candidate attraction strategies to draw in top hospitality talent. In this article, we cover the hospitality brain drain and provide hospitality recruitment strategies that talent leaders can put into place now to get ahead of the competition.

The Hospitality Industry Brain Drain

One of the largest lasting impacts from the COVID-19 pandemic is the permanent loss of talent.  as workers fled the travel and hospitality industry for more stable, more flexible or less customer-facing positions. While employment in the hospitality sector still lags, professional and business services saw 1.4 million new jobs added during the pandemic.

Rather than returning to employment in hotels or with airlines, many laid off workers looked for behind-the-scenes office work where they were offered more flexibility, more traditional hours and often higher pay.

In 2022, the U.S. Bureau of Labor Statistics reported record quit rates during the Great Resignation, with the quit rate in leisure and hospitality jumping by a percentage point to 6.4%.

This phenomenon, sometimes called “brain drain,” has left hospitality employers with not just fewer workers but also those with less experience. This has led to increased competition for experienced hospitality workers and often increased time-to-fill rates for more specialized hospitality roles. Talent leaders must work to coax experienced workers back to the industry while also focusing on the next generation. Below, we outline three strategies to bring back and bring in hospitality talent.

Top 3 Hospitality Recruitment Strategies

1. It’s Time to Update Your Employer Brand

In today’s talent market, hospitality employers need to stand out in a crowded field of competition. Your employer value proposition and employer brand will be what convinces top talent to join your organization, rather than the hotel down the street or the customer service job that will allow them to take calls from their home offices.

However, after the past several years, few have had the resources to invest in and update their employer brands. If you haven’t refreshed your employer brand in a few years, now is the time. Each hospitality brand has its own distinctive personality and style that should be reflected in both consumer marketing and employer branding.

Your employer value proposition, or EVP, is the foundation of your employer brand. Your EVP describes the give and get between employer and employee. At PeopleScout, our EVP work has five phases:

  1. Define
  2. Discover
  3. Develop
  4. Design
  5. Deploy

In the define stage, we build a baseline understanding of you and your competition through competitor audits, social listening, candidate experience diagnostics and collaborative sessions. In the discover phase, we go deeper to understand what makes your organization unique through interviews with leaders and employees throughout the organization.

From there, we analyze the data and develop an EVP prototype that we validate through workshops and interviews with employees. In the design phase, we create the creative concepts to bring your EVP to life with an employer brand playbook and employer brand toolkit. These include deliverables like EVP positioning and messaging, social media posts and ads, and printed materials like posters and exhibition stands for job fairs.

Finally, we deploy, focusing on an employee ambassador program that helps your current employees share their stories with prospective candidates. From there, your EVP and brand can flex and evolve to adapt to changing candidate expectations.

By honing your employer value proposition and attraction messaging, you can zero in the characteristics you need for the variety of roles you need filled. By shifting your mindset from focusing on getting the most applications, or even those with certain experience, to getting applications with the right profile, you can reduce attrition by increasing the likelihood of your new hires being successful.

2. Are Your Offers and Benefits Competitive?

The leisure and hospitality sector has seen some of the highest wage increases across all employers in recent years. In the U.S., wages in hospitality have risen 23% over the past three years. Additionally, workers have more options for hybrid or flexible work in other industries where the pay is similar or even higher. This makes it more difficult for hospitality employers to compete. According to the Boston Hospitality Review, compensation was one of the most cited reasons that people left the hospitality industry during the pandemic.

To stand out in this market, you need offers that are not only competitive in terms of salary but also provide the types of flexibility and benefits that candidates are looking for and can likely find in other industries. Hospitality candidates are increasingly interested in remote work. Google searches for “remote hotel jobs” have increased about 400% since 2019.

Many hospitality jobs require being on site, making hybrid work only possible for a small percentage of roles; however, employers should evaluate and offer the option when possible. Additionally, consider flexible work arrangements or scheduling that would allow front-line workers time to do things like pick children up from school.

Other benefits can also help bring in or bring back hospitality workers. While 88% of employees say that health benefits are important to them, only 30% of restaurants offer medical insurance. Not every employer will have the budget for health insurance, so consider other benefits, like caregiver benefits, parental leave or a commuting allowance.

You can also consider different compensation models. Consider a salaried front-of-house staff. According to Monster, employers who pay their front of house staff a salary gain an advantage for attracting top talent, and those workers create a better customer experience because they aren’t focused on “turn-and-burn” tactics. You can also consider profit sharing or bonuses to help attract and retain employees.

3. Focus on Culture

Your company culture may not be listed as a line item on a paystub, but it can serve as a benefit for attracting top talent in a tough industry. In any customer-facing role, employees can be subject to stressful situations, but a supportive culture can increase employee retention.

One survey found that 91% of hospitality workers have dealt with customers who believed they inherently deserved privileges or special treatment. Of those workers, 70% wanted to leave the industry entirely after confronting a demanding consumer. Employers need to ensure that they not only meet traveler expectations but also keep workers happy and focus on retention.

Hospitality employers should focus on building a supportive culture. This should start from day one with structured training and can include things like mentorship programs to support new employees and help them feel like part of the team. Additionally, consider adding wellness programs that include things like counseling or employee assistance programs.

Finally, the travel and hospitality sector has a unique opportunity to build a fun culture by creating ways for employees to enjoy the services normally provided to guests. This can look like VIP perks for employees and their friends and families, discounted meals or free meals during shifts, yearly overnight stays at hotels to celebrate work anniversaries or discounted tickets to events.

Choosing the Right Hospitality Recruiting Strategies

Candidate expectations are always changing, so hospitality employers need to find the recruitment strategies that work best to attract the right candidates at the right time. An experienced RPO provider can help talent leaders narrow down the best solutions and help build an employer brand to bring in top talent with the right skills and mindset.

To get more strategies for attracting and hiring hospitality, travel and tourism talent, download our Recruitment Handbook for Travel and Hospitality.

The Recruitment Handbook for Travel and Hospitality