YOUR REGION: United States

Tag: Hiring

78% of employers in IT report challenges hiring

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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Malaysia’s online recruitment jumps 21% in December

The retail industry is leading the growth 

According to the foundit Insights Tracker (fit), formerly known as the Monster Employment Index (MEI), e-recruitment activity in Malaysia grew by 21% year-on-year in December 2022. “The 21% annual growth can be attributed to the country easing travel restrictions and opening its borders,” said a spokesperson from foundit, which was previously known as Monster APAC & Middle East before its rebranding last year. 

 The Index currently stands at 76 points, with 3% month-on-month growth, indicating significant job market growth and persistent demand in the labour market. Over the past three months, there has been a 10% growth in hiring across sectors, with the retail industry experiencing a 65% increase in hiring activity year-over-year. 

 “The robust retail sales and upward trend in consumer sentiment drove the 65% increase in hiring activity,” said the spokesperson. However, the Index saw a year-on-year hiring dip in IT, Telecom/ISP, and BPO/ITES by 13%. Online recruitment surpassed the year-ago level in eight of the nine occupation groups monitored by the tracker, with Hospitality & Travel leading the charge at 212% due to the opening of land and air borders. 

 “We have completely eased out of the COVID-19 pandemic and opened our land borders with Singapore,” explained the spokesperson. Among all monitored occupational groups, customer service was the only one to have registered a decrease (-17%) in December 2022. The foundit Insights Tracker is a comprehensive monthly analysis of online job posting activity conducted by foundit. 

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More than 50% of UK job hunters have experienced discrimination

Discrimination worsens after hiring

In a survey conducted late last year, Remote surveyed 1,250 hiring managers and business owners across the UK, US, Canada, Germany, and France to learn more about diversity and inclusion in the hiring process in 2022.

According to the research, 49% of job hunters have experienced discrimination during the hiring process for a new job. A further 52% said they had witnessed this sort of discrimination.

The survey looked at the percentage of employees that have experienced discrimination in the hiring process across the US, France, the UK, Germany, and Canada:

  • United States – 56%
  • France – 54%
  • United Kingdom – 50%
  • Germany – 48%
  • Canada – 36%

Across all countries surveyed, the research revealed that discrimination occurs more against male applicants (52%) than female applicants (44%).

Young people (18-24) are the most vulnerable to, or observant of, workplace discrimination. Two-thirds (69.23%) of applicants in this age group have experienced discrimination in the hiring process.

The investigation also found that discrimination becomes more prevalent after the hiring process. Fifty-five percent of employees said they had experienced workplace discrimination, and 59% said they had witnessed it.

The survey looked at the percentage of employees that have experienced discrimination across the US, France, the UK, Germany, and Canada:

  • United Kingdom – 59%
  • Germany – 59%
  • France – 55%
  • United States – 54%
  • Canada – 46%

When looking at the practices that organisations use to promote diversity and inclusion in their hiring processes, the survey found that the most popular offerings are:

  • Offering workplace flexibility – 23%
  • Acknowledging holidays of all cultures – 21%
  • Providing awareness training and implementing diversity and inclusion policies for HR or People teams and hiring managers – 20%
  • Implementing scorecards to support managing bias during the hiring process – 20%
  • Advertising roles through new channels that target diverse candidates – 19%

Inclusive hiring practices are essential to the success of any organisation and influence their ability to attract and retain top talent, build a positive work environment, foster a rich company culture, improve productivity, and increase creativity and innovation.

By prioritising diversity and inclusion, organisations ensure they can take advantage of the workforce’s full potential and build a more inclusive environment.

On the other hand, without these practices, organisations risk missing out on sources of innovation and creativity.

Thirty-six percent of UK employers and hiring managers said that managing inequitable inclusion (the concept that diversity means different things to different people) is the biggest challenge.

Following this, 35% said that communication issues relating to language barriers, slang, colloquialisms, and cultural misunderstandings are challenging.

Time to train employees about different ways of thinking and approaching a scenario is the third most common challenge at 34%.

 

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Apple cuts down on job postings

A conservative hiring strategy emerges for tech giant  

New research from data and analytics company, GlobalData, has revealed that Apple is adopting a conservative hiring strategy. According to the research, the tech giant cut down job postings by 11% last year.

While so many tech companies have announced layoffs, Apple Inc (Apple) is proving to be the exception, with its conservative hiring strategy.

Looking at global figures, Apple’s job postings in China declined by 30% in 2022. The US registered an 8% decline. On the other hand, markets in Taiwan, Mexico, Switzerland, Turkey, and Sweden witnessed growth in job postings.

GlobalData’s Job Analytics Database showed that Apple’s focus areas include artificial intelligence, machine learning, automation, sales, wireless systems, 4G/5G/6G, and iOS/android. In addition, several job postings also revealed that Apple is focusing on improving its supply chain.

Sherla Sriprada, Business Fundamentals Analyst at GlobalData, comments: “Apple has not announced any layoffs recently but is being selective in its hiring process with focus on key areas and geographies, which can be attributed to various factors such as its financial performance and strategic priorities. In contrast, Alphabet Inc (Google), which announced layoffs in January 2023, had its job postings increase by 13% in 2022 over 2021.”

 “Apple has a reputation for prioritizing its employees. As a result, layoffs may not be seen as the preferred solution for the company, even in times of economic uncertainty. The company may have decided to prioritize investment in research and development, or to focus on expanding its product offerings, rather than cutting costs through layoffs.”

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Rethink recruitment in 2023

  • UK

Recruitment strategies to attract the best talent

Even with the expected business slowdown in the coming months, recruiting employees with the right skills will be more challenging than ever. This is according to a new guide from global recruitment firm Monster.

Recent research from Monster has revealed that 87% of UK companies plan to hire in 2023; however, good employees are becoming harder to find.  A further 81% of organisations struggle to find candidates with the skills they need.

To overcome this, Monster suggests a policy of proactively hiring, by communicating differently, across the entire ‘candidate life cycle’.

  • General awareness
  • Passive search
  • Active search
  • Application
  • Onboarding

Employer branding helps to build a ‘good reputation’ before candidates consider changing jobs, helping to keep them front of mind when candidates are triggered to seek new work.

Organisations also need to develop and maintain a good careers site to attract candidates in the ‘active search’ phase. The career portal should include information that candidates want to know before joining, including company values and culture.

With 70% of job applications in 2021 completed on a mobile device, the application process must be straightforward and optimised for the appropriate platform.

The guide suggests a multi-channel approach to highlight the availability of jobs.  Effective use of social media is essential to the recruitment strategy, considering that 57% of job seekers use social media to research a potential employer.

Current employees should also be considered in the hiring strategy. The guide suggests that an effective candidate retention strategy will lower hiring costs. The strategy should include the following:

  • a feedback loop, providing actionable feedback to employees
  • a referral programme
  • skills analysis, including understanding current employees’ skills before recruiting externally.

Claire Barnes, Chief Human Capital Officer at Monster, commented: “Recruiters need to engage with talent whenever and wherever they can find it – online, offline, in-person or remotely.  It’s important to present a compelling proposition including consistently and constantly building brand awareness of a kind that appeals to candidates at every stage of the job seeker journey. The entire user experience from research to job offer must be a very positive one.”

Download the Always Be Recruiting guide at https://learnmore.monster.com/UK_always_be_recruiting

 

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UK employers still hiring despite the economic downturn

  • UK

The battle to retain talent continues 

Despite the high inflation and an economic downturn, UK employers appear determined to keep hiring in 2023 with the Net Employment Outlook remaining positive at +19% for Q1 2023. This, according to the latest ManpowerGroup Employment Outlook Survey.

Even though UK employers plan to keep hiring to maintain productivity the survey revealed a decline of 5% compared to Q4 2022. Indications are that skilled talent retention is a top priority for many organisations.

The Net Employment Outlook remains positive in the UK as a whole. Hiring plans are above the national average in London with an Outlook of +24%. However, this is 4% less than the last quarter and 18 % less year-on-year.

Hiring confidence in the North East is strongest at +27% and weakest in Yorkshire & Humberside at +4%.

Chris Gray, Director at ManpowerGroup UK, commented: “Talent retention is going to be a battle for most employers this year. We’re seeing hiring cool for the third quarter running, but the demand for skilled talent is still outstripping supply – meaning employee choice over their working conditions and workplace remains high, resulting in job-hopping for better skills training and benefits.

“This situation can be likened to a leaky bucket – employers have to keep hiring at pace just to maintain position and not lose out amidst an ongoing skills shortage.”

 “Where skills are in short supply, productivity is the first thing to fall. We’re seeing upskilling become increasingly important to employees, so investment is critical if employers want to retain talent and also boost their employees’ productivity.

“Despite prominent news coverage of tech firms laying off staff, the IT industry is still struggling to find skilled talent more than any other sector. Demand for tech skills is outstripping supply, even though the data tells us there is great enthusiasm for working in tech if the skills training is available. Employers need to provide upskilling and reskilling opportunities to attract and retain the best talent.

“The Finance sector is struggling more than most to retain skilled talent. There is a longstanding challenge with reskilling in the sector. Firms are having to hire at higher-than-average rates to bring in new talent because there aren’t sufficient reskilling and upskilling opportunities to provide high-value employees with high-demand skills, resulting in attrition. We’re especially seeing younger employees leaving the sector because they lack mentor figures and upskilling opportunities.”

 

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SMEs reluctant to hire more staff in 2023

  • UK

43% of small business owners say that a recession is their main concern for 2023

With the shrinking UK economy, high inflation, and increased interest rates affecting consumer spending, fear of the looming recession is taking hold among small business owners. This is according to new SME Outlook 2023 research from the small business lending company, iwoca.

The research found that:

  • 43% of small business owners say that a recession is their main concern for 2023
  • With the rapidly increasing cost of energy, raw materials, and labour scarcity, inflation is the biggest challenge for 38% of small businesses
  • 29% say decreased consumer spending is a key concern
  • A further 38% say that increased business running costs are at the top of their list of worries
  • 76% of small business owners have some concern that energy bill support for businesses may be reduced in the first six months of this year
  • 32% of SMEs are significantly concerned about the potential decrease in government energy support
  • 25% of SME owners expect their turnover to shrink over the coming months
  • 43% believe that they will personally be worse off by the end of 2023
  • Only 26% of small businesses expect an increase in revenue over the next year. This is down from 28% at the beginning of 2022.

When looking at hiring in 2023, small business owners expect to limit hiring in the next 12 months. Seventy-nine percent of small business owners expect to employ the same number of workers this year as in 2022. Only 7% expect to employ more staff this year, 2% less than last year.

Seema Desai, iwoca’s Chief Operating Officer, said: “This recession presents extreme uncertainty for small businesses. As big banks retrench, our job as a specialist SME lender becomes even more important. Business owners are going to need finance to help with cash flow, pay staff wages, increase stock and of course cover things like higher energy bills and cost of materials.”

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US job openings rise by 4.3% in September

Hires and quits decrease

US job openings rose 4.3% in September from August, and they were up 0.4% year over year, according to data released today by the US Bureau of Labor Statistics. However, the number of hires fell and fewer people quit their jobs in September.

Julia Pollak, Chief Economist at ZipRecruiter said: “The JOLTS report says that job openings rose to 10.7 million, but other measures in the report suggest the labor market is cooling. Hires fell from 6.3 million to 6.1 million and quits from 4.2 million to 4.1 million.”

Hires were down 4.0% in September compared to August and were down 6.5% year over year.

The number of quits — which are included in separations and are voluntary on the part of employees — fell by 2.9% from the previous month and were down 4.5% year over year.

Layoffs and discharges fell as well by 10.9% from the previous month and by 5.5% year over year.

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Hiring and retaining staff rank as most difficult tasks over next 12 months, CFOs say

Planning staffing levels also appeared high on the list

According to a survey of CFOs by Gartner Inc, hiring and retaining staff are the most difficult tasks facing Chief Financial Officers over the next 12 months. The tight labor market is one of several factors – including inflation and supply chain disruptions – that are set to challenge corporate profitability through 2023.

Gartner surveyed 234 CFOs in July, and 54% cited hiring and retaining enough workers as their top challenge. It was followed by forecasting (36%) and cutting the right costs (35%).

Marko Horvat, VP, Research, in the Gartner finance practice said: “The data from CFOs align with what we are hearing from HR leaders, namely that competition for talent is expected to become fiercer over the medium term and retaining that talent will become more challenging. CFOs will need to deploy a variety of strategies to ensure critical roles remain filled while also protecting margins.”

Also on the list, “planning staffing levels across the company” was cited by 21% of CFOs.

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Vacancies down, but hiring process still needs work

Skills crisis not yet over, experts warn

The latest Office for National Statistics (ONS) data has revealed that UK vacancy rates declined between May and July 2022. But even with the decline, background screening and identity services firm, Sterling, has cautioned firms not to neglect hiring efforts with skills still in short supply. Data shows that neglect may be detrimental to organisations’ long-term hiring strategies.

According to Sterling, even though vacancies are down, the hiring market in the UK is still candidate-led, and the country remains critically short of top talent. In light of this, businesses need to rethink their hiring process to better match the job seeker’s needs.

Based on a global survey of more than 1,200 HR professionals and more than 3,700 recent job seekers, Sterling’s research revealed that 78% of job seekers are dropping out or considering dropping out of the recruitment process due to long, complex screening requirements. A third of the respondents who dropped out said the hiring process was too complicated, while 22% had concerns about the background screening process.

Steve Smith, President of International at Sterling, commented: “With so much uncertainty and with skills still in short supply across most of Europe, this is the time to ensure that you have the right processes in place to secure the talent that you need to continue successfully operating your business. Particularly in a competitive recruitment environment, ensuring applicants have the best possible experience with a brand remains of paramount importance and will be for the foreseeable future.

“When it comes to candidates dropping out of the hiring process, there’s been a wealth of speculation that individuals are getting counter-offers and they are pursuing opportunities elsewhere. While this may be the case for some, the insight we’ve gained from applicants themselves suggests there’s more to this issue that needs to be addressed swiftly. In the current economy, it’s simply not a viable option to overlook how important it is to provide an efficient and engaging experience for candidates throughout the entire hiring process.”

ONS labour response: Decline in jobs doesn’t mean the skills crisis is over

Tania Bowers, Global Public Policy Director at the Association of Professional Staffing Companies (APSCo) commented: “The post-pandemic hiring spike we experienced was bound to come to a halt at some time, but with recession fears looming and on-going Government uncertainty amidst a leadership contest, this drop is a concern for the country’s economy.

“Our own data supports the idea that permanent recruitment is slowing as the impact of the skills shortages over the last few years plays out. However, what our statistics are also indicating is that more businesses are turning to contract professionals as they struggle to fill resourcing needs. The data – provided by the global leader in software for the staffing industry, Bullhorn – revealed that the number of contract roles in the UK grew by 13% in July 2022 when compared to pre-pandemic figures (July 2019). In comparison, the number of permanent jobs dropped by 23% in the same period.”

“This reliance on the non-employed segment of the workforce simply isn’t sustainable at a time when the UK’s attractiveness as a destination to work for international contractors is dwindling post-Brexit. And with the impact of Off Payroll still being felt in the temporary recruitment market, the longer-term availability of these resources and ability to tap into skills in a cost-effective manner is at risk. We urgently need some stability from the Government and a clearer direction on the regulation of the employment market to ensure that the UK can manage through the difficult times ahead.”

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