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Revenue decline seen in US commercial staffing

Revenue rose 1.9% year-on-year in Q1 2022, according to a regulatory filing from Staffing 360 Solutions Inc., a New York-based staffing firm with operations in the US and UK.

The company reported that revenue rose approximately $1.4 million on an organic basis in the first quarter, but growth was affected by an unfavourable currency translation of USD $478,000.

Growth was seen in the company’s US and UK professional staffing segments, but a revenue decline was noted in US commercial staffing – the company’s largest segment.

To continue trading on the Nasdaq stock exchange, Staffing 360 held a reverse stock split on 24 June. In April, they acquired US-based staffing firm Headway Workforce Solutions.

FT.com reported that shares in Staffing 360 closed down 1.40% on Monday to USD 3.51, a new 52-week low. The company had a market cap of USD 8.6 million.

 

 

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Workers taking on second jobs to pay for essentials

Even though a tight labour market has pushed wages up across the board, the increase has not kept pace with inflation. A recent article on MSN has reported that this is forcing workers to increase their hours and look for second jobs to pay for essentials such as gas, food, and rent.

According to a report from the St. Louis Federal Reserve, it was revealed that the percentage of people working multiple jobs in the US has increased from 4% to 4.8% since March 2020.

Usually, taking on multiple jobs signals a healthy job market with plenty of job opportunities available, but the report suggested that it also signals increasing financial strain on Americans’ pocketbooks.

Ken Brotherston, CEO at TALiNT Partners commented: “This is the real gig economy. The vast majority of second jobs are not ‘cool side hustles’ they are the difference between being able to pay you rent or not and are another signal that employment for many people is precarious.” 

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Inflation is being considered or accounted for in annual pay raises

According to a report by the Society for Human Resource Management, HR professionals are worried about inflation along with their employees. The report found that 73% of HR professionals are worried about the impact of inflation on workers.

Johnny Taylor Jr., President and CEO of SHRM commented: “Employers recognize that inflation has a major impact on the well-being of their team. In fact, SHRM research found that 87% of those worried about inflation said their highest concern was the effect on the lives of their employees.”

Of HR professionals aware of their organizations’ plans for annual pay raises, 63% said inflation is being considered or accounted for in annual pay raises.

HR professionals at smaller firms with less than 100 employees were most concerned about inflation, with 81% citing concerns.

The percentage was 74% at midsize firms with 100 to 499 employees and 67% at large firms with 500 or more employees.

Industries where HR pros were most concerned about inflation were agriculture, 97%; wholesale trade, 95%; utilities and energy, 82%; and manufacturing, 82%.

SHRM’s research included a survey of 1,150 HR professionals and took place from May 10 to May 24.

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Unemployment rate hits record low

According to Statistics Canada, employment in Canada fell by 43,200 jobs in June from the previous month, the first decline since January and fully offsetting the increase of 39,800 recorded in May. This marks the first employment decline not associated with a tightening of public health restrictions since the beginning of the pandemic.

The agency indicated the employment loss in June from May was almost entirely due to a decrease of 51,000 jobs among workers aged 55 and older; there was little change in total job numbers among youth aged 15 to 24 and the core-age population aged 25 to 54.

The numbers came as a surprise to economists, who had been expecting the economy to add about 20,000 jobs during the month, CBC reported.

Positively however, Canada’s unemployment rate fell 0.2 percentage points in June to a new record low of 4.9% — the lowest rate since comparable data became available in 1976 — as fewer people looked for work. Total employment in Canada was 19.6 million in June.

June’s employment decline was driven by losses in part-time jobs, which fell by 39,100. Full-time employment fell by 4,000. Self-employment declined, while the number of employees in both the public and the private sectors held steady.

Jobs fell by 76,000 in the services-producing sector with losses spread across several industries, including retail trade. However, the goods-producing sector saw an increase of 33,000 jobs in June, with gains in construction and manufacturing.

Average hourly wages for employees increased 5.2%, or C$1.54, on a year-over-year basis in June to $31.24, compared with a year-over-year increase of 3.9%, C$1.18, in May.

By province, employment decreased in Newfoundland and Labrador and Quebec, while there were gains in Prince Edward Island and Manitoba.

Looking at just Ontario, the number of jobs fell by 24,700 to a total of more than 7.7 million. The province gained 27,900 full-time jobs but lost 52,500 part-time jobs. Ontario’s unemployment rate fell to 5.1% in June from 5.5% in May.

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Inflation top reason for diminished confidence

According to the National Federation of Independent Business’s (NFIB) report, Small Business Optimism Index fell in June to its lowest level in nearly a decade, reflecting poor expectations for the remainder of the year.

The organization’s optimism index dropped to a level of 89.5 in June, down 3.6 points from May. This is the sixth consecutive month when the index has fallen below the 48-year average of 98.

It was also reported that small business owners who were expecting better business conditions over the next six months fell seven points to a net negative 61%, the lowest level recorded in the 48-year survey.

According to according to the NFIB, inflation continues to be a top concern for small businesses, with 34% of owners citing it as their most important issue in operating their business, the highest level since quarter four in 1980.

Other key findings include of the Small Business Optimism Index:

  • The net percent of owners who expect real sales to be higher decreased by 13 points from May to a net negative, 28%
  • 50% of owners reported vacant job openings, down one point from May but historically high
  • The net percent of owners raising average selling prices decreased three points to 69%, following May’s record high reading
  • Separately, NFIB’s monthly jobs report revealed owners’ optimism to fill open positions, with 19% planning to create new jobs in the next three months
  • The NFIB survey was conducted in June and includes data from randomly drawn respondents through its membership.

NFIB Chief Economist Bill Dunkelberg commented: “As inflation continues to dominate business decisions, small business owners’ expectations for better business conditions have reached a new low. On top of the immediate challenges facing small business owners including inflation and worker shortages, the outlook for economic policy is not encouraging either as policy talks have shifted to tax increases and more regulations.”

 

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LinkedIn’s vision is to create a skills-first approach to hiring and learning

LinkedIn announced that it acquired EduBrite, a Fremont, California-based SaaS learning platform focused on creating, hosting and deploying professional certificates.

Several members of the EduBrite team, including CEO Ajay Upadhyaya and co-founder Manish Gupta, will join LinkedIn when the transaction closes.

According to LinkedIn, the acquisition will enable it to integrate EduBrite’s certification assessment engine into its learning platform, making it simpler for the company to test and verify the skills people claim to possess.

The deal aims to help LinkedIn further deliver on its vision to create a skills-first approach to hiring and learning.

EduBrite was founded in 2009.

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No clarity on whether US economy will return to pre-pandemic levels 

According to CNN, Federal Reserve Chairman Jerome Powel has cautioned that it’s not clear the US economy will ever return to its pre-COVID-19 status.

The US Bureau of Economic Analysis revised downward its estimate of growth in US real gross domestic product for the first quarter. It now says GDP contracted at an annual rate of 1.6% in the first quarter, down from its previous estimate of a 1.5% contraction.

Today’s estimate is the third estimate for GDP growth.

GDP had increased at an annual rate of 6.9% in the fourth quarter of last year.

Jerome Powel commented: “The economy is being driven by very different forces,” Powell said. “What we don’t know is whether we’ll be going back to something that looks like, or a little bit like, what we had before.”

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Employers will need to follow local, state and federal laws and regulations regarding abortion

Emily Dickens, Chief of Staff and Head of Government Affairs at Society for Human Resource Management (SHRM) has stated that the US Supreme Court’s decision overturning Roe v. Wade will have an effect on the world of work. The organization said it will also provide up-to-date resources for employers without weighing in on whether abortion is right or wrong.

Dickens said employers will need to follow local, state and federal laws and regulations regarding abortion. However, she noted self-insured companies are subject to the federal Employee Retirement Income Security Act rather than state law, and that will provide broader flexibility in structuring health benefits.

She continued: “Some companies are announcing preemptive action to ensure workers have access to abortion services by increasing travel benefits to cover healthcare procedures. For example, new SHRM research shows that nearly a quarter of organizations agree that offering a health savings account to cover travel for reproductive care in another state will enhance their ability to compete for talent. But how these policies interact with state laws is unclear, and employers should be aware of the legal risks involved.”

SHRM also reported key findings from its research related to the topic:

  • 35% of organizations would not be more likely to provide travel expense benefits outside of a health savings account for employees to access reproductive services if it was tax deductible.
  • Knowing that employees can use HSA funds for travel-related expenses to receive reproductive care in another state, 87% of organizations still would not make any changes to the contributions they make to employees’ HSAs.
  • Paid time off was named the top resource currently provided to employees to better support reproductive care, cited by 32% of firms.
  • 29% of organizations said they would increase support within an employee assistance program for reproductive care in a post-Roe and Casey world.
  • 14% of organizations said they would include the topic of reproductive rights in their diversity, equity and inclusion programs.
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Over 36 graduates vie for every job in the UK this summer

Despite economic upheaval all over the country, there is good news for the Class of 2022 as job opportunities and pay rates for graduates soar, so says new research from job search engine Adzuna.

According to the research, 14,690 graduate job vacancies were advertised across the UK in May 2022, compared to 9,265 this time last year (+59%). This is due to employers relying on new graduates to plug gaps in their workforces.

For grads concerned about the current cost of living crisis, many employers have been increasing their pay rates on offer, with advertised salaries for graduates climbing to £26,076 in May 2022. This number is up 7% year-on-year from £24,389 and marks a six-year high in advertised salaries for graduates. In the most competitive sectors, pay rates have soared to new heights, with salaries of up to £70,000 advertised.

Even though there is a massive increase in job vacancies, the competition for grad jobs is fierce, with more than 36 graduates vying for each available job opportunity.

The research showed, however, that European law and banking firms are struggling to match their American counterparts in terms of salary offerings:

US legal firm Davis Polk & Wardwell increased salaries for newly qualified solicitors (NQs) by 8.5%, from £147,500 to £160,000, while its graduates earn £60,000. In comparison, Magic Circle firm Freshfields Bruckhaus Deringer is offering grads £50,000 in their first year, with NQs earning £125,000. Similarly, in the banking sector, Barclays is offering their grads £50k, RBS £31,850, compared to JP Morgan offering up to £70,000.

The research also looked into which university graduates receive the highest compensation five years after graduation. The Top five institutions all see grads earn over £40k after five years. The research showed that:

  • Oxford and Imperial are beating Cambridge University in terms of leavers’ earnings, with University of Oxford grads bringing in an average salary of £47,618 five years after graduation, compared to £45,741 for Imperial College grads and £44,190 for University of Cambridge grads.
  • Oxford is second only to Bayes Business School leavers, formerly known as Cass Business School.
  • The lowest-earning grads studied at Aberystwyth University (£25,129), Bath Spa (£25,196), and Edge Hill (£25,334).

Paul Lewis, Chief Customer Officer at Adzuna, comments: “This is the strongest jobs market we’ve seen for graduates post-pandemic. Despite the negative headlines, plenty of sectors remain desperate for talent and looking to grads to fill those gaps. They’re well paid positions, too – with advertised salaries for graduate roles hitting a six year high and some sectors offering pay cheques up to £70k. It’s a welcome piece of good news for the Class of 2022, who battled remote learning and pandemic pressures over the last two years.

“The choice of university can massively impact earning potential, with students from the most prestigious institutions raking in over £20k more a year on average five years post graduation, compared to grads from lesser-known places of learning. For those wanting to earn big, London universities are good bets with grads from Imperial College, UCL, and King’s all top earners five years into their careers. Russell Group institutions also dominate the list, showing when it comes to earnings, the stamp of approval from a prestigious academic institution can still make all the difference.”

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Asia is leading the way in gender diversity

In recent months, hiring in the financial services industry has hit record numbers globally, with eight major hubs showing increases of 64% in advertised roles. This makes the financial services sector one of the fastest hiring industries post-pandemic, only surpassed by the technology sector.

These findings were revealed in a new report from recruitment consultancy Robert Walters. The report, ‘Hiring Trends in the World’s Leading Financial Services Cities’  looks at the labour market across London, New York, Tokyo, Sydney, Paris, Singapore, Frankfurt, and Hong Kong.

London continues to power ahead as home to the most financial services professionals working in any one city (293,700). However, the AsiaPac region has increased in the last 12 months, with Singapore (250,000), Sydney (167,364), and Tokyo (166,000+) being the most notable cities with high levels of financial services talent.

Job Growth in the Past Year by City

  • London: +101%
  • New York: +78%
  • Tokyo: +77%
  • Singapore: +76%

Job Growth by Region

  • Europe: +62%
  • North America: +60%
  • AsiaPac: +61%

In terms of the greatest numbers of advertised job roles, New York (48,595), London (38,945), and Paris (24,165) are in the lead.

AsiaPac, however, shows the best hiring conditions. Professionals in Sydney (81%), Singapore (76%), Hong Kong (67%), and Tokyo (60%) expressed a high willingness to move roles even with this very tight candidate market.

Asia is also leading the way with gender diversity in the financial services sector. For example, Singapore (46%) has almost 50/50 gender diversity; meanwhile, in Hong Kong, women make up 44% of the banking workforce.

New York (36%) and London (36%) lag with gender diversity. However, they have made strides in cultural, racial, and socio-economic diversity. Many firms in these areas have advanced recruitment programmes to ensure their workforce represents the diversity of the city in which they are based.

Senior hires typically represent around 8-10% of all new hires. Most of the hiring is at junior and mid-management levels. However, the figures for senior hires rose dramatically over the last 12-18 months, with 1 in 3 new hires in banking has been at a senior level in some cities.

  • London: 20% of new hires are for senior roles, an increase of 5%
  • New York: Team/Department Heads were the only area to experience growth in the pandemic (+26%)
  • Tokyo: 19% of new hires are at a senior level
  • Sydney: 28% of new hires are for senior positions, an increase of 5%
  • Paris: 63% growth at Manager-level and above
  • Singapore: 31% of new hires are for a senior role

Toby Fowlston, CEO at Robert Walters comments: “The global financial services system is as solid as it was before the pandemic – and much healthier than after the last crisis in 2008 (GFC).

“Whilst the pandemic did not have the expected harmful financial effects on the global banking industry, it has certainly accelerated change in a multitude of other areas. Digital banking boomed whilst cash use fell, savings expanded and credit card debts were paid-off in record time, remote became a way of working, data-capture and usage is a central business function, and environment and sustainability are now front of mind for customers and regulators.”

“All of this change has led to exponential hiring in the sector – with each hub trying to fight for the same talent at the same time, the results being a fiercely competitive recruitment market like we’ve never seen before, with execs being offered over +30-40% pay increases with the option to work from anywhere in the world.”

“As a whole the global financial services sector has made solid strides in gender diversity – with near half of the entry-level workforce in financial services being women.”

“The task now is to equal representation at the top, where in banking less than a quarter of high-level senior positions are held by women. We are seeing some worthy gains been made in this area, and I think the increasing diversity in senior positions will only help to speed up the rapid rate of innovation and change within the sector.”

“Employers will continue to experience challenges in attracting junior analysts and associates as the traditional appeal of working for a large Financial Services organisation now finds itself in a battle with the lure of a career in a start-up or major tech firm.”

“Reputational issues suffered since the GFC and workplace-related perceptions – around hours, flexibility, and culture – will all need to be addressed head on by financial services firms if they want to build out their future talent pipeline.”

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Talent Solutions

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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TALiNT Partners has announced the finalists for the 2022 TIARA Talent Solutions Awards with 22 of the United States’ best Talent Solutions, MSP & RPO firms shortlisted across eight award categories.

The finalists for the 2022 Talent Solutions Awards US, which spotlight MSP, RPO and Talent Solutions providers delivering excellence in recruitment and talent acquisition across the US, are the top of the crop and represent the very best in providers in the industry.

Ken Brotherston, Chief Executive of TALiNT Partners made comment: “Following the inaugural TIARA Talent Solutions Awards US last year, I am delighted to see many of our 2021 finalists return to celebrate their achievements, as well as a number of new entrants this year. The 2022 Awards are a true celebration across the market, from the large global players to newer entrants and niche RPO organizations, all demonstrating excellence in their impact for employers and their own employees.”

“The TIARAs are distinguished by the rigor of its judging process and the quality of its judging panel,” he added. “Entries will be assessed by our esteemed judges through six key metrics: excellence in delivery; innovation; DE&I impact; sustainable value; business growth; and purpose.”

What sets the TIARAs apart from other awards programs is their independent panel of expert judges and individual feedback given back to each finalist.

The judges for this year’s TIARA Talent Solutions Awards are drawn from the HR and Talent Acquisition community are:

  • Sachin Jain, Senior Director – Global Talent Management, PepsiCo
  • Andrew Brown, Director RPO and Recruiting, Cornerstone
  • Russell Griffiths, General Manager, Coleman Research
  • Rich Genovese, Global Head – Talent Identification & Discovery, Jazz Pharmaceuticals
  • Gregg Schneider, Senior Manager – Procurement Plus, Global Talent Marketplace and Innovation Lead, Accenture
  • Justin Brown, Talent Acquisition Project Manager, Gallagher
  • Chris Farmer, Global Program Owner, Salesforce
  • Kerri Arman, Former VP Global Head of Talent, American Express Global Business Travel
  • Saleem Khaja, COO and Co-Founder, WorkLLama
  • Fitzgerald Ventura, CEO, 1099Policy
  • Mike Wilczak, Chief Product Officer, iCIMS

Judges will convene in May to debate and decide the winner of each category Award as well as an overall Talent Solutions Provider of the Year. All winners will be announced at an exclusive virtual awards ceremony on Thursday June 9th, 18:00 EDT.

Winners will also be profiled in a special TIARA Awards supplement published with TALiNT International.

The TIARA 2022 campaign is supported by our headline partner Cornerstone, and sponsored by WorkLLama, 1099Policy, and iCIMS.

The full list of TIARA 2022 Talent Solutions Finalists can be viewed here.

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