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Welcome to this week’s edition of our Recruitment Marketing Roundup! Dive deep with us as we explore the issues and innovations shaping the world of recruitment today. 

In this issue, we spotlight a groundbreaking study where economists sent out 80,000 fictitious resumes to major U.S. companies, unveiling stark disparities in callback rates that suggest ongoing racial and gender biases in hiring practices. 

Plus, Elon Musk is being forced to pay his AI engineers more after an attempted poaching from OpenAI.

Read on to learn about these stories and others shaping recruitment marketing and talent acquisition today.

What Researchers Discovered When They Sent 80,000 Fake Resumes to U.S. Jobs

​​An expansive study by economists involved sending 80,000 fictitious resumes to about 100 of the largest U.S. companies to investigate hiring discrimination based on race and gender. The experiment revealed significant disparities in callback rates for applicants with names suggesting they were Black compared to those presumed white, with some industries and companies showing more pronounced biases.

Key Insights

• Widespread Discrimination: On average, resumes with white-sounding names received 9.5% more callbacks than those with Black-sounding names.
• Industry Variability: The gap in response rates varied significantly across different industries, with certain sectors like retail and auto sales exhibiting higher levels of discrimination.
• Company-Specific Findings: Some companies, notably AutoNation and Genuine Parts Co., showed particularly high discrepancies in callback rates favoring white applicants.
• Impact of HR Practices: Companies with centralized HR operations demonstrated less racial bias in their hiring processes.

Implications for Talent Acquisition

• Sector Awareness: Talent acquisition professionals should be particularly vigilant in industries with higher instances of discrimination, tailoring diversity and inclusion efforts accordingly.
• Revisiting HR Strategies: Emphasizing centralized and standardized HR practices could help mitigate biases in the hiring process.
• Training and Awareness: Ongoing training and awareness programs are crucial to address and reduce unconscious biases among hiring managers.
• Diversity in Hiring Panels: Ensuring diversity among those involved in the hiring process can lead to more equitable outcomes.
• Skills-Based Hiring: Moving towards skills-based hiring criteria, rather than focusing on degrees or other potentially biased qualifications, can promote a more inclusive recruitment process.

This study underscores the persistent challenge of employment discrimination in the U.S. labor market and highlights the importance of deliberate and thoughtful HR practices in promoting fairness and inclusivity in hiring.

Research Reveals Candidates’ Frustrations with Hiring Process

The Candidate Experience Benchmark Research and Awards Program’s latest report, drawing on data from 150 global organizations and feedback from 240,000 job candidates, highlights growing discontent with the hiring process. Key issues include declining satisfaction since 2021, elevated candidate resentment, and the negative impacts of poorly implemented technology on the candidate experience.

Key Insights

• Decreasing Candidate Contentment: Satisfaction with the hiring process has been falling, with candidates expressing significant resentment when faced with poor recruiting experiences.
• Impact on Employer Brand: Negative candidate experiences deter future applications, referrals, brand affinity, and even potential purchases from the company.
• Technological Double-Edged Sword: While essential for attracting top talent, technology, especially when poorly executed, can diminish the personal engagement necessary for a positive candidate experience.

Recruitment Marketing Takeaways

• Enhancing Personal Engagement: Emphasize more personal and live interactions within the hiring process to counteract the detachment caused by virtual and automated systems.
• Improving Communication: Address candidates’ grievances regarding disrespect of their time by enhancing communication and feedback throughout the hiring stages.
• Streamlining Application Processes: Simplify and expedite the application process to respect candidates’ time and maintain their interest.
• Leveraging AI Responsibly: Utilize AI and conversational AI technologies effectively to automate outreach and improve communication, ensuring that the technology enhances rather than degrades the candidate experience.
• Prioritizing Candidate Values: Focus on presenting authentic company values and culture through various channels, as candidates highly value alignment with their personal beliefs and goals.

This research underscores the critical role of the candidate experience in talent acquisition and the necessity of balancing technology with personal interaction to maintain a positive employer brand and attract top talent.

US small businesses dial back hiring plans again, NFIB says

According to the National Federation of Independent Business (NFIB), U.S. small businesses have reduced their hiring plans to the lowest point since early in the COVID-19 pandemic, highlighting a cautious approach despite the ongoing tight labor market. The March report indicates only 11% of surveyed small businesses intend to create new jobs in the coming three months, a slight decrease from February and below the historical average.

Key Insights

• Decreased Hiring Intentions: Small businesses’ plans to hire have dipped to the lowest level since May 2020, falling below the historical average.
• Steady Employment Activity: Despite a slight downturn, over half of small businesses are still actively hiring or attempting to hire, maintaining solid employment activity.
• Rising Compensation: To attract and retain employees in a competitive labor market, 38% of small businesses reported increasing compensation.
• Skill Gap: A significant portion of small businesses struggle to find qualified candidates, with a notable shortage in skilled workers.

Implications for Recruitment Marketing

• Highlighting Competitive Compensation: In a tight labor market, emphasizing attractive compensation packages can help small businesses stand out to potential candidates.
• Addressing the Skills Gap: Recruitment strategies should include upskilling opportunities and clear career progression paths to attract more qualified applicants.
• Industry-Specific Challenges: Tailored recruitment efforts are necessary in industries like transportation, services, and construction, where job openings are prevalent but hard to fill.
• Adapting to Market Conditions: Small businesses must remain flexible and responsive to labor market dynamics, potentially adjusting hiring strategies to account for economic uncertainties and changes in candidate expectations.

This report underscores the challenges small businesses face in the current labor market, from finding qualified candidates to adapting hiring plans in response to economic conditions, and highlights the need for strategic recruitment marketing to address these challenges.

Hot AI Job Market Forces Tesla to Raise Engineers’ Pay to Stop OpenAI’s Poaching Efforts

The battle for top talent is intensifying in the AI industry, with companies like Tesla and OpenAI at the forefront. Tesla, led by Elon Musk, has been compelled to increase compensation for its AI engineers to fend off poaching attempts by OpenAI, underscoring the high demand for skilled AI professionals.

Key Insights

• High Demand for AI Talent: The AI job market is heating up, with companies willing to offer substantial compensation to secure top engineers.
• Tesla’s Retention Efforts: Faced with aggressive recruitment from OpenAI, Tesla has raised pay for its AI team, tying compensation to performance milestones.
• Industry-Wide Talent Scramble: This talent war is not isolated to Tesla and OpenAI; other tech giants have also engaged in similar recruitment strategies to bolster their AI capabilities.

Implications for the Tech and AI Sectors

• Strategic Compensation Plans: Companies may need to reevaluate their compensation strategies to retain and attract AI talent, potentially setting new industry standards for salaries and benefits.
• Focus on Upskilling: The fierce competition for skilled AI professionals may encourage organizations to invest more in training and upskilling their existing workforce.
• Innovation and Growth: The scramble for AI talent is indicative of the sector’s rapid growth and the critical role AI plays in driving technological innovation and business strategies.
• Legal and Ethical Considerations: The ongoing legal dispute between Musk and OpenAI highlights the complex ethical and governance issues surrounding AI development and its commercialization.

This tug-of-war for AI expertise between Tesla and OpenAI exemplifies the broader trend of escalating demand for AI skills across the tech industry. As companies continue to prioritize AI in their strategic agendas, the battle for talent is set to shape the future of AI development and its integration into various sectors.

Cannabis Job Market Returns to Positive Growth, Vangst Annual Report Finds

The 2024 Vangst Jobs Report, produced in collaboration with Whitney Economics, reveals encouraging growth in the legal cannabis industry, underscoring its resilience and expanding employment opportunities. The industry now supports 440,445 full-time jobs, marking a 5% increase from the previous year, driven by a significant rise in sales of legal cannabis products.

Key Insights

• Employment Growth: The legal cannabis sector added nearly 23,000 new jobs in 2023, demonstrating a healthy 5.4% year-over-year growth.
• Regional Job Expansion: States like Michigan and Missouri are leading in job creation within the industry, while traditional cannabis-friendly states experienced a decline.
• Sales Surge: The industry’s sales reached $28.8 billion in 2023, fueled by a $2.7 billion increase from the prior year.
• Future Hotspots: Ohio, New York, New Jersey, and Maryland are identified as emerging job markets in the cannabis sector for 2024.

Implications for Talent Acquisition in Cannabis

• Targeted Recruitment Efforts: With certain states emerging as key growth areas, recruitment strategies should be tailored to these regions to leverage the expanding job market.
• Industry Promotion: Highlight the robust growth and stability of the cannabis job market to attract professionals from other sectors looking for dynamic career opportunities.
• Adapting to Sales Trends: As sales continue to grow, companies should prepare for increased demand by scaling their workforce accordingly, particularly in customer-facing and production roles.
• Anticipating Future Growth: With an expected overall revenue increase of 9% in 2024, businesses should proactively plan for expansion, both in terms of workforce and operational capacity.

The Vangst Jobs Report illustrates the legal cannabis industry’s ongoing positive trajectory, emphasizing the sector’s role as a significant employer in the U.S. economy and its potential for future job creation.

Novartis to cut 680 jobs in product development

Novartis, the Swiss pharmaceutical giant, announced plans to reduce up to 680 jobs in its development organization over the next two to three years, affecting its workforce in Switzerland and the United States. This move is part of an effort to streamline operations and is separate from a larger restructuring initiative that might see a broader reduction across the company’s global workforce.

Key Insights

• Job Reductions: Approximately 440 positions will be eliminated in Switzerland and up to 240 in the United States, targeting the company’s development sector responsible for bringing drugs to market.
• Organizational Restructuring: These cuts are distinct from a previously announced restructuring program that could affect up to 8,000 of Novartis’s 78,000 employees worldwide.
• Development Workforce: The development division, which is facing cuts, plays a crucial role in drug regulation, analytics, and production process design, with around 12,500 employees globally.

Implications for Talent Acquisition and HR in Pharma

• Strategic Reassessment: The job cuts underscore the need for talent management strategies that adapt to changing business priorities and focus on retaining critical skills.
• Local Talent Access: Novartis aims to reshape its capabilities to leverage local talent, such as data scientists and regulatory specialists, particularly in Britain, indicating a shift towards more specialized recruitment.
• Innovation and Leadership Commitment: Despite the reductions, Novartis affirms its commitment to its Swiss base as an innovation hub and to the United States as a key development center, suggesting that strategic roles in these regions will remain vital.
• Net Reduction Impact: With the addition of new roles, the net global workforce reduction will be around 1-2%, indicating a moderate overall impact but a significant realignment of skills and roles within the company.

This move by Novartis reflects broader trends in the pharmaceutical industry, where companies are continually reassessing their talent and operational needs to align with evolving market demands, regulatory environments, and technological advancements.

Recent Surge in Tech Jobs Sets Stage for Strengthening Demand in 2024

The latest CompTIA Tech Jobs Report signals a robust upturn in the tech job market, with 191,000 new tech-related job postings in March alone, marking a peak in postings not seen since August of the previous year. Dice CEO Art Zeile highlights this trend as a testament to the sector’s resilience and the escalating demand for tech talent across various industries.

Key Insights

• Growth in Tech Job Postings: March saw an increase in tech job postings, with the tech unemployment rate dipping to 3%, underscoring a strong demand for tech professionals.
• Nationwide Expansion: Both traditional tech hubs and emerging markets across the U.S. are experiencing significant increases in tech job opportunities.
• Diversity in Tech Careers: Nearly half of all tech job postings in March did not require a four-year degree, indicating a broadening of career entry paths into the tech sector.
• AI’s Prominent Role: AI-centric jobs are driving demand within the tech sector, making up 41% of postings in emerging technologies, reflecting AI’s growing influence across all industries.

Implications for Talent Acquisition in Tech

• Embracing AI in Recruitment: Companies should invest in recruiting tech talent adept at leveraging AI to enhance creativity, innovation, and problem-solving within their organizations.
• Adapting Hiring Strategies: With the tech talent pool expanding beyond traditional degree pathways, recruiters should consider diverse qualifications and experience levels.
• Competitive Hiring Practices: The surge in demand for tech professionals means companies must refine their hiring processes, improve candidate communication, and use AI-powered tools to efficiently match skills with job requirements.
• Focus on Emerging Markets: Talent acquisition strategies should also target emerging tech markets, capitalizing on the growth opportunities outside traditional tech hubs.

This upward trend in tech job postings, particularly in AI and other emerging technologies, underscores a pivotal moment for companies to attract and retain top tech talent by recognizing the evolving landscape of tech careers and the strategic role of AI in driving innovation and business growth.

Why fear of AI making a job obsolete is the wrong way to think about a career future

The prevailing narrative around AI in the workplace often centers on job displacement fears, but recent surveys and industry insights suggest a more constructive approach lies in focusing on upskilling to meet the evolving technological demands. As businesses ramp up their AI investments, the real challenge isn’t job replacement but rather the skills gap that could hinder AI’s integration into various sectors.

Key Insights

• Increased AI Investment: Surveys indicate a significant uptick in AI spending among firms, with a particular emphasis on general AI technologies.
• Workforce Concerns: Despite widespread anxieties about AI making jobs obsolete, the primary obstacle for organizations is not AI itself but a shortage of necessary technical skills.
• Skills Deficit: A considerable portion of companies identifies the lack of talent proficient in AI technologies as their main challenge, overshadowing other concerns like cost and strategic direction.

Implications for the Workforce and Recruitment

• Emphasis on Upskilling: The solution to navigating AI’s workplace integration lies in extensive training and reskilling programs, suggesting a pivotal role for employers in facilitating this transition.
• Industry-Specific Talent Shortages: Fields like cybersecurity exemplify areas with acute talent shortages, highlighting the need for specialized upskilling initiatives.
• Educational Institutions’ Role: Colleges and universities are crucial in preemptively addressing the technology talent gap, with AI degree programs gaining popularity.
• Adapting to Technological Evolution: The narrative should shift from job loss to adapting and enhancing skill sets to leverage AI effectively, mirroring historical shifts in technology use within workplaces.

The discourse around AI and employment is moving towards a more nuanced understanding that recognizes AI’s potential to transform jobs rather than eliminate them outright. This perspective encourages a proactive approach to workforce development, emphasizing the importance of continuous learning and adaptability in an increasingly AI-integrated economy.

The great talent grab: More people who recently switched jobs say they were approached by a recruiter instead of applying themselves

In a tight job market, the dynamics of talent acquisition are shifting, with a significant increase in employees being actively recruited for new positions rather than applying on their own. A recent survey by ZipRecruiter reveals that nearly half of those who changed jobs recently were approached by recruiters, highlighting a proactive approach by companies in sourcing talent.

Key Insights

• Rise in Active Recruitment: The first quarter of 2024 saw 46% of new hires indicating they were recruited for their current roles, a noticeable increase from the previous quarter’s 34%.
• Challenges in Job Hunting: Despite active recruitment for some, many job seekers are finding it more difficult to secure positions on their own, with fewer people landing jobs within a month compared to last quarter.
• Industry-Specific Trends: Industries like financial services and advertising are more likely to engage in active recruitment, while sectors such as utilities and retail see less of this approach.

Implications for HR and Talent Management

• Adapting Recruitment Strategies: HR teams need to embrace proactive recruitment methods to secure top talent, moving beyond traditional job postings and applications.
• Retention Efforts: With the rise in external recruitment efforts, companies must also focus on retaining their current workforce through enhanced engagement and counter-offer strategies.
• Sector Variations: Recruitment and retention tactics may need to be tailored to industry-specific trends, recognizing the varying levels of active recruitment across different sectors.

This evolving landscape underscores the importance of proactive recruitment and robust retention strategies in the competitive job market. As companies vie for top talent, HR departments must navigate the challenges of attracting new hires while ensuring they can retain their existing employees amidst increasing external recruitment efforts.

LinkedIn starts verifying recruiters to stop scams

LinkedIn is taking a significant step to enhance user trust and security by introducing a verification process for job recruiters. This move aims to address the growing concern over scams, particularly those involving fake job offers designed to extract sensitive financial information from users.

Key Developments

• Verification Badge: Verified recruiters on LinkedIn will be distinguished by a checkmark badge on their profiles, affirming their authenticity.
• Messaging Visibility: When a verified recruiter sends a message, their verification badge will be prominently displayed, offering additional reassurance to recipients.
• Verification Process: The process aligns with LinkedIn’s standard account verification, allowing recruiters to verify their identity through a work email from a recognized company or via partners like CLEAR.

Implications for LinkedIn Users and Recruiters

• Enhanced Trust: The verification badge serves as a tool for users to differentiate genuine recruiters from potential scammers, fostering a safer job search experience.
• Transparency and Control: By introducing recruiter verification, LinkedIn provides users with more information to make informed decisions about their interactions on the platform.
• Global Rollout: While the verification feature is launching with some geographical limitations, LinkedIn plans to extend this service to more markets, aiming for a global reach.

This initiative by LinkedIn underscores the platform’s commitment to user safety and trust, particularly in light of the increasing sophistication of online scams. For recruiters, obtaining verification could become a crucial step in establishing credibility and successfully engaging with potential candidates.

Rodney Hess

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Rodney Hess is a marketing mad man, but more Doc Brown than Don Draper. Rodney is the Content Marketing Director for RecruitmentMarketing.com and has been working in online marketing and advertising for over 15 years. He's been featured in publications like Forbes and Mashable. If you catch him tapping a pencil or bouncing his leg, it's because his brain never turns off. He's just dreaming up his latest AI scheme.