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In the newest version of our weekly recap, the Recruitment Marketing Roundup, we delve into the latest updates shaping talent acquisition and job markets. You’ll notice a couple of emerging trends this week—specifically AI and upskilling, which are items we’ve spoken about in detail recently.
Here are the top stories we’re reading this week.
The newest report from Deloitte reveals how Generative AI is transforming work by augmenting human skills in tasks like content creation and strategy development. It emphasizes that Generative AI is designed to enhance, not replace, human capabilities, necessitating a shift in the workforce’s skill set and job structures. Leaders are encouraged to adopt a researcher’s mindset to understand and guide their organizations through AI-induced changes, focusing on a human-centric approach.
What it Means for Recruitment Marketing
- Embrace Generative AI Tools: Incorporate Generative AI in recruitment processes for tasks like resume screening and job matching.
- Focus on Human Skills: Prioritize human skills like emotional intelligence and leadership in candidate evaluations, as these remain crucial in an AI-augmented workplace.
- Adapt to Changing Job Structures: Prepare for shifts in job roles and tasks due to AI integration, requiring different skill sets from candidates.
- Guide Organizational Change: Assist in managing the transition to an AI-enhanced work environment, focusing on balancing technology and human workforce needs.
Microsoft’s partnership with the American Federation of Labor addresses concerns about AI displacing jobs. This collaboration includes AI learning sessions, workshops for new AI career opportunities and labor summits to integrate worker feedback. The initiative aims to inform about AI trends, include worker perspectives in AI development and influence policies supporting workers’ tech skills.
Recruitment Marketers Should Keep in Mind:
- Shifting Hiring Priorities: As AI replaces certain functions, recruiters might need to focus on roles that require human skills AI can’t replicate, such as creativity and emotional intelligence.
- Focus on Upskilling: There will likely be a growing emphasis on upskilling candidates for AI-related roles, highlighting the importance of continuous learning in recruitment marketing strategies.
- New Job Markets: The emergence of niche AI career opportunities could lead to the creation of new job markets, requiring recruiters to stay informed about emerging roles.
Indeed has ended its pay-per-application pricing model on Dec. 18, 2023, reverting to the traditional pay-per-click plan. The newer model, which charged employers when candidates applied, faced backlash from smaller businesses due to confusion and higher costs. The decision marks a significant shift back to a system favored before the introduction of the pay-per-application approach, which was initially aimed at improving candidate quality but didn’t meet expectations.
What it Means for Talent Acquisition
- Revised Budgeting Strategies: Talent acquisition teams may need to revise their budgeting strategies with the shift back to pay-per-click pricing.
- Impact on Small Businesses: Smaller employers, who faced challenges with the pay-per-application model, might find the return to pay-per-click more manageable.
- Quality vs. Quantity of Applications: With the pay-per-click model, there may be an increase in the quantity of applications, but teams should focus on strategies to maintain the quality of candidates.
- Adapting to Pricing Changes: Talent acquisition professionals should stay adaptable and informed about pricing models and their implications on recruitment strategies.
The ManpowerGroup Employment Outlook Survey for Q1 2024 reveals plans to increase staffing globally, despite economic challenges and a tight labor market. The Net Employment Outlook is 26% with North America, Asia Pacific and South and Central Americas showing strong hiring intentions. The IT, financials and communication sectors have the highest hiring outlooks. However, 75% of employers report difficulties in finding skilled talent, prompting strategies like offering flexible work options and wage increases. The survey also emphasizes the impact of AI and sustainable practices on the need for upskilling and redefining roles.
What it Means for Recruitment Marketing
- Global Hiring Trends: Stay informed about regional and industry-specific hiring trends to adapt talent acquisition strategies.
- Skill Shortages and Upskilling: Focus on sourcing candidates with in-demand skills and emphasize upskilling initiatives.
- Flexible Work Options: Use flexible work arrangements as a key strategy for talent attraction and retention.
- Adaptation to AI and Sustainability: Prepare for changes due to AI adoption and sustainable practices, affecting job roles and skill requirements.
A Gallup and Walton Family Foundation survey reveals that less than a third of young people view STEM careers as their top choice, despite showing interest. The lack of hands-on STEM experiences and exposure in schools is contributing to this gap. The survey suggests a need for more robust, hands-on STEM education, work-based learning and partnerships with outside organizations to enhance STEM learning.
Implications for Recruitment Marketers
- Focus on Early Engagement: Engage potential candidates early in their education, emphasizing the viability and rewards of STEM careers.
- Partnership with Educational Institutions: Collaborate with schools and educational programs to provide hands-on STEM experiences and work-based learning opportunities.
- Promote STEM Career Paths: Highlight the growth and opportunities in STEM fields to attract young talent.
- Support Extracurricular STEM Activities: Encourage and support extracurricular STEM programs to increase students’ exposure to these fields.
Rapid labor market shifts are occurring due to technological changes, notably in AI. A McKinsey report shows a significant increase in occupational shifts, with administrative roles declining and AI-specialist roles growing. Companies must adapt by analyzing job tasks for AI automation potential and focusing on new roles and skills, including social and emotional competencies. Upskilling and reskilling employees are essential for navigating these changes.
What it Means for TA Professionals
- Adapt to Technological Shifts: Prepare for changes in job roles due to AI and other technological advancements.
- Focus on Upskilling and Reskilling: Develop strategies for upskilling and reskilling employees in response to evolving job requirements.
- Emphasize Social and Emotional Skills: Prioritize social and emotional skills in recruitment and training, as these become more crucial in an automated world.
- Anticipate Future Job Trends: Stay informed about emerging roles and skills to align talent acquisition with future needs.
Etsy announced plans to cut approximately 225 jobs, or 11% of its marketplace workforce, as part of a restructuring effort to reduce operating costs. This decision comes as the company anticipates a decline in gross merchandise sales of up to 2% in the current quarter. The job cuts, expected to be completed by the end of the first quarter of 2024, will bring the core Etsy marketplace team down to around 1,770 people. Etsy estimates incurring costs of $25 million to $30 million, mainly due to severance payments and employee benefits.
Impact on Talent Acquisition
- Marketplace Restructuring: Be aware of the impact of restructuring in online marketplaces like Etsy on job availability and talent pools.
- Talent Acquisition Opportunities: The layoffs may create opportunities to recruit experienced talent from the e-commerce sector.
- Cost Management Focus: Understand how companies are managing costs, affecting their hiring strategies and workforce planning.
- Industry Trends Awareness: Stay informed about trends in the e-commerce industry, which can influence TA needs and strategies.
U.S. jobless benefit applications decreased again, with 202,000 claims for the week ending Dec. 9, indicating a robust labor market. This decline in unemployment claims, lower than analysts’ expectations of around 224,000, aligns with the Federal Reserve’s decision to keep its key interest rate unchanged. Despite high interest rates and inflation, the job market remains resilient, with average monthly job additions slowing to 232,000 this year from higher rates in 2021 and 2022. The unemployment rate dropped to 3.7% last month, marking a prolonged period of low unemployment rates not seen since the late 1960s.
What it Means for Recruitment Marketing
- Strong Labor Market: The decrease in jobless claims suggests a thriving labor market, indicating continued competition for top talent.
- Economic Stability: The resilient job market amidst high interest rates and inflation signifies a stable economic environment, influencing recruitment marketing strategies.
- Talent Retention: With low unemployment rates, focus on retention strategies to keep valuable employees from exploring the robust job market.
- Anticipate Wage Pressures: The competitive labor market may lead to increased wage pressures as companies vie for qualified candidates.
In 2023, news media outlets have eliminated nearly 2,700 jobs, marking the highest number of job cuts since 2020, according to Challenger, Gray and Christmas. This year, media companies have made a total of 20,324 cuts. The reduction in the news sector, which includes broadcast, digital and print media, has surpassed the previous two years’ figures. Major media companies, like The Washington Post, Conde Nast and Vox, are reducing staff and cutting costs due to a challenging advertising market and declining consumer interest in news.
What it Means for Talent Acquisition
- Increased Availability of Media Talent: Prepare for an influx of experienced candidates from the news media industry.
- Diversify Recruitment Strategies: Explore opportunities to leverage media professionals’ skills in other sectors.
- Focus on Industry Trends: Stay informed about industry shifts that impact hiring, such as changes in advertising and consumer engagement.
- Career Transition Support: Offer guidance and support to candidates from the media sector looking to transition into new roles or industries.
A recent GOBankingRates survey reveals that 12% of Americans are considering new full-time jobs or career changes. The labor market isn’t as tight as during the Great Resignation, with CEOs planning workforce expansions and fewer job cuts. Opportunities vary by industry and individual qualifications, with no universal right time for career changes. Growing job sectors include construction, retail, social assistance, technology, healthcare and remote work facilitation. Key tips for successful career transitions include mitigating risks, networking and being flexible about job roles and titles.
Takeaways for TA Pros
- Diverse Candidate Pools: Expect an influx of candidates seeking career changes, offering varied skills and experiences.
- Sector-Specific TA: Focus on sectors with high growth potential, like technology, healthcare and remote work facilitation, aligning TA strategies accordingly.
- Emphasize Networking: Encourage candidates to leverage their networks, which can be crucial for successful career transitions.
- Flexibility in Role Matching: Be open to placing candidates in roles that may not perfectly match their past titles but offer growth and learning opportunities.
Finance and accounting firms are recruiting college students for summer 2025 internships 18 months in advance. Companies like Guggenheim Securities and PricewaterhouseCoopers leading this trend. This early recruitment drive aims to secure top talent amid a declining pool of accounting majors. Universities are adapting by prepping students sooner for these competitive roles, focusing on skills development. This shift presents challenges for students with limited business education and indicates a complex, evolving job market.
Recruitment Marketing Implications
- Early Engagement with Candidates: Start engaging with potential interns early, focusing on college sophomores.
- Competitive Recruitment Strategies: Develop strategies to attract top talent early, considering the increasingly competitive market for interns.
- Skill-Based Evaluation: Shift focus to evaluating core skills like communication and leadership, rather than technical expertise, for early-stage students.
- University Partnerships: Collaborate with universities for early career preparation and networking events to access a pipeline of potential interns.
The Class of 2024 is confronting a tough job market, especially in tech, finance and consulting sectors, where entry-level hiring has declined. Students with strong academic and internship backgrounds are finding it difficult to secure jobs, a stark contrast to the previous years’ multiple job offers. The labor market overall remains resilient, but growth in higher-paying sectors is uneven, with increased competition due to recent mass layoffs. This shift has led to two applicants for every job opening, doubling from last year’s ratio.
What it Means for Talent Acquisition
- Increased Applicant Pool: Prepare for a surge in qualified graduates seeking entry-level positions in a competitive job market.
- Strategic TA Adaptation: Adjust strategies to meet the challenges of reduced hiring in sectors like tech and finance.
- Guidance for Graduates: Offer enhanced support and guidance to new graduates, helping them navigate the tougher job landscape.
- Sector-Specific Focus: Direct recruitment efforts toward industries with stable or growing opportunities, such as healthcare.
Blue-collar workers are experiencing stronger hiring and faster pay growth compared to many white-collar roles in 2023. While the overall job market slows, sectors like construction and manufacturing are thriving, with a 46% increase in job postings compared to pre-pandemic levels. In contrast, tech sector hiring is declining. Employment growth is particularly notable among those without a high school degree, outpacing the national average. Despite lower general pay in blue-collar jobs, their wage gains are currently outstripping inflation, unlike in some white-collar sectors.
Takeaways for Recruitment Marketers
- Emphasis on Blue-Collar Hiring: Prioritize TA in blue-collar sectors like manufacturing, mining and construction, which are showing strong growth.
- Adjusting White-Collar TA: Be mindful of the reduced hiring in white-collar sectors, particularly in tech and adapt strategies accordingly.
- Wage Growth Consideration: Factor in the faster wage growth in blue-collar jobs when negotiating salaries and benefits.
- Diverse Education Backgrounds: Open up acquisition to candidates with diverse educational backgrounds, including those without a high school degree.
Enphase Energy Inc. is cutting 10% of its workforce (350 jobs) and ending contract manufacturing in Wisconsin and Romania. They claim this is due to economic challenges, including high interest rates and legislative changes in California’s solar market. These measures are part of cost-cutting efforts to streamline operations, with expected restructuring charges of $16 million to $18 million.
Implications for Talent Acquisition
- Availability of Skilled Workers: Expect an increased pool of skilled professionals, particularly in the solar and renewable energy sectors.
- Adapting to Industry Shifts: Stay updated on changes within the energy sector, adapting recruitment strategies to meet evolving industry needs.
- Cost Management in Recruitment: Be mindful of the broader economic challenges facing industries, potentially impacting recruitment budgets and strategies.
- Geographical Considerations: Note the specific geographic impacts of layoffs, with potential talent pools available in affected regions like Wisconsin and Romania.
Dr. Iman Abuzeid, CEO of Incredible Health, highlights the significant growth in healthcare hiring, with 77,000 of 200,000 recent jobs added in this sector. Incredible Health is using generative AI to improve the hiring process, including a resume wizard for nurses. This AI integration has led to increased interview acceptances and aims to address the healthcare worker shortage by making hiring more efficient and personalized.
What it Means for Recruitment Marketers
- Healthcare Sector Growth: Focus on the healthcare sector, which is showing significant job growth and demand for professionals.
- AI in TA: Leverage AI tools to streamline the hiring process, especially in fields facing worker shortages.
- Resume Building Tools: Implement or recommend AI-based resume tools to assist candidates, especially those with limited access to resources.
- Personalization in TA: Emphasize personalized communication and outreach in the acquisition process to increase candidate engagement and response rates.
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