As part of our commitment to keeping you informed about the latest news in the hiring market, we are excited to share our 2023 U.S. Workforce Trends Mid-Year Report. In this report, we have analyzed the latest jobs data across various industries so you are ready to face the months ahead with a stronger staffing strategy.
The first half of the year has seen slower hiring in many industries as businesses navigate economic uncertainty. However, there is a steady demand for workers in critical sectors such as retail, manufacturing and hospitality.
Our 2023 U.S. Workforce Trends Mid-Year Report includes:
National job numbers for the first half of 2023
Workforce and wage information for several major industries
A breakdown of jobs experiencing notable growth
At PeopleScout, we understand the importance of having the right workforce to support your success. That’s why our report goes beyond sharing workforce data — it also offers recommendations and strategies to help you attract and retain the right workers. These insights can help your company build a strong and flexible workforce that can adapt to changing demands, seize new opportunities and ultimately thrive in today’s business landscape.
Amidst a tumultuous economy, employers continue to face challenges in talent acquisition and are seeking nimble solutions that allow them to address hiring needs quickly. Despite layoffs in some sectors, job openings surpass pre-pandemic levels in nearly every industry—averaging 31% more vacancies than in 2019. This is compounded by three million people having dropped out of the labor force.
Many organizations lack the in-house recruitment resources—in terms of personnel or technology—to respond to fluctuations in a volatile talent market. Plus, with skills gaps growing, internal talent acquisition teams are too stretched to effectively manage the candidate lifecycle. Consequently, employers experience dwindling talent pipelines and an increase in drop-offs and ghosting between offer acceptance and onboarding.
No wonder 91% of hiring managers say they’re experiencing hiring challenges and 45% say they’re struggling to find qualified workers for open roles at their companies. Many organizations are seeking recruitment support in the form of modular RPO (recruitment process outsourcing) as a cost-effective way to augment their recruitment capabilities where they need it most.
That’s why we’re thrilled to announce our new suite of modular solutions, Amplifiers. Amplifiers has a solution that can help augment your team to meet your short-term talent needs—while providing lasting business value.
What is Modular RPO?
Modular RPO, or variable RPO, is a strategic approach to managing the recruitment process in an ultra-focused manner. It involves outsourcing specific components of the recruitment process to an RPO provider, or as a supplement to an existing outsourced recruitment engagement, providing quick access to targeted and customized recruitment support. With a modular or à la carte approach, you choose from a range of services based on your requirements.
Our Amplifiers include:
Talent Mapping
Talent Sourcing
Recruiter On-Demand
Assessment Transformation
Talent Diagnostic
Sure Start: Retention and Onboarding Support
Modular RPO vs Full End-to-End RPO
Modular RPO differs from traditional enterprise RPO in that it allows businesses to select and customize the specific recruitment services they need, rather than outsourcing the entire process.
The main differences include:
Scope: Modular RPO focuses on specific parts of the recruitment process or short-term initiatives, while end-to-end RPO can cover the entire recruitment function.
Duration: Modular RPO engagements are typically short-term, while end-to-end RPO is a long-term strategic partnership. However, many of our RPO partnerships at PeopleScout have started as short-term engagements.
Technology Integration: End-to-end RPO often involves more extensive use of technology, including integration with other HR systems as well as customization.
The decision between modular RPO and a full RPO engagement depends on various factors, including organization size, hiring volume, budget and strategic workforce planning. It’s essential to assess your specific needs and evaluate the benefits and trade-offs associated with each approach before making a decision.
6 Benefits of Modular RPO
Here are six key benefits of a modular approach to RPO.
1. Cost Optimization
Modular RPO gives you greater control over your recruitment costs. You select specific recruitment services based on your challenges, enabling you to allocate your budget more efficiently by avoiding unnecessary expenses for unused services. In uncertain economic times, this is a more cost-effective approach that still lets you benefit from the expertise of an RPO partner.
2. Scalability and Agility
The business landscape is unpredictable, which can cause your hiring needs to fluctuate rapidly. Modular RPO provides the agility to scale your recruitment capabilities up or down based on demand. You can quickly adapt your recruitment efforts in response to market conditions, ensuring you have the adequate resources during high-demand periods and avoiding unnecessary expenses during slower periods. Plus, some of our clients have added Amplifiers onto their full RPO engagement—whether they’re partnered with PeopleScout or another RPO—when an extra boost is needed.
3. Customization and Control
Some organizations prefer to maintain a certain level of control over their recruitment process, particularly during uncertain economic times. With modular RPO, you can customize your recruitment process according to your specific requirements. Select the services you need, such as candidate sourcing, screening or onboarding support, while retaining oversight of other aspects of the recruitment process. This level of control allows companies to align the outsourced services with their internal hiring strategies and maintain greater mastery of their talent acquisition function.
4. Strategic Focus
By outsourcing specific recruitment functions to an RPO partner, you can free up your internal HR teams and hiring managers to focus on core business activities, such as talent development, workforce planning and organizational restructuring. By opting for a modular approach, organizations can collaborate with their RPO partner to design a solution that addresses their specific challenges and aligns with their strategic goals.
5. Access to Technology
RPO providers have access to advanced recruitment technologies and tools. Even with modular RPO, you can leverage these technologies for specific recruitment functions without investing in them for internal use. This is particularly beneficial in challenging economic environments where capital expenditures are carefully managed.
6. Risk Mitigation
In uncertain economic climates, modular recruitment solutions are a great option for organizations who are new to RPO. By opting for a more targeted and flexible approach, you can evaluate the effectiveness and value of the outsourced recruitment partner before expanding the engagement further.
PeopleScout’s Amplifiers offer you the ability to optimize costs, maintain agility, streamline recruitment processes and focus on strategic priorities—while still benefiting from our 30 years of expertise as an RPO partner. The benefits of modular RPO align your organizational needs with our current economic realities.
U.S. employers added 187,000 jobs in August. This is slightly higher than analysts expected and shows that the Federal Reserve’s plan to slow growth may be working. The unemployment rate rose to 3.8%. Year-over-year wage growth fell slightly to 4.3%.
The Numbers
187,000: U.S. employers added 187,000 jobs in August.
3.8%: The unemployment rate rose to 3.8%.
4.3%: Wages rose 4.3% over the past year.
The Good
While 187,000 jobs would have been a standard month of growth in 2019, in 2023, it shows signs that the labor market is slowing. As the Wall Street Journal reports, August’s report reflects a cooling job market in a strong economy, which is what the Federal Reserve has been hoping to see. Job growth was led by the education and health services sector, and leisure and hospitality saw continued strength. The increased unemployment rate was caused by more Americans looking for work, but the job market has remained tight, with more employers choosing to slow their hiring rather than opt for layoffs.
The Bad
Wage growth is slowing, but not as quickly as the Fed would like to see. Yearly wage growth fell to 4.3% in August, slightly lower than the previous month. However, wage growth has remained stubbornly higher than 4%. As the New York Times reports, Fed officials believe high wage growth could make it difficult to return to their long-term inflation goal of 2%.
The Unknown
The big question for analysts is whether or not the Fed will raise interest rates at its next meeting in September. According to MarketWatch, the latest report shows enough of a slowdown that could convince officials to hold the interest rates steady. Over the past year-and-a-half, the Fed has increased a key short-term interest rate from near zero to 5.5% in an attempt to slow inflation. At the same time, they want to avoid raising interest rates too high, which could trigger a recession.
August’s jobs report is also typically one of the trickiest of the year to interpret. Fewer businesses than usual respond timely to the monthly questionnaire as many people take summer vacations. Additionally, the strikes in Hollywood and the bankruptcy of a large trucking company could make hiring numbers appear to be artificially lower.
Amid the alphabet soup of corporate jargon, buzzwords, and acronyms, you’ll find CSR and ESG. Respectively, the two stand for corporate social responsibility and Environmental, Social, and Governance. These concepts have been around for years but have been growing in importance. Now, CSR and ESG impact talent acquisition in new ways. As candidates become more knowledgeable and passionate about social responsibility and sustainability practices, employers need to respond. The issue is particularly salient for Gen Z, where 87% say it is important to work at a company that aligns with their values.
Job seekers want to work at organizations with values that match their own, with as many as 80% of workers in some industries saying that ESG issues play a role in whether they will resign from or remain at certain organizations.
So, how do CSR and ESG impact talent acquisition? In this article, we explore their impact and outline strategies to help talent leaders incorporate these concepts into their recruitment strategies.
What is Corporate Social Responsibility?
According to the United Nations, corporate social responsibility is “a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders.” CSR focuses on issues including environmental management, eco-efficiency, responsible sourcing, stakeholder engagement, labor standards and working conditions, employee and community relations, social equity, gender balance, human rights, good governance, and anti-corruption measures.
CSR has been growing in importance over the last several decades, according to Harvard Business School, and has led to specific designations like B Corporations (B Corps), social purpose corporations (SPCs), and low-profit limited liability companies (L3Cs). But for many organizations, CSR is simply a self-imposed regulation. Employers can express it through initiatives and strategies and often report back their results through corporate social responsibility reports.
What is Environmental, Social, and Governance?
According to Gartner, Environmental, Social, and Governance (ESG) is “a collection of corporate performance evaluation criteria that assess the robustness of a company’s governance mechanisms and its ability to effectively manage its environmental and social impacts.”
Each pillar of ESG includes different criteria. McKinsey outlines environmental criteria as relating to how much energy a company takes in, how much waste it produces, what resources it requires and how that impacts life around the world. Social criteria address the relationships between an organization and the institutions and communities where it does business. Finally, governance represents the internal procedures and checks and balances an organization uses to make decisions and govern itself.
How CSR and ESG Impact Talent Acquisition
Once little-known terms, these markers of corporate responsibility and sustainability now play a role in job seekers’ decision-making.
One survey found that more than half of employees would not work for a company that doesn’t have strong policies addressing social or environmental sustainability issues. Additionally, 74% of employees said their job is more fulfilling when they’re given the chance to make a positive impact on social and environmental issues, and 70% indicated they’d be more loyal to a company in which they can help contribute to solutions.
The changing environment and increasing pace of climate-related disasters plays a role. Compiled data shows that Google searches for sustainable companies have been growing rapidly since 2016, reaching the highest volume yet in 2023, with no signs of slowing down. In that time, a number of environmental events have dominated headlines, from the devastating 2017 floods caused by Hurricane Harvey in the U.S. to the disastrous 2019-2020 Australian bushfires and 2023 Canadian wildfires. Spikes in searches often follow global climate meetings like the United Nations Climate Change Conferences.
Job seekers are paying attention, and employers can only expect that interest to increase. One survey found that 40% of Gen Z and millennial employees have changed jobs or sectors due to climate concerns or plan to in the future. Additionally, 60% of respondents reported feeling anxious about the environment over the past month, and more than 70% said that they are actively trying to minimize their impact on the environment.
3 Approaches for Including CSR and ESG in Your Recruitment Strategy
To stay ahead of the competition, talent leaders should include CSR and ESG in their talent strategies. Below we outline three approaches.
1. Build a Responsible, Sustainable Employer Brand
Your employer brand is your most powerful tool in attracting top talent, and your ESG and CSR initiatives should be featured throughout your branding materials. Think about your efforts to reduce carbon emissions, support local communities or promote diversity and inclusion. You may measure or report on progress of these initiatives for investors, so consider sharing with candidates as well. Even if you haven’t reached your goals yet, being transparent about your progress can demonstrate to candidates that these initiatives are genuine—not just lip service. Share your next steps and the strategies you have in place for reaching these goals.
There are several ways to showcase your progress to candidates:
Highlight ESG initiatives in your job descriptions
Create an ESG page on your career site
Leverage social media to share your progress toward ESG goals
Tap into current employees who can share their experiences
Train recruiters and hiring managers on ESG initiatives
2. Get Employees Involved
Your social responsibility and sustainability goals should be at the core of your culture. Make your goals and initiatives a regular part of conversation rather than distant promise. This will not only help retain top performers but will also help engage candidates.
You can get your employees involved in reaching your CSR and ESG goals by communicating progress and adding performance targets where appropriate. You can also consider benefits that align with your goals so that employees feel as though your commitment to social responsibility and sustainability are part of your DNA, not just marching orders.
Here are a few strategies you can employ:
Communicate updates on ESG initiatives regularly, like in team meetings or all-company updates
Encourage leadership to display day-today behaviors that align with goals
Add ESG-related performance goals
Consider ESG-related benefits, like days off for volunteer work, a cycle-to-work scheme or vouchers for public transit
Recognize employees for ESG-related contributions
3. Avoid Greenwashing
As you focus on and promote your social responsibility and sustainability work, avoid falling prey to greenwashing. Greenwashing happens when an organization spends more time and money showcasing sustainability initiatives than actually performing them. It’s often seen as a marketing gimmick, and consumers and candidates are growing more savvy in recognizing it. To maintain a positive reputation and brand perception, ensure that your organization lives up to the values you’re advertising from the top down.
Here are some tips to avoid greenwashing:
Avoid overly flowery language
Don’t use dishonest imagery
Ensure your business practices reflect your marketing promises
Be honest, even if you aren’t perfect
Share real data
Make concrete claims
A Sustainable Future: CSR and ESG in Talent Acquisition
As we move toward a more sustainable future, your CSR and ESG initiatives are important factors for job candidates. The right RPO partner can help you communicate the environmental work you’re already doing to attract top talent. The desire for sustainable employment isn’t going anywhere, and employers should only expect it to get stronger.
Travel is back, but hospitality employers are still playing catch up. Travelers around the world are booking flights, checking into hotel rooms, making reservations and buying tickets. Brands are attracting customers but struggling to attract employees with the right hospitality recruitment strategies.
In 2020, the size of the global tourism market fell by nearly a trillion dollars as travel came to a halt. The industry finally surpassed its prepandemic highs in 2023, reaching a market size of $2.3 trillion (USD). But employment in the industry lags behind. In the U.S. alone, nearly 2 million hospitality jobs remain unfilled, according to the Washington Post.
The old hospitality recruitment strategies aren’t working anymore. The world of work has changed. Many sectors have expanded the availability of remote and hybrid work, and many front-line hospitality workers left the industry for more flexible roles.
Employers must update their employer branding and candidate attraction strategies to draw in top hospitality talent. In this article, we cover the hospitality brain drain and provide hospitality recruitment strategies that talent leaders can put into place now to get ahead of the competition.
The Hospitality Industry Brain Drain
One of the largest lasting impacts from the COVID-19 pandemic is the permanent loss of talent. as workers fled the travel and hospitality industry for more stable, more flexible or less customer-facing positions. While employment in the hospitality sector still lags, professional and business services saw 1.4 million new jobs added during the pandemic.
Rather than returning to employment in hotels or with airlines, many laid off workers looked for behind-the-scenes office work where they were offered more flexibility, more traditional hours and often higher pay.
In 2022, the U.S. Bureau of Labor Statistics reported record quit rates during the Great Resignation, with the quit rate in leisure and hospitality jumping by a percentage point to 6.4%.
This phenomenon, sometimes called “brain drain,” has left hospitality employers with not just fewer workers but also those with less experience. This has led to increased competition for experienced hospitality workers and often increased time-to-fill rates for more specialized hospitality roles. Talent leaders must work to coax experienced workers back to the industry while also focusing on the next generation. Below, we outline three strategies to bring back and bring in hospitality talent.
Top 3 Hospitality Recruitment Strategies
1. It’s Time to Update Your Employer Brand
In today’s talent market, hospitality employers need to stand out in a crowded field of competition. Your employer value proposition and employer brand will be what convinces top talent to join your organization, rather than the hotel down the street or the customer service job that will allow them to take calls from their home offices.
However, after the past several years, few have had the resources to invest in and update their employer brands. If you haven’t refreshed your employer brand in a few years, now is the time. Each hospitality brand has its own distinctive personality and style that should be reflected in both consumer marketing and employer branding.
Your employer value proposition, or EVP, is the foundation of your employer brand. Your EVP describes the give and get between employer and employee. At PeopleScout, our EVP work has five phases:
Define
Discover
Develop
Design
Deploy
In the define stage, we build a baseline understanding of you and your competition through competitor audits, social listening, candidate experience diagnostics and collaborative sessions. In the discover phase, we go deeper to understand what makes your organization unique through interviews with leaders and employees throughout the organization.
From there, we analyze the data and develop an EVP prototype that we validate through workshops and interviews with employees. In the design phase, we create the creative concepts to bring your EVP to life with an employer brand playbook and employer brand toolkit. These include deliverables like EVP positioning and messaging, social media posts and ads, and printed materials like posters and exhibition stands for job fairs.
Finally, we deploy, focusing on an employee ambassador program that helps your current employees share their stories with prospective candidates. From there, your EVP and brand can flex and evolve to adapt to changing candidate expectations.
By honing your employer value proposition and attraction messaging, you can zero in the characteristics you need for the variety of roles you need filled. By shifting your mindset from focusing on getting the most applications, or even those with certain experience, to getting applications with the right profile, you can reduce attrition by increasing the likelihood of your new hires being successful.
2. Are Your Offers and Benefits Competitive?
The leisure and hospitality sector has seen some of the highest wage increases across all employers in recent years. In the U.S., wages in hospitality have risen 23% over the past three years. Additionally, workers have more options for hybrid or flexible work in other industries where the pay is similar or even higher. This makes it more difficult for hospitality employers to compete. According to the Boston Hospitality Review, compensation was one of the most cited reasons that people left the hospitality industry during the pandemic.
To stand out in this market, you need offers that are not only competitive in terms of salary but also provide the types of flexibility and benefits that candidates are looking for and can likely find in other industries. Hospitality candidates are increasingly interested in remote work. Google searches for “remote hotel jobs” have increased about 400% since 2019.
Many hospitality jobs require being on site, making hybrid work only possible for a small percentage of roles; however, employers should evaluate and offer the option when possible. Additionally, consider flexible work arrangements or scheduling that would allow front-line workers time to do things like pick children up from school.
Other benefits can also help bring in or bring back hospitality workers. While 88% of employees say that health benefits are important to them, only 30% of restaurants offer medical insurance. Not every employer will have the budget for health insurance, so consider other benefits, like caregiver benefits, parental leave or a commuting allowance.
You can also consider different compensation models. Consider a salaried front-of-house staff. According to Monster, employers who pay their front of house staff a salary gain an advantage for attracting top talent, and those workers create a better customer experience because they aren’t focused on “turn-and-burn” tactics. You can also consider profit sharing or bonuses to help attract and retain employees.
3. Focus on Culture
Your company culture may not be listed as a line item on a paystub, but it can serve as a benefit for attracting top talent in a tough industry. In any customer-facing role, employees can be subject to stressful situations, but a supportive culture can increase employee retention.
One survey found that 91% of hospitality workers have dealt with customers who believed they inherently deserved privileges or special treatment. Of those workers, 70% wanted to leave the industry entirely after confronting a demanding consumer. Employers need to ensure that they not only meet traveler expectations but also keep workers happy and focus on retention.
Hospitality employers should focus on building a supportive culture. This should start from day one with structured training and can include things like mentorship programs to support new employees and help them feel like part of the team. Additionally, consider adding wellness programs that include things like counseling or employee assistance programs.
Finally, the travel and hospitality sector has a unique opportunity to build a fun culture by creating ways for employees to enjoy the services normally provided to guests. This can look like VIP perks for employees and their friends and families, discounted meals or free meals during shifts, yearly overnight stays at hotels to celebrate work anniversaries or discounted tickets to events.
Choosing the Right Hospitality Recruiting Strategies
Candidate expectations are always changing, so hospitality employers need to find the recruitment strategies that work best to attract the right candidates at the right time. An experienced RPO provider can help talent leaders narrow down the best solutions and help build an employer brand to bring in top talent with the right skills and mindset.
According to a global study by Bain & Company, workers aged 55 and older make up over 25% of the workforce in G7 countries by 2031, making older workers one of the most in-demand talent pools for employers today. In the UK, the government launched a “returnership” initiative to inspire those over the age of 50 to come back to work or to seek a career change. This scheme involves three programs that help older workers retrain and learn new skills, providing workers with a clear roadmap back into the workplace and encouraging organizations to hire them. In Western Australia, the Job Reconnect program provides grants to both employers and employees to cover costs related to licences, upskilling, and even work clothing, transport and childcare.
It’s crucial for retail and hospitality employers to know how to entice older workers back to work and to make the most of their valuable talent. Known as the ‘sandwich generation’—defined by caring for their elderly parents and also dependent children or grandchildren—older works have a strong work ethic. Customer facing and front of house roles enable them to fit work around caring for family and other responsibilities.
Keep reading for key insights from our panel discussion and get the latest research to understand exactly what older workers want and what retail and hospitality organizations can do attract this in-demand demographic.
What Do Older Workers Want?
What do over 50s want and need from an employer? Does your organization know how to attract and engage this older workforce and how to hire and retain them?
Flexibility
Unsurprisingly, monetary concerns are coaxing older workers back into the workplace due to the cost-of-living crisis. However, when it comes to choosing an employer, flexibility takes precedence over money.
Hospitality roles typically attract a younger demographic of workers. However, the flexibility offered by these jobs also appeals to the older working generation. Given that the over 50s are the largest age group with caring roles, flexible and part-time work is a powerful motivator for them to fit a job into their routine.
As well as permanent roles, seasonal and flexible roles are available within the hospitality and retail industries, which can be more attractive to the older working community. Working harder in those seasonal months creates work-life balance, allowing older workers to take time off during quieter periods to recover and be with their friends and family.
Sense of Belonging
Workers in this age rage are still searching for rewarding work. Older workers wish to find a place where they can feel a part of their local community and give back. Over 50s enjoy creating social connections that a customer-facing job in a restaurant or supermarket can provide.
Customer-facing roles in hospitality and retail give individuals the chance to serve and connect with their community. For older customers, seeing employees in shops and restaurants that represent them can boost the customer experience.
Myths About Older Workers
There are plenty of misconceptions out there from employers and colleagues about hiring and working with older workers. Consider these myths busted.
Myth 1: Older Workers are Resistant to Technology
Certain words can be viewed as a turn off for an over 50s audience, including “tech-savvy”, which some see as a way to ward off older candidates. There are older people who will feel excluded because others wrongly perceive that they’re less capable with technology, when in fact they are part of a generation that has seen huge advancements in technology. Bill Gates, the co-founder of Microsoft, is in his late 60s, and Tim Cook, the CEO of Apple is in his early 60s.
Recognise that all colleagues work differently with technology, so you must be thoughtful in your use of training. In hospitality and retail, workers are likely to be using tills and sales computer systems. Regardless of whether a person struggles with technology, an organization should have a strong program in place to support workers as they learn how to use these tools. For example, consider implementing a buddy system of workers and leaders who will happily help new employees in their first few weeks as they learn point-of-sale systems.
Myth 2: Absences are Higher Because of Health Issues
As people get older, their health can decline. However, this doesn’t mean that absenteeism is higher amongst older workers. In fact, older workers are more likely to have higher everyday attendance rates due to their strong work ethic. When you do see sickness or absence, it is typically in the form of long-term leave, rather than the odd day here and there.
Myth 3: Older Workers are Less Productive Than Younger Workers
A study demonstrated that there was no different between younger and older workers in terms of productivity. This study found that with their years of experience and memories, older people perhaps dismiss new information when they process things and instead use past information. It’s therefore important to acknowledge that older workers aren’t doing things worse, they just do these things differently through their years of experience.
What Can Organizations Do to Attract Older Workers?
So, how can retail and hospitality organization tap into this hard-working talent pool? Here are four questions to ask to ensure your talent acquisition program is over-50s friendly.
Are Your Candidate Attraction Materials Inclusive for Everyone?
To attract older workers, you must think more creatively and broadly. Use community-based websites to engage with people who live close to your locations. Show how the job will fit into their lifestyle and what it would be like for an older person to work there, rather than a generic message. Create testimonials from your current employees to support this.
Make sure that your imagery is diverse, featuring people of all ages. Look at your marketing materials and ensure that it reflects the community so that over 50s can see that jobs in hospitality are here for them. Take advantage of local community-boards in community centers and supermarkets.
How is Your Candidate Experience?
Retention and attraction are very different. Employers can encourage people to apply for jobs through their advertisements, yet ultimately, it is down to the experience the candidate has during the recruitment process, induction and beyond. The candidate experience is what will make them accept the position and stay at the company.
When younger workers leave education, they’re taught how to answer competency-based interview questions and how to write a resume. The older generation of workers likely won’t have a resume and may not have experience with this kind of interview. Is your interview process age inclusive and relevant to them?
Are You Giving Them What They Want?
Now that we’ve shared what older workers want, is your organization serious about flexible shift patterns? Over 40% of the part-time workforce is aged over 50. Not only does this part-time schedule work in hospitality, but also in retail, in which the holiday season creates a huge demand for workers.
Different shift patterns in retail can support individuals in their family commitments and lifestyle. Look at your employees’ caring responsibilities, for partners, for children, for elderly parents, and take this into account when creating your shift offerings.
But what else does this generation want from you? Everyone responds well to positive feedback. Both the retail and hospitality industries are great at celebrating successes, shown through brilliant behavior and examples across organizations.
Finally, show that your organization values them by offering benefit packages. Health is a priority for everyone as we get older, and health benefits can help to attract them to your organization.
Does Your Anti-Bias Training Include Age?
Ageism usually gets the least amount of focus across the DE&I plan. Train your leaders and hiring managers on unconscious bias particularly as it relates to age. Ensure there are no biases lurking in the recruitment process to open up talent pools instead of closing them down.
FUTURE OF WORK
DESTINATION 2030: 10 PREDICTIONS FOR WHAT’S NEXT IN THE WORLD OF WORK
The future of work is green. According to the United Nations, the global economy is undergoing a “greening,” as industries like energy, transportation and construction adopt more sustainable practices. That process could create 24 million more jobs globally by 2030, putting workers with green skills in high demand.
However, supply has not kept up, even as the need for green skills spills into other industries like economics and finance, security, market and geopolitical analysis, communications, social sciences, and legal.
In this article, we’ll explore the drivers for green jobs and the need for green skills, which green skills are in the highest demand and how employers can find and hire top green talent.
What are Green Jobs?
So, what qualifies as a “green job?” According to the International Labor Organization, “Green jobs reduce the consumption of energy and raw materials, limit greenhouse gas emissions, minimize waste and pollution, protect and restore ecosystems, and enable enterprises and communities to adapt to climate change.”
Demand for green skills is outpacing the supply. According to LinkedIn’s Global Green Skills Report, between 2022 and 2023, job postings requiring at least one green skill rose 22.4% while the share of green talent in the workforce only grew 12.3%.
What’s causing the shift? According to the World Economic Forum, many countries are working to achieve net zero by 2050. This means that both governments and businesses are driving the green transition.
So far, the majority of green job growth has come in some of the highest polluting industries, such as energy and transportation, and in some of the countries that produce the most greenhouse gases.
The U.S., Germany and India, countries that emit some of the highest amounts of greenhouse gasses, are leading the way in green jobs. According to the World Economic Forum, Germany is adopting more green skills in the manufacturing industry, and the U.S. and India are outpacing other countries in both oil and gas and mining.
But the need for green jobs goes beyond installing solar panels and building electric vehicles. According to LinkedIn, one of the most important sectors in sustainability is finance, and it is lagging behind. In the fight against climate change, huge investments will need to be made in things like wind farms and electric vehicle charging stations, and financial professionals will be in the spotlight. Despite that, only 6.8% of finance workers globally have green skills. However, there are signs of change. Between 2021 and 2022, the percentage of green jobs in finance grew 17%.
With increasing competition for green talent, employers need to have an in-depth understanding of the most in-demand green skills and how to attract, hire and train top talent.
What are Green Skills?
It is easy to mistakenly associate certain green skills to specific industries. Unlike the ability to set a broken bone, which will qualify a worker for a job in healthcare but isn’t relevant if they’re applying for a role with a law firm, green skills are different. Think of green skills more like tech and digital skills in their ability to be applied across a wide range of industries. For example, carbon accounting, or estimating the carbon footprint of different organizations, can play an important role in a variety of industries, from consulting to waste management. While there might be a concentration of workers with green skills in green industries, those skills are in demand across the global economy.
According to LinkedIn, the fastest growing green skill in the EU is climate action planning. A climate action plan is “a framework document for measuring, tracking and reducing greenhouse gas emissions, and adopting climate adaptation measures.”
Climate action plans exist for a variety of organizations. For example, they exist at the government level, including for U.S. states, for international organizations like the World Bank, Fortune 500 companies and more. This means employers are competing for candidates across industries.
There are many green skills that are required for jobs in industries not considered green. For example, according to LinkedIn, a knowledge of energy efficiency could be necessary for roles like a plumbing engineer, utilities manager, vice president of facilities or HVAC specialist.
So, what are the most in demand green skills? It depends on where you are. In the U.S., carbon accounting, drinking water quality and energy engineering are seeing some of the fastest growth. While in the EU, sustainability education and carbon emissions round out the top three after climate action planning.
How to Hire for Green Skills
To meet their own hiring and sustainability goals, employers need to understand where to find candidates with in-demand green skills, how to attract them and how to train green-adjacent workers to help fill skills gaps. Here, we cover three options for employers struggling to fill green roles.
1. Skills-Based Hiring
Skills-based hiring sounds simple—hiring people based on skills rather than previous job titles. However, according to SHRM, it requires a commitment to change. Traditionally, many jobs list requirements like specific degrees or years of experience that are used to determine if candidates are ready to take on a role.
According to one survey, more than 80% of employers believe they should prioritize skills over degrees. Yet, 52% are still hiring from degree programs because it’s considered a less risky choice. This means that especially in entry- and mid-level roles, candidates with the right skills could be overlooked for failing to meet these specific requirements.
Research shows that adopting a skills-based hiring strategy can yield significant improvements to an organization’s talent acquisition program—increasing quality of hire, expanding the talent pool, increasing diversity and improving employee retention.
Transitioning to a skills-based hiring process requires a culture change, a transformation in thinking from the top down—from senior leadership to hiring managers—andupdates to many aspects of the recruitment process.
One of the most important steps is updating the screening or assessment process. Rather than eliminating candidates who lack certain degrees or years of experience, develop criteria and assessments that objectively measure the skills necessary for the job. Then, screen candidates in rather than screening them out. An RPO provider with talent advisory capabilities can assist organizations moving to a skills-based screening and assessment strategy.
2. Green Adjacent Skills and Gateway Jobs
Additionally, employers can build gateway jobs and look for candidates with green adjacent skills.
Gateway jobs are roles that can serve as steppingstones and give workers the opportunity to gain the green skills they’ll need for a green career. According to the LinkedIn report, one example of a gateway job is in supply chain management. As the industry looks to reduce its carbon emissions, workers are developing the green skills to do the job, even though they may not have had them when they were hired. In fact, 41% of workers who move into gateway jobs have no prior green experience.
An effective strategy for hiring candidates for these gateway roles is looking for green adjacent skills. These are skills that don’t necessarily fall under the green umbrella but would give the candidate the ability to do many functions related to the role. For example, candidates with STEM and digital skills can go a long way toward helping an organization reach its sustainability goals. Also, experience in industries currently undergoing a green transformation, like utilities, mining, transportation and agriculture can be applied to green jobs.
To find these candidates, employers need a robust souring strategy to identify those with adjacent skills. The right technology solution can identify both active and passive candidates with specific skills, expanding the talent pipeline and predicting factors such as cultural fit, willingness to change companies and future tenure potential.
3. Reskilling and Upskilling
When hiring candidates with adjacent skills, employers must implement reskilling and upskilling programs to fill the skills gap.
According to the World Economic Forum, nearly half of young workers believe they don’t have the right skillset to guarantee them an adequate job over the next decade. On top of that, sustainability transformations happen quickly, and without ongoing training, older workers could be left behind. The good news is that according to PwC, 77% of employees are ready to learn new skills or completely retrain in response to new technologies in the workplace.
Reskilling and upskilling can happen at a few different levels, from government programs to higher education and private employers. However, organizations shouldn’t just rely on external programs. By building effective reskilling programs, businesses invest in services tailored to developing their own workforce while also assisting the global need for more sustainable work.
A Renewable Future
Setting up a green, sustainable future is everyone’s responsibility. As the demand for green skills increases, employers need effective solutions for finding, hiring and training top green talent. RPO providers, especially those with talent advisory services, can be a valuable resource for talent leaders looking to revamp their recruiting programs for a renewable future.
In this article, the third in our Multigenerational Workforce series, we’ll be focusing on millennials in the workplace, including what matters to them and how best to engage them.
By 2025, millennials will make up over half of the workforce, essentially replacing retiring Baby Boomers. They’ve already made a huge impact on the way we work, including leveraging technology to revolutionise productivity. As the older millennials enter their 40s, they’re moving into leadership roles and will have even more influence on how organizations operate into the future. So, how can employers harness the power of millennials to drive their businesses forward?
Who are Millennials?
Millennials, less commonly known as Generation Y, follow Gen X and precede Gen Z. Millennials were born between the early 1980s and the mid-1990s during the rise of personal computers and technology, making them tech-savvy. They’re the first generation to come of age in the new millennium, hence the name millennials. They are also known to be values-driven.
Despite these stereotypes, millennials have been described as self-sufficient, solving their own issues and teaching themselves through the internet rather than relying on others for help. They are also known to be confident, curious and open-minded.
What Matters to Millennials in the Workplace?
Digital & Tech Skills
Having been the first generation to grow up in a digital world, millennials have widespread experience of the development of technology, being both the “pioneers and the guinea pigs”.
This has affected the way that they communicate, with 41% of millennials choosing to communicate electronically instead of face-to-face according to a study by PwC. However, they’re also the last generation to have grown up in a world without the internet in every household.
When considering a job, 59% of millennials claim that technology in the workplace is an important factor. Employers are responding to this by encouraging professional use of social media at work and introducing smartphones as an employee benefit.
Mission and Purpose
Millennials thrive in a workplace that is mission-driven, keeping them motivated and inspired. In our recent report, Inside the Candidate Experience, we found that mission and purpose were the second most important factor for millennials when considering a new job. Those who work for companies with this as a priority feel more accomplished. Millennials want to share their employer’s goals and values in order to feel they are contributing to the world.
The move to a more collaborative working environment has been driven by millennials through the use of technology as it’s become more sophisticated. A collaborative environment allows workers to speak their ideas freely and feel a sense of belonging as part of a team. One way that employers are emphasizing collaboration is through mentorship programs, which have been proven to increase the happiness of workers and their productivity.
How Do You Engage Millennials at Work?
As millennials slowly take over as the majority of the workforce, employers must learn strategies to keep them motivated and feeling valued.
1. Be Open and Transparent
Millennials want openness and transparency from their leaders, ensuring their confidence through factual information that can be validated.
Keep millennials productive by creating clear targets are regular opportunities for feedback and praise. In fact, according to the same PwC study, 51% of this demographic believe that frequent or continuous feedback is a must on the job, making up a huge part of what keeps them motivated and engaged in their work.
2. Embrace Teamwork
To manage a multigenerational workforce, leaders must recognize that each generation may need different methods of management. Among millennials, 74% expressed that they are as happy working alongside other generations as with their own. So, it’s unsurprising to find millennials now managing older workers.
However, 34% of millennials felt that their personal drive could be perceived as intimidating to other generations. Effective programs that encourage interactions between different generations are necessary to overcome these misperceptions. For example, millennials thrive in opportunities such as “reverse mentoring,” in which they are able to learn from and teach skills to older workers.
3. Invest in Employee Development
Millennials look at their work as a means to learn and develop, which may be the greatest differentiator between them and all other generations. Indeed, a whopping 87% of millennials say that growth and development opportunities are important to them in a job, compared to just 69% of non-millennials. Offering opportunities to develop technology skills and interpersonal skills will not only help you retain millennial employees, it will help you ensure this important segment of your workforce is ready to step into leadership roles.
4. Trust Them
While millennials want to be supported through feedback and praise, they also want the freedom to “be their own boss.” Flexibility is important to millennials in the workplace.They’ll happily put in the long hours if they believe their work has a purpose, but those hours may not be during the traditional 9-to-5.
Millennials believe that success should be evaluated through productivity, rather than the number of hours they are seen in an office. If they meet the deadlines you set, don’t be concerned about the hours they clock in and out. Focus on creating a flexible work culture to maximize millennial engagement, allowing employees to have more control over their working hours and location.
5. Lead with Your Values
Millennials are searching for more than “just a job” and want to achieve something worthwhile. Akin to Gen Z, millennials believe that companies and their leadership should be contributing positively to society. Strong corporate ethics will encourage loyalty among millennials.
A report from Deloitte found that 54% of millennials research a brand’s environmental impact and polices before accepting a job offer. To keep up with today’s candidates, it’s vital that organizations have updated employer value propositions (EVP) showcase the companies intentions to address social and environmental concerns.
In our multigenerational workplace, each generation will shape the world of work in their own way, and each will need different things from their working lives. Millennials bring commitment and collaboration to the workplace. In return, they want opportunities to grow and collaborate. Organizations that can effectively empower millennials to provide ethical leadership hold key to keeping them engaged.
Find out our top 10 predictions for what we think the working world will look like in 2030 and the best practices to prepare for the future in our Destination 2030 report.
Future of Work
Destination 2030: 10 Predictions for What’s NEXT in the World of Work
Shifting Perceptions of Tech & Digital Talent for a Leading Retailer
A renowned grocery retailer turned to PeopleScout for a new employer brand and recruitment process to help them change perceptions and become an employer of choice for tech, digital and data analyst talent.
5,000proactive searches per month on average related to software engineering on the client’s career site
13,000views of digital, tech and data job postings per month on average
17,000tech, digital and data pros have joined a new LinkedIn community led by the client
39%increase in LinkedIn impressions
Situation
With the rise of ecommerce and consumers seeking more digital experiences, this leading grocery retailer needed to shift their workforce to support web and mobile app development, data analytics, cloud computing and more. They anticipated that 50% of their new hires would go into digital, tech and data-focused roles, yet their legacy employer brand and recruitment journey was designed for volume in-store hiring.
However, tech and digital talent couldn’t see past the shop floor. In a highly competitive and disruptive market, millennial and Gen Z digital natives simply didn’t think a retailer could match their needs or ambitions, despite the retailer’s vast capabilities and breadth of opportunities.
The organization turned to PeopleScout to help them evolve their employer value proposition (EVP) and employer brand so that it would speak to candidates with tech and digital skills and experience. Because of the stiff competition, the new brand had to work hard. It needed to bring their culture to life, define what was unique about the retailer and do justice to their innovation and variety of roles.
It also had to launch within 50 days to coincide with the conclusion of the launch of a new Digital, Tech and Data business unit.
Solution
In response, we created a dedicated brand platform for digital, tech and data roles. This brought all these roles under one umbrella, delivering integrated solutions across the company. With this bold new direction, the client could offer greater opportunities and take a new value proposition to market.
Curate
It was vital to understand the motivations of our audience. What was important to them, and what could the retailer offer that was a good fit?
To make sure we really knew our target talent’s needs and wants, we had to gain key insights from tech-focused colleagues of all levels, plus external contacts who fit the “digital native” demographic. It was also crucial to ensure all our insight came from a truly diverse pool of respondents.
We started by conducting interviews with leaders and visionaries to establish a clear view on the current situation and strategic direction for the future. We then held focus groups with team leads across data, tech and digital, as well as a series of workshops with their teams. This gave us a clear picture that helped us shape our prototype proposition.
Our external research consisted of in-depth interviews with DevOps specialists, software engineers and data scientists working for competitors for talent in digital, tech and data. Additionally, we surveyed potential candidates on market perception of the retailer. Our proposition was tested on all external candidates before finalizing.
Our key insights told us that external talent wanted:
Challenging problems
Collaborative cultures
Freedom to experiment and learn
A flexible work environment
Training and development
To see their work implemented
We found that the client’s offering matched this head on. We needed to highlight these things in the new employer brand platform:
Size, scale and complexity of challenge
Values and culture
Opportunities to develop
Tangible impact
Ability to work flexibly
Create
We combined our findings into employer value proposition (EVP) pillars that positioned the retailer as the perfect blend of nimble start-up with big business backing and future-facing retail giant. Using these pillars, we devised bold, exciting creative that brought our proposition to life. Steeped in the organization’s longevity and far-reaching impact from serving 71% of the public, the EVP focused on the journey to become a nimble tech-forward organization that creates incredible digital experiences.
The new platform also included a fresh color palette, a new tone of voice and a suite of edgy, tech-inspired characters with a sense of fun to be used across all tech, digital and data branding. Derived from tech and data symbols, they served to disrupt notions of the client as a purely retail organization.
These creative elements were then rolled out across a huge range of recruitment tools, including a brand book, presentation roadshow, social media video content, event materials, careers pages, lanyards, PowerPoint slides, a LinkedIn channel and external media. The tech teams are even dressing their offices using the new creative, applying images of the brand characters to walls and lockers and producing large 3D brand symbols situated across various spaces.
Community
The brand was well received internally and externally, driving engagement and inspiring teams. In order to build buzz, we built a communications and engagement strategy to drive awareness, which also resulted in existing employees becoming brand ambassadors.
With the brand in place, we developed a more intuitive candidate experience with a simplified application process. We also designed an email nurture program to convert interest into applications. These communications harnessed the power of our new brand ambassadors and immersed candidates in personalized content.
The new employer brand messaging now permeates all communications coming from the division, including the specially built LinkedIn community which acts as a digital talent pool for the retailer.
As part of the new brand launch, we ran interactive workshops and sessions to generate brand awareness at the annual Women in Data conference. This gave the client an opportunity to build relationships with women in the tech space and speak about their available opportunities to prospective candidates.
Results
Across LinkedIn, strong results from the launch of the brand show we’ve cut through to successfully appeal to our audience.
In the month after the launch, the LinkedIn content garnered:
216K impressions
4,100 engagements (a 39% increase from prior to the new brand launch)
The LinkedIn community has grown to over 17,000 followers in the three years since the launch.
On the client’s career site, there are an average of 5,000 proactive searches per month related to software engineering, showing that the brand has been successful in positioning the retailer as an employer of choice for software development professionals. The client experiences a monthly average of 13,000 views of digital, tech and data job postings.
In addition, over the last three years, there’s been a 66% increase in visits to the company’s digital, tech and data careers landing page.
At a Glance
COMPANY: Leading grocery retailer
INDUSTRY: Retail
PEOPLESCOUT SOLUTIONS: Talent Advisory
LOCATIONS: 600 supermarkets, 800 convenience stores and ecommerce platforms
That’s why we’ve developed PeopleScout Accelerate—to optimize your recruitment funnel, enhance your candidate experience, maximize ROI and ensure your workforce success—now and into the future.
PeopleScout Accelerate is a tech-powered, ready-to-go recruitment process outsourcing (RPO) solution that combines PeopleScout’s deep recruitment expertise and a pre-configured Affinix™ talent acquisition technology suite—implemented in just two weeks.
In this Talking Talent webinar, PeopleScout Senior Vice President of Business Development Jessie McGowan and Vice President of Global Product and Implementation, Mark Fita, take a deep dive into what PeopleScout Accelerate can do for you. Jessie and Mark dig into how you can leverage PeopleScout Accelerate, specific use cases and its benefits, including:
Faster Time-to-Value Accelerate your ROI. Amplify your agility. This stress-free RPO engagement is ready to deliver the right talent in just two weeks.
A Recruitment Experience Your Candidates Will Love A pre-configured Affinix recruitment tech stack powers a modern, consumer-like journey that candidates have come to expect.
Recruitment Experts on Your Side With over 30 years of industry expertise, we provide know-how and market insights to augment your team and bring your talent acquisition program to the next level.
Ready-to-Go RPO: Introducing PeopleScout Accelerate is available on-demand now.