Category: Contingent Workforce Management

Evolve Your Recruitment Program with Globally Dispersed Talent 

Posted on by jpatel

As organizations continue to adjust to changes caused by the pandemic, access to skilled talent remains a key factor preventing them from accelerated recovery and growth. However, with work-from-home and hybrid models becoming the new norm, organizations have the unique opportunity to expand their talent network across borders. And, for workers looking to relocate for greater job prospects, crossing borders for work is becoming easier than ever for both employees and employers: According to Harvard Business Review, “Many countries have now put the legal framework in place to hire and relocate global talent at a cost and speed that is broadly comparable with hiring domestically.” 

Furthermore, in a 2021 survey by Boston Consulting Group and The Network, about 50% of respondents were either already working abroad or willing to move abroad for work. Moreover, 57% of respondents said they were willing to work remotely for an employer that didn’t have a physical presence in their home country. 

global talent management

In this article, we’ll share the benefits of a global talent program; highlight considerations to keep in mind; and offer strategies for attracting and recruiting talent around the world. 

Benefits of Globally Dispersed Talent 

The global talent pool is growing and ready to work—regardless of location—and it’s up to employers to seize the moment. Consider the benefits of leveraging globally dispersed talent: 

Expanded Talent Pool 

Many organizations have been struggling to fill open roles because they’re unable to find the talent they need in local searches. But, by expanding your search across borders, you can expand your search for the skills the role requires in a larger talent pool. Plus, you can also start these workers out in remote and contract roles to test whether they would be a good fit.  

Greater Diversity 

It’s no secret that having a diverse team yields better business results due to high levels of creativity and innovation. Consequently, by hiring people from different geographies, you can tap into the knowledge of people from different backgrounds, cultures, educations and more.  

Increased Reach 

When operating in different regions, you have greater access to new markets, as your dispersed team can help build your brand recognition and reputation with new customer bases in their respective locations. Additionally, having teams across various regions may also enable you to expand your business hours so you can improve productivity and be available to customers no matter where they’re located. 

Cost Savings 

Labor costs vary across countries, so it’s often cost-effective to move certain business operations to countries with lower labor costs. For example, many companies offshore manufacturing, call center and IT operations to places like Mexico, India and the Philippines. Doing so lowers the cost of operations and, therefore, lowers the cost of products for the consumer.  

And, because commercial real estate policies and prices vary from country to country, you can also reduce costs by implementing a remote work program in other countries before deciding whether a physical office space will be necessary in a given region. 

Considerations for a Global Talent Management Program 

Before diving into a global recruitment program, it’s important to consider the key differences between recruiting in different countries. For instance, cultural nuances, policies and legislation will likely be different from your organization’s primary country and can make or break the success of your global recruitment and employment strategy. Consider the following examples: 

Workforce Planning 

As you plan your hiring in new geographies, it’s important to be aware of the length of the statutory notice period, as requirements vary widely from country to country and can make hiring timelines longer (up to three to six months, in some cases). For example, in the U.S., there’s no legal requirement to provide notice, but it’s customary for employees to give a two-week notice to aid in the transition. Conversely, in Japan, there’s a fixed notice period of 30 days—regardless of the employee’s years of service or seniority. In other countries, an employee’s notice period depends on the terms of their employment contract and may be connected to the number of years of service to the company. 

In places that require longer notice periods, candidate communications are even more essential in order to keep those candidates engaged and to set expectations on next steps. For this reason, incorporating transition timelines into your workforce planning is crucial so you don’t reduce productivity while waiting for your new hire to start in their role. 

Recruitment Marketing 

Notably, if you’re using the same recruitment marketing tactics in every country, you’re missing a trick. Take social media, for example: Different networks work better in different markets. While LinkedIn, Facebook and Twitter are popular in the U.S., WeChat (a mobile app that focuses on messaging, social media and mobile payments) is heavily used in China. Similarly, XING and Viadeo are popular alternatives for career-oriented networking in Germany and France, respectively. So, understanding social media preferences in each country will help you promote your job ads in a more effective manner.  

Granted, social media and digital advertising may not be the best fit for all roles in all places. In fact, even within a single country, there are nuances to consider. For instance, PeopleScout leveraged physical advertisements at bus stops in the smaller European cities where an RPO client in the manufacturing sector was hiring because we knew that it was less likely that blue-collar candidates in these areas would have internet access at home.    

And, localization is key—not just in digital channel usage, but also in language and imagery. For example, while an image of a blonde-haired, blue-eyed worker would resonate in North America, the same type of image would not be as well-received by candidates in Asia. In addition, candidates in Europe are more likely to be multilingual, so testing recruitment marketing techniques in a few different languages might prove to be useful when recruiting in that geography.  

Mobile-Friendly Candidate Experience 

A mobile-first candidate experience is more important than ever. In the U.S., approximately 15% of adults are “smartphone-only” internet users, meaning that they access the internet only through their smartphone and don’t have an internet connection at home. And, by 2025, nearly three-quarters (72.6%) of internet users—nearly 3.7 billion people worldwide—will access the web exclusively via smartphone.   

Regardless of where they are in the world, your potential candidates are looking and applying for jobs via their mobile phones. So, consider how your recruitment tech stack supports a mobile-friendly application process to future-proof your global talent acquisition program. 

Regulations & Compliance 

Due to varying laws and regulations, recruitment processes can’t be the same in every country, and it can be difficult for enterprises to navigate the requirements in each market. For example, in Sweden, you don’t need to establish a legal entity to hire employees in the country, whereas you do in Singapore. Furthermore, statutory requirements for notice periods, probationary periods and permitted pre-employment checks all vary from country to country. In fact, in 22 countries, it’s mandatory to organize a medical exam prior to hiring someone. In any case, it’s imperative that you understand employment law in each country you’re hiring in so you don’t violate your new employees’ rights.  

Granted, the employment law landscape is constantly changing, making it increasingly difficult for multinational companies to stay compliant and avoid damages to the organization’s finances and reputation. Fortunately, a global RPO partner can support you with global and local expertise to ensure you stay on top of regulations in each country you’re hiring in. 

Strategies for Recruiting Globally Dispersed Talent 

So, how can you overcome these challenges to realize the benefits of expanding your recruitment program to globally dispersed talent? Here are some actionable ideas to help you adjust your recruitment strategies: 

Map Each Labor Market 

Before you start recruiting in a new market, it’s important to understand the lay of land. Specifically, delving into the talent landscape and competition in each area—not just your direct competitors, but any organization hiring for the roles or skill sets you’re seeking—can inform your recruitment strategy and compensation packages. In this way, investing the time to map the labor market upfront is invaluable for creating a competitive advantage, especially when it comes to new geographies or remote workers. Then, armed with this data, you can create offers that reflect rates in the new hire’s area and boost your acceptance rates in the meantime. 

As an example, PeopleScout recently helped a manufacturing client recruit engineers in an area in the north of the Czech Republic, where the available talent pool for the skills they needed was low, but the competition was high. After completing a labor market analysis, we advised the team to expand their search area across the border to Poland (where the talent supply was larger) to find talent that would be willing to commute or relocate. By doing so, we were able to fill business-critical automation engineer roles that saved their productivity levels.   

Adapt Your EVP to Your Audience 

Your employer brand—an individual’s perceptions and lived experiences of what it’s like to work for your organization—helps you attract and retain the right people to help your organization succeed. According to Gartner, organizations that effectively deliver on their employer value proposition (EVP) can decrease annual employee turnover by 69%. And, in today’s ultra-competitive, candidate-driven market, a strong employer brand can also help you stand out in a sea of job openings. 

Specifically, companies that attract top talent will be those that have invested in developing messaging pillars that allow their employer brand to flex and resonate with talent audiences across the globe. For example, PeopleScout helped global law firm Linklaters revamp and tailor its employer brand to support hiring across 20 offices in Europe, North America and Asia-Pacific, while simultaneously boosting its Glassdoor scores and increasing global applications from female lawyers.  

So, to truly understand your ideal candidate, do your homework for every position type in each market and adapt your brand messaging and attraction strategies accordingly. In particular, a candidate persona profile is a great way to capture each position’s requirements, motivations and expectations so you can design your recruitment marketing content around messages that will truly resonate. 

Invest in Your Recruitment Tech Stack 

Investing in standardizing your recruitment technology across geographies offers a litany of ways not only to streamline the candidate experience, but also your internal program management efforts and reporting, as well.  

Plus, nowadays, candidates expect a tech-enabled recruitment experience that enables them to search for jobs on the go—and a whopping 89% of candidates think mobile devices play a critical role in the job-hunting process. Therefore, looking for ways to make your application process more mobile-friendly—including leveraging “quick apply” features in your ATS—will pay off in application volumes.  

What’s more, hiring in new geographies or for remote workers will almost certainly involve virtual interviews. Thus, investing in a virtual hiring solution can help you hire the talent you need quickly and with a seamless candidate experience. Unlike typical video meeting tools, modern virtual interview tools offer options like on-demand phone interviews and text/SMS interviews, as well as live and pre-recorded video interviews. 

However, one consideration to keep in mind when selecting technology for global recruitment is where the data will be stored and processed. Regulations (such as GDPR in Europe) limit the amount of data that can be processed in the U.S. So, look for tools that are SOC 2-certified, and assess any vendor’s information on security policies, procedures and practices. 

Put Your Global Talent Program in Action 

If your organization is new to global talent acquisition or if you haven’t expanded business operations very far, the considerations and strategies highlighted above can seem daunting. But, the good news is that a global RPO partner can be a valuable partner to help guide you through your global talent acquisition challenges. Moreover, with a wealth of knowledge and experience gained through working with clients spanning a variety of industries and countries, an RPO partner can also help you navigate the complex compliance and cultural issues that accompany a multi-country recruitment program. 

So, what should you look for in a global RPO partner? Well, you’ll see the greatest benefit from a provider that is able to offer a customizable solution that’s flexible enough to support everything from your niche hires and short-term needs to your high-volume roles and full-cycle recruitment processes. 

Learn more about how to find the right global RPO provider in our ebook, The Buyer’s Guide to Global RPO. 

Boomerang Employees: How Looking Back Can Help Propel Your Organization Forward

Posted on by jpatel

As employees around the world quit their jobs in droves, the Great Resignation quickly became a global phenomenon and job openings across industries hit all-time highs. In order to keep up with this increasing demand for workers, employers are expanding their talent pools in a variety of ways, including searching across new geographies, considering workers who are changing careers, implementing innovative recruitment marketing techniques and more.  

However, as a result of the Great Resignation, we’re beginning to see an alternative talent pool emerge: Boomerang employees—workers who voluntarily resign from your company and later rejoin. In this article, we’ll explain who boomerang employees are; the benefits and considerations of hiring them; and how to attract this unique group of talent. 

Who Are Boomerang Employees?

Before you consider rehiring an employee who previously left your organization, it’s important to understand the key differentiators that separate potential boomerang employees from permanent alumni.  

As the term suggests, permanent alumni will remain just that—permanently separated from an organization. These individuals likely stayed at the company for many years and had a good grasp of the organization’s overall culture and values. However, at a certain point, these individuals decided that the company was not the right fit for them; this could be due to dissatisfaction with company culture, the need for a career change or any number of other work-related issues. Note here that a key factor in any of these reasons for leaving is an internal desire to resign. 

Conversely, boomerang employees are more likely to have left a company quickly due to external factors, such as a sudden family emergency or an unexpected competing job offer that was too good to decline. So, while permanent alumni chose to leave because they were unsatisfied with the company in some way, boomerang employees are more likely to consider rejoining because they left for other reasons—none of which implied that they had an issue with the company in the first place. 

“Five years ago, I chose to take a career break to raise my family. When the boys started school, I was ready to pick up my career again. As chance would have it, PeopleScout had identified a role working on a project supporting two big clients, and I was excited about the prospect of this new challenge. The company had changed a lot in the time I was away, so I was grateful for the in-depth introduction process and support from management and colleagues upon my return. The flexible working arrangement that PeopleScout offers means that I’m able to achieve the balance between working and looking after my family, which is fantastic. I’m happy to be back and am looking forward to developing my career over the coming years.”  

Shelley Romero, Media Solutions Manager 
PeopleScout UK 

Meanwhile, some people may leave to pursue new opportunities because they’re unsatisfied in some way and are hopeful that the “grass will be greener” elsewhere. Then, if they find that isn’t the case, they may also be inclined to return to a previous company with a newfound appreciation. 

“Due to business changes during the pandemic, I was assigned to a new client account and, after much time and consideration, I knew it just wasn’t the right fit for me. Though I did not want to leave, it was in my best interest to resign at that time. However, I stayed in contact with my previous manager and colleagues, and when an opening arose, they asked me, ‘Are you ready to come back home?’ It was never a matter of if, but when I was coming back. Everything needed to align—the right position, team and leadership. I was hesitant to return after my last experience that caused me to resign, but I knew what ‘home’ felt like, and I couldn’t be happier in my current position at PeopleScout!”

Alison Thompson, Senior Recruiter 
PeopleScout

During the pandemic, the world was reminded how quickly life can change. Whether employees left your organization to pursue other opportunities or to prioritize caring for their family, these types of employees create a whole new pool of talent that could be the perfect fit for your organization. After some time has passed, many of these people could be on the job hunt again—and your organization could serve as the right choice at the right time.  

Benefits of Hiring Boomerang Employees 

Rehiring former employees can present a variety of benefits for employers. Here are some of the biggest reasons to consider looking back at your previous hires: 

Save Time & Money 

Hiring a former employee reduces the hiring timeline and cuts down on overall recruiting costs. And, because these employees have previous experience working at your company, they will require less time and fewer resources to onboard and get up to speed to hit the ground running. 

Eliminate Second-Guessing 

Additionally, when you hire a former employee, you won’t have to wonder whether they’ll be a cultural fit; you already know how they fit in with the company and how they work with various people in the organization—something that always remains a slight unknown when hiring someone completely new. 

Gain Fresh Perspective 

Former employees are unique in the fact that they have had some time to step away and see the organization from the outside. Often, employees may have left to advance their career at another company and gain valuable skills. Then, when they return, they’ll be equipped with increased knowledge and experience to bring new ideas and insight into your organization. 

Boost Employer Brand 

Rehiring employees also sends a positive message to existing employees and can improve an organization’s employer brand overall. Specifically, by giving employees a second chance, it shows that the company is willing to bring people back and help them reach their potential—even if they previously left on their own accord. Furthermore, to existing employees (perhaps some of whom were considering leaving themselves), it shows that the company is worth coming back to, thereby leading to improved retention and employee satisfaction. Moreover, it demonstrates that leaving doesn’t have to burn bridges—especially when the company sees the value of the whole person. 

Make Employees Happy 

Plus, employees who left a job during the pandemic may now realize that they miss some aspects of their old company. Returning to a previous employer with new skills and a fresh perspective can mean higher pay, more growth opportunities and, in some cases, the ability to work from anywhere, which may not have been an option pre-pandemic. Consequently, these employees will likely be happy with their decision to return—leading to improved productivity for your organization. 

Questions to Ask Before Hiring Boomerang Employees 

rehire employees

While there are many reasons to hire previous employees, that doesn’t always mean you should. So, before you decide whether turning back to a former employee is the right move for your organization, keep these considerations in mind: 

How Much Time Has Passed? 

Account for how much time has passed since the employee initially left the company. For instance, an employee who left less than a year ago due to a personal emergency is more likely to be able to jump back in and get started than someone who left several years ago and has to learn new processes and technology. 

Are They Adaptable? 

Nowadays, change within an organization can happen fast, and if the employee has been away from the company for a while, it can be helpful to consider their level of adaptability: Are they willing to learn new systems and procedures? Or, will they be stuck in old habits from their first tenure? 

Are They the Best? 

Amid a labor shortage, it can be tempting to settle for the easiest, quickest option to fill an open role. However, it’s important to think long-term: While this employee will cost less to hire and is a good cultural fit, are they truly the best person for the job? Consider whether this employee performed well in their previous tenure with the company, which is a good indicator of how they will fare the second time around. 

Were They Missed? 

While an employee’s individual performance may have been stellar, it’s important to understand their influence on the team. In particular, did they get along well with colleagues, or was it a relief for people when they left? When bringing back an employee, ensure that their return will have a positive effect on the productivity of the team as a whole. 

Why Do They Want to Return? 

Find out what made the employee choose to leave in the first place. Is that reason still going to be an obstacle moving forward? It’s important to ask what has changed since the time when they initially left. While familial or personal reasons would likely be resolved, you might have a bigger issue on your hands if they left because the company was not a good fit the first time. So, ask the former employee why they want to return. Then, if you’re looking for long-term talent, try to get a grasp of whether they’re ready to commit to your company for the foreseeable future. If they aren’t, you may have a permanent alumnus on your hands. 

How to Keep the Door Open to Boomerang Employees 

As the past two years have shown us, things happen—often unexpectedly. For one reason or another, people might be pulled in another direction and have no choice but to leave your company a little too soon. When this happens, it’s important to understand why they’re leaving and if there’s anything the organization could have done to encourage them to stay. If not, perform exit interviews and get an idea of what is working and what can be improved upon in your organization. 

While some employees may choose to reapply to your company in the future, many former employees may never consider rejoining or even know it’s an option without first hearing from a former colleague or manager. In this situation, what’s the best way to reach out to these former employees? 

To start, be sure to part on good terms. If the employee is one whom you would be eager to welcome back to your team again, make sure they know that when they leave. In today’s world that’s driven by social media, it’s easier than ever to stay connected across job changes. So, keep in touch with high-performing employees after they leave and proactively check-in with them when you’re ready to bring them back. 

“Having former employees return to my team has been a true privilege. There is something about a second chance to help someone grow and develop and to be entrusted to help them achieve their career goals that is very special. I have the honor of having three boomerang employees on my current team. I am grateful that they rejoined and for the incredible know-how, passion and commitment that they bring to our team. I will continue to do all I can to support their success so that they can see their future here.”

Caroline Sabetti, Chief Marketing Officer, PeopleReady & PeopleScout 
Senior Vice President, TrueBlue Communications 

In addition, consider these three strategies for re-recruiting former employees: 

1. Existing Employees

If you have an opening on your team and some of your existing employees still maintain relationships with former staff, your current team can be helpful in re-recruiting this talent. Let your current employees know you’d like to consider a former employee for the role and, if they’re willing, they can bring the idea up with the former colleague and encourage them to apply. 

2. Direct Manager Outreach 

For a former employee, it can be extremely powerful to hear directly from a former leader that the company and team wants them back. And, by hearing directly from a manager, the former employee is likely to take the offer seriously and understand that they are specifically who the team and leader want. 

“I had the opportunity to work for our sister company Staff Management | SMX before leaving for another position outside of TrueBlue that allowed me to get specific experience in a different facet of marketing. After gaining valuable experience for a period of time with a different organization, my former leader at Staff Management | SMX reached out to me to discuss an opportunity to join PeopleScout in a new role. I was thrilled to be able to rejoin TrueBlue and put to use the experience I gained outside of the company. Rejoining TrueBlue and joining PeopleScout was an easy decision due to the positive experience that I had during my original time with the organization, as well as due to the ability to work directly for my former leader once again.”  

Sarah Katz Candelario, Vice President of Marketing and Communications 
PeopleScout 

3. Email Campaign 

If your company is looking to fill multiple roles at once, a larger campaign might make the most sense. This can include a list of all high-performing employees who left in the last year and serve as a check-in to see where they are in their career now and whether they’d be interested in taking on a new role in the company. 

Beyond the Boomerang Employee 

While looking to former employees serves as a strong new talent pool, it’s just one part of an organization’s larger rehiring and retention strategy.  

For example, in addition to traditional boomerang employees, the pandemic has also introduced an alternative group of potential employees—those who were furloughed. While these employees didn’t leave voluntarily, they can still be considered for boomerang status and serve as yet another talent pool to reach out to when needs arise. 

But, in order for people to be willing to come back, organizations must ensure that their company is one that people want to return to (or, ideally, one they won’t want to leave at all). This means fostering a welcoming and empowering culture, as well as placing strong emphasis on growth and development of all employees. 

In summary, when people feel valued, included and invested in, they’re less likely to leave your company for another. Then, even when human factors cause them to be pulled away, they’ll be willing and ready to return when the time is right. 

[On-Demand] Hiring in a Candidate Driven Market: Challenge Accepted

Posted on by edyson

Hiring in a Candidate Driven Market: Challenge Accepted

The talent landscape is changing. Fueled by a candidate-driven job market, talent leaders across all industries are searching for skilled candidates available to fill a record number of open positions. Job seekers have the upper hand; they’re more willing to leave jobs for employers they’re unsatisfied with and expect more from companies they apply to. This includes socially responsible practices, competitive wages and quality of life considerations.

So, how can you source and attract the right high-quality talent faster in our candidate-driven market? Join PeopleScout’s Candance Lamon, vice president of global delivery and Jill Polistico, director of client delivery for our on-demand webinar Talking Talent webinar: Challenge Accepted: Tactics and Strategies for Hiring in a Candidate’s Market.

In this webinar, Candace and Jill discuss tactics and strategies for sourcing, engaging and hiring candidates as well as providing best practices for navigating a candidate-driven job market.

This webinar will cover:

  • The current talent market outlook for employers

  • Strategies for improving your employer brand and candidate experience

  • Tips for building a strong company culture to reduce turnover

  • Best practices for structuring talent programs to meet evolving changes in the workplace

  • And more!

Is the Future of Contingent Labor Remote? The Remote Contract Employee Revolution

Posted on by edyson

There is a contract employee revolution right now. The world of work is currently experiencing a profound and lasting transformation in the labor force—one that may determine which organizations remain productive and competitive in the years to come.

At the onset of the pandemic, millions of workers worldwide exited the workforce for a variety of reasons, including illness, health concerns, family caregiving responsibilities and, unfortunately, staff reductions. But now, a new workforce exodus fueled by burnout and workers reevaluating their careers has led to the ongoing Great Resignation as millions of employees resign in record numbers. As a result, talent teams are facing record labor shortages across all industries.

Meanwhile, alongside the rise in remote and freelance work options, organizations are now rethinking where work is performed, who is doing the work, and the composition of their workforces in order to combat turnover and fill critical talent gaps. What’s more, the wide adoption and success of remote work has provided contract employees with evidence that they can now expect more in terms of workplace flexibility, thereby creating ideal conditions for building and managing a robust remote contingent workforce.

In this article, we’ll discuss the drivers that are propelling the remote contract workforce trend; how to manage remote teams of contracted employees; and the opportunities and risks that employers face when hiring non-contingent remote talent.

The Remote Contract Employee Landscape

Prior to the COVID-19 pandemic, demand for skilled contingent talent was already high: In a 2019 survey by Oxford Economics and SAP, 48% of executives reported that their companies could not conduct business without contingent talent, and contingent workers made up nearly one-quarter of their human resources spend. And, although COVID-19 has upended many talent strategies and trends, it’s only increased the demand for contingent talent.

Likewise, according to a 2021 report from the UN’s International Labor Organization, there will continue to be an increased demand for contingent labor post-COVID. What’s more, a Gartner survey found that 32% of organizations were replacing full-time workers with contracted employees as a cost-saving measure. Consequently, with an increased focus on attracting and hiring contingent talent, talent leaders must understand how large-scale shifts and emerging talent drivers are changing how contract employees work, as well as what they expect from employers.

What’s Driving the Rise in Remote Contract Employees?

Contract Employee

The Great Resignation is leading to a rise in the number of skilled professionals who are opting out of traditional work arrangements in favor of freelance opportunities. In fact, according to a recent survey conducted by Qualtrics, one in three workers were considering leaving their jobs, while almost 60% said the pandemic had caused them to completely rethink their careers. Employers have also taken notice and many organizations are engaging with contract employees who have niche expertise or a specific skill set in order to help fill the gap on projects or assignments.

However, with many knowledgeable and skilled professionals hitting the freelance market, the dynamic between employee and employer will likely shift. That’s because many independent contractors think of themselves in more entrepreneurial terms than traditional employees. So, a contractor may view themselves as both a business entity and a worker. This makes sense when you factor in the additional responsibilities that a contract employee may have to navigate, such as tax preparation, securing benefits and other administrative tasks that permanent hires may not have to face.

Plus, with these additional considerations, time is an essential commodity for contract employees who are looking to balance project productivity and necessary business tasks. As such, employees across all classifications are increasing productivity through remote work arrangements. According to a survey by the Becker Friedman Institute for Economics at the University of Chicago, nearly one-third of respondents said they thought they were just as productive working from home as they were in the office. Another 30% of respondents told researchers that they were more productive and engaged working from home. This same research team then calculated that working remotely reduced the commuting time of the 30,000 survey respondents by 62.4 million hours per day—an aggregate time savings of more than 9 billion hours.

Clearly, the amount of time saved and the productivity boost provided by working remotely made contract employees more motivated to seek contracts that allowed for increased flexibility in terms of location. This level of flexibility can also be seen as a benefit for contractors seeking a greater work/life balance.

The Global Effect of Remote Contract Employee Work

Improvements in technology mean that it’s now easier to access talent and work efficiently from almost anywhere—making the future of contract work borderless. Because of this, many organizations have extended their workforce procurement programs internationally.

More precisely, businesses are willing to meet workers where they are and hire them from locations previously considered untenable for logistical reasons. Not only does this expand the available talent pool, but it also extends markets, bringing organizations closer to clients, suppliers and the communities they serve.

Granted, hiring remote contract employees in multiple geographies can be challenging as employers have to navigate significant regulatory complexities to ensure that workers are legally employed, culturally included and professionally supported.

Remote Contingent Employment & Compliance

Worker classification has always been a top concern for organizations leveraging contingent labor. That’s because the penalties and fines associated with misclassifying talent not only affect your bottom line, but can also harm an organization’s reputation among contract workers.

Now, with so many skilled professionals opting for contingent work over traditional employment, properly classifying workers should be a renewed area of focus for employers leveraging contract employees. Even so, organizations may not realize the potential effect that changes to tax codes or new laws may have on their entire workforce—including contingent workers.

In the U.S., for example, there are six federal agencies governing who qualifies as a contracted employee: the IRS, U.S. Department of Justice (DOJ), U.S. Department of Labor (DOL), National Labor Relations Board, Occupational Health and Safety Administration (OSHA), and Wage and Hour Division of DOL. Unfortunately, the lack of continuity among these agencies—as well as the conflicts that arise between state and local laws—make it difficult for employees to keep up. However, resources like the IRS’s independent contractor checklist can help employers better understand the relationship between contractor and employer.

Employers can also engage an MSP provider experienced in navigating the complex compliance and regulatory landscape surrounding contract employment. Specifically, an MSP provider can help an organization build a consistent auditing and classification process across the entire enterprise, as well as become a trusted partner and effective manager of a hybrid workforce.

Contract Employee Compliance in an Increasingly Global World

When engaging an international contract worker, organizations also need to ensure that the contract worker won’t be considered an employee according to their local laws. Each country has its own laws to determine whether someone should be considered an independent contractor. For example, in the UK, employers use the off-payroll working rules (IR35), whereas Serbian employers use the Independence Test to determine employment status.

Managing a Remote Contract Workforce

Employers must also be aware of how to meet the needs of contingent workers, as well as how to create an environment that serves both those workers and the organization’s business needs.

Notably, the leadership skills required for managing remote contractors depend on the specifics of each role, contract term and project scope. Organizations should also be on the lookout for top-performing contractors who have the potential to transition to permanent, full-time roles under the right circumstances.

Integrating a Contract Employee into Your Team

Regardless of the contract length, integrating contractors into an organization’s culture can prove to be a valuable strategy. For instance, in the short-term, ensuring that contractors have direct and seamless access to the right people will aid in your company’s ability to deliver the best project result and productivity. Alternatively, in the longer term, integrating contractors into an organization’s culture can help increase the potential of hiring high-performing workers again in the future, as well as create advocates for the organization.

As such, organizations should clearly articulate the dynamics of the institution and its culture from the beginning stages during the interview process. Then, after the contractor starts, they should reiterate those specifics again during the onboarding process. This will help both the employer and the contractor to determine whether the role is a good fit.

Managing Communication with Contingent Team Members

At the onset of working with each contract employee, make sure to align on communication. In particular, it’s crucial to set expectations on which communication channels are to be used. For example, will the contractor be joining Slack channels? Are team communications more formal or casual? How is confidential information communicated and handled by contractors?

Examples of other communication expectations to set with contract employees include:

  • When do you expect the team to be available?
  • What’s your expectation per channel? Do you avoid text altogether? Are all calls expected to be conducted via video?
  • If a discussion is urgent, what’s the best channel to use?

Of course, disruption and change will inevitably continue as the global economy and talent marketplace recover. Fortunately, one of the best strategies an organization can leverage in order to remain productive and create sustainable future growth is to invest in a more flexible workforce to shore up unexpected skill gaps. Essentially, to find the right balance between in-office and remote talent—as well as between payroll and contingent labor talent—employers must embrace new talent solutions, tools and strategies for the new remote hybrid workforce.

PeopleScout Jobs Report Analysis – March 2022

Posted on by nfuqua

U.S. employers added 431,000 jobs in March, which is slightly less than economists had predicted. It marks 11 straight months with job growth above 400,000. The unemployment fell to 3.6%. Year-over-year wage growth remained high at 5.6%.

march jobs report infographic

The Numbers

431,000: U.S. employers added 431,000 jobs in March.

3.6%: The unemployment rate fell to 3.6%.

5.6%: Wages rose 5.6% over the past year.

The Good

March’s jobs numbers show that the economy remains strong despite challenges domestically and abroad. The unemployment fell to 3.6%, nearing the pre-pandemic low of 3.5%. And while the Wall Street Journal reports that economists had anticipated a gain of 490,000, the numbers for January and February were adjusted upward, accounting for the slight miss. Additionally, the labor force participation rate hit a new pandemic high of 62.4%, and 418,000 new workers joined the labor market, according to MarketWatch. The economy has now regained about 90% of the jobs lost at the height of the pandemic.

The Bad

Wage growth remained high in March, which can be seen as a positive by workers, but as the New York Times reports, it remains a worrying sign for inflation. The Federal Reserve raised interest rates in March, and officials have suggested rates may go up half a percentage point in May. The leisure and hospitality sector has seen the highest wage growth, with an 11.8% increase over the past year.

The Unknown

As CNBC reports, March’s jobs reports comes at a “critical juncture” in the pandemic recovery. There are currently five million more job openings than there are available workers. Inflation is at the highest rate since the mid-1980s. The war in Ukraine has created supply chain issues. Rising rates could dampen the housing market. Economists will continue to watch how all of these factors contribute to the country’s broader economic health in the coming months.  

PeopleScout Jobs Report Analysis—February 2022

Posted on by nfuqua

U.S. employers added an impressive 678,000 jobs in February, in the strongest jobs report since last summer. The unemployment rate fell to 3.8%. Year-over-year wage growth remained high at 5.1%.

jobs report infographic

The Numbers

678,000: Employers added 678,000 jobs to the U.S. economy in February.

3.8%: The unemployment rate fell to 3.8%.

5.1%: Wages rose 5.1% over the past year.

The Good

The headline number of 678,000 new jobs in February beat analyst expectations. Nearly a quarter of those jobs were in the leisure and hospitality sector, which includes the industries most impacted by coronavirus surges. Restaurants alone accounted for 124,000 new jobs, and no industries reported a decline in employment.

Additionally, labor force participation increased to 62.3%, though the number is still far below pre-pandemic numbers. However, the unemployment rate fell to 3.8%, only slightly higher than the 3.5% unemployment rate of February 2020. Though wage growth remains high, the Wall Street Journal reports that it has slowed enough to indicate that the nationwide labor shortage may be easing.

The Bad

There is very little bad news in February’s jobs report, though some challenges caused by the pandemic still remain. As the New York Times reports, the economy still has about 2 million fewer jobs it did before the pandemic, and the labor force is still about 3 million workers smaller.

The Unknown

February’s jobs numbers were collected before the Russian invasion of Ukraine, so they do not reflect any impact of the conflict. MarketWatch reports that the invasion is likely to worsen inflation. According to the New York Times, the U.S. will likely see less financial impact than Europe, but there will be repercussions that can be difficult to predict. Though experts do say that Americans are likely to see higher oil prices, which could curb household spending.

PeopleScout Jobs Report Analysis – January 2022

Posted on by nfuqua

U.S. employers added 467,000 jobs in January, beating analyst expectations despite the surge in COVID-19 cases. The unemployment rate rose slightly to 4%. Year-over-year wage growth remained high at 5.7%.

January jobs report infographic

The Numbers

467,000: Employers added 467,000 jobs in January.

4%: The unemployment rate rose slightly to 4%.

5.7%: Wages rose 5.7% over the past year.

The Good

Despite record numbers of COVID-19 cases across the country, employers beat analyst expectations to add 467,000 jobs to the U.S. economy in the first month of 2022. Additionally, the jobs numbers for November and December were revised up 700,000 over what was initially reported. According to MarketWatch, some experts had predicted an increase of only 150,000, while others had even expected a decrease in employment. Even the slight increase in the unemployment rate is good news, as it indicates more workers sidelined during the pandemic have reentered the labor market.

The Bad

There weren’t many downsides to January’s report. However, there may have been some impact due to the Omicron variant. The Wall Street Journal reports that nearly 2 million workers were prevented from looking for a job in January because of the pandemic. Additionally, 7.8 million said they missed some work because of Omicron.

The Unknown

Looking ahead to the rest of 2022, economists will be watching some factors still holding back the economy, according to the New York Times. Supply chain bottlenecks, labor shortages and high inflation have left Americans frustrated despite the fact that the unemployment rate has fallen faster than many experts predicted. Additionally, the strong recovery makes it likely that the Federal Reserve will raise interests rates in March, with traders predicting a half-point increase. Finally, employers and workers will be closely watching wages. Over the past year, wages have increased an average of 5.7%. While increasing wages are drawing more workers back into the labor market, they pose a challenge for employers.

DE&I Insights for Talent Acquisition Leaders

Posted on by nfuqua

Getting inclusivity and diversity right for talent acquisition teams means properly sourcing, interviewing and hiring candidates from underrepresented groups. What’s more, talent teams must understand not only where different candidates search for jobs, but also the factors important to those candidates.

To that end, a PeopleScout survey of job candidates focuses on inclusion and diversity, found important differences in how diverse groups find, research and apply for jobs, and employers can use these insights to make their recruitment process more equitable and inclusive. The survey focused on job candidates throughout the U.S. from a wide variety of backgrounds. However, due to the relatively small sample size, these survey results should be taken as purely directional. Below, we share the most important insights.

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Inclusivity and Diversity: Candidates From Underrepresented Groups Find & Research Jobs Differently

Racial and ethnic minority candidates are more likely to hear about a job opportunity through word of mouth than white candidates. More precisely, nearly half of Black or African American candidates report learning about their most recent job through word of mouth, while only 35% of white candidates found their most recent job in the same way.

inclusion and diversity

Black or African American candidates are also the most likely group to research an employer or job opportunity by talking to people in their communities—at more than double the rate of white candidates.

inclusivity and diversity

Inclusivity and Diversity: What This Means for Talent Acquisition

Your current employees from underrepresented backgrounds are important partners in sourcing and recruiting diverse talent; they understand your culture and values and can share both job openings and their experience at your organization with other candidates.

Women Rely on a Larger Range of Sources When Researching Employers

Notably, women in the workplace are more likely than men to research an employer through third-party channels, whereas men are more likely to rely on your careers site. For instance, while half of men report researching an employer through the employer’s careers site, only one-third of women do the same. Women are also twice as likely as men to use employer review sites, like Glassdoor.

de&i metrics

What This Means for Talent Acquisition

Many candidates rely on your careers site for research. As such, your careers site should showcase your employer brand, but it cannot be your sole focus. Instead, also invest in improving your employer brand through employer review sites, like Glassdoor. Additionally, encourage your employees to share their positive experiences of working at your organization on social media sites, like LinkedIn.

Candidates Notice Your Diversity Efforts

Your diversity efforts can be a difference-maker for job candidates. In fact,  underrepresented groups are more likely to say that an employer’s diversity efforts make a difference in whether they decide to apply for a role. White candidates are also paying attention.

de&i goals

The way you showcase diversity efforts also makes a difference to candidates, with the biggest gap between white and Black or African American candidates. For instance, when asked about the factors that candidates consider when applying to a job, Black or African American candidates were five times as likely as white candidates to consider your diversity efforts. Black or African American candidates were also more than four times as likely to consider whether your careers site features “people who look like me.”

inclusivity and diversity

What This Means for Talent Acquisition

Your diversity efforts are important to your candidates; they want to hear about what your organization is doing to improve diversity, equity and inclusion at your organization. And, in a competitive talent market, it’s important to feature those commitments, as they could be the deciding factor for candidates.

PeopleScout Jobs Report Analysis – December 2021

Posted on by nfuqua

U.S. employers added 199,000 jobs in December, missing analyst expectations and providing mixed signals about the state of the economy. The unemployment rate fell to 3.9%. Year-over-year wage growth remained high at 4.7%.

Jobs report infograhic

The Numbers

199,000: The U.S. economy added 199,000 jobs in December.

3.9%: The unemployment rate fell to 3.9%.

4.7%: Wages rose 4.7% over the past year.

The Good

While the headline of 199,000 jobs added in December is disappointing, other numbers in December’s jobs report point to good news. The unemployment rate fell to 3.9% faster than the Federal Reserve had predicted. Additionally, the New York Times reports that the labor participation rate rose to 61.9% in November and December, the highest rate since the pandemic started.

Additionally, the U.S. economy added 6.4 million jobs in 2021, the highest yearly increase on record.

The Bad

As MarketWatch reports, December’s increase in employment was less than half of what analysts had projected. Experts say the lower numbers were caused, in part, by the tight job market. To compete for workers, employers have raised wages significantly over the past year, with year-over-year wage growth hitting 4.7% overall, though some sectors, like leisure and hospitality, have seen even larger increases. Because December’s numbers are based off the first two weeks of the month, before the latest COVID-19 surge began, the Omicron variant likely only had a small role in the month’s numbers.

The Unknown

Looking ahead to 2022, the Wall Street Journal reports that workers continue to quit their jobs at record rates, and experts predict a potential disruption caused by the surging Omicron cases followed by a strong year of job creation. Economists say that while businesses have gotten better at responding to waves of COVID-19 cases, Omicron has caused millions of sick workers to quarantine. The resulting labor shortage has already led to canceled flights and temporarily closed restaurants. However, as demonstrated by a rapid drop-off in cases in South Africa, Omicron is expected to cause only a short-term disruption.

Leveraging an Effective Hybrid Hiring Strategy for the New World of Work

Posted on by jpatel

Now more than ever, an organization’s hiring strategy should be adaptable. Throughout the last two years, many employers have had to reimagine their recruitment processes. Due to the pandemic, organizations rapidly moved recruiting processes to virtual models, shifting in-person interviews to digital and transitioning traditional office roles to remote.

Today, as businesses bounce back and job openings are at record highs, employers need to hire top talent—and fast. And, just as a hybrid approach to in-person and remote work for employees has become the norm, so, too, will the need for a blended recruiting strategy that will optimize the candidate experience advantages of in-person, while also continuing to leverage the benefits of virtual.

So, in this article, we’ll walk through what a hybrid hiring strategy is, discuss the benefits of in-person versus virtual techniques and provide tips for how to create a hybrid hiring strategy that works for your organization.

What is a Hybrid Hiring Strategy?

Hybrid hiring—or hybrid recruiting—is a strategy that allows organizations to maximize the benefits of both in-person and virtual hiring techniques. Specifically, a hybrid approach allows employers to leverage the advantages of virtual recruiting where it makes sense, while simultaneously using strategic, in-person methods to add value to the candidate experience along the way.

Granted, hybrid hiring isn’t new; many organizations employed a mix of virtual and in-person techniques prior to 2020. However, COVID-19 rapidly accelerated the need for safe, efficient hiring models, thereby leading to greater adoption of virtual strategies. Now, because employers have seen the advantages of virtual recruiting, the benefits of a hybrid model have become clear. Depending on the type of role you’re hiring for, having a strong hybrid hiring model in place makes it easy to recruit staff 100% virtually if and when it’s needed, or with a blended approach.

hiring strategy
Source: Workest by Zenefits

Benefits of a Hybrid Hiring Strategy

Leveraging a hybrid hiring strategy means you get the best of both worlds. But, what does that entail? Here are some of the biggest benefits of both virtual and in-person hiring techniques—and how they’ll play out post-pandemic.

Benefits of Virtual Hiring Techniques

Reduced Cost & Greater Efficiency

When you remove the physical component of recruiting, you see a greatly improved speed-to-hire and an overall reduction in costs. For example, PeopleScout helped this retail client reduce time-to-hire by more than 20% by implementing a mobile-first, shortened application process. Plus, expenses that would normally be spent on hosting recruiting events—such as travel costs, venue fees and printed materials—suddenly drop to zero. Additionally, your employees save time by hosting events remotely and also reap the benefit of having more candidates in attendance.

Expanded Reach & Reduced Bias

With travel out of the equation and with remote job options in place, employers can then expand the geographies from which they source talent. This offers greater opportunities for candidates and also opens up the candidate pool to top talent who may not have been on your radar previously.

Virtual hiring also reduces the amount of hiring bias experienced during in-person interviews. As humans, we judge people on many things (unconsciously or not), including how a candidate may look. But, with virtual interviews, recruiters are able to focus less on a candidate’s appearance and more on what they have to say.

According to the American Psychological Association, when it comes to height, every inch counts—in fact, in the workplace, each inch above average may be worth $789 more per year. This is the kind of bias that can be eliminated with virtual interviewing techniques.

Overall Convenience

Virtual interviews and other virtual recruiting tactics are convenient for both candidates and recruiters alike. For example, candidates can schedule on-demand interviews at a time that is most convenient for them, and recruiters can watch those recordings at their own convenience. What’s more, through the use of artificial intelligence (AI) and automation, candidates can also self-schedule follow-up interviews, ask questions and receive real-time responses that would have previously taken much longer without the technology that has come from the rise of virtual.

Benefits of In-Person Hiring Techniques

Showcase Your Company Culture

One challenge of virtual recruiting is the ability to effectively showcase your company’s culture. While there are certainly ways to do so, nothing quite compares to experiencing how individuals in an organization interact with one another in-person. Especially for roles that are required to work in an in-person or office setting, providing a time to come in for an in-person interview or assessment can be a great way to show your candidate what it would really be like to work for your company on a day-to-day basis.

Human Touch

While AI and automated tools help with efficiency, improve candidate experience, and speed up the overall time-to-hire, today’s talent pool can also find benefits from a blended model. In fact, candidates today are feeling more confident, in general, and more comfortable negotiating their salary when meeting face-to-face. A phone call and video interview can get the candidate in the door, but an in-person conversation can seal the deal—especially when it comes to hiring senior talent who would really appreciate being brought in for the final stages of the interview process.

how to recruit people
Source: Workest by Zenefits

Added Value

Furthermore, utilizing in-person techniques can also add value to the candidate experience overall. From office tours to final interviews, it’s difficult to recreate human touch and company culture completely virtually. To that end, where it makes sense, in-person meetings can help sell a candidate on why they should work for your organization, as opposed to the competition.

How to Recruit People Now: Balancing Your Post-Pandemic Hybrid Hiring Strategy

Types of recruitment

Your hybrid hiring strategy will likely depend on your organization’s needs and what your workforce will look like on the other side of the pandemic.

For example, if some or all of your teams will work entirely remotely, it would make the most logical sense to complete the entire recruiting process virtually. Inevitably, bringing the candidate in for an in-person interview or office tour would waste time and money, and would likely confuse the candidate and, therefore, lead to a poor candidate experience. Instead, recruiting for these roles completely virtually and providing opportunities for human interaction and culture along the way can help candidates feel like they know what it will be like to work remotely for your company.

“How do we show candidates our company culture when we can’t invite them to the office? We send personalized, handwritten cards to candidates before their start date (as well as some swag!). We want to give them a feeling of being really welcomed into the company—which is what we’re really about.”

Ewa Zajac, Recruiting Operations Manager at Zendesk

On the other hand, if some of your teams will be working both from home and from the office, a hybrid approach would be the best fit. Virtual options save a lot of time and money in the beginning stages of sourcing, screening and interviewing, and candidates will want the flexibility to complete those initial interviews and assessments from the comfort and convenience of their own homes.

Then, when it comes to final interviews with candidates you’re very excited about, bringing them in for an in-person interview can be the final step before extending an offer. The candidate will appreciate the time you’re investing to bring them in, and they’ll get a taste of what it will be like when they work in-person. This will be especially important for roles that will be primarily in the office or in which relocation is necessary.

In the end, hybrid hiring won’t be a one-size-fits-all strategy. Whether your organization opts to keep recruiting fully virtual or works in opportunities for in-person techniques, the candidate experience will need to remain at the forefront of any model. Think about what candidates will want and how the recruiting process will make the most sense for the role you’re trying to fill.