Curated Intel from the Talent Tech Industry
August 29-September 4, 2022:
• Giving recruiters a gentle elbow: LinkedIn intros Diversity Nudges to prompt gender balance;
• Leaning into referrals: Aptitude Research finds broad use of both referrals and job boards;
• Keeping up the pace of TA in July: USDOL reports hiring slowed a bit but job postings rose;
• Moving away from full-time hires: Upwork reports more employers turning to freelancers;
• Weakening the hold of big tech stock awards: Slowing economy creates an opening for startups.
• Don’t scattershot your bizdev! Target it with TAtech’s three one-day, one-topic Leadership Summits this fall: Technology & the Candidate Experience (September 28 NYC), Applications of Recruiting AI for Enterprise Employers (October 25 Chicago), and Recruitment Marketing (December 1 Boston). Sponsorships are still available, but going fast so contact TAtech CEO Peter Weddle (firstname.lastname@example.org) right away!
Corporate America is still too male. LinkedIn has a ‘nudge’ that could actually make a difference
LinkedIn’s hiring platform, LinkedIn Recruiter, is rolling out a tool called “Diversity Nudges,” it announced Wednesday, in an effort to even out the gender makeup of an applicant pool. Should the gender representation of a given talent pool be unbalanced, a notification will pop up to alert recruiters or hiring managers of the male-to-female ratio of a search. Recruiters will then receive skill, location, and company filter recommendations they can add to their search to improve the gender balance. “For example, if you’re hiring for an electrical engineer, Diversity Nudges might suggest adding skills such as data analysis, analytical skills, and Simulink to increase the number of women electrical engineers in your candidate search,” LinkedIn wrote in its announcement.
New Research Reveals The Most Effective Talent Sourcing Channel
Aliro, the company transforming hiring through the power of human connection, commissioned Aptitude Research to explore how talent acquisition teams are navigating the struggle to find the qualified talent they need to fill jobs. Amidst tight labor market, the research reveals that 72% of companies are rethinking their sourcing strategies in 2022, and 84% believe employee referrals are the most cost-effective way to find talent. The report, Solving the Sourcing Challenge: Leaning into Referrals to Drive Improved Hiring Outcomes, analyzes data points collected by Aptitude Research in 2022 from over 300 senior talent acquisition professionals. While 93% of companies have continued to increase their investment or spend the same on traditional sourcing channels like job boards and ads, few are measuring ROI or recognizing measurable improvements in hiring outcomes.
Job Openings Rose in July as Hiring Cools Off
The Labor Department on Tuesday said there were a seasonally adjusted 11.2 million job openings in July, up from the previous month’s upwardly revised 11 million. Job openings have remained elevated and above 10 million since the summer of 2021. The number of times workers quit their jobs edged down to 4.2 million in July from the prior month’s 4.3 million. Layoffs and discharges fell slightly to 1.4 million in July from the prior month’s level. Hiring slowed slightly to 6.4 million, down from 6.5 million in June. The jobs market remains strong, but some signs have pointed to slowing momentum as the Federal Reserve raises interest rates to tamp down inflation running near a four-decade high. The average pace of job growth in the first half of the year was slower than in all of 2021, and new applications for unemployment benefits have hovered near the highest point of the year in recent weeks.
The Great Resignation continues, and companies are turning to freelancers to tackle the problem
The Great Resignation is far from over. According to a study of 1,000 hiring managers in the US, 60% are struggling to find quality talent needed to fill open roles, with many now turning to freelance workers to bridge the growing skills gap. According to Upwork's most recent Future Workforce Report, 56% of companies that hire freelance workers hired freelancers at an increased rate within the last year. Companies are seeking out skilled independent workers to fill empty positions to compensate for the ongoing loss of talent, particularly in data science, accounting, and IT departments. Many companies are still feeling the burn of the COVID-19 pandemic and its effect on job trends. The ongoing tendency for workers to quit their jobs in search of better opportunities is persistent, and tech workers have proved particularly difficult to hire. Hiring managers surveyed by Upwork said data science and analytics roles would be the hardest to hire for over the next six months (60%), followed by architecture and engineering (58%), and IT & networking (58%).
As tech giants increase stock compensation to retain talent, can startups take advantage?
Large tech companies including Zillow Group and Amazon are turning up the dial on stock compensation in a bid to reduce churn. There are a bevy of factors incentivizing employers to increase the amount of stock they are providing tech workers, including the ongoing war for talent, the Great Resignation, and a shaky stock market. The recent shifts in compensation structure could be a boon for startups. Even when large companies increase stock awards in the name of retention, the total package offered to employees “no longer takes their breath away,” said Julie Sandler, co-founder and managing director at Pioneer Square Labs. Tech workers are watching the value of their stock-based compensation get dramatically reduced in a short period of time due to the downturn, said Nathaniel Donohue, co-founder of Consilio, a wealth management firm that primarily works with tech workers. “It creates a huge retention problem,” he said. Companies are choosing to grant employees additional stock to offset those losses.
Ready, Aim, Generate Sales!
Don’t scattershot your bizdev! Target it with TAtech’s three one-day, one-topic Leadership Summits this fall: Technology & the Candidate Experience (September 28 NYC), Applications of Recruiting AI for Enterprise Employers (October 25 Chicago), and Recruitment Marketing (December 1 Boston). These unique conferences are specifically designed to promote connections among busy corporate and industry leaders. Each program provides both a deep dive into an important talent acquisition strategy and plenty of time for senior-level peer-to-peer interaction. That makes them the perfect venue for building your brand and generating sales leads. Sponsorships are still available, but going fast so contact TAtech CEO Peter Weddle (email@example.com) right away!