Bob Marshall’s June 2023 BLS Analysis for Recruiters
The 7 June 2023 Articles…
81% of Enterprise CIOs Plan to Raise IT Headcount this Year
Daily News, June 27, 2023
As part of their talent strategy and to meet critical skills demands, 81% of chief information officers in large organizations plan to increase IT headcount this year, according to a report by Gartner. The report found that only 14% of CIOs expect their IT staff to decrease and 5% expect their headcount to remain the same.
“Attracting and retaining technology talent remain critical areas of concern for CIOs,” said Jose Ramirez, senior principal analyst at Gartner. “Even with advances in artificial intelligence, Gartner predicts that the global job impact will be neutral in the next several years due to enterprise adoption lags, implementation times and learning curves.”
According to the report, 67% of large-enterprise CIOs plan to grow their IT headcount by at least 10% to support their enterprise’s digital initiatives. However, while CIOs are looking to expand their IT teams, many have faced roadblocks in hiring due to economic conditions. Economic volatility resulted in slower IT hiring, according to 41%. Other roadblocks included decreasing overall IT budgets, cited by 35%, and IT hiring freezes, cited by 29%.
“CIOs are taking proactive steps to combat economic volatility by relaxing geographic and role requirements to expand their IT talent pipeline,” Ramirez said. “Some organizations have found success by hiring early career technologists and providing upskilling opportunities to fill critical technology needs.”
The report also found that with the growing demand for IT talent, the most important candidate qualities CIOs look for during the hiring process are requisite technical skills, soft skills and cultural fit. In addition, CIOs cite cybersecurity, cloud platforms and customer and user experience as the 3 most critical technical skills in 2023.
Business Activity Growth at 3-month Low in June, Jobs Grow at Slowest Rate Since January; S&P Report
Daily News, June 26, 2023
S&P’s Global Flash US Composite Purchasing Managers Index signaled a further expansion of business activity at the end of the second quarter, although the rate of growth slowed to a three-month low. The index is now at a reading of 53.0, down from 54.3 in May.
Manufacturers reported a renewed contraction in production, while service providers saw a slower but still solid upturn in output.
Jobs growth sank to the slowest since January. Although higher wages added to firms’ costs, selling price inflation for goods and services hit a 32-month low.
“The overall rate of expansion of business activity in the US remained robust in June, consistent with GDP rising at a rate of 1.7% to put second quarter growth in the region of 2%,” said Chris Williamson, chief business economist at S&P Global Market Intelligence.
However, Williamson noted that growth remains dependent on service sector spending, with manufacturing slipping back into decline after three months of growth.
“While improving supply conditions had helped boost manufacturing production in prior months, an increasingly severe downturn in new orders means factories are running out of work,” he said.
Services firms continued to hire amid greater new orders. That said, the rate of job creation eased to the weakest since January amid challenges replacing voluntary leavers, according to the report.
In response to problems hiring sufficient new staff, the level of outstanding business at service providers increased in June. The upturn followed a decline seen in May, though it was only marginal overall. Strong demand conditions helped support an uptick in business confidence in June. Firms were upbeat in their expectations for output over the coming year, with the level of optimism the highest since May 2022.
“The tightness of the labor market remains a concern, and upward wage pressure remains a key driver of higher costs in the service sector,” said Williamson. “However, it is encouraging to see the overall rate of selling price inflation for goods and services drop to the lowest since late 2020 in a sign that the Fed is winning its fight against inflation.”
In line with subdued demand, firms sought to run down their stocks and reduce input purchasing in June. Input buying fell at the steepest rate since January, and both pre- and post-production inventories declined sharply.
Greater success in finding suitable candidates allowed firms to expand their workforce numbers in June despite concerns surrounding future demand conditions. The rate of job creation slowed slightly but remained among the fastest in a year. Increased employment and lower new orders led to a substantial decline in backlogs of work.
Although strongly upbeat in their expectations, manufacturers moderated their confidence regarding the outlook for output over the next year in June. The degree of optimism was the weakest in 2023 so far amid customer hesitancy and inflationary concerns.
5 Ways to Help Recruit, Manage and Retain Multigenerational Teams
Daily News, June 23, 2023
Understanding what motivates each of the 4 distinct generations in today’s workforce can help companies more effectively recruit, manage, and retain strong teams, according to Robert Half’s new report, “Examining the Multigenerational Workforce,” which provides insights on 5 trends companies should note.
Here are the trends from the report:
- A competitive salary with regular merit increases has the biggest impact on job satisfaction and retention for millennials, Gen Xers and baby boomers. However, Gen Z is more influenced by factors other than compensation. Additionally, Gen X workers (32%) are most likely to feel underpaid. Robert Half suggests companies research and benchmark salaries regularly.
- . One-third of Gen Z professionals prefer to choose when and where to work and desire more in-person interactions than employees of other generations. Furthermore, around 6 in 10 are concerned about missing out on project opportunities and promotions when working remotely. Consider implementing a flexible work policy that allows for both remote options and purposeful in-office time for training and team-building activities, the report advises.
- Despite being digitally savvy, 78% of Gen Z professionals are concerned about AI impacting their job, compared to millennials (48%), Gen Xers (40%) and baby boomers (27%). However, all generations exhibit a preference for reskilling within their current company rather than seeking a different position if the job is at risk. Provide opportunities for employees at all levels to learn new skills, stay up to date with technology and explore different career paths within your company.
- 50% of Gen Z professionals are looking for a new job this year and are interested in full-time contract work as it offers the opportunity to take several assignments and work at multiple companies, building skills and connections. Consider hiring contract professionals who have specialized skills and fresh ideas that can help your business stay nimble.
- Top reasons for all generations to withdraw from considering job opportunities include lack of salary transparency, unclear or unreasonable job responsibilities and poor communication with a hiring manager. Therefore, it is important to be upfront about salaries and job responsibilities with candidates.
“Building and managing teams is complicated, especially as workforce demographics and priorities shift,” said Paul McDonald, senior executive director of Robert Half. “Ultimately, all professionals want to feel supported and valued. Understanding what makes different generations tick and striving to create a work environment that addresses their various needs can go a long way toward improving engagement, productivity, and retention.”
The report is based on surveys of more than 1,000 North American workers 18 and older conducted in November 2022 and in January and April 2023.
Recession, Employee Burnout are Top Risks: Boyden
Daily News, June 22, 2023
The threat of recession ranks as the top external risk to businesses, while employee burnout is the top internal risk, according to a report by executive search firm Boyden. It found 38% of business leaders are worried about a recession, and 24% cite employee burnout as a top risk.
Despite the recession risk, not all business leaders are ready. The report found 38% of leadership teams are somewhat or not at all prepared for recession, and 35% have little or no confidence in having the right talent for their strategy.
The report also found that board-level respondents see human capital as the top driver of organizational growth; 44% said they need to strengthen their own skills in artificial intelligence, robotics and machine learning. In addition, in preparation for a recession, 33% of board respondents reported increased engagement by the leadership team with the board.
“The board-level focus on talent is an ongoing reflection of the deeper engagement of the board in day-to-day business as leaders and organizations strive to adapt in real time,” Boyden President and CEO Chad Hesters said. “Coupled with this, digital capabilities and strategy have become intertwined, accelerating the pace of change and shining a light on the need for digital fluency at all levels of the organization.”
Meanwhile, for growth prospects, 77% of global business leaders are very confident or confident in their organization’s potential. However, 41% said their organizations need to strengthen skills in AI, robotics and machine learning to achieve growth, while 35% have little or no confidence in having the right talent to align with strategy.
Boyden conducted the survey in this quarter among 1,000 senior executives from different industries globally.
These are the Most Boring Jobs, according to Freelancer.com
Daily News, June 21, 2023
Data entry tops the list of the most boring jobs, according to a survey by Freelancer.com. 39% of respondents said data entry jobs — which typically include reporting, lead generation research, customer relationship management and database updating — are their most boring day-to-day tasks at work.
Writing and customer service tasks are the second-most boring jobs, cited by 22% of the survey respondents.
On the other hand, design ranks as the most fun and exciting task with 49% ranking design as their favorite task.
“Our global survey offers valuable insights for businesses looking to improve their work environments and increase productivity,” said Marko Zitko, communications manager at Freelancer.com. “By delegating monotonous tasks like data entry to on-demand freelancers, companies can free up their in-house employees to focus on more engaging work that they enjoy doing. By eliminating the burden of repetitive tasks and administrative work, workplaces can create a more dynamic and enjoyable workplace for everyone involved.”
According to the report, the leading cause of boredom among 38% of workers is the repetition of tasks. While 30% of workers find too many small tasks boring, 27% said too much administrative work causes boredom.
For the report, Freelancer.com surveyed 2,380 freelancers and employers across 103 countries between December 2022 and February 2023.
New Data suggests Great Resignation to Continue
Daily News, June 20, 2023
The Great Resignation looks to continue as the rising cost of living forces workers to seek better-paying jobs, according to PwC survey. The organization found that 26% of employees will change jobs in the next 12 months, up from 19% last year.
Globally, employees are increasingly feeling cash-strapped amid a cooling economy and inflationary challenges, the report found. The proportion of the global workforce who said they have money left over at the end of the month fell to 38%, down from 47% in 2022.
“With the ongoing economic uncertainty, we see a global workforce that wants more pay and more meaning from their work,” said Bhushan Sethi, strategy and principal at PwC US, in a statement. “Addressing these needs will be critical as leaders seek to transform their workplaces enabling business model reinvention, profitable growth and job creation.”
PwC found that 21% of workers now work multiple jobs, with 69% doing so because they need additional income. In addition, the economic squeeze is also driving up pay demands, with the proportion of workers planning to ask for a pay increase rising to 42% from 35% year on year. Among workers planning to ask for pay raise, 46% are struggling financially.
According to the report, workers struggling financially are also less able to meet future challenges, including the need to develop new skills and adapt to the rise of artificial intelligence. Compared to workers who can pay their bills comfortably, those who struggle or cannot pay their bills are 12 percentage points less likely to say they actively seek opportunities to develop new skills.
However, skilled workers are facing the rapidly changing economic and workplace environment with greater confidence, according to the report. Workers who say their job requires specialized skills are more likely to anticipate change ahead.
PwC surveyed 53,912 individuals working or actively in the labor market for the report. The survey, conducted in April, included responses from workers in 46 countries.
Average Time to Hire Rises Again, up to 44 Days in Q1
Daily News, June 2, 2023
The average time to hire rose by 1 day in the first quarter, according to a report released by AMS, a global recruitment process outsourcing provider, and the HR research firm Josh Bersin Co. It took an average of 44 days to hire people in the first quarter, up from 43 days reported a year ago.
In addition, the report showed a widening gap between easy-to-fill and difficult-to-fill roles across all sectors. While some jobs are filled in 14 days, many remain vacant for 2 to 3 months or more.
The report looked at data from eight industries and more than 25 countries across the globe.
“As our data shows, time to hire has risen consistently for the last four years,” said Jim Sykes, global managing director of client operations at AMS. “Make no mistake, the hiring market is not going to get easier any time soon. HR and talent leaders will need to continue to innovate and transform their strategies for acquiring, developing and retaining talent.”
According to the report, energy and defense have the longest times to hire at more than 67 days, with slower times to hire predicted for this year. The industry with the next-longest average time to hire was professional services at 47 days. Filling tech roles also remained challenging.
“Whatever may be happening in the world economy currently, it is clear that supply and demand are not in sync in terms of the type of skills available and the gaps that need to be filled,” said Josh Bersin, global HR research analyst and CEO of The Josh Bersin Co. “The real trailblazers in HR and talent acquisition have recognized this and are thinking outside the box when it comes to developing people, cross-pollinating roles from elsewhere, and actively keeping succession and new-role pipelines full.”