The Latest from the Talent Tech Industry
May 3-9, 2021: DOL withdraws Independent Contractor Rule making it harder for employers to use that classification; Greenhouse releases its onboarding platform Welcome to create a more personalized experience; Companies in a range of industries drop college degree requirements to diversify staffs; Jobilla raises 2.16M euros to further develop its AI-based recruiting platform and expand in the US and Europe; US job creation in April was far below the expected level raising concerns about the current economic expansion; A growing number of employers are offering hiring bonuses to attract talent, but it’s yet clear if they’re enough; TAtech releases the videos from its first-ever podcast conference exploring the future of key talent acquisition strategies, tactics and technology.
DOL Withdraws Independent-Contractor Rule
The U.S. Department of Labor (DOL) is officially withdrawing the prior administration's independent-contractor rule, which would have made it easier for businesses to classify workers as independent contractors rather than employees. "The department believes that the rule is inconsistent with the [Fair Labor Standards Act's] FLSA's text and purpose and would have a confusing and disruptive effect on workers and businesses alike due to its departure from longstanding judicial precedent," according to the DOL's announcement on May 5. Under the FLSA, employees are entitled to minimum wage, overtime pay and other benefits. Independent contractors are not entitled to such benefits, but they generally have more flexibility to set their own schedules and work for multiple companies
Greenhouse releases Welcome to create culture-first onboarding experiences
Greenhouse, the hiring software company, today launched Welcome, a new platform to create thoughtful, curated onboarding experiences for new hires that extends beyond paperwork and logistics. Unveiled at the Greenhouse virtual event Open Forum, Welcome makes it possible for companies of all sizes to create personalized onboarding experiences, quickly and easily. The emergence of COVID in early 2020 had a momentous impact on businesses across all sectors, forcing many to immediately pivot to distributed work models and reimagine their candidate experience. Beyond the shift to remote sourcing and video interviews, it became clear that existing onboarding processes centered on administrative requirements weren't enough. Companies needed to create a thoughtful, personalized and engaging experience that mirrored in-person onboarding by focusing on the company culture and role expectations.
No College, No Problem. Some Employers Drop Degree Requirements To Diversify Staffs
On a recent afternoon, Emily Knowles was testing out apps with her software development team, making sure they work properly. The tech industry is filled with people who have the same type of education and advantages. As the sector expands, economists say this reinforces inequality. Ovia Health is among a number of companies identifying entry-level jobs like the one Knowles has and dropping the degree requirement. The objective is to diversify their staffs and gain a market advantage. Other companies like the financial firm State Street, the hotel chain Hilton and the publisher Penguin Random House are doing the same for some jobs. "It might not be all job descriptions, but [there's] definitely a trend to really evaluate the true necessity of a four-year degree," said Tracy Burns, CEO of the Northeast Human Resources Association, adding that she's been encouraging other employers to drop the requirement.
Finnish Recruiting Platform Jobilla Raises 2.16 MLN Euros
Finnish talent acquisition startup Jobilla said it has closed a 2.16 million euros funding round led by Trind VC for expansion to new markets and product development. This latest investment round will fuel further expansion in Germany, Austria, and the Netherlands, while also scaling up the company’s operations in the USA. The funding, of which 700,000 euros came as loans and government grants, will also be used to further develop its AI-powered candidate filtering to the platform’s capabilities for more time and money savings.
Job Creation in April Disappoints
U.S. employers added 266,000 jobs in April, falling well short of the 1 million jobs economists were expecting, and the unemployment rate ticked up to 6.1 percent, the first increase of that measure since early in the pandemic, according to the latest employment report from the Bureau of Labor Statistics. The disparity between the data and the expectations for it make it the biggest miss in the report's history and a major setback for the hopes of a speedy labor-market recovery as the COVID-19 crisis subsides. April's job gains are barely enough to keep up with population growth, let alone recover from the pandemic's economic devastation. Adding to the bad news is that the number of jobs added in March was also revised downward by 146,000.
Is $300 enough to say yes to that job?
Restaurant group One Off Hospitality is offering a $300 signing bonus to attract workers for its seven Chicago locations. Ace Handyman Services, in the city’s Avondale neighborhood, is offering a $500 bonus to fill its full-time construction helper position as demand increases for home renovations during the COVID-19 pandemic. Across the Chicago area, companies big and small are facing a labor shortage as people avoid work because of child care responsibilities or health concerns associated with the pandemic, or because they’re making more on unemployment. As a result, short-staffed businesses are beginning to offer monetary incentives to entice workers and retain staff. Major corporations like Amazon and Costco are competing for talent as well and have announced they are raising wages. Some 42% of small-business owners reported having job openings they could not fill in March, according to the latest monthly survey from the National Federation of Independent Business, a Washington, D.C.-based small-business association. The findings are based on 514 respondents surveyed in March.
TAtech Releases Must See Podcast Videos
Nobody’s crystal ball is perfect, but the TAtech – Recruiting Future podcast conference produced five 30-minute videos that no one in the talent acquisition field should overlook. They’re smart. Insightful. And, they explore the future of talent acquisition. Here’s how one viewer described them: “Just finished listening to one of the most insightful and actionable webcasts that I’ve ever attended. An absolute must-listen for anyone in talent acquisition or related industries like recruitment marketing.” And now, you can view the videos from the conference at TAtech.org. You’ll see and hear discussions on The Future of Recruitment Advertising, Recruitment Marketing, Technology and DE&, Recruiting Automation and AI & the Candidate Experience.