Talent Acquisition Newswatch - Issue 1.37
TOP STORY
The concept of loyalty between employers and employees in the workplace has significantly changed over the years, with both sides feeling disillusioned and unfulfilled. The traditional psychological contract, which involved mutual understanding and reciprocity, has been broken due to factors such as globalization and the rise of remote work. Employers have cut back on benefits and job security, while employees have responded by reducing their efforts and seeking higher-paying opportunities elsewhere. To rebuild trust and loyalty, employers can establish alumni programs and offer voluntary buyouts, while employees can contribute by being productive and committed members of the team.
COMPENSATION & BENEFITS
Small business owners can address the pay gap by reviewing their business policies and practices, including auditing pay to ensure fair compensation, establishing equitable hiring practices, offering flexible work options, and supporting pay transparency. Implicit bias continues to impact women in the workplace, and small business owners can overcome this by recognizing and managing implicit bias through training and resources. By committing to equitable policies for pay, small businesses can send a powerful message and work towards achieving pay parity.
A report from Reward Gateway reveals that over half of U.S. employees rate their company's well-being support as average or poor, with low ratings for mental, financial, and physical well-being. 23% of workers are actively seeking new employment due to low well-being, citing reasons such as feeling overworked and underpaid, burnt out, unsupportive managers, and employers who don't care about their well-being. Employees expressed a desire for recognition and financial support, with 40% not remembering being recognized by a manager or senior leader in the last 12 months. Focusing on well-being at the organizational level can help break the burnout cycle and improve retention.
DIVERSITY, EQUITY & INCLUSION
McKinsey research shows that companies with diverse leadership teams have a 39% increased likelihood of outperformance compared to those with a lack of diversity. Companies that prioritize diversity and inclusion are more likely to engage and retain employees, inspire a sense of belonging, and satisfy and retain customers. Organizations are held back by mistrust, fear, and lack of education, and there is a lack of real accountability in diversity and inclusion programs. To create lasting change, organizations should move away from one-time diversity training sessions and instead implement ongoing training programs and resources.
Innovation in talent management, particularly in integrating inclusivity, is a key focus for Mellors, who believes in a holistic approach to inclusion. Mellors describes their approach as a two-tiered system - 'big I and little i' - that includes structured programs and everyday interactions to foster a culture of inclusion. Their focus on inclusion has yielded impressive results, with their Inclusion Index consistently scoring in the high 80s. Research from LinkedIn shows that more inclusive companies earn 2.5 times more 'cash flow' per employee and diverse teams make better business decisions 87% of the time, making inclusivity an important factor for success and attracting young talent in 2024.
Age discrimination is an important facet of diversity, equity, and inclusion work, protected by federal law in the United States. The Age-Friendly Institute reports that most older workers prefer companies that are explicitly welcoming to their age segment. The U.S. Equal Employment Opportunity Commission has resolved thousands of age discrimination cases in recent years, highlighting the presence of ageism in the workplace. Examples of age bias include microaggressions, succession planning that leads to the replacement of older employees, screening out older workers during the hiring process, and the firing of HR leads who question discriminatory practices.
A new survey challenges the notion that there are significant differences between generations of working women, emphasizing the importance of building stronger relationships between women of different ages. The survey found that all generations of women share similarities in their definitions of success, including finding a work-life balance, reaching the top of an organization or industry, and leaving a meaningful impact through their work. Women of all generations face similar obstacles in their career advancement, such as pay inequity and lack of representation in decision-making roles. To strengthen generational unity, it is important to recognize shared values, foster open dialogue, and create inclusive policies that accommodate diverse needs and priorities.
HR INSIGHTS
Kraft Heinz is developing an internal generative AI tool called KraftGPT to provide real-time insights and information across its supply chain and help employees make strategic decisions. The company is using Microsoft Azure OpenAI tools, proprietary AI models, recommendation systems, and risk classification systems for data analysis. The goal of the tool is to boost employee efficiency and reduce tedious tasks, allowing experts to focus on more important matters. Kraft Heinz is in the early stages of testing and there is no definitive timeline for the rollout.
A good overall culture is important for employee retention, but a positive team culture is equally crucial. Team culture is controlled by managers and reflects their attitudes and behaviours within the company. A team's culture impacts productivity, engagement, and employee well-being. To create a positive team culture, managers should prioritize communication, recognition, and transparency.
Companies are making changes to their physical workspaces, such as adding satellite locations, flexible workspaces, and short-term leases, according to a survey of workspace decision-makers. Prioritizing connection and collaboration, companies are adding digital conference areas, unassigned desks, and meeting spaces. Having the option to come to a physical office is seen as beneficial for employees by 86% of respondents. Employers are reassessing the workplace to improve company culture, encourage in-person interactions, and be a more attractive employer.
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LEADERSHIP & TALENT MANAGEMENT
Investing in employee development helps attract great employees by showcasing the company's commitment to valuing and supporting individual growth and aspirations. Employee development keeps employees engaged, reducing disengagement and burnout, and fostering a sense of connection and camaraderie within the organization. It is an investment that pays off in the long run, leading to increased employee retention and significant cost savings compared to the expense of losing and replacing employees. Employee development creates promotable employees and strengthens the internal talent pipeline, providing opportunities for upward mobility and leveraging existing knowledge and loyalty. It helps organizations be future-ready by focusing not only on technical skills but also on developing critical soft skills, such as effective communication and adaptability, necessary for a resilient workforce.
Investing in your executive team is essential for the success of your organization. Core competencies should be identified to build an ideal executive profile for your brand. Assessing executive candidates based on these competencies and working with executive recruiters can lead to better hiring decisions. Coaching and mentoring executives is important for their ongoing growth and development. Providing learning opportunities and connecting executives to their teams and each other can improve communication and collaboration within the organization.
RECRUITING & RETENTION
Technology jobs have dropped in Indeed's 2024 Best Jobs list, with healthcare and engineering positions taking the top spots. Only one tech role, data engineer, made it to the top 10, with a high average salary of $130,035. The drop in tech jobs mirrors the industry's hiring trends in recent years, with a hiring spree followed by layoffs and investment cuts. The demand for tech jobs is expected to rebound in 2024, driven by technology adoption and modernization across industries.
A recent survey found that 38% of business leaders believe layoffs are likely in 2024, causing anxiety among employees. Investing in offboarding strategies can turn the negative experience of being laid off into a positive one. Career transition services, such as career coaching and job matching platforms, can help employees who have been laid off find new opportunities and feel supported during the transition. By normalizing discussions about layoffs and providing support to both laid off employees and those who remain, employers can create a positive work environment. Employers should consider the full employee life cycle and how they can support employees during their time with the company and after they leave.
LABOUR MARKET INSIGHTS
81% of workers believe their wages have not kept up with the rising cost of living. 34% of employers say salary expectations are putting a strain on their bottom line. 95% of workers are looking or planning to look for a new job in 2024. Flexible scheduling is seen as an important employee benefit for mental health and well-being.
The number of warehousing and storage employees in the US fell to 1.85 million workers in December, the lowest count since November 2021. Retail brands, e-commerce players, and third-party logistics providers are closing facilities and implementing job cuts, impacting over 2,800 employees tied to warehouse and distribution operations. Companies are reassessing their supply chain operations to increase efficiency and reduce expenses, leading to network consolidation and job cuts.
Salesforce is set to lay off about 700 employees, representing about 1% of its global workforce. This is the second round of cuts for Salesforce, with a total of 10% of global jobs disappearing by 2022. The company still has about 1,000 job openings, indicating that this is more of a routine adjustment than a broader downsizing. This announcement follows similar job cuts by major players such as Amazon, Google, eBay, and Microsoft in the wake of the Covid-19 pandemic.
Amazon, Google, eBay, and Microsoft in the wake of the Covid-19 pandemic.
QUOTE OF THE WEEK
"Talent wins games, but teamwork and intelligence win championships." – Michael Jordan