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Latest in the Region: Americas

62% of companies sending workers to Canada, Mexico and the UK

A survey conducted by immigration services firm Envoy Global Inc. has found that 93% of employers expect to relocate foreign workers this year due to immigration restrictions and labor demands. Offshoring or nearshoring talent is being used by smaller companies and multinational corporations alike to retain key talent. Canada is the top destination for relocating foreign workers, with 62% of responding companies sending workers there, followed by Mexico and the United Kingdom (48%) and Germany (31%).

The move is often a result of difficulties in securing a work visa, with over 80% of employers losing a foreign employee in the past year due to an inability to secure an H-1B or other employment-based visa. Demand for foreign workers with skills in science, technology, mathematics, and engineering has continued to grow across the economy, far outstripping that annual cap. The rise of hybrid and remote work has also driven the increase in offshoring plans.

Nearshoring to Canada has become a top fallback option for employers when an early-career worker has run out of immigration options after multiple attempts at the H-1B visa lottery. Canada is attractive because of its close proximity and similar time zones, as well as offering a more worker-friendly immigration system, including immediate work permits for spouses and a quicker pathway to permanent residency.

Davis Bae, Co-Chair of the immigration practice group at Fisher & Phillips LLP, said that although there hasn’t been a massive shift toward relocating workers abroad, companies that do so are finding it easier. Smaller companies without operations abroad have been turning to professional employer organizations (PEOs) for human resource and compliance services when they face losing a skilled foreign worker. Under this arrangement, paying to relocate a worker to Toronto or Vancouver costs a fraction of what it would cost to replace them with a new employee.

Marc Pavlopoulos, the Founder and CEO of PEO Syndesus Canada Inc., said: “The company employs about 200 workers for US companies in Canada, roughly 90% of whom relocated after losing out on the H-1B lottery. The Canadian Dream is a good one. You get to keep your cool job and you’re on your way to getting a Canadian passport.”

Pavlopoulos works with smaller US-based tech companies that are seeking to grow, while also working towards a Canadian goal of adding 500,000 immigrants per year by 2025.

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US hiring remains strong despite talent shortages

According to the Q2 ManpowerGroup Employment Outlook Survey, the global demand for talent remains strong despite cooling in some regions. The survey, which polled over 38,000 employers in 41 countries and territories, found that the Net Employment Outlook stands at +30% in the U.S., up 1% from last quarter but down 5% from last year. North America has the highest hiring expectations among all world regions, with the IT industry showing the most optimistic outlook (+34%), followed by Communication Services (+30%) and Financials & Real Estate (+29%).

The survey also found that the global talent shortage continues to grow, with 78% of employers in IT reporting challenges hiring. However, the survey suggests that workers who have been laid off in recent reductions will soon be reabsorbed into the market.

Despite the robust hiring outlook, employers remain cautious due to “Pandemic Paranoia,” with many holding onto and hiring business-critical talent. The concentration of demand in real-time data is reflected in the survey, with IT leading the way in hiring plans despite layoffs dominating the headlines. Workers with in-demand tech and soft skills will find themselves in high demand, and the need to reskill for tomorrow’s jobs remains urgent as talent shortages grow.

In North America, employers in the U.S. (+30%) report a moderate increase (+1) in their outlooks compared to last quarter. However, employers in Canada (-6%) report a decrease, while outlooks in Puerto Rico remain unchanged (+26%). Both the U.S. and Canada expect weaker hiring compared to intentions year-over-year, with the U.S. down 5% and Canada down 10%.

Becky Frankiewicz, ManpowerGroup, North America, President and Chief Commercial Officer commented: “This labor market continues to defy signs of economic gravity with another robust hiring Outlook for the quarter ahead. Employers are still impacted by Pandemic Paranoia – they remember how long it took to bring workers back and are holding onto and hiring business critical talent. We’re still seeing concentration of demand in our real-time data, and this survey reflects concentration too, with IT leading the way in hiring plans despite layoffs dominating the headlines. Workers with in-demand tech and soft skills will find themselves in high demand and the need to re-skill today for tomorrow’s jobs remains urgent as talent shortages grow.”

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52% of all employment is done by key workers

A new report by the International Labour Organization (ILO) has called for countries to improve the working conditions and earnings of key workers who were essential during the COVID-19 crisis. The report, World Employment and Social Outlook 2023: The value of essential work, highlights the extent to which economies and societies depend on key workers, yet they are undervalued.

Key workers can be found in eight main occupational groups and in the 90 countries where data was available, 52% of all employment is done by key workers. However, on average, key workers earn 26% less than other employees, with 29% of them being low paid. The report recommends greater investment in physical infrastructure, productive capacity, and human resources of key sectors, among other recommendations, to ensure the continuity of essential services during future pandemics or other shocks.

Gilbert F. Houngbo, ILO Director-General commented: “Healthcare workers, supermarket cashiers, delivery workers, postal workers, seafarers, cleaners, and others supplying food and necessities continued to perform their jobs, day in and day out, even at the height of the pandemic, often at great personal risk. Valuing key workers means ensuring that they receive adequate pay and work in good conditions. Decent work is an objective for all workers but it is particularly critical for key workers, who provide vital necessities and services both in good times and bad.”

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Ruling opens the door for gig drivers as drivers considered independent contractors

The California Court of Appeals ruled Monday that companies such as Uber, DoorDash and Lyft can classify their rideshare and delivery drivers as independent contractors under Proposition 22.

Theresa Rutherford, executive board member of SEIU California and President of SEIU 1021 commented: “The Appeals Court upheld the fundamental policy behind the measure — to protect the independent contractor status of app-based drivers in California while providing drivers with new benefits,” said a statement by the Protect App-Based Drivers and Services coalition.

“The right to join together in a union is the most powerful way for workers to challenge gig corporations’ exploitative business model that profits off of paying low wages and silencing its workers,”

“Today’s ruling opens the door to the possibility for gig drivers and delivery workers to transform their industry through a strong voice on the job,” Rutherford said. “However, the fact that these workers are still being denied the basic protections most workers have in California is a travesty.”

Proposition 22 came about after the California Legislature passed AB 5, which aimed to make it more difficult to classify workers as independent contractors.

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Texas Lt. Gov. Dan Patrick named “banning discriminatory ‘DEI’ policies in higher education” a top priority

In a series of memos sent by Chief of Staff Gardner Pate in February, Texas Governor Greg Abbott’s administration announced its intention to ban “diversity, equity and inclusion” initiatives in state agencies and public universities. In response, the University of Houston (UH) announced that it would not use DEI statements or factors in its hiring or promotion practices in order to comply with state and federal laws.

UH Chancellor Renu Khator stated in a March 3 email to HR Dive: “We have no offices, departments or programs promoting discrimination in the guise of diversity, equity and inclusion.” Shawn Lindsey, Associate Vice Chancellor and Associate VP of Media Relations, emphasized that the memo was a reminder of UH policy and that using DEI statements has become a disfavored practice.

Similarly, Texas A&M University (TAMU) announced that it would revoke its diverse hiring practices.

Chancellor John Sharp issued a statement on March 2, saying: “No university or agency in the A&M System will admit any student, nor hire any employee based on any factor other than merit.” Sharp then ordered all A&M System institutions to review their employment and admission practices to ensure compliance with Abbott’s Feb. 6 memo.

University of Texas System Board of Regents Chair Kevin Eltife confirmed at a Feb. 22 board meeting that the system would also be recanting its DEI commitments in compliance with the state. “Certain DEI efforts have strayed from the original intent to now imposing requirements and actions that, rightfully so, raised the concerns of our policymakers,” Eltife said.

Texas Lt. Gov. Dan Patrick named “banning discriminatory ‘DEI’ policies in higher education” one of his top 30 priorities for 2023. This comes alongside his priorities of banning children’s exposure to drag shows and critical race theory in higher education.

The double layer of compliance regarding DEI bans is worth noting. Patrick’s other priority is removing judges and district attorneys who refuse to follow Texas law.

It is clear that Texas public institutions are coming down hard on DEI initiatives, in compliance with state and federal laws. Employers in Texas should take note of these changes and ensure compliance with these new mandates.

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The move is part of the company’s “Year of Efficiency” management theme 

 Meta, the parent company of Facebook and Instagram, has announced that it will be conducting another round of layoffs as early as this week, with the aim of cutting thousands of employees, this according to various US news agencies.  

The move is part of the company’s “Year of Efficiency” management theme for 2023, according to a statement by Meta CEO Mark Zuckerberg during the company’s fourth-quarter earnings report on February 1. 

The technology firm has already been giving buyout packages to managers and cutting “nonessential” teams, with the largest round of layoffs to date occurring in November 2022 when 13% of the workforce, more than 11,000 employees, were cut. In addition, the company has reduced discretionary spending and extended its hiring freeze through the first quarter of 2023. 

The new round of layoffs was expected after Meta reportedly issued “subpar ratings” to thousands of employees in their recent performance reviews, with approximately 10% of workers receiving ratings indicating that they were underperforming. Furthermore, the social media giant cut a bonus metric to 85% of its target. 

“We’ve always had a goal-based culture of high performance, and our review process is intended to incentivize long-term thinking and high-quality work, while helping employees get actionable feedback,” said a Meta spokesperson in response to the performance review ratings. 

“In this new environment, we need to become more capital efficient,” Zuckerberg said in a letter to employees in November. “We’ve cut costs across our business, including scaling back budgets, reducing perks, and shrinking our real estate footprint. We’re restructuring teams to increase our efficiency. But these measures alone won’t bring our expenses in line with our revenue growth, so I’ve also made the hard decision to let people go.” 

Meta gave many of its employees a month to apply for different positions within the company in September, with re-organizing departments expected to be merely the first step toward larger staff reductions. In July, engineering managers at Meta were tasked with identifying anyone on their team who “needs support” and reporting them in an internal HR system. 

Maher Saba, the company’s Head of Engineering commented: “If a direct report is coasting or is a low performer, they are not who we need; they are failing this company. As a manager, you cannot allow someone to be net neutral or negative for Meta.” 

Meta’s upcoming round of layoffs will continue its efforts to become a more efficient organization and achieve its long-term goals. 

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Labor market remains historically tight

According to Reserve Bank of Richmond President Tom Barkin, inflation will fall back in line over time, but the process won’t be quick, he said in a speech Friday at the 2023 Stanford Institute for Economic Policy Research Annual Economic Summit at Stanford University.

Barkin said: “Monetary policy plays an important role here. We have raised rates and reduced our balance sheet aggressively in the last year in an effort to bring demand and supply back into balance. Inflation is likely past peak. But I think it will take time to return to target, and as a consequence, believe we still have work to do.”

Additional rate increases have been forecast and the [Summary of Economic Predictions] has made clear it doesn’t anticipate rate cuts this year.

Returning prices to the stability of the last 30 years will likely take a lot more time and effort, and the Summary of Economic Projections shows inflation not returning to 2% until 2025. Barkin said he sees the fight against inflation lasting longer for several reasons “partly because some of the dislocations we saw in the pandemic are enduring. Over a trillion in excess savings are still funding consumption, as are continuing fiscal outlays like the infrastructure bill. New auto inventories and houses for sale remain near historic lows, supporting prices in those sectors. Supply chain challenges remain, for example, in switchgears and cabinets.”

China’s reopening and the war in Ukraine is also putting pressure on commodity prices.

In addition, Barkin noted the labor market remains historically tight and workers, whose real wages fell, are pressing to catch up.

Barkin continued: “The Fed’s objective isn’t to hurt the economy, it’s to reduce inflation. And if there is one thing we’ve relearned over the last two years, it is that everybody hates inflation. High inflation creates uncertainty. As prices rise unevenly, it becomes unclear when to spend, when to save or where to invest. Inflation is exhausting. It takes effort to shop around for better prices or to handle complaints from unhappy customers. And inflation feels unfair — the wage increase you earned feels arbitrarily taken away at the gas pump.”

But the experience from the inflation fight in the 1970s must not be repeated, Barkin said.

“If you back off on inflation too soon, it comes back stronger, requiring the Fed to do even more, with even more damage.”

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77% of staffing firms have implemented a digital transformation strategy

According to Bullhorn’s Global Recruitment Insights and Data (GRID) 2023 Industry Trends Report, firms with the highest revenue gains were twice as likely to have digitized their data as those with the greatest revenue losses and nearly twice as likely to use automation heavily. While 77% of staffing firms have begun implementing a digital transformation strategy, many are still in the early stages. Only 30% said they use self-service technologies such as chatbots to streamline operations and engage candidates, and only 17% heavily leverage automation throughout their business.

More than two-thirds (68%) of global recruitment firms reported an increase in revenue last year, and a similar number (67%) expect to improve performance again in 2023.

Winning new business becomes the top priority

For the first time in six years, staffing firms cite winning new clients (40%) as this year’s top priority, most likely due to continued economic uncertainty and intensifying competition. The second biggest priority is digital transformation (34%), followed closely by candidate acquisition (33%).

Despite feeling optimistic about their business growth prospects, global recruitment firms continue to face client-related challenges. The most pressing is an increase in job requisitions that are too specialized or demanding (according to 22% of respondents), followed by a reduction in overall job requisitions (17%), and a lack of communication from clients (15%).

Engaging existing talent leads to higher revenue gains

Candidate acquisition remains a challenge: 56% cite the talent shortage as a top challenge in 2023, an increase from last year. However, firms that followed certain best practices in engaging candidates were 30% or more likely to report revenue gains in 2022. These best practices include engaging with passive candidates in the firm’s database, soliciting referrals from candidates, and using candidates’ preferred methods of communication, among others.

The two practices most correlated with success were redeploying candidates and database utilization. The firms that lined up the highest proportion of workers for new roles before the end of their assignments and those that most frequently filled a position with a candidate already in their database were twice as likely to report revenue gains last year and 50% more likely to expect gains in 2023. However, fewer than 10% of firms use automation to redeploy candidates.

Gretchen Keefner, SVP, Global Enterprise Business at Bullhorn, comments:  “This year’s survey highlights a clear relationship between business performance and technology adoption. This makes a compelling case for firms to invest more in digital transformation to future-proof their businesses, despite economic challenges and uncertainty in the jobs market.”

“Acquiring new clients has once again become the top priority for recruitment firms, and it’s still crucial for firms to focus on delivering a more modern, personalized, and connected candidate experience because the talent market remains tight. Firms that use technology to increase their efficiency and provide a streamlined experience will set themselves apart from the competition.”

Read the full report here.

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Compensation top of mind despite recession concerns

According to a survey by iHire, 77.9% of US employers gave pay raises in the past six months, despite economic downturn concerns. The pay raises were given due to merit, performance, pay compression or the rising cost of living.

Lisa Shuster, Chief People Officer at iHire commented: “Compensation is top of mind for employers and their workforces. Now is the time for organizations to ensure they are compensating employees fairly while avoiding pay compression. The good news is that most employers do not appear overly worried about a recession and continue to invest in their most valuable business asset: their people.”

Of the 436 employers surveyed, just 22.1% had not given raises recently. Of that 22.1% that did not give a raise, 69.6% said they couldn’t afford to give raises, and 32.6% said they were preparing for an economic downturn or tightening their 2023 budgets. In addition, 13.0% reported poor or stagnant employee performance, and 13.0% were unsure how to determine fair compensation.

iHire also surveyed 305 workers and found that 23.9% of respondents had asked for a raise in the past six months, and 60.3% got a raise upon asking, according to the report. Of the 76.1% of workers who had not asked for a raise, 50.0% already received a raise recently and 25.6% did not know how to negotiate their salary. In addition, 23.2% were afraid to ask or approach their supervisor for a raise and 11.0% did not think their performance was deserving of a raise.

For the report, iHire surveyed 436 employers and 305 workers in 57 industries across the US in February.

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Rapid diversified growth in STEM-related industries will be their focus

Airswift, the global workforce solutions provider, announced on 2 March 2023 that they have appointed Anna Frazzetto as Chief Revenue Officer. This appointment aligns with Airswift’s drive to continue its diversification and growth across STEM-related industries.

Frazzetto is an established technology recruitment executive based in New York. She most recently held the roles of Chief Digital Technology Officer at Tential and Harvey Nash.

The company believes that Frazzetto’s deep domain experience in addressing critical business challenges and expanding digital capabilities will allow Airswift to maximize revenue growth opportunities.

Frazzetto has been listed as Staffing Industry Analysts (SIA) Global Power 150 Women in Staffing for five years and has a recognised consultative approach that will generate powerful, tailored solutions for Airswift’s diversified clients and internal teams.

Janette Marx, CEO at Airswift, commented: “Technology is fundamentally changing every aspect of our lives – and the world of work is no different. Anna’s understanding of how to harness the power of technology and match that with the right skills will be critical as we continue to expand into STEM industries. As a fellow passionate advocate for advancing women in STEM, her addition to the team will not only drive diversified revenue growth, it will also increase the opportunity to enhance equity in the space.”

Anna Frazzetto, CRO at Airswift, added: “Workforce demand in STEM industries has never been higher across the world. Energy and technology sectors in particular need on the ground support to ensure the right people are recruited to propel these industries forward. I’m delighted to join the passionate team here at Airswift, who will support me in delivering the global growth strategy of the business. I’m looking forward to enhancing and diversifying our offering across STEM industries – ensuring we deliver the best tailored and scalable workforce solutions to our customers.

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Talent Solutions

TALiNT Partners and Stratigens are proud to announce a strategic partnership which will provide an unparalleled range of talent intelligence solutions to the needs of our members, partners and clients.

Alison Ettridge, CEO of Stratigens said “Companies do research on their customers, their markets and their competitors to inform decisions all the time. With Stratigens, they can now do research on the greatest asset –access to the workforce and people they need to deliver their strategy. Our partnership with TALiNT Partners will support our mission of putting human capital at the heart of business decision making. We are really excited about working with the team to overlay the insight that TALiNT Partners’ network brings with labour market data to empower HR, TA and business leaders to make critical strategic decisions.”

Ken Brotherston, CEO of TALiNT Partners added “for some time we have been looking for a partner to support the insight generated by our network with global workplace data to bring a unique offering to the market. Stratigens is the perfect partner to help us achieve this and together we look forward to continuing to help raise capability in how employers find and keep the people they need, and how staffing and talent solutions providers can better support their clients.”

About Stratigens

Stratigens software is helping the world’s best companies make smarter decisions about where to grow, who to hire from and the diversity of their workforce. We join the dots between the labour market, economics and locations. Putting human capital intelligence at the heart of decision making.

We live in a world rich with skills and geo economic data, but the data is messy, unstructured, big and in thousands of places. Stratigens uses the latest in machine learning and big data to gather, extract, categorise and label the data, and put it into a format that’s easy to digest. So our clients can make smarter, faster, more informed decisions.

Stratigens – https://www.stratigens.com

About TALiNT Partners

TALiNT Partners connects the talent ecosystem. We bring together a global network of leading employers and solution providers to make better talent and technology decisions. Providing intelligence, insight and peer-to-peer networking that drives quality, innovation and improves inclusion across the talent ecosystem

TALiNT Partners – https://talintpartners.com/

 

If you would like to know more about the partnership, please contact Ken Brotherston, CEO of TALiNT Partners, ken@talintpartners.com

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Acquisition strengthens Nash Squared as a major MSP

Nash Squared, a provider of talent and technology solutions, has become a major force in Managed Service Provision with its recent acquisition of Het Flexhuis – a Managed Service Provider (MSP) of talent and recruitment services based in The Netherlands.

Het Flexhuis has a strong track record in delivering outsourced recruitment services for government, public services, and commercial organisations and will operate as an independent brand within Nash Squared’s recruitment business Harvey Nash.

Bev White, CEO of Nash Squared, commented: “I am delighted to welcome Het Flexhuis into the Nash Squared family. It is our vision to help our clients access talent and technology in every way possible, and offering a high quality MSP solution is an important next step for us. Het Flexhuis brings enormous experience and expertise with them, and I am excited by the potential.”

Occo Lijding, MD of Harvey Nash The Netherlands, commented: “This represents a step change in how we can help and support our clients in talent and technology. I have long admired the team at Het Flexhuis, and when we met I was struck by how similar our values and ambitions were. They are the perfect fit for us, and I look forward to working with them.”

Frederieke Schmidt Crans, Managing Director, Het Flexhuis commented: “We are thrilled and excited to become part of Nash Squared. Our company was established ten years ago with a mission to create a world-class MSP with great people and processes at its core. We see joining Nash Squared as the natural next chapter in that success story.”

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Search engines combine forces to accelerate Adzuna’s growth in the US

On Tuesday, 14 June, Adzuna announced their acquisition of the US job search engine Getwork.

The Getwork team, under the leadership of Brad Squibb, will be working alongside the Adzuna team, intending to accelerate Adzuna’s growth in North America.

Getwork links job seekers with vacant roles at North American companies by indexing millions of verified jobs daily directly from tens of thousands of employer career sites.

Adzuna, with headquarters in London, UK, Indianapolis, IN, and Sydney, AU, uses AI-powered technology to match people to jobs. The company has recently launched in Switzerland, Belgium, Spain, and Mexico. Their operations now cover 20 markets globally.

The two companies will operate as independent brands with their own established communities.

Doug Monro, CEO, and Co-founder of Adzuna, comments: “Adzuna acquiring Getwork will help us supercharge our growth in North America. The Getwork team’s stellar reputation for great service and delivery has led them to be trusted by an impressive roster of household name companies in the US. It’s also a great fit as their team and mission are so aligned with ours. The US enterprise market is crying out for strong alternatives to existing offerings and we’re looking forward to combining Adzuna’s marketing expertise, global footprint and programmatic job matching technology with Getwork’s deep industry knowledge and reputation to deliver even better for our customers. The US is the fastest-growing part of our business and this acquisition will accelerate our profitable growth trajectory.”

Brad Squibb, President of Getwork, comments: “Adzuna is a truly global business, operating across 20 countries, which creates an exciting opportunity for us to scale into new markets with the help of a brand that has already paved the way for international expansion. We can’t wait to join Doug and the team on this journey.”

 

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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.

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