Human Capital Intel - 11/6/2024
Human skills | Trump 2.0 | MBA applications surge | 'Breadcrumming' in the office | GenZ rejects instinct
Welcome to the latest edition of Human Capital Intelligence. As always, we would love to hear from you at ken@stibler.me with news ideas, feedback and anything else you find interesting.
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By Ken Stibler; Powered by Reyvism Analytics
What’s Working:
Human skills become a key demand for employers and driver of competitiveness for employees
Organizations are increasingly recognizing human skills as critical differentiators of workplace success, with CareerBuilder data showing 70% of employers now prioritizing emotional intelligence over traditional IQ metrics. This transformation is reshaping competitive advantages in the workforce, as employers seek candidates who can demonstrate abilities in conflict resolution, pressure management, and interpersonal effectiveness - skills that directly impact both individual and organizational performance.
The market signals are clear: Deloitte's analysis reveals 87% of professionals identify human skills as crucial for career advancement, while Indeed's market research emphatically states there are "zero" skills where AI could fully replace human capabilities. This dynamic is creating a new career development imperative, where employees who cultivate emotional intelligence, leadership abilities, and interpersonal skills are positioning themselves for stronger career trajectories and increased market value.
Our position is that the companies that value tech skills at the expense of human skills risk the ability to continue to be innovative and harness the market.
—Anthony Stephan, Chief Learning Officer at Deloitte
Despite the clear market demand, a significant opportunity gap exists in the current landscape. Only 52% of employees report their organizations actively value human skills above technical capabilities, even as Cornerstone OnDemand's research shows job postings consistently prioritize communication, interpersonal collaboration, and problem-solving capabilities. This misalignment between organizational practices and market demands presents a strategic opportunity for both employers and employees who recognize and act on this trend.
With 94% of workers concerned about future generations' human skills deficits, organizations that develop robust human skill training programs, and employees who prioritize these capabilities are likely to capture competitive advantages in an increasingly automated business environment.
Implications of Trump 2.0
With Donald Trump decisively reclaiming the presidency and the reality of a unified Republic Congress in reach, leaders are holding their breath for what’s next. HCI tends to be more focused on policy than politics, but the electoral shift will bring widespread changes from M&A reviews to trade relationship.
Trump's 2.0 is widely expected to prioritize deregulation and tax cuts, aiming to stimulate economic growth. In labor policy, the Trump administration is anticipated to roll back recent increases in overtime pay thresholds and resist federal minimum wage hikes. The Department of Labor's regulations that took effect on July 1, 2024, raised the salary threshold for overtime eligibility, a move that could be reversed under Trump's leadership in line with a broader deregulatory push.
Despite the potential benefits of deregulation, any extreme optimism, or pessimism, should be tempered by remembering that Trump had unified government between 2017-2019 which yielded very little besides tax cuts.
Economic uncertainty is also expected to rise, despite Trump’s election largely hinging on economic issues. The current macroeconomic context is much more complex than in 2016 with Trump's favorite policies (immigration reforms, and tariffs) being inflationary. Economists across the political spectrum warn that ramped up deportations will exasperate labor shortages in front-line industries, while tariffs will raise prices in inflationary ways. If materialized, such inflationary pressures would likely compel the Federal Reserve to halt rate cuts or even raise interest rates which hinder growth.
Quote of the Week: Spooky Speculation
Some Google executives were in costume — a dinosaur illustration, Reggie Miller, and a starfish among others — during the regularly scheduled quarterly meeting, while nervous employees asked about rumors of cost cutting related job cuts according to Fortune sources.
Reading List:
Brutal white collar job market sees MBA applications hit decade-high
Applications to MBA programs have surged 12% in 2024, with traditional full-time programs experiencing a remarkable 32% increase - the highest level in a decade. This dramatic uptick, driven predominantly by domestic U.S. applicants, reflects growing concerns about the white-collar job market, where AI disruption and decreased job-hopping among senior employees have created a bottleneck for early-career professionals.
'A lot of demoralized people': Ghost jobs are wreaking havoc on tech workers. (SFGate)
The surge comes amid a paradoxical labor market where overall unemployment remains low but white-collar opportunities have contracted significantly. ADP data indicates hiring for bachelor's degree-required positions has fallen below 2019 levels, with the impact particularly acute for professionals in their twenties. The trend appears to be broad-based across industries in a potential sign of businesses quietly automating jobs.
Read more in the Wall Street Journal.
Younger employees show skepticism of instinct
GenZ workers trust their instincts 60% less than previous generations, forcing corporate leadership to grapple with integrating a generation that approaches decision-making radically differently from their predecessors. According to a landmark study of 400,000 respondents across 160 countries by AI workplace analytics firm Marlee, there’s a fundamental shift away from "gut feeling" decision-making.
With younger employees consistently seeking external validation and data points before taking action - a pattern that Marlee CEO Michelle Duval warns could significantly reduce the number of future entrepreneurs from this generation. While some industry experts, including Marlee, advocate for an "exposure therapy" approach with structured guidance and clear procedures, others see potential benefits in this new leadership style.
Read more at WorkLife.
Distorted job numbers disappoint, but economists remain optimistic about a ‘soft landing’
October's employment report delivered surprisingly weak numbers with only 12,000 new nonfarm payroll jobs, while previous months saw downward revisions totaling 112,000 positions. The headline figure was significantly impacted by temporary disruptions, including Hurricanes Helene and Milton affecting "potentially tens of thousands of jobs" and approximately 44,000 workers on strike during the survey period. The blue-collar sector appears particularly vulnerable, with decreased demand in construction and maintenance compared to 2023 levels.
Despite these headwinds, market analysts maintain a cautiously optimistic outlook, pointing to the steady 4.1% unemployment rate and continued stability in holiday hiring patterns. However, key indicators suggest ongoing market cooling, with a decline in temporary hiring as a potential harbinger of further deceleration.
Read more at HR Dive.
GenZ survival guide - “breadcrumbing” in the workplace?
A new workplace tension is emerging as Generation Z shows zero tolerance for "breadcrumbing" - the management practice of dangling false promises of advancement to retain staff. The phenomenon, borrowed from dating terminology, has become increasingly visible in corporate settings where managers offer intermittent reinforcement through vague promises of raises, promotions, and opportunities that never materialize, according to workplace experts at Betterworks, a performance management platform.
While some breadcrumbing stems from institutional constraints like budget limitations or poor manager training, organizational psychologist Brian Smith warns that intentional misleading of employees should be treated as a serious management failure. The practice appears particularly risky in the current labor market, where employee trust has emerged as a critical retention factor, and younger workers expect transparent career development pathways.
Read more at WorkLife.
Data Point:
29%
The proportion of employees that say they trust their company’s leaders have their best interests at heart.
In Other News:
Workplace incivility on the rise. (SHRM)
Why Traditional Training Is Dead: The Future Of Corporate Learning Is Ciritcal to Employee Engagement. (Forbes)
Employee Burnout Survey Finds 1 in 5 Workers Think About Quitting Their Job Daily. (MyPerfectResume)
Even households earning over $150,000 a year are living paycheck to paycheck Bank of America says. (Fortune)
A Midwestern Supply Firm Beats Apple, Google on Career Growth. (Bloomberg)
9.5% of CEOs are ‘Supercommuters.’ But they tend to underperform—especially if they own a boat or live near a golf course. (Fortune)
CEOs can hurt their companies if they stay too long. When’s the right time to say goodbye? (Fortune)
LinkedIn launches its first AI agent to source candidates, ask screening questions. (Tech Crunch)