U.S. Adds Over 500,000 Jobs in January
This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.
The U.S. Bureau of Labor Statistics (BLS) found in its January jobs report that the United States added an astonishing 517,000 nonfarm jobs in January, indicating that the labor market is not cooling down. January’s added jobs were above December’s gain of 260,000 and the Dow Jones estimate of 187,000 jobs to be added this month. They were also higher than 2022’s average monthly gain of 401,000—a year that had strong job growth—and the largest increase since July 2022. The largest gains were in leisure and hospitality, professional and business services, and health care.
The unemployment rate fell from 3.5% in December to 3.4% in January. This is the lowest rate since May 1969. Experts expected the unemployment rate to increase to 3.6% in January. The labor force participation rate edged up from 62.3% in December to 62.4% in January, the highest rate since March 2022. However, the current labor force participation rate is still well below pre-pandemic levels of 63.4%. A larger labor supply helps ease a tight labor market and puts downward pressure on wages since there’s less competition among employers for candidates.
Despite January’s stronger-than-expected jobs report, wage growth came in as expected at 0.3%. January’s report also revealed that wage growth moderated on an annual basis. Wage growth has now slowed to 4.4% after reaching its peak of 5.9% in March 2022.
In January, individuals worked, on average, 34.7 hours a week, up from 34.4 in December. This is the most since March 2022, signaling that the demand for workers will likely persist for the foreseeable future.
Employer Takeaways
January’s surprising jobs report comes as the Federal Reserve (Fed) continues to increase interest rates in an attempt to fight inflation, cool the labor market and ease pressure on wages. The Fed has raised its benchmark interest rate eight times since March 2022. This month’s report indicates that the job market is currently stronger and more resilient than expected; however, economists think that January’s job gains may be influenced by seasonal factors and the early year job and wage environment.
January’s numbers cast doubt on concerns that the U.S. economy is in a recession or approaching one. While this month’s jobs report indicates that the labor market is stronger than previously believed, wage growth is slowing, potentially easing pressure on employers to increase wages to attract talent. However, since the labor market is still not cooling down, employers’ struggles to attract and retain workers will likely continue for the foreseeable future. As such, employers should continue to monitor employment trends to stay competitive in today’s evolving market.
Contact RISQ Consulting for more resources.
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4 Attraction and Retention Trends to Monitor in 2023
This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.
The labor market was a roller coaster in 2022 and will undoubtedly continue to evolve this year. It remains to be seen how the employment market will level out. Still, it’s a safe bet that employers will be challenged as they compete for top talent. Labor metrics indicate that even though the market has slightly improved from last year, it’s still a tight labor market as numbers remain historically high. While most employers project an increase in salaries in 2023, many will look beyond pay alone to help attract and retain more employees.
While some companies have been taking monetary actions (e.g., compensation and benefits packages) to address attraction and retention challenges, many organizations also are looking at ways to optimize their offerings and enhance employee experience. As they compete for talent, many may take a total rewards approach to fulfill employees’ workplace desires. This article explores four attraction and retention trends to watch in 2023.
1. Redesigned Flexibility
Remote work exploded at the height of the pandemic as most organizations shifted to this flexible work model out of necessity. Nearly three years later, it’s still at the forefront. Along with remote working arrangements, employers are offering hybrid options, flexible scheduling or even four-day workweeks.
Employees want the flexibility to work when and where they want. Employers have an opportunity to deliver on those desires and win over more workers. It comes down to offering the flexibility they need in their work and personal lives. On the other hand, many employers are striving to bring employees back to the workplace based on business priorities, so it’s essential to balance those organizational goals with employee desires for workplace efforts to be successful and well-received. While workplace flexibility is not feasible for every industry, organization and role, employers can evaluate their own situations and consider ways to develop flexible arrangements. The goal is to focus on output and productivity rather than time spent online or in the workplace.
2. Mental Health Support
Between the pandemic, inflation and job duties, more employees feel burnt out or are battling mental health challenges. As such, organizations are expected to take more responsibility for workers’ mental health and help employees on a personal level.
More employers will be considering how to take a proactive approach to employee mental well-being and resilience. A survey from the employee wellness platform Gympass revealed that nearly half of employees (48%) say their well-being declined in 2022. In addition, 28% say they are miserable at work. Health experts predict that employees’ mental health will continue to decline amid economic uncertainty, which means the demand for mental health care will increase in 2023.
Employers can offer benefits, perks and wellness programs that account for mental well-being. To address burnout and other well-being challenges, many employers will offer or expand their employee assistance programs, behavioral health anti-stigma campaigns and training for recognizing employee and peer behavioral health issues. Employers are poised to offer the education and support that today’s workers need and are looking for.
3. Learning and Development Opportunities
Learning and developing efforts have been on the rise in recent years. Not only are workers looking for professional growth opportunities at an employer, but many organizations are upskilling or reskilling workers, as it’s often less expensive to reskill a current employee than hire a new one. On the flip side, employees who receive learning and development opportunities are more likely to stay with the company and grow into different roles. Therefore, learning and development initiatives prove to be a win-win situation for employers and employees.
As employers go head-to-head in the competitive race for talent in 2023, upskilling their current workforces could be a solution to finding workers for their in-demand roles. Upskilling is when employers provide employees the opportunity to learn new skills to better their current work performance while also prepping them for the projected needs of the company. When upskilling employees, employers are investing not only in workers but also in the company’s longevity and development. Furthermore, organizations are prioritizing internal mobility to address skills gaps and strengthen employee retention.
4. Increased Focus on Belonging
Belonging is a critical component of company culture. At work, belonging is the experience of employees being wholly accepted and included by those around them. While belonging doesn’t necessarily come with a price tag, employers can invest efforts and resources into ensuring their workplaces are inclusive, collaborative and connected. Employees are looking for a work environment that’s authentic and accepting. A focus on belonging can play a crucial role in improving workplace culture and, in turn, improving employee attraction and retention.
Many workplace factors can impact employees’ sense of belonging, including (but not limited to) company culture, benefits offerings, communication methods, learning and development resources and mental health support. Any day-to-day interactions among co-workers and managers or companywide initiatives may impact workplace culture and the overall employee experience. When an organization develops a solid and positive employer brand as an inclusive and supportive workplace, it may easily attract new talent eager to join and contribute to the company culture. Employers can elevate employee experiences by creating workplaces where employees feel they belong and can be their authentic selves.
Summary
Employers can get ahead of the game in 2023 by monitoring the trends shaping the ever-evolving labor market and driving current and prospective employees’ needs and wants. While attraction and retention challenges are likely to continue this year, these trends demonstrate ways employers can elevate and strengthen their talent strategies to win and keep more workers.
Reach out to RISQ Consulting for more guidance on these topics and other employee attraction and retention trends.
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Expanding the Talent Pool With University and College Recruitment Strategies
This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.
A common misstep in attracting or recruiting talent is setting narrow restrictions on who to interview or where talent is sourced. Often, highly talented job candidates are overlooked due to inexperience. Employers have an opportunity to expand their recruiting reach by pursuing entry-level candidates at universities, colleges and trade schools, but it comes down to hiring for skills or the right fit—rather than experience—and offering training and career development on the job. This kind of strategy is considered a core recruitment function for many organizations.
As new generations enter the workforce and everyday job skills change, savvy employers can secure candidates who have the potential to grow in a new career. This article explores the opportunity for recruiting and hiring employees from universities, colleges and trade schools and ways to build a sustainable recruitment strategy.
Types of Institutions and Skills
Understanding the various learning institutions employers partner with and their differences is essential to determine which will be more beneficial for employers to recruit from. A university generally refers to a larger higher education institution that offers both undergraduate and graduate programs. They often have an emphasis on conducting research.
On the other hand, a college is often smaller and usually refers to community colleges, technical schools and liberal arts colleges. They typically only focus on undergraduate studies. A trade or vocational school offers programs that can be completed within one or two years and focus on a career-intensive curriculum with hands-on experience.
Just as there are various learning institutions, there are different skill sets employers may want to seek out depending on their industry or organization. In some cases, many may desire workers with an undergraduate degree or master’s degree; other companies may be interested in trade talent or specialized skills.
The Opportunity and Benefits
The opportunity to build a continual talent pipeline is there and will remain. The U.S. Bureau of Labor Statistics reported the following about graduates (ages 20 to 29) in 2021:
- 3 million earned a bachelor’s degree.
- 371,000 completed an associate degree.
Keep in mind that these statistics don’t include other age ranges, many of whom could be graduates—and great potential employees.
Educational institutions have been providing employers with high-quality talent for a long time. Still, there are reasons to amp up those efforts and explore additional ways to throw a wider net for entry-level candidates.
Consider the following benefits of targeting and hiring candidates via universities, colleges and trade schools or from different sectors or even roles:
- Continuous supply of candidates—Universities and colleges offer talent continually; multiple groups of students graduate in a given year. As such, employers can connect with new graduates several times throughout the year.
- Fresh, transferrable skills—It can be beneficial to hire someone with solid communication, leadership, teamwork and problem-solving skills instead of focusing on years of industry experience. This is because employers can offer learning and development opportunities to help such employees learn about the industry, department or role. For example, some liberal arts colleges may focus heavily on writing and thinking skills, which apply to many positions and may not necessarily be able to be taught in the workplace.
- Increased innovation—A candidate outside your sector won’t have industry fatigue and is positioned to bring fresh ideas to the workplace. Employees new to an industry tend to be more adaptable and open to new ways of working. This fresh perspective can push organizations out of their comfort zones and help them consider innovative or competitive approaches. Universities and colleges generally stay up to date, so students are poised to bring in the freshest ideas and forward-thinking perspectives.
- Improved employer branding—Organizations can build a renewed perception of their employer brand by building their brand within university and college settings. Campus recruitment is a great way to reach a wider audience for the organization’s brand.
- Diverse talent pool—Hiring candidates from various universities and schools can help an organization expand its candidate reach and find potential employees of varying backgrounds.
While experience and industry knowledge have their places in recruitment and hiring, it can be beneficial for organizations to hire talent from outside their industry or consider candidates with the right skills but not enough experience yet.
University and College Recruitment Strategies
Employers looking to expand their recruiting reach should review the following considerations to sustainably engage candidates in a learning environment:
- Attend in-person events. Especially before the pandemic, many university recruiting strategies relied on visiting select campuses to recruit entry-level candidates. This is still a successful strategy for employers to engage and connect with candidates on campus. Most universities and colleges hold in-person career fairs.
- Actively recruit virtually. An organization hiring remote or hybrid workers can leverage online platforms to engage with candidates and bolster their company’s brand. But it takes more than simply establishing online accounts; employers should be proactive and promote that they are open to hiring outside candidates since they offer learning and training opportunities. Additionally, online portals (e.g., Handshake) can help employers connect with students where they are and start personalized recruiting conversations.
- Participate in virtual recruiting efforts. Many universities have integrated virtual learning, and using that same approach for entry-level recruiting is effective. Virtual recruiting is an efficient way to broaden and diversify the recruitment reach for college students. Virtual career fairs will likely be hosted by colleges, trade associations or other organizations. Alternatively, a virtual event or webinar may be focused on a particular industry, profession, experience or geographic area, which can help recruit mid-level and senior positions or other nonuniversity candidates.
- Build relationships with stakeholders. For a partnership to succeed or be impactful, employers must develop long-term relationships with institutional stakeholders, such as career centers and professors. Employers may find through a quick phone call or email that career centers, for example, will be very receptive to learning more about an employer’s opportunities and establishing a relationship.
- Establish an internship or apprenticeship program. Such programs can be a strategic way to get talent in the door early and provide candidates with real-life experience. Ultimately, employers will also know if candidates have the necessary skills and if they are a good match for the company culture. Candidates may also be more likely to select a full-time employer they’ve already worked for in a less permanent capacity. An internship or apprenticeship program allows an organization to show off its workplace culture and career opportunities to rising top talent.
- Offer learning and development opportunities. Regardless of industry or age, today’s workers want career growth opportunities. Learning and development opportunities can help employees become better at their jobs and overcome performance gaps due to a lack of access to knowledge or skills. Remember that training only fills a gap, whereas professional development focuses on long-term employee and company growth.
Recruiting from higher education institutions relies on establishing effective relationships with educational institutions and identifying and engaging with suitable candidates that can bring value to the workplace and grow in a career there. Recruitment can be a mutually beneficial opportunity for both employers and universities.
Summary
Suppose employers are having a hard time finding qualified candidates. In that case, they could consider expanding their recruitment reach by pursuing entry-level workers from universities and other types of higher education institutions. New energy and fresh perspectives from recent and soon-to-be graduates can help organizations innovate and develop a strong workplace culture.
Contact RISQ Consulting today for more information and help finding ideal candidates for your company.
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Career Gap in Resume? Nearly Half of Employers Believe You Are an Untapped Talent!
By Casey Kirkeby, Strategy Consultant
Nearly half of professionals changed their job last year. The other half either stayed where they were, went part-time, or took a leave of absence from the workforce altogether citing a variety of reasons. Where does that leave employers? They need people and they need them now!
According to this 2019 SHRM article about evaluating employment gaps, Peter Yang, CEO and co-founder of ResumeGo, a résumé-writing service, was quoted as saying, “Those with gaps in their work history run the risk of being seen as lazy or unfocused with their careers, and not as an in-demand asset in the eyes of potential employers.” After 3 years and a Pandemic, you don’t have to be embarrassed or sheepish about it as much. More than ever, people have taken breaks to either focus on family or mental health.
Some hiring and résumé experts say the current labor shortage, as well as the pandemic’s personal toll on workers, has made recruiters more receptive to applicants with gaps in employment. A recent survey by LinkedIn found that “nearly two-thirds (62%) of employees have taken a break at some point in their professional career, and just over a third (35%), mostly women, would like to take a career break in the future.”
My advice if you are looking for a job in the current market? Don’t be afraid to tell the truth about your work history. The market is ripe for the picking and there are plenty of jobs to choose from, so shine like you never have before, because employers want talented people just like you! Make it a choice you feel good about as you advance forward in your working (and sometime not working) life.
I’d also like to plug my workplace because we are hiring and here are our current job postings RISQ Consulting Job Posts. Happy Hunting!
Article: https://www.morningbrew.com/hr/stories/2022/03/04/don-t-mind-the-career-gap
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Attraction and Retention Tips for Small Businesses
This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.
Businesses of all sizes are currently facing attraction and retention challenges. Successful efforts to win over employees can require an investment of time and carry high costs. Unfortunately, small businesses often don’t have an excess of resources to invest in attraction and retention efforts in today’s worker-friendly labor market.
In what’s been labeled as the “great resignation,” an increasing number of employees are leaving jobs not only for better compensation and benefits but also to prioritize desires such as flexible work arrangements or career development opportunities. Losing an employee is particularly costly for small businesses, impacting both attraction and retention. Along with costs associated with recruiting, hiring and training a replacement, the employee that left was likely a key contributor in the smaller environment, potentially leading to a significant impact on the operations and culture of a workplace.
Amid these labor obstacles, smaller employers should focus on what’s feasible. Often, small employers have the agility to respond to the employment market with new strategies. This article highlights some attraction and retention tips for small businesses.
Select the Right Benefits
According to a study from the Kaiser Family Foundation, small firms are less likely to offer health insurance versus businesses with more employees. Health insurance is valued highly by workers who often don’t have access to this coverage, which often includes part-time employees, those in the service sector—and workers employed by small businesses. Thus, for small businesses, even simply offering packages that include health care can offer a competitive edge against those that don’t.
Health insurance is just one component to consider as part of a benefits package, and small businesses should tailor their offerings to meet the specific demands of current and prospective employees. One way to start this process is by surveying employees on what types of benefits would interest them the most and then using that data to inform benefits decisions. The best benefits to offer will vary in each small business depending on the needs of the workforce—but they can be leveraged to attract and attain the right employees.
Revamp Recruiting, Hiring and Onboarding Practices
Small businesses often have limited resources when it comes to recruiting, hiring and onboarding, so it’s important to be as efficient as possible. These restraints may include insufficient financial resources to put into these practices—but also a lack of time. Often, it’s an owner, manager or lone HR professional who also takes on recruiting duties. However, a thorough review of the current status of these practices may uncover ways to create improvements.
Leveraging technology is one way to improve these practices. The good news for smaller employers is that many tools available today are relatively feasible to set up—even for a team of one— and often cost-effective.
Employers can consider using tools such as an applicant tracking system that collects and stores candidate resumes and helps automate common recruiting and onboarding tasks. To further ease the onboarding process, employers could consider leveraging cloud-based and digital tools designed to help manage the process for completing Form I-9 or direct deposit, which can be tedious for both the new hire and the employer.
By improving these processes, employers can reduce costs, and recruiting efforts can focus on finding new employees rather than dealing with tedious tasks. Every employer will be at a different place in terms of their existing processes and their current operational challenges, but a best practice to get started is to focus on what the current pain points are and how they can be improved.
Expand Recruiting Reaches
If an employer isn’t receiving the number of quality job candidates they desire, it’s worth strategizing to grow this pool. A good starting point for small businesses looking to grow their recruiting reach is to expand their online presence. This may include creating and maintaining multiple online profiles, posting content regularly and educating prospective workers about job opportunities. If limited by time, it’s OK to focus on managing one or two key profiles. It’s best to pick a platform where potential employees may likely be and focus on developing an active presence—even if it just means putting in a few minutes per day.
Employers can also focus on managing how potential candidates view their employer brand—or reputation as an employer. While small businesses may not have as developed an employer brand as their larger competitors, they may have more agility to establish—or revamp—their branding. An example of this could be to focus on highlighting the core values and impact of their organization. Surveys find that a majority of employees are more likely to work for an organization with values that align with their own.
These illustrate a few ways small employers today are expanding their reach into the employment market. Ideally, the right strategies can lead to more passive recruiting leads and improved efforts to attract employees.
Focus on Developing Employees
Attraction and retention challenges aren’t always about bringing enough employees through the doors—today, many small businesses face skills gaps. In fact, a survey in 2020 from GetApp found that one in five small businesses cited a lack of employee skills as the single biggest challenge they faced in response to COVID-19. For example, an employer’s workforce might lack the skills to use technology effectively. These gaps could also exist with soft skills, such as communication abilities or emotional intelligence. While a solution to this may be to recruit for specific skills to close these gaps, existing employees are often overlooked. While recruiting for talent with desirable skills may require significant resources, small businesses should also consider how they can bridge these gaps in-house.
Small businesses generally won’t need to develop skills for large groups, so it’s a good idea to focus on individualized learning. Some ideas or opportunities include providing career pathing plans, creating mentorship programs, offering microlearning workshops to focus on a specific skill, or paying for employees to attain certifications or further their education outside of the workplace.
Learning and development efforts can not only help employers address skills gaps; they can help employers retain existing employees and even attract new ones. Surveys find that employees are more likely to stay with an employer if they feel the organization is investing in their careers. Putting a plan to action can not only help win over employees but help prepare an employer for its future talent needs.
Offer a Flexible Work Environment
Throughout the COVID-19 pandemic, many employees have been afforded the opportunity to work remotely or have flexibility with their schedules. Surveys overwhelmingly indicate that many employees prefer to retain flexible work options. These offerings include work-from-home arrangements, hybrid work schedules (working part of the week in the office and part of it remotely) or flexible work schedules. If a business has primarily administrative employees, remote or hybrid work could continue to be an option even as COVID-19-related precautions loosen. For small businesses, offering these types of arrangements can help maintain a competitive edge over competitors that don’t offer such flexibility.
However, not all organizations allow for remote or hybrid work. If a small business is in the service industry, for example, remote work may not be an option. Yet, even working with employees to create flexible scheduling options can go a long way. The feasibility of a small business being able to offer these types of flexible arrangements will vary, but these offerings remain a priority for many workers today.
Create a Strong Workplace Culture
While topics such as compensation and benefits matter for attracting and retaining employees, so does the culture of a workplace. Even if they have limited resources, small employers should focus on fostering a desirable workplace. A healthy company culture can help retain employees—and, in turn, create an environment that is attractive to prospective job seekers. In fact, company culture is important enough that it often drives employment decisions.
As such, many small businesses are focusing on creating a strong workplace culture. Leaders are pursuing initiatives such as training managers on how to identify employee burnout, designate fair workloads and support the needs of their individual team members. In addition, many small businesses are developing programs to help create an inclusive work environment.
These types of efforts can help foster a healthy workplace culture. Each small business will be at a different place concerning the current and desired state of their work environment—and leaders can consider what types of efforts can help bridge this gap.
Employer Takeaway
Like most organizations, small businesses face a set of challenges with attracting and retaining the employees they need. Fortunately, smaller businesses have the ability to stay agile and should consider what strategies they can leverage to compete in today’s labor market.
Contact us today to learn more about attraction and retention or for additional resources on any of the topics discussed in this article.
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