Category: Talent Acquisition Strategy

2018 Q2 Economic Snapshot

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Very strong job growth and low unemployment were the headlines in many of the world’s leading economies in the second quarter of 2018.

However, employers were faced with the increasingly difficult tasks of attracting and retaining talent in a historically tight labor market and responding to impending wage pressures. Uncertainties in the labor supply created by Brexit and immigration restrictions were exacerbated by the introduction of tariffs by the U.S. and the threat of trade wars in the coming months.

Strong Job Markets


Robust job markets and low unemployment were the major headlines in many of the world’s largest economies in the second quarter of 2018. In the United States, the number of job openings reached a record high. In the UK, the unemployment rate was at its lowest point in over 40 years. Canada continued to experience record low unemployment and Australia had consecutive months of job gains.


Faced with the tightest job markets in recent years, employers are focused on effective strategies to attract and retain talent. The difficult hiring environment is leading companies to rethink established norms in their recruitment processes. The strong demand for talent is showing no signs of easing. Companies seeking to compete successfully should consider developing strategic partnerships with organizations that can provide intelligence and expertise in recruitment and retaining talent.

Wages – The End of Stagnation


Wage pressures have intensified in response to the robust labor market. In the U.S., the period of relative stagnation in wage growth is perceived to be ending. In the UK, salaries for new positions rose at their fastest rate in three years. Canadian workers experienced their biggest wage increase in nearly a decade. And even without significant inflation, the national minimum wage in Australia is slated to increase 3.5 percent on July 1, potentially impacting salaries nationwide.


With record job openings available in many markets, employees are increasingly confident that they can easily find a new job. Since the top reason for workers to find a new job is to increase their salary, employers face the dual challenge of adjusting their wages as needed to retain their current workers and set starting salaries for new jobs at levels that will attract talent. Arriving at wage levels that will not unnecessarily strain profit margins is becoming an increasingly important task for human resource professionals.

Barriers to the Free Movement of Talent


Uncertainty over the availability of talent comprised of foreign nationals due to Brexit and immigration restrictions in the U.S. continued to raise concern. In the UK, sectors such as social care, technology and hospitality could be impacted especially hard. A recent survey found that one in ten hospitality workers are considering leaving the UK due to Brexit. The same survey found that 18 percent of hospitality managers are finding that recruiting new staff is more difficult due to Britain’s status change with the EU. In the U.S., restrictive immigration policies are blamed for the stall in IT job growth. Adding to the uncertainty of the U.S. workforce, the future status of the more than 600,000 U.S. residents granted permission to live and work under the Delayed Action for Childhood Arrivals (DACA) act was left unsettled by the U.S. Congress.


The policy-driven talent shortages in some countries are contrasted by others such as Japan and Canada that are making efforts to attract talent from abroad. The ambiguities in possible policy decisions regarding immigration and the free movement of labor drive the need for employers to craft flexible recruitment programs. Companies that find it difficult to find full-time talent may want to consider Managed Service Providers (MSPs) that provide scalability through contingent labor.

Social Media, Privacy and Sourcing


There are important developments affecting the way employers utilize social media for recruitment and employer branding. New regulations in Europe under GDPR went into effect on May 25. GDPR requires businesses to protect the personal data and privacy of EU citizens for transactions that occur within EU member states. GDPR applies to any collection of data for those living or working in the EU, regardless of the location of the organization accessing this data. The new rules include notification requirements, up-front security measures and other privacy safeguards.


The data breach at Facebook, the world’s largest social media platform, impacted 87 million users whose personal data may have been unknowingly shared with Cambridge Analytica. A study released in April showed that confidence in Facebook dropped by 66 percent since the Cambridge Analytica scandal emerged. In addition to implementing new compliance requirements necessitated by GDPR, businesses may need to review and adjust their recruitment and marketing practices in order to be effective in the evolving social media landscape.

Addressing the Skills Gap Part I: Apprenticeships


Employers that are struggling to find talent with the right skills can turn to a solution that pre-dates the industrial revolution: apprenticeships. Apprenticeships enable workers to gain valuable skills and experience so that they can be fully productive employees at a future date. In the United States, the Department of Labor announced resources for apprenticeships as part of a public/private partnership. For example, employers can apply for registered apprenticeships and create “on-the-job training contracts” and have costs reimbursed for up to 50 percent of wage rates paid to participants for up to six months.


In June, it was announced that the Skilling Australians Fund will be providing AUD 1.5 Billion to create as many as 300,000 apprenticeships. Public resources for apprenticeships are available throughout the EU, the UK, Canada and many other countries. To successfully incorporate apprentice programs as part of an overall talent attraction and training strategy, and learn the steps to take to access public funds, organizations can utilize the expertise of a Recruitment Process Outsourcing (RPO) company to ensure that its workforce has the right skills to succeed for many years to come.

Key Takeaways for Employers


Historically strong job markets combined with the uncertainties brought about by restrictions in immigration and trade requires employers to be both intelligent and agile in attracting and retaining talent. Organizations can expect to reap the benefits of a strong economy only if they have the talent to support the growth that can be generated by a prosperous environment.

How to Effectively Recruit Recent Graduates

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How to recruit college graduates is a question many talent leaders are wondering. According to UCLA’s Trends in Executive Development report, “experienced leaders of the Baby Boomer generation continue to retire at a pace of 10,000 per day.” The mass exodus of Baby Boomers from the labor market leaves a sizable workforce gap void of seasoned and experienced talent.

When Generation Xers and Millennials ascend into leadership positions to replace Baby Boomers, mid and entry-level positions are left vacant. To fill these positions, organizations are increasingly turning to recent college graduates. In fact, according to a survey conducted by CareerBuilder, 74 percent of employers say they plan to hire recent college graduates.

For organizations looking to fill the gap left by retiring Baby Boomers, recruiting and hiring talent from universities is a significant first step. In this post, we examine some of the best practices and strategies for attracting, recruiting and hiring recent graduates.

The Benefits of Recruiting Recent Graduates

how to recruit college graduates

Most recent graduates do not have years of experience. However, what recent graduates lack in professional experience can be made up elsewhere. Many students participated in volunteer activities, performed leadership roles in student government or clubs and completed internships, all of which can help develop critical workplace skills. From technical aptitude to adaptability, recent grads have characteristics that can be additions to an organization. Below, we list some of the main benefits of hiring recent graduates.

Recent Graduates are Ambitious and Enthusiastic

After graduation, many students are eager to begin their professional careers; they want to make a good impression, and they want to succeed. A sense of gratitude may also accompany a new hire’s desire to do well in their role. This can lead to a strong commitment to the job from the beginning, not to mention enthusiasm to learn, succeed and make leadership proud.

How to Recruit College Graduates: Recent Graduates are Tech-Savvy

Recent graduates have more than likely spent time learning and mastering new technologies, making their ability to navigate technology capabilities and functionalities second nature. What’s more, according to an Accenture Strategy Survey, nearly three-quarters of Generation Z graduates have taken digital, coding or computer science-related courses in college. These skills can give newly hired graduates the opportunity to share their knowledge across an organization.

Greater Diversity Outcomes

With graduating classes becoming more and more diverse, organizations have a prime opportunity to recruit talent from all walks of life. Pew Research projects that both colleges and workplaces can expect to see diversity numbers climb, with the class of 2025 expected to be the most diverse in history. Embracing diversity and incorporating it into overall corporate culture has many benefits. According to a survey conducted by McKinsey and Company, businesses with a diverse workforce are 35 percent more likely to have financial returns above industry averages.

Long-Term Talent Development

Hiring graduates with a focus on developing their skills affords organizations the opportunity to recruit the leaders of the future. Organizations can groom recent graduates and equip them with the knowledge and skills needed for leadership. By thinking about the long-term needs of the organization, hiring managers can proactively fill forecasted skill, workforce and leadership gaps with fresh, ready-to-learn talent.

Sourcing Strategies for Graduate Recruitment

When recruiting recent graduates, organizations need a strong presence where they work, live and go to school, and on the platforms and technologies they use the most. The majority of today’s job seekers are Millennial and Gen Z graduates. To reach young talent, it’s critical for organizations to connect with them in the ways they can relate to – namely through technology. Below we list digital sourcing strategies for recruiting the best talent among recent graduates.

How to Recruit College Graduates on Social Media

Social media’s ubiquitous nature makes it one of the most effective recruiting tools for Generation Z and Millennials. To reach a large pool of recent college graduates, organizations should establish recruiting-focused Twitter, LinkedIn and Facebook pages that highlight entry–level jobs. Social media recruiting tips include:

  • Organizations should utilize Facebook’s Graph Search option to find graduates with the specific skills and educational background they are looking for in candidates.
  • On LinkedIn, organizations should use keywords relevant to open entry-level positions to attract the right candidates as well as posting jobs in alumni groups and university pages.
  • Although Twitter only permits 280 characters in posts, organizations can add videos about their company and photos to gain the attention of recent graduate candidates.

How to Recruit College Graduates with Mobile Recruiting

Mobile recruiting is growing in popularity as more and more applicants initiate their job searches on their mobile devices. What’s more, 86 percent of recent graduates feel positive about text messages being used in the hiring process. Organizations can use SMS messages to alert candidates of new opportunities and coordinate interviews. While sending job opportunities via text can be valuable, organizations should be careful not to overdo it. Mobile-first talent technology like PeopleScout’s Affinixtm can help organizations leverage mobile recruiting tools to attract candidates to entry-level positions.

How to Recruit College Graduates with your Career Page

Members of Generation Z are always online, so investing in a well-designed, content-rich career page for students to learn about job openings is well worth the effort. If possible, organizations should personalize a graduate career page to highlight alumni hires, experiences of recent graduates and employer messaging tailored to engage potential hires. Graduate career pages should be optimized for search engines and contain relevant keywords so job seekers can easily find it. Links to the page should also be included in communications with prospective candidates.

Building and Maintaining Campus Relationships

Establishing strong relationships with universities is a key element to successful campus recruiting.

To start, organizations should reach out to a university’s career center. When communicating with the career center’s team, focus on communicating what your organization can do for the university. Once a relationship is established with the career center, organizations should leverage that connection to start nurturing relationships with faculty.

Organizations should become active in different campus activities, even if those activities are not directly associated with recruiting. For example, organizations can identify student groups related to their industry and offer sponsorship programs for activities and events. This is a great way to create a positive brand image on campus. Below, are other strategies for building relationships with universities and students:

  • Organizations should participate in networking events hosted by the university to get to know potential candidates, faculty members and administrators who can help in campus recruiting efforts.
  • Sponsoring academic conferences and events on campus is a good way to illustrate that an organization is a committed partner in supporting the educational mission of the university.
  • To boost their profile on campus and connect better with faculty, organizations should enlist the help of campus ambassadors, former employees who attended that university.
  • Organizations should offer university staff and students on-site visits to their offices to share their company culture and give students a real-world view of the workplace.

Engaging Students at Campus Career Fairs

College job fairs have been a mainstay of on-campus recruiting for years. To make the most of career fairs, organizations should carefully tailor their approach. In this section, we outline ways organizations can better engage students at campus career fairs.

Bring the A-Team

Companies should bring employees who will best reflect the experiences and values most important to students. Often, these individuals will be recent graduates, members of the leadership team or employees currently holding positions candidates may be particularly interested in.

When selecting a team, identify employees who have a passion for what they do and an interest in building relationships with students. Also, organizations should be sure to have a diverse range of culture, ethnicities, age, and gender reflected in the recruiters at their booth.

Follow Up

After the career fair has wrapped up, organizations need to quickly follow up with interested candidates to refresh their memories and keep the organization “top-of-mind” as a future potential employer.

Tips for post-career fair follow up include:

  • Collect as much information from students as possible and use that information to send targeted emails. For example, you could notify them of upcoming hiring events in their area.
  • Provide candidates with specific, tangible options for engaging with your organization after the career fair, such as the contact information of employees they met with at the fair, links to career pages and invitations to in-house meet and greets.

Timely, professional and tailored correspondence to candidates immediately after a career fair can help improve employer branding.

Outsource College Recruiting

When recruiting recent graduates, organizations can leverage the technology of outside resources to maximize their reach and improve recruiting outcomes. From sourcing and screening to interviewing and hiring recent graduates, a Recruitment Process Outsourcing partner can effectively deploy technology to assist organizations with campus talent acquisition.

As the business landscape becomes more complicated and organizations look to adapt to changes, hiring young forward-thinking graduates will continue to be important for remaining competitive. Learning how to recruit college graduates and implementing an RPO solution to help recruit students can imbue an organization with expertise, tools and technologies to create the talent pipeline needed to find tomorrow’s talent today.

Removing Barriers to Employment for the Long-Term Unemployed

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With record low unemployment rates in the U.S., the UK and other leading economies, recruiters seeking to attract talent may assume that everyone who wants a job already has one.

However, this not the case, even in the strongest job markets. In the United States, the long-term unemployed are defined as those who have been out of work for 27 weeks or more and are searching for work. In May 2018, when the jobs report numbers were so good that reporters ran out of words to describe it, nearly 1.2 million individuals had been out of work and seeking employment for more than six months. The long-term unemployed made up 19.6 percent of all unemployed Americans and May was the first month that this percentage fell below 20 percent since the Great Recession.


During an economic downturn, the primary cause of long-term unemployment is simple: there are not enough jobs to employ those who want them. With the robust job growth over the last year, the ranks of the long-term unemployed in the U.S. have fallen by one third. During times of economic growth, causes of extended joblessness can often directly be addressed and remedied by employers.

Minding the Resume Gap


Imagine being a qualified job candidate who has been unemployed for nearly a year. After months of disappointment, a job comes along that looks like a perfect match. The candidate is excited to fill out the online job application, but when they reach the job history section, they see: “Please provide the start and end dates for all of your jobs. If there is a gap of more than six months, please provide an explanation.” These types of questions related to job history can be used (or perceived to be used) as a way to disqualify candidates.


The Deloitte Handbook A Guide to Recruiting and Hiring the Long-Term Unemployed recommends removing filters and screening procedures that ask for dates of last or current employment and automatically eliminate unemployed and long-term unemployed applicants. It also recommends confirming that Applicant Tracking Systems do not screen out resumes based on employment status.

Avoid Date Limits on Valuing Experience


A candidate who has been unemployed for an extended period may possess years of valuable experience and required job skills. It is important for employers to consider whether their recruitment process gives undue weight to recent expertise over cumulative experience gained over the lifespan of a career. Recruitment processes should also be checked for any potential bias against older applicants. An OECD study found that incidence of long-term unemployment increases with age throughout many developed economies.

Addressing the Jobs Skills Gap


A lack of in-demand skills can be a cause of long-term unemployment. There are many resources for those with extended joblessness to receive training in marketable skills. Employers can build relationships with these agencies as part of their recruitment program to target the long-term unemployed. In the UK, skills training can be included as a standard benefit offered to the long-term unemployed. In Australia, the government offers programs which include training for young people and others who either have or risk having long periods of unemployment. Job training services are also provided by Canadian provinces and by state and local governments in the United States.


There are numerous local initiatives in which businesses combine with non-profit agencies to provide skills in an effort to fight all levels of unemployment. Employers can work closely with these agencies to source available talent (often at reduced sourcing costs) and even partner with them as part of their community engagement efforts.

Reaching the Hard to Reach Talent


Individuals without strong job seeking skills can have their period of unemployment unnecessarily extended. For example, the process of finding a job 15 years ago was completely different from today. Reaching candidates whose experience and skills may add tremendous value to your organization requires specialized expertise in sourcing that may not be readily available in many human resources departments. Several leading employers have turned to Recruitment Process Outsourcing (RPO) companies to successfully attract and recruit hard to reach talent.

Worth the Effort


For many companies, the incentive to attract the long-term unemployed may be to meet a need to recruit the last pool of available talent in a tight labor market. However, hiring those with extended unemployment can potentially be a valuable tool in retaining talent, which is critical in today’s economy. The Deloitte handbook cites a White House study that found that companies that hire the long-term unemployed experience higher retention rates and greater workforce loyalty. Given the potential for talent attraction and retention, employers who remove barriers for the long-term unemployed may gain an unexpected competitive edge in an increasingly challenging market.

PeopleScout Australia Jobs Report Analysis – May 2018

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The Australia Bureau of Statistics released its May Labour Force Key Statistics.  Australian employment rose, but the growth was slower than expected. Job gains were led by increases in part-time work while the jobless rate ticked down to its lowest since November at 5.4 per cent.

The Numbers

12,000: The Australian economy added 12,000 jobs in May.
5.4%: The Australian unemployment rate decreased to 5.4 per cent.
65.5%: Labour force participation decreased to 65.5 per cent.
+6: According to the NAB, the business confidence index fell to +6 index points.

Upside

There was a net job gain of 12,000 in May which continues the trend of monthly job growth. Australia’s annual job growth of about 3 percent was nearly double the U.S. rate of job creation of 1.6 percent. Since May 2017, full-time employment has increased by 178,800, and part-time employment has increased by 125,100.


The labour force participation rate decreased in May but is still near historic highs with more women and senior citizens entering the workforce.  In seasonally adjusted terms, the largest increase in employment was in Victoria (up 22,100), followed by Queensland (up 5,000), and New South Wales (up 2,800). The only increase in the seasonally adjusted unemployment rate was in Tasmania (up 0.5 per cent).

Downside

The job gains in May still fell 6,000 short of the 18,000 expected increase. The net increase was only possible due to a surge in part-time jobs that offset a decrease in full-time employment. The business confidence index fell to +6 – the level of its long-term average. Wages continue to grow at a slow pace which is causing concern about the possible negative impact this will have on the economy as a whole.

The Unknown

The Fair Work Commission raised the minimum wage by 2.4 per cent to $672.70 a week. This will mean an extra $15.80 per week for the 1.8 million workers who are paid the minimum wage in Australia. The increase takes effect on July 1 and equates to a minimum hourly rate of $17.70. It is unclear what the impact of this increase will be on the unemployment rate or the stagnation in wage increases.

Wages and Recruitment: The Pressure is Building

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The scene opens on an office with two people facing each other across a desk. The one behind the desk takes a piece of paper, and with exaggerated strokes, writes an unseen amount on it, folds the paper in half and slides it slowly across the desk. There is tension in the air. The paper is picked up, unfolded and read. The entire plot hinges on whether the amount, still invisible to the viewer, is accepted or rejected.


This performance has played out countless times in films and television. For those attempting to recruit in a tight labor market successfully, the scene may feel uncomfortably familiar. Determining the right wages at a time of record high job openings and low unemployment can seem daunting. Offering wages that are too low can repel the best talent while offering wages that are unnecessarily high can impact a company’s profitability. Understanding the causes of current wage pressures allows employers to make informed decisions that will have a positive effect on their recruitment processes.

Beyond Supply and Demand – Causes of Wage Pressure


It’s Economics 101: the cost of goods and services rises when their availability decreases. When there is low unemployment, available workers are scarce. Companies that are seeking to attract talent need to source from a limited pool of available workers as well as those who are currently working. Since the top reason that workers quit their jobs is for better pay elsewhere, companies face the dual challenge of finding the right salary to offer the workers they are trying to attract while also retaining their current employees. While this supply and demand scenario is critical to understanding wage pressure, there are other important factors at work in today’s recruiting environment.

Cost of Living


Inflation continues to remain at low levels in most major economies, but the cost of living is rising in many places due to high housing costs. This is especially true for cities that are major business and financial centers. Companies recruiting in these metropolitan areas need to factor in the current and potential future cost of living in these locations when determining their wage ranges as part of an effective recruiting strategy.

Competition from the Gig Economy


The gig economy was not a factor in wage pressure just a few years ago, but it is an integral part of today’s talent landscape. Uber, the company that pioneered this sector, surpassed 1.5 million drivers last year. Some people may choose to work in the gig economy to supplement the income from their full-time job. For others, gig work is an attractive alternative to working set hours, going to an office and having a boss. Employers that want to attract talent to fill positions need to know how their pay rate compares with those choosing to work as independent contractors by tapping on an app.

Skills Shortage


Supply and demand also come into play when there is a shortage of workers who possess the skills required by employers. Consider the example of welders in the United States. In 1988, there were about 570,000 welders compared to the 360,000 in 2012. The American Welding Society estimates a 290,000 job deficit for welders by 2020. Due to a skill shortage and increased demand, wages for welders are projected to increase at nearly double the rate of the average U.S. worker. Wage pressure resulting from skills shortages is a global issue. Employers should factor in the availability of workers with the required skills, or those that can be trained to acquire these skills, when determining pay rates.

What Wage Pressure? 


The United States and other leading economies have had sustained job growth and low unemployment for an extended period, without experiencing a corresponding substantial increase in wages. However, there are leading economists that believe that wage inflation is imminent. Employers seeking to find the best talent should take note of the current economic environment in the U.S. A recent article in Bloomberg reported that during the current economic cycle, the rate at which workers are leaving their jobs has accelerated to its highest point in the in the past six months. This is an indication that the strong labor market is giving workers the confidence that if they leave a job, another one can be found without difficulty.


The article goes on to cite The Federal Reserve Bank of Atlanta’s wage measure for job switchers, those who leave one employer for another, which has also rebounded to cycle highs in recent months, reaching 4.4 percent in March and 4.0 percent in April. The article goes on to note: “Seems like a good environment for workers facing stagnating real wage growth to start looking for greener pastures, forcing firms to boost compensation more aggressively to attract and retain employees.”

Relieving the Pressure on Recruitment


With so many factors to consider, how can employers determine a wage range that will attract the best talent without causing an unnecessary negative impact on profit? Companies should consider partnering their recruitment efforts with an expert, such as a recruitment process outsourcing company or RPO.  RPOs can provide information on current wage rates, the supply and demand of workers in specific markets and the ability to source and screen candidates. An RPO provides the steps to deliver the best candidates while delivering an employer the insight to offer the right wages to attract the right talent. By partnering with an RPO, an employer can leverage an understanding of wage pressure into an asset in its recruitment efforts.

Prospects for the Class of 2018

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The National Center for Education Statistics estimates that approximately 1.9 million bachelor’s degrees will be awarded in the 2017-2018 academic year in the United States. These graduates will be among the millions worldwide who will be entering the job market with a degree for the first time.

A strong economy with low unemployment and robust growth projections should indicate that the graduates of the Class of 2018 have bright prospects for finding their first job after graduation. And while it is true that many graduates will benefit from the current strong demand for talent, others may face unexpected challenges. NACE, the National Association of Colleges and Employers, reports that employers plan to hire 1.3 percent fewer graduates from the Class of 2018 for U.S. positions than they did from the Class of 2017.

The study notes that volatility in just a few industries will impact the overall hiring outlook. Two industries, in particular, are driving this overall decrease: insurance firms and retail employers. Insurance firms responding to the survey projected a decrease in hires by 42 percent due to the recent natural disasters, including Hurricanes Harvey and Irma, which led to high payment amounts for catastrophic losses. Retail employers plan to decrease their hires by almost 33 percent, citing the changing landscape of the industry and a lack of job openings as the key factors. 2018 marks the first decrease in this hiring projection since the Class of 2010.

Despite the obstacles that some new graduates may face, the members of the Class of 2018 in the U.S. will be entering the workforce at a time of record high job openings. Yet a study released earlier this month notes that three-quarters of this year’s graduating class do not have jobs lined up after graduation. In the current extremely competitive job market, employers hoping to attract these first-time job seekers need to understand their concerns and expectations.

Wage Pressures for 2018 Graduates

According to the Federal Reserve Bank of New York, approximately 70 percent of college students borrow money to pay for their tuition. The average debt to a student borrower is $27,975. A significant number of candidates from the Class of 2018 will be entering the job market with student loan debts that they will seek to pay off as soon as possible. This makes compensation a major factor in choosing a job. In addition, many of the most attractive employers are located in large cities with a high cost of living. The Class of 2018 job seekers may find themselves balancing their need for a sizable paycheck with other attributes employers have to offer.

Which Majors Pay the Most?

While many students choose their field of study based on interest and applicability to their future careers, graduates of the Class of 2018 can evaluate their choices based on projections of their future earnings. In the NACE Winter 2018 Salary Report for the Class of 2018, students with engineering, computer science and math and sciences degrees are the top-paid graduates at the bachelor’s degree level.

The average starting salary for a 2018 graduate in engineering is $66,521 followed closely by those majoring in computer science at $66,005. Math and sciences majors will average $61,867. While an undergraduate degree in business was once thought of as a ticket to a high starting salary compared to a degree in social sciences and humanities, the initial average earning for business is only slightly higher for the Class of 2018. A business major can expect an average income of $56,720 while a social sciences major can plan to earn an average of $56,689 and a humanities major will average $56,688.

Global Outlook

For much of the world’s largest economies, the strong demand for talent provides a good environment for first-time job seekers. The notable exception is in much of southern and eastern Europe where youth unemployment remains high. Due to the uncertainties related to Brexit, especially regarding the free movement of labor, the Class of 2018 is potentially facing fewer options of work locations than their predecessors.

In Canada, new college graduates can use data from the recent BMO’s Regional Labour Market Report Card to help determine the best locations in which to search for jobs. Moncton, New Brunswick topped the City Labour Market Performance Rankings, increasing from a six-year low. British Columbia and Ontario are showing the strongest results for overall job market conditions by province. Local unemployment, job growth and business investment are some of the elements that contribute to the ratings provided by the report.

Australian college graduates are increasingly turning to part-time work for employment. The Guardian reported earlier this year that there is a pronounced trend towards part-time employment among graduates. Between 2008 and 2017, the proportion of employed graduates working part time increased by 17 percentage points to 38 percent of all graduates. And part-time employment is growing in Australia. In the March 2018 Australian Employment Report, part-time jobs grew while full-time jobs decreased.

UK Study with Global Implications

A study from Universities UK found that one in three graduates are mismatched to the jobs they find after leaving their university studies. While universities and students themselves can take steps to address this issue, employers need to attract the right people at the right time for the right positions. Given the amount of early attrition in much of the world’s major economies, this problem is not limited to the UK.

Finding the Perfect Match

A key element in solving this “graduate to job mismatch” is in the recruitment process itself.  Take a moment to consider what attributes a new graduate should have to be an ideal candidate for your company. How can you know if these ideal candidates exist? And if they do exist, how can you successfully compete with other companies to attract them?

What steps do you need to take to increase the chances that it will be your job offer that is accepted and not one of your competitors? If the answers to these questions are not addressed in your current recruitment process, it may be time to turn to an expert. Enterprises that have shown success in the delivery of products and services should consider turning to a Recruitment Process Outsourcing (RPO) company to provide the needed expertise to attract the millions of new graduates coming into the job market this year. And with many graduates receiving their degrees this month and job markets tighter than they have been in years, the time to act is now.

Changing Workforce Demographics: Aging Talent

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An Aging Workforce in an Aging World

For the first time in history, the majority of people on earth will live to 60 years of age and beyond. This is true in high, medium and low-income nations. People are not only living longer, but they are working longer. In the U.S., 23 percent of workers are aged 55 and older. Over one-third of Canadians over the age of 55 are still working and in the UK, workers over 50 comprise 27% of the workforce. In Australia, labor force participation, (those working or actively looking for work), for those 55 and older has never been higher. The demographic shift towards an aging workforce brings both unprecedented opportunities and challenges for organizations that want to attract and retain talent.

A Talent Ticking Time Bomb?

The Deloitte 2018 Global Human Capital Trends Study notes that “population aging poses a workforce dilemma for both economies and organizations. Thirteen countries are expected to have ‘super-aged’ populations—where more than one in five people is 65 or older—by 2020, up from just three in 2014. These include major economies such as the United States, the United Kingdom, Japan, Germany, France, and South Korea. China’s 65-and-older population is projected to more than triple from approximately 100 million in 2005 to over 329 million in 2050. In fact, analysts have estimated that 60 percent of the world’s population over 65 will live in Asia by 2030.”

The study notes that almost all developed economies have a birthrate below the “replacement rate,” or the rate of babies born that will ultimately replace previous generations, leading to a potentially catastrophic talent shortage. Citing the example of Japan, now the world’s oldest country in terms of population, a shortage of approximately 1 million workers in 2015 and 2016 is estimated to have cost the economy $90 billion.

To bolster its declining talent pool, Japan changed its laws so that descendants of Japanese citizens living abroad would be attracted by newly available long-stay visas and work permits. It had particular success in attracting workers from Brazil with as many as 320,000 Brazilians of Japanese descent working in Japan ten years ago, although that number has decreased in recent years. China also faces a steep plunge in its working population in the coming years and has made it easier for those of Chinese descent to live and work there.

Despite these developments in Asia, addressing a workforce shortfall through immigration appears to be an increasingly remote option for many advanced economies. A recent article in the Economist explains that the trend in many countries has been to place increased barriers to foreign talent. For organizations seeking to successfully navigate this demographic reality, success may depend on leveraging the talent of an older workforce, mentoring, succession planning and redefining the concept of retirement from work.

Older Workers as Outperformers

There is evidence that older workers have an edge on their younger colleagues regarding work performance. A study conducted by a management professor at the University of Pennsylvania’s Wharton School of Business concluded that older workers often out-perform their younger colleagues, stating “when it comes to actual job performance…older employees soundly thrash their younger colleagues…every aspect of job performance gets better as we age…I thought the picture might be more mixed, but it isn’t.”

Creative solutions which include accommodating the needs of older workers can help utilize their talent and positively impact a corporation overall. The Economist cites an example from BMW:

“When BMW, the German car maker, faced an outflow of workers it applied an adaptive approach for older workers with great success:…facing an imminent outflow of experienced workers, [it] set up an experimental older-workers’ assembly line. Ergonomic tweaks, such as lining floors with wood, better footwear and rotating workers between jobs, boosted productivity by 7%, equaling that of younger workers. Absenteeism fell below the factory’s average. Several of these adjustments turned out to benefit all employees and are now applied throughout the company.”

Employer Brand Ambassadors and Mentors

Older workers, especially those with significant tenure in an organization and industry, can serve a critical role in its talent lifecycle. Older employees can become employer brand ambassadors by effectively sharing their success stories with prospective candidates as part of an organization’s recruitment marketing messaging. Older employees can be mentors for new workers being onboarded that not only teach necessary skills but also help acclimate a new employee to the organization’s corporate culture. If a company’s workforce is reflective of the economy as a whole, then it should plan to see an exit of at least one-fifth of its employees due to retirement in the next ten years. These older workers form a natural base for a mentorship program which can play an essential role in succession planning.

Redefining Retirement Age

The days when turning 65 meant the end of working life appear long gone. Some workers past the traditional age of retirement have no choice but to continue working due to a lack of savings. Others choose to keep working, on a full or part-time basis, or as consultants. Companies will also have to compete with the trend towards entrepreneurship for talent 65 and over because this age group is more likely than any other to be self-employed.

Having the Competitive Advantage

What does an aging workforce mean for the overall talent strategy of your organization? Does your organization have the necessary insight into the challenges and opportunities that an aging workforce presents? If not, this expertise can be provided by recruitment experts such as a recruitment process outsourcing (RPO) company. Whether your strategy is developed in-house or with a partner such as an RPO, the current tight job market drives the need to build a talent program that integrates the reality of this important workforce demographic. As the Deloitte study concludes “The demographic math is undeniable: As national populations age, challenges related to engaging and managing the older workforce will intensify. Companies that ignore or resist them may not only incur reputational damage and possible liabilities but also risk falling behind those organizations that succeed in turning longevity into a competitive advantage.”

PeopleScout U.S. Jobs Report Analysis – May 2018

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The Labor Department released its May Jobs Report showing 223,000 jobs added to the U.S. economy, which continues the longest stretch of job growth in the nation’s history and brings the unemployment rate to 3.8 percent.

The Numbers

223,000: The economy added 223,000 jobs in May.
3.8%: The unemployment rate dropped to 3.8 percent.
2.7%: Wages increased 2.7 percent over the last year.

The Good

The 223,000 jobs added in May surpassed analyst expectations and lowered the unemployment rate to 3.8 percent. Employment grew in industries including healthcare, retail and construction. The Labor Department revised its figures to show a show a net increase of 15,000 in March and April.
There was good news for Americans without a high school diploma. The unemployment rate for workers 25-years-old and older with less than a high-school diploma dropped to 5.4 percent, down from 6.2 percent at the same time last year and a large decrease from the 8.5 percent rate in September 2016. The unemployment rate for college graduates is holding steady at 2.0 percent.

The Bad

Employers face significant challenges in a market with increasing job openings and very low unemployment. More workers are quitting their jobs, which increases the pressure on employers to take immediate action to both attract and retain talent.
The employment gains made by those with less than a high school diploma may increase the difficulty of staffing seasonal summer jobs, an issue already caused by overall low unemployment. The scarcity of workers for seasonal businesses could lead to higher costs for business owners who may pass the increased costs onto consumers.

The Unknown

There is uncertainty over the repercussions of the recently imposed tariffs on key U.S. allies. The White House announced that the EU, Canada and Mexico will face 25 percent tariffs on steel and 10 percent on aluminum. Retaliation could lead to increased prices and unstable supplies of key commodities, which may stall or reverse the job gains made in recent years.

How to Create a Workforce Equipped with the Skills of the Future

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Automation is transforming the way we work. The World Economic Forum calls this change the Fourth Industrial Revolution which is characterized by a “fusion of technologies that is blurring the lines between the physical, digital and biological spheres.” In short, technology is disrupting nearly every industry, at a pace that has never happened before.

This pace of change means that employers need to take a proactive role in ensuring they have a workforce equipped with the skills of the future in order to avoid skills gaps. To accomplish this, employers first need to understand the skills they will need to remain competitive and innovative. Then, they need to understand how best to prepare and train their current workforce, as well as prepare to source, recruit and hire the talent of the future. In this post, we’ll share the top skills of the future, how technology is changing the way we work and explore ways organizations can prepare for the workforce of the future.

Skills of the Future

According to the World Economic Forum, the top ten skills you need to thrive in the Fourth Industrial Revolution have shifted in the last several years, prioritising complex problem solving, critical thinking and creativity as the top three skills and adding emotional intelligence to the list.

The following ten skills are listed as the most in demand for employers:

  1. Complex problem solving
  2. Critical thinking
  3. Creativity
  4. People management
  5. Coordinating with others
  6. Emotional intelligence
  7. Judgment and decision making
  8. Service orientation
  9. Negotiation
  10. Cognitive flexibility

This list reflects the fact that robots can complete many tasks faster than humans, but the machines still lack soft skills like creativity and emotional intelligence. As technology takes on more of the workload, the most in-demand employees will be those who possess the skills that computers cannot replicate. However, the need also increases for workers who have the skills to use, build and innovate the technology of the future.

Automation is Changing the Way We Work

It’s no secret that automation is fundamentally changing the way many industries operate, increasing the demand for tech and digital skills in the workforce. According to the McKinsey Global Institute, as many as 375 million people around the world will need to change occupational categories by 2030 due to automation.

Let’s explore this idea using the example of the impact of automation on the automobile industry. Some of the most well-known innovations in automation have happened in the industry – starting with Henry Ford’s assembly line. Now, companies around the world are racing to bring autonomous cars to market. The link to the potential disruption in complementary industries from delivery services to drive-through restaurants is overwhelming. However, it is an excellent example to use to illustrate the complexity of the skills needed for the future.

The skills required to deliver the cars to market are both highly technical and analytical.  However, the skills needed to design and operate the vehicles of the future are more complicated. Skills in design thinking and innovation will be critical. Programmers will need to ensure safety in weather conditions from blizzards to heavy rains and navigate autonomous cars and trucks through road construction and complicated intersections and interchanges.  They may be faced with programming life and death decision-making into the vehicles, which are inherently complex human behaviours requiring emotional and social intelligence skills above all others.

How to Prepare the Future Workforce

The Transformation of Talent

Automation and the skills transformation will affect many industries over the next decade, but lessons can be learned from the industries that have already come through the journey, transforming their workforce in order to deliver to a new business model. This transformation is illustrated with an example of one of PeopleScout’s clients, a company which provides research and risk management services.

The company began migrating customers from the traditional print version of their core product to an online version available on multiple platforms. This was a complicated and highly-involved transformation which impacted everyone from their internal workforce to their heavily print-dependent end-user. To illustrate the skills transformation that occurred, since that point in time, the number of technology hires PeopleScout makes for this client has increased 500 percent. This includes roles like product analysts, product managers and implementation consultants. At the same time, hires for editorial roles like editors, journalists and content developers have increased only 14 percent. And, 100 percent of editorial roles filled were for their online research product; no positions filled were for the traditional print product.

In order to help guide this client through their talent transformation, PeopleScout worked closely with the internal HR function to adapt their candidate personas for both external hiring and internal mobility. We then developed sophisticated sourcing strategies to source candidates with skill sets that would meet the needs of the new organization. In addition to sourcing new candidates internally and externally, there were also efforts to analyze which traditional roles had transferrable skills to the requirements of the new roles. This was a journey to take a traditional business and transform it into a technology company and substantially shifting the workforce to meet the new strategy.

Future Skill Degree Programs

Another way employers can prepare for the future workforce is through working closely with high schools, colleges, universities, apprenticeships and graduate recruitment programs to help develop degree programs that meet the skills of the future. By building these programs, employers can ensure that graduates have the skills necessary to succeed in the coming years.

The importance of high school programs is not yet as obvious as those in higher education, but many businesses and universities have started working with high schools to source and attract new talent early. The programs are particularly significant in industries where there is a forecasted talent gap. For example, Monte Sant’ Angelo Mercy students in Sydney have the opportunity to partner with an engineering company to learn valuable job skills and open up thinking about new career pathways.

I recently participated in a panel discussion with other industry leaders as well as a professor at a university in Sydney. The professor shared that the university spent time with CEOs and business leaders asking them what skills they felt their organizations needed to ensure their business was successful in the future. As a result of those conversations, the university created a highly-innovative, cross-disciplinary degree program designed to produce students with skills that include high-level critical thinking, future scenario building and innovation, as well as many other skills identified in the World Economic Forum top ten list.

However, in the first year of the program, they had minimal applicants. Why would such an innovative and carefully-designed degree have so little applicants? More work may need to be done to ensure that parents and students are fully educated on the necessary skill sets to be successful in the future of work.

How to Prepare your Current Workforce

Employers cannot simply wait for the workforce of tomorrow to arrive. To stay ahead, it is necessary to train and prepare current workers for these shifts. To make this a priority, HR and the C-suite need to be aligned on what roles will be needed in the next three, five or ten years, as well as what skills will be needed to fill those roles. The roles that exist now may transform or disappear altogether, and new skill sets will be necessary for the business to drive growth and strategy. Both need to be open-minded about the transferrable skills in order to ensure success in having the talent to deliver key business outcomes.

Reskilling Programs

In some countries, governments have taken on some of the burden of reskilling. For example, the Australian government has established the Skilling Australians Fund which provides $1.5 billion to support apprenticeships, traineeships and other employer-related training. The goal is to retrain more Australian workers with the skills needed in the tourism, hospitality, health, engineering, manufacturing, building and construction, agriculture and digital technologies industries. The program is targeted toward automotive workers who lost jobs due to closing car manufacturing plants.

In the United Kingdom, the government plans to spend as much as 500 million pounds per year on worker training to combat low productivity. According to Reuters, the spending could reach as high as nearly 6 billion pounds on academic and technical education which will transform the system of technical education and increase the amount of training available by more than 50 percent.

Moving forward, governments could also potentially track metrics around reskilling opportunities as well as metrics for job creation in order to drive these initiatives even further forward.

How an RPO Provider Can Help Prepare for the Skills of the Future

An RPO provider can be a valuable partner for employers looking to prepare their workforces for the skills of the future. RPO providers can help organizations adapt their candidate personas, to ensure they are sourcing talent with the necessary skills and identifying new ways to target candidates who fit these personas. In addition, they can work with internal HR departments to demonstrate how candidates who may not have an exact profile for a role have the transferrable skills to be successful.

An RPO can also help build graduate and internship recruitment programs and partner with schools and government programs to find candidates from new sources with new skills.

An experienced RPO provider can also help you build your talent pool from within your own company, by consulting to develop an internal reskilling program and helping reevaluate your current positions and workforce mix to ensure your organization is targeting the right talent.

To stay ahead in the rapidly changing talent landscape, employers should evaluate their current workforce needs, the skills they have within their current employee talent pool and seek out an RPO provider who can act as a partner in sourcing, recruiting and training employees with the skills of the future.

Considerations When Sourcing Talent Globally

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As the mobility of the global workforce increases, more employers are looking for the best talent from around the world. Multiple factors contribute to this increased mobility, and employers armed with the knowledge and expertise needed to navigate global recruitment will hire and retain the best workers in the competitive talent landscape.

One contributing factor is the growing economic prosperity in many areas around the world. The U.S. is experiencing record low unemployment rates, and job growth in Australia has maintained a strong pace. In countries with low unemployment, many employers are looking outside their borders for the best talent. Additionally, workers in countries with high unemployment rates are increasingly willing to relocate for challenging and fulfilling work.

Technology is making the process easier. Video interviewing makes it simple to interview candidates without incurring large travel bills, and virtual reality technology could give candidates a realistic look at your office without an international flight. A variety of solutions for virtual work could mean that the perfect candidate won’t even need to travel to fulfill a job’s requirements.

In this article, we’ll cover the value of sourcing globally and some of the common compliance challenges including immigration, background checks and data privacy and labor laws. Then, we’ll examine some significant cultural issues, including writing job titles and job descriptions, social media, communication styles and office culture. Finally, we’ll cover how to handle the office politics that emerge when starting a global sourcing program and how an RPO partner can help.

The Value of Sourcing Globally

A diverse global workforce can improve your employer brand. As the world becomes more globalized, candidates look for employers who provide the opportunity to work internationally, and the opportunity to work with people from around the world. Diverse workforces also increase productivity and employee engagement.

Through global sourcing, you also expand your talent pool and increase your potential of finding the right candidate with the skills to meet your needs. As employers look to hire candidates with the skills of the future, expanding your search across the globe can keep you ahead of the competition. In industries with large skills gaps like healthcare and engineering, the ability to source globally is necessary to remain competitive.

If you are planning to expand globally, global sourcing can also help support those plans; whether you’re looking to open an office in a new country or hiring a sales team that can build inroads for your company, a global workforce is valuable for international expansions.
Employers can also see other benefits including:

  • Increased ability to source candidates with the skills of the future
  • Increased internal culture and a sense of community
  • Greater cultural literacy in the workforce
  • Increased creativity
  • Diverse language skills

EVERYTHING YOU NEED TO KNOW ABOUT GLOBAL RECRUITMENT PROCESS OUTSOURCING

Buyer’s Guide to Global RPO

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Managing Compliance Challenges

Immigration

Starting a global sourcing program does come with challenges, the most obvious of which is immigration. If you are hiring foreign employees to work domestically, you need to abide by the immigration laws in your country, which can be complicated by shifting political climates. In general, the immigration process can add cost to hiring foreign workers. However, you may find that foreign workers are more open to relocation that you expect.

Background Checks and Data Privacy

Throughout the hiring process, you’ll also have to contend with varying background check and data privacy laws. The EU General Data Privacy Regulation, commonly known as the GDPR, protects the data and privacy of all EU citizens and applies to organizations that collect the personal data of EU citizens, regardless of where those organizations are located. If you are considering candidates located within the EU, your hiring process must be compliant with the GDPR.

Additionally, countries around the world have different laws that regulate how you can contact candidates through email. The requirements for CAN-SPAM in the U.S., CASL in Canada and the SPAM Act in Australia all have different requirements and different penalties. Employers should ensure they are compliant with these laws before contacting candidates in other countries.

Labor Laws

If employers are hiring workers in other countries as part of an effort to open a new office or enter into a new market, they should also be aware of the differences in labor laws that apply. For instance, in Australia, employees are entitled to long service leave, or a period of extended paid leave from work after a long period of working for the same employer. The exact requirements vary based on jurisdiction, but are in general, six to 13 weeks of leave for every seven to 10 years worked.

Family leave can also vary from country to country. In the UK for example, women on maternity leave are entitled to 90 percent of pay for the first six weeks of their leave and a flat rate for a further 33 weeks. Men are also entitled to paternity leave for one or two weeks at a flat rate. Though the length of time and the amount of pay may vary, most countries outside of the U.S. have some requirements for maternity or parental leave.

Some countries have laws that dictate how and when employees must be paid. One of the more unique cases is the thirteenth salary, which is legally required in some countries, including Brazil. Under the law, employees who work for an organization for a full calendar year are entitled to an additional one-month salary, usually paid in two installments in November and December. Thirteenth salary is also a common practice in some European countries, but it is legally required in multiple South American countries, including Argentina and Uruguay.

Differences in Office Cultures

In addition to compliance challenges, employers should also be prepared to manage the cultural differences that exist in recruiting, hiring and work cultures around the globe. While a cultural mistake isn’t likely to result in a fine or other legal consequence, it can cause other problems. A lack of cultural literacy can lead to anything from communication confusion during the hiring process to a negative impact on your employer brand that will make it more difficult to recruit top talent.

Writing Job Titles and Job Descriptions

As you start the hiring process, you first want to make sure you’re using job titles and writing job descriptions that will appeal to global candidates. The wrong job title could mean that few qualified candidates even find your job posting. For example, the title “engineer” can refer to a variety of skills and a large range of experience depending on the country and industry where you are hiring. Other common titles like “secretary” or “representative” can indicate high paying and powerful positions in one country or entry-level positions in another.

Once you establish the right job title, it’s also important to write a job description that will attract your desired candidates. In some countries, candidates view job descriptions as a near exact outline of the work they would do in that position. In other countries, candidates may expect more flexibility depending on their skills. Additionally, some phrases may discourage global applicants. For instance, “must have a college degree” could prevent some global candidates from applying. The meaning of “college,” “university” and even “high school” can vary from country to country. You should include equivalent experience and educational requirements for each country you’re recruiting candidates in.

Social Media

It’s also important to understand the role social media plays in a candidate’s country. In the U.S., candidates are used to employers searching and reviewing posts on public social media pages. Candidates in other countries may not have this expectation. Additionally, some countries will have different social media sites instead of or in addition to the common Facebook, LinkedIn and Twitter. For example, in China, western social media platforms are banned, and Weibo, WeChat and Youku are popular. Additionally, social media sites can have varied relevance in a job search from country to country.

Communication Styles

It’s also important to understand different communication styles that are common around the world and how those influence interviews, negotiations and even contracts or lack thereof. The Harvard Business Review gives several examples of varying cultural business norms listed below:

  • In Russia, disagreement is expressed strongly and openly, and a negotiation that starts with a strong disagreement can be a positive sign.
  • In Mexico, it is uncommon to clearly voice strong disagreement, but emotional expression is a sign of honesty.
  • In countries like Denmark, Germany and the Netherlands, open disagreement is good, but it should be expressed without emotion.
  • In China, trust is built through relationships rather than a business perspective.
  • In Indonesia, it is rude to look someone in the eyes and say no to a request.
  • In Japan, it is common to iron out potential challenges informally before a meeting, so there is not debate during a formal meeting.
  • In America and Northern Europe, it is common to put everything in writing, from recapping a meeting to a full contract, but some African, Middle Eastern and Asian countries, the same process can be a sign of distrust or disrespect.
Office Culture

There are other cultural differences related to the workday that you may have to address. In the U.S., overtime is common, and full-time workers are often expected to work eight-hour days, five days each week. In other countries, like Brazil, the work week is capped at 40 or 44 hours, depending on how many days a week the person works. French workers have a “right to disconnect” after hours, and in Sweden, fika, or a mid-morning break for coffee and snacks, is common. While some of these differences are legal issues, others will shape candidate expectations about the work environment. Employers need to understand and prepare for how these different approaches to the workday will play out at their organizations.

Understanding Office Politics

As an organization begins a global sourcing process, it should not overlook the importance of internal communications, office politics and training. Change can be difficult, and it is best to be proactive. Whether a company is opening a new office in another country, recruiting foreign workers to work virtually or sponsoring visas for candidates who wish to immigrate, employers should prepare for how all employees handle the change.

Employers should train all employees, regardless of location about the different cultural workplace differences that could impact workers. It’s important that the training is for all workers so that some employees don’t feel singled out. The process should teach new workers and existing employees about each other, how the business operates and any changes that they can expect.

Some expressions and phrases have different meanings in the same language, depending on where it is spoken. It is important to those communications across borders and cultures to be aware of these differences. For example, in the United States, to “table” usually means to postpone or suspend consideration of a pending motion. In the rest of the English-speaking world, such as in the United Kingdom and Canada, to “table” means to begin consideration (or reconsideration) of a proposal.

Employers should also be prepared for fears from current employees about replacement or outsourcing. It can be a delicate conversation, but it is an important step to help retain employees. Organizations should work with their leadership and internal communications teams to frame the conversations about changes in the workplace. HR should also review conflict management best practices to ensure that any issues that develop between employees can be mediated before they come to a head.

Finding a Partner

As employers look to start global sourcing programs, it is important to look for an RPO partner who has deep experience with international programs and who understands the part of the world where you are looking to expand or source candidates. Your partner should help you navigate the compliance and cultural issues that accompany any global sourcing program. While some local labor laws deal with issues that happen after the hiring process, remember that they can have implications during the hiring process too. An RPO provider can help prepare you for many of the challenges before you post a job or extend an offer. Additionally, a partner with years of experience can help you anticipate any communication and training issues so that you can tackle the issues head-on.