Tag: Skills Hiring

90% of executives say skills are becoming the way their organizations are “defining work”

According to a recent report published by Deloitte, organizations that use skills-based practices, such as career mapping for skill sets and hiring that focuses on ability instead of degrees, outperform their peers that don’t do so. However, many organizations are struggling to make significant changes amid calls for workplace agility, Deloitte noted in its report.

Some of the changes mentioned in the report extend to the function of the job itself; with 60% of executives surveyed saying that “fractionalized work,” or work that allows workers to flow between tasks based on their skills or interests, would create better value for an organization. And a number of workers said that “broadened work,” or work that is structured around broad problems to be solved, would be the best way to organize work.

While almost 90% of executives surveyed reported that skills are becoming the way their organizations are “defining work, deploying talent, managing careers and valuing employees” — and 90% of organizations said they are “actively experimenting” with skills-based programming — 59% of workers surveyed said their organizations still value degrees and job experience over “demonstrated skills and potential.”

There was however a disconnect noted by various organizations, even as President Joe Biden made public calls for workers to consider “skills not degrees.”

According to a Cengage report from July, a majority of employers surveyed still require degrees for entry-level jobs, due in part to questions over the value of credentials and other nondegree signals of skill. But many recognized that removing that requirement would help them find workers.

Similarly, 72% of employers in Morning Consult survey data released in August reported that they didn’t see degrees as reliable signals for candidates possessing the right skills, but just over half admitted they still hired from degree programs because it felt less risky. Young workers are also wary of the risk; only 31% surveyed said nondegree programs were a better long-term investment than a degree, and 65% were worried about choosing the wrong path altogether.

Surveyed employers who have pushed for skills-first programming noted that it required a complete rebuild of their job descriptions and positions. But by doing so it helped them remove barriers to significant sources of talent, one organization said during a U.S. Equal Employment Opportunity Commission and Office of Federal Contract Compliance Programs virtual event in July.

As agility once again comes into focus with employers entering the post-pandemic era, skills will likely remain a top priority for organizations, Deloitte’s report noted.

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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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More concern around skills hiring than the recession

Despite concerns about the recession, most tech leaders are planning their recruitment around market growth, says new research from Talent Works. The research revealed that leaders are more concerned about skills hiring than a recession and that hiring, especially in the tech industry, is aligned to market growth.

Talent Works’ latest study, gauging attitudes towards hiring in an uncertain economic landscape, revealed that despite the chance of a recession, over 61% of the 500 US and 200 UK tech leaders surveyed said they are still planning their recruitment drives around the market growth they are seeing.

The findings of this research align with the most recent information from The Office for National Statistics, which reported that the number of job openings in the UK from April to June was 1,294,000. This is an increase from the previous quarter. These numbers are still higher than pre-pandemic levels, indicating that worker demand remains robust.

The research also showed that tech leaders are still experiencing challenges with finding the right talent. Forty-eight percent said they are concerned about a skills shortage and getting the talent and specific skill sets they need to grow their businesses. A further 37% of tech leaders believe that flexibility in hiring models is a top priority.

Jody Robie, Senior Vice President for Talent Works, commented: “We’re still seeing high levels of demand for roles across every sector, including technology,”

“However, businesses need to find the right people within their budget to meet their growth predictions. We’re also seeing more businesses opt for flexible and embedded recruitment outsource (RPO) models as a way of extending their in-house talent teams. Beyond just getting resumes and hiring fees, this model allows them to understand the market and provides insight into the perception of their employer brand. It’s helping them to focus on growth, not recruiting, and it makes economic sense to establish a flexible sourcing relationship during a time when businesses need agility now more than ever before.”

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