Tag: employers

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.

Share this article on social media

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.”

Share this article on social media

A returnship of enhanced skilled programmes more appealing to the older workforce will be implemented 

According to Jeremy’s Hunt’s budget speech, the UK will now not enter a technical recession this year as previously modelled (didn’t pandemic modellers teach us anything?) by with independent forecasters, the Office for Budget Responsibility (OBR), agreeing. Another big win for consumers and corporations alike is that inflation is expected to more than halve and reduce to 2.9% by the end of the year.

From a workforce perspective, a lot of the Chancellor’s Budget Speech specifically focused on two distinct groups of people – working parents and the over-50s and their much-coveted return to work? And for those he’s done quite a bit…

Parents who work 16 hours a week with children aged nine months to five years, will be given 15 hours of free childcare to encourage caregivers to enter the workforce. This will, however, be staggered from April 2024 to ensure enough places. Children up to two years old will get 15 hours free from April 2024, children from nine months up will benefit from September 2024, and from September 2025 every single working parent of a child under five will have access to 30 hours free childcare per week.

This is sure to free up those grandparents who have become caregivers to grandchildren and will therefore be in a position to re-enter the workforce – even in a part time capacity.

Off the golf course and into the workforce

The Chancellor will go even further and offer a new apprenticeship, called a ‘returnership’ that will be created for those aged 50 and older wanting to return to work. Mr Hunt said it will make existing skills programmes more appealing for older workers and focus on previous experience.

There has long since been a call by TA leaders for those over 50 to return to the workforce. They bring with them transferable skills and invaluable experience that could most certainly solve some of the problems organisations are experiencing amid talent shortages.

So, whilst there are still many challenges facing the wider workforce, not least around immigration and productivity, these two measures offer some practical and hopefully rapid relief to two of the most pressing challenges.

Ken Brotherston, CEO at TALiNT Partners commented: “For some time we’ve been saying that the workforce/talent agenda isn’t just something that has never been more important but is actually the most important issue organisations face and it seems the Chancellor agrees with us.

Rarely has a budget been more focussed on the issues of helping employers find and keep the people they need and support for families with young children (code for ‘get more women into work’) and the ‘returnerships’ for us oldies will hopefully stimulate employers more generally to think differently and more creatively about how to build the workforces for today’s economy.”

Share this article on social media

Job seeker confidence higher than during the Financial Crash

There is a recession looming, and the tough economic environment is impacting pay and macroeconomic confidence. Yet, despite this, employees and job seekers remain surprisingly optimistic about their job security and career prospects. This is according to the newly released Robert Half Jobs Confidence Index (JCI).

The new index was created in association with the Centre for Economics and Business Research and revealed that while the JCI fell in Q4 2022 to stand at 19.9 – down 7.5 points from Q3 2022 (27.4) – it is up 58.1 points from Q2 2009 during the global financial crisis.

With confidence increasing significantly compared to the last pre-pandemic recession, UK employers are facing a far more challenging talent landscape this year.

The report also suggests that despite consumer confidence and macroeconomic business confidence being affected by the government instability in the third and fourth quarters of last year, employees and job seekers remained optimistic about their job security, job search, and career progression prospects. This confidence likely originates from the tight labour market, with many companies struggling to hire workers with the right skills.

The data revealed that the job security confidence pillar of the index is up by 159.4 points compared to the final quarter during the recession of 2009.

Despite worries around the cost-of-living crisis and the downturn in real wages since 2009, the index points to remuneration optimism, with pay confidence increasing during the last quarter – a jump of 28.4 points, even though the pay confidence pillar of the index was in in the negative in Q4 of 2022.

Confidence surrounding job search, career progression, and remuneration is on an upward trajectory – an unusual sentiment during economic uncertainty. Despite this, Robert Half has warned that businesses will face an uphill battle for talent. Similarly, companies that decide to cut back on staff will struggle to replace them when necessary.

Matt Weston, Senior Managing Director UK & Ireland, at Robert Half, commented: “There’s no shying away from the fact that whilst the UK economy is facing challenges ahead, however our Job Confidence Index doesn’t paint the picture of labour confidence doom and gloom that one may expect as we head towards a recession. The fact that our data reveals that employees are confident about both their job security and job search and progression prospects suggests that we are going to experience an atypical downturn.

“However, with the complex macroeconomic environment impacting business confidence in recent months, we have already begun to see changes to talent strategies that we predict will continue. Employers have had to be more innovative than ever before when planning and managing human capital, and we expect companies to lean on more agile flexible staffing models, as well as developing permanent employees through upskilling and reskilling programmes.

 “One thing is for sure, though, investment in existing workforces, and developing compelling attraction strategies will be crucial to ensure that employers have access to the skills they require in what will continue to be a tight labour market.”

Share this article on social media

25% of employers report an increase in sickness absence

A new survey by WorkNest, an employment law and HR consultancy firm, has revealed the link between financial pressures and employee underperformance. The survey found that nearly half of the employers surveyed believed financial pressures were one of the main external factors impacting employee underperformance, with homeworking, childcare responsibilities, and time management also cited as key factors.

The survey also identified mental health and work-related stress as significant internal drivers of underperformance, with almost one-third of employers identifying it as a cause for concern. Additionally, ineffective leadership, poor conduct, and lack of formal training were also found to be factors affecting employee performance.

Danielle Scott, Employment Law Adviser and Solicitor at WorkNest, said that employers must recognise financial pressures due to the rising cost of living as a major factor in employee underperformance. Scott emphasized the importance of open communication and building relationships with employees to identify and address the real issues that impact their team’s performance.

Employers also expressed concern about their line managers’ ability to handle conversations about underperformance, with 27% reporting that they had provided inadequate training. The impact of mishandled conversations can be significant, with 25% of employers finding that grievances crop up out of the blue or see an increase in sickness absence.

Scott added that employers must take action by providing line managers with training and guidance on how to address these situations. Regular reviews with an employee on performance management can increase employee engagement and motivation while providing clarity on individual and team objectives. Line managers can also identify training gaps and development opportunities for team members requiring extra support.

The survey’s findings highlight the need for employers to recognize and address the external and internal factors impacting employee performance. By prioritizing open communication, providing adequate training, and regularly reviewing employee performance, employers can improve productivity and reduce the risk of grievances and absenteeism.

Share this article on social media

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.

Share this article on social media

Job applications in the sector fell by 12.5%

According to new research from APSCo and Broadbean Technology, the number of professionals in the UK applying for jobs in the financial services sector is down by a third year-on-year in January 2023, with the gap between supply and demand worsening.

The data found that job applications within the sector fell by 12.5% between November 2022 and January 2023, but this decline was far more acute when looking at annual comparisons (down by almost 30%).

APSCo’s data also reveals that while vacancy levels fluctuated throughout 2022 as economic uncertainty influenced business confidence, yearly comparisons show that new roles fell by just over 16% between January 2022 and January 2023. With application numbers dropping at a far greater rate than vacancies, employers are likely to struggle to source the skills they need in a sector that is already facing acute skills shortages.

Meanwhile, the research revealed that salaries within the sector have risen by 6.5% over the past twelve months, reflective of not only the demand for talent which has put an upward pressure on salaries, but also the impact the cost-of-living crisis has had on employers’ strategies to both attract and retain staff.

Ann Swain, CEO of APSCo, commented: “The data suggests that the Financial Services sector is facing a growing decline in skills availability. While we saw a fall in vacancy numbers during the latter half of 2022 as economic uncertainty influenced business confidence, application numbers fell at a far greater rate.

“We saw in the period following the Financial Crash of 2008 that failure to invest in skills development, attraction and retention when markets are struggling can have a longer-term detrimental impact on recovery. It’s crucial that the sector doesn’t fall into this trap again, particularly given the news that a recession has been avoided in the UK. The increase in salaries is certainly an indicator that employers are investing in attracting skills, but pay alone isn’t a sustainable route to building skills. The country is in critical need of a strong skills strategy to help it become a hub for financial businesses and talent.”

Share this article on social media

49% of organisations in the GCC currently offer remote or hybrid working

Hays Middle East, part of Hays plc, the global workforce solutions and specialist recruitment company, has released its latest Salary Guide 2023 for the Gulf Corporation Council (GCC). The guide provides comprehensive salary data for over 400 roles across 13 industries across the region, with the latest workforce trends based on expert insights and the analysis of a survey of over 2,000 employers and professionals.

The guide has revealed that despite global disruptions, the GCC has remained stable, with continuous investment and diversification leading to a buoyant labour market in 2023, creating new jobs across multiple sectors and geographies in the region with this being exemplified by 85% of employers planning to recruit permanent employees. However, with 45% professionals looking to change organisations, greater competition for the best talent is to be expected.

Employers can leverage flexible working options to counter competition

Hays believes that offering flexible working options is a viable way for employers to counter the fierce competition. The guide shows that while only 49% of organisations in the GCC currently offer remote or hybrid working options, 20% of employers anticipate that employees will be required in the workplace more. Professionals place work-life balance and flexible working as a top priority when looking for a new job.

Addressing the skills dissonance is vital for future success

According to the report, employers and employees in the GCC have different perceptions of talent availability within their organisations. The guide indicates that while 82% of employees firmly believe they have the necessary skills to fulfill their role in 2023, only 35% of employers strongly agree they have the talent needed for the coming year. Employers and employees must work together to address this disconnect to ensure success in the future.

Growth on the horizon for Technology and Industrial Sectors, plus accelerated Emiratisation

The guide highlighted that technology remains the most active industry sector for hiring, with 77% of organisations increasing their headcount last year, thanks to consistent local and foreign direct investment in focus areas such as data, cyber security, and cloud solutions. Despite uncertainty in the global Technology sector, growth in the GCC continues at pace. Indeed, 88% of employers plan to recruit permanent employees in 2023.

In Saudi Arabia, the industrial sector is expanding at an exponential rate. With the Kingdom poised to take further advantage of its abundant natural resources and central geographical location, industrial diversification into new products and materials will lead to a focus on talent with experience, technical skills, and operational knowledge.

In the UAE, almost one in two (49%) of employers will ramp up their hiring of UAE national citizens this year as they work to meet Emiratisation quotas and diversify their workforce.

Sarah Dixon, Managing Director of Hays Middle East commented: “2023 promises to be a prosperous year for the labour market and the GCC in general, with new jobs being created across multiple sectors and geographies in the region through investment initiatives from a multitude of sources. The Hays GCC Salary Guide 2023 provides valuable insights for both employers and professionals, helping them navigate the recruiting landscape of today and stay competitive for tomorrow.”

Share this article on social media

Flexible working and greater use of tech top the list

Recruiters predict a greater demand for better pay, flexible working, a greater reliance on tech, and a positive working culture in 2023. This is according to new research by digital payroll solution Cool Company. The research also revealed that 25% of recruiters believe businesses will rely more on the contract workforce in the coming months.

According to the study, flexible, tech-driven working lies on the horizon. The research found that 53% of recruiters agree that flexible working is the main priority of current job candidates

A further 50% said we would see a greater reliance on technology – including remote interviewing (40%). Diversity and inclusion were also high on the list at 39%.

Twenty-five percent of agencies believe there will be greater demand for the contract workforce, with 58% saying they experienced a significant uplift in overseas contractor placements last year. A further 35% suggested an increase in contractors working remotely in the UK.

Almost half of the recruiters surveyed believe that one of the best ways to attract top talent is flexible working, including remote working. A further 40% suggest hybrid working is a key benefit. In addition, one in five recruiters think that the global talent shortage will continue to be a challenge for businesses in 2023, suggesting that anything that gives a competitive edge must be considered.

Other projected talent-grabbing trends included increasing employee benefits (43%) and creating a positive working culture (40%). Increased pay is, of course, always a factor (50%).

Kris Simpson, Country Manager UK at Cool Company, comments: The UK employment scene is facing something of a perfect storm at the moment. With a global talent shortage and a local cost of living crisis, employers are having to do a lot to both retain their existing employees and attract new talent to their businesses.

‘The contract workforce has the potential to provide the answer to that problem. With highly skilled professionals available more or less on demand. But like employees, contractors are looking for a better work-life balance, meaning that placements that allow for remote working are a lot more appealing. While competitive remuneration remains a key draw.”

Share this article on social media

Senior managers under more stress than their teams realise, survey reveals

A new survey by HR software provider Ciphr has revealed that the cost-of-living crisis, high inflation and rising prices, and burnout are the biggest causes of stress at work for senior managers.

The survey polled 265 people in senior management and leadership roles at medium and large businesses in the UK. The respondents were asked what issues were causing them the biggest concern or most stress in their job. They were also asked whether they ever felt stressed or anxious before starting a new work week – also known as the ‘Sunday scaries’ or ‘Sunday blues’.

With 47% of the respondents saying that their job is causing them to suffer the ‘Sunday scaries’, it would appear that many senior managers are more overwhelmed by on-the-job stress than their colleagues and direct reports realise.

Of the 47% who admitted to dreading Mondays, 29% said they had experienced this feeling multiple times over the past year. A further 13% said the ‘Sunday scaries’ struck multiple times every month. For 5%, this experience happens every week.

Only 22% of the senior managers claimed not to have experienced the ‘Sunday blues’ while working at their current job or organisation.

The results also revealed that the bigger the workforce size, the greater the occurrence of the ‘Sunday scaries’, with senior leaders at bigger enterprises being more than twice as likely to experience the ‘Sunday scaries’ multiple times a month than those at SMEs (24% vs. 11%).

Survey results suggest that challenges relating to remote employment – and reduced social interaction exacerbate the stress of 18% of senior managers at remote-first organisations. However, with senior managers who have more in-person time in their role, the number falls to 10%.

Even if people don’t experience the ‘Sunday scaries’, they may still be stressed. Ciphr’s research found that 98% of people in senior management and leadership roles – regardless of whether they suffer from the ‘Sunday scaries’ or not feel stressed by at least one thing at work. Eighty-three percent could name three or more work-related stressors.

Interestingly, despite the stress, only 4% of senior managers said that they don’t like their jobs.

The top 15 causes of workplace stress for senior managers:

  • Cost of living crisis (30% of senior managers)
  • High inflation and rising prices (29%)
  • Exhaustion/burnout (22%)
  • Economic downturn (20%)
  • Workload and to-do lists (20%)
  • Unfinished work tasks (20%)
  • Employee retention and staff turnover (17%)
  • Rising interest rates (17%)
  • Business viability and profitability concerns (16%)
  • Wage inflation (16%)
  • Productivity problems (15%)
  • Pressure to perform well / expectations of others (15%)
  • Job security / losing my job (15%)
  • Growing the business / generating new revenue (15%)
  • Leadership responsibilities (14%)
  • Managing other people / the people I manage (14%)
  • Long working hours (14%)
  • Ongoing impact of Covid (14%)

Some common stressors noticeably affect the senior managers that frequently experience the ‘Sunday scaries’ compared to those who don’t:

  • Burnout (27% compared to 18%)
  • Pressure to perform well (20% compared to 10%)
  • Fear of losing their job (20% compared to 10%)
  • Long working hours (19% compared to 9%)
  • Their boss (16% compared to 7%)
  • Conflicts at work (15% compared to 8%)

Claire Williams, Chief People Officer at Ciphr, commented: “Since the pandemic, and with the ongoing impact of the cost-of-living crisis, there has been a lot of focus on the importance of alleviating workplace stress and what employers can do to safeguard their employees’ mental health. But less is said, perhaps, about the huge pressures that people in senior management and leadership roles feel and how stress impacts them.

 “The biggest stressors identified by the senior managers taking Ciphr’s survey can be grouped into three key themes, which orientate around workload, company performance, and their team. This is understandable, as it is expected, to a degree, that senior managers in any organisation will take on the ownership of those responsibilities in managing or leading an organisation. It shows they care, and that they care about the right things.

 “It is, however, important for organisations to be really mindful of the influence that work has on an individual’s stress levels – especially if they are senior management or the CEO – as they may be less likely to discuss how they are feeling. The best way to support them is for organisations to work proactively with their senior managers to either help relieve those stresses, where possible, or give them tools and strategies to cope with those stresses in a more targeted and positive way.

 “Stress, in general, doesn’t always need to be perceived as a negative – lots of people really thrive under stress and high-pressure situations – and produce some of their best work. But when high levels of stress cause anxiety or the Sunday scaries, that’s when increased risks to the business can start presenting themselves, through ill health, higher turnover of senior managers, ineffective leadership, or poor performance. It’s definitely in an employer’s interest to understand how their managers are feeling and what they can do to help, if there’s a problem, before it impacts the wider business.”

The full results are available at https://www.ciphr.com/causes-of-stress-at-work-2023-survey-results.

Share this article on social media