A quote from our Brad Hershbein closes out Lydia DePillis' story in the New York Times about the rise in U.S. hiring.
W.E. Upjohn Institute for Employment Research’s Post
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Economists expect Friday’s employment report to show a gain of 170,000 jobs in December from November. That would equate to a gain of 2.7 million last year, making 2023 the strongest year for job growth since 2014. #employmenttrends #jobmarket
Why Companies Still Aren’t in a Firing Mood
wsj.com
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The Hidden Cost of Undervaluing Talent Ever wondered why your best hires don't stick around? Hiring Manager: "What's your expected salary?" Candidate: "Between 8 lakhs and 10 lakhs per year." Hiring Manager: "What if we can only offer 6 lakhs? You're a great fit, but that's our budget." Candidate: "I can accept 6 lakhs." Hiring Manager: "Excellent! When can you join?" Knowing the actual budget is 10 lakhs, the hiring manager feels they've made a smart move by saving costs. Fast forward six months: the new employee, realizing the pay gap, feels undervalued, disengages, and eventually resigns. The Impact? Increased recruitment costs, disrupted team dynamics, and a significant hit to overall productivity. The Real Lesson: Short-term savings on salaries can lead to long-term expenses. Fair compensation is more than just a number; it's about respect and investing in mutual growth. Organizations that truly understand this create a culture of loyalty and trust, which pays dividends far beyond the initial outlay. The Takeaway: Prioritize fair pay from the start. It’s not just about saving money—it's about valuing people and ensuring sustainable growth for your organization.
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Accomplished Talent Acquisition professional with strong depth in partnering with engineering-centric manufacturing organizations to deliver outstanding new hires.
I'm very much hoping this article isn't something 'new' to everybody, especially those of us in the world of talent acquisition. I've seen organizations that 'roll the dice' and hire folks at a higher rate of pay and foster disparity and I've also seen companies that bend over backwards to ensure internal equity amongst their teams. But, did you know you can pro/con both sides of this coin and realize you're dealing with a double-edged sword? If you pay new hires disproportionately more than legacy employees doing the same/similar role, you can (note I said CAN, not WILL) definitely see your higher performers become less motivated and look to where the grass is greener if the disparity bubbles to the surface. Conversely, if you back your employees and fight for internal equity to ensure there's a fair pay structure, you could be putting desperately needed talent out of reach because they're commanding compensation that would make you toss that precious equity out the window if you hire them. Us recruiters see this on a daily basis and navigating this is never black and white - and the shades of grey can lend interesting complexities during the hiring process. There is no gold star answer here. What I will say is that (in my opinion), it's better to foster equity and bolster your culture vs. rolling the dice and having your employees finding out that pay is 'up for grabs.' Yes, you'll lose out on talent (or, you'll have to flex on how long you're willing to wait until you can make that hire), but having a happier, more transparent culture will serve you better in the long run!
When New Hires Get Paid More, Top Performers Resign First
hbr.org
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At first glance, everything else looked mostly flat, including unemployment (4.1%) and the labor participation rate (62.6%). But beneath the surface, things are getting interesting. As an initial matter, 50% of June’s job gains came from the government, health care and social care. While “jobs are jobs,” it’s worth noting that bellwether sectors—like retail, business and professional services—actually experienced modest declines. At the same time, April and May’s jobs were revised downwards by 111,000, one of the largest downward revisions in recent years. These adjustments are the result of new reporting that affected prior estimates. Compounding this month’s data is recent reporting on workplace trends that we’ve all observed anecdotally. For example, WSJ noted this week that fewer people are quitting … and fewer are getting promoted. Forbes, BBC and NPR have reported extensively on “ghost jobs,” which may represent more than 50% of current listings. And, of course, trends like “quiet quitting,” “quiet vacationing,” “quiet firing” and “stealth layoffs” continue to complicate the hiring outlook for both employers and employees. Like we said, the labor market is weird. But it’s probably also the new normal. Our national teams at TalentZök, Simply Biotech and Defense Search speak with thousands of employers and candidates every week. Based on our conversations, we’re convinced the hiring landscape has changed permanently. Employers who are waiting for things to “get back to normal” might be waiting forever. So, what does this mean for our clients? We recommend you rethink your hiring process from top-to-bottom to remain competitive in this brave new world. Total compensation is important, but it’s equally important to have a recruitment and interview process that reflects the reality of the evolving employment landscape. Practices that were standard just 10 years ago may no longer be appropriate or effective in today’s market. If you need advice or support in this process, please contact us. We’re always happy to help. #simplybiotech #labormarket #employment
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Thanks to Carine Schneider, FGE Nick Hipwell and Jay Foley for a fascinating discussion about pay and equity developments in Silcon Valley and the USA and whether any of those trends are likely to come to our way. Key takeaways: - Challenges in the labour market where there are both layoffs but also talent shortages create challenges in pay and equity grants - Continued pressure to prepare for a recession has led to cost cutting but the USA data shows its impacting international employees more than USA domestic employees - Traditional vesting schedules are starting to change, and getting longer - Job titles are under review, there has been an excessive ‘title’ inflation and skills are the new currency, particularly for pay and equity grants - Median pay for CEO’s (S&P 500) has risen by 18% over last 10 years driven by equity grants and rise in stock market - Carine showed us detailed current data on salary and equity grants. A key trend is that workers based away from HQ are likely to have the same pay levels but equity grants were less than those based at HQ. A good discussion on likely impact of WFH and possible impact on equity grants. Up to date data will be key to keep ahead of competitive comp. A great pop-up event for ProShare. Thank you Murray Tompsett for supporting this. Thanks to Jay Foley and Computershare UK for hosting us. Great to see so many friends Liz Pierson Rasmus Berglund Anika Chandra James Robertson Andrew Ware #employeeshares #employeeshareownership #payequity
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Today, I just want to share a thought that crossed my mind. Usually, I observe that people who have been with the same company for a long time tend to receive lower pay compared to those who have recently joined. Isn't this unfair? It often makes me wonder whether I should remain with one company for an extended period or switch every few years to potentially improve my salary. However, I believe that if I aim to increase my earnings, changing companies might be necessary. Yet, maintaining a stable tenure can contribute positively to my professional image and overall growth. This dilemma is quite unsettling, and I believe many of us grapple with it. So, what should we do, and how should we decide? What are your thoughts?
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This happens time and time again! We urgently need to recruit talent and end up paying that essential person more than existing team members. Well, if you do this, it's your top performers that will leave. What's the solution? An approach to pay that gives across the board pay increases, or pay increases relating solely to merit ratings, will never address this issue. Pay must also consider internal relativities to ensure the 'pattern' of individual pay rates is appropriate. Clear pay frameworks with guiding principles on where people should be on a range are essential pay foundations. But, in my view, one of those guiding principles should always be internal equity. #verditer #pay #internalequity
If you're paying your new hires more than your existing team - your top performers will leave. This the stark reality of this study recently reported in Harvard Business Review. The answer has to lie in sound pay foundations, and regular equity reviews. #verditer
When New Hires Get Paid More, Top Performers Resign First
hbr.org
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The labor market is stabilizing at a level consistent with a sustainable economy, according to Indeed’s North American research director, Nick Bunker. While job openings may be elevated, but both quitting and hiring have plateaued at healthy levels. The labor market has cooled off from its 2021 highs, but demand for workers is no longer declining and the layoff rate also remains historically low. Read the full commentary on the JOLTS report here: https://lnkd.in/enF_uvY4 #Indeed #HiringLab #LaborMarket
September 2023 JOLTS Report: Boring in the Best Way Possible
https://www.hiringlab.org
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Visionary (CEO) at EOS Worldwide | Empowering Businesses with the Entrepreneurial Operating System | Author of People: Dare to Build an Intentional Culture
Since the pandemic, the labor landscape has been as turbulent as the economy. From quiet quitting to mass resignations, the shake-ups have kept coming. Recently, however, job turnover rates have settled quite a bit, and national unemployment rates are between 3% and 4%. You no longer have to snatch up talent before your competitor swoops in. On the contrary, you have the time and luxury to embark on more effective hiring techniques. From my many years of experience working with recruitment and researching my latest book, "People: Dare to Build an Intentional Culture," I recommend a “hire slow, fire fast” process. A slow hiring process can help you gain many advantages as you navigate the labor market’s “next norm.” Here's why: https://lnkd.in/gsRZfd4V -- Found this helpful? ♻️ Share it with your network and tag me, Mark O'Donnell!
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The U.S. economy once again proved the experts wrong in March 2024 by adding 303,000 new roles to the economy while the unemployment rate dipped slightly to 3.8% and the labor force participation rate increased slightly to 62.7%. To put this simply: more jobs keep being created, and more people are entering the labor force to support these roles (and the economy). Click to read Hireology's advice on how your business can stand out from the hiring crowd to attract and hire the people your organization needs to be successful: https://hireolo.gy/3xsMfTX
Hiring Tips Based on the March '24 BLS Jobs Report
https://hireology.com
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