Category Archives: recruiting

Breaking Into the Boy’s Club

Whether it’s a result of not seeking out women workers or not being able to attract them, or a combination of factors, some fields remain heavily male-dominated.

Many of these same industries—construction, automotive and trucking, to name just three—are facing a worker shortage fueled in no small part by scores of retiring baby boomers.

It seems that at least some of these traditionally male-centric sectors are focusing more closely on female talent in an effort to fill the vacuum.

Earlier this month, for example, the Iron Workers Union and the Ironworker Management Progressive Action Cooperative Trust began offering a new paid maternity leave benefit to members.

According to a statement from the organization, it is “the first to introduce a generous paid maternity leave benefit in the building trades,” where adequate paid maternity leave is “virtually unheard of.”

The new policy includes six months of pre-delivery maximum benefit and six to eight weeks of post-delivery benefit, according to the union. In addition, members are eligible for up to six weeks of paid leave after the birth of the child and two additional weeks for Cesarean deliveries, regardless of what was covered pre-delivery.

The Washington Post recently detailed the new Iron Workers Union policy, noting that all baby boomers will be over the age of 65 by the year 2029, which means one-fifth of the U.S. population will have reached retirement age.

Iron Workers President Eric Dean feels that offering benefits such as paid maternity leave finds the organization well-positioned for the ongoing boomer exodus.

“The whole world is suffering the baby boomer retirement tsunami,” Dean told the Post. “All the construction trades are in competition for capable people. Wouldn’t it be a distinct advantage for us to be the first?”

These trades have other issues to contend with, of course.

The same article points out that “millennials, the workers who would replace [boomers], aren’t as interested in pursuing careers in the trades.” Enrollment in vocational education has dropped over the last three decades as well, according to the Post, adding that the current opioid epidemic “has zapped some of the male workforce, because men are more likely than women to both use and overdose on illicit drugs.”

Other fields with predominantly male workforces—such as the trucking and automotive technician sectors—see such factors draining their applicant pools as well.

“There’s a shortage of high-end, heavily trained individuals who can do diagnostic work,” Tony Molla, vice president of the Automotive Service Association, told the Post. “We’re graduating about 30,000 new technicians a year, mostly men, but that’s not enough to keep up with attrition.”

In response, automakers have been funneling more corporate sponsorships to groups that work to recruit female trainees, such as the Automotive Women’s Alliance Foundation and the Car Care Council Women’s Board, according to the paper. Meanwhile, some trucking companies have begun to hire “female driver liaisons” in addition to creating support groups geared toward female truckers, the Post reports.

Naturally, there’s no promise that these efforts will pay off in the form of more female workers in male-dominated industries. And there’s still the long-standing, problematic perception that women “aren’t cut out” for some work; a stigma that can be extremely difficult to shake for those who do pursue careers in certain fields. But there seems to be an acknowledgement in some corners that change is needed if these industries wish to survive, as Dean told the Post.

“We have to innovate,” he said, “if we want different results.”

A Costly Skills Gap

How much does it cost the average company when open job positions remain unfilled for 12 weeks or longer? Almost $1 million a year, according to a pair of CareerBuilder surveys released today. The surveys, which were conducted for CareerBuilder by Harris Poll late last year and from Feb. 16 to March 9 of this year, found that the average cost HR managers say they incur for having extended job vacancies is more than $800,000 annually. Nearly 60 percent of the employers surveyed report that they have job openings that stay vacant for 12 weeks or longer.

We’re not just talking those hard-to-fill computer science jobs, either. “The gap between the number of jobs posted each month and the number of people hired is growing larger as employers struggle to find candidates to fill positions at all levels within their organizations,” says CareerBuilder CEO Matt Ferguson. “There’s a significant supply and demand imbalance in the marketplace, and it’s becoming nearly a million-dollar problem for companies.”

Indeed, a supply imbalance appears to exist for a variety of occupations, including truck drivers, marketing managers, web developers, industrial engineers, sales managers, HR managers and information security analysts, CareerBuilder finds.

Two in three employers (67 percent) say they’re concerned about the skills gap, and more than half (55 percent) say these extended job vacancies are hurting their organizations. Forty-five percent say they lead to productivity loss, while 40 percent say they cause higher employee turnover, 39 percent cite lower morale, 37 percent mention lower quality work and 29 percent say the vacancies leave them unable to grow their business.

Not everyone agrees the “skills shortage” is real; some economists (and our HREOnline Talent Management columnist and Wharton School professor Peter Cappelli) argue that the real culprit is a reluctance by many employers to pay for the sort of workplace training programs that were commonly offered in the past. Nevertheless, plenty of other surveys also show that employers in a range of industries are contending with hard-to-fill positions, including the manufacturing industry. In fact, given President Trump’s stated desire to “make America great again” by, in part, bringing manufacturing jobs back to this country from overseas by imposing tariffs on foreign-made goods, some manufacturers are trying innovative ways to “grow” their own talent by reaching out to high schools and community colleges to ensure they’ll have talent on hand and won’t be caught short.

Using Data To Defend H-1B Visas

As the federal government this week began accepting H-1B visa applications for 2017, Trump administration officials sent new signals that they will more carefully scrutinize employer use of the popular tool for recruiting skilled workers.

Meanwhile, a new study disputes the idea — espoused by the president himself –that employers use H-1B visas to hire “cheap labor” from overseas, undercutting Americans who would like the jobs.

The study, by the job site Glassdoor, concluded that foreign workers with H-1B visas on average earn nearly 3 percent more than Americans holding comparable jobs. Overseen by Glassdoor chief economist Andrew Chamberlain, the analysis compared salaries reported on H-1B applications with those reported by Glassdor users for comparable jobs.

While a study in the 1990s suggested that wages for computer scientists were hurt by an influx of H-1B workers at the time, the current data show “there’s no evidence that H-1B workers are paid any less” than America counterparts today, Chamberlain writes.

Overall, the foreign workers earn 2.8 percent more, the study found.The pay gap varied by job title and location; for example,H-1B workers were more likely to earn less than their American counterparts in Washington, D.C. than in other major U.S job hubs.

But the program remains a target for critics, including many in the Trump administration, who say it hurts native-born workers by creating a back door for foreign applicants.UnderTrump, the federal government has begun to tighten regulations that govern the program. Last week, for example, officials said computer programming jobs, long a popular use forH-1B visas, would no longer automatically qualify.

It’s unclear what further restrictions may follow. But just this week immigration officials vowed to redouble enforcement efforts against employers that skirt the rules. “Too many American workers who are qualified, willing and deserving to work in these fields have been ignored or unfairly disadvantaged,”said a statement issued Monday by the U.S. Citizenship and Immigration Services.

HR Automation is on the Way

We might never see the human touch completely leave the HR suite—it is the human resource department, after all—but new research suggests that automation is still going to significantly touch the function in the years to come.

The pace of automation in HR might be a bit slower than in other departments, though. In a survey of 719 HR managers and recruiters, CareerBuilder finds that, while more companies are turning to technology to address time-consuming and labor-intensive talent acquisition and management tasks that are susceptible to human error, a “significant proportion” of firms still rely on manual processes. For example, 34 percent of respondents said their companies don’t use technology automation to recruit candidates, while 44 percent don’t automate onboarding and 60 percent said they don’t automate human capital management activities for employees.

So, what is being automated within HR? According to the CareerBuilder study, most automation is centered around messaging, benefits and compensation, “but there is room to increase efficiencies across a variety of basic functions.” Among employers reporting that they automate at least one part of talent acquisition and management, 57 percent said they are automating employee messaging, with 53 percent and 47 percent saying the same about setting up employee benefits and payroll, respectively. In addition, 47 percent indicated that their organizations have automated background screening and drug testing.

Not surprisingly, the overwhelming majority (93 percent) of those whose companies have automated part of their talent acquisition and management processes say they’ve saved time and increased efficiency by doing so. Another 71 percent feel their organizations have improved the candidate experience by automating some processes, with 69 percent saying they’ve reduced errors and 67 percent reporting they’ve saved money and resources.

As organizations expand and add employees, “there’s a certain tipping point where things can no longer be managed efficiently and accurately by hand,” says Rosemary Haefner, CHRO at CareerBuilder, in a statement.

In order to successfully turn certain HR-specific tasks over to technology, “automation needs to be incorporated,” says Haefner, “so the HR team is free to focus on strategies versus tasks, and focus on building relationships with employees and candidates.”

As certain functions on teams become more automated, she says, “we’ll see those workers’ roles evolve and concentrate on the strategic, social and motivational components of HR that technology cannot address.”

 

 

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)

 

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.

Transforming Talent Acquisition

As a talent-acquisition leader, it’s your job to take care of three constituencies: your organization’s hiring managers, the job candidates and, last but not least, the people who work within the TA function.

That was the recurring theme from two TA leaders who spoke about their roles in transforming the talent-acquisition function during two  separate sessions earlier this week at the ERE Conference in New Orleans: Tracie Montgomery, director of talent acquisition and diversity at firm Sedgwick, the nation’s largest third-party administrator; and Steve Knox, General Electric’s head of global talent acquisition, strategy and operations.

At GE, the Boston-based conglomerate’s efforts to recast its image from that of a stodgy industrial firm to a hotbed of digital innovation has, by necessity, included its talent acquisition function as it seeks to attract the software engineers and computer science majors who might otherwise never consider the company as a place to build a career.

“We’re closely partnering with our marketing department on our employee-value proposition,” said Knox.

GE has also has hired an “employee experience leader” to transform its recruiting experience into “a candidate-centric one,” said Knox. “We got some pushback from hiring managers on this, but we reminded them that it’s about the candidates.”

Candidate care is also a priority at Memphis-based Sedgwick, said Montgomery. “I tell my team: ‘Advocate for your candidate. Prep them to let them know who’ll they’ll be interviewing with, explain the career path for that position — it’s TA’s job to get that person ready.’ ”

Knox and his team have also been paying close attention to candidates after they’re hired to see how they’re performing, which marks a change from before, he said.

“We’re now holding TA accountable to how well the people we hired are doing,” he said, adding that determining quality of hire isn’t quite so straightforward now that GE has discontinued its performance ratings. The team relies on regular feedback from managers instead, said Knox.

GE has also replaced its 15-year old applicant-tracking system, which had been “customized by us to the point that it was no longer useful” with a new, mobile-enabled system; using tools such as LinkedIn Elevate to send out tailored content to candidates on a daily basis; using Tableau software to monitor metrics and putting in place GE’s first-ever dedicated sourcing team, said Knox.

Line managers at GE are also helping the company enliven its job descriptions with short videos in which they explain what they’re looking for in candidates, said Knox. This is helpful in attracting diverse candidates, which is a major priority for GE, he said.

“When female and minority candidates see someone who looks like them talking about GE, they tend to say ‘Hey, people like me can work there,'” said Knox.

After Montgomery joined Sedgwick in 2014, she created an internal “talent acquisition college” for Sedgwick’s recruiters to help them become talent advisors, not just recruiters .

“Recruiting is recruiting, but talent acquisition is consulting,” she said. “I had to get my team’s mindset from recruiting to talent acquisition.”

Montgomery put in place a team of three managers to ensure the TA function is hitting its goals in areas such as time-to-hire and regularly surveys hiring managers on their satisfaction with the TA function. Talent acquisition professionals on her team are expected to be able to forge and maintain strong relationships with candidates and hiring managers, she said. “Getting those relationships established is absolutely key.”

GE’s Knox is also focusing on helping his TA team enhance its skills. “It keeps me up at night, wondering how we keep our TA team motivated and developed,” he said. GE has established competencies for the TA team and is using assessments to determine where gaps lie, said Knox. Members of the TA team can also do self-assessments to find their own gaps and are provided with resources to fill them, he said.

“Our goal is to build a world-class TA function,” said Knox.

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.