Category: Employers

The pandemic has stifled their career

According to a recent by Indeed, findings are on par with what HR experts know about Gen Z leading the Great Reshuffle. Likewise, the report builds on previous data wherein Gen Z feels disconnected and disadvantaged due to working remotely. In February 2022, Washington State University’s Carson College of Business reported that most of their Gen Z survey-takers felt that the COVID-19 pandemic stifled their career.

Indeed’s May 2022 report contextualizes these concerns with a fresh spin. Simply put, just because Gen Z feels as if they’re missing out on office work does not mean they want to start working in the office full time, if at all.

Flexibilty, as well as other perks, remains one of the ways employers can help attract and retain their young talent. Indeed’s research highlights that explicitly with the report finding that 95% of Gen Zers are considering a job with more work-from-home flexibility and 78% are actively looking for one.

Just less than half (47%) of Gen Z responders told Indeed they’re very likely to change jobs within the next 12 months, more than the slightly older cohort, millennials. Of those Gen Zers making moves to jump ship, 61% were driven by employers’ implementation of a return-to-office plan conflicting with their work from home desires.

Despite their concern, for example, more than half of Gen Zers interviewed by talent acquisition firm Lee Hecht Harrison reported career anxiety, young professionals don’t appear to be compromising on their values anytime soon. In fact, they want employers whose moral code matches theirs.

In summary, employers have two sure fire ways of attracting and retaining talent: Offer work flexibility and find define the employer brand so that candidates are attracted to who you are, not just what you do.

 

Share this article on social media

Work flexibility widens the talent pool

According to president of the Federal Reserve Bank of Richmond, Virginia, hybrid work arrangements are here to stay; but adds that organisations shouldn’t forget that we had offices for a reason.

Thomas Barkin made the comments in a speech this week with the key takeaway being that companies need to reinvent the office for hybrid working and that while it will look different organizations must focus on making the most of the time workers still while working in person in order to maintain connectivity.

While remote work has positive aspects ­– employees value flexibility, it pulls more people into the workforce and it improves hiring pools – there are certain trade-offs.

“Offices evolved into the dominant model for good reasons, and companies are rightfully hesitant to lose those benefits,” Barkin said.

Efficiency and productivity rank among those benefits; however, offices provide much more, he said.

Companies need to be more “intentional” when it comes to connectivity among workers.

“Enabling more connectivity may require rethinking spending,” Barkin said. “Some companies are reconsidering their physical footprint and lowering real estate costs as a consequence. They should be thinking about redeploying some of those savings into connectivity spend, including meals and social events in the office and occasions to bring people together outside the workplace.”

He went on to say that if we are honest with ourselves, we aren’t optimizing the hybrid environment today.

“To make it meet its full potential, we need to leverage the power of technology while innovating to recreate the benefits which the office once provided.”

Take Google for instance. The company is opening its newest campus in Mountain View, California, and executives say they aim to make it a place where employees in the company’s advertising division feel more comfortable returning to the office for decades to come.

It’s also the company’s first ground-up developed campus. Google’s other campuses are pre-existing buildings that had been modified by the company, a spokesperson told CNBC.

Google’s VP of Workplace and Real Estate David Radcliffe commented: “As we started with a blank canvas, we had to ask ourselves another set of questions, and that was simply ‘what will work look like in 20 years, 30 years, 50 years, 100 years? And I’ll be honest, the conclusion we came to was ‘we have no idea.’ But what we did know was it meant we had to be extra, extra focused on flexibility. This building had to be able to transform itself over its lifetime in order to respond to the demands being put on by the business.”

 

 

Share this article on social media

Only 41% of women negotiate salaries for new roles, research reveals

Only 41% of women negotiate their starting salaries for new roles, compared to 61% of men, leaving women at a greater risk of a cost-of-living crisis. This is the finding from new research commissioned by Reed.co.uk.

The study also found that 27% of women are uncomfortable discussing their salary with employers. In comparison, only 13% of men felt the same. Yet, 90% of employees who did negotiate their most recent salary said that they were successful in receiving an increase.

The research among 250 hiring managers and 2,000 job seekers indicated that 51% of people have never negotiated wages for a new job. The ‘ask gap’ is obvious in these statistics, too, with 59% of women saying they had never negotiated salaries when offered new roles, compared to 39% of men.

When it comes down to the money, the most common salary increase in salary was between £1,000-£2,499 (42%). A further 27% received a raise of between £2,500-£4,999. Of these numbers, 42% of men were more likely to secure these pay increases than 31% of women.

The research indicates that salary negotiation is a sought-after skill. Seventy percent of workers agree that salary negotiation should be taught in school. Minority workers particularly value education on the subject, with 74% of women stating that salary negotiation should be taught in school, compared to 65% of men. Similar results were seen with:

  • 78% of LGBTQ+ vs. 70% of straight respondents
  • 83% of BAME vs. 77% of white respondents
  • 82% of disabled vs. 69% of non-disabled respondents

In support of this, 77% of employers look upon candidates positively when the candidates negotiate their salaries during the recruitment process.

When looking at age-related responses, the trends relating to salary discussions seem to be changing. Younger employees are much more open to discussing their salary, with 91% of employees aged 18-34 disclosing their earnings to someone, compared to only 26% of older workers (aged between 55-64).

Between partners, 58% of job seekers share salary details, and 44% share their salary with their families.

Simon Wingate, Managing Director of Reed.co.uk, commented: “The latest Reed.co.uk data sheds new light on how the gender ‘ask gap’ is perpetuating unequal pay. While the government has taken important strides through the pay transparency pilot, the research shows that more needs to be done to address the disparity in confidence between men and women when discussing salary.”

“By introducing salary negotiation skills into school education, future generations across society will be able to understand and implement negotiation strategies during the hiring process – and across other life experiences such as purchasing a house or car. This will enable them to secure a higher starting salary and help close existing pay gaps.”

“At a time when the cost-of-living is rising, the study also shows the value in employees pushing their future employers for a salary increase when being offered a new role and confirms that finding a new job is one of the best possible ways to secure a pay rise. Reed.co.uk has a wealth of career advice on the subject of salaries to help people get paid what they’re worth.”

Share this article on social media

61% don’t believe they have the skills to enter most sought after industries

After five years of falling outside the top three, engineering is now at the top of the list of most desirable sectors to work, overtaking IT & Communications (ITC), which held the top spot for the previous four years. Sixty percent of respondents, a 10% increase from 2021, said they were willing to work in the Engineering sector.

According to the new research from Randstad, surveying  163,000 working-age people, ITC has fallen to third place at 58%. The study also revealed that 70% of workers are open to job opportunities. Forty-eight percent are willing to quit their jobs if the work stops them from enjoying their lives. A further 34%  admitted to leaving a role because it didn’t fit within their personal life.

Second on the list of attractive sectors is the Automotive industry at 59%. In fourth place is the Agriculture sector at 57%, followed by the FMCG sector at 55%.

The study also found that different regions in the world have different views as to what the most attractive sectors are. For example, European respondents ranked the Automotive sector as number one (46%), followed by Life Sciences (44%) and Industrial (44%).

The Automotive sector was also in the top position (73%) in Latin America, followed by Industrial (68%) and FMCG (68%).

According to the study, even though workers are attracted to certain industries, 61% feel they don’t have the skills required to enter the industry. Sixty-five percent believe they lack the skills to work in the engineering industry. Some industries are even higher, such as the chemical sector, at 72%, and the construction sector at 69%.

On the other hand, 46% believe that the skills to work in the retail industry, and 43% believe they have the skills for the hospital industry. A further 42%  believed they had the required skills for the ITC sector. In addition, the research indicated that more white-collar workers (41%) feel that they have the skills to work in any sector, whereas only 34% of blue-collar workers feel this way.

The research also showed that 76% of employees agree that being offered the chance to reskill, while only 61% feel that their employers offer these opportunities.

Joanna Irwin, Randstad CMO, commented: “This year’s Randstad Employer Brand Research signals that the tides are changing in terms of which sectors are seen as the most attractive for employees. Increasingly, talent wants to work in sectors that make an impact in both the physical and digital world.

There’s still a job to do for employers in these sought-after industries to ensure that they are removing the barriers to entry for willing talent. Offering reskilling and upskilling programs can help employers stand out from the crowd and attract workers.”

No matter which sector is considered to be the most attractive, employers must offer compelling employee value propositions to ensure that they attract the best talent.

Share this article on social media

Lack of salary increases and growth opportunities identified as top issues

Two new reports published by 360Learning have indicated that the Learning and Development sector has some challenges to deal with. The reports revealed that 42% of UK L&D professionals had not received a pay rise in recent months, and a further 23% believe they do not have opportunities to develop at work.

The reports, which look at salaries, progression, and satisfaction in corporate Learning and Development (L&D) teams across the US and UK, have the following findings:

In the UK:

  • The most common annual salary range was found to be between £30-£39k a year
  • The average salary comes in at £31.6k
  • People working in voluntary sectors were likely to earn less than £39k
  • People in the private sector had the best chance of earning more than £80k
  • 25% of L&D Managers earned between £50-£59k
  • Administrators in the L&D environment earned the least at below £39k

In the US:

  • The most common salary range was $70-$100k
  • The mean salary across all roles was much higher than the UK average, at $91.2k
  • 41% of L&D Managers earned more than $100k
  • Instructional Designers and Learning Specialists in the L&D environment earned the least, at less than $70k

The gender pay gap is also clear in the results with:

  • One-third of UK women earn less than the national average (£31,285) compared to only a fifth of men
  • Half of the women in the UK earned less than £39k, compared to only 36% of men
  • Only a quarter of women said they earn more than £40k, versus 41% of men in similar roles

When looking at reasons for lack of advancement, in the UK, 6% of women report that childcare and family are stopping them from growing at work, compared to just 1% of men.

In the US, 4% of people cite personal or family reasons for preventing advancement.

The studies also looked at salary satisfaction. Interestingly, despite gender and role disparities, 53% of L&D professionals in the UK and US were satisfied with their salaries, with the satisfaction increasing per age bracket.

In the UK:

  • 56% of men and 55% of women were satisfied with their earnings
  • 58% of men and 59% of women between 25 and 45 were also happy with their incomes.
  • 42% of UK professionals haven’t had a pay rise in more than 12 months
  • Of the professionals who had not had a pay rise, 54% admitted that they’re not comfortable asking for one
  • Among the professionals who did receive pay rises, 52% were below the rate of inflation, with 45% as low as 1%-3% – half the rate of inflation

In the US:

  • 80% of professionals have had a raise in the past two years
  • 20% have had no raise at all or last had a raise three or more years ago
  • If they have had a pay rise, 38% saw a 1-3% increase
  • 10% of professionals had enjoyed a salary increase of 10% or more over the past 12 months. 41% were “comfortable” or “very comfortable” about asking for pay rises

As far as the impact of education and career experience on salary is concerned, the survey found that 74% of higher salaries across the UK went to people aged over 45; however, 73% of the over 45s surveyed had been in the L&D industry for less than a year.

It would appear that qualifications do not have much influence on compensation. Most of the UK respondents don’t have an L&D-related degree. Of the respondents who earned more than £70k a year – only 7% had degrees or higher. However, in the highest salary bracket, only 2% of people without an L&D-related degree earn more than £80,000 compared to 6% of respondents who do. Clearly,  L&D degrees can lead to higher salaries when it comes to senior roles.

In the US, where wages were higher than $70k, there were almost equal numbers of people with L&D degrees and those without, indicating that on-the-job training via mentors, upskilling, and learning management systems can be an effective route to progression.

The survey provided insights into the roles of mentors in earning potential. For example, the respondents who had a salary of more than $100k a year were more likely to have mentors than those earning lower salaries. Similarly, professionals with a 4% or higher salary increase in the previous 12 months were also likely to have had a mentor.

Generally speaking, mentorship numbers are higher in the US than in the UK. Of the US respondents, 65% of professionals agreed that they benefitted from mentoring, while only 47% in the UK said the same. These numbers could correlate with the fact that 20% of male and 21% of female L&D professionals in the UK feel that they lack opportunities to progress in their careers.

With 4% of US respondents and 22% of UK respondents saying they want to leave L&D, it is essential that L&D professionals feel empowered to effectively provide training and support to other employees.

Share this article on social media

Employers offer benefits to emerging talent

According to the National Associate of Colleges and Employers (NACE), the average hourly wage for bachelor’s-level interns from the class of 2020-2021 rose to $20.82.

“The average hourly wage for interns is the highest hourly wage that has been reported,” said Shawn VanDerziel, NACE’s executive director.

He made further comment: “Moreover, it is important to consider the context: The last two summers have been particularly challenging for employers as they grappled with managing their internship programs during a pandemic, but they wanted to remain competitive and raised wages. Our studies show that the market is hot right now for both full-time hires and interns. We expect that hourly wages for summer 2022 interns will reflect that.”

Many employers have reportedly also offered benefits to interns. Examples include planned social activities, offered by 79.0%, and paid holidays, provided by 55.1%. In addition, 23.2% offered their interns 401(k) plans.

VanDerziel said interns also receive work experience that can make them attractive to potential employers.

NACE reported nearly two-thirds of class of 2020 – 2021 interns’ time at work, 36.1%, was spent on a combination of analytical/problem-solving work and 27.3% on project management duties.

In a tight and talent scarce market, the ‘grow your own’ mentality is one that will not only support the retention of staff but will also ensure a solid talent pipeline for growing businesses.

Share this article on social media

VC-backed companies under pressure with bleak macro-economic and geo-political outlook

Swedish “buy now, pay later” company Klarna has announced its intention to lay off 10% of its global workforce in a pre-recorded video message. Klarna CEO Sebastian Siemiatkowski cited “the war in Ukraine unfold, a shift in consumer sentiment, a steep increase in inflation, a highly volatile stock market and a likely recession” as the reasons for the layoffs.

This news comes off the back of a report which emerged last week, stating that the Swedish company’s valuation fell by 30% from the $45.6 billion valuation it received last June.

Even with the decreased valuation and layoffs, Siemiatkowski reassured employees that “Klarna continues to hold a strong position in the market” and says he remains “relentlessly optimistic about Klarna’s future.

BNLP businesses boomed at the start of the pandemic, where lockdowns meant that customers had little else to do with their time but shop.

More than two years on, however, luxuries are just not in the budget of many consumers, and clearly, retailers are feeling the pinch. With ever-increasing fuel costs, utilities rising by 50%, NHI contributions increasing, food prices rocketing, and inflation expected to reach more than 10% by year-end, consumers are tightening their belts. BNLP businesses, such as Klarna, have insights into these sentiments, with their product being used by 17 million people in the UK.

Klarna is not alone in its troubles. Grocery delivery start-up, Gorillas, has also recently announced its intentions to cut 300 jobs – around half the employees at its Berlin headquarters. Gorillas are also looking at pulling out of Italy, Spain, Denmark, and Belgium. According to a TechCrunch report, the company has a large debt to suppliers, with a burn rate of $50 million to $75 million.

More venture capital-backed companies will likely announce layoffs and hiring freezes as they prepare for tough times ahead. Layoff tracker, Layoff.fyi reported that in Q2 of 2022, over 13,000 tech start-up employees had been let go.

Other casualties of the current negative macroeconomic outlook include AI start-up BeyondMinds, which recently closed its doors, and healthtech business Kry’s reduced its team by 10%.

Siemiatkowski admitted that Klarna’s decision to reduce numbers was one of the “hardest” decisions in their history but a necessary move to stay “laser-focused on what really will make us successful going forward.”

“While crucial to stay calm in stormy weather, it’s also crucial not to turn a blind eye to reality,” he added. “What we are seeing now in the world is not temporary or short-lived, and hence we need to act.”

Ken Brotherston, TALiNT Partners CEO also made comment: “The US and European tech markets are very turbulent, inflation is high and the war in Ukraine and ongoing supply chain issues in China all create a perfect economic storm. The impact on employment/hiring is less clear as there are structural shortages in many markets but it’s clear that buyers are spending less and this results in diminished demand for retail staff.”

Share this article on social media

31% of financial services and banking professionals to leave the industry due to pressure

One third (31%) of financial services and banking professionals plan to leave their industry, and a further third (31%) are planning to stay within the industry but leave their current roles, reveals a new report.

According to the study by the digital accountancy platform, LemonEdge,  33% of financial service and banking professionals believe that working from home and hybrid working has increased burnout. Fourteen percent state that burnout has risen exponentially. The study also revealed that 23% of these professionals are worried about physical and mental health.

When asked why workers are planning to leave their positions, the following reasons were cited:

  • Heavy workload (42%)
  • Manual processes (36%)
  • Long working hours (32%)
  • Tight deadlines (26%)
  • Increasing demands from management (25%)

One in six of the financial services workers who were surveyed feel like they can no longer continue or no longer desire to continue in their role within the industry.

When asked what would help overcome burnout, 33% of financial services professionals agreed that a reduced workload would reduce burnout. Time off work (27%), support from management (25%), and faster, more efficient technology (23%) were also popular solutions.

Gareth Hewitt, Co-Founder and Chief Executive Officer at LemonEdge, comments: “An exodus of industry professionals is a sure sign that levels of burnout have reached an unacceptable scale. Any experience of  burnout is serious and with thousands of employees planning to leave the industry as a direct result of high pressure, it should be a clear warning to firms before they risk losing valuable talent.

“The risk of burnout to employers is huge, and there are simple measures firms can introduce to reduce the risk of burnout, making the lives of their employees’ much simpler, easier, and with less stress. Firms need to be aware of the impact absenteeism and presenteeism will have on both their employees and business productivity. Just because you’re working from home, or in a hybrid model, doesn’t mean you can’t enjoy time off. With one in four (23%) asking for faster or improved technology to eliminate manual processes, firms need to look at their approaches to improve the lives of their staff. In this day and age, technology, not only can but should, provide the automation and flexibility that can contribute to reduced stress, reduced working hours, and lower risk of burnout. At LemonEdge we are passionate about providing the tools and technology that enable financial services professionals to get home on time.”

Share this article on social media

UK vacancies up 48% year-on-year

The locations with the highest rates of jobseekers have been revealed in a new study. London, Manchester, Birmingham, and towns on London’s commuter belt topped the list. The study results indicate that as offices reopen and daily commuting re-commence, workers are searching for roles closer to home.

The research by job search engine Adzuna also revealed that every advertised London-based job ad received an average of 65 views during April – indicative of high job churn in the capital city and centre of the Great Resignation in the UK.

Second on the list of jobseeker activity was Manchester, with over nine views for every job listing. Birmingham was third at over seven views per ad.

Edinburgh, Scotland, and Cardiff, Wales, also featured on this list, with view rates of 2.5 and 1.83, respectively. Northern Ireland, however, didn’t feature on the list – possibly showing that the Great Resignation has not reached them yet.

Further findings for April 2022 included:

  • Advertised vacancies in the UK were up 48% year-on-year, to 1,298,581.
  • Over half a million vacancies were on offer across London and surrounding areas.
  • The average advertised salary in London and surrounding commutable areas was £45,515.
  • The average advertised UK salary was £36,587 in April. This is 3% lower than 12 months ago (£37,898).
  • The number of advertised vacancies has exceeded the number of job seekers for the first time.

The study also revealed a growing interest in jobs within commuter towns. Slough and Heathrow experienced the fourth-highest jobseeker activity level. While traditionally, workers in these locations would have commuted into London, they are now looking for jobs closer to home. Job ads, on average, received over four views per posting in these areas.

There was also high jobseeker demand in other commuter towns around London:

  • Chelmsford (2.47)
  • Reading (2.45)
  • Guildford and Aldershot (2.07)
  • Luton (1.88)
  • Crawley (1.87)

The commuter belt towns accounted for a fifth of the list of top 30 UK towns and cities with the highest jobseeker activity.

Looking across the UK, England had the highest activity from jobseekers, with an average of 3.6 views per job ad. Rates were much lower across the rest of the UK with Scotland at 0.26, Wales at 0.11 and Northern Ireland at only 0.03.

Paul Lewis, Chief Customer Officer at Adzuna, comments: “London is at the core of the Great Resignation in the UK, but our data reveals the trend is spreading out fast. In particular, jobs in commuter towns are seeing high interest levels driven by a renewed interest from Brits to spend more time at home. As offices have reopened and commutes have restarted, workers are looking for close to home options that will continue to give them the flexibility they got used to over the pandemic and various lockdowns, be that picking the kids up from school, or simply working flexible hours. The return-to-office is a huge driver of the current high movement between jobs, and companies offering fully remote options, or even much publicised ‘work from anywhere’ policies, are stealing a march on the competition and coming out on top.”

Share this article on social media

Despite efforts there is still massive room for improvement in UK management and reporting

In research released today, findings reveal a lack of focus on progressing diversity in the workplace. In the study conducted by SD Worx, it was found that while 68% of UK companies are committed to removing unconscious bias in the recruitment process, many have failed to implement a reporting system to track progress on meeting ED&I objectives.

The survey revealed that only 26% of UK companies evaluate managerial commitment to achieving ED&I-related objectives. A further 32% admitted having no systems allowing employees to report discrimination.

The UK ranked third in its commitment to removing unconscious bias at 68% when it comes to ranking. Ireland ranked first at 74%, with Belgium coming in second, at 69%.

As far as rankings for equal access to training, the UK is slightly lower than other countries, with 64% of companies investing in equal access to training and development. Ireland (72%), Belgium (71%), and Poland (69%) topped the list.

While 64% of UK companies include transparency about ED&I goals and actions to attract a diverse workforce in their mission statement and corporate values, only 60% of the UK companies surveyed said that they promote ED&I in job advertisements, social media, and their websites.

The survey also revealed that countries vary in their level of focus concerning educating and involving managers in their ED&I policies. For example, in the UK, 60% of companies stated that they actively involve their managers in ED&I policies, and 60% provide internal training on the topic.

Colette Philp, UK HR Country Lead at SD Worx commented: “It’s no longer enough for businesses to say they prioritise diversity and inclusion. Instead, they must prove their commitment to achieving a more diverse workforce, both internally within their business and externally to attract talent.”

“There is more awareness than ever before regarding diversity in the workplace and it’s a deciding factor for many when it comes to searching for a role or staying with a business. A diverse workforce brings new experiences and perspectives and an inclusive environment allows individuals to thrive. If businesses aren’t already putting ED&I as a top priority, it’s essential they act now to do so.”

Jurgen Dejonghe, Portfolio Manager SD Worx Insights, added: “It’s important that companies start investing in an active reporting system about their actions concerning diversity, equality and inclusion. On the one hand, that data offers a strong basis for optimising the diversity policy with concrete and consciously controlled actions. On the other hand, such a system also provides clear evidence whether companies are effectively putting their money where their mouth is and not making false promises to (future) employees.”

For ED&I initiatives to be successful, change needs to come from the top, with proper rollouts and reporting system to track their progress.

Share this article on social media