Talent Acquisition Newswatch - Issue 1.27
TOP STORY
The Flexible Jobs Index 2023 report has found that 31% of jobs advertised in the UK include options to work flexibly as an employee benefit, a 1% rise from last year. Despite employee expectations of flexibility in their next role, the number of job adverts offering flexibility has stagnated. Experts claim that employers are "shooting themselves in the foot" by not offering flexible working opportunities, and the divide between sectors is clear, with office-based roles much more likely to have flexible options available. The government has announced new legislation aimed at protecting employees' right to flexible working, but experts suggest that employers should approach jobs as flexible by default to better meet the needs of job seekers.
COMPENSATION & BENEFITS
Extreme pay gaps between CEOs and workers have negative effects on employee morale, productivity, and turnover rates, according to a report by the Institute for Policy Studies and the Congressional Progressive Caucus Center. These wage disparities contribute to economic inequality in the U.S. and widen gender and racial disparities, as women and people of colour make up a disproportionate amount of low-wage workers and a small percentage of corporate leaders. CEO pay practices are seen as a governance issue, incentivizing reckless behaviour that harms the economy, such as slashing jobs, manipulating financial data, and avoiding taxes.
DIVERISTY, EQUITY & INCLUSION
Less than half of U.S. employees work somewhere with DEI programs and that number may be dropping, according to Glassdoor's economic research team. The rate of Glassdoor users reporting DEI access has decreased slightly from 43.5% to 43.1%, indicating a trend of waning DEI interest. The legal, IT, and finance industries have seen the biggest declines in workers reporting DEI access. While access to DEI programs has increased in certain industries, such as arts and culture, restaurants and food service, and biotechnology and pharmaceuticals, a Supreme Court ruling on affirmative action may have a chilling effect on DEI in the workplace..
The TUC's research has found that the pay gap between disabled and non-disabled workers is larger than it was a decade ago. They have called for mandatory disability pay gap reporting and a day-one right to flexible work. Experts suggest that employers should focus on seeing the person as an individual and using data and evidence to understand the inequality disabled people experience in the workplace. They should create an action plan to make effective adjustments and recognize fair opportunity and support for disabled workers. Companies are encouraged to lead with intention and create meaningful changes to their pay and hiring structures.
HR expert Lauren Winan stresses the importance of diversity and inclusion initiatives in the high-tech sector, especially in the C-suite, in order to foster innovation and attract new customers. She suggests creating a DEI strategy and measuring its effectiveness to ensure success. Winan also warns that employers who do not put something in place risk being left behind by their competitors.
Tracy Powell-Rudy, the vice president of corporate engagement at Integrate, a nonprofit that helps organizations recruit and retain autistic and neurodivergent talent, discussed the level of awareness and participation of neurodiverse individuals in the workplace. She discussed practical steps that companies can take to become more aware of neurodiversity, make their hiring processes more amenable, and how to signal to the outside world that neurodiversity is something that is on their radar. Powell-Rudy also discussed the strengths that neurodivergent individuals bring to the workplace and how companies who are neuroinclusive can benefit from increased productivity and retention.
East Asian workers in the U.S. are often stereotyped as lacking creativity, leading to their underrepresentation in leadership roles, according to a study from MIT Sloan School of Management. Unfortunate stereotypes of East Asian characters in American media portray them as hardworking and 'book smart' rather than 'street smart,' hindering their advancement. The study found that if East Asians are perceived as less creative, it becomes a challenge for them to rise to leadership positions. To address this issue, organizations should focus on encouraging leaders to nurture creativity in others, rather than solely relying on their own creativity.
HR INSIGHTS
The top five tools and apps that streamline HR operations, include AI-writing tools for job ads, resume pre-screening apps, interview scheduling and recording software, personality testing tools, and employee onboarding and engagement software. These tools can help HR departments stand out in a competitive job market, save time in reviewing resumes and scheduling interviews, assess candidate fit and personalities, and improve new employee onboarding and engagement. By using these tools, HR departments can enhance efficiency and effectiveness in talent acquisition and management.
Wyndham Hotels and Resorts has created an AI tool called Maria that can answer candidates' questions, help them fill out applications, and schedule interviews. CareValidate, an HR software company, has developed Janet, a chatbot that answers workplace accommodation questions for employees and leave and accommodation professionals. As companies embrace AI in the HR industry, there is a mix of curiosity and anxiety among workers about its impact on their jobs. These AI tools are seen as support systems rather than replacements for human workers, and they free up talent acquisition leaders to focus on more impactful tasks.
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LEADERSHIP & TALENT MANAGEMENT
Acquisitions can spark excitement in the public, but it often causes anxiety for the employees involved. In one of the more notable acquisitions of 2023, software company Splunk cut 7% of its workforce. For acquisitions to be successful, employees need to have a clear understanding of the motivation behind it and have some agency, according to Vannessa Gennarelli, author of "Surviving Change at Work" and principal of Fortuna. Gennarelli recommends four best practices for leaders embarking on this big change with their company: communication and transparency, career planning, employee buy-in, and equipping employees with the tools to succeed.
RECRUITING & RETENTION
A recent report by the charity Making the Leap found that only 35% of companies took action to recruit and retain workers with lower socioeconomic backgrounds this year, down from 53% last year. The report also found that while 87% of employers and educators reached out to diverse candidates, only 52% took action on actually recruiting people with these backgrounds. Additionally, research by the Social Mobility Foundation found that professionals with working-class backgrounds earned nearly £6,000 less per year than those with other backgrounds in the same jobs. It is suggested that employers need to actively seek out talent through outreach work in schools and universities, and also need to focus on financial security, job stability, and career progression in order to foster an environment where people can experience social mobility. Blind recruitment practices are also recommended in order to mitigate unconscious biases.
LABOUR MARKET INSIGHTS
The number of CEOs resigning from their positions in 2021 has hit a record high of 1,400, according to a report by Challenger, Gray and Christmas Inc. This is due to a combination of factors including the pandemic, crisis mode, low pay and lack of career advancement, and the need for businesses to prepare for economic changes. Other reasons for CEO resignations include burnout and the challenges of navigating an unprecedented workforce landscape. The median tenure among S&P 500 companies has also seen a 20% decline over the past 10 years, indicating that this period of high CEO turnover may continue for some time.
More than 4 in 10 workers feel lonely at work, with serious consequences for both employers and employees. Men and younger employees are more likely to feel lonely at work, and senior leaders are twice as likely to feel very lonely compared to lower-level managers. Loneliness is associated with negative outcomes such as disengagement, reduced productivity, sleep difficulties, and unhealthy coping mechanisms. Simply returning to the office does not solve the loneliness issue, and leaders should focus on the quality of interactions rather than time spent in meetings or the office.
Generation Z workers are predicted to surpass Baby Boomers in the full-time workforce in 2024, according to a Glassdoor report. Employers will need to address Gen Z's priorities, including community connections, voice in the workplace, transparent leadership, and diversity and inclusion. Companies should focus on repairing employee trust in leadership, improving workplace culture, and revamping total rewards strategies to attract and retain Gen Z workers.
Dan Schawbel examines the top 10 workplace trends to affect how people work and live in 2024. These trends include a compromise between employers and employees on hybrid work arrangements, increased use of artificial intelligence, a rise in workers' physical and mental health issues due to burnout, increased focus on healthcare cost management, a potential exodus of women from the workforce due to lack of childcare support, increased use of student debt benefits, continued labor strikes, organizations experimenting with a shorter work week, the impact of climate change on employee well-being and productivity, and increased use of workforce surveillance and monitoring.
QUOTE OF THE WEEK
“DEI is a belief and value system that goes beyond the workplaces. It’s fundamentally about our integrity and conscience.” – Arthur Chan, Vice President, Diversity, Equity & Inclusion • Advisor • Behavioral Scientist
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