Category: Talent & Market Insights

PeopleScout Jobs Report Analysis—October 2022 

Posted on by nfuqua

U.S. employers added 261,000 jobs in October, beating analyst expectations. The growth came despite rising interest rates aimed at slowing the job market. The unemployment rate rose to 3.7%. Year-over-year wage growth dropped to 4.7%. 

jobs report infographic

The Numbers  

261,000: Employers added 261,000 jobs to the U.S. economy in October.  

3.7%: The unemployment rate rose to 3.7%. 

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

The Good 

The 261,000 jobs added in October demonstrate continued resilience in the U.S. economy, according to the Wall Street Journal. Healthcare and education and business and professional services led the growth. While the leisure and hospitality sector has dropped back from the extremely high jobs numbers we saw during the Great Rehire, there is still sustained growth, led by hotels and other accommodations. 

The Bad  

Like last month, the bad news in October’s jobs report would look like good news at almost any other point. Job growth is strong, but as MarketWatch reports, the strong growth means the current labor shortages are not going anywhere. The Federal Reserve has been aggressively raising interest rates in the hopes of slowing the job market. The current labor shortages are driving higher wages, contributing to inflation. In fact, Fed Chairman Jerome Powell said the labor market is “out of balance” because there are too many job openings and not enough job seekers to fill them. 

The Unknown 

As the New York Times reports, the Federal Reserve is watching these jobs numbers closely, and October’s report suggests that they will be likely to raise rates again. Their next decision is scheduled for December 14. The fact that both hiring and wage growth have cooled slightly shows movement in the right direction, but experts say that it is still happening too slowly. Job postings actually rose again in September after falling in August, demonstrating the stubborn resilience of the job market. 

Destination 2030: A Roadmap for Talent Acquisition Leaders

Posted on by akessler

By Robert Peasnell, Deputy Managing Director, PeopleScout EMEA

It’s been a wild ride for talent acquisition leaders these last few years, as hiring slowed for most and then grew to record levels. As global economies still remain tumultuous, the one constant we can expect is change. 

With this in mind, PeopleScout undertook a piece of research, evaluating global workforce trends and looking to the future to see how these trends might impact the way we work. The result is our new white paper, Destination 2030.

Here are our top 10 predictions for what work and recruiting will look like in 2030 and tips that talent acquisition leaders can put into practice now to prepare for the future.

Buckle up and join us as we travel to the world of work in 2030.

1. Our Working Models Will Be as Diverse as We Are

Organizations and their employees will decide between them how, when and where people will work. The ways we define work will grow (think hybrid, part-hybrid or even nomadic…), and there’ll be no such thing as a 9-to-5 job.

How talent acquisition leaders can prepare:

With the growth of remote work, talent pools have become more globally dispersed. TA leaders who embrace global workforce planning in their talent acquisition strategy—taking a location-flexible approach—will give themselves a better chance at winning top talent. So, instead of looking for 20 FTEs in France, you could look for 20 French speakers anywhere in the world—vastly expanding your available talent pool.

TA leaders can augment their recruitment capabilities and reach by investing in recruitment process outsourcing (RPO). RPO partners offer single- and multi-country solutions that can help expand your geographic scope to target remote workers. Plus, RPO offers a consistent yet flexible process that can be nuanced to accommodate various cultures and candidate expectations.   

2. We Won’t Work, We’ll Contribute

Will the term “work” even exist? Perhaps not. We will be measured by our contribution and the value we bring to the organization. By 2030, success will be determined by meaningful output, not hours spent at a desk.

How talent acquisition leaders can prepare:

A recent study revealed that 93% of workers want a flexible schedule. Organizations that rethink working patters and adapt to the desires of their target candidate audience will gain a significant leg up when it comes to competing for talent going forward. This will require significant workforce planning on the part of a TA leader to ensure your organization can maximize productivity while also keeping employees engaged and motivated.

3. Reskilling Will Take on New Importance

The pace of change means reskilling will be the norm. No matter how much expertise you have in one field, you could find yourself changing direction and developing a new skillset in a totally different field.

How talent acquisition leaders can prepare:

Going by the last 20 years, it seems inevitable that many of the jobs we’ll need in 2030 simply don’t exist yet. So, TA leaders can’t put off workforce planning as some far-off solution to future issues. It’s imperative you plan today for the talent you’ll need for the future—either through recruitment or through an internal training and mobility program.

Organizations who invest in reskilling and upskilling as a strategic initiative will boost their resilience for whatever future business environments have in store. Plus, it will have a positive impact on retention as companies that excel at internal mobility can retain employees nearly twice as long as companies that struggle with it.

4. Retirement Age Will Become Just a Number

Some of us will work hard and live frugally, so we can retire in our 40s. Most of us will work beyond the standard retirement age, taking on new roles, developing new skills and easing out of work slowly.

How talent acquisition leaders can prepare:

By 2030, all Baby Boomers will have reached 65, the typical retirement age threshold in many countries. Keeping older workers in the workplace will become a priority for organizations as talent pools shrink and skills gaps widen. This also means addressing any age-based discrimination that may be hidden in your recruitment processes. Amongst job seekers over 45, 53% believe age is one of the biggest barriers to finding a new job. Eliminating bias in the recruitment process will ensure your organization can access this valuable talent pool and the experience they can provide.

Additionally, employers will need to adjust contracts as few in this generation will want to continue working in a typical full-time capacity. Making certain concessions and ensuring your DE&I program also supports generational diversity will ensure older workers can continue to contribute and will help soften the effects of impending mass retirement of Boomers. 

5. The Greatest Skill Will Be Learning

As new technologies emerge and old ones become obsolete, our work will demand different approaches and expertise. This constant evolution means we’ll be learning new skills. Things will change so fast that the future discussion will go beyond reskilling and upskilling to “learning to learn.”

How talent acquisition leaders can prepare:

Evaluate your assessment process to ensure it aligns with the outcomes you need from your roles—now and into the future. Judging candidates based on characteristics that help them succeed in your unique environment—rather than just on skills or experience—will help you unlock the potential of your new employees. Putting assessment activities in place that test for soft skills, like adaptability, will help create a culture of learning.

6. AI and Automation Will Create Jobs, Not Eliminate Them

Technology, powered by artificial intelligence (AI), will tackle mundane, highly complex and time-consuming work, freeing humans to focus on emotion-driven innovations. This will create a suite of new roles as well as cross-functional teams and agile working patterns.

How talent acquisition leaders can prepare:

Talent acquisition and HR leaders can experience the benefits of AI too! Talent technology platforms offer multiple opportunities to introduce more automation into your recruitment processes, allowing your recruiters and hiring managers to focus on developing better connections with candidates, bringing your process to life.

With AI sourcing, recruiters can let the tech do the mundane work of searching for qualified talent and focus on engaging candidates, offering guidance and positioning your organization as an attractive place to work. Automation can be leveraged throughout the candidate journey to supplement interactions from your team, including text interviews, interview scheduling, sharing content, handling basic candidate queries and more.

7. Inclusion Will Be Everywhere

The fact that hiring for potential and the need to reskill are the key criteria any organization looks for in 2030 pretty much eradicates unconscious bias. Organizations that to cling to outdated modes of attraction run the risk of missing out on valuable talent.

How talent acquisition leaders can prepare:

Hopefully, by now, everyone understands the importance of diversity and inclusion, if for no other reason than the economic benefits. It’s time for companies to really step up when it comes to diversity, equality and inclusion, especially because underrepresented groups are more likely to say that an employer’s diversity efforts make a difference in whether they decide to apply.  

While responsibility for diversity, equity and inclusion is shared across an organization, talent acquisition leaders have a significant influence. Use that impact to help the business assess the maturity of its DE&I program. By pinpointing your current state and plotting out the roadmap to your desired state, your organization can make strides in building a more diverse workforce.

8. Personalization Will Drive the Need for Connection

Organizations will inspire unity, belonging and a collegiate spirit on one hand, balanced with hyper-personalization on the other. While candidates and employees have a desire to be connected, they still want to be treated as an individual.

How talent acquisition leaders can prepare:

Modern candidates expect digital experiences, but also want the human touch from recruiters. So, how can you achieve personalization at scale?

Leveraging talent technology can be a great way to attain this. This could be through a CRM tool that lets you notify individuals in your talent pools about positions that are a fit for their skills and goals, or an ATS that gives candidates a personlized portal where they can track the status of their application. Technology can help you combine personalization with the power of automation so you can show you recognize each candidate as a person, not just a CV. 

9. Say Goodbye to Work Permits

Workers will become global citizens, working from anywhere for organizations based anywhere. In a single, 10-person start-up, all 10 people could work from completely different places.

How talent acquisition leaders can prepare:

One of the main benefits of RPO is ensuring their clients remain compliant in all the countries in which they’re operating. Most global RPO providers have offshore delivery centers that hold the necessary legal entities and licenses to hire in your chosen countries, so you don’t have to go through the effort or expense.

If you’re looking to expand your recruitment footprint, outsourcing may be an option to explore. Check out our ebook, Building a Business Case for RPO, to learn how to create buy-in and secure budget.

10. The Future is Bright

With Millennials at the helm, we can look forward to ethical and empathetic leadership and a holistic approach to wellbeing. Consumers and shareholders alike will put pressure on businesses to look after the planet as well as society—a welcome shift indeed.

How talent acquisition leaders can prepare:

By 2030, Millennials will make up the biggest generation in the global workforce, representing a massive 40% of all workers. As a whole, they are much more motivated by the difference they can make in the world than they are by how much money they can earn. So, it’s important that employer’s keep in mind that whilst success and status are definitely still in the mix, it’s the cultural fit, values and purpose that matter most for this generation.

Now is the time to assess your employer brand and EVP. Do they reflect your values and Environmental, Social and Governance (ESG) or Corporate Social Responsibility (CSR) efforts? Including these strategies as a visible part of your candidate attraction efforts will ensure you are seen as an employer of choice amongst the generation that will lead your business forward.

I’m sure you’re already thinking about budgets for 2023, and I hope you’ll consider some of these opportunities for investment. To learn more about how we came to the predictions and see our research, check out our Destination 2030 white paper.

Destination 2030: 10 Predictions for What’s Next in the World of Work 

Posted on by akessler

Destination 2030:

10 Predictions for What’s Next in the World of Work

The last few years have been tumultuous for talent acquisition leaders, and it doesn’t look as if the pace of change is going to let up. Are you looking for ways to future-proof your workforce and create a resilient talent strategy?

Buckle up and join us as we travel to the world of work in 2030! Our ebook, Destination 2030, explores the latest research and global workforce trends and how they might impact the way we work.

In this ebook, we explore:

  • Demographic changes in the workplace and how to engage each generation
  • The changing role of technology in candidate and employee engagement
  • Our top 10 predictions for what’s next in world of work

Candidate Experience Pitfalls That Impact Diversity Recruitment [Infographic]

Posted on by akessler

Diversity, equity and inclusion (DE&I) is a top priority for global organizations, but only 5% say they’re succeeding with their DE&I initiatives. We decided to look into where talent acquisition programs fit in and how the recruitment process may be contributing to this disparity for companies.

In looking at the research, we uncovered some common pitfalls within the candidate experience in which organizations unintentionally sabotage their DE&I efforts.

CHECK OUT OUR INFOGRAPHIC TO EXPLORE SOME OF THE DATA WE UNCOVERED IN OUR DIVERSITY & THE CANDIDATE EXPERIENCE REPORT.

Diversity and candidate experience infographic

To learn even more about diversity recruitment, download, Diversity & the Candidate Experience: Identifying Recruitment Pitfalls to Improve DE&I Outcomes.

PeopleScout Jobs Report Analysis—September 2022

Posted on by nfuqua

U.S. employers added 263,000 jobs in September. This came in just below analyst expectations. The unemployment rate fell back to 3.5%. Year-over-year wage growth dropped to 5.0%.

jobs report infographic

The Numbers

263,000: U.S. employers added 263,000 jobs in September.

3.5%: The unemployment rate fell to 3.5%.

5%: Wages rose 5% over the past year.

The Good

The good news in September’s jobs report may seem surprising. The red-hot jobs market is cooling. As MarketWatch reports, the latest report marks the slowest job growth in 17 months as the Federal Reserve continues to raise rates and employers face continuing labor shortages. The Federal Reserve is hoping to slow the unsustainable pace of job growth to avert a potential recession. Wage growth also cooled slightly in September. This is a major focus for policy makers as higher wages can increase inflation.

The Bad

The bad news in September’s report is that the cooling isn’t happening fast enough. While September’s report shows a slower pace of hiring compared to recent years, historically, the 263,000 jobs added demonstrate significant job growth. Labor force participation also dropped slightly and has yet to reach pre-pandemic levels. As the Wall Street Journal reports, this means the Federal Reserve is not meeting its inflation goals and will likely raise rates again in November.

The Unknown

The big question for economists will be whether the Federal Reserve is able to do enough to slow inflation in coming months to avert a recession. As the New York Times reports, the next rate decision is scheduled for Nov. 2, and officials are closely watching the jobs data. There are indications that employers are starting to slow the pace of hiring, as the number of open jobs fell by more than one million in August, and filings for unemployment benefits have slightly increased. However, economists say the economy needs to slow more quickly than the current pace.

PeopleScout Jobs Report Analysis—August 2022

Posted on by nfuqua

U.S. employers added 315,000 jobs in August. This came in slightly below analyst expectations. The unemployment rate rose to 3.7% as more workers entered the labor force. Year-over-year wage growth remained high at 5.2%.

The Numbers

315,000: U.S. employers added 315,000 jobs in August.

3.7%: The unemployment rate rose to 3.7%.

5.2%: Wages rose 5.2% over the past year.

The Good

Though job growth cooled slightly from July, the 315,000 jobs added to the economy are good news. As CNBC reports, August’s jobs report demonstrates that employers are continuing to hire and suggests that the Federal Reserve could avert a recession.

The increased unemployment rate is also good news for economists because the month-over-month 0.2% increase is paired with a 0.3% increase in the labor force participation rate. This means that the economy is strong enough to bring in more workers who were sidelined earlier in the pandemic.

The Bad

Despite the strength of August’s report, experts still spot a few areas of concern. As the Wall Street Journal reports, some minority groups saw either increased unemployment or decreased labor force participation. Fewer Black adults were working or seeking a job in August.

Additionally, some experts believe job growth could continue to cool as the U.S. economy has now recovered all of the jobs lost in the early days of the coronavirus pandemic. This means that rehiring will likely be less of a factor in future jobs reports.  

The Unknown

Economists will continue to watch how the economy responds to rate increases by the Federal Reserve. As the New York Times reports, policy-makers at the Federal Reserve believe that the job market is overheated. There are currently twice as many jobs open as there are job seekers, which is driving up prices and contributing to inflation. The hope is that by raising rates, they will be able to cool inflation and slow job growth without allowing unemployment to skyrocket.

PeopleScout Jobs Report Analysis – July 2022

Posted on by nfuqua

U.S. employers added 528,000 jobs in July. This beat analyst expectations and marks the point where the U.S. economy has recovered all 22 million jobs lost in the early days of the COVID-19 pandemic. The unemployment rate dropped to 3.5%. Year-over-year wage growth increased slightly to 5.2%.

jobs report infographic

The Numbers

528,000: Employers added 528,000 jobs to the U.S. economy in July.

3.5%: The unemployment rate fell to 3.5%.

5.2%: Wages rose 5.2% over the past year

The Good

The headline from July’s jobs report is the news that after 2.5 years, the U.S. economy has recovered all of the jobs lost early in the pandemic. As the Wall Street Journal reports, this marks the fastest job growth at any point after WWII. The strongest growth took place in the leisure and hospitality; business and professional services; and education and health services sectors. The unemployment rate also fell back to the historic low of 3.5% that we saw right before the pandemic.

The Bad

Despite the good news in July’s report, there is one concerning number. The labor participation rate fell again to 62.1%. As MarketWatch reports, experts would expect the labor participation rate to rise in a strong jobs market, as abundant job openings draw more people into the workforce, especially as there are currently more job openings than there are people looking for work. However, most of the decrease is concentrated in the youngest and oldest workers,  those 16-24 and those over 65. This suggests that young workers heading back to school and the retiring baby boomer generation could be behind the drop.

The Unknown

As the New York Times reports, July’s impressive job growth indicates that the U.S. has not entered a recession, despite the fact that the country’s gross domestic product has contracted for the second consecutive quarter. This shows that the economy is withstanding the impact of the Federal Reserve’s aggressive interest rate increases. Economists expect job growth to slow down later in the year as interest rate hikes start to make an impact.

Providing Workforce Planning Data to Support European Call Center Recruitment

Posted on by akessler
Providing Workforce Planning Data to Support European Call Center Recruitment

Providing Workforce Planning Data to Support European Call Center Recruitment

Call center recruitment is essential for any enterprise in today’s customer-centric environment. A large multinational financial services provider identified five European countries where they could potentially open a bi- or tri-lingual contact center. They turned to PeopleScout—and our Talent Insights solution—to get the data they needed to understand which location had the best talent pool for their needs.

Labor market data provided for five countries
Labor market data provided for five countries
Provided data on size of talent pool and language capabilities
Provided data on size of talent pool and language capabilities
Added value with data to support DE&I and more
Added value with data to support DE&I and more

Situation

With dozens of contact centers in countries around the globe, the financial services organization wanted to simplify and optimize their operating model with multilingual hubs. The client asked PeopleScout to help them understand more about five shortlisted potential locations for these “super sites.” Time was of the essence with delivery of the insights required in just two weeks.

Solution

Our in-depth talent insights included:

  • Size of talent pool – The number of individuals working in the customer service sector in those locations
  • Languages spoken – The languages spoken by the talent pool within those locations
  • Cost of language ability – Any additional cost to hire people with particular language abilities in those locations
  • Demographic data – Age and gender data to support diversity, equality and inclusion (DE&I) efforts as well as recruitment marketing messaging
  • Drivers and motivators – For candidates in each market to inform go-to-market messages that will resonate with each audience
  • Channel strategy and advertising tactics – To attract these audiences on their go-to websites and job boards
  • Candidate expectations – What candidates want from the recruitment process to enable an improved candidate experience
  • Salary expectations – How the employment offer might need to vary from location to location based on regional information

The Results

The PeopleScout Talent Insights team distilled their research into an easily digestible report. For each country, the report included:

  • A high-level summary of our findings and recommendations
  • An overview of market size broken down by active and passive job seekers
  • Highlights on “hot spot” locations within each country showing language capabilities and salary expectations
  • What customer service professionals are looking for from an employer
  • Job boards and websites favored by candidates in each country
  • Demographic details including gender and age as well as education and experience levels
  • Expectations for the candidate experience including timelines, number of interviews and likelihood to negotiate offers
call center recruitment market data
call center recruitment market data

The insight PeopleScout provided for each location equipped the client with valuable information that helped confirm the suitability of a location for their multilingual contact center. We were also able to provide them with additional analysis to define their proposition, shape their talent attraction strategy and inform their salary and compensation packages.

At a Glance

  • COMPANY
    Global financial services organization
  • INDUSTRY
    Financial Services
  • PEOPLESCOUT SOLUTIONS
    Talent Advisory
  • ABOUT THE CLIENT
    This multinational insurance and financial services company offers personal and professional insurance products as well as asset management solutions.
Let’s Connect

Challenge Accepted: Tactics & Strategies for Hiring in a Candidate’s Job Market

Posted on by nfuqua

The job market and the world of work have changed drastically in the last few years, leaving employers to deal with the new challenges. For example, in the U.S., there are currently more than 11 million job openings, and year-over-year wage growth was at 5.2% in May. On top of that, the Great Resignation has record numbers of workers leaving their jobs: In the last six months in the U.S., more than 4 million people left their jobs each month. And, it’s spreading across the globe; CNN reports that resignations have also jumped in countries like the United Kingdom, Australia and France. 

But, employers are dealing with more than just a tight talent market, increased turnover and rising wages; the world of work has changed permanently—and so have candidate expectations. For instance, nearly two-thirds of the workforce wants some form of remote work option and nearly one-third wants hybrid work. As such, employers can’t simply plan to return to the pre-pandemic ways of doing business; instead, they must adapt. 

More precisely, to succeed in this job market, you need to both hire the best talent and retain the workers you already have—and that requires multifaceted solutions that address the specific issues within your organization. In this article, we’ll cover the potential sources of your talent challenges, some signs that they may be negatively affecting your organization and strategies you can use to get ahead.  

Is Your Employer Brand on Life Support? 

Throughout the pandemic and initial recovery, many organizations didn’t have the resources to invest in their employer brands. Unfortunately, if this was the case for your organization, it may be affecting your ability to recruit top talent. That’s because, if your employer brand is weak, qualified candidates won’t apply because they simply have other options.  

So, how can you tell if your employer brand is holding your organization back? Watch for these warning signs: 

why is there a labor shortage 2022

Solution: Rebuild Your Employer Brand 

If any of these signs look familiar, it’s time to focus on your employer brand. Luckily, there are a few things you can do. The first is to build out a strong employer value proposition (EVP) as the foundation of an employer branding campaign.  

At PeopleScout, we define your EVP as the essence of your uniqueness as an employer, as well as the give and get between you and your employees. In many ways, your EVP is the foundation of your employer brand—the perception and lived experiences of what it’s like to work for your organization.  

It’s important to note that building a strong EVP to drive your employer brand requires research into the short- and long-term goals of your organization; the reality of what it’s like to work for you right now; and the outside perception of your organization. That information is distilled into an EVP that’s unique, aspirational, authentic and dynamic. From there, you can communicate your message through an employer branding campaign via your careers site, social media campaigns, hiring events and more.  

At PeopleScout, we supported work on the employer brand at Vodafone, a telecommunications company in the UK. In this case, consumers knew the brand well as a mobile phone retailer, but didn’t see it as a multifaceted tech innovator. So, to help Vodafone hire more young workers, we worked to create an employer brand campaign that captured the spirit of change and possibility that’s part of their EVP. At the end of the project, PeopleScout had generated more than 16,000 applications and increased the number of female candidates by 23%. 

Does Your Candidate Experience Leave Much to be Desired? 

If your employer brand is in good shape, but you’re still struggling to hire qualified candidates, the next area to evaluate is your candidate experience. Candidate experience has always been important, but it’s even more critical in today’s job market. Nowadays, people have plenty of other options, so they won’t take the time to complete a long application or wait weeks for a call back.  

How can you tell if your candidate experience is the cause of your hiring woes? Look for these signs: 

Candidates accept other offers while in your recruitment process.  You have a lot of interviews, but make few hires.  Your process is slow and requires multiple steps for candidates. Candidates ghost before starting

Solution: Update Your Talent Tech Stack 

The right technology can have a significant influence on your candidate experience. Candidates want the recruitment experience to be fast and easy and allow them to feel in control. For this reason, evaluate every step of the candidate journey to identify where you can make improvements with technology. 

Your first step is to look at your application. Have you tried filling out your own application recently? How long does it take to complete? Is it simple or does it feel drawn out and tedious? Can you complete the application on a mobile device? If the process takes a long time or requires a desktop computer, it’s time to update your application.  

Then, look for other points in the process where you might make things easier for candidates. Do candidates have to wait weeks to schedule a screening or interview? If so, consider adding a self-scheduling interview tool or virtual interview solution, like text interviews or on-demand interviews. Furthermore, adding something as simple as a status bar that shows candidates where they are in the process can help them stay engaged. 

At PeopleScout, we work with a large retailer that had a strong consumer brand, but still struggled to recruit candidates. Their application required a computer and took more than 30 minutes to fill out. As an alternative, we developed a mobile-first application with just 11 questions that took less than eight minutes to complete. Now, half the candidates apply on mobile devices and the application conversion rate rose to 85%. For comparison, employers using a traditional application have an average applicant conversion rate of just 35%. 

Are Your Offers Competitive Enough in the Job Market? 

Salary and benefits are the elephants in the room in any discussion about hiring challenges. Wages are rising significantly. While the average year-over-year salary growth in the U.S. is at 5.2%, some industries are experiencing even steeper wage growth. For example, in the leisure and hospitality sector, wages are up more than 11% in the last year. In fact, the World Economic Forum reports that wages are rising in every region of the world. Therefore, in the current job market, your offer needs to be competitive.  

Here are some signs that your offers may not be competitive enough: 

Candidates make it through the process, but turn down offers.  Candidates cite salary expectations significantly higher than your budget.  Employees who leave frequently cite increased pay. 

Solution: Adjust Your Compensation to Current Job Market Rates 

If you’re experiencing any of these warning signs, evaluate your compensation against the market and adjust where necessary. Due to remote work, the job market has changed. Now, you’re not just competing against employers in your area for talent; you’re competing for talent across the country and, in some cases, the entire world. 

To that end, an RPO or MSP provider can help advise you on market rates and what types of adjustments are needed to make your offers more competitive. Plus, increasing your wages could even save you money in the long run.  

This happened for one PeopleScout client, a major rural healthcare system. Hit hard by the ongoing nursing shortage, the healthcare organization was relying on expensive travel nurses and struggling to bring in enough candidates. PeopleScout advised the provider to implement a $10,000 hiring bonus. This resulted in a cost savings as the client was able to reduce its nursing recruitment spend by 77%, totaling more than $4 million. The client was also able to reduce its use of traveling nurses by 68% and experienced its lowest-ever nursing vacancy rate—just 1.3%. 

Does Your Company Culture Send People Running? 

Perhaps the best way to avoid staffing shortages is to ensure that you don’t have to backfill large numbers of roles due to turnover. The Great Resignation is in full swing, but employers shouldn’t just throw their hands in the air as employees leave for new jobs.  

The good news is that employee turnover isn’t just about money. Talent leaders are finding that a major driving factor is employee disengagement. Throughout the last few years, many employees have experienced negative effects on their mental health, causing burnout and driving a reevaluation of work/life balance. Conversely, company culture can play a huge role in keeping employees happy, healthy and engaged. 

Is your company culture a problem? Watch for these warning signs:  

job market

Solution: Determine What Employees Want in the Job Market & Meet Their Needs 

To improve your company culture, you must first determine what employees feel they’re lacking from your organization. You can gather this information in two ways—and both are valuable. First, you should be conducting exit interviews with employees who have resigned. Try to get an idea of why they decided to take a new role. Is it simply increased pay? Did they feel they lacked a clear career path at your organization? Did they not feel appreciated by managers and colleagues?  

Next, try to identify problems before they drive employees to leave. You can accomplish this through anonymous pulse surveys; there are a number of tools you can use to track employee engagement and look for areas of improvement. Do employees want more opportunities for training? Do they want to feel as though they’re part of something bigger? Do they feel as though company leadership is not addressing their concerns? 

Then, once you determine the biggest pain points for employees, make targeted improvements to your company culture. You can demonstrate appreciation for your workers in tangible ways: Communicate actively and often. Define paths for advancement and look at learning and development programs. Offer more flexibility. Provide training for managers. Not only will these kinds of investments keep tenured employees from leaving, but they can also improve your employer brand and make your employment offers more competitive.  

There’s no doubt that the current talent market is difficult for employers, but the sources of the struggle are multifaceted and complex. There isn’t an easy, one-size-fits-all solution. Employers need to evaluate both the candidate and employee experience and alter their processes where inadequacies reveal themselves. You can’t keep waiting for “things to return to normal.” We’re in the new normal, and we have to adapt. To learn more, check out our ebook, “Employer Brand: Helping the Right Talent Choose You.” 

PeopleScout Jobs Report Analysis – June 2022

Posted on by nfuqua

U.S. employers added 372,000 jobs in June, beating analyst expectations. The unemployment rate remained at 3.6%. Year-over-year wage growth softened but remained high at 5.1%.

jobs report infographic

The Numbers

372,000: Employers added 372,000 jobs to the U.S. economy.

3.6%: The unemployment rate remained at 3.6%.

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

The Good

The 372,000 jobs added in June demonstrate the job market remains strong despite inflation. Though the latest numbers come in lower than the 400,000+ jobs that had been added in recent months, the latest numbers are still good news. The Wall Street Journal reports that experts expect the strong hiring numbers to continue, especially in the leisure and hospitality sector, as consumer demand for travel and restaurants remains strong. The 3.6% unemployment rate is also good news. The number has held for four months, suggesting that the labor shortage is starting to ease.

The Bad

Despite the good news, there are some concerning signs in June’s report. The labor participation rate, which has yet to recover to pre-pandemic levels, fell to 62.2%. This is the second time in the past three months that the labor participation rate has fallen. As MarketWatch reports, this leaves the workforce short of about 1.5 million workers. While the unemployment rate points to some easing of the labor shortage, the labor participation rate indicates that there is still a long way to go.

The Unknown

With the mixed economic news, experts will be watching closely to see if the Federal Reserve’s strategy of raising interest rates will work to tame inflation while maintaining strong job growth. The New York Times reports that the economy faces several large challenges. High prices are restricting consumer spending, the labor force is aging and low immigration slows the growth of the labor force.