Category Archives: hiring

Labor Market Continues to Tighten

The Bureau of Labor Statistics’ latest official employment report shows that businesses added 227,000 workers last month and the unemployment rate rose slightly to 4.8 percent, while the January national employment report from ADP’s Research Institute shows that private-sector employers adding 246, 000 jobs in January. The BLS report beat estimates by economists surveyed prior to its release by Reuters, who’d predicted the report would show a gain of 175,000 jobs.

The BLS and ADP employment reports are based on different methodologies, as CNBC’s Mark Fahey has noted: ADP counts all employees who are listed as active on an employer’s payroll, while the BLS surveys companies to tally employees who are actually paid. The reports differ by 40,000 about half the time, he wrote.

“The U.S. labor market is hitting on all cylinders and we saw small and mid-sized businesses perform exceptionally well,” said ADP Vice President Ahu Yildirmarz, the co-head of the payroll-processing giant’s Research Institute.

That’s not to say everything’s rosy on the employment front: Yesterday, outplacement consultancy Challenger, Gray & Christmas released its monthly jobs-cut report, which shows U.S. companies made nearly 46,000 job cuts in January — up 37 percent from December, when layoffs totaled 33,627.  However, while last month’s tally was the highest since last April (64,141), it’s a year-over-year improvement from January 2016, when employers announced 75,114 job cuts. This January’s job reductions were concentrated  in retail, which accounted for 49 percent of the job cuts, while retail and energy accounted for the much of the cuts in January 2016. Macy’s led the pack last month, announcing plans to close 68 of its stores and reduce its workforce by 10,000 workers.

“Overall, it was a solid holiday shopping season, but several retailers, including Macy’s, were unable to capitalize on stronger consumer confidence and spending,” said John A. Challenger, CEO of Challenger, Gray & Christmas.

ADP’s report, based on payroll data compiled from its 411,000 U.S. clients, shows that mid-sized businesses with between 50 and 499 employees added the most jobs in January (102,000). Large companies with 500 or more employees added 83,000 jobs, while small businesses (those with between 1 and 49 employees) added 62,000 positions.

“2017 got off to a strong start in the job market,” said Mark Zandi, chief economist of Moody’s Analytics, which helps ADP produce the report. “Job growth is solid across most industries and company sizes. Even the energy sector is adding to payrolls again.”

The BLS report finds that January’s robust employment numbers did not lead to increases in workers’ pay, with a year over year increase of 2.5 percent, compared to 2.9 percent in December.  A smaller-scale study,  Glassdoor’s Local Pay Reports — which monitor salaries for approximately 60 job titles across multiple industries — finds that the annual median base pay in the United States grew by 3.2 percent year over year in January to $51,360.

The positive sentiment on jobs is reflected in Gallup’s latest Job Creation Index, which measures U.S. workers’ perceptions of their workplace’s job climate. The JCP’s January score of +34 is the highest in its nine-year history, Gallup reports. That score compares to JCIs of -5 in January and April of 2009, when the country was in the depths of the Great Recession. Gallup bases the JCI on a daily, randomized sample of employed U.S. adults’ perceptions of their workplace’s hiring-and-firing activity.

Language Matters in Job Listings

In the New York Times this week, Claire Cain Miller wonders why more unemployed men aren’t going after jobs in the industries that are growing the most, such as healthcare.

One key reason behind “one of the biggest economic riddles today,” she writes, is that “these so-called pink-collar jobs are mostly done by women, and that turns off some men.”

Seattle-based software provider Textio recently dug a bit deeper into this conundrum, examining the terminology used in listings for the 14 fastest-growing jobs between the years 2014 and 2024. Their analysis found the way the descriptions of these roles are worded has led to an overabundance of unemployed men and plenty of jobs going unfilled at least partly because they’re perceived as being “women’s work.”

I’ll stop here to point out that the software Textio provides is designed to, in the company’s own words, “optimize job listings for more qualified and diverse applicants.” And, I’m not exactly sure how Textio is defining terms used in job listings as being “masculine” or “feminine.”

All that said, they found some interesting evidence to support the idea that language matters in job listings.

In its analysis, Textio found that the descriptions for these quickly-growing positions “used feminine language, which has been statistically shown to attract women and deter men,” according to the Times.

Consider home health aides, the number of which is projected by the Bureau of Labor Statistics to grow by 38 percent by the year 2024.

Currently, females hold 89 percent of these positions, according to the BLS. The job listings for home health aides—which Textio found to be the most “feminine”-sounding—commonly contain key words such as “sympathetic,” “care,” “fosters,” “empathy” and “families,” and are more appealing to female applicants, according to Textio’s analysis. Textio found the job descriptions and requirements for many other predominately female-held roles—nurse practitioner, genetic counselor and physician assistant, for instance—frequently include similar key words and phrases.

On the other hand are cartographers, who find themselves in “one of the few fast-growing jobs that is male-dominated,” according to the Times, noting that cartographer jobs are expected to increase by 29 percent in the next seven years. (Men currently represent 62 percent of the profession.) In evaluating the wording typically used to advertise these jobs, Textio found “masculine” terms like “manage,” “forces,” exceptional,” “proven” and “superior” were often thrown around.

But health aides need to be “exceptional” and “proven” too, writes Cain Miller, adding that the reverse is not automatically true.

“Cartographers don’t necessarily need to be ‘sympathetic’ or ‘focused on families’ to excel,” she says. “That might be one reason that women have historically entered male-dominated professions, like law or management, more than men have entered female-dominated ones, like teaching or nursing.”

As Cain Miller points out, some healthcare employers have tried to use more manly language in an effort to reverse this trend, “like talking about the ‘adrenaline rush’ of being an operating room nurse.” Rather than rewriting “feminine” job descriptions in hopes of appealing to male candidates, or vice versa, Textio suggests using more gender-neutral lingo.

The latter approach is more effective, according to Textio, which says replacing words such as “world-class” and “rock star” with terms like “premier” and “extraordinary” improved the candidate pool for a software developer position, for example. Textio also claims that more gender-neutral wording enables employers to fill jobs 14 days faster in comparison to posts with a gender bias, in addition to attracting a more diverse collection of applicants.

That makes sense. And, while the Textio analysis focuses primarily on the healthcare sector, it’s probably safe to say that taking this kind of tack could deepen the candidate pool in any number of industries—at a time when finding the necessary talent is becoming more and more difficult.

Job Candidates’ Strange Behavior

One job candidate told her interviewer that if he wanted to get to heaven, he’d hire her. Another asked where the nearest bar was located. Then there’s the candidate who  bragged about being in the local newspaper for allegedly stealing a treadmill from someone’s house. It’s that time of year again: CareerBuilder has released its annual list of the strangest interview mistakes hiring managers say they’ve witnessed while assessing job candidates, based on a survey conducted on its behalf late last year by Harris Poll among approximately 2,600 HR and hiring managers.

Some other examples of strange interview mistakes:

  • Candidate ate a pizza he brought with him (and didn’t offer to share).
  • The candidate asked to step away to call his wife to ask her if the starting salary was enough before he agreed to continue with the interview.
  • Candidate invited interviewer to dinner afterwards.
  • Candidate said her hair was perfect when asked why she should become part of the team.
  • Candidate ate crumbs off the table.
  • Candidate asked the interviewer why her “aura” didn’t like the candidate.

This year’s survey finds that half (51 percent) of employers say they know within the first five minutes of an interview whether a candidate is a good fit for an open position, virtually identical to the findings from last year’s survey (50 percent).

Of course, candidates are also scrutinizing their potential employers during the interview process, and some don’t like what they see. The Execu|Search Group’s 2017 Hiring Outlook, for example, finds that 34 percent of working professionals say their job interviewer could not convey the overall impact their role has on the company’s goals, and that 45 percent did not feel their interviewer made an effort to introduce them to the company culture.

And when it comes to strange experiences, think of the poor candidates who find themselves struggling to answer the bizarre “brainteaser” questions asked by some companies during job interviews, which was the subject of a  Glassdoor report last year. Among the more notable questions:

  • What would you do if you found a penguin in the freezer? (Trader Joes, position unspecified)
  • How would you sell hot cocoa in Florida? (J.W. Business Acquisitions, for a human resources recruiter position)
  • How many basketballs would fit in this room? (Delta Air Lines, for a revenue management co-op position), and:
  • Would you rather fight one horse-sized duck, or 100 duck-sized horses? (Whole Foods Market, for a meat cutter position)

 

NY Removes Barrier to Hiring Ex-Cons

Insurance companies in New York State will soon be barred from denying full coverage for crime-related losses to companies that hire ex-convicts — even if the crimes in question were committed by employees with criminal histories — thanks to a new rule signed by Gov. Mario Cuomo during the last week of December.

The new regulation — the first of its kind in the nation, reports Reuters — is designed to make it easier for companies to hire ex-convicts. Approximately 2.3 million New Yorkers have criminal records, according to the state.

Many insurance companies regard ex-cons as high risk and will deny or limit coverage to companies for sustained losses related to loss or theft committed by an employee with a criminal record, under the assumption that the employer should have known it was taking a risk by hiring the person. This discourages companies from hiring ex-cons, the governor said.

“This first-in-the-nation action will further break down artificial barriers that prevent previously incarcerated New Yorkers from obtaining work and turning their lives around,” Cuomo said in a statement.

The new regulation, which takes effect on July 1 2017, lets businesses obtain the coverage so long as they adhere to a state law that applies to hiring people who have criminal convictions — including considering whether a prior criminal offense is related to the duties an employee will perform, reports Reuters.

“So long as every business owner follows the letter of the law, we should encourage more companies to hire prospective employees rather than punish someone for a mistake in the past,” said Maria Vullo, superintendent of the state’s Dept. of Financial Services, in a statement.

 

Disability Stigma Alive and Well

Came across this post on LinkedIn the other day, reminding us all about the importance of giving disabled Americans the chance to 512903522-disabilityprove themselves in the workplace.

Included in the general reminder by Amber Fritsch, a talent-management consultant, were other reminders for employers — including  the new provisions regarding leave as a reasonable accommodation — the Employer-Provided Leave and the Americans with Disabilities Act — released by the Equal Employment Opportunity Commission earlier this year. Would be nice to think we’re moving in the right direction toward giving the more than 56 million Americans with disabilities a fair shake in corporate America.

But then I harked back to something I had come across earlier in the year — a mention of a movie I can’t say I’ve seen and can’t say I want to: Me Before You.

According to this recent post by Jennifer Laszlo Mizrahi, president of RespectAbilityUSA.org, the film is “the latest Hollywood movie to end with the assisted suicide or euthanasia of the lead character with a disability.”

She calls it “yet another case of ‘ableism’ — prejudice that people with disabilities are somehow less human, less valuable, less capable than others — and should simply die.”

Pretty grim description, but not too far removed from the stigma disabled job candidates still face, she says. The latest research from Mizrahi’s organization shows the numbers of working disabled Americans is still woefully low.

It cites findings that only one-in-three Americans with a disability has a job today and, of those who do, 400,000 work in sheltered workshops, also known as “enclaves” or “crews.” These institutions literally and legally can and frequently do pay people with disabilities sub-minimum wages, says Mizrahi. She adds:

“The lack of opportunity for people with disabilities leads to poverty, prison and, as we see in the fictionalized true story behind Me Before You, even death.”

In a follow-up conversation, Mizrahi cited a Kessler Foundation study showing 70 percent of people with disabilities are working age and currently striving for work. Only 34 percent have any job, however. From her vantage point …

“There has been NO improvement in the labor-force-participation rate in decades for people with disabilities. Zippo. And because other groups made progress and we did not, the gap in [those] rates between people with and those without disabilities has increased substantially.” 

She thinks a serious, systemic and ongoing communications campaign highlighting the benefits of inclusive hiring and self-employment is needed in this country so “people with disabilities can achieve the American dream, just like anyone else.”

Not sure why this hasn’t happened yet. Also not sure what the underlying problem is. And it’s not like we haven’t probed the matter. This recent HREOnline news analysis shows problems of recognizable bias in the hiring process still in existence at a majority of companies.

As Paula Brantner, executive director of Workplace Fairness in Silver Spring, Md., says in that story:

“You start with the adherence to the law [i.e., the Americans with Disabilities Act], but until you get to where people can actually work side-by-side with someone who has a disability, it’s going to be hard to overcome some of those deeply held biases that are really unfounded in reality.

“HR needs to send the message that this is a company that welcomes workers with disabilities and then facilitate that process every step of the way.”

HRE Editor David Shadovitz’s more-positive HRE Daily post last year at least cites some evidence that disabled workers and job applicants are starting to overcome some of these barriers.

The post includes statistics from John O’Neill, director of employment and disability research at the Kessler Foundation, showing that roughly 16 percent of those with disabilities say they’ve experienced barriers resulting from supervisors’ attitudes and about the same proportion experienced barriers resulting from co-workers’ attitudes.

But when you ask them about their ability to overcome those barriers, about 41 percent of the former said they were able to do that and 54 percent of the latter said the same.

So there’s hope. But the overcoming efforts shouldn’t rest on the shoulders of disabled workers alone.

A Bad-Behavior Hiring Predictor

Assessing job candidates for honesty and integrity is nothing new in hiring and HR. Employers have been concerned about who exactly is 103579486-executive-in-handcuffsworking for them — their moral fiber, if you will — long before the Bernie Madoff and Enron scandals rocked corporate America. A quick rundown of a search on HREOnline for “honesty” proves the topic has been around for quite some time.

But this release about a new tool that can help employers in the financial sector and their hiring managers predict whether a prospective hire might compromise a company’s reputation by engaging in fraud, deceit or some other type of errant behavior seemed new and different enough to catch my eye.

Veris Benchmarks created the tool and claims in its release that, by applying it to all job candidates, a company can “improve its hiring process in 15 minutes and help to protect its image and reputation.”

To develop the test, Veris sent its chief scientist, George Paajanen, an expert in the area of psychometrics, into the American prison system to build a tool that identifies the character traits manifested in currently incarcerated white-collar felons. David Shulman, Veris’ CEO and founder, and a Wall Street veteran who’s spent more than 30 years in the institutional-financial-services industry, describes his motivation behind creating the tool:

“Veris Benchmarks was really inspired by the Madoff scandal. After family members and friends were directly impacted by the corrupt scheme, I became consumed with trying to determine precisely what firms were doing to better understand those being hired to act in a fiduciary capacity.

“Executives now have the responsibility to take advantage of new methods to help protect their companies, their shareholders and, even more importantly, their customers. What are companies doing to better understand how their employee would respond when faced with situations of moral gray?”

Of course, fraud and theft are not isolated to the financial industry. Cheating and moral breakdowns happen everywhere. As the release states, “from embezzlement at the dentist’s office, to the PTA, to the retail space and beyond, employee theft amounts to billions of dollars of losses annually.”

As Shulman muses:

“Issues of impropriety have burdened industries and businesses for centuries. What if companies could detect potential malice and the likelihood of theft before the key players were ever hired?”

“What if,” indeed.

Of course, this is but one tool out there. My hunch is there will be more like this to come — tools specific to predicting bad behavior before it ever enters your doors.

Thriving in a Data-Driven World

It’s impossible to have a conversation about recruiting these days without talking about the role of data.

Magnifying glass and documents with analytics data lying on tablSo, I suppose it’s no surprise then to hear John Sullivan, author and professor at San Francisco State University, focus his opening keynote presentation at Recruiting Trends 2016, at the Hilton in Austin, Texas, on the role of data in the hiring decision-making process. (Recruiting Trends, which was acquired by LRP Conferences last November, is being held this week in conjunction with the Talent Acquisition Tech Conference.)

During his keynote titled “Forget the Hype: Data-Based Recruiting Reveals What Actually Works,” Sullivan told attendees that employers need to be much more data-driven.

If you ask CEOs what the biggest challenge is that they’re facing, human capital turns out to be No. 1, Sullivan said. “What’s not so good is that we’ve been a challenge for four straight years,” he continued. “And if you’ve been a challenge for four straight years, it means something needs to change.”

These same CEOs also said they believe recruiting the right talent has a huge impact on business success, Sullivan added.

So, if the impact is that significant, he said, that begs the question, “How come [recruiters] have no money?”

“I would argue it’s because we don’t make a very good business case,” Sullivan said. “We say we hired 20 people, but we don’t say those people brought in $20 million.”

In a fast-changing world, he explained, data tells you what works and what doesn’t work. But you need to be looking at the right data, he added. Google at one time looked at a candidate’s GPA, but the research found that grades made no difference in the quality of talent it hired—so it stopped paying attention to that metric.

“Stop having opinions about what’s the best source for hiring people,” he said. “Sure, you can have opinions, but if you want to influence hiring managers, you’re going to want to have facts that back your recommendations up.”

Sullivan also pointed out that CEOs care about quality of hire, and you should, too.

Most employers pay close attention to metrics such as the cost of hire, he said, but they should be focusing their attention instead on measuring the impact of their hiring decisions.

When you hire Cleveland Cavaliers basketball star Lebron James, what you should be measuring is the impact he’s going to be having on your organization over the next 10 years, he said.

In other words, employers need to be thinking about the big picture.

Sullivan also pointed out that most companies don’t measure the failure rates of the people they hire, but should. He used the example of birth control, where there’s a 9-percent failure rate. If birth control doesn’t work, he joked, you might end up with 20 years of misery. Well, the same could be said of hiring. If you get it wrong, that bad hire could be in your organization forever.

Recruiting Takes to the Air

Recruiters dreaming up new ways to reach passive talent are going to have to dig down pretty deep—or go sky high—to top Kiwi.com.

The online travel agency, based in the Czech Republic city of Brno, recently deployed a fleet of “HR drones” in hopes of catching the attention of technology developers who were about to be relieved of their jobs at a handful of area companies.

Just to clarify, the agency sent actual drones—unmanned aerial vehicles, not spiritless employees from the HR department—to hover around the nearby offices of organizations such as AVG Technologies and NetSuite, after catching wind that the recently-acquired companies were laying off developers.

These drones came with a message, delivered via the blue banners affixed to each of the undersized aircraft. On one side: SMART PEOPLE WANTED, along with the email address join@kiwi.com, for interested applicants. The other, meanwhile, promoted the company’s website, www.kiwi.com.

Captured for a YouTube video, the recent “stunt,” as it was described in a Kiwi.com statement, was meant to give would-be candidates a taste of the creative climate they would find if they became one of the organization’s roughly 750 employees.

“To get smart people, sometimes you need to do something really stupid,” according to a Kiwi.com employee appearing in the video, which notes that the competition to find developers is “fierce” in Brno, “the Silicon Valley of Central Europe.”

“Recruiting the best in the industry is always a challenge, as smart people need to work somewhere that challenges and inspires them,” adds Kateřina Gábová, head of HR at Kiwi.com. “We wanted to dramatically show that, at Kiwi.com, we foster an environment in which clever people will thrive, and that we are looking for the brightest new talent in technology.”

This recruitment mission just took place less than one week ago, so we’ll have to wait and see if it ultimately draws developers to Kiwi.com. But you have to give the company credit for trying something bold to set itself apart from the pack.

Recruiting for the Cloud

Millions of people around the world use Amazon to find everything from light bulbs to rare works of art. Now, thanks to a new service offered by the Seattle-based behemoth, companies will soon be going to Amazon to find and recruit cloud engineers.  The Seattle-based company’s AWS Educate division will be offering free, self-paced  online courses and learning modules through its new Cloud Career Pathways program. Students who successfully complete the offerings will be matched with relevant internships and job openings via the AWS Educate Job Board, which in addition to Amazon itself features employers such as Cloudnexa, Splunk, Instructure and Udacity.

“We built AWS Educate with a vision of helping to cultivate a cloud-enabled workforce,” said Teresa Carlson, AWS vice president for worldwide public sector, in a statement. “We’ve designed Cloud Career Pathways that will help students get targeted experience and skills, and placed those side by side with relevant jobs from some of the most in-demand technology employers today.”

TechCrunch’s Ingrid Lunden notes in a post that Amazon’s move could make it a potential competitor to LinkedIn, which is using its Lynda.com acquisition to offer training in areas such as coding to professionals looking to acquire more skills. Amazon’s decision to offer the courses for free fits with its overall business model, Lunden writes, in which it “prices competitively — or not at all — to bring in more users, who either represent a sizeable revenue opportunity in aggregate, or (in free cases) lead to the potential of paying for other goods and services down the line.”

The Cloud Career Pathways are aligned with four over-arching “job families”: cloud architect, software developer, operations-support engineer, and analytics and big-data specialist, says Amazon. Each pathway includes a minimum of 30 hours of content designed to build core skill sets across the four job families. Once they’ve successfully completed the coursework (delivered via instructional videos, lab exercises, online courses, whitepapers and podcasts), the students will receive badges and certificates that appear on their AWS Educate profile, which they can use in their job applications. They can also apply directly to jobs and internships posted on the AWS Educate Job Board, says Amazon.

What HR Wants in Entry-Level Workers

If new SHRM research is any indication, HR professionals have a pretty good idea of the attributes they’re looking for in entry-level job candidates.

HR leaders aren’t quite so sure, however, of their organization’s ability to spot the skills they’re searching for.

Produced in collaboration with Mercer, SHRM’s just-released Entry-Level Applicant Job Skills Survey polled 521 HR professionals. Overall, 97 percent of respondents said dependability was very or extremely important in determining whether an applicant possessed the necessary qualifications to be hired into an entry-level position, according to SHRM. Eighty-seven percent said the same about integrity, with 84 percent and 83 percent saying that respect and teamwork, respectively, were very or extremely important.

In addition, 78 percent indicated that dependability was one of the three most important traits an entry-level candidate can possess. Forty-nine percent placed integrity in their top three, with 36 percent considering teamwork a top-three quality.

Looking ahead at what skills and traits would best serve entry-level job seekers in the coming three to five years, 62 percent pointed to adaptability, while 49 percent singled out initiative and 49 percent said critical thinking skills would be most desirable.

Respondents were also asked to gauge their faith in the methods their firms use to assess the aforementioned qualities (and a handful of others, such as professionalism and customer focus). Their confidence levels aren’t exactly off the charts.

With regard to evaluating the integrity of an entry-level candidate, for instance, a mere 15 percent said they thought the phone interviews they conduct with these applicants were effective. Just 13 percent of HR professionals reported confidence in their company’s ability to accurately assess integrity through telephone screens.

A simple phone conversation will only tell you so much about a candidate, of course. Respondents did feel that they could get a good sense of an applicant’s character in person, with 96 percent saying they were very or extremely confident or moderately confident or confident in on-site interviews as a way to assess integrity. Ninety-five percent expressed similar belief in panel interviews, with 97 percent saying the same about situational judgment tests.

Still, just 20 percent of those surveyed described themselves as being very or extremely confident in their organization’s ability to effectively assess the overall skills of entry-level applicants, while 11 percent said they were not at all confident or only slightly confident.

Such findings “may be due to an over-reliance on applications and resumes, even though most HR professionals believe them to be ineffective in assessing entry-level candidates, simply because they are ingrained in our culture,” says Evren Esen, director of workforce analytics at SHRM.

“This is a clear indication for a need for new, more effective approaches,” says Esen, noting that improvements in the use of predictive data modeling and assessment technologies could begin to influence the methods HR professionals use to evaluate entry-level candidates.

“Although few HR professionals indicated that their organizations currently used data-based assessment methods such as personality and cognitive tests or simulations,” adds Esen, “the use of these tools may grow in the future.”