U.S. employers added 661,000 jobs in September, a slowdown from the previous month. Despite the growth, the jobs numbers still remain far below pre-pandemic levels. The unemployment rate fell to 7.9%. Year-over-year wage growth was at 4.7%.
The Numbers
661,000: The U.S. economy added 661,000 jobs in September.
7.9%: The unemployment rate fell to 7.9%.
4.7%: Wages rose 4.7% over the past year.
The Good
September marked the fifth straight month of job growth, and the unemployment rate fell to 7.9% from nearly 15% in April. This brings the unemployment rate below the peak of the last recession. The largest gains came in the leisure and hospitality sector, which added 318,000 jobs, 200,000 of which came from bars and restaurants. MarketWatch also reports that workers are putting in more hours at work, which is good news.
The Bad
The recovery is slowing down. CNBC reports that the 661,000 jobs added to the economy in September fell short of the 800,000 expected in the Dow Jones estimate. This is also the first month of recovery where fewer than 1 million jobs were added. The New York Times reports that if the recovery continues at September’s pace, it will take 17 months to return to pre-pandemic employment levels.
The Wall Street Journal reports that the number of people reporting their layoffs as temporary has decreased, indicating that more layoffs are becoming permanent. This follows several large corporations announcing large numbers of planned layoffs. Though those numbers were not included in the September report, the news indicates that the recovery will continue to slow.
The Unknown
The September report leaves a lot unknown. This will be the last jobs report released before the 2020 U.S. election, where both President Donald Trump and democratic challenger former Vice President Joe Biden have promised to create millions of jobs. It’s not clear what, if any, impact the report will have on the election. The report was also released on the same morning when millions of Americans woke to learn that President Trump has been diagnosed with COVID-19.
Additionally, MarketWatch also reports that economists don’t agree on what will happen next. Some believe that the recovery will continue to slow and slide backward because of the end of federal aid and the start of the cold and flu season. Others believe the recovery will grow stronger as restrictions continue to lift and people find new ways to cope with the impact of the pandemic.
The seemingly never-ending obstacle course of 2020 has been filled with highs, lows and everything in between — from a landmark ruling for LGBTQ+ workers to an international awakening to systemic racism and a global pandemic that has impacted the lives of millions. As organizations around the world face a future more unpredictable than ever before, one thing remains certain: the business case for diversity and inclusion (D&I) is stronger than ever.
In order to face unique challenges, organizations will need unique thinking, the kind that only comes with a truly diverse team — whether in age, gender, sexuality, race or otherwise. According to a report from the World Economic Forum, companies with above-average diversity scores report nearly 20% higher revenue due to innovation. Moreover, this article from The Conversation cites research frommore than 300 Australian studies that conclusively shows how workplace racism has a direct, detrimental impact on performance, accounting for an estimated 3% loss in average annual gross domestic product.
That said, the driving motivators for organizations to foster effective D&I programs should not be focused only on performance metrics, but rather the desire to make employees feel represented, understood, respected and cared for. While most companies are able to increase their level of diversity, they struggle with cultivating a culture in which those diverse voices are heard — leaving room for improvement in their inclusion efforts.
D&I: Defined
Diversity and inclusion in the workplace has been a hot topic for years, so why does it often seem like minimal meaningful change has occurred? Unfortunately, the downfall for many organizations is the misinterpretation that diversity and inclusion are synonymous. To avoid making this mistake, it is important to understand the difference between diversity and inclusion, to better understand why it’s time to shift focus to the latter.
The definition for diversity is relatively straightforward, and simple enough for most organizations to achieve by tracking demographics and collecting concrete data to ensure they hire and promote people of varying backgrounds.
However, the definition for inclusion is more difficult to effectively measure results against because every organization can interpret words like “including” and “accommodating” differently.
According to Deloitte, “without a shared understanding of inclusion, people are prone to miscommunication, progress cannot be reliably evaluated, leaders can’t be held accountable and organizations default to counting diversity numbers.”
Deloitte goes a step further by using its research to create a holistic definition comprised of four distinct yet connected elements:
Fairness and respect: The starting point for effective inclusion is ensuring people are treated equitably and with respect — in both nondiscrimination and basic courtesy.
Valued and belonging: People will feel included when they believe their authentic self is valued by others and they feel a sense of connectedness with their peers.
Safe and open: Inclusion is experienced when people feel safe to speak up without any fear of embarrassment or retaliation.
Empowered and growing: True inclusion happens when people feel empowered to grow in their role and do their best work — diversity of thinking can emerge.
By looking at the depth of these definitions, it’s clear that building and maintaining an effective inclusion program requires considerably more time and effort than it does to reformat a hiring process to increase diversity. While diversity can be measured and those metrics can be used to set and achieve goals, inclusion calls for a continuous cultural reset.
Inclusion Requires Action
In a 2020 report by McKinsey & Company, data from three industries with the highest levels of executive-team diversity — financial services, technology and healthcare — showed that “while overall [employee] sentiment on diversity was 52% positive and 31% negative, sentiment on inclusion was markedly worse, at only 29% positive and 61% negative.” Furthermore, the levels of negative sentiment about equality and fairness of opportunity, key indicators of inclusion, were also particularly high — proving that even more diverse companies struggle with effective inclusion.
So, what are some steps organizations can take toward fostering better inclusion? To gain some insight, LinkedIn asked Black talent leaders their thoughts on what talent acquisition teams can do to accelerate diversity and inclusion. Here are three of their tactics:
Change how and where you look for talent
This starts with having diverse recruiting teams. Having recruiters from a wide variety of backgrounds will help employers change the way they think about how and where they find talent — shifting their sourcing beyond the geographies, companies and schools they’ve become accustomed to.
Make a “top-down investment” in diverse employees
To build diversity into the succession plan, organizations should invest time, money, training and executive sponsorship into their diversity efforts, ensuring representation across the business. By hiring and promoting diverse talent, an organization sends a message of inclusion that ripples throughout the company and into the industry — positioning you as an inclusive workplace that recognizes the value of diverse talent.
Leverage the power of remote work
Continuing distributed work strategies beyond the current crisis will allow recruiting teams to source, engage and hire talent where they are. Organizations will no longer be limited to talent that lives in the same geographies as their physical offices, meaning they can expand their scope to locations that are historically diverse.
These tactics may seem like large feats, and that’s because they are. Building an organization that is truly diverse and inclusive is a huge undertaking that takes time, effort and serious commitment. While you work on the organizational overhaul, keep in mind that there are also some smaller steps you can take along the way:
Break up cliques. We are naturally drawn toward others who are like us, which can often result in cliques. Create opportunities to position employees outside of their comfort zone and into work groups made up of people with various backgrounds.
Form inclusive groups. Create a dedicated task force focused on updating policies that promote your company’s values. Project Include offers more suggestions for creating systemic inclusion here.
Offer professional development. Offering development programs and mentorship opportunities to underrepresented employees who may have a steeper hill to climb can help them in their career ascent.
Showcase diverse talent. Representation matters, and employees and candidates will understand how you value diverse talent when you celebrate and share their stories.
A Continuous Journey
It can be easy to get lost in the mindset that inclusion is a “one and done” activity. That mindset has a certain allure, because it would mean we could all rest assured knowing we’ve created a workforce that is 100% diverse and effectively inclusive. In reality, inclusion is a continuous journey that requires a concerted effort, focus and determination to effect meaningful change. You can think of it like a long road trip — one that requires multiple checkpoints, refuels and stops to check you’re still going in the right direction. To ensure you’re always on the correct path, it can be helpful to perform a regular inclusion audit that asks:
Does the organization have a continuous representation of diverse talent?
Is diverse talent represented in leadership roles?
Are we regularly surveying employee sentiment on D&I?
Do we know what’s working? What isn’t?
Have we asked employees what they want and need?
It’s clear that simply hiring diverse talent is not enough. While it’s a start, it’s only part of the solution. Workplace experience and true inclusion is what will help employees feel represented and valued, leading to diverse hires that stay, grow and thrive. The road ahead is a long one, but by implementing the strategies outlined in this article, your organization will be well on its way toward a better diverse and inclusive workplace.
U.S. employers added 1.4 million jobs in August, a slowdown from the previous month. Despite the growth, the jobs numbers still remain far below pre-pandemic levels. The unemployment rate fell to 8.4%. Year-over-year wage growth was at 4.7%.
The Numbers
1.4 million: The U.S. economy added 1.4 million jobs in August.
8.4%: The unemployment rate fell to 8.4%.
4.7%: Wages rose 4.7% over the past year.
The Good
August marked the fourth straight month of job growth, and the unemployment rate fell to 8.4% from nearly 15% in April. This brings the unemployment rate below the peak of the last recession. The New York Times reports that women have made the strongest recovery; however, women took the heaviest hit earlier in the year. The labor participation rate rose to 61.7%, up from last month’s 61.4%, but still below February’s 63.4%.
The Bad
While the continued recovery is good news, it is slowing down. The survey was also taken early in the month of August, before economists say they saw worrying signs in the economy and only shortly after enhanced economic benefits expired. NBC reports that job postings have dropped by 9%, and several large companies have announced additional layoffs or furloughs.
The Unknown
As the recovery slows down, economists are concerned about what is next. The Wall StreetJournal reports that the additional waves of layoffs announced by some large employers in August demonstrate that some companies had prepared for only a short-term shut down. Now, as the pandemic continues, leaders need to make additional adjustments.
There is also still uncertainty over a second coronavirus relief bill. More than one month after many elements of the previous bill expired, Congress has yet to agree on how much and what types of aid should be provided.
As organizations around the globe confront the challenges presented by the coronavirus (COVID-19) outbreak, even the most seasoned talent leaders find themselves in uncharted territory. We’re talking to our experts here at PeopleScout about the issues that are most pressing during this uncertain time.
We are focused on the safety of our employees and clients, friends, families and loved ones. However, it is important for many organizations to keep their talent acquisition functions moving – whether to provide essential services or to serve our communities by providing jobs.
In this episode, we talk about preparing for recovery. We don’t know exactly what the economic recovery will look like, but we do know that employers are facing a very different talent landscape than before the pandemic – and many have leaner talent acquisition teams.
Joining the podcast for this discussion is PeopleScout Client Portfolio Leader Chris Gould.
U.S. employers added 1.8 million jobs in July, a slowdown from the previous month. Despite the growth, the jobs numbers still remain far below pre-pandemic levels. The unemployment rate fell to 10.2%. Year-over-year wage growth was at 4.8%.
The Numbers
1.8 million: The U.S. economy added 1.8 million jobs in July.
10.2%: The unemployment rate fell to 10.2%.
4.8%: Wages rose 4.8% over the past year.
The Good
July marked the third straight month of job growth, and the unemployment rate fell to 10.2% from nearly 15% in April. The biggest private-sector gains were in leisure and hospitality, retail, education and health services and professional services. The Wall Street Journal reports that the number of people who are temporarily laid-off has continued to fall, indicating that more employers are bringing workers back.
The Bad
While the job gains are good news, July’s growth lagged significantly behind the 4.8 million jobs added in June, suggesting the recovery is slowing. Additionally, the gains over the past three months only account for less than half of those lost to the pandemic. Currently, 16.3 million people are still unemployed and looking for work. The Washington Post reports that hiring slowed as coronavirus infections began to rise again, and the economic recovery was weakest in the states with the highest numbers of new coronavirus infections.
The Unknown
Several factors could have a significant impact on the economy. First, the U.S. has had more than 5 million confirmed cases of the virus, with around 50,000 added each day. The New York Times reports that the longer the crisis continues, the greater the impact will be for businesses, especially small businesses.
Also, the additional $600 in unemployment payments expired at the end of July, and congress has yet to agree on an additional relief package. It’s not clear yet how much those payments were boosting the economy and what the impact of losing them will be.
As organizations around the globe confront the challenges presented by the coronavirus (COVID-19) outbreak, even the most seasoned talent leaders find themselves in uncharted territory. We’re talking to our experts here at PeopleScout about the issues that are most pressing during this uncertain time.
We are focused on the safety of our employees and clients, friends, families and loved ones. However, it is important for many organizations to keep their global talent acquisition functions moving – whether to provide essential services or to serve our communities by providing jobs. Many organizations are also now adapting to a newly virtual workforce.
In that spirit, this podcast shares insights from three of our leaders here at PeopleScout about how the COVID-19 pandemic is impacting the future of work, and what HR leaders should be thinking about right now.
You’ll hear from Jennifer Mattocks, PeopleScout’s managing director of the Americas; Robert Peasnell, deputy managing director of the United Kingdom; and Guy Bryant-Fenn, managing director of Australia and New Zealand.
Virgin Media: A Virtual Approach to Call Center Recruiting
Virgin Media was receiving high customer call volumes and needed to hire 500 new customer service roles across the UK. During the COVID-10 lockdown. In just two months. Enter PeopleScout and our fully virtual RPO solution.
5,500Applications Delivered
1,800 Virtual Interviews Assessed
300Offers Made
Situation
As the UK entered lockdown due to the COVID-19 pandemic, enquiries to Virgin Media contact centers—including customer video calls—increased by up to 95% during daytime hours. To maintain excellent service and keep customers connected during this critical time, Virgin Media created more than 500 new contact center jobs in the UK based in Birmingham, Sheffield, Manchester and Teesside.
All 500 new hires needed to start in just two months, with the added complication of taking into account social distancing measures. Due to lockdown, candidates could not attend assessment centers or interviews onsite.
Plus, contact center managers did not have capacity to interview so many candidates while maintaining stringent service levels, and right-to-work onboarding checks could not go ahead as normal with an in-person visual review of original documentation.
Additionally, Virgin Media introduced a number of measures to ensure its people remained as safe as possible while continuing to help answer customer queries. This included providing remote working capabilities, where possible, and flexible working patterns.
All of this experience needed to be brought-to-life for candidates at the outset of their application to ensure swift hiring of the right caliber people. Virgin Media engaged PeopleScout for recruitment process outsourcing (RPO) and tech-charge talent assessment solution.
Solution
With a tight turnaround in play, we formed an agile working group which met twice daily to track project implementation and delivery progress. This rigorous schedule resulted in the deisgn and implementation of a new virtual hiring process in less than two weeks. This new fast-tracked application and assessment process used video interviews, dramatically reducing the processing time and allowing new staff to be selected within days and start within weeks.
To generate applications, we built a new page on the Virgin Media careers site and created an enhanced attraction plan to drive applicants there. We diverted existing candidates (whose roles had been cancelled) into the new process. To improve quality of applications and speed-up hiring, The microsite was built with two areas: a hints and tips page and a page illustrating the overall application process.
Recruiting capacity was scaled up, utilizing our global delivery centers to score over 5,000 application and nearly 2,000 video interviews and to support onboarding of successful candidates without delay.
Results
Within two weeks of launch, PeopleScout’s RPO team had:
Designed a virtual interview process from scratch
Delivered 5,500 new applications
Conducted over 1,800 online video interviews
Instigated 400 final stage qualification calls
Made nearly 300 offers within 4 weeks of kickoff
95% of qualified candidates approved for hire during the Hiring Manager audit step
At a Glance
COMPANY Virgin Media
INDUSTRY Telecommunications
PEOPLESCOUT SOLUTIONS Recruitment Process Outsourcing
ANNUAL HIRES 500 new call center hire
ABOUT VIRGIN MEDIA Virgin Media is a telecommunications, providing telephone, television and internet services in the United Kingdom. It is owned by Virgin Media O2.
“We have built a strong and effective partnership with PeopleScout, shown through the complexities brought about by the pandemic and then a large merger.”
Transport for Wales: Growing the Workforce of a Newly-Created Organization
Supporting the launch of Transport for Wales with recruitment process outsourcing (RPO) for specialist engineering, transportation, project management and support roles.
92%of Candidate Rated the Experience as Excellent
Grew Workforce from 9 employees to 140 During the Initial Engagement
2Languages, English and Welsh
Situation
Transport for Wales (TfW) was created to drive forward the Welsh Government’s vision for a high quality, safe, integrated, affordable and accessible transport network that the people of Wales would be proud of. As a new rail franchise operator, their initial focus was to grow at speed, recruiting 100 or more key staff within challenging timescales, in preparation for a rail franchise switch over.
As a newly-created organisation, Transport for Wales had no recruitment expertise or talent technology to support their ambitious resourcing plans for roles at all levels, from apprentices and graduates to Directors with every level in between.
TfW selected PeopleScout as their sole RPO partner to build their workforce from just nine employees to over 140 and growing, most of which are permanent with some temporary staff and contractors. Another key requirement was to work in both English and Welsh.
Solution
A Unique Service Model
To establish the Transport for Wales recruitment strategy, we placed a senior recruiter on site with expertise and industry experience who could consult and provide solutions to market challenges and engage with hiring communities and other key stakeholders. The immediate challenge was to identify and hire for key senior positions, starting with the Directors. We then worked with these leaders to build their teams from the top down in order to deliver on their goals.
Best-In-Class Candidate Experience
Our off-site recruiting team provided full-cycle RPO, from sourcing to onboarding services, to ensure that candidates received a best-in-class experience right through to their first day and beyond.
Attracting a Wider Talent Pool
As an RPO provider with a creative flair, we were able to help TfW move away from a more traditional marketing style to something which attracted diverse talent. As leaders in employer brand and candidate experience, this extended into a go-to-market broadcasting strategy that encompassed social media, community management and talent pooling. It also maximized the TfW employer brand story and reduced pressure on budgets.
Results
95% offer fulfilment across all levels of roles
Rapid identification and hiring of crucial roles
92% of candidates rated their hiring experience as excellent
Talent pools created for future hiring
A developed and refined future-proof recruitment strategy
PeopleScout have been excellent in the delivery of the recruitment services into Transport for Wales. They are transparent, hardworking and qualitatively focused. All the team have been dedicated to our growth ambition and have represented our brand well to external candidates. I am delighted to work with the whole team as we share our continued success with our partners.
Recruitment Leader, Transport for Wales
At a Glance
COMPANY Transport for Wales (TfW)
INDUSTRY Public Transportation
PEOPLESCOUT SOLUTIONS Recruitment Process Outsourcing, Affinix
ANNUAL HIRES 100+ roles across specialist engineering, transportation, project management and admin support
ABOUT TfW Founded in 2016, Transport for Wales (TfW) was set up by the Welsh Government to make sustainable travel a reality in Wales. Their multimodal, integrated transport network aims to increase the number of journeys on public transport by 40% by 2040.
Transport for London: Early Careers Recruiting to Represent Modern London
Transport for London (TfL) worked with PeopleScout to boost diversity in their early careers program through an employer branding and talent attraction campaign.
2xDouble the Percentage of Minority Ethnic Graduates Hired
16%Increase in Female Apprentice Hires
London’s population is projected to reach 10.5 million by 2041. Plus, 16 to 18-year-olds are experiencing rising youth unemployment with some of the most deprived areas in the country set in London.
As the government body responsible for the day-to-day operation of London’s public transport network, naturally Transport for London (TfL) plays a major role in contributing to the capital’s growth, and opening doors for people from disadvantaged areas was absolutely vital. Supporting this growth means recruiting, retaining, and developing a workforce of Londoners who will take part in the design of their city.
Transport for London (TfL) values the importance of diversity and inclusion and social mobility. Being representative of London is something their success is measured on, and the same standards apply to their apprenticeship and graduate schemes.
These early careers schemes had proven successful in the volume of applications received but weren’t reaching talent from all walks of life. TfL needed a diverse pipeline that truly represented modern London. It was time to rethink their entire student attraction activity. That’s where PeopleScout came in.
Situation
TfL needed to recruit 32 graduate roles and 109 apprenticeships. As their talent partners, our primary objective was to champion these fantastic opportunities to a broader apprentice and graduate talent pool in order to increase female applicants and those from minority ethnic backgrounds.
This meant removing barriers to recruitment, challenging stereotypes and overcoming negative perceptions. We needed to change TfL’s attraction process so that people from every pocket of society would be interested in the unique opportunities available. And we needed to re-position their early careers employer brand as a progressive organization in which everyone—regardless of background or financial situation—could excel.
Solution
A New Brand To Make Better Connections
Together, we transformed the way TfL recruit diverse talent. Ensuring skilled people from all walks of life have a chance to shine in the application and assessment process, our creative team used their audience knowledge to build a dynamic unexpected youth brand, “The Next Move”, which was designed to look different from other TfL communications, using vibrant, colourful graphics that would better connect with female and diverse applicants. We then shaped a comprehensive outreach program and a completely new assessment process with the aim of helping these candidates show TfL who they are and what they’re truly made of.
A More Targeted Approach
For Tfl’s apprenticeships, we designed a new strategy for our school outreach program, “Moving Forward.” We identified 251 of the poorest secondary state schools and ran over 50 events, with additional events in three of the most deprived boroughs in London: Newham, Tower Hamlets and Haringey.
Boosting Success in Assessment Centers
From experience, we know that young people often need to build their confidence by filling gaps in their knowledge. To address this, we created “Route-into-Work,” a pre-employment course for all candidates to fill gaps in their knowledge and provide them with the tools, insight and confidence to be successful at assessment centers.
Results
We achieved amazing results with the graduate recruitment campaign, comfortably filling all of the roles and meeting the social mobility criteria.
Doubling the Percentage of Graduate Hires from Minority Backgrounds
Most importantly we doubled the percentage of minority ethnic graduates from 27% to 54%, and we substantially grew the proportion of female hires from 18% to 29%.
Growing Female Apprentice Hires by 16%
Similarly strong results were achieved in the apprentice pool, as we dramatically grew the proportion of female hires from 20% to 36%. The Route-into-Work program delivered apprenticeship hires, of which 33% were female and 67% were minority ethnic.
At a Glance
COMPANY Transport for London (TfL)
INDUSTRY Public Transportation
PEOPLESCOUT SOLUTIONS Talent Advisory
ANNUAL HIRES 32 graduate roles and 109 apprenticeships
ABOUT TfL Transport for London (TfL) is the government body responsible for the day-to-day operation of London’s public transport network and management of the capital’s main roads.
For the past few years, the recruitment and staffing industry have been under constant pressure to reevaluate their service delivery strategies. Despite the recent turbulence we’ve been experiencing due to COVID-19, recruitment process outsourcing (RPO) offers organisations the opportunity to augment their recruitment functions to support growth in other regions.
Business Growth in Europe
For the past 10 years, the offshoring market in countries like Poland has beenan increasingly large component of the global business operations. Offshoring certain business functions offers savings, and enterprises have become more comfortable with managing remote teams—whether through an outsourced provider or their own offshore service centers.
In addition, global businesses are looking to other countries to access a wider, well-educated and experienced talent pool. Some jobs require highly skilled talent, and in order to fulfill all their requirements, expanding to a new region—and acquiring the best skills at a lower operating cost—will become a kay component of organisational resilience going forward.
5 Ways RPO Can Support Your European Expansion
Europe is made up of 44 countries, all with their own distinct traditions and languages. A homogenous approach won’t delivery against your European talent acquisition goals. An EMEA RPO partner can help you navigate these differences and find talent as rich as the cultures this continent has to offer.
Here are five ways a global RPO partner can help your organisation expand in Europe.
Access local recruitment expertise. With a regional presence and experience, your RPO partners can provide insights into local labour markets and what matters to talent in different areas of expertise or the region.
Expand your talent pool. Whether you’re opening a new factory or looking for top software engineers, RPO can open up a whole new pool of talent for your organisation.
Gain efficiency and agility. Access to flexible teams and leading recruitment technology means your RPO can help optimise your processes and reduce the burden on local hiring managers.
Adapt your approach to cultural nuances.Global RPO partners have multilingual teams who can tailor your recruitment processes to account for the location and role.
Ensure compliance. Each country has its own recruitment regulations and laws, and an RPO partner can help you stay compliant and mitigate risk.
Need an RPO Partner in Europe?
Looking for help with talent acquisition in Europe? Contact us to learn more about our talent acquisition solutions in EMEA.