Slow Decision-Making Can Lead To Recruitment Challenges

Slow Decision-Making Can Lead To Recruitment Challenges

To recruit and hire employees in the current digital era and hypercompetitive labor market, companies have to redefine the role of the hiring manager to ensure that they are acting decisively and quickly, as a lag in decision-making can cause organizations to lose out on the best candidates, according to a study recently released by technology consultancy Gartner, Inc.

In a report released on June 26, researchers cited an analysis showing that more than three-quarters of hiring managers do not act decisively. According to the study, the characteristics of decisive hiring managers include focusing on prioritizing future talent needs, broadening the candidate funnel, and sharing hiring decisions with experts across the organization.

The research indicated that decisive hiring managers can be highly effective, finding that such managers hire 10% more high-quality candidates and 11% fewer low-quality candidates than typical hiring managers. The study also found that organizations that reward decisive hiring manager behaviors report a 17% reduction in time-to-fill.

The results of the analysis further revealed that the amount of time it takes a hiring manager to make an offer after interviewing is currently 33 days, up 84% from 2010 to 2018. According to researchers, this longer decision-making stage results in a 16% reduction in the acceptance of offers by candidates. The findings also showed that only 31% of hiring managers understand the vision their business leader has for their team.

Researchers recommended that recruiting executives and their teams change how they partner with hiring managers. Specifically, they advised organizations to avoid relying on the hiring manager alone to determine and articulate future talent needs, and to instead encourage recruiting leaders tap into sources beyond the hiring manager to define hiring needs based on the future talent strategy of the organization, and not simply on the manager’s short-term needs.

Citing evidence that candidates trust a hiring manager nearly four times as much as they trust a recruiter to provide the information they need to make a decision, researchers further recommended that hiring managers spend more of their time engaging with candidates. They also suggested that the recruiting function encourage hiring managers to prioritize candidate engagement, motivate leaders by linking hiring to their leadership role, and make it easier for hiring managers to go beyond their existing networks in sourcing talent.

The report pointed out that additional sources of information on future talent needs include business leaders, the workforce planning team, and the analytics team, who can provide insight into critical questions regarding the skills the business needs to grow, the skills and roles their competitors are hiring for, and the future development of the local labor market.

Generation Z May Lack Soft Skills As They Enter the Workforce

Generation Z May Lack Soft Skills As They Enter the Workforce

As members of Generation Z are entering the workforce, they are bringing with them a deep and broad understanding of technology that can help propel businesses forward into the digital era, but they may lack some of the soft skills needed to perform optimally in the workplace, the results of a global study commissioned by Dell Technologies have suggested.

The study’s findings are based on a survey conducted from August to September 2018 of 12,086 individuals aged 16-23 currently attending secondary and post-secondary school in 17 countries, including the U.S. The aim of the study was to gather data on current attitudes and opinions on technology and the workplace among Generation Z students who will be entering the labor force in the near future.

The survey showed that digital natives are set to reshape the workforce, as 80% of the Gen Z respondents said they aspire to work with cutting-edge technology. Of those respondents, 38% reported an interest in pursuing a career in IT, 39% said they want to work in cybersecurity, and 46% said they want to work in technology research and development. The findings further indicated that of the young people surveyed, 98% reported that they have used technology as part of their formal education, and 91% said the technology offered by an employer would be a factor in choosing among similar job offers.

The results also showed, however, that many members of Generation Z are concerned that they lack the soft skills and experience employers are seeking. Although 73% of respondents rated their technology literacy as good or excellent and 68% indicated that they have above-average coding skills, 52% acknowledged that they are more confident that they have the tech skills employers want than the non-tech skills, and just 57% rated their education as good or excellent in preparing them for a career. Moreover, while 77% of respondents said they are willing to serve as a tech mentor on the job, 94% admitted that they worry about whether they have the skills and experience employers are looking for.

In addition, the survey revealed that 80% of respondents believe technology and automation will create a more equitable work environment by preventing bias and discrimination, while 89% recognize that we are entering the age of human-machine partnerships. Of this latter group, 51% of respondents said they believe that humans and machines will work as integrated teams, while 38% indicated that they see machines as tools for humans to use as needed.

The findings also suggested, however, that despite having grown up with electronic devices and social media, Gen Zers yearn for human interaction in the workplace. When asked to identify their preferred method for communicating with coworkers, the largest shares of respondents cited in-person communication (43%) followed by phone (21%), while much smaller shares said they prefer to communicate via messaging apps and texting. In addition, 75% of Gen Z respondents said they expect to learn on the job from coworkers or other people, 58% said they prefer to work as part of team to working independently, and 53% indicated they prefer going to a workplace to working from home.

 

The information contained in this newsletter is for general use, and while we believe all information to be reliable and accurate, it is important to remember individual situations may be entirely different. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. This newsletter is written and published by Liberty Publishing, Inc., Beverly, MA. Copyright © 2019 Liberty Publishing, Inc. All rights reserved.

Both Hard and Soft Skills Are In Demand by U.S. Employers

Both Hard and Soft Skills Are In Demand by U.S. Employers

The number of jobs in artificial intelligence (AI) and other technical fields has been growing over the last five years, but employers continue to report large gaps in soft skills like oral communication, leadership, and time management, a study published by professional networking site LinkedIn indicated.

The “Emerging Jobs Report,” released on December 13, 2018, was created by analyzing LinkedIn’s economic graph data between 2014 and 2018. The report provides information on the positions that have been growing most rapidly across the U.S., the skills associated with these jobs, and the roles that have emerged over the last five years.

According to the report, growth in fields and functions related to AI is likely to continue, as six out of the 15 emerging jobs in 2018 were related in some way to AI. Researchers also pointed out that skills related to AI are starting to infiltrate every industry, and are among the fastest-growing skills on the network. The analysis showed that globally, the demand for AI skills increased 190% from 2015 to 2017.

The study also found that the demand for basic business functions is surging, as basic operational functions like Administrative Assistant, Assurance Staff, and Sales Development Representative were identified as emerging jobs. The findings further indicated that nearly all of the fastest-growing roles in 2018 are jobs that have been growing steadily for years, including Software Engineer, Account Executive, and Recruiter.

In addition, researchers noted that the largest skills gaps are in interpersonal or soft skills, as on average, 26% of all skills reported in 2017 by the network’s U.S.-based members can be classified as interpersonal or soft skills, and soft skills like project management and leadership are among the fastest-growing “unique” skills demanded by employers. Researchers also pointed out that for positions like System Engineer, soft and interpersonal skills made up less than 1% of the skills demanded in 2015, but now account for 8% of the required skills.

The analysis showed that the jobs that grew the fastest in 2018 are Blockchain Developer (33x growth), Machine Learning Engineer (12x growth), Application Sales Executive (8x growth), Machine Learning Specialist (6x growth), and Professional Medical Representative (6x growth). The jobs that were found to have experienced large and sustained year-over-year growth during the study period are Software Engineer, Account Executive, Realtor, Account Manager, and Recruiter.

The skill groups identified as having the biggest shortfalls in 2018 are oral communication, people management, development tools, social media, business management, time management, leadership, graphic design, data science, and web development.

“There is no doubt that AI skills are on the rise, but some typically human skills that today cannot be replicated by machines have been growing almost as fast and are here to stay,” the report concluded.

 

The information contained in this newsletter is for general use, and while we believe all information to be reliable and accurate, it is important to remember individual situations may be entirely different. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. This newsletter is written and published by Liberty Publishing, Inc., Beverly, MA. Copyright © 2019 Liberty Publishing, Inc. All rights reserved.

Enabling Employees to Change Jobs Can Improve Retention

Enabling Employees to Change Jobs Can Improve Retention

As heightened competition in the labor market due to historically low unemployment rates is making it harder for companies to attract and retain critical talent, companies should seek to provide employees with opportunities to change jobs within the organization, a report on the state of the global labor market released by technology consultancy Gartner has recommended.

The findings of the “2Q18 Global Talent Monitor” report, released on September 11, were drawn from a larger quarterly survey that is sourced from almost 20,000 employees in 40 countries. The report found that lack of future career opportunities was the top driver of employee attrition in every major economy, with around 40% of workers surveyed in the U.S. and across the globe ranking a lack of future career opportunities as the most dissatisfying attribute at a previous job.

The survey results showed that there are benefits to creating a more vibrant internal labor market, including a 27% increase in employee willingness to go above and beyond at work, and a 33% increase in employee intentions to stay. The survey also found that managers report internal hires perform better than external recruits across a whole range of measures, such as attendance, collaboration, and meeting expectations—which ultimately add up to 10% fewer regretted hiring decisions.

Researchers observed, however, that cultural norms and a lack of transparency can make it difficult for employees to move within an organization. The survey found that just over one-quarter of employees believe that their organization makes it easy for them to find job opportunities that match their interests, and only 21% believe that it is easy to change positions within their current employer. Moreover, just 37% of managers surveyed indicated that they encourage their direct reports to seek internal opportunities.

The report also pointed out that when employees do find internal opportunities that match their interests, many lack the skills required to fill those jobs, as just 6% of the heads of learning and development and around one-third of the managers surveyed said they believe that the employees in their organization have the skills needed for future roles.

To create an internal labor market, the report recommended that talent management leaders develop processes, norms, and infrastructure that facilitate the internal mobility of employees. For example, researchers said, companies could apply the same technology and tools they use for the external marketplace with their own employees; experiment with different methods to remove the barriers to participation in their internal labor market; and provide employees with structured guidance on internal career options.

From Benefit Trends Newsletter, Volume 61, Issue 12

The information contained in this newsletter is for general use, and while we believe all information to be reliable and accurate, it is important to remember individual situations may be entirely different. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. This newsletter is written and published by Liberty Publishing, Inc., Beverly, MA. Copyright © 2018 Liberty Publishing, Inc. All rights reserved.

Employers Face Challenges in Communicating Compensation Issues

Employers Face Challenges in Communicating Compensation Issues

While employers are increasingly fielding questions from their employees about pay equity, many companies are still struggling to develop an effective approach to compensation communication, the findings of a survey conducted by executive compensation consultancy Pearl Meyer indicate.

The survey of 244 directors and senior executives at U.S. companies was carried out in June 2018. The results showed that 62% of respondents currently are or expect to be fielding questions from their employees on gender pay equity. Of these respondents, a majority indicated that they have clear and detailed information ready to share (30%) or are currently drafting their responses (48%). By contrast, 91% of the executives surveyed reported that they are not getting questions from their employees about the highly publicized CEO Pay Ratio disclosure.

The survey also found that most of the respondents think the quality of their organization’s compensation communication is mediocre, with just 8% of respondents saying they believe the quality is excellent. Although almost half of the executives surveyed (48%) reported that their organization has increased compensation communication in the last two years, slightly more than half (52%) said they are not sharing information about base salary ranges with all employees.

The findings further revealed that while about two-thirds of managers are trained to have formal compensation conversations with their direct reports, the majority (70%) of the executives surveyed believe those conversations are not effective. The survey also showed that less than one-quarter of respondents think employees can appropriately compare their compensation to that of colleagues (21%) or of workers in similar positions in other organizations (22%).

When asked to rate their employees’ understanding of the company’s compensation philosophy, just 8% of respondents said it is very good, while 43% said it is generally okay, and 41% acknowledged it is not good. However, most of the executives surveyed said they believe their employees’ understanding of how their own pay is calculated is either fair (47%) or good (41%). Moreover, when asked how they think their employees would rate the overall value of their organization’s compensation package, only 16% said they believe the rating would be high, while 70% said they think it would be medium.

From Benefit Trends Newsletter, Volume 61, Issue 10

The information contained in this newsletter is for general use, and while we believe all information to be reliable and accurate, it is important to remember individual situations may be entirely different. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. This newsletter is written and published by Liberty Publishing, Inc., Beverly, MA. Copyright © 2018 Liberty Publishing, Inc. All rights reserved.

Salary Budgets Show Signs of Increasing in 2018

Salary Budgets Show Signs of Increasing in 2018

As the labor market tightens, U.S. salary budgets grew by more than 3% for the first time in four years in 2018, according to the results of a global survey on salary budget trends released by human resources consultancy WorldatWork.

The survey, which was conducted in April 2018, collected data on nearly 15 million workers employed in a wide range of organizations and industries across 19 countries. The results showed that the salary budgets in the U.S. have risen by an average of 3.1% (median: 3.0%) in 2018, and are projected to grow by an average of 3.2% in 2019.

Researchers noted that while this growth level is in line with last year’s projection and breaks a four-year trend during which the average salary budget growth rate held steady at 3%, a one-tenth of a percentage increase is not the level of growth that might be expected given the extremely tight labor market and the tax code changes that went into effect this year.

The results also indicated, however, that more employees are progressing in their careers, with an average of 8.6% of U.S. employees receiving promotions in 2017, up from 7.9% in 2016. The survey also found that the mean value of the raises associated with those promotions was 8.7% in 2017, up from 8.4% in 2016.

Researchers observed that several factors could be contributing to this growth in promotion rates in the U.S., including the departure of baby boomers from the labor market and demands by millennial workers for professional growth and development opportunities. They also speculated that employers could be using promotions as a strategy for retaining top employees who otherwise might be lured away as the economy improves and the job market tightens; and that some employers may be relying on promotions to address internal equity issues that arise from hiring outside talent at a premium.

Broken down by industry, the findings indicated that the range of average salary budget increases in the U.S. in 2018 was between 2.5% and 3.6%. The survey showed, for example, that the average salary budget increase for employers in the mining, quarrying, and oil and gas industry rose 0.7 percentage points to 3.6%, although it is expected to fall to 3.3% in 2019. The results further indicated that while the average salary budget increase for employers in educational services was just 2.5% in 2018, it is projected to grow 0.2 percentage points to reach 2.7% in 2019.

The findings also revealed that there was considerable variability in salary budget trends from country to country. Among the countries surveyed in 2018, India was found to have the largest average budget increase at 10%, followed by Russia (7.4%), China (6.6%), Brazil (5.9%), Mexico (4.9%), and Singapore (4.0%). Meanwhile, the countries shown to have the smallest average salary budget increases in 2018 were Switzerland (2.2%), followed by Spain (2.6%), Japan (2.6%), France (2.6%), and Belgium (2.6%).

From Benefit Trends Newsletter, Volume 61, Issue 8

The information contained in this newsletter is for general use, and while we believe all information to be reliable and accurate, it is important to remember individual situations may be entirely different. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. This newsletter is written and published by Liberty Publishing, Inc., Beverly, MA. Copyright © 2018 Liberty Publishing, Inc. All rights reserved.