Week End Roundup: October 30th

It’s the last week of October—here’s what’s going on in the global labor market: economists do not expect full recovery in hiring until 2012 (or after); hiring in the next six months will be minimal in the financial services sector; unemployment in the Eurozone reaches 9.7%; India hiring and pay will pick up in 2010; and some Canadian organizations focus on hiring and training millenials to fill baby boomers’ shoes.

Jobs Will Return–In 2012 (CNN)
A survey of top economists by the National Association of Business Economics reports that U.S. job loss will continue through the end of 2009, with unemployment peaking in mid-2010. Although hiring will occur (albeit at a slowed pace), the majority of the economists surveyed do not believe that full recovery will occur until some time during or after 2012. Factors contributing to slow recovery include: 1) limited access to credit for small businesses and decreased revenue for other employers means money is tighter; 2) many employers have reduced hours for full time workers—they are more likely to restore these hours before hiring en masse; and 3) industries that were hit the hardest (e.g., automobile, construction, finance) also previously employed the most people—recovering these jobs will be difficult, if not impossible.

Survey: Near Term Hiring to Be Slow at Financial Services Cos (Wall Street Journal)
According to a survey conducted by Grant Thornton, only 26% of financial services organizations plan to increase hiring in the next six months. Many more, about 60%, plan to keep their workforce at the same levels, while 15% of employers in the financial services sector plan to decrease their workforce.

Eurozone Jobless Worst Since 1999 (BBC)
Unemployment in the 16 countries that comprise the Eurozone rose to 9.7% in September, the highest since January 1999. Latvia’s unemployment rate is the highest within the EU at 19.7%, while the Netherlands’ unemployment is the lowest at 3.6%. Most economists are expecting employers to continue shedding jobs into 2010.

India Inc Set for Revival in Hiring Plans, Salary Hike (Economic Times, India)
The majority of private-sector employers in India expect to increase hiring in 2010, a recent report finds. India, as well as the rest of the Asia Pacific region, also expects to see a salary hike of 9.2%.

Internship Plans, In-house Training Enhance Firms (Saskatoon Star Phoenix)
Rather than hiring specifically for the skill gaps that baby boomers will leave behind when they retire, some organizations in Canada are focusing on hiring and training millenials instead. One organization, Loblaw, offers an 18-month, in-house course to train its employees in the areas of IT, merchandising, and store operations in order to prepare them for management careers. Another Canadian organization, Telus, runs an in-house training program that focuses on teaching recent graduates managerial skills. By emphasizing career development, these two organizations not only attract quality young talent, but also prepare for the departure of baby boomers.

Is Employment Branding Relevant in the Era of Web 2.0?

Web user-generated content has changed the world of employment branding. People are saying things about our organizations for millions of Internet surfers to see, which can undermine a finely-crafted “formal” employment brand.

But before we throw up our hands and wave goodbye to our past and future branding efforts, consider this: how credible are these online strangers to potential candidates? Here at the Roundtable, we’ve done a lot of research about what information sources people trust when learning about employment at another organization. Not surprisingly, current and former employees, friends and family, and the organization Web site top the list of the most credible sources. Potential candidates are always looking for the source that can give the most genuine information.

With that in mind, user-generated content hasn’t made formal employment branding less relevant. Rather, it has changed the way we should go about it, primarily:

• Be Genuine: Make sure your formal employment brand (as seen on your employment Web site) is genuine. If potential candidates don’t see you admit to any weaknesses, your credibility drops in favor of more “truthful” online comments.
• Formalize Your Brand: If you haven’t developed a formal employment brand, do so. Web users are creating an ad-hoc version of your brand as we speak, when many of your potential candidates would rather hear it from you.
• Create Your Own Presence: A good way to counter less credible comments is by creating an official blog or social networking group where you can deliver your brand messages. Giving Web goers an official destination to find out more about your organization satiates their desire for more information and gives you a channel to dispel any negative comments online.
• Equip Your Employees: Make sure your referral program encourages employees to advocate your employment brand to friends and family (Roundtable members only)
• Focus Monitoring Efforts: You can’t fight them all. Focus your monitoring efforts on sites where your current and former employees can talk about you en masse, only visiting other sites to spot notable trends.

Creative Way of Deferring Hires from Law Firms

Similar to many of us, business for most law firms is down, with a 2% drop in employment between August 08 and August 09. Less work for the firms translate into fewer (if any) positions to offer new law school grads, leaving many firms trying to figure out what to do with the grads they would like to hire but can’t. Many of us know this well as we’re turning away quality graduate and MBA hires because there are no positions available. And like us, law firms spend a considerable amount of time and money attracting these candidates—they often have an extensive interview process and bring them in as interns. With no positions to offer them upon graduation, time and money spent is as just as good down the drain.

While some firms are rescinding job offers entirely, others are turning to a more creative solution—paid nonprofit internships. Firms are paying new associates a yearly stipend to work with a nonprofit for a year. The firms benefit by keeping desired associates at a reduced cost while boasting their charitable contributions and associates gain valuable experience in the process. Nonprofits are jumping at the opportunity to participate, particularly at a time when many can’t afford to hire the legal help that they need.

If you are missing out on quality candidates, explore possible paid options in the nonprofit sector to develop hires or suggest to candidates what types of specific volunteer opportunities would bolster their resume for future jobs at your organization or in your field. While paid nonprofit internships might not work for all organizations trying to hold onto college grads they can’t hire at the moment, the example set by law firms does show us that there are other options besides just rescinding offers.

Week End Roundup: October 23rd

In this week’s Week End Roundup: Spain’s unemployment rate is the highest of any EU nations; U.S. regions are experiencing slow economic growth, but consumer spending and hiring levels remain low; about one-third of college graduates in China are unemployed; Canadian employers stress traditional benefits as key to retaining and hiring workers; and finally, over-reliance on professional networks may hinder finding the best talent.

Spain Jobless Rate Stays at 17.9% (BBC)
At 17.9%, Spain’s jobless rate is the highest in the European Union. The country’s unemployment rate has increased over the past eight quarters, and about 4.1 million people are currently out of work.

Signs of Recovery Don’t Extend to Jobs (Wall Street Journal)
Although recent reports show that U.S. states and regions are seeing slow growth across its business sectors, consumer spending behavior has yet to face similar recovery due to low hiring levels. However, the Federal Reserve does have some promising news: temp hiring has increased in some districts; layoffs are easing in the Atlanta region; and manufacturing activity is picking up in most regions.

China: Too Many Graduates, Very Few Jobs (Interpress Service)
In China, many college graduates are having difficulties finding jobs post-graduation. About 6.1 million graduates joined the labor market this year, an increase of 540,000 more graduates than in 2008. It is expected that roughly one-third of graduates will remain unemployed this year. A recently released report also shows that the earnings of college graduates with jobs were equaled to or even below that of migrant workers in China.

Traditional Benefits Key; 'You Can't Let Your Resources Walk Out the Door' (National Post)

The Financial Post recently released its ranking of the 10 best Canadian companies to work for in the private sector. Given the global downturn, many of these organizations are stressing delivery of traditional benefits, such as family-oriented perks, vacation time, and development opportunities. The outcome: employees are incented to stay and external candidates are more attracted to the company’s work environment.

Networks Too Big for Their Own Good (New York Times)
Many recruiters have traditionally relied on professional networks to fill open positions. However, given how easy it is for people to expand their networks online using social networking sites (e.g., LinkedIn), some of these connections have become tenuous. A guest writer for the New York Times argues that networks today are diluted, and he stresses the importance of seriously considering professionals outside of networks when hiring because these individuals may take more initiative in researching the company and show genuine interest in the company.

Diversity Recruiting--Don't Start with Sourcing

The subject of diversity recruiting (however “diversity” is defined) is coming up more often in my conversations with recruiting executives. The timing appears to be right: there is greater choice in the labor market, a larger variety of individuals coming through educational institutions, and less requisitions overworking the Recruiting team. It’s a pretty common conclusion—build diversity representation now to get on our way to becoming a “great place to work” for diversity hires.

The hard part about diversity recruiting, though, is that it’s not completely within the control of Recruiting. To encourage diverse people to join, you have to provide evidence that they will feel comfortable within your organization. In other words, senior executives need to support diversity initiatives to promote a welcoming environment for diverse hires. Similarly, to make sure your diversity recruiting isn’t just re-recruiting for those diverse hires who have left, you need to engage and retain diverse hires. In other words, HR needs to support diversity engagement and retention efforts to ensure Recruiting’s work is not undone.

In short, diversity recruiting is just one part of a “virtuous cycle” of diversity within your organization. Don’t kick off your diversity recruiting initiative by identifying the best sourcing channels or recruiter targets. This narrow approach will turn the diversity cycle into a vicious one—diverse candidates won’t accept offers as frequently, and those that accept offers will have a high likelihood of leaving. Start it instead with some good conversations with senior executives and HR.

Three Reasons Hiring Won’t Pick Up Anytime Soon

Most economists expect GDP numbers, due out next week; to report the economy grew in third quarter of this year. Despite the forecasted growth in the overall economy and improved profit outlooks, many organizations are holding off on hiring. Why hold off on hiring if the economy is recovering?

Several reasons are contributing to lower hiring expectations:

• A lot of companies, and economist for that matter, have doubts that the recent upturn is sustainable. Analysts suspect the growth in third quarter may be a response to companies restocking from super low inventories and government stimulus spending, rather than a signal that the recession is actually over. Continued economic uncertainty is driving many businesses to proceed with caution while they wait to see how economic recovery pans out.
• Having gone through huge staff reductions, organizations have learned to do more with less—in the second quarter of this year, productivity (output per hour of work) actually grew at an annual rate of 6.6%. Out of necessity organizations have become more efficient in their use of labor, making it possible for them to put off hiring for longer.
• In the US, there are quiet a few large legislation pieces that could significantly impact costs. The potential impact of things like health care reform, environmental regulations, and a tax credit for hiring could have big impacts on business strategies and costs. For example, if the government doesn’t act fast on making a decision about the hiring tax incentives, organizations may hold out to hire waiting unnecessarily for these benefits. Many organizations are waiting to see how regulatory legislation may impact their business before they add large numbers of workers to their payrolls.

For these, and many other reasons, hiring will probably remain low until the economy really starts to pick up again. Recruiters and job seekers will have to continue operating in a weak labor market and deal with all the opportunities and challenges it presents.

Week End Roundup: October 16th

In this week’s Week End Roundup: Job openings in the U.S. drop in August; UK unemployment rises at a slower pace than previous months; despite continued job loss in OECD nations, there are economic improvements in a few countries; Australia unemployment improves to 5.7% in September; and South Korea sees a rebound in job growth.

Employers Have Fewer Jobs to Offer (Wall Street Journal)
U.S. job openings dropped in August as compared to July, indicating that many organizations aren’t rushing to hire despite recent signs of an improving economy. August job openings totaled 2.4 million, approximately 10,000 less job openings than in July. Job switches also remain relatively low at 1.3%.

Growth in UK Unemployment Slows (BBC)
UK’s quarterly unemployment figure (as of this past August) rose at a slower pace than in previous quarters. During this period, unemployment rate rose to 7.9% from 7.6%. The population groups that were hardest hit include young people between the ages of 16 and 24 and males overall.

Jobless Rise for OECD Countries (BBC)
The 30 member countries that comprise the Organization of Economic Co-operation and Development (OECD) continued to see an increase in unemployment, from 8.5% in July to 8.6% in August. One year ago, unemployment rate for these OECD countries was recorded at 6.3%. Despite the increase, a few countries in the membership have seen improvements to their economic situation—France, Germany, and Japan have since pulled out of recession.

Australia September Unemployment Rate 5.7% (Wall Street Journal)
The unemployment rate in Australia unexpectedly improved in September to 5.7% from 5.8% in August. Economists had originally forecasted a rate of 5.9% for last month. The number of full time workers increased 35,400 in September and part time workers increased 5,200.

Job Growth Hits 10-Month High in September (Korea Times)
Korea experienced job growth last month, aided by government programs that added temp workers to the public sectors and the slow rebound in hiring in the private sector. In September, 71,000 jobs were added since last year, putting the unemployment rate at 3.4%. Job loss in the construction and manufacturing industries continued last month, albeit at a slower pace. Unemployment increased for workers in their 20s and 30s, but decreased for workers in their 50s.

Rural Job Portals in India

Rural India has recently experienced a huge growth in online job portals: Monster India announced a partnership with ITC (tobacco and consumer goods company) to launch rozgarduniya.com (employment world in Hindu), and several other sites, including chaakri.in and villagenaukri.com have recently launched as well. In many cases, these sites go beyond serving as job boards by offering training and skills assessment to rural job candidates in an effort to fill jobs in urban India with lower cost labor and alleviating rural unemployment.

The jury is still out on how successful these sites will be moving forward, but if the investment is any indicator, these sites may be very successful in relocating Indian labor from the countryside to the cities.

Week End Roundup: October 9th

In this week's Week End Roundup: The economy may be on a slow upswing, but hiring is not; employment for graduates is hit-or-miss; and Deloitte seeks diversity hires from community colleges.

Signs of Upturn Fail to Brighten Jobs Outlook (Wall Street Journal)
Despite signs of the economy improving, employers are hesitant to resume hiring. The latest jobs report shows accelerated job loss in September and an increase in the U.S. unemployment rate to 9.8%. While jobs are typically a lagging indicator of economic recovery, reports from the IMF and other sources indicate hiring may recover even more slowly during this recession.

Deloitte’s Diversity Push (BusinessWeek)
Looking to increase diversity among the executive ranks, Deloitte is recruiting from community colleges in addition to major universities. With minority populations well-represented at these two-year, state-funded schools, Deloitte hopes to encourage students to start careers in accounting through mentorship programs. Other accounting firms are not following suit, citing the fact that two-year programs do not offer credits toward the CPA exam.

Global Recovery Under Way, But Likely to Be Slow (International Monetary Fund)
The IMF sees the world economy expanding 3.1% in 2010. Although this prediction is a slight increase from previous predictions, the IMF warns that the improvement hinges on the recovery of the financial sector.

Outlook Less Bleak? (Financial Times)
The employment forecast for upcoming graduates is patchy. In general, there are fewer offers being made, forcing students to consider alternative career paths. Yet, graduates in information systems and supply chain management have a better outlook than the rest. Nestle and ABB continue hiring MBA graduates into challenging training programs.

It Will Be Years Before Lost Jobs Return—And Many Never Will (Wall Street Journal)
The U.S. has shed 7.2 million jobs since the recession began in December 2007. It is very likely that the jobs created as the economy recovers will be different than the jobs that were lost. Yet, it is impossible to predict exactly what jobs will be created. While many finance and real estate jobs are likely gone forever, jobs in health care, education, and “green” energy may continue to grow after the recession.

adidas' New, Interactive Careers Web Site

adidas recently introduced their new careers Web site, one of the more refreshing ones I've seen that tacks on interactive and engaging components to typically "flat" career sites.

When you first arrive on their site, star athletes welcome you to their Careers home page via automatically streaming videos. Notice that each of their different brands showcases a different athlete. Then, click deeper into one of the business groups within these brands, and a real employee talks to you about their day-to-day work and experiences—all tailored for that particular business within a specific adidas brand.

If I were one of adidas’s candidates, my impression would be:
1. Hey, it looks like adidas cares about me as a job candidate by creating this cool Web site—I like that.
2. I guess I'll spend a bit more time playing around on the site to learn more about what they do and what life is like as an adidas employee.
3. Do my skill sets match one of these described by the employees? Let me check out what positions and open jobs are available.

Many job candidates’ first impression or interaction with your organization is on your careers Web site, so make sure your site is compelling, engaging, and informative—all ingredients of a positive candidate experience. To target more specific candidates types, consider creating a micro-site (members only).

Looking Ahead- New Skills Sets and New Jobs Post Recession

The U.S. has lost 7.2 million jobs since the recession began in December 2007—and the economy needs to add at least 100,000 jobs per month just to keep up with labor market growth. So, for unemployment to drop (or at least stop rising), we obviously need more jobs to be created—which seems likely as the economy starts to recover.

The question is, where are the new jobs going to come from and what types of jobs are there going to be? There is bad news and good news.

The bad news is that many jobs that have been lost in the downturn have been lost for good—for example, some of the jobs in real estate and finance. And, the people who used to hold these jobs will have to look elsewhere for work.

But the first piece of good news is that the demand-supply misalignment could present opportunities for you to fill hard-to-fill positions with job seekers from other job sectors. Take a close look at some of your critical positions. Are they closely related to job sectors that have been hard hit by the recession? If so, consider how you could cost-effectively train or up skill workers from these fading sectors to meet the skill sets requirements of your critical positions.

The second piece of good news is that certain sectors of the economy are going to experience more job growth than others. For instance, the economic stimulus package has added more green jobs and hiring in these areas will pick up over the next several years. Are any of these sectors areas you hire from? If so, start planning your recruiting strategies now to make sure you aren’t caught in a talent shortage in the future once hiring picks up again.

The economy has presented new, different opportunities for us, and it’s important to evaluate how you can adapt to these changes, rather than continue business as usual.

Week End Roundup: October 2nd

In this week's Week End Roundup: Jobless figures in the U.S. and the eurozone continue to rise, while Japan's unemployment rate exceeds expectations; Australian unemployment remains relatively low, but government revenue drops as a result; and baby boomers in Australia are struggling to stay in the labor market.

1. Jobless Rate Reaches 9.8 Percent in September (Washington Post)
The U.S. unemployment rate rose to 9.8% in September, the Labor Department reported today. Job loss last month was greater than forecasted, and the figure is the highest since June 1983. Factoring in the underemployed (i.e., those who settle for part-time work) and those that have given up looking for jobs (approximately half a million people) would increase the unemployment rate to 17%.

2. Eurozone Jobless Continues Rising (BBC)
Eurozone unemployment rose to 9.6% in August for the 16 countries that comprise this region, and about 15.2 million people are jobless. Spain and Latvia recorded the highest unemployment rates at 18.9% and 18.3%, respectively. Netherlands recorded the lowest at 3.5%. For the entire EU, the unemployment rate is 9.1%, or approximately 21.9 million people. Although last month the European Commission announced the eurozone was emerging from recession, most economists expect unemployment in this region to continue rising, with some predicting up to 10.9%.

3. Fall in Japan’s Unemployment Rate (BBC)
Japan’s unemployment rate unexpectedly fell to 5.5% in August from 5.7% in July. About 3.61 million people are out of work. Other economic indicators also improved, including a rise in household spending to 2.6% and an improvement in business confidence as compared to three months ago. However, Japan’s government is hesitant to view these recent jobless figures positively, given that economic conditions in Japan remain at a relatively poor level.

4. Lost Taxes the Flipside of Saving Jobs (The Australian)
Australia’s unemployment rate faired better than that of other regions—the August unemployment rate was recorded at 5.8%. Employers have been able to save jobs by cutting back workers' hours, helping to keep the unemployment rate low. However, moving from full to part-time work also reduces the tax revenue that can be collected by the Australian government. In 2008 to 2009, tax revenue fell by as much as $2 billion in order to save approximately 200,000 jobs.

The falling tax base not only is a result of maneuvering the global downturn, but also is exacerbated by the pending needs of baby boomers. Some analysts argue that to tackle the diminishing tax revenue, Australia needs to focus on recruiting workers and students from abroad.

5. Workplace Discrimination Hits Older Job Seekers (Courier Mail)
Australian ranks 13 on the OECD’s list of countries employing workers over 55, behind countries like New Zealand, the U.K. and the U.S. The Australian Bureau of Statistics shows that it takes older workers three times as long as those in the Gen Y and Gen X age brackets to land new jobs. Some Australians blame weak age discrimination laws, a lack of business incentives to employ older workers, and the negative attitudes towards this group to exacerbate the situation.

Bookmark These Employment Web Sites

Your employment Web site is being visited now more than ever. Consider taking a look at the following progressive features that may not have made headlines, but can help improve a candidate’s experience on your site and personalize your employment brand:

• Themed employee profiles—Employee profiles are great for sharing your EVP, but few people want to watch or read all of them. Novo Nordisk does a good job of categorizing the themes presented in its extensive list of employee profiles, allowing users to quickly find information on topics of interest to them.
• Employee personality traits—How can your site quickly convey your employment brand? A: Through an interactive exercise that concisely describes “what’s interesting” about your employees. Clicking on the personality traits on T-Mobile’s homepage is entertaining and leaves a memorable impression of its employees (refresh the page to find new employees).
• “How we do it”—Day-in-the-life videos are becoming commonplace. Electronic Arts gives potential candidates a sense of the day-to-day work with narratives that describe how typical projects get done. Nothing flashy, but useful to someone outside the organization looking in.