Category: Talent & Market Insights

PeopleScout Jobs Report Analysis—April 2023

Posted on by nfuqua

U.S. employers added 253,000 jobs in April, beating economist predictions. This shows that the labor market is remaining strong, despite rising interest rates. The unemployment rate fell slightly to 3.4%. Year-over-year wage growth rose to 4.4%.

jobs report infographic

The Numbers

253,000: U.S. employers added 253,000 jobs in April.

3.4%: The unemployment rate fell to 3.4%.

4.4%: Wages rose 4.4% over the past year.

The Good

April’s jobs numbers were stronger than economists expected and show that the labor market is not slowing down. Unlike last month, where leisure and hospitality led job growth, the most recent gains were spread across industries, with education and health services showing the strongest growth. The unemployment rate is also at historic lows. As the New York Times reports, the unemployment rates for some minority groups have also hit record lows. Black Americans have an unemployment rate of 4.7%.

The Bad

Wages growth continues to remain high. While we have seen some pockets of softening, year-over-year wage growth rose again in April, back to 4.4%. High wage growth contributes to inflation, and as CNBC reports, the Federal Reserve is looking for year-over-year wage growth to hit 3%. Wage growth hasn’t fallen than low since spring of 2021.

The Unknown

April’s jobs report doesn’t provide a clear indication of what the Federal Reserve will do at its next meeting. The Fed just raised its key short-term interest rate for the tenth time, as MarketWatch reports. Despite that, Chairman Jerome Powell suggested they could pause further rate hikes to see how inflation and the economy respond to the sharp increase in borrowing costs over the past year. Powell indicated the recent rate hikes have had an impact on families, but there is still a lot of work to do to get inflation down to 2%. The Fed meets June 13-14, so next month’s report could provide some clarity.

Employee Retention by the Numbers

Posted on by banderson

Survey results from McKinsey and Company show that 40% of employees across Australia, Canada, Singapore, the UK and the U.S. are likely to leave their jobs. To that end, below are key facts and figures that illustrate the current state of hiring and how organizations can recalibrate to improve employee retention in 2023.  

Hiring Takes the Back Burner…

(Source: LinkedIn October 2022 Global Talent Trends )

…As Retention Takes Priority

(Source: LinkedIn October 2022 Global Talent Trends )

Employers Don’t Understand Why Employees Leave 

More Important to Employees than Employers Appreciate:

  • Valued by organization
  • Valued by manager
  • Sense of belonging
  • Potential for advancement
  • Having caring and trusting teammates
  • Flexible work schedule

(Source: McKinsey & Company)

(Source: ADP Research Institute’s People at Work 2022: A Global Workforce View)
(Source: Microsoft Work Trend Index Special Report)

Flexible Work Matters 

64% of the global workforce would consider looking for a new job if they were required to return to the office full-time.  

52% of employees are even willing to accept a pay cut—up to 11%—to maintain flexible, hybrid work arrangements. 

(Source: ADP Research Institute’s People at Work 2022: A Global Workforce View)

Employees Crave Development & Growth 

Career progression is the No.1 pull factor attracting employees to new jobs. 

(Source: Achievers 2022 Engagement and Retention Report)

76% of employees would stay at their company longer if they could benefit more from learning and development support. 

(Source: Microsoft Work Trend Index Special Report)

Internal Mobility Makes a Difference 

Workers who have no visibility into internal career opportunities are 61% more likely to have plans to quit their job. 

(Source: Cornerstone People Research Lab and Lighthouse Research & Advisory 2023 Talent Mobility Study )

Employees who make an internal move are more likely to stay at their organization longer than those who stay in the same role.

(Source: LinkedIn October 2022 Global Talent Trends )

Keeping the Human in Human Resources: 3 Employee Retention Strategies for 2023

Posted on by banderson

After the last three years, there’s no doubt that we could all use a deep breath. But, with economic uncertainty filling the air, we haven’t quite reached a steady state. Instead, now’s the time to reflect on all that’s been learned throughout the last few years and recalibrate your strategies to better succeed in today’s reality. In fact, this work has already begun, with new research suggesting that talent acquisition is no longer a leading priority among employers. Instead, a focus on employee retention strategies takes the lead.

According to Lattice’s 2023 State of People Strategy Report, 40% of HR professionals surveyed said that talent acquisition was a top priority in 2021. By 2022, that number had dropped to 17%, with the surveyed professionals indicating that retention would be a leading priority over talent acquisition heading into 2023. Notably, this data tracks globally, as a recent Global Talent Trends report from LinkedIn highlighted decreasing hiring rates from 2021 to 2022 across a sample of 14 countries.  

During the current economic downturn, it’s clear that employers are looking inward at how they can retain their best people. So, how can your organization foster an environment where people don’t want to leave? Consider these three tips for increasing employee retention in 2023:  

1. Establish a Strong Sense of Purpose & Belonging 

According to a study from McKinsey and Company, the relational factors that are most important to employees—such as feeling valued and a sense of belonging—are often overlooked by employers who falsely assume transactional factors (such as compensation) are most important to employees.   

Consider these tips for establishing a sense of belonging with your employees:  

  • Train managers on how to have meaningful conversations with employees.  
  • Encourage managers to be invested in employees’ personal and professional aspirations.  
  • Make vulnerability a normal practice among leaders, managers, and contributors.  
  • Establish a strong DE&I program, complete with employee resource groups. 

Along the same lines, there’s no better way to foster a connection to your organization than by recognizing employees who live your purpose in practice. Whether it’s via a team email, internal newsletter or social media post; identify employees who embody your organization’s purpose. They’ll feel valued, and others will be encouraged to find ways to integrate that purpose into their daily lives, as well.  

2. Maintain Flexible Work Options

The data is clear: Losing flexible work is not an option—not if you want to have any chance of retaining your people. According to a 2022 study from ADP, 64% of the global workforce would consider looking for a new job if they were required to return to the office full-time. What’s more, the survey also found that more than half (52%) of employees were even willing to accept a pay cut if it meant maintaining flexible, hybrid work arrangements.  

As such, it’s important to remember that flexible work doesn’t have to be all or nothing. Consider these options:  

  • Require two to three in-person workdays for all employees.  
  • Allow employees to choose which days they work from home.  
  • Offer atypical work hours — such as 8 a.m. to 4 p.m. or 10 a.m. to 6 p.m. — to accommodate employees with other responsibilities and interests.   
  • If possible, allow full-time remote work.  

After determining which flexible work options make the most sense for your organization, remember to purposefully build opportunities for engagement among your remote or hybrid team. And, if your organization’s policies don’t allow much room for flexibility, be mindful of tying those policies back to the business. For example, rather than citing “productivity” as a vague reason for not allowing employees to work remotely, explain why collaborating in person will allow the business to better serve customers.  

3. Prioritize Development & Internal Mobility

Employees are hungry for growth and development. According to the latest Engagement and Retention Report from Achievers, career progression was the #1 pull factor attracting employees to new jobs. Similarly, new data from Microsoft showed that 76% of employees would stay at their company longer if they could benefit more from learning and development support. So, what can employers do about it? To start, don’t give employees a reason to look elsewhere for opportunities to grow their careers.   

By prioritizing learning and development (L&D) from day one, employees will feel like their career progression is being taken seriously. More precisely, consider mentorship programs, shadowing and skills training to invest in employees’ growth. Likewise, another critical component of retaining employees is internal mobility, which works in tandem with L&D.   

Research from LinkedIn shows that employees who make an internal move are more likely to stay at their organization longer than those who stay in the same role. For example, at the one-year mark, employees are 75% likely to stay without an internal move, while those who make a lateral move or receive a promotion are 87% likely to stay. This trend continues for each year an employee stays at the company. 

Treat People Like People 

At the end of the day, people want to be treated as just that—people. They crave connection, interaction and belonging—all things that were compromised by the seemingly overnight shift to more virtual work. Employers who understand the importance of relational factors over transactional ones will be the ones to retain their employees. And, those who are intentional about establishing a strong sense of purpose; fostering engagement; and creating opportunities for flexibility, recognition and development will emerge stronger with the most valuable resource —their people—intact.  

Workforce Planning: Applying What We’ve Learned to Drive Future Success

Posted on by nfuqua

In the past three years, we’ve seen a talent market that has shifted more drastically and rapidly than we’ve ever seen. These weren’t the standard economic oscillations that take place slowly throughout many years—rather, this pace of change was something new and required talent leaders to spend the last three years fighting fires instead of focusing on workforce planning. 

Now, it’s as important as ever to be more intentional about our strategy as we ask, “What’s next?”  

Taking Time to Reflect 

As talent leaders, we’re no strangers to the Great Rehire, quiet quitting and the Great Resignation—it seems at every turn, we are learning about a new workforce movement. At PeopleScout, we feel the real value comes not from labeling the next talent trend, but in doing the work to help employers struggling with today’s very real talent obstacles and developing custom solutions to address our clients’ unique talent challenges.  

Right now, there is an opportunity to take a look back at everything we’ve learned from our experiences over the past three years and apply those lessons to our talent programs to drive continued success. It’s time to change strategies, rewatch the tapes and recalibrate our approach to meet whatever challenges the future holds.  

So, where do we go from here? We step back, take a breath and reflect, then take action by challenging the status quo.  

In this article, we’re going to outline many of the different lessons learned, as well as opportunities for you to revitalize your own workforce planning.  

The Economic Reality 

While the global economic landscape continues to fluctuate, the pace of change has decelerated. In the U.S., most economic indicators give a mixed picture: some companies have made headlines with layoffs, but job growth in other industries has remained strong. What’s more, monthly jobs reports still show strong hiring numbers and economists have seen positive signs around inflation.  

At the same time, we’re starting to see a bit of “gas pedal, brake pedal” as talent leaders try to read the tea leaves of the economic picture amid these mixed signals. While employers across some industries are still hiring, the pace has slowed from the height of the Great Rehire. 

Globally, we’re seeing the setup for similar environments. In the UK, job vacancies have fallen from their 2022 high, but still remain far above average with a shrinking labor force; however, issues like high inflation, rising wages and worker strikes persist. And, in Australia, the unemployment rate remains at a very low 3.5% and our clients are seeing a tighter applicant pool. 

These are certainly challenges to contend with, and the best way to move forward is with a quick glance back. 

Opportunities for Adjustment with Workforce Planning

With large variances across countries, regions and sectors, the lessons learned and resulting transformations will depend on how the past three years have affected you.  

Here are the five main areas we recommend you prioritize as part of your workforce planning strategy enhancement.  

1. Recruitment Process Improvement 

The first place to start your recalibration is the recruitment process. Did the pandemic and Great Rehire introduce changes into your process? For example, many employers were forced to shoehorn their in-person hiring process into a virtual one through the pandemic and Great Rehire. If that was the case at your organization, does that process still work, especially for your remote and hybrid employees?  

This is one of the biggest opportunities for talent leaders to connect with their teams to understand what worked and what didn’t. Your team members have built up so much knowledge on the ground working through the challenges of the last three years. How can you harness that going forward?  

Similarly, take a step back and look at the data you’re using to define success with your recruitment program. Are you hitting your goals, but still feel like something is missing? If so, you may be looking at vanity metrics, as opposed to sanity metrics. There’s always room for improvement; you just need the right data points to identify it. 

In this case, consider bringing in a recruitment process outsourcing (RPO) partner. A partner can help with any future scaling up and down as your hiring needs change, but they also provide value in helping benchmark your progress and success. For instance, the most frequent questions we get from clients during our routine business reviews with them are around what other employers are doing. What technologies are out there? What innovations have been made? What suggestions do you have? Without an RPO partner, you miss out on that insight.  

2. Employer Brand 

There has probably been more discussion about employer brand during the last year and a half than ever before, and this has been driven largely by the change in workforce and candidate priorities. During the Great Resignation, employees left for perceived greener pastures. To that end, it’s important to understand what you did right and where you may have let employees down during the last few years. In particular, there’s an opportunity to talk to the people who stayed with you to understand what kept them at your organization through some difficult years. Then, you can apply those lessons to your employer value proposition. In fact, if you haven’t updated your employer value proposition and employer brand since before 2020, you’re behind the curve.  

Outside of the pandemic and recovery, the growing influence of Gen Z in the workplace has also influenced employer brands. Our research shows that Gen Z—more than any other generation in the workforce—says that your mission and values, company culture, and diversity, equity and inclusion initiatives influence their decision to apply. With that in mind, does your employer brand reflect the changing values of the workforce?  

 3. Candidate Experience 

The world has fundamentally changed in the last few years, and so have candidate expectations. Specifically, we’ve seen a shift toward the need for a consumer-like candidate experience in recent years, and it has only accelerated. As consumers, we’ve grown to expect even more convenience. In 2020, many of us expanded our use of services, like grocery pick-up and delivery. We order our coffee with an app so we don’t have to wait as it’s made. Even as the pandemic receded, many of us kept up with these conveniences. Candidates expect a similar experience when it comes to finding and applying for jobs.  

In the same vein, when was the last time you evaluated your candidate experience? Have you taken on the task of simply applying for a job at your organization to see the experience through the candidate’s eyes? Did you make compromises in the depths of the pandemic or the chaos of the Great Rehire? Or did you implement tools—like on-demand video interviews or automated text message screenings—and discover that they reduced candidate fall-out? In any case, it’s probably time to recalibrate your candidate experience.  

PeopleScout recently released research around candidate expectations and candidate experience best practices. Read our three most important takeaways. 

4. Retention 

The Great Resignation forced employers to renew their focus on employee retention, and it has definitely had an influence. According to HR Digest, employers that invested in employee development saw a 58% increase in retention in 2022. Beyond employee development, many organizations have also made their moves to remote, hybrid and flexible work permanent.  

In 2023, we expect the pace of turnover to slow down for many employers. That’s because the changing economic landscape has left candidates less confident in their job searches, according to CNBC. As such, we anticipate more workers will place greater value on stability after several turbulent years.  

As you look at your own program improvements, the employees you retain will be valuable assets as they’ve learned the key lessons firsthand. They’ve stayed with your organization and adapted through the changes of the past several years. They know your company better than anyone. What can you do to provide benefits like work/life balance, professional development and wellness? 

5. Optimizing Technology 

Finally, take a look at your technology. Many employers quickly added new recruitment technology solutions in 2020 to support remote recruitment during lockdown. If that was the case at your organization, are those tools optimized for your current needs? 

When it comes to improving your recruitment program, your technology is one of your most important tools: Your recruitment tech stack likely affects every one of the other opportunities for enhancement that we’ve highlighted. With machine learning and artificial intelligence, we can learn from the history of candidate behavior. The right tools can then help recruiters prioritize interactions with candidates and automate communications to candidates in your recruitment funnel. Similarly, the right technology can also make your recruitment process more efficient; help you more effectively share your employer brand; improve your candidate experience; and provide benefits for current employees. If you’re reevaluating your talent acquisition strategy, technology needs to be a part of the conversation.  

Lessons Learned 

During the last three years, many of us have spent so much time dealing with the present that there hasn’t been an opportunity to think about the future. That said, we have learned the value of scheduling time to focus on what’s next; over and over again, we’ve seen the importance of being nimble. With that in mind, we’re encouraging our clients to think about the elements discussed above and identifying ways that PeopleScout can help them meet their talent needs. So, I urge you to take the time to think about how you can adjust your talent program for whatever the future brings. 

Top 7 Workforce Trends to Watch for in 2023 & Beyond

Posted on by akessler

So far, 2023 has proven to be a year of contradictions, making workforce trends hard to pin down. The labor market is cooling, yet unemployment remains low. Despite the slowdown in some industries, others like healthcare and hospitality are still tight. Overall, job openings are still higher than pre-pandemic levels in most countries.

Despite layoffs and economic fluctuation, 46% of talent leaders say recruitment is a priority in 2023 according to Gartner. Plus, 50% of organizations still expect the competition for talent to increase significantly in the next six months, regardless of broader macroeconomic conditions. Employers seem to be taking a more measured approach to recruitment and “right-sizing” their workforce.

This means recruiting leaders must reprioritize recruiting strategies to align with current business needs, plan for multiple potential scenarios in this shifting market, and make decisions with great confidence using data. Despite a projected increase in the unemployment rate, organizations still face recruitment and retention challenges that affect business productivity.

To help employers succeed in their recruitment efforts, we take a look at the top seven workforce trends to watch for in 2023.

1. Closing Skills Gaps

According to Gartner, 64% of managers don’t think their employees are able to keep pace with future skill needs. A third (36%) of HR leaders say their sourcing strategies are insufficient for finding the skills they need.

With the rate of technological advancements, more and more employers are exploring ways to reskill and upskill their existing employees to create an agile and adaptive workforce for the future. Business leaders surveyed in 2022 for the World Economic Forum’s Future of Jobs report said that about 40% of their workforce will require reskilling in the near future. LinkedIn’s 2022 Global Talent Trends report reveals that upskilling and reskilling are top priorities for today’s workers.

Organizations that invest in training for their workforce see greater employee retention. Companies that excel at internal mobility are more likely to retain employees. Shifting job requirements and an uncertain job market along with rapidly changing technology have left people feeling unprepared for their next career move and in need of additional support. In fact, 70% of employees say they haven’t even mastered the skills they need for their jobs today according to Gartner. Upskilling and reskilling opportunities help employees feel more confident in their roles as well as in their future with your company. Adding these opportunities will enable you to adapt and thrive under any circumstances.

2. Offering More Flexibility

In the wake of the acceleration of remote work, many employees are voluntarily quitting because of concerns about workplace flexibility, according to a 2022 survey conducted by business review website GoodFirms. The survey found that 70% of HR manager respondents pointed to flexibility as a reason for resignations, which is why many companies are making flexibility and work/life balance part of their workforce planning. In our own recent research report, Inside the Candidate Experience, surveyed candidates said that flexibility and work/life balance was the top consideration when evaluating a company.

Yet, there is a disconnect between what workers want and what employers offer when it comes to remote work. While job postings on LinkedIn for remote work have dropped in many countries, workers are still applying for remote roles in droves.

Workplace trends
(Source: LinkedIn Economic Graph)

Organizations that rethink working patterns and adapt to candidate expectations will gain a significant edge over their competitors. Offering remote work, flexible hours, four-day work weeks, and job sharing may require significant workforce planning to ensure your organization can maximize productivity while also keeping employees engaged. However, it’s worth it for many organizations, especially those struggling to hire for critical roles.

3. Shifting to Contingent Workers

The desire for flexibility has not only changed when, where and how we work, but also the type of work we seek. The number of freelance workers in the U.S. has grown to a record 60 million as professionals have left full-time work to pursue short-term assignments and contract work.

Employers are making the shift as well. In the six months from May to November 2022, the share of paid job postings on LinkedIn for contract positions increased 26% compared to the same six-month period from the year before. With chronic skills shortages, organizations are clearly looking to contractors and freelancers to supplement their workforce strategy without the expense that comes with full-time employees. These workers can also offer the unique skills and experiences needed to complete specific projects and help fill roles during a leave of absence or while your company assesses future workforce needs.

4. Tapping into New Talent Pools

The labor market has shrunk due to the retirement of Baby Boomers—accelerated by the pandemic—but also because there are fewer people joining the workforce. Not only is the upcoming population smaller and not replacing the Boomers who are leaving the workforce, but one in 10 young people aged 18 to 24 say they never intend to work. Employers are having to work harder to appeal to disillusioned Gen Z-ers.

Meanwhile, talent acquisition leaders are looking to expand their talent pools to fill workforce gaps. DE&I and social mobility efforts are focused on bringing in untapped talent groups. Plus, some organizations are looking to their existing employees to fill critical roles in other areas. We’re currently helping a financial service organization assess employees in their bank branches to find individuals with hidden aptitudes that can be trained as software engineers to support their web and app development initiatives.

In the wake of The Great Resignation, we’re now seeing a rise in boomerang employees—workers who voluntarily resign from your company only to join again later. Workers who left due to extenuating personal circumstances—and even those who went to seek greener grass—can serve as a strong new talent pool and shouldn’t be counted out. They’ll come in with an understanding of the business and can get up and running quickly, often bringing along new skills or fresh perspectives that can propel your business forward.

Another group boomeranging is Baby Boomers as some call for The Great Unretirement. In the UK, over-50s make up 76% of the 830K people who left work during the pandemic. The Government’s latest “back to work” budget rolled out a number of tactics to entice this age group back to work including a new “returnership” apprenticeship program. For employers to tap into this talent pool, they must offer flexibility through part-time and remote work.

5. Rallying Around the Mission

Environment, Social and Governance (ESG) are increasingly on the mind of HR leaders as employees and candidates are concerned with the ethical and sustainability impact of their employer. More than ever, candidates are searching for work they find meaningful and an employer that shares their values—especially the Millennial and Gen Z workforce.

Our research revealed that for 50% of candidates, an organization’s mission and purpose are a key influence on their decision to apply. Yet, when evaluating career sites, we found details on the mission or purpose of the organization less than half (48%) of the time.

According to a study by Mercer, employers with high employee satisfaction and attractiveness scores have significantly higher ESG scores than their peers. HR leaders in particular are focused on the social elements of ESG including diversity, equity, and inclusion—and ensuring their workplace is an environment where everyone can be productive.

6. Prioritizing Employee Well-Being

Burnout is still on the rise globally. In a recent poll from Gallup, 44% of employees revealed they experienced stress during much of the previous day. So, it’s no surprise that 42% of the workforce is reporting burnout—an all-time high.

Workforce Trends
(Source: Future Forum Pulse)

On top of that, in the UK alone, there are 2.2M people inactive in the workforce due to long-term sickness and disability. Moreover, the biggest rise in workforce inactivity since the pandemic due to illness has not been among 50 to 64-year-olds as one might expect, but among those aged between 18 and 24.

With so many people out of the workforce due to long-term illness and stress, employee well-being is becoming a top priority for many organizations, as they recognize the importance of supporting employee mental and physical health. In fact, 79% of employees are likely to stay at a company that offers high-quality mental health resources, and 67% of leaders cited improvement in productivity when mental health support is offered.

According to the World Health Organization, anxiety and depression, two of the most common mental health conditions, cost the global economy $1 trillion (USD) each year.

7. Engaging Outside Talent Acquisition Solutions

While the current economic outlook may have some employers proceeding with caution, business leaders are optimistic about the future. In fact, 85% of leaders said they anticipate their revenue to increase year over year.

Meanwhile, 46% said that staffing would be their top operational challenge for the year ahead. With uncertainty looming, companies may need to reassess their recruitment efforts and create a more agile workforce to evolve for the future. Developing a more flexible model is more critical now than ever in a shifting workplace landscape.

Having trusted guidance at these crucial moments can make all the difference. A talent partner offers a variety of solutions to help organizations attract and hire the right candidates. Whether you’re hiring full-time employees or need to supplement your contingent workforce for a temporary project or long-term assignment, a talent partner can help build and execute a talent acquisition strategy that works.

Check Out Our Report To Learn More About The Future Of Work

DESTINATION 2030: 10 PREDICTIONS FOR WHAT’S NEXT IN THE WORLD OF WORK

Read full report

The Multigenerational Workforce: How to Hire and Retain Older Workers

Posted on by akessler

The aging workforce is a key factor shaping the future of work. In most major economies today, there are around six workers for every retiree. By 2030, all Baby Boomers will have reached 65, the general retirement age threshold, meaning this figure is set to drop substantially.

As Boomers leave the workforce, employers are trying to stem the bleeding from the skills, knowledge, and experience they’ll take with them by finding ways to keep them on the payroll. Organizations that recognize the value of older workers can benefit from leveraging this talent pool. Here, we explore four strategies to help you retain older workers or entice them to return.

Who are the Baby Boomers?

First, let’s take a closer look at the demographic. Baby Boomers are individuals born between 1946 and 1964, the largest generation in history. This generation was born following World War II and lived through the Civil Rights Movement, the Cold War, and massive technological advancements. They are a major force in the global economy and have built and defined the labor market we know today.

Boomers are the most affluent generation in history, and they are expected to pass on trillions of dollars to their children and grandchildren, which could reduce the labor participation of younger generations. Combined with today’s decreased birthrates, the global workforce is already shrinking as Boomers increasingly retire.

A Global Look at Retirement

According to Pew Research Center, approximately 2 million Baby Boomers retire every year. In 2020, this number swelled to a historic high as 3 million workers retired from the workforce in the U.S. alone.

However, attitudes toward retirement vary widely across countries and are influenced by both culture and economics. For example, in the United States, where people value individualism and self-reliance, retirement is seen as a time to relax and enjoy life. But in Japan, there is a strong emphasis on collectivism and community, which can lead people to feel they should continue working and contributing to their circle.

Older Workers Percentage
(Source: Statista, OECD)

Despite people working longer in Japan, the country is projected to have a ratio of just 1.5 workers per retiree at the start of the next decade. In some of Europe’s biggest economies and the U.S., the outlook is not much better with figures hovering around the 2.4 mark. This is due to declining global birthrates, which has fallen by half since 1950. In short, there aren’t enough Millennials and Gen Z-ers to fill Boomers’ shoes.

The exodus of Boomers from the workforce is having a significant impact on the global economy, and some countries are beginning to raise the retirement age to push back the impending dropoff. Moreover, in recent months, as the cost of living has gone up, there’s been a surge in “unretirement” as some who left work during the pandemic are looking for jobs again.

Boomeranging Boomers: Why are Retirees Coming Back to Work?

In the UK, the number of people over 65 working or looking for work hit nearly 1.5 million in the second half of 2022—the highest level on record per the ONS. According to a recent report from Paychex, one in six retirees are considering returning to work.

Some common reasons for coming out of retirement cited in the report include:

  • Financial need. For some retirees, savings and pensions may not be enough to cover expenses, especially if they accrue medical bills. Over half (55%) of retirees who have returned to work say they needed more money. Going back to work, even part-time, can make a difference in their financial situation.
  • Lack of purpose. Jobs create structure and routine in an employee’s life. Losing this can be a difficult adjustment for some after retirement. Some may also feel they are no longer contributing to society or making a difference; returning to work can give these individuals a sense of purpose and fulfillment.
  • Socialization. Work provides a social outlet. In fact, 43% of retirees say feeling lonely is a motivator for returning to the workforce. Work creates opportunities to socialize as employees interact with co-workers and customers.
  • Boredom. Work can provide mental and physical stimulation for retirees. Boredom is cited as a reason for returning to work for 52% of survey respondents. Working can help older people stay sharp and active.
  • Enjoyment of work. Some retirees simply enjoy working. They may find their jobs to be challenging and rewarding, and they may not be ready to give them up when they reach retirement age.
Retaining Older Workers

Attracting & Retaining Older Workers

While older people may be keen to return to the workforce, the job they want in the latter part of their life won’t look like their previous career. They may seek to change how, when, and where they work—including moving to part-time positions or changing fields or job roles. If employers make certain concessions, Baby Boomers might be persuaded to stay a little longer, therefore preventing the “cliff-edge” effect.

So, how can you retain the older workers you have for a little longer or entice them back? Here are four things to consider.

1. Address Ageism in the Workplace

The majority (73%) of those in their 50s and 60s feel they share invaluable skills, experience, and knowledge with colleagues—but 16% believe it is not valued by their employer. Indeed, 62% of hiring managers admit they “are skeptical about hiring retirees.” It’s no wonder that 74% of working retirees “feel judged by co-workers because of their age.”

Creating a sense of inclusion and belonging is crucial for both attracting and retaining older workers. If you have a diversity training program in place, ensure that ageism is being addressed in your training materials. If you don’t have a training program, consider creating one. Not only will you see an improved business performance, benefiting your bottom line, but your employees of all ages will be more engaged, content and productive.

2. Add More Flexible Working Arrangements

Boomers may continue to work after retirement age, but that doesn’t mean they’re seeking the same kind of career. Few of this generation will want to continue working in a typical full-time contract after they hit 65. Family responsibilities and the desire for more leisure time are key concerns for them. Many won’t want to continue taking on high-pressure responsibilities either.

Flexibility and work/life balance are important across all age groups, with Millennials, Gen X and Baby Boomers rating it as a top consideration when looking for a job in a recent survey. Amongst retirees looking to return to work, 53% want a remote position according to the Paychex survey.

3. Provide Training & Mentoring

Older employees, especially those who have returned to the labor force from retirement, value opportunities to learn and develop new skills. Organizations that provide chances for older workers to expand their knowledge and skills have a stronger chance of retaining this talent pool. This could include things like offering new technology training or mentoring or coaching opportunities.

Reverse-mentoring programs have become a popular way to engage both older workers and younger employees who are hoping to build leadership skills. Unlike a typical mentorship, reverse-mentoring involves a younger employee mentoring an older, more experienced mentor. Not only can this help older workers develop digital skills, but it also contributes to a culture of inclusion.

4. Create Opportunities for Knowledge Transfer

While it’s important that older workers harness new skills, it’s equally crucial to ensure that skills aren’t lost from generation to generation. There is already a skills shortage in many fields, from haulage to engineering and healthcare to hospitality. Losing the Boomer demographic from the workforce will intensify the challenge of filling skilled roles—not to mention reduce the dissemination of knowledge for the generations that follow.

The biggest responsibility for Baby Boomers is knowledge transfer and mentoring. Organizations must create opportunities for more experienced employees to work closely with new joiners and less experienced colleagues to impart their wisdom and share their organizational and sector connections. This way organizations can ensure these skills, insights, and knowledge are not lost and can be leveraged for years to come.

Embracing the Aging Workforce

In this tight labor market, employers need to keep an eye out for opportunities to capitalize on the experience and knowledge that older workers possess, particularly as they withdraw from the labor market. Baby Boomers offer loyalty, passion, and confidence. Embracing the aging workforce could prove to be a lifeline for organizations that are planning for a future labor shortage.

Check Out Our Report To Learn More About The Future Of Work

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

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PeopleScout Jobs Report Analysis—March 2023

Posted on by nfuqua

U.S. employers added 236,000 jobs in March, a slowdown from the start of the year. This shows a gradual cooling of the labor market that experts have wanted to see. The unemployment rate fell slightly to 3.5%. Year-over-year wage growth fell to 4.2%.

march jobs report infographic

The Numbers

236,000: Employers added 236,000 jobs in March.

3.5%: The unemployment rate fell to 3.5%.

4.2%: Wages rose 4.2% over the past year.

The Good

As the Wall Street Journal reports, March’s report shows that the job market is starting to cool after a very strong start of the year. This is what officials at the Federal Reserve have been hoping to see as they’ve increased interest rates in the hopes of slowing hiring, wage growth and inflation. The most recent numbers also show a decrease in wage growth, though some industries, like leisure and hospitality, are still seeing rapidly rising wages. The leisure and hospitality sector led wage growth again last month, followed by education and health services.

Additionally, more workers entered the workforce in March, boosting the participation rate for Americans considered in their prime working age to the highest level since 2001. The overall labor force participation rate rose to 62.6%, the highest rate since February 2020.

The Bad

The most recent report is starting to show the impact of recent layoffs. As the New York Times reports, several of the industries most impacted by borrowing costs shed jobs in March, including financial services, manufacturing and retail. This is difficult news for workers as we have also seen increases in unemployment claims over the past several weeks.

The Unknown

March’s jobs report does not reflect the impact of the failure of Silicon Valley Bank as the numbers reflect trends at the beginning of the month. The fallout will begin to show up in the revisions to March’s numbers in April’s report.

Additionally, the big question for experts is whether or not this cooling will be enough to slow the pace of rate hikes at the Federal Reserve. As MarketWatch reports, the slowdown is good news, but it may not be slow enough for officials. The Fed next meets May 2-3.

Job Descriptions vs Job Advertisements: Moving Beyond the Buzzwords to Entice Top Talent

Posted on by akessler

The average job description is about as inspiring as a television user manual. Look, I get it. You want to get the job posted ASAP. Yet, job descriptions are often a candidate’s first introduction to your company, so you’ve got to give them what they’re looking for. You’ve got to make each word count.

There are over 58 million companies listed on LinkedIn and 90 job applications are submitted on the platform every second. Then there’s Indeed, Glassdoor, industry job boards, company career sites, social media, word of mouth, and all the myriad of other ways candidates find work. If you’re not treating your job postings like a critical part of the candidate experience, you’re already missing an opportunity to win over top talent.

So, how do you write job descriptions that stand out?

Job Descriptions vs Job Advertisements: Why It’s Time to Change Your Approach

A job description outlines the duties, responsibilities and requirements for a particular job position. It typically includes:

  • Job title
  • Essential job tasks
  • Qualifications
  • Required skills and experience
  • Reporting structure
  • Salary
  • Other relevant details

While this information is important for finding qualified talent, most organizations over-index their requirements and don’t tell the candidates what they’ll get in return. It’s all about what organizations want and not what they offer, which won’t fly in today’s candidate-led market.

At PeopleScout, we encourage our clients to think about their job postings as job advertisements. In other words, you’ve got to sell the position and your employer brand.

Essentially, put yourself in the candidate’s shoes and think about what the ideal candidate wants to know. Win them over with your employer value proposition (EVP)—that “give and get” between your organization and employees.

What Candidates Want to See in a Job Description

Job Descriptions

Our most recent research revealed the top five considerations that candidates look for when deciding to apply to a company:

  1. Flexible working and work/life balance
  2. Mission/purpose
  3. Rewards and benefits
  4. Career development/mobility
  5. Company values

Not surprisingly, flexibility and work/life balance are top of mind for candidates around the world, particularly for women as they juggle work and family. Our findings also confirmed a post-pandemic shift in candidate expectations, with a greater emphasis on purpose. In fact, 50% of candidates say the mission and purpose of an organization have a significant impact on their decision to apply. Men are more likely to rate organizational philosophy as extremely important when compared to other considerations.

While job requirements will always feature in job listings, to keep up with candidate expectations, it’s time to revamp your job descriptions to advertise your unique offerings as an employer.

6 Best Practices for Crafting Job Postings into Job Advertisements that Stand Out

Here are six best practices to help your job ad stand out on any online job listing site.

1. Rearrange the Structure

Structure your job ads in the order of importance according to your candidate. Before you list your requirements, you’ve got to give the candidates what they want. Think about how you would “sell” the position. Include information about your organization’s mission and purpose, what the role has to offer the candidate, what environment they’ll work in, perks and benefits, and more.

We suggest the following order:

  • Job title
  • Salary information plus any relevant bonus schemes, retirement benefits, etc.
  • Location including relevant information on the work environment and remote or hybrid work arrangements
  • Hours especially information on flexibility (part-time, job share, flexible shifts, etc.)
  • Elevator pitch. This is not your “About us” marketing boilerplate, it’s your “so what?” moment. Show why a candidate should apply for this job and why they should work for you, including your mission, purpose, values, etc.
  • Job summary including the day-to-day responsibilities of this role and the impact the role has on the business
  • Required skills and experience
  • About the recruitment process
  • How to request reasonable adjustments

Also, the call-to-action to apply for the role should be featured prominently so it’s always visible as one scrolls through the ad.

Pro tip: Use relevant sub-headings to help the reader scan the content and choose which parts to read first.

2. Keep Them Short and Sweet

When re-envisioning your job descriptions as job advertisements, consider the time it takes to read and review the job posting, the content’s scannability and clarity, and the overall user experience. Of course, you’ll want to help the candidate determine if they’re qualified for the role by including requirements like education, certifications, previous experience, and technical skills required for the role. You may even want to include soft skills, but don’t go overboard. According to an analysis by LinkedIn, shorter job descriptions get more applications.

Plus, more job requirements can have a negative impact on your diversity recruitment goals. While you may be familiar with the research that shows women are less likely to apply when they don’t meet 100% of the criteria. Interestingly, further research shows that this isn’t because women don’t feel as though they can’t do the job; rather, they don’t want to waste their time or energy on an application if it will be automatically rejected. 

The more requirements you have, the more likely you are to discourage candidates from applying. Plus, as the list of criteria on a job posting gets longer, the applicant pool for that job will likely become less diverse.

Pro tip: Focus on behaviors rather than character traits. So rather than, “You have excellent communication skills,” try, “You have presented to executive leadership or at client meetings.”

3. Make the Content Relevant

Make sure the content of the job posting is specific to the role and that it provides value to the candidate for their decision-making process. Include details about location, hours and shifts, and weed out extraneous or trite verbiage. For example, everyone thinks they’re a team player. Do you really need to say that’s what you’re looking for?

Instead, consider including realistic job previews. These video job advertisements give candidates a feel for the job by showing them a snapshot of the real-life day-to-day tasks and environment. We find it to be an effective screening tool and can reduce attrition by setting the right expectations.

Video job ads receive 70% more applications than written ones.

Pro tip: Try featuring existing employees as brand ambassadors in your job listings and candidate attraction material. Job seekers trust employees three times more than the company to provide credible information on what it’s like to work there. Plus, it will help candidates see themselves in the role.

4. Include the Salary in Job Postings

If your job postings mention a “competitive salary,” I can guarantee a lot of your potential applicants are thinking, “If your salary is so competitive, why won’t you say what it is?”

Salary transparency is a tough topic and one that is evolving quickly. Publishing salaries is increasingly a legal requirement in some countries and states. More than that, pay transparency in job descriptions earns your candidates’ trust. In this day and age, when information is readily available, candidates are more likely to apply when the job ad includes a salary or a salary range, because they feel more confident about what they’re getting into. Plus, by offering this information up front, your recruiters and hiring managers can avoid awkward conversations, and you won’t waste anyone’s time.

Pro tip: Consult your legal team on legislation in your area regarding pay transparency, especially as it applies to remote work.

5. Use Plain Language

Effective job advertisements are 3 things: concise, bold and clear. Keep the verbiage in your job listings simple. Use short words and short sentences. Avoid jargon where possible. There are a number of free online tools that can help identify biased language as well as opportunities to improve readability. The readability score of a job posting should be appropriate to the role you’re advertising.

Plain language is especially important for job titles. Use verbiage that your candidate would use rather than your internal terminology. A candidate looking for a hotel job is more likely to search for “housekeeper” rather than “environmental services engineer.” If a job is for a more experienced employee, use “senior” rather than your internal seniority categories like “level II.”

While you’re at it, assess your job ad for biased language. Does it contain verbiage like “ambitious” or “expert” that are stereotypically masculine? Job postings with gender-neutral wording get 42% more applications. There are a variety of online tools that can highlight biased language.

Pro tip: Skip the cutesy language like “rockstar” or “ninja.” Candidates are over it.

Job Search

6. Optimize Your Job Postings for Search Engines

Search engines, like Google, are the top job search tools used by candidates across the world, with 66% of candidates using a search engine to find job openings. Typically, we see employers rank well for search terms related to their brand name. However, nearly a quarter of organizations (22%) don’t appear in Google for job listings when searching by location and job title, such as “IT jobs in Cincinnati.”

Increase your chances of being found on search engines by rolling out some Search Engine Optimization (SEO) best practices for your job postings. SEO is the practice of optimizing a webpage to rank higher in search engines such as Google, Yahoo, and Bing to drive more traffic to your page. Optimizing your job posting with the right set of keywords can help the right talent find your roles.

Modify your job ad titles and copy to increase the chances of your listing appearing in more searches. Put yourself in your candidate’s shoes and think about what terms they would use to find that type of role. This is what your job posting title should be. Plus, you’ll want to sprinkle it in throughout the job description. Be sure to include locations (even if it’s remote or virtual) and shift times prominently so you show up for candidates looking for those things.

Pro tip: Check out part 2 of “Leveraging Recruitment Marketing Strategies to Supercharge Talent Acquisition for a crash course in SEO for recruiters. Download PeopleScout’s latest report to get more practical tips on creating a better candidate experience.

Inside the Candidate Experience 2023 Report

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5 Career Site Must-Haves to Improve the Candidate Experience

Posted on by banderson

By Simon Wright, Global Head of Talent Advisory Consulting

Your career site is a one-stop shop where candidates can learn about your organization, evaluate your employer value proposition (EVP), and find opportunities. It’s not enough to simply list your job openings. Candidates are savvier than ever and want to be informed about your organization before they apply.

Your career site is a crucial resource for candidates as they research your organization and roles, playing a pivotal role in the candidate experience. For our recent research report, Inside the Candidate Experience, we audited the candidate journey—including the career sites—of 217 organizations across sectors. When we compared the findings with candidate survey data, we found that many career sites were lacking when it comes to providing the experience candidates expected.

In our Talent Advisory work with companies around the world, we often find that organizations seem to be under the impression that candidates visit the career site just once—to submit an application. In reality, we see candidates come back again and again throughout the recruitment process—usually before an interview and again when they receive an offer. Modern candidates, who are used to social media and e-commerce experiences, think of your career site as a content hub rather than a brochure—and you should too.

Here are five career site must-haves to create a positive candidate experience:

1. Intuitive Career Site Search Functionality

The first rule of career sites is to ensure that job openings are easy to find. That means ensuring your job descriptions can be found via Google and that your career site is easy to access from your corporate website. But it goes further—are your job openings searchable on your career site? Can your job listings be accessed from everywhere on your career site?

Candidate expectations are increasingly fueled by consumer experiences. So, employers should take a page from the e-commerce book and streamline career site experiences by offering relevant job searches. This means candidates can navigate quickly and easily to the types of roles that interest them. We’ve helped our clients up-level their job postings by featuring relevant content for certain jobs, including employee spotlights for someone who’s currently in the role and even recommending similar positions that the candidate may be interested in.

Search doesn’t just apply to your job openings. Does your site have a universal search accessible from every page? To satisfy today’s informed candidates, you must make it as easy as possible for candidates to find the content that matters to them—whether it’s information on your benefits, your sustainability statement, or your DE&I efforts.

Careers Sites

2. Information About Your Organizations’ Mission and Purpose

Historically, candidates have given rewards and benefits priority when it comes to their career decisions. However, our study confirms a change in candidate expectations following the pandemic, with more value placed on flexibility and organizational philosophy.

The top things candidates look for when evaluating a company are:

  1. Flexible working and work/life balance
  2. Mission/purpose
  3. Rewards and benefits
  4. Career development and mobility
  5. Company values

Half (50%) of candidates say an organization’s mission and purpose are key influences on their decision to apply. This is true across generations not, just for Gen Z.

Top Considerations by Generation

(Source: Inside the Candidate Experience 2023 Report)

With mission/purpose in the top five considerations for job seekers, it’s concerning how few organizations have this information on their career websites. We found an organization’s mission and purpose less than half (48%) of the time on the sites we evaluated. This means that half of employers are missing an opportunity to make an emotional connection with their talent audiences and help candidates understand how the role they have applied for fits into that mission. If candidates can’t find your mission on your careers site, they won’t even look at the roles you’ve got.

You might be thinking, we’ve got that on our corporate website. Can’t we just link to it there? As soon as you send a candidate away from your career site, they’re less likely to come back to apply. Streamline the candidate experience by giving candidates the information they want in the same place where they can submit an application.

3. Content Featuring Real Employees

During our diagnostic, we evaluated career sites to see if a diverse group of real employees was represented. We found that 35% of organizations don’t feature real employees on their career site. In addition, 60% of career sites don’t contain any video content in which employees share their personal journeys and stories.

Yet, when asked how hearing from actual employees would affect their job search, 86% of respondents said they value hearing employee stories. This is especially important to Baby Boomers with 92% saying it would influence their decision to join an organization. Plus, one in three women also believe it’s critical.

Videos that show a diverse range of employees in their real work environment help candidates see themselves in the role and at your organization. The number one obstacle for candidates when it comes to applying is not knowing what it’s like to work at an organization. So, brands that can show candidates what their day-to-day tasks will look like in a role will see more applications and higher-quality candidates.

4. Information on the Recruitment Process

Setting expectations and giving advice on the recruitment process after you’ve piqued a candidate’s interest is an often-overlooked way of improving the number and quality of applications you receive. If candidates are unsure of what they’re getting themselves into from the start, they will likely pass over your position entirely.

In our candidate experience diagnostic, we found that information about the recruitment process was lacking. Only 13% of employers offer candidates the opportunity to speak to a recruiter or current employee before applying. Just a third of career sites (34%) featured frequently asked questions (FAQs) or advice to support candidates throughout the process (31%).

Less than a third (28%) of the career sites we assessed gave an overview of the key stages of the recruiting process. This information can help set realistic expectations for candidates, reduce their anxiety during the recruitment process and reduce drop-off. Plus, outlining the steps of the candidate journey has the added benefit of making your recruitment process more accessible to hard-to-reach talent groups, supporting your brand’s commitment to diversity and inclusion.

Careers Sites, Application

5. An Opportunity to Join Your Talent Community

As consumers, we’re accustomed to subscribing to offers and news from our favorite brands. Sharing tailored content via marketing automation tools is a simple, yet effective way companies build engagement with prospective customers until they’re ready to buy. Talent acquisition leaders can use a similar approach in their recruitment efforts.

Concerningly, only half of organizations (53%) give candidates an opportunity to register their interest or to sign up for job alerts. Even fewer (39%) encouraged candidates to join a talent community. So, you could be unknowingly turning away talented candidates if you don’t provide a channel for staying in contact with your company. When new roles come up, your talent pool of qualified candidates should be your first port of call.

Candidates wait an average of nine months between joining a talent community and applying for a job. So, maintaining talent pools and communicating with them regularly allows you to demonstrate to candidates what they are missing by keeping them warm until the right job becomes available. These communications should go beyond the standard job updates in order to showcase the value of your employer brand and what they’ll gain by joining your team. Organizations that can successfully implement this strategy will outperform the competition in securing top talent.

Research Report

INSIDE THE CANDIDATE EXPERIENCE 2023

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PeopleScout Jobs Report Analysis—February 2023

Posted on by nfuqua

U.S. employers added 311,000 jobs in February, a slowdown from January but still beating economist expectations. The unemployment rate rose slightly to 3.6%. Year-over-year wage growth rose to 4.6%.

jobs report infographic

The Numbers

311,000: U.S. employers added 311,000 jobs in February.

3.6%: The unemployment rate rose to 3.6%.

4.6%: Wages rose 4.6% over the past year.

The Good

As the Wall Street Journal reports, February’s jobs report demonstrates surprising economic resilience, despite continuing pressures. While some companies, particularly in the technology sector, have cut jobs in recent months, other sectors have more than made up for the job losses. Leisure and hospitality and education and health services led February’s growth.

While some experts have raised concerns about the consistently strong job growth in the face of high inflation and rising interest rates, others say the labor market may be heading toward a “strong, stable, and sustainable pace of growth.” Helping support this analysis, the labor force participation rate for those ages 25-54 increased in February. This added 400,000 workers to the labor force, easing some pressures.

The Bad

While the momentum has continued in many sectors, others are seeing a more mixed picture, as the New York Times reports. Manufacturing, transportation and warehousing and financial services all shed jobs in February. The continued growth also makes it more likely that the Federal Reserve will consider a bigger interest rate increase at their next meeting on March 21-22.

The Unknown

The big question for March is how the Fed will view the latest jobs data along with other economic indicators. MarketWatch reports that officials had planned to slow the pace of interest rate increases, but the latest numbers show mixed signals. The increase in the unemployment rate and the labor force participation rate could persuade the central bank to stick with its plan for smaller interest rate increases. However, the blockbuster jobs numbers in both January and February will give officials something to consider later this month.