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!

2023 U.S. Workforce Trends Mid-Year Report

2023 U.S. Workforce Trends Mid-Year Report

As part of our commitment to keeping you informed about the latest news in the hiring market, we are excited to share our 2023 U.S. Workforce Trends Mid-Year Report. In this report, we have analyzed the latest jobs data across various industries so you are ready to face the months ahead with a stronger staffing strategy.

The first half of the year has seen slower hiring in many industries as businesses navigate economic uncertainty. However, there is a steady demand for workers in critical sectors such as retail, manufacturing and hospitality.

Our 2023 U.S. Workforce Trends Mid-Year Report includes:

  • National job numbers for the first half of 2023

  • Workforce and wage information for several major industries

  • A breakdown of jobs experiencing notable growth

At PeopleScout, we understand the importance of having the right workforce to support your success. That’s why our report goes beyond sharing workforce data — it also offers recommendations and strategies to help you attract and retain the right workers. These insights can help your company build a strong and flexible workforce that can adapt to changing demands, seize new opportunities and ultimately thrive in today’s business landscape.

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

Amidst a tumultuous economy, employers continue to face challenges in talent acquisition and are seeking nimble solutions that allow them to address hiring needs quickly. Despite layoffs in some sectors, job openings surpass pre-pandemic levels in nearly every industry—averaging 31% more vacancies than in 2019. This is compounded by three million people having dropped out of the labor force.  

Many organizations lack the in-house recruitment resources—in terms of personnel or technology—to respond to fluctuations in a volatile talent market. Plus, with skills gaps growing, internal talent acquisition teams are too stretched to effectively manage the candidate lifecycle. Consequently, employers experience dwindling talent pipelines and an increase in drop-offs and ghosting between offer acceptance and onboarding. 

No wonder 91% of hiring managers say they’re experiencing hiring challenges and 45% say they’re struggling to find qualified workers for open roles at their companies. Many organizations are seeking recruitment support in the form of modular RPO (recruitment process outsourcing) as a cost-effective way to augment their recruitment capabilities where they need it most.  

That’s why we’re thrilled to announce our new suite of modular solutions, Amplifiers. Amplifiers has a solution that can help augment your team to meet your short-term talent needs—while providing lasting business value.   

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 
  • Sure Start: Retention and Onboarding Support 

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. 

MODULAR Recruitment SOLUTIONS FROM PEOPLESCOUT

AMPLIFIERS: SCALABLE. FLEXIBLE. AGILE.

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

Attracting Older Workers to Retail and Hospitality Jobs

According to a global study by Bain & Company, workers aged 55 and older make up over 25% of the workforce in G7 countries by 2031, making older workers one of the most in-demand talent pools for employers today. In the UK, the government launched a “returnership” initiative to inspire those over the age of 50 to come back to work or to seek a career change. This scheme involves three programs that help older workers retrain and learn new skills, providing workers with a clear roadmap back into the workplace and encouraging organizations to hire them. In Western Australia, the Job Reconnect program provides grants to both employers and employees to cover costs related to licences, upskilling, and even work clothing, transport and childcare.

It’s crucial for retail and hospitality employers to know how to entice older workers back to work and to make the most of their valuable talent. Known as the ‘sandwich generation’—defined by caring for their elderly parents and also dependent children or grandchildren—older works have a strong work ethic. Customer facing and front of house roles enable them to fit work around caring for family and other responsibilities.

Keep reading for key insights from our panel discussion and get the latest research to understand exactly what older workers want and what retail and hospitality organizations can do attract this in-demand demographic.

What Do Older Workers Want?

What do over 50s want and need from an employer? Does your organization know how to attract and engage this older workforce and how to hire and retain them?

Flexibility

Unsurprisingly, monetary concerns are coaxing older workers back into the workplace due to the cost-of-living crisis. However, when it comes to choosing an employer, flexibility takes precedence over money.

Hospitality roles typically attract a younger demographic of workers. However, the flexibility offered by these jobs also appeals to the older working generation. Given that the over 50s are the largest age group with caring roles, flexible and part-time work is a powerful motivator for them to fit a job into their routine.  

As well as permanent roles, seasonal and flexible roles are available within the hospitality and retail industries, which can be more attractive to the older working community. Working harder in those seasonal months creates work-life balance, allowing older workers to take time off during quieter periods to recover and be with their friends and family.

Sense of Belonging

Workers in this age rage are still searching for rewarding work. Older workers wish to find a place where they can feel a part of their local community and give back. Over 50s enjoy creating social connections that a customer-facing job in a restaurant or supermarket can provide.

Customer-facing roles in hospitality and retail give individuals the chance to serve and connect with their community. For older customers, seeing employees in shops and restaurants that represent them can boost the customer experience. 

Myths About Older Workers

There are plenty of misconceptions out there from employers and colleagues about hiring and working with older workers. Consider these myths busted.

Myth 1: Older Workers are Resistant to Technology

Certain words can be viewed as a turn off for an over 50s audience, including “tech-savvy”, which some see as a way to ward off older candidates. There are older people who will feel excluded because others wrongly perceive that they’re less capable with technology, when in fact they are part of a generation that has seen huge advancements in technology. Bill Gates, the co-founder of Microsoft, is in his late 60s, and Tim Cook, the CEO of Apple is in his early 60s.

Recognise that all colleagues work differently with technology, so you must be thoughtful in your use of training. In hospitality and retail, workers are likely to be using tills and sales computer systems. Regardless of whether a person struggles with technology, an organization should have a strong program in place to support workers as they learn how to use these tools. For example, consider implementing a buddy system of workers and leaders who will happily help new employees in their first few weeks as they learn point-of-sale systems.

Myth 2: Absences are Higher Because of Health Issues

As people get older, their health can decline. However, this doesn’t mean that absenteeism is higher amongst older workers. In fact, older workers are more likely to have higher everyday attendance rates due to their strong work ethic. When you do see sickness or absence, it is typically in the form of long-term leave, rather than the odd day here and there.

Myth 3: Older Workers are Less Productive Than Younger Workers

A study demonstrated that there was no different between younger and older workers in terms of productivity. This study found that with their years of experience and memories, older people perhaps dismiss new information when they process things and instead use past information. It’s therefore important to acknowledge that older workers aren’t doing things worse, they just do these things differently through their years of experience.

What Can Organizations Do to Attract Older Workers?

So, how can retail and hospitality organization tap into this hard-working talent pool? Here are four questions to ask to ensure your talent acquisition program is over-50s friendly.

Are Your Candidate Attraction Materials Inclusive for Everyone?

To attract older workers, you must think more creatively and broadly.  Use community-based websites to engage with people who live close to your locations. Show how the job will fit into their lifestyle and what it would be like for an older person to work there, rather than a generic message. Create testimonials from your current employees to support this.

Make sure that your imagery is diverse, featuring people of all ages. Look at your marketing materials and ensure that it reflects the community so that over 50s can see that jobs in hospitality are here for them. Take advantage of local community-boards in community centers and supermarkets.

How is Your Candidate Experience?

Retention and attraction are very different. Employers can encourage people to apply for jobs through their advertisements, yet ultimately, it is down to the experience the candidate has during the recruitment process, induction and beyond. The candidate experience is what will make them accept the position and stay at the company. 

When younger workers leave education, they’re taught how to answer competency-based interview questions and how to write a resume. The older generation of workers likely won’t have a resume and may not have experience with this kind of interview. Is your interview process age inclusive and relevant to them?

Are You Giving Them What They Want?

Now that we’ve shared what older workers want, is your organization serious about flexible shift patterns? Over 40% of the part-time workforce is aged over 50. Not only does this part-time schedule work in hospitality, but also in retail, in which the holiday season creates a huge demand for workers.

Different shift patterns in retail can support individuals in their family commitments and lifestyle. Look at your employees’ caring responsibilities, for partners, for children, for elderly parents, and take this into account when creating your shift offerings.

But what else does this generation want from you? Everyone responds well to positive feedback. Both the retail and hospitality industries are great at celebrating successes, shown through brilliant behavior and examples across organizations.

Finally, show that your organization values them by offering benefit packages. Health is a priority for everyone as we get older, and health benefits can help to attract them to your organization.

Does Your Anti-Bias Training Include Age?

Ageism usually gets the least amount of focus across the DE&I plan. Train your leaders and hiring managers on unconscious bias particularly as it relates to age. Ensure there are no biases lurking in the recruitment process to open up talent pools instead of closing them down.

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PeopleScout Jobs Report Analysis—July 2023

U.S. employers added 187,000 jobs in July, slowing down from previous months. The increase is also lower than analysts expected. This shows that the Federal Reserve’s plan to slow growth may be working. The unemployment rate fell slightly to 3.5%. Year-over-year wage growth remained flat at 4.4%.

The Numbers

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

3.5%: The unemployment rate fell to 3.5%.

4.4%: Wages grew 4.4% over the past year.

The Good

The headline number of July’s report, 187,000 jobs added to the economy, is good news because it represents a more sustainable pace of growth, and as MarketWatch reports, could be a sign that the economy is cooling enough to decrease inflation. Nearly half of the jobs created in July were by medical providers and in social programs. The Federal Reserve also dropped its forecast of a recession, and economists say a downturn is not likely in the next year.

The Bad

According to the New York Times, wage growth is still higher than experts would like to see, remaining unchanged from the 4.4% year-over-year growth seen in last month’s report. Federal officials are looking for that number to drop. Recently, Federal Reserve Chair Jerome Powell stated that some Fed officials have been making the case that high wage growth could be a sign that workers are trying to keep up with inflation by negotiating higher pay, so slower wage growth could follow decreased inflation.

The Unknown

The big question is whether the Fed will increase rates again at its next meeting in September. As the Wall Street Journal reports, officials will also be able to consider August’s jobs report numbers and inflation data from July and August during that meeting. July’s jobs report and June’s inflation numbers paint a mixed picture, with slower job growth and consumer inflation down to 3% but high wage growth and flat labor force participation. So, experts will be watching the next reports closely.