DE&I Insights for Talent Acquisition Leaders

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

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

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.

How to Expand Your Talent Pool with Workers Changing Careers

Talent pools are important. However, expanding your talent pool amid turbulent times can be difficult. As businesses navigate reopening and hiring amid the surge of the Delta variant of COVID-19, many are struggling to fill their open roles with the talent they need: According to a survey by Willis Towers Watson, 73% of companies are having difficulty attracting employees, and 70% expect that their current challenges to hire and keep workers will linger into 2022.

Notably, the same survey found that these hiring challenges are caused by a variety of different factors, which vary based on industry and position type. For example, for hospitality, restaurant, warehouse and distribution employees, postponing their return to work and collecting unemployment when it was offered was the most commonly cited reason for difficulties in attracting staff. And, even when those extended unemployment benefits ended, hiring did not surge. Meanwhile, virtual employees present challenges based on high wage expectations, and other professionals are holding out for companies with work-from-anywhere policies.

At the same time, millions of workers are also planning to change careers: Data released by Monster showed that 95% of workers surveyed said they were considering changing jobs, while 92% said they were willing to switch industries to do so. Therefore, if your organization is struggling to fill open positions, developing a program to attract and reskill workers who are changing careers could significantly expand your talent pool.

In this article, we’ll explain why people are choosing to change careers, share common skills you should look out for in your talent pool expansion, and provide suggestions for how to create a reskilling program that will work for your organization.

How the Talent Pool is Evolving: Why Are Workers Changing Careers?

As a result of the pandemic and the tragic losses that came with it, people were faced with a reminder that every day is not guaranteed. This realization caused many to rethink their life choices and shift to prioritize their health, loved ones, hobbies and the things they truly enjoy. For many, this included rethinking their career path and goals—including exploring job opportunities that they’re truly passionate about so that they could make every day count.

what is a talent pool
Source: Prudential

As an employer, you can capitalize on this migration by offering competitive employment packages complete with work/life balance and promoting those benefits via recruitment marketing techniques. More precisely, beyond compensation and flexible work arrangements, show candidates how you will challenge them and help them grow in their career.

Building a Talent Pool: Identifying Transferable Skills in Workers Changing Careers

When searching for talent, you might not consider looking in certain industries or job types because you’re unsure whether the skills developed in those roles will match up with what you need for your business. However, 53% of workers said they’d switch to an entirely new industry if they could retrain.

Fortunately, you don’t need to start from scratch when hiring people who have chosen to change career paths. Instead, focus on attracting candidates who have strong transferable skills across industries.

Transferable skills, also known as “portable skills,” are qualities that can be transferred from one job to another. Transferable skills can be used to position your past experience when applying for a new job—especially if it’s in a different industry. (Source: Indeed)

Furthermore, when you find candidates with certain transferrable skills, you won’t have to worry about training them on those. And, because many transferrable skills are soft skills, the candidate will be more malleable and will integrate well into a new job. In particular, they’ll be able to start working faster and will be more productive from the beginning. As a result, your training time can be focused on knowledge specific to your organization and the role.

Consider looking for these common transferrable skills when expanding your talent pool beyond your industry:

Problem-Solving

Workers who can demonstrate strong problem-solving skills in their previous roles will likely be able to apply that same mentality on the job at your organization. Specifically, employees with problem-solving skills will be able to identify problems, find what is causing the problem and seek out potential solutions—without you having to nudge them.

Teamwork

If the role you’re hiring for requires a lot of collaboration between team members, look for candidates who have experience working toward a common goal with others. Teamwork also encompasses several other skills, such as empathy, active listening and communication.

Communication

Communication is perhaps the most common transferable skill across all industries and job types because it’s required in almost every role. Workers with effective communication skills will be able to clearly share ideas and information both verbally and in writing; know when to ask questions; read body language; and communicate with others in a wide range of settings.

Leadership

While leadership skills are especially vital for leadership roles, such as managers and above, they’re also important for people to possess across the organization. That’s because leadership skills contribute to an employee’s ability to take the lead, get a team on the same page, delegate when needed and see a project through to completion.

Adaptability

Workers who are adaptable and flexible will be able to adjust as deadlines, teams or processes change. They’ll be able to pivot and learn new skills when needed, while also maintaining a positive attitude and ensuring goals are still met.

Technology Literacy

If you don’t want to teach your next hire the basics, look for candidates who have experience working with common business tools and technologies that will easily integrate into your business function. Similarly, if your organization is embracing more digital tools, it’s also important that your candidate is comfortable learning new technologies and software to improve efficiency and evolve with your organization.

While the list above highlights some key transferable skills, there are numerous others that might fit into your organization and the roles you’re looking to fill. Check out this list from FlexJobs for more.

Building a Reskilling Program for Workers Changing Careers

Attracting and hiring candidates with transferable skills will allow you to skip basic training on those qualities. However, because many of these hires will be coming from different industries, you’ll likely still need to provide some reskilling training for non-transferable skills to help them adjust to the new role.

Plus, employees expect training to come from employers. In a survey from Prudential, when asked who was most responsible for helping them develop the skills they need (aside from themselves), workers most often ranked employers as number one (33%). Likewise, when asked about the top ways that employers can support workers’ learning, workers most often said flexible schedules (78%), followed by employee-offered training (71%) and on-demand courses (71%).

But, what type of training will work for your organization? Well, that depends on what types of roles you’re looking to fill. According to a report by CompTIA, candidates have different preferences regarding training methods based on the type of job they’re seeking.

talent pool

Consider these three steps to help you build an effective reskilling program:

1. Identify Skills Gaps

When hiring candidates from different industries, there’s no doubt that they’ll require some additional skills training to be able to be successful in the new role. So, identify what those key skills are so you can build your training program from there. Then, rather than spending time on transferable skills you already know your candidate possesses, focus on skills unique to the job and your organization, instead.

2. Develop Specific Skills Trainings

Once you’ve identified the key areas that will need to be covered, develop trainings specific to those needs. These trainings should encompass a variety of reskilling methods to fit the individual needs of your new hires, including:

a. On-the-job training: Employees can take on small projects and learn from real-world experience.

b. Online learning: Virtual courses can be taken at any time and are a great way to speed up the learning process. They provide a lot of content in a digestible form that anyone can grasp.

c. Blended learning: Combine online courses with in-person training to maximize the benefits of both. Employees can engage with instructors in person and come equipped with knowledge and questions from online training.

d. Peer learning: Employees can learn from one another through collaboration and job shadowing. By observing what someone’s day looks like, employees will get a good sense of what will be expected of them day-to-day.

3. Measure Success

Leverage surveys, discussions, post-training assessments and candid feedback from trainees regarding the value they found from the reskilling trainings. Do they feel like they’ve learned something new? Do they have the knowledge to put new skills to use? Are they implementing what they’ve learned on the job? Once you find out, revaluate and improve your training program regularly based on the strengths and weaknesses that employees identify.

Marketing Your Reskilling Program to Your Expanded Talent Pool

Now that you’ve assessed the transferable skills to watch for and developed a reskilling program for workers who are changing careers, it’s important to make that program known to these workers: Utilize recruitment marketing techniques on social media to promote your roles and share that your organization is offering reskilling to employees from a variety of industries. In job ads, highlight the fact that hires will be provided with reskilling training to ensure they’re successful in their new role. This—in conjunction with a strong employment offer and benefits—will help your business stand out above others in the competitive search for top talent.

PeopleScout Jobs Report Analysis – November 2021

U.S. employers added 210,000 jobs in November, missing analyst expectations and providing mixed signals about the state of the economy. The unemployment rate fell to 4.2%. Year-over-year wage growth remained high at 4.8%. 

peoplescout jobs report infograhpic

The Numbers 

210,000: The U.S. economy added 210,000 jobs in November. 

4.2%: The unemployment rate fell to 4.2%. 

4.8%: Wages rose 4.8% over the past year.  

The Good  

November’s jobs report is confusing, but there is good news. The labor participation rate, which has been largely flat, ticked up in November to 61.8%, the healthiest number since the pandemic began. As the New York Times reports, there was a large increase in labor force participation by both Hispanic men and Hispanic women, some of the hardest hit demographics. Additionally, the unemployment rate fell to 4.2%, despite the relatively weak jobs numbers. 

The Bad  

The headline number of 210,000 jobs significantly missed analyst expectations. As MarketWatch reports, economists had predicted a gain of 573,000 new jobs. The retail sector lost jobs, while the leisure and hospitality sector, which has led job growth in recent reports, showed a gain of only 23,000. Despite the strong growth in 2021, the economy still remains 4 million jobs short of pre-pandemic levels. Additionally, rising wages still point to a labor shortage, as wages in labor and hospitality soared 11.8% over the past year. 

The Unknown 

What makes November’s jobs report so confusing is the survey data used to come up with the 210,000 number. The Labor Department relies on two separate surveys to make those estimates, one of employers and another polling households. In November, employers reported 210,000 new jobs, but households reported that 1.1 million more people were working than the month before. Experts quoted in the New York Times say a gap that large is unprecedented, and it provides a much cloudier picture about the health of the economy.   

Supporting Service Members with Career Counseling for a Major Retail Chain

Supporting Service Members with Career Counseling for a Major Retail Chain

Supporting Service Members with Career Counseling for a Major Retail Chain

A major multinational retail chain partnered with PeopleScout to support its counseling program for transitioning members of the military, veterans, military spouses, and National Guard and Reserves who are looking to take the next step in their career.

Dedicated career coaches for all program participants

Customizable career paths for participants 

Virtual intake meetings and ongoing calls

Situation

This retailer has partnered with PeopleScout since 2013 to support its veteran hiring initiatives. In 2013 when the program launched, veteran unemployment was higher than civilian unemployment. PeopleScout supported the client with direct placement, helping veterans honorably discharged on or after Memorial Day 2013 to find jobs at the retailer. The spouse component was added in 2018.

In 2019, while the veteran unemployment rate had dropped to just under 3%, the retailer was aware of the challenges that military service members were still facing when transitioning to civilian employment. The client wanted to reinvent the program to put an emphasis on career coaching and counseling for all service members to help them apply their leadership skills and teamwork experience to new careers.

Solution

The new program, which officially launched in May 2021, broadens the umbrella of the program to include veterans of any era and actively serving members of all branches of the military, military spouses, and National Guard and Reserves as well. It connects program participants to a plethora of resources from various organizations that have been vetted by the client.

When a new member registers for the program, PeopleScout assigns them a coach who helps facilitate the transition into civilian work. The PeopleScout coach schedules a virtual coaching session with the participant to perform an initial intake. This intake assesses skills, helps identify goals and determines the time commitment they can make to the program.

From there, participants confirm three paths: employment, education, or entrepreneurship.

EMPLOYMENT

PeopleScout career counselors help participants assess their strengths, build their resume and translate their military experience in a way that it applies to the civilian workplace. They also help service members and spouses find opportunities that match their career goals—whether that means employment with the retail client or another organization.

EDUCATION

PeopleScout coaches help participants get the educational foundation they need to reach their overall career goals.

ENTREPRENEURSHIP

PeopleScout helps connect participants with the right resources to start their own businesses.

This emphasis on career counseling allows the participant to drive the program at their own pace and use their coach as much or as little as they like. Service members and spouses can take what they want from the program as they build their future.

Results

  • 3,500+ registrants since program launch

At a Glance

  • COMPANY: Multinational retailer
  • PEOPLESCOUT SOLUTIONS: Recruitment Process Outsourcing, Talent Advisory
  • ABOUT THE RETAILER: This U.S.-based retailer operates in 24 countries with 2.3 million employees. The organization has a rich history of supporting and hiring veterans and their spouses.

PeopleScout Compliance Alert: Marijuana Testing

While marijuana is still illegal at the federal level, states continue to legalize the substance for both medical and recreational uses. Medical use is legal in 36 states, while 18 states now have legalized recreational cannabis. Now, some states and local governments have passed laws implementing restrictions or limitations on drug testing for marijuana.

Those jurisdictions include:

  1. Boulder, Colorado
  2. Connecticut
  3. District of Columbia
  4. Nevada
  5. New Jersey
  6. New York
  7. Philadelphia, Pennsylvania
  8. San Francisco, California
  9. Rhode Island
  10. Vermont

Employers that operate in any of these areas should consult with an attorney about the specifics of each local requirement. For example, in New York, the law prohibits employment discrimination against people who lawfully use recreational marijuana off duty, and in New Jersey, employers cannot take adverse employment actions based “solely” on a positive marijuana test. Depending on the specific jurisdiction, there may be financial penalties for failing to comply.

Additionally, you may trigger other employment when evaluating workplace marijuana issues, such as discrimination and disability accommodation laws.

However, as marijuana remains illegal federally, state laws generally contain exceptions for employers regulated by federal law. There are also generally protections for “safety-sensitive” jobs like truck drivers or forklift operators. On-the-job use or possession of marijuana is not allowed in any jurisdiction, nor is impairment or working under the influence of marijuana.

Because of the growing popularity of these laws and a tight labor market, many employers have stopped testing for marijuana, according to Bloomberg Law. In one high profile case, Amazon announced that the company would stop testing workers for marijuana, citing the complex patchwork of state and local laws. Business Insider also reports that company officials have also tied the decision to the labor shortage, with Amazon senior VP of human resources Beth Galetti saying, “Eliminating pre-employment testing for cannabis allows us to expand our applicant pool.”

PeopleScout Jobs Report Analysis – October 2021

The U.S. economy gained a strong 531,000 jobs in October, beating analyst expectations. The leisure and hospitality sector led with 164,000 new jobs. The unemployment rate fell to 4.6%. Year-over-year wage growth remained high at 4.9%.

Jobs report infographic

The Numbers

531,000: The U.S. economy added 531,000 jobs in October.

4.6%: The unemployment rate fell to 4.6%.

4.9%: Wages grew 4.9% over the past year.

The Good

October’s jobs report is full of good news. The 531,000 jobs added to the economy – the largest increase since July–beat analyst expectations, and the gains were spread across a wide variety of sectors. The government was the only sector that saw a decrease in jobs. The New York Times noted that with this report, the economy shows signs of normalizing.

The unemployment rate also fell to 4.6%, something that analysts hadn’t predicted would happen until the end of 2021. Other data shows that anxiety over the pandemic and the surge of the Delta variant has been decreasing. The percentage of people working from home because of COVID-19 fell to 11.6% during the month of October, the lowest number since the start of the pandemic.

The Bad

The one disappointing number in October’s report is that the overall labor participation rate remained flat, which means the strong job growth was not enough to bring sidelined workers back into the job market. On the other hand, The Wall Street Journal reports that 180,000 women did enter the workforce in October. Women were more severely impacted by the pandemic, and October’s increase represents modest progress—even though it was not enough to move the overall number.

The Unknown

Economists are watching to see what will bring more workers back into the job market. As MarketWatch reports, the labor participation rate is near its lowest level since the early 1970s. Business have been raising wages to try to attract more workers, and October’s 4.9% year-over-year wage growth represents the highest growth since tracking started in 2006.

Experts had also hoped the end of unemployment benefits in September and the start of the 2021-2022 school year would bring more workers back, but so far progress has been slow.

Hispanic and Latinx Diversity and Inclusion in the Workplace

At PeopleScout, we are committed to providing you with information to help guide you on your DE&I journey. We aim to cover a wide range of DE&I topics, including issues regarding BIPOC, the LGBTQ+ community, gender gaps, people with disabilities and more. This article is the next in our library of DE&I resources, and specifically focuses on the Hispanic and Latinx community. 

In the U.S., National Hispanic Heritage Month is observed from September 15 to October 15 to honor the cultures and contributions of both Hispanic and Latinx Americans by celebrating the histories, cultures and contributions of American citizens whose ancestors came from Spain, Mexico, the Caribbean and Central and South America. 

And it’s no doubt their contributions have been great—especially in the workforce and to the economy. Consider the impact this group has had and will continue to have in the future: 

The Current and Future Workforce 
Hispanics are the nation’s second-fastest-growing racial or ethnic group in the U.S., making up 18% of the population in 2019, up from 16% in 2010 and just 5% in 1970. Nearly 60% of U.S. Latinos are Millennials or younger. 

Creators of Jobs 
Within the last decade, 86% of all new businesses in the U.S. have been launched by U.S. Latinos, with Latinas creating business six times faster than any other group. 

Increasingly Educated 
Over the past decade, the Hispanic high school dropout rate has dropped dramatically while college enrollment has increased, with about 41% of U.S. Hispanic adults ages 25 and older having at least some college experience in 2018

Yet, organizations still lack Hispanic representation across all seniority levels. People of Hispanic or Latinx ethnicity make up 18% of the labor force but only 4.3% of executive positions in the U.S., making the gap between the labor force and executive representation wider among Hispanics than any other group. 

So how can organizations do their part in closing this gap? Employers should make conscious efforts to attract and retain this diverse group of talent and provide them with opportunities for growth and development. 

Understanding the Many Names of this Diverse Group  

Before you can effectively attract candidates from Hispanic and Latinx backgrounds, it’s important to understand the terminology that identifies this unique group.  

According to Pew Research Center, “the terms ‘Hispanic’ and ‘Latino’ are pan-ethnic terms meant to describe—and summarize—the population of people living in the U.S. of that ethnic background.” 

Some have drawn distinctions between the two terms, and their widely used definitions can be summarized as the following: 

Hispanic: A person residing in the U.S. with descent from Spanish-speaking countries (this excludes Brazil, where Portuguese is the official language). 

Latino: A person of Latin American descent residing in the U.S. (this includes Brazil but excludes Spain). 

However, this group has mixed views on how they prefer to describe their identity, with over half describing themselves by their country of origin.

In recent years, a new term has emerged as an alternative to Hispanic and Latino: Latinx. The term is one of many in the global movement around gender-neutral language. Latinx serves as a gender-neutral alternative to Latino and Latina and aims to encompass Latin American and Hispanic people from all racial backgrounds while also including those who identify as transgender, queer, agender, non-binary, gender non-conforming or gender fluid. 

According to trend data from Google, the term first appeared online in 2004, but didn’t begin to gain momentum and wider usage until 2014. Today, it sees use around the world, most often in the U.S.  

And much like the terms ‘Hispanic’ and ‘Latino’, surveys also reveal mixed feelings on ‘Latinx’ among the population it is meant to represent. Younger people, ages 18-29, are most likely to have heard of and use the term, while older people 65 and up are least likely. Specifically, use is the highest among young Hispanic women—14% say they use it, compared to the 1% of Hispanic men in the same age range. Here are other factors that impact how likely a U.S. Hispanic person is to have heard of Latinx and use the term: 

Whether the term Latinx should be adopted as a pan-ethnic term for the U.S. Hispanic and Latino population is still up for debate, with one third of those who have heard the term believing it should be used more broadly, according to data from the Pew Research Center
 
Like many scholars, journalists, activists and publications, PeopleScout will opt to use the term for the remainder of this article in an attempt to better include the many groups of people who make up the Latinx population. 

Strategies to Recruit and Retain Hispanic and Latinx Candidates 

If your organization is committed to improving its diversity, equity and inclusion practices, Latinx employees are a vital group to include in this initiative. Latinx individuals come from a wide variety of backgrounds, making the group extremely diverse in culture within itself. By including people from this group across your organization and in executive positions, your business will be better equipped to evolve and innovate as time goes on. Consider these strategies for recruiting and retaining Latinx candidates. 

Recruit with Intention 
Employers need to be intentional in improving representation of Latinx employees in leadership and across the workforce. Make it a point to recruit from industries and universities that are highly diverse

“If you do not have intentionality with diversity and inclusion, you have nothing.” – Cid Wilson, President and CEO of the Hispanic Association on Corporate Responsibility (via Invariant) 

Utilize Employee Testimonials 
Show candidates that your organization is home to diverse talent by showcasing those employees in your recruitment marketing tactics. You can share their experiences working for your organization through quotes, videos, personal stories or recruiting case studies. It is especially important to highlight diverse talent from all levels of your business. 

Expand Your Search 
When possible, it can be beneficial to expand your talent search nationwide, or even internationally as your organization allows. With the immense rise in remote work since the onset of the pandemic, many Latinx candidates will be looking to organizations with remote and flexible work options as they make the next move in their careers. Or, if your business requires in-person work, a competitive offer might have that top talent considering relocating for the position. 

Leverage Employee Networks 
Look to your existing Latinx employees, as well as all employees, for diverse referrals. In addition, you should seek input from these employees on how to attract candidates with similar backgrounds, as well as hear their ideas for organizational change and goals. In other words, empower them to have a voice. 

Provide Mentorship 
Even if your organization is highly diverse, any member of a minority group might feel excluded at times. By providing opportunities for mentorship both with individuals of the same background as well as those with different backgrounds, employees will feel more included. Encourage mentors to help employees meet their professional goals so they can grow within the organization. 

How to Support Your Hispanic and Latinx Employees 

Recruiting Latinx employees is the first step in improving diversity in your organization. The next is focusing on ways to make those employees feel supported and included.  

For example, at PeopleScout and the broader TrueBlue organization, we have the Hispanic Opportunity & Latin Awareness (HOLA) employee resource group to embrace and support our Latinx employees and 
associates within the communities we serve. HOLA aims to increase cultural competency and awareness around Latinx issues and concerns throughout TrueBlue, support TrueBlue’s efforts to attract and retain the best Latinx talent and provide the development and support necessary for Latinx employees to grow both personally and professionally. 

Here are examples of other companies with impressive initiatives to support their Latinx employees: 

Coca-Cola 
Coca-Cola’s “Hispanic Leadership Business Resource Group” offers its Hispanic and Latinx employees development, networking, community involvement opportunities and helps the company drive innovative business ideas. In 2017, the group had an idea for a Point-of-Sale Spanish Adaptation Tool which allowed bilingual employees to submit their interpretation of Coca-Cola taglines and phrases in different Spanish dialects to avoid the phrases losing their meaning through literal translations.  

Furthermore, the company showed their commitment to Hispanic and Latinx employees when there was uncertainty about Dreamers in the U.S. by covering the $500 DACA renewal fees for employees in the program. 

Ellucian 
Ellucian, a software and solutions development company for higher education, gave employees a sense of belonging by celebrating their heritage. The company planned volunteer events, office potlucks celebrating Latinx and Hispanic culture, highlights of influential Hispanic Americans, and an Instagram takeover for Latinx employees to share their experiences working at Ellucian. The first takeover on the company’s Instagram account came from the leader of ¡wepa!, the company’s Latinx ERG. 
 
General Motors 
General Motors, a vehicle manufacturing company, supports Hispanic employees from the very beginning by specifically targeting professional Hispanic organizations and Hispanic Serving Institutions as part of their recruiting strategy. The company focuses on raising the number of Hispanic professionals in STEM through their recruiting efforts and by providing over $5 million in scholarships for Hispanic STEM students. 

Leidos 
When the defense, aviation, IT, and biomedical research company discovered that the Hispanic and Latinx community was being disproportionately impacted by COVID-19 nationwide, they made it their priority to help. Leido’s Latinx ERG partnered with the Mayor’s Office on Latino Affairs in Washington, D.C. and Neighborhood Health in Alexandria, VA to donate more than 6,000 face masks and 1,500 bottles of hand sanitizer to help combat the spread of COVID-19 within Latinx communities in those areas. 

You can find more examples of companies who prioritize their Hispanic and Latinx employees here

Hispanic and Latinx Inclusion in the New World of Work 

The new world of work is not just about where and how work is done, but it’s about the people who are doing the work. It’s a candidate’s market, and people will choose employers who care about their employees as people. In order to be truly successful, organizations must fully understand their workforce, starting with their employees’ diverse backgrounds and identities.  

By understanding your underrepresented groups of people, like Hispanic and Latinx employees, consciously recruiting them, celebrating their heritage and investing in their growth, we’ll work our way toward a workforce with equal representation and strong inclusion of diverse groups across industries and at all levels of seniority. 

PeopleScout Jobs Report Analysis – September 2021

The U.S. economy gained a disappointing 194,000 jobs in September, missing analyst expectations. The lower numbers were due, in part, to a significant drop in government employment, while private employers grew. The unemployment rate fell to 4.8% as more workers exited the labor force. Year-over-year wage growth was at 4.5%.

Peoplescout jobs report infographic

The Numbers

194,000: The U.S. economy added 194,000 jobs in September.

4.8%: The unemployment rate fell to 4.8%.

4.5%: Wages rose 4.5% over the past year.

The Good

Though the 194,000 jobs added to the U.S. economy demonstrate slowing job growth, the private sector is faring better than the headline numbers suggest. According to CNBC and the New York Times, the 194,000 figure appears worse because of a 123,000 job decline in government work, including a 180,000 job decline in education. The decline in education jobs can be attributed, in part, to a seasonal adjustment that occurs each year in September and doesn’t necessarily represent recent job losses. In September, private payrolls increased by 317,000, and the estimates for July and August were adjusted up by 169,000 jobs combined.

The Bad

One headline number in September is worse than it initially appears: the falling unemployment rate. The rate fell from August’s 5.2% to 4.8%, but that drop came largely because 183,000 people left the labor force. According to MarketWatch, the labor participation rate of 61.1% is still two full points behind pre-pandemic levels.

The Unknown

The Wall Street Journal reports that economists are still waiting to see what will bring workers back into the labor force. Companies report difficulty filling roles, and wages are rising as much as 10.9% year-over-year in some sectors, suggesting a tight labor market. Economists had predicted more people to reenter the labor force in the fall as students returned to school and enhanced unemployment benefits ran out. So far, it hasn’t been enough.