Human Capital Intel - 8/13/2024
Economic insecurity undermines hiring | Creative excuses to miss goals | Weaponizing rumor mills | Employment "lite version"
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
50% of companies expand while the others lack the economic confidence to hire
Randstad, the world's largest recruiter, reports that ongoing macroeconomic uncertainty is dampening business confidence, leading to subdued hiring levels across key markets. Persistent inflation, slower economic growth, and uncertainty surrounding interest rate cuts have significantly impacted spending on recruitment. This cautious approach is further exacerbated by political uncertainty, with businesses awaiting government actions following recent European elections and in anticipation of the upcoming US election in November.
Despite this backdrop of uncertainty, a recent survey by Robert Half reveals a more optimistic outlook for the latter half of 2024. Approximately 52% of US companies plan to add new permanent positions, while 43% intend to fill existing vacancies. To attract talent in this competitive market, employers are proactively offering hybrid work arrangements, flexible hours, and higher starting salaries. However, 86% of hiring managers still report challenges in finding candidates with the required skills and meeting salary expectations.
The construction and transportation sectors - often seen as a leading indicator of recessions - presents a tough picture, with job openings plummeting by 19%. Analysts attribute this significant change primarily to the residential construction segment.
Sales blames the weather for missed metrics as complexity offers more places for employees to hide
Companies have found a new favorite excuse for missed sales: little headwinds. Heineken, the world's second-largest brewer pointed to poor weather conditions as a key factor in the company's underperformance. Amazon, which similarly missed growth projections, blamed the Olympics for distracting consumers, leading to the e-commerce giant's weaker-than-expected sales outlook.
The world is getting more complex and “macro” factors like interests rates and labor markets are having a more direct operational effect in practice. But for most employees, such factors are little more than conveniently complex excuses. As workers become less interested in work, identifying which justifications are valid would be prudent for managers who are likely to hear a lot more of them as GenZ enters the workplace.
Reading List
Smart bosses weaponize company rumors, smarter bosses stop them
The Wall Street Journal ran some advise this week about how bosses can take advantage of water cooler talk to spread their talking points. The organizational rumor mill, often viewed with suspicion by leadership, can be a valuable indicator of employee engagement and alignment issues. Rather than being dismissed or manipulated, this informal communication network should be seen as a natural response to a lack of clarity within the company. When employees turn to the grapevine for information, it often signals a gap in official communication channels or a perceived lack of transparency from management.
Amid AI skill atrophy, consider the idea of skills resilience
The rapid adoption of artificial intelligence and advanced technologies across various industries is creating an unexpected challenge: skills resilience. This involves carefully evaluating which human skills are worth preserving, even at the cost of some short-term inefficiency. Companies should strategically decide which tasks should remain human-centric to ensure the development of a well-rounded, adaptable workforce. By fostering an environment where AI augments human skills rather than replaces them entirely, organizations can maintain a pipeline of talented professionals capable of driving innovation and addressing complex challenges in the future.
‘Lite version’ of work emerges as in person jobs offer more benefits
A two-track system is emerging in the US job market, with in-office positions increasingly offering higher total compensation packages compared to their remote counterparts. Indeed's latest report reveals that 60% of job postings now include at least one employer-provided benefit, up from 40% in early 2020, with this trend most pronounced for roles requiring physical presence.
In Other News
Management styles matter — but managers aren’t using the right ones, workers say. (HR Dive)
5 Ways to Show the Business Impact of Learning, According to L&D Leaders. (Linkedin Talent Blog)
HR plays a key role in managing skill gaps, research has shown, but without proper investment, L&D can easily fall to the wayside. (HR Dive)
Bosses who use ‘we’ instead of ‘you’ are more likely to get employees to listen to negative feedback, according to new research. (Wall Street Journal)
Is the Labor Market About to Crack? It’s the Key Question for the Fed. (New York Times)
Homelessness, already at a record high last year, appears to be worsening among workers. (Washington Post)
Research: Resume Gaps Still Matter. (Harvard Business Review)
Companies with blue-collar jobs are working to overcome stigma and eliminate stereotypes about trade careers. (HR Dive)
Workers with 4-year degrees will hold most good jobs in 2031, report predicts. (HR Dive)
Are Superstar Employees Worth It? The answer is yes—but only if leaders understand how their value changes over time. (Wall Street Journal)
Gen Xers were voted the best managers among their colleagues. (Employee Benefits News)
From automating tasks like scheduling to answering internal questions, artificial intelligence is being used for human resources functions running the gamut. (HR Dive)
Gen Z isn't 'playing the corporate language game' and won't be circling back to jargon. (Fortune)
Only 2 in 5 business leaders claim AI has boosted creativity. (Tech Brew)
The C-suite is fawning over AI, but workers say its productivity gains are a mirage. (Fortune)
Wells Fargo faces lawsuit for alleged sham DEI hiring effort. (HR Dive)