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

[On-Demand] 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!

Global Talent Acquisition Strategy: Time-to-Hire Cut in Half

PeopleScout Cuts Time-to-Hire in Half with Global Talent Acquisition Solution for Manufacturer

Global RPO

PeopleScout Cuts Time-to-Hire in Half with Global Talent Acquisition Solution for Manufacturer

A global manufacturer of engineering solutions turned to PeopleScout for global recruitment process outsourcing (RPO) to fulfill their need for highly specialized, hard-to-find industrial engineering talent at their manufacturing sites, innovation centers and service centers across 16 countries.

50 % Average Reduction in Time-to-Hire
16 Countries & 9 Languages
16 Countries & 9 Languages
Scope Expanded After Exceeding Hires Target
Scope Expanded After Exceeding Hires Target

Scope & Scale

The manufacturer engaged with PeopleScout for a global RPO solution to make 150 hires for over 30 of their sites across 16 countries including Belgium, Czech Republic, Denmark, Finland, France, Germany, Hungary, Ireland, Italy, Poland, South Africa, Spain, Sweden, the Netherlands, the United Arab Emirates and the United Kingdom.

For most of their hires, they were seeking specialty talent with expertise in engineering and industrial design. These skills help build equipment for businesses all over the world that focus on chemicals, air and water treatment, mining, pharmaceuticals, marine, construction and other industrial applications.

Challenge

The client came to us after their previous RPO provider failed to deliver on the manufacturer’s global talent acquisition challenges. With some requisitions still open after 500 days, many of their site managers had taken recruitment into their own hands. Each manager had their own approach which resulted in a disjointed candidate experience and high levels of frustration for hiring managers and internal stakeholders. The global talent acquisition leader had very little visibility into time-to-fill and cost-to-fill metrics from country to country and wanted to see a consistent process across all regions that showcased their employer brand. 

The manufacturer also had growing concerns about the future of their labor force. With the average age of an engineer in the mid-50s, a huge portion of the global engineering workforce is due to retire in the next 10 years. The client needed to get ahead of this by recruiting talent with specific engineering skills to prevent a future talent gap.

However, engineers are highly sought after, with 63% of European manufacturers indicating the engineering skills shortage is making it harder to find qualified workers. The manufacturer needed candidates with unique experience in mechanical engineering and automation and who also matched their language requirements which varied by country and role. So, attracting these rare engineers—and convincing them to make a move—meant we had our work cut out for us.

Solution

Our diverse, multilingual and multicultural delivery teams in our Bristol and Krakow delivery centers plus remote teams got to work executing an end-to-end RPO solution. They sourced, screened and evaluated candidates in English, Swedish, German, French, Italian, Polish, Hungarian, Portuguese and Spanish.

Using Labor Market Insights to Inform Strategy

With competition from other well-known, international companies in certain markets, some roles were particularly challenging with over 200 similar open positions across competitors in one location alone. The PeopleScout Insights Team was commissioned to conduct in-depth research across markets and uncover potential candidate motivators that would give the organization a competitive edge.

In one case, our market data indicated that the labor pool for engineers in Czech Republic is small. So, we approached the client with the idea to expand the geography of our search to include candidates who lived across the border in Poland who could commute. By doing this, we filled business-critical automation engineer roles that saved their productivity levels. 

Global Process Meets Local Expertise

We created a global process to meet the requirements of the global talent acquisition leader and then worked with hiring managers in each region to adjust our approach to account for nuances like culture, job role and labor market across their sites.

Applying our team’s deep regional expertise, we adapted our strategy in each location, using the appropriate databases, job boards and online and offline marketing tactics to reach the right candidates for every role in each country. For example, in smaller cities, we knew it was less likely that blue-collar candidates would be seeking employment via online channels, so we took out ads at bus stops.

For other roles, we increased awareness of organization’s employer brand through targeted recruitment marketing efforts on job boards and social media. We also partnered with local universities to get in front of students who were looking for their first jobs after completing their studies. 

Talent Pooling with a Focus on Diversity

Because most engineers in Europe aren’t actively looking to change jobs, our recruiters found most success through proactive headhunting. By engaging directly with passive candidates via social media, email and phone, they filled many existing requisitions and created talent pools for future vacancies, which reduced the overall time-to-fill.

Since women remain underrepresented in engineering fields across Europe, the manufacturer put great importance on increasing the number of women engineers they hired. In addition to adjusting the verbiage in job descriptions to make them more inviting to a wider variety of candidates, our recruiters paid special attention to reaching out to women by targeting online groups for women in engineering and women in tech.

Results

In the first year, we surpassed the initial target of 150 positions to deliver 245 total hires across 30 sites with a quarter sourced through proactive search and engagement. We filled the 500-day-old roles and reduced the time-to-hire by approximately 50% on average through our talent pooling efforts. In the process, we won over sceptical stakeholder groups, including the client’s EMEA engineering leadership. In the second year, we’re growing our partnership with over 300 hires projected.

In one instance, we were asked to source specialist inside sales talent. These individuals needed IT experience, manufacturing experience and to be fluent in German. With such specific requirements, advertising wouldn’t have worked, but because of the talent pool we built, we filled these two positions in less than three days.

“We have forged an excellent relationship with the PeopleScout team. They fully understand our challenges and needs and are able to meet our recruitment requirements in an efficient and professional manner.”

– Talent Acquisition Manager

At a Glance

  • COMPANY
    Global manufacturer
  • INDUSTRY
    Manufacturing & Industrial
  • PEOPLESCOUT SOLUTIONS
    Recruitment Process Outsourcing
  • ANNUAL HIRES
    300
  • LOCATIONS
    Belgium, Czech Republic, Denmark, Finland, France, Germany, Hungary, Ireland, Italy, Poland, South Africa, Spain, Sweden, the Netherlands, the United Arab Emirates and the United Kingdom

PeopleScout Jobs Report Analysis – March 2022

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.  

How We Created a Custom Behavioral Assessment Framework for a Leading British Bank

How a Custom Behavioral Assessment Framework Created a £24M Savings for a Leading British Bank

How a Custom Behavioral Assessment Framework Created a £24M Savings for a Leading British Bank

PeopleScout’s talent advisory team created a new candidate assessment center for a large British bank, resulting in a 58% reduction in recruitment costs totalling £24M.

58 % Reduction in Recruitment Costs

resulting in a £24M savings

55 % Reduction in Attrition

in the first year

50 % Reduction in Application-to-Hire Ratio

from 32:1 to 16:1

Situation

Arriving at the right assessment solution for a complex, multi-billion-pound contemporary business is a major challenge. But, this was a challenge that PeopleScout’s team of psychologists was built for when our banking client came to us with a big brief. The banking group had just launched a crucial new set of values. They wanted us to create a custom behavioral assessment framework, along side a full suite of candidate assessment tools to support hiring into core customer-facing roles across the bank.

Solution

Insight

We began by carrying out a comprehensive job analysis, involving focus groups with over 300 colleagues as well as one-on-one interviews with job incumbents, senior stakeholders and transformation stakeholders. We identified synergies and differences between role requirements and complexity across the financial services organization. The detailed research and analysis revealed three job families across all roles, each with four levels of complexity. We developed definitions and behavioral indicators for each group and each level in the framework.

Design

Following sign-off on the new behavioral framework, we developed the assessment matrix and recommended key assessment methods. We streamlined and simplified the existing multi-stage process, bringing both the process and tools into alignment with the new values. This made it easy to understand and implement across the bank. We recommended a three-stage process across the framework, allowing for tailoring to job family and complexity levels, using specific skills assessments and assessment center micro-exercises.

We recommended a two-stage application, with a short form at the beginning to reduce early candidate drop out.
We followed this with a more comprehensive data collection form, completed after candidates were more engaged with the job opportunity.

Pre-Screening: Situational Judgement Test

The pre-screening stage comprised an online scenario-based behavioral assessment or Situational Judgement Test (SJT). SJTs are strong predictors of future job success, and it gave the bank an opportunity to provide deep insight into the brand culture and their values. It also created a positive candidate experience, while increasing diversity and reducing both time-to-hire and recruiter effort.

Mid-Screening: Motivational Fit

The mid-screening stage took place through video or telephone interviews, dependent on the role. The interview provided the client with deep insight into motivational fit and communication skills and enabled them to evaluate numerous critical behaviors for the roles. Plus, it ensure only the best applicants reached the most time-intensive, face-to-face final stage.

Final Screening: Assessment Center

This final screening stage was an assessment center for the more complex roles, incorporating interviews, role-plays and group exercises. We introduced a series of inclusive and realistic micro-exercises, assessing the candidate’s values, potential and mindset as they correlated to the job family and level. For example, to assess for a growth mindset, we created a micro-exercise in which the candidate was provided with feedback on their previous performance and given the opportunity to reflect and learn from it. They were then asked to demonstrate how they would incorporate that feedback.

We significantly upgraded the bank’s assessment center capability by increasing the use of behavioral exercises for primary evidence gathering, combining scores across assessment tools to triangulate data and providing robust final evaluations.

Informed Choices

Candidates shared appreciation for the chance to demonstrate the breadth of their skills and that they felt fairly assessed. They also gained sufficient insight to make informed decisions about whether the organization was offering the environment they were seeking, and whether its values and purpose were aligned with their own.

Our solution showcased the bank’s brand and culture, and the built-in job preview features ensured candidates were given sufficient knowledge at the automated pre-screening stage to make an informed self-assessment of their own match to the organization. This meant that poor-fit candidates withdrew before resources were unnecessarily committed in the higher-touch, mid-screening stage of the process. It also supported the client in creating a respectful, two-way selection process, which is expected by modern job seekers.

Results

We built-in various ways of measuring the cost-efficiencies and overall return-on-investment of the end-to-end assessment solution. The client was delighted with the results:

  • A reduction in the classroom-based training time required as the caliber of candidates was improved.
  • Improved conversion at every stage of the assessment process, meaning less business time was required for assessment.
  • The application-to-hire ratio was cut by half, from 32:1 to 16:1.
  • There was a 55% reduction in first-year attrition.
  • There was a 58% reduction in recruitment cost, saving £24M.

At a Glance

  • COMPANY
    Leading UK bank
  • INDUSTRY
    Financial Services
  • PEOPLESCOUT SOLUTIONS
    Recruitment Process Outsourcing, Talent Advisory
  • ABOUT THE CLIENT
    This client is a leading UK financial services group that includes several retail banking brand. The company has been partnering with PeopleScout for over 20 years, making it one of our longest-standing client relationships.

Co-Op: How We Significantly Reduced Time-To-Hire for a Leading UK Insurer

Co-Op: How We Significantly Reduced Time-To-Hire for a Leading UK Insurer

Co-Op: How We Significantly Reduced Time-To-Hire for a Leading UK Insurer

Co-op Insurance came to PeopleScout for a new assessment center and streamlined recruitment process, resulting in a reduced time-to-hire and quality new talent.

Reduction in Time-to-Hire
Reduction in Time-to-Hire
73 % Assessment Center Pass Rate

up from 41%

Positive Candidate Feedback
Positive Candidate Feedback

Employing 70,000 people, the Co-op is known across the UK as a leader in socially conscious, community-led business. As well as being the country’s fifth largest food retailer, it is also a major general insurer. Co-op Insurance came to PeopleScout with a problem. They were having big issues recruiting the voices of the organisation: high-quality, productive, right-fit Claims Advisors who would stay. Also, the time-to-hire was very slow and a drag on the time of the resourcing team. Their recruitment process needed a complete overhaul.

SITUATION

The process we were presented started with a manual-intensive résumé screen. Because of the volumes that were coming through, the Co-op resourcing team was conducting daily résumé screens. This ate up immense amounts of time and resulted in the team screening candidates based on experience. That meant they were inconsistent in the way they were screening candidates (about 70% passed the screen). Those who passed this stage then had a qualifying call. This was not a formal telephone interview, but an introductory call to check the experience on their résumé, discuss any gaps and make sure they were eligible to work in the UK (85–95% passed this stage). Finally there was a face-to-face assessment centre—consisting of a computer-based assessment and interview. Following this, was the offer and induction.

SOLUTION

The right solution meant two considerations: what to assess and how.

  1. WHAT – We conducted a period of job analysis to understand what good looked like in the role.
  2. HOW – We needed to identify a solution which would support progressing candidates at speed through the process, providing a realistic job preview and automatically screening candidates so there was less manual intervention by the resourcing team.

We suggested removing the résumé screening step which meant there was less reliance on experience only. This allowed us to assess the whole person, progressing candidates who had no experience but great potential. We developed an online tool that incorporated a situational judgement test which tested for attention to detail and a video interview. Candidates completed this in one sitting, further reducing the time-to-hire. We also supported in the design of an assessment center.

RESULTS

The Co-op’s resourcing team was delighted with the new process. It’s easy to use and gives them back invaluable time to work on other projects. The assessment center significantly reduced time-to-hire, owing to the speed and efficiency of the new process. The pass rate at the assessment center stage is 73%—a big increase on the previous rate of 41%. This means that a much higher proportion of the best-fit candidates are going further in the process. In addition, new hires have been identified by the business as individuals who are motivated to succeed, with a propensity for learning and a growth mindset. Candidate feedback has been very positive, with many saying it gave them a proper understanding of the role.

At a Glance

  • COMPANY
    Co-op Insurance
  • INDUSTRY
    Financial Services
  • PEOPLESCOUT SOLUTIONS
    Recruitment Process Outsourcing, Talent Advisory
  • ABOUT CO-OP
    Co-op Insurance is part of Co-op Group, one of the world’s largest consumer co-operatives, owned by millions of members. As a leading UK insurer, the organization offers coverage for business, home, life, motor, travel and pets.

Disrespect & Demand: Why Candidates Abandon Recruitment Processes

By Joe Mongon, Head of Recruitment Delivery, EMEA

Talent shortages and the effects of The Great Resignation are now well-established narratives in the recruitment space. Yet, organisations are still putting up barriers between great opportunities and great talent. New research shows that candidate abandonment rates are over 65% due to a poor candidate experience. Candidates are dropping out of every stage of the recruitment process, not just the application process.

Often this results in “ghosting”—when the candidate drops off with no communication to the recruiter or hiring manager—with 28% of job seekers admitting they’ve done it. But, it’s a two way street—77% of candidates say that employers have done the ghosting.

Other barriers to candidate engagement that are contributing to abandonment include:

  • Overly complex or repetitive applications
  • Screenings, tests, or assessments take too long or require unreasonable amounts of time and effort to complete
  • Recruiters or hiring managers schedule interviews but never show up (ghosting), or reschedule several times, or are disruptive during the interviews themselves
  • Job offers take weeks or months to materialise
  • Lengthy and arduous onboarding practices (which get worse in heavily regulated industries)

Tips to Reduce Candidate Abandonment

Evaluating your candidate experience, particularly the number of steps and how much time each takes to complete, is imperative. Recruiters should work with hiring managers to prepare them for final stage interviews to ensure that experience is positive for candidates.

Think about any steps that can be eliminated. In times past, we’ve advocated strongly for assessments and even design them through our award-winning Assessment Services team through our Talent Advisory offerings. But, sometimes eliminating or scaling back assessment steps can actually help deliver more qualified candidates at scale and speed. We’ve seen this work particularly well in recent entry-level hiring projects, like customer service roles.

RPO Delivers an Excellent Candidate Experience

Advocating for changes like this can cause some discomfort – but it can also get results. This is an area in which an RPO partner can make a big difference. We can bring the agility and insight needed to problem solve in this candidate-led market. 

Infographic of how to hire in a candidate-led market. 

Only 12% of companies use candidate feedback to improve the candidate experience.

Only 30% of organisations survey new joiners to assess their experience. 

8 out of 10 organisations don't have time or resources to improve the candidate experience

54% of organisations surveyed have never benchmarked their candidate experience 

Only 5% of candidates rate their experience as excellent

Any organisation recruiting right now must meet candidates where they are. The best solution is the one that engages and retains qualified candidates at every stage of the process. Shorter applications, streamlined assessments, commitment to best practice interviewing, clear guidance and additional support in onboarding should all be a priority for your business. Fo

Talking Talent: Talent Technology and the Human Touch, Building a Balanced Recruitment Process with Rick Betori

Rick Betori’s role as PeopleScout’s managing director of the Americas has a few similarities with a previous leadership position he held as coach of his children’s baseball teams.

“The ball is always going to roll in between someone’s legs,” he told me from his home in the Chicago suburbs. “And, it’s not about the fact that it went through their legs; it’s what they do after and how they respond when things don’t go according to plan. That’s one of the most important things I can do in my role as a leader.”

Rick thrives when there’s a challenge to tackle, when there’s a problem to solve and when there’s the opportunity to connect the right person with the right job in a difficult labor market. It’s an important quality as employers face a talent landscape that has been transformed by the pandemic.

Although Rick joined PeopleScout in 2021, he has been a part of the TrueBlue organization since 2011, most recently leading delivery operations at PeopleReady, where he helped spearhead the company’s digital transformation. As such, he understands how technology, combined with human expertise, can solve the toughest talent problems. We talked to him about the role of talent technology in 2022.

You’re not new to TrueBlue, but you are a relatively new face here at PeopleScout. What makes you really excited about talent acquisition right now?

I’m excited because I believe that we can truly help companies that are facing some of their largest hiring challenges in their histories. Talent acquisition teams need creative partners to help them succeed, and I’m thrilled to be a part of finding those solutions.

I’m also passionate about our talent technology platform, Affinix, and what it does to help candidates seamlessly move through the application process. Candidates have so many choices today; when they’re searching for a new role, they expect a great experience, and they want it to be fast. I also think that now more than ever, data and analytics will be key in helping employers stay ahead of their competition in a difficult talent market.

And finally, I’ve been a part of the TrueBlue family since 2011, so I’ve been able to witness the passion and energy of the PeopleScout team working to put our clients first. It’s been great to dig in with the team in these last few months. They bring this infectious energy to do what’s right for our clients and their applicants. I’m proud to be a part of this organization moving forward.

Throughout the last couple of years, we’ve seen a lot of employers add technology to their recruitment process out of need. For talent acquisition leaders, where do you think their relationship with talent technology stands today?

I hate to start the answer to a question with “it depends,” but it really does vary.  We have seen many employers add technology solutions to deal with increased workload, compliance concerns, and to eliminate or simplify administrative tasks.

More recently, employers feel the pressures of attracting top talent, so they’re taking the next step, focusing on easing and improving the process for candidates. More companies are starting to leverage technology to reduce friction for candidates in the application process and at the same time, building a stronger employer brand.

Finally, we’re seeing leaders stepping back and asking, “How can technology, data and analytics inform our decision-making from a talent standpoint?” These leaders want more information around changes in roles; how the market is responding in their specific area; and how factors like the rise of the gig economy and the COVID-19 pandemic have influenced their prospective talent pools.

The right technology can really make the recruitment process feel even more personal and enhance an organization’s employer brand. How can you make that happen?

It’s about more than the right technology; it’s about the right technology at the right time. Employers can make the greatest impact by targeting specific points in the candidate’s journey.

For example, we know that candidates want to feel a sense of control in the process, and they want to feel as though things are moving forward. That means employers need to keep candidates feeling engaged and empowered. So, the right technology intervention could be implementing a pre-screen that candidates can complete by text or adding an interview self-scheduling tool. These give candidates the ability to feel like they’re taking the next step in the process, rather than waiting to hear back from someone.

Employers should also evaluate specific tools to ensure they fit with their brand. For example, candidates applying to a technology company would expect the process to include more advanced technology, more automation and a more cutting-edge approach to the recruitment process. On the other hand, candidates for positions where the work is focused on manual tasks or face-to-face interactions may expect a different experience. It’s not one size fits all.

Why should employers reevaluate their technology stacks now?

In the current market, talent acquisition teams need to move faster than ever to identify and secure talent. The days of long recruitment processes, multiple interviews and multiple steps are over.

Candidates have so many opportunities facing them today…and it’s not just different employers. Think about the impact of virtual work. It used to be that companies simply competed with other organizations in their area, but now, they compete for top talent with companies across the globe.

Add that to that the fact that many employers are reporting a record numbers of job openings and they can’t ramp up their internal teams fast enough to keep up with the number of requisitions they’ve got to fill.  The right tools, and the right partner, can make the process easier and even provide them a competitive advantage.

Adding new technology to an established process can be scary. What advice do you have for talent leaders to help them gain buy-in in their organizations?

First off, I’d say, if there wasn’t any fear, I’d be surprised. It’s human nature. But that’s not a reason not to automate.

It starts with having a good, strong, proactive communication plan around the process—explaining what they’re doing and why they’re doing it. It should be transparent and easy to understand. The plan should clearly demonstrate the benefits for the team, and then, it’s important to gather feedback. There must be open lines of communication. It’s about letting people weigh in as you fine-tune the process. Finally, it’s great to recognize and celebrate the early adopters. We’ve seen a lot of success in highlighting the employees who engage and really embrace the change early on.

With internal buy-in, it’s tough, and you can’t underestimate the challenge. However, a good, solid plan executed by leadership goes a long way.

Are there any final thoughts you’d like to leave us with?

I want to put an exclamation point on something I said earlier about the importance of speed in the current talent market. I know the types of pressures that talent leaders are under right now. I don’t have a crystal ball to tell you how long it will last, but I can say that when you find the right partner, they can help you start this process in a way that feels manageable, and that can also help you prepare for whatever challenge lies ahead.

[On-Demand]: Recruiter On-Demand: How Project-Based RPO Can Solve Your Toughest Talent Challenges

[On-Demand]: Recruiter On-Demand: How Project-Based RPO Can Solve Your Toughest Talent Challenges

Right now, employers across all industries are dealing with a difficult talent market as demand accelerated at a record pace. If your organization is struggling to meet a sudden need for talent or your internal recruiting resources are stretched thin, selecting a project-based RPO solution can drastically improve your talent acquisition outcomes.

Join PeopleScout’s Trish Koester, senior director of client delivery, and Karen Wendelberger, operations manager for our Talking Talent webinar, Recruiter On-Demand: How Project-Based RPO Can Solve Your Toughest Talent Challenges, available on-demand now.

Trish and Karen discuss the advantages of project-based RPO and how employers can best leverage an on-demand recruiting solution to source and hire top talent.

This webinar will cover:

  • Common challenges faced by employers and how project-based RPO can help solve them
  • The difference between working with an agency and a project-based RPO provider
  • How sourcing specialized talent through a project-based RPO reduces time-to-hire metrics
  • Real-world case studies from PeopleScout’s Recruiter On-Demand team
  • And more!

PeopleScout Jobs Report Analysis—February 2022

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.

A History of Progress: African Americans in the Workforce

From the first African slaves brought to the shores of the American colonies in the 1600s to the present day, African Americans have an active and intricate role in the history of labor in the western hemisphere and beyond. African Americans have filled a wide range of roles vital in building and sustaining the nation’s economy, even in the face of racial discrimination and persistent challenges.

Yet African Americans have often found themselves availed with few economic and career resources of their own, historically restricted to lower-paying sectors of the economy. Moreover, despite improvements in workplace diversity, African Americans have faced a long history of workplace discrimination as employees and job seekers continue to face obstacles.

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. In this article, we cover the history and experiences of African American workers and offer advice and recommendations for employers looking to build more inclusive workplaces.

The Complex Legacy of Slavery and African American Labor

hiring discrimination

In the 17th century, to meet the expanded labor needs of the rapidly growing North American colonies, European colonists who depended primarily on indentured servants from Europe opted for a cheaper and more plentiful labor source, African slaves. 

Historians estimate that up to 12 million African slaves made the middle passage during the trans-Atlantic slave trade. Following the Revolutionary War, the rural South’s demand for slave labor increased due to rising cotton production supplanting traditional cash crops like tobacco and sugar. The South’s demands for slave labor and growing calls for abolitionism in the Northern led to decades of political and social tension.

In 1861, the tensions between North and South erupted into civil war in America. On January 1, 1863, President Abraham Lincoln’s Emancipation Proclamation made it official that enslaved “shall be then, thenceforward, and forever free.” By freeing 4 million enslaved African Americans, the Emancipation Proclamation dealt a blow to the Confederate states’ labor force.

The Union’s victory in the Civil War granted 4 million African slaves’ freedom and in 1865, the 13th Amendment officially abolished slavery. Unfortunately, significant obstacles to full enfranchisement laid ahead during the Reconstruction era.

Racial Discrimination in the Workplace: The Emancipated Black Worker, Sharecropping and Black Codes

After the end of slavery, Southern legislators passed a series of laws also known “Black codes” intended to bar African Americans from skilled trades. While Northern states outlawed similar practices, white craftsmen resisted accepting Black workers into trade work. These restrictions on ex-slaves made them reliant on their former owners for work as landless sharecroppers.

employment discrimination

Sharecroppers exchanged their labor for tools, seeds, fertilizer, and access to land to harvest their crops. While having more independence than during slavery, sharecroppers paid substantial rent, interest and also turned over a large portion of the crop to their landlord.

To escape the the racial discrimination and oppression of the sharecropping systems and Jim Crow laws of the south, many black families migrated west and north in search of better-paying jobs in manufacturing and professional roles. However, many Black migrants were excluded from professional trades and manufacturing jobs, often confined to unskilled labor or domestic service.

A History of Progress in The Face of Racial Discrimination:

  • 1619 First African Slaves Brought to the New World: A Dutch ship brought 20 Africans ashore at the British colony of Jamestown. In the years to come, slavery spread quickly through the American colonies.
  • 1865 The Thirteenth Amendment Abolishes Slavery: The end to official slavery was perhaps the greatest labor victory in U.S. history, yet the struggle for equal rights was far from over.
  • 1866-1877 Reconstruction Era: During the Reconstruction era, the thirteenth and fourteenth amendments to the constitution ended slavery and granted citizenship to African Americans. Unfortunately, Reconstruction did not produce economic equality for millions of newly freed men and women.
  • 1881 Tuskegee Institute Founded: Booker T. Washington became the first principal of Tuskegee Institute in Tuskegee, Alabama, on July 4. Tuskegee became the leading vocational training institution for African Americans.
  • 1925 Pullman Company Porters form the Brotherhood of Sleeping Car Porters (BSCP): The first all-Black labor union in the U.S. formed in 1925 to address low wages, long hours and mistreatment from passengers. By 1935, the BSCP was the first African American union organization to be granted membership into the American Federation of Labor.
  • 1941 Black Activist Desegregate Defense Industry: In 1941, A. Philip Randolph, head of the BSCP along with other Black labor activist successfully leveraged their political organizing efforts to lobby President Franklin D. Roosevelt to end racial segregation in the defense industries.
  • 1961 Executive Order 10925 Establishes the EEOC: In 1961, President John F. Kennedy set forth Executive Order 10925, which established the President’s Committee on Equal Employment Opportunity, or EEOC. Kennedy’s order not only made it unlawful for government contractors to discriminate, but also gave the EEOC the right to impose sanctions on any organization which violated the spirit of civil rights laws.
  • 1964 The Civil Rights Act of Outlaws Workplace Discrimination: Dr. Martin Luther King Jr. and other major figures of the civil rights movement successfully petitioned for the Civil Rights Act of 1964.

The view of African American labor as first enslaved, then free, changed when the modern civil rights movement helped expand the scope of American democracy and the rights of all.

Racial Diversity and African Americans in the Modern Workforce

African Americans continue to face both explicit racial discrimination and more subtle forms of discrimination in the workplace. According to a survey conducted by Gallup, 72% of Black professionals have experienced racial discrimination in the workplace—a higher percentage than all other ethnic group surveyed.

Although companies claim they want to overcome these explicit and implicit biases and hire and promote diverse candidates, they rarely do so in effective ways. In this section, we outline ways in which employers can address racial inequality as well as better support and promote inclusion for their African American employees.  

African American or Black?

discrimination in the workplace

Racial identity can be very personal, and the language employers use to refer to a person’s race is a reflection of that. “Black” and “African American” are not always interchangeable. African American is typically used to refer to descendants of African who were enslaved. Some individuals prefer the term Black because they do not identify as African or because being Black about more than about race, it may also carry cultural meaning as well.

Moreover, some people identify as Black and African American and use the terms interchangeably for themselves, depending on the situation. Whether someone prefers “African American” or “Black” is very much up to the person, so it is always advisable to ask an individual which term they prefer.

Employee Resource Groups Can Help Support African American Employees

Being African American in the workplace can be emotionally taxing. Research by the University of Virginia shows that because Black employees feel a strong sense of difference between themselves and their mostly white peers, and as a result their ability to contribute is diminished. This sense of isolation can take a toll.

Creating employee resource groups (ERGs) is an approach you can use to build a more inclusive environment and addresses diversity and inclusion in a more holistic, community-based way.

The first employee resource groups were initially workplace affinity groups created in response to racial strife of the civil rights era. Joseph Wilson, the former CEO of Xerox, developed the concept following race riots in Rochester, NY in 1964.

ERGs can empower underrepresented groups by giving each group a voice to discuss issues with decision-makers and leadership. ERGs support learning and development by offering formal and informal leadership opportunities and creating visibility for employees who are active. ERG groups provide resources and guidance for cooperate leadership regarding diversity issues, community needs and policy.

Discrimination in the Workplace: Systemic Inequality and Corporate Culture

Often, Black employees report feeling less supported, engaged and dedicated to their employers than their non-Black coworkers. Many employers create diversity and inclusion programs to help improve the day-to-day experience of employees, however, many initiatives often fall short.

The problem?  Many DE&I programs tend to focus on helping employees from marginalized and underrepresented groups fit into the status-quo company culture and do not take enough action to remove systemic barriers to equality within their organizations. Organizations can start by leveraging data analytics to assess whether employees feel included on their teams and are treated equitably within the organization at large.

To collect diversity information on their workforce, employers should refer to EEO data collected for compliance obligations. Once the diversity data is collected, it should be compared to the data available on the labor market. Employers should look for gaps in diversity and then draft a plan to hire and retain more members of underrepresented groups.

Support African American Employees in Being Themselves

racial diversity

Members of underrepresented groups often feel pressure to conform, suppressing personal values and feel uncomfortable bringing their whole selves to work. This can lead to a particular struggle with feeling inauthentic at work. Research by McGill University shows that the pressure to create “facades of conformity” to fit in with the culture of their employer.

African American employees might straighten their hair or “finetune” their résumés by deleting ethnic-sounding names or companies. They might suppress emotions related to racism in the workplace and in the world at large.

Employers should assess how much of themselves their Black employees feel comfortable bringing to work. Here we outline a few ways leaders can encourage employees to bring their true selves to work:

  • Leaders should listen to everyone and incorporate the views of their diverse workforce to improve the exchange of ideas, perspectives and values.
  • Encourage Black employees to speak up for racial and cultural authenticity and to be seen as individuals who are unique for reasons other than their ethnicity.
  • Create mentoring opportunities to empower Black employees to share their true selves at work rather than learning to conform to cultural expectations.

Another challenge African Americans face in the workplace are the politics of respectability. Respectability politics refers to attempts by marginalized groups to control the behavior of their own members to show the groups social values align with mainstream values instead of challenging the status qou for its failure to accept difference. Respectability politics narrow the parameters of the Black experience, and can denying employees the opportunity to be their truest selves.

Sourcing African Americans Candidates

Recruiters may come with their own set of unconscious biases that may manifest as racial discrimination when hiring, hurting an organization’s efforts to source diverse candidates. Implementing technology into the recruitment process can help decrease the unconscious bias that may take place during recruiting.

For instance, if you find that there’s a large drop in minority candidates moving between the onsite interview and skills assessment, unconscious bias training may be in order. Follow your data closely so you can make more informed decisions and continue making progress on your organization’s diversity, equity, and inclusion goals. What’s more, you should also build a team of recruiters who hail from a wide range of backgrounds.

There are also websites and job boards such as Jopwell that allow recruiters to advertise open roles to a talent pool that is full of diverse candidates so you can source from a variety of different places. Don’t rely on the same sources over and over again when seeking out new candidates. Focusing on only the sources that you know best can result in a talent pool of similar candidates and a lack of diversity.

Moreover, employers who are intentional about increasing African American diversity should look to Historically Black Colleges and Universities (HBCUs) who produce nearly 20% of all the African American college graduates.

Organizations can partner with these schools to find promising entry-level employees with not only the necessary skills and education, but also the drive to make an impact early in their career. With the rise and ease of virtual career fairs and other ways to engage job seekers, it’s easier than ever to access these highly desirable candidates.

What’s more, HBCUs provide to their students with career guidance and support to prepare them for the workforce, making these institutions an ideal place to recruit early talent. With an emphasis on mentorships, internships, and other ways to participate actively in the larger community, HBCUs prepare students for life outside the classroom while offering a safe, nurturing, and inspiring environment—a place to thrive.

How Employers Can Help Make Racial Discrimination in the Workplace a Thing of the Past

Racial Discrimination in the Workplace

Despite increasing corporate investment in DE&I efforts, African Americans continue to face major barriers to advancement in the workplace. Now more than ever before, organizations and society should strive to benefit from the experiences, knowledge, and skills of all, not just a few. Organizations that understand racial discrimination, the reality and history of the African American experience will be better able to embrace and champion policies and programs that help to level the playing field. This will be hard but rewarding work that helps not only African Americans, but also the entire workforce and society at large.