Category Archives: recruiting

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.

Overtime Rules and Flexible Work

The U.S. Department of Labor’s proposed overtime rules may or may not go into effect on Dec. 1 of this year.

But if the new regulations do become reality, large employers could face unintended and unanticipated consequences, according to new WorldatWork research.

The Scottsdale, Ariz.-based non-profit HR association’s recent Quick Survey on Implementation of New FLSA Rules survey polled 948 WorldatWork members with compensation and HR generalist in their titles.

When asked how they are addressing or plan to address employees that were exempt under the old overtime rules who fall below the new standard salary level threshold, 73 percent of employers said they did or will raise some to the new minimum threshold, while reclassifying others to non-exempt. (Fifteen percent indicated that they did or will raise all to the new minimum salary threshold and maintain exemption, while 9 percent intend to reclassify all to non-exempt, and 4 percent said they were unsure of their plans.)

Among those who plan to reclassify employees to non-exempt, 49 percent said their workplace flexibility options will decrease. The number of large organizations planning to go this route is “of particular concern,” according to a WorldatWork statement summarizing the findings.

For example, 62 percent of responding companies with 10,000 to 39,999 employers said they intend to reduce the flexibility options they offer workers.

“The fact that larger employers are more likely to decrease flexibility will obviously affect more employees,” says Kerry Chou, senior practice leader at WorldatWork. “That being said, this result could be a byproduct of the fact that larger organizations are more likely to have formalized flex programs as opposed to ad hoc programs.”

Naturally, the new rules figure to have a significant financial impact on employers, with 69 percent of respondents telling WorldatWork that their overall costs have already increased or will increase as a result of the new standard salary-level threshold. Just 13 percent said that net costs have stayed or will stay the same, and they won’t require taking separate actions such as reclassifying employees as non-exempt to contain costs.

Some employers may look at cutting flexible work options as one way to offset additional expenses connected to new overtime rules, says Chou, adding that workplace flexibility can be a big factor in recruiting and retaining talent.

As such, companies that choose to offer fewer flexible work options may ultimately see higher turnover and greater difficulty in attracting replacements for departing employees, he says.

“The increased cost of overtime compliance, coupled with high turnover—or at least lower job satisfaction of current workers—are consequences that will need to be addressed.”

War for Talent Hits Retail

Although seasonal hiring for the retail industry is expected to be mostly flat compared to last year, finding employees to fill positions for the holiday season is expected to be tougher this year, given changes in the economy and in the retail sector itself. Macys, Target and Toys R Us have announced they’ll hold their first-ever nationwide recruiting events for seasonal workers at all of their stores and facilities during a single day or over several weekends, CNBC reports.

The lower unemployment rate and higher minimum wages in many states and localities means that finding workers to fill seasonal retail positions this year will be more difficult and expensive for retailers than last year — average hourly pay for seasonal workers is up by $4 from last year, to $14 per hour, according to Snagajob. But the growth of e-commerce means that they’ll be struggling to fill warehouse positions at fulfillment centers as well as cashiers and the like — and those jobs can be tougher to fill.

Retailers encountered difficulty filling warehouse jobs in areas such as central Ohio, Memphis, Tenn. and Louisville, Ky., Steve Osborn, a director at the Kurt Salmon consulting firm and supply chain expert, told CNBC.  “The same group of [retailers] that were fighting over people last year will be fighting over people this year. And there’s a few less people to fight over and a few more positions to fill,” he said.

Unlike most customer-facing positions, warehouse jobs tend to be more labor-intensive, which can make them less appealing, Osborn said. Plus, the facilities tend to be located in rural areas, where land is cheap but people are few, he said.

Some companies are responding to the challenge by opening “micro hubs” closer to large urban areas. “This not only helps them get goods to customers faster, but it solves some staffing issues pressing on them,” Challenger, Gray & Christmas CEO John Challenger told Multichannel Merchant. “They can find more people willing to do that work in city neighborhoods, who don’t want to do an hour commute to the exurbs or have transportation issues.”

Other companies are adding perks such as on-site child care to their facility, offering eight-hour days with no work requirement on the weekends, and removing their English language requirement to attract more Hispanic workers. “We have bilingual staff and our temp agencies support us with bilingual supervisors and coaches,” Christine Miller, director of operations for American Eagle Outfitters in Hazleton, Pa., told Multichannel Merchant.

Workers Open to Working Elsewhere

dissatisfied employeeAs you walk through the cubicle farm/office maze/factory floor of your organization, know this: More than half the people you’re passing are open to finding a new job elsewhere, and of those employees, 44 percent are actively looking for new jobs.

That’s according to Aon Hewitt’s latest Workforce Mindset study, which surveyed 2,000 employees. What are the factors most likely to lure employees away from their current jobs? The following are the five key differentiators, according to the survey:

1. Above average pay (62 percent)

2. Above average benefits (61 percent)

3. A fun place to work (58 percent)

4. Flexible work environment (57 percent)

5. “Strong fit with my values” (56 percent)

Of course, the common prescription for avoiding turnover has been keeping employee engagement levels high. But that’s hardly a cure-all either, according to “The Dark Side of Employee Engagement,” a new Harvard Business Review piece by Lewis Garrad and Tomas Chamorro-Premuzic. They cite a number of studies showing that highly engaged employees can be too satisfied with the status quo, more prone to burnout and its attendant ill effects and “too positive” — in other words, highly engaged people can crowd out the more introspective, less-extroverted types who nonetheless are often key to a company’s overall success.

So what to do? Try “training employees to leave their jobs,” writes Hootsuite’s Ryan Holmes, particularly if you want to retain your star employees. Many workers, particularly younger ones, leave companies not necessarily because they’re dissatisfied with their compensation or their manager but because they want to try something new, acquire new skills and push themselves in new directions, he writes. Holmes found that giving employees stretch roles at Hootsuite to try out new positions and acquire new skills without having to leave the company has yielded positive results.