Human Capital Intel - 5/28/2024
Entry-level job scarcity | The "debossing" trend | How to upgrade L&D for AI | GenZ office vices | Acquiring the right mindset for new technologies
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
It's getting harder for grads to land their first job
The class of 2024 is facing a challenging job market as they enter the workforce. Despite high levels of confidence among graduates, with 82% believing they will receive a job offer shortly after graduation, it is an unlikely prospect for hundreds of thousands of graduates.
Employers are hiring more conservatively, with projections for hiring new graduates down 5.8% compared to 2023, according to the National Association of Colleges and Employers.
"It’s not that the AI is taking [entry-level] jobs. It’s somebody that knows how AI is working-that’s who is going to take their job.”
— Mohammad Soltanieh-ha, assistant professor at BU’s School of Business
One of the most significant challenges for new graduates is the increased competition for entry-level positions. As companies have laid off workers in response to economic uncertainty, many early-career professionals are now vying for the same roles as recent graduates. This has led to a more competitive job search process, with candidates submitting more applications and considering a wider range of positions than in previous years.
AI is also rapidly automating entry-level jobs, reducing the number of available positions for new graduates. Additionally, employers are seeking candidates with AI-related skills, further narrowing the field for millions of non-technical college graduates. As a recent WSJ article stated “employers want finance and statistics degrees, not psychology and marketing (the two most overproduced degrees relative to available jobs).
Companies rethink traditional approaches management
Rapid technological advancements are already altering management as companies reassess traditional approaches to conflict resolution and organizational structure, the Financial Times reports. AI adoption and changing attitudes of younger generations toward work are challenging the long-standing emphasis on consensus-seeking and hierarchical decision-making processes. As a result, organizations are exploring new ways to foster innovation, encourage diverse perspectives, and adapt to the evolving needs of their employees.
One notable shift is the growing recognition of the value of constructive conflict in driving breakthrough solutions. Drawing inspiration from the venture capital (VC) world, where disagreements are viewed as a means of due diligence and a path to identifying groundbreaking ideas, companies are beginning to embrace a more truth-seeking approach advocated by new Stanford research. By encouraging open debate, assigning devil's advocates, and proactively stimulating discussion among team members, organizations can uncover hidden risks, challenge assumptions, and ultimately make better decisions in the face of uncertainty.
Quote of the Week
The “unbossing” trend has come about because of the normalization of working from home, advances in tech and artificial intelligence, and generational shifts.
— Joe Galvin, Vistage chief research officer
Reading List
GenZ brings drugs and relationships into the office
As GenZ makes its way into the office - 30% of the workforce by 2030 - the cohort is bringing vices along with them. Workplace romances among Gen Z are on the rise, posing potential risks for employers. SHRM reports that a significant number of Gen Z workers are open to dating colleagues, which can lead to complications such as sexual harassment claims and conflicts of interest. While some companies may consider strict policies, others might adopt more nuanced approaches like "Love Contracts" to manage these relationships professionally. Most importantly. proactively formalizing policies is critical to manage a generation who will likely cross red lines you didn't know you had.
Read more about how GenZ are testing companies red lines and creating new ones.
How to get ahead of the AI learning curve
Major companies are increasingly recognizing the importance of preparing their workforce for the future. JPMorgan is leading the charge by implementing AI training for all new employees. The firm's wealth-management unit is already seeing analysts save two to four hours per day on repetitive tasks. Still, the complexity and perceived costs of training deter many smaller businesses. For companies looking to stay ahead of the AI learning curve, creating spaces and opportunities for employees to experiment with the tech on real business problems can be an engaging and productive first step.
Read more about how to upgrade learning and development.
Red vs blue labor fights catch businesses in the middle of a regulatory battleground
Small businesses across the United States are finding themselves caught in the middle of a complex and ever-shifting regulatory landscape, as the tug-of-war between Republican-led states and federal agencies intensifies. The flood of new employment regulations and guidances, coupled with the ongoing legal challenges and legislative efforts at both the state and federal levels, has created a challenging environment for small business owners trying to navigate, and comply with, the myriad of labor and employment laws.
Read more about the rush of regulatory back and forth and how to keep up.
Integrating tech and people requires better decision hygiene
As the pace of new tool creation accelerates, companies are facing an increasingly complex landscape when it comes to adopting and integrating workplace technology. The rapid proliferation of apps and software solutions, each promising to enhance productivity and efficiency, has led to a phenomenon known as "app sprawl" or "app overload." Yet despite this, CEOs are going it alone, with only 20% of IT workers being consulted on strategic tech decisions.
Read more about how decision hygiene can provide leaders the mindset to maximize the value of the explosion of new tools.
Stat of the Week
How NASCAR got 96% of employees to take its engagement survey. (HR Executive)
In Other News
Class That Missed Out on Fun: The pandemic left many students anxious and lonely, still choosing to go to class online, watch games on their phones and eat meals in their rooms. (Wall Street Journal)
May 2024 US Labor Market Update: How Much Further Can Job Openings Safely Fall? (Indeed Hiring Lab)
‘Almost no’ remote or hybrid jobs exist for top earners, research shows. (HR Dive)
Job losses 7.8 million, job gains 7.6 million, during third quarter 2023. (Bureau of Labor Statistics)
The crucial link between active listening and employee engagement. (Employee Benefits News)
HR-related email subjects still tops for phishing attempts: report. (HR Director)
Could AI trigger a white collar recession? (Employee Benefits News)
Activism and work: How protesting can affect job prospects. (Employee Benefits News)
Why mandated RTO could lead to massive executive departures. (HR Executive)
How Human Resources Leaders Can Adjust To AI-Driven Changes. (Forbes)