Bob Marshall’s April 2020 BLS Analysis for Recruiters; 5/8/20
The 6 April Articles…
More Use of Contingent Workers among 9 Workforce Trends Post Pandemic
Daily News, May 6, 2020
Expanded use of contingent workers is 1 of 9 human resources trends that will impact the future of work following the Covid-19 pandemic, according to research from Gartner Inc.
The research organization cited one of its surveys that found 32% of companies are replacing full-time employees with contingent workers as a cost-saving measure.
Using more contingent workers will provide greater workforce management flexibility, according to Gartner. “However, HR will also need to consider how performance management systems apply to contingent workers as well as questions around whether contingent workers will be eligible for the same benefits as their full-time peers.”
The other 8 trends noted in the report are:
Increase in remote work. A Gartner analysis found 48% of employees will likely work remotely at least part of the time after Covid-19.
Expanded data collection. Companies are increasing their passive tracking of workers. Already, 16% are tracking employees passively via methods such as virtual clocking in and out as well as tracking computer usage.
Employer as a social safety net. Employers will increase their involvement in the lives of the employees by increasing mental health support, expanding healthcare coverage, and providing financial health support.
Separation of critical skills and roles. “Separating critical skills from critical roles shifts the focus to coaching employees to develop skills that potentially open multiple avenues for them, rather than focusing on preparing for a specific next role,” said Emily Rose McRae, director in the Gartner HR practice.
Humanization (and dehumanization) of workers. “Throughout the Covid-19 pandemic, some employees have formed more connected relationships, while others have moved into roles that are increasingly task oriented,” according to Gartner. “Understanding how to engage task workers in the team culture and creating a culture of inclusiveness is now even more important.”
Emergence of new top-tier employers. Employers must balance the concerns today with the long-term impact on their employer brands in upcoming years.
Shift from designing for efficiency to designing for resilience. Gartner says 55% of organizational redesigns prior to the pandemic were focused on streamlining roles, supply chains and workflows to increase efficiency; however, this has led to fragile systems. After Covid-19, companies will focus more on resilience through activities such as training employees with cross-functional knowledge.
Increase in organization complexity. There will be an acceleration in M&A leading to larger companies and changes in operating models that will create challenges for HR leaders.
Majority of Firms Using Virtual Technology for Interviews amid Covid-19, Even as Hiring Slows: GARTNER
Daily News, May 4, 2020
A majority of companies, 86%, are using virtual technology to interview candidates amid the Covid-19 crisis, according to a survey of 334 HR leaders on April 13 by Gartner Inc. On the other hand, 82% of companies expect a decline in hiring over the next 3 months.
“Recruiting leaders are caught between the sourcing and hiring plans that were initiated before the Covid-19 outbreak and the rise in uncertainty and social and economic instability,” said Lauren Smith, VP in the Gartner HR practice. “As external hiring slows for many organizations, and business priorities change, leaders must evaluate different methods of recruiting and hiring.”
Gartner reported use of virtual interview technology may continue even after the crisis.
However, the pandemic is having a big impact on hiring. Gartner’s survey found 54% of organizations have delayed candidates’ start dates and 31% have canceled internship programs. In addition, 63% of recruiting leaders report more than half their job openings are currently frozen.
INDEED, Reports Job Ads Down by More Than a Third So Far This Year, But Some Enterprises Still Hiring
Daily News, May 1, 2020
Jobs postings are down 36.7% as of April 24 when compared to the same period in 2019, according to data released today by jobs website Indeed. These numbers are from a weekly report tracking the impact of Covid-19. However, it noted 500,000 jobs ads in the US are still being posted weekly despite the increase in unemployment claims and the slowdown in the economy.
Companies hiring currently, include:
*US Postal Service
*Steak ’n Shake
However, the future — including once the acute phase of the pandemic comes to an end— is uncertain Indeed Chief Economist Jed Kolko wrote in an article in ‘Quartz’.
“My own hunches are that more people will work remotely, but the end of the tight labor market will give employers more bargaining power,” Kolko wrote. “International travel, trade, and cooperation may all suffer, and people will be spending less and saving more. Or perhaps not. We are in for a sustained period of uncertainty about what the future normal will look like and how long it will take to get there.
Shortest Recession on Record? But Economic Problems to Linger
Daily News, April 23, 2020
The global and US economies have taken a hit amid the Covid-19 crisis and a recession has been declared. However, this recession could be the shortest on record, according to a post by Lakshman Achuthan, co-founder of the Economic Cycle Research Institute. One reason is that economic activity plunged so deeply, even a partial opening of the economy would bring it above those extreme lows.
“In that case, the recession could end by summertime. If so, this would be among the shortest recessions on record, closer to half a year, compared with a year and a half for the Great Recession.”
However, even if the recession ends quickly, double-digit unemployment numbers are not likely to fall soon, and its likely things will not get back to normal for a while, according to ECRI.
Separately, research from the Pew Research Center found that 71% of Americans believe the economic problems from the pandemic will last for at least 6 months, including 39% who say that it will last a year or more. Only 29% expect the economic problems to last 6 months or less.
The Pew Research Center’s survey included 4,917 US adults and took place from April 7 to April 12.
Almost 40% of Recruiters Expect to See Hiring Increases within 90 Days: Healthcare Segment Most Optimistic
Daily News, April 22, 2020
While the unemployment rate and out-of-work contractors have taken an immediate toll on the economy, more than 38% of surveyed recruiters expect to see increases in job requirements within 90 days, according to the Recruiter Index released by Recruiter.com. And more than 22% expect those results to start in as little as 30 days.
Meanwhile, 17% expect no change.
Recruiter.com is a website that links job seekers, recruiters, and employers. The index gathers data from its network of more than 20,000 small and independent recruiters to uncover critical insights into where hiring is heading.
Other key trends from the Recruiter Index include:
*Healthcare recruiters are among the most optimistic: 45.5% predict increased job requirement loads in the next 30 days, and 54.5% predict increased job requirement loads in the next 90 days.
*The immediate outlook is also positive for recruiters in internet/other information services: 50% predict increased job requirement loads in the next 30 days.
*66% of the recruiters in financial services expect demand to increase or return to normal in the next 90 days.
*Even recruiters in hard-hit industries are more optimistic than one might expect: One-third of recruiters in food/beverage expect job requirement loads to increase within 90 days.
Majority of HR Pros Say Remote Work, Employee Morale Are Challenges During Covid-19
Daily News, April 21, 2020
Most employers are struggling to adjust to remote work and maintaining morale has been a difficulty as the Covid-19 crisis drags on, according to a survey of 2,278 HR professionals by the Society for Human Resource Management.
The organization reported 71% of employers are struggling to adjust to remote work, according to its survey that took place from April 1 to April 7. In addition, 65% say maintaining employee morale has been a problem.
More than a third of employers face difficulty with company culture, employee productivity and leave regulations amid the pandemic.
“Business is not as usual,” said SHRM President and CEO Johnny Taylor, Jr.
“Markets are down, companies are closed, and millions are working from home. It’s a time of change, challenge, and uncertainty,” Taylor said. “But it’s also impermanent — it will pass. The economy will recover, business will bounce back and, soon enough, workers will return to work.”
During the Covid-19 crisis, many companies have also had to close or change to stay solvent. SHRM’s survey found that 40% of employers shut down certain aspects of their business and 83% adjusted business practices. Those changes included:
*Half are no longer hiring
*31% have laid workers off, while 15% have permanently cut headcount with no intent to rehire
*38% have decreased employee hours and 19% have reduced pay rates
*14% have hired more employees, while 10% are considering it
*32% are offering additional paid leave for employees, while another 18% are considering it