But something interesting happened in the latest job report from the US Department of Labor – total payrolls in the United States grew by 336,000, which came as a surprise to many.

(Just in case you’re wondering – yes, some of those numbers in 2020 are literally off this chart. If you must know, March and April 2020 saw job losses of 1.4 million and 20.5 million respectively, followed by bouncebacks of 2.6, 4.6, 1.4, and 1.7 million for the four months after that ending in August 2020.)

There are many other surprises in store as well. Let’s look at the three metrics, and bring some fresh insights to the table. Ready? Let’s roll!

How we’re looking at data

We’ve adopted two methodologies in how we look at the Hiring Pulse dataset. For Time to Fill and Candidates per Hire, we’re measuring each month using the average of 2019, the last “normal” year, as a baseline index of 100.

For job openings, we’re taking a different route – simply, the average number of job postings per company. This gives us the opportunity to gauge overall recruitment activity and whether that’s going up or down.
Want a more detailed methodology? Jump to the end and check it out.

As always, we look at the worldwide trends for three common SMB hiring metrics:

• Time to Fill (TTF)
• Total Job Openings (JO)
• Candidates per Hire (CPH)

Let’s start analyzing!

Main highlights

The three main highlights for this month’s Hiring Pulse are:

• Candidates Per Hire is still on a meteoric rise
• Job postings are climbing rapidly, with a big chunk of that in small businesses
• The “September Surge” has data to show for it

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important to understand that definition: jobs that are still open as of the end of September are not included in this graph as they don’t yet have an “end date”. Only the jobs that are filled are included here.

Quick clarification, because people are asking: the data in this chart shows the trendline against the 2019 average as an index of 100, not the actual number of days in TTF.

Got that? Good. Let’s have a look at the monthly TTF trend through to the end of September against the average of 2019, based on jobs that have been filled:

At first glance, this looks like another month-over-month (MoM) drop – but look deeper, and you realize that it’s actually inconclusive. A change from 82.9 in August in the TTF metric to 82.6 in September is nothing to write a long letter home about. That’s really just a blip.

We talked a lot about stabilization in this metric in previous months – this shows more of the same. We’ll file this one as a “non-story” for this month at least – if for nothing more than to jump to the real stories in this month’s report.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

As stated above, we’re displaying this as an average of job postings per company in the network. And because this is not contingent on job opened/filled dates like TTF and Candidates per Hire, we can simply look at the raw job open numbers up to the end of September.

Now we are seeing some very interesting things here compared with previous months. Ultimately, the average number of job postings per company is up by a full half-job across the board, from August’s 7.4 to September’s 7.9.

What makes it more compelling is the drop in average job postings for enterprise-level companies (with 200 or more full-time employees) from 17.4 new jobs per company in August to 16.5 in September. That’s nearly an entire job less per company in September – which strikes us as odd because you’d expect the so-called “September Surge” (read on to learn more on that) to affect larger companies that follow a more consistent seasonal rhythm in their processes, including in budgets and employment.

So where is the job growth happening? At the other end of the size spectrum – small businesses (the 1-50 FTE bucket) posted an average of 6.5 jobs in September, up from 5.6 in August. That is a huge number – that’s a 13% growth in the actual employee base for companies that do have 50 employees.

And for companies with 25 employees – also included in this size bucket – bringing in six or seven new employees is going to have a pretty significant impact. It’s hard enough to run a smooth engine with your existing workforce – imagine onboarding and training a whole pack of new hires all at once when your existing teams are already busy doing their thing.

And, again, this is just the average for companies with anywhere from one to 50 employees. Some of these companies may be looking for just one or two new hires in the month, while others are hiring upwards of 15 or 20. And some of those companies may have just five full-time employees and looking to triple in size, while other, larger companies may not be hiring at all.

It’s a lot to unpack, to be sure. Now, let’s look at the CPH metric.

3. Candidates per Hire

Workable defines the number of candidates per hire (CPH) as, succinctly, the number of applicants for a job up to the point of that job being filled. Again, remember, this is a trendline using the 2019 CPH average as a baseline of 100, not the actual number of candidates per hire.

Now that Let’s look at what’s going on here through September:

If there weren’t real people involved in this, we might say this is getting a little bit boring now. Every time we say “We’ve reached a new high!” or “We’re seeing a new normal in hiring!”, our dataset comes back and hits us with… another new high.

This time, the CPH trend has risen again, to 183.4 for September. That’s 83.4% more candidates per job compared with the average of 2019. And that’s 9.5 points up from just two months earlier.

Does this mean more and more people are out of work or returning from extended leave, or turnover is high? No, we won’t go with those theories this time. We actually have tangible insights which you can see in the next section.

Meanwhile, we can tell you that the industries most actively hiring *and* seeing huge CPH numbers are in SaaS, hospital & health care, and media & entertainment.

The sectors not quite seeing as many candidates despite posting a high number of jobs are in retail and consumer services. Great Resignation is perhaps still a reality for retailers.

OK, enough of that – let’s get into the conclusions.

What’s going on here?

September, of course, is traditionally a time to return to school, and also, the end of summer months. It’s ultimately a time for change for many people in our society.

LHH Recruitment Solutions head Laurie Chamberlin said as much. “I feel like September is more of a New Year’s philosophy than New Year’s … September is like back to school, back to work, back to ‘what am I going to do everyday?’ It’s like New Year’s for the workforce and education.”

“September is like back to school, back to work, back to ‘what am I going to do everyday?’ It’s like New Year’s for the workforce and education.”

Zapier recruiting manager Bonnie Dilber tells HuffPost that it’s also to do with the summer slowdown:

“Hiring slows down over the summer due to lots of vacation time for job seekers and candidates ― this makes scheduling tricky and can often lead to lengthier processes,” she says.

September, of course, marks the end of summer, and a “let’s get back to business” mode.

It’s also about budget, Laurie says,

“If there’s funds in their budget, that they’re not going to get the FTE add in 2024, but they have it in 2023, they’re looking to hire. If they’re looking at revenue, and they need [a] head count to make that revenue achievable…they need to onboard those people right now to hit their 2024 goals.”

That, in short, is the “September Surge”. This is the term given to the rise in job and jobseeker activity that traditionally happens in this month. Says Laurie: “I’ve been in the recruiting industry since ’99. And it is very real.”

We see this in our data as well.

This means you’re not only seeing more candidates coming through your hiring pipelines, but more competition in landing those A-list employees. So, you’ll probably want to understand what workers prioritize in a job right now so you can highlight those in your value proposition.

We did the homework for you. We asked 1,250 workers to understand their wants and needs at a high level, and the result is the Great Discontent for 2023. Give it a good read (both the US and UK versions), and incorporate what you’ve learned into your candidate attraction strategy.

Enjoy, and see you next month!

Thoughts, comments, disagreements? Send them to content@workable.com, with “Hiring Pulse” in the subject heading. We’ll share the best feedback in an upcoming report. Watch for our next Hiring Pulse in May!

The Hiring Pulse: Methodology

Because one of the three metrics (Job Openings) is different from the other two metrics (Time to Fill and Candidates per Hire), we’re adopting two very distinct methodologies.

To bring the best insights to small and medium (and enterprise-level) businesses worldwide, here’s what we’re doing with the Job Openings metric: we’re taking the number of job openings in a given month and dividing that by the number of active companies in our dataset, and posting that as an average. For example, if July 2022 shows the average Job Openings per company as 7.7, that simply means each company posted an average of 7.7 jobs that month.

For the Time to Fill and Candidates per Hire metrics, we’re comparing a specific month’s trend against the full average of 2019, and we show the result using that 2019 average as a baseline index of 100. For example, if July 2022 shows an average Time to Fill of 30 days for all jobs, and the monthly average for all of 2019 is 28, we present the result for July 2022 as 107.1 – in other words, 7.1% higher than the average of 2019.

And we chose 2019 as the baseline because, frankly, that’s the last normal year before the pandemic started to present challenges to data analysis among other things.

The majority of the data is sourced from businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

The post Your Hiring Pulse report for October 2023 appeared first on Recruiting Resources: How to Recruit and Hire Better.

This month, we have a look at the three metrics again with this in mind, and bring some fresh insights to the table. Ready? Let’s get started!

How we’re looking at data

We’ve adopted two methodologies in how we look at the Hiring Pulse dataset. For Time to Fill and Candidates per Hire, we’re measuring each month using the average of 2019, the last “normal” year, as a baseline index of 100.

For job openings, we’re taking a different route – simply, the average number of job postings per company. This gives us the opportunity to gauge overall recruitment activity and whether that’s going up or down.
Want a more detailed methodology? Jump to the end and check it out.

As always, we look at the worldwide trends for three common SMB hiring metrics:

• Time to Fill (TTF)
• Total Job Openings (JO)
• Candidates per Hire (CPH)

Let’s start analyzing!

Main highlights

The three main highlights for this month’s Hiring Pulse are:

• We’re in a “new normal” when it comes to Time to Fill and Candidates per Hire
• Technology may be a huge factor in both
• Seasonal and sectoral hiring are potentially impacting job opening trends

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important to understand that definition: jobs that are still open as of the end of August are not included in this graph as they don’t yet have an “end date”. Only the jobs that are filled are included here.

Quick clarification, because people are asking: the data in this chart shows the trendline against the 2019 average as an index of 100, not the actual number of days in TTF.

Got that? Good. Let’s have a look at the monthly TTF trend through to the end of August against the average of 2019, based on jobs that have been filled:

In short: the time it’s taking employers to fill open roles is still at a historically lower point. Sure, it took a relatively dramatic jump from May’s 80.5 to June’s 84.4, but it’s coming down again.

In last month’s Hiring Pulse, we noted how the TTF trend seems to be stabilizing when compared with previous years – this is still happening. What’s interesting is that the stabilization is happening at a much lower level. Cliche alert: this may be the new normal in hiring.

In short, while the undulations of the TTF trend are normal, the actual trend itself is much lower than years past. Two thoughts happening here: first, there are far more candidates than ever before meaning it’s easier to find the ideal candidate for a job.

Second, the added bandwidth due to the deluge of candidates is easier to manage because HR professionals and hiring teams are using software to optimize their processes (yes, that’s a cheap plug for Workable!).

Now, are we seeing the same trend in job openings? Let’s have a look.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

As stated above, we’re displaying this as an average of job postings per company in the network. And because this is not contingent on job opened/filled dates like TTF and Candidates per Hire, we can simply look at the raw job open numbers up to the end of August.

Last month, we pointed out a surprising drop in job postings across all companies from June’s 7.6 to July’s 7.1, which turns out to be anomalous when compared with previous Junes and Julys.

July to August this year is a little different – rising from 7.1 new job postings per company in July to 7.4 in August. In 2022, the change was just an increase of .1 of one job, and in 2021, it was a drop of .2.

But when we look at the size buckets, the differences start to stand out. Companies with 200 or more full-time employees (FTEs) posted 17.4 jobs in August on average, up from July’s 16.9. Small businesses (50 or fewer FTEs) also saw growth – from 5.4 to 5.6.

The big story this time is in the mid-sized businesses (51-200 FTEs). Averages in this size bucket went from 5.0 in July to 5.8 in August – moving it higher than the average for small businesses for the first time since May.

There are two stories here:

First, this jump in general which marks nearly a full new job per mid-sized business in August.

And second, that companies with 51-200 FTEs were hiring less than their smaller cousins for three months in a row from May to July.

Why? One theory is that it’s seasonal. June, July, and August are traditionally big-travel seasons and that puts a lot of pressure on a hospitality sector that’s already struggling to fill gaps in their teams. The triple-whammy of surging tourism numbers after COVID, the Great Resignation (which hit restaurants hard), and of course the traditional tourist season all lead to an increase in demand for short-term workers ahead of time.

Perhaps it’s not so much that medium-sized businesses slowed their hiring – it’s more that small businesses increased theirs. According to BLS, the leisure and hospitality sector has gained an average of 61,000 jobs per month over the prior 12 months ending in August 2023, making it one of the fastest-growing sectors in terms of hiring in the United States. And that sector has many small businesses.

Now, let’s look at the Candidates per Hire trend.

3. Candidates per Hire

Workable defines the number of candidates per hire (CPH) as, succinctly, the number of applicants for a job up to the point of that job being filled. Again, remember, this is a trendline using the 2019 CPH average as a baseline of 100, not the actual number of candidates per hire.

Now that Let’s look at what’s going on here through August:

What we said above about a “new normal in hiring”? This is another example of it. The highest the CPH trend ever reached in our dataset before 2023 was in October 2020, when the index reached 140.3. That was also the only time it had reached more than 140 – in other words, 40% higher than the monthly average for 2019.

Now? It’s gone upwards of 140 for five straight months – and above 170 for the last three months. It’s got to come down to earth at some point once the job market stabilizes, but what interests us is that job openings aren’t coming down at all during the course of 2023. You’d think there would be a direct correlation between fewer job openings and more candidates per jobs – but not here.

This is likely a fallout of the Great Resignation. Many people dumped their jobs over the last couple of years to the tune of more than 4 million quits every single month from June 2021 to December 2022 – and that number is steadily falling throughout 2023 reaching 3.55 million quits for July, the lowest for a single month in the United States since before the pandemic. And in pre-COVID times, 3.5 million quits was pretty normal for a given month.

All these people who left their jobs and not moving on to new ones – some of them launched freelance careers, others started their own business, and others still just took off to a cabin in Maine to live the rest of their lives in solitude. And – we mentioned this last month as well – it’s either not working out so well for them, or they miss the old daily grind and the social life that can come with an interesting day-to-day job. So, back to the job hunt they go.

Combine this with the increase in layoffs this year (482K layoffs from January to July compared with one-third of that in the same period in 2022), and you have a situation where there are many more candidates looking for jobs. Hence, the rise in the CPH trend.

What’s going on here?

Whatever your experience may be in terms of hiring, you’ve got one thing at the top of your mind: find the absolute perfect candidate for the role. Yes, it’s nice to have a growing candidate pool because it means you have the pick of the crop – but is that necessarily the case? Just because you’re now getting 120 applications for a job compared with 80 for the same job last year doesn’t mean you now have 30 ideal candidates this year compared with 20 last year.

When you have a growing pool of candidates, you run the risk of saturation. There’s also desperation – on the side of candidates. There are those who are returning to work after an extended period of time, and there are those quickly trying to land on their feet after losing their job in an unfortunate reorg at their previous company.

We made a side reference to HR technology up there and how it’s helping hiring teams better manage the recruitment pipeline and that’s speeding up the process to a filled job.

Well, technology does cut both ways – candidates also have the benefits of HR technology and now have one-click-apply and resume parsing options when applying for jobs.

Add AI to the mix; candidates can just plug their resume *and* the job description into ChatGPT or Claude and tell it to create the perfect cover letter for that specific job. The AI will even calibrate the resume so it best fits the opportunity.

So, as it becomes easier to go through hundreds of resumes a day, it also becomes harder, because the applications are becoming more plentiful and sophisticated all the time. It reminds one of the old Stephen Wright joke about putting a humidifier and dehumidifier into a room and letting them work it out.

Back to the plot: you want to focus on finding the *right* candidates, not the *most* candidates. That distinction is very important. To attract the *right* candidates, you need to understand what would compel them to apply for a role with your organization.

There are tools to help you out here – including custom application forms and knockout questions  so candidates self-select out of the process, candidate search functionalities, and of course Workable’s AI Recruiter.

And guess what? We already asked 1,250 workers to understand their wants and needs at a high level, and the result is the Great Discontent for 2023. Have a look, and package what you’ve learned into your careers page and your job descriptions – and reap the rewards.

Thoughts, comments, disagreements? Send them to content@workable.com, with “Hiring Pulse” in the subject heading. We’ll share the best feedback in an upcoming report. Watch for our next Hiring Pulse in May!

The Hiring Pulse: Methodology

Because one of the three metrics (Job Openings) is different from the other two metrics (Time to Fill and Candidates per Hire), we’re adopting two very distinct methodologies.

To bring the best insights to small and medium (and enterprise-level) businesses worldwide, here’s what we’re doing with the Job Openings metric: we’re taking the number of job openings in a given month and dividing that by the number of active companies in our dataset, and posting that as an average. For example, if July 2022 shows the average Job Openings per company as 7.7, that simply means each company posted an average of 7.7 jobs that month.

For the Time to Fill and Candidates per Hire metrics, we’re comparing a specific month’s trend against the full average of 2019, and we show the result using that 2019 average as a baseline index of 100. For example, if July 2022 shows an average Time to Fill of 30 days for all jobs, and the monthly average for all of 2019 is 28, we present the result for July 2022 as 107.1 – in other words, 7.1% higher than the average of 2019.

And we chose 2019 as the baseline because, frankly, that’s the last normal year before the pandemic started to present challenges to data analysis among other things.

The majority of the data is sourced from businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

The post Your Hiring Pulse report for September 2023 appeared first on Recruiting Resources: How to Recruit and Hire Better.

Let’s have a look.

How we’re looking at data

We’ve adopted two methodologies in how we look at the Hiring Pulse dataset. For Time to Fill and Candidates per Hire, we’re measuring each month using the average of 2019, the last “normal” year, as a baseline index of 100.

For job openings, we’re taking a different route – simply, the average number of job postings per company. This gives us the opportunity to gauge overall recruitment activity and whether that’s going up or down.
Want a more detailed methodology? Jump to the end and check it out.

As always, we look at the worldwide trends for three common SMB hiring metrics:

• Time to Fill (TTF)
• Total Job Openings (JO) 
• Candidates per Hire (CPH)

Let’s start analyzing!

Main highlights

The three main highlights for this month’s Hiring Pulse are:

• Job activity is taking a bit of a dip – one half job less on average per company in July compared with June
• Candidates per Hire is still at a very, very high level
• Time to Fill is more stable than it normally is over a longer period

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important to understand that definition: jobs that are still open as of the end of June are not included in this graph as they don’t yet have an “end date”. Only the jobs that are filled are included here.

Quick clarification, because people are asking: the data in this chart shows the trendline against the 2019 average as an index of 100, not the actual number of days in TTF.

Got that? Good. Let’s have a look at the monthly TTF trend through to the end of July against the average of 2019, based on jobs that have been filled:

We want to have a story here, but there’s not much to tell. Ultimately, July’s TTF trend sits at 82.6, which basically marks the fifth consecutive month of relative stability where it hits 84.3 at its highest point and 81.2 at its lowest point.

But you deserve an insight here, so here’s one: looking at last year, we see the same trend where the TTF trend hovered between a high of 93.2 and a low of 90.8 over an eight-month stretch from February to September 2022 before finally dropping to the higher 80s for the rest of the year.

These two time brackets are actually the most stable the TTF trend has been in our dataset dating back to the start of 2020 – apart from a few three-month stretches here and there, it’s been a regularly undulating trend month-to-month over the past three and a half years.

Let’s move on to Job Openings now.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

As stated above, we’re displaying this as an average of job postings per company in the network. And because this is not contingent on job opened/filled dates like TTF and Candidates per Hire, we can simply look at the raw job open numbers up to the end of July.

The big takeaway this time is the drop in job activity from June to July this year, where average job postings across all companies fell from 7.6 to 7.1. At first glance, this may not mean much considering the regular ups and downs in job postings over the last few years, but what makes it significant is when we look at the June-July shifts in previous years.

As it happens, 2019 and 2020 saw nice bumps in job postings in the Workable network – increasing 0.5 in 2019 and 0.6 in 2020 from June to July. In 2021 and 2022, there was literally zero change from June to July in the trend – the average remained absolutely stable.

So, in this context, we now see how a drop of half a job in the job opening average from one month to the next is significant at this point in the year. And we see this happening across the board regardless of the company size bucket.

Now, let’s look at the Candidates per Hire trend.

3. Candidates per Hire

Workable defines the number of candidates per hire (CPH) as, succinctly, the number of applicants for a job up to the point of that job being filled. Again, remember, this is a trendline using the 2019 CPH average as a baseline of 100, not the actual number of candidates per hire.

Now that Let’s look at what’s going on here through July:

The Candidates per Hire trend has been a focal point of the last few months because of how much it’s increased since January.

While not an increase this time – and actually a decrease from June’s all-time high of 176.6 – July’s 169.2 is still right up there in the rarefied atmosphere as the second-highest monthly trend in the history of Workable’s network data.

Except it’s starting to feel like it’s not such a rare place to be – and rather, it’s normal. When you have the last four months (158.5, 140.3, and now 176.6 and 169.2) standing so much higher than anything preceding it, then you have to wonder: will this trend continue as is? Will it keep trending up? Will it fall back down to a previous baseline?

The problem we have here is that, unlike in the other two metrics we regularly track in the Hiring Pulse, we have nothing in the past to compare this recent surge in Candidates per Hire. Let’s call it what it is: a surge. Let’s watch this space and see if we can answer the questions above.

What’s going on here?

Job openings are taking a bit of a dip. Candidates per hire are also taking a very, very small dip but still at a remarkably high point. In last month’s Hiring Pulse, we noted how both job openings and CPH were on the rise and that this indicated a crazy busy time in the hiring landscape – especially for small businesses with low-bandwidth hiring teams.

Now, it’s still busy. The job openings may be taking a small dip, but companies who announce a new opening in their company will still get inundated with candidates. Consider this: let’s say you got 100 candidates for a job opening at your company at this time last year. Now, for that same job, you’d get 178 candidates according to our data.

That, right there, is the biggest difference and that’s the way it’s been going for months. We’ve bounced all kinds of hypotheses around on this topic, and we’ll bring in a new one: remember the Great Resignation? Quit rates are still relatively high – but they’ve come down quite a bit from the times when we saw more than four million job quits per month in the United States for 19 successive months from June 2021 to December 2022.

In the six months on record in 2023, it’s gone above four million just once, in May – although it did come close in February with 3.98 million quits.

For June 2023, that number has dipped to 3.772 million quits – the lowest it’s been since March 2021.

Now, our theory: when candidate numbers were coming down and quits going up, no one was able to come to a clear consensus on where these people were going if they weren’t going to new jobs. We’ve speculated in the past that they either moved to freelance and contract work, started their own businesses, took on sabbaticals, or something else that wasn’t readily trackable.

It’s possible that those workers who dropped out are returning (or trying to return) to the full-time fold. They’ve tried out the life of Riley and either decided it was time to return or it just didn’t work out the way they hoped it would. Couple that with the increase in layoffs, and you have an abundance of new candidates applying to open roles.

That’s your food for thought for August. See you next month!

Thoughts, comments, disagreements? Send them to content@workable.com, with “Hiring Pulse” in the subject heading. We’ll share the best feedback in an upcoming report. Watch for our next Hiring Pulse in May!

The Hiring Pulse: Methodology

Because one of the three metrics (Job Openings) is different from the other two metrics (Time to Fill and Candidates per Hire), we’re adopting two very distinct methodologies.

To bring the best insights to small and medium (and enterprise-level) businesses worldwide, here’s what we’re doing with the Job Openings metric: we’re taking the number of job openings in a given month and dividing that by the number of active companies in our dataset, and posting that as an average. For example, if July 2022 shows the average Job Openings per company as 7.7, that simply means each company posted an average of 7.7 jobs that month.

For the Time to Fill and Candidates per Hire metrics, we’re comparing a specific month’s trend against the full average of 2019, and we show the result using that 2019 average as a baseline index of 100. For example, if July 2022 shows an average Time to Fill of 30 days for all jobs, and the monthly average for all of 2019 is 28, we present the result for July 2022 as 107.1 – in other words, 7.1% higher than the average of 2019.

And we chose 2019 as the baseline because, frankly, that’s the last normal year before the pandemic started to present challenges to data analysis among other things.

The majority of the data is sourced from businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

The post Your Hiring Pulse report for August 2023 appeared first on Recruiting Resources: How to Recruit and Hire Better.

Specifically, 92% of these HR professionals planned to expand their use of AI in at least one related area, including improvement in performance management, payroll processing and benefits administration, recruitment and hiring, onboarding new employees, and employee records management.

And within the next 12 to 18 months, the majority of HR leaders surveyed were planning to substantially increase their utilization of AI.

Within the next 12 to 18 months, the majority of HR leaders surveyed plan to substantially increase their utilization of AI.

The perils of AI tools in HR

The increasing adoption of AI-based tools in human resource management has been a game-changer for HR practitioners, providing transformative tools and solutions to enhance efficiency and improve effectiveness of decision-making.

For example, intelligent automation of mundane and repetitive tasks has enabled HR professionals to focus on more strategic and value-added activities. Moreover, AI has the potential to revolutionize recruitment processes and expand candidates pool by analyzing large volumes of resumes.

However, as with any powerful technology, AI-based solutions should be applied in a responsible way for HR management. There have been numerous examples that uncover biases and inadvertent discrimination of AI-based solutions against fractions of applicants, as a result of faulty databases and incorrect programming.

Related: Ethical AI: guidelines and best practices for HR pros

What can you do?

Companies need to implement AI-based solutions in an ethically and transparent way to address concerns regarding privacy, fairness, and potential bias, ensuring the system does not perpetuate biases or discriminate against certain individuals or groups.

For example, companies will need to carefully select training data and establish regular monitoring of AI algorithms to identify and correct any biases that may arise.

Additionally, transparency and accountability are paramount in AI-enabled HR management, as employees should have access to information about how their data is being collected, used, and protected.

Employers must also prioritize the security and privacy of employee data to mitigate potential risks.

Related: Avoid unintended bias: learn to navigate EEOC in AI and hiring

Legal considerations growing

The European Union has recently approved the AI Act draft legislation, a comprehensive framework aimed at ensuring the responsible and ethical implementation of AI across various industries. According to the AI Act, high-risk AI systems must undergo a thorough conformity assessment procedure before they can be introduced to the market or used within the EU.

To ensure compliance, providers are required to establish, implement, document, and maintain rigorous risk management systems throughout the lifespan of the AI system.

To ensure compliance, providers are required to establish, implement, document, and maintain rigorous risk management systems throughout the lifespan of the AI system.

It is essential to meet stringent requirements to ensure the safe placement of high-risk AI systems on the market. This involves the implementation of robust risk assessment and mitigation systems, coupled with the use of high-quality data sets to avoid any potential discriminatory outcomes.

Clear documentation of the AI system’s purpose, along with detailed user instructions, must be provided to the regulatory authority. An extensive record-keeping system is necessary to promptly identify and address any abnormal results.

Human oversight still paramount

The presence of human oversight is crucial to oversee the system’s operations and deactivate it if necessary. Importantly, the accuracy, robustness, and cybersecurity of the system should meet the appropriate standards.

While technology itself may possess certain capabilities and potentials, it is ultimately the people who wield and utilize these tools that determine their true impact.

HR executives and leadership teams have the power to shape the way technology is used, and their choices and actions can greatly influence its consequences.

It’s not what you do – it’s how

It is crucial to recognize that the real danger lies not in technology itself, but rather in how people choose to employ it. Without responsible and ethical usage, the potential benefits of technology can be overshadowed by its negative implications.

So, understanding the role of individuals in determining the impact of technology is crucial in fostering a harmonious and beneficial relationship between people and the tools they use. Learning and education plays a crucial role in ensuring individuals understand how to navigate emerging technology solutions safely and responsibly.

HR leadership must focus on commitments to values, ensuring the application of AI-based solutions are not undermining the critical human aspect in business.

Find that tech-human sweet spot

Finding the right balance between technology and the human touch is crucial in harnessing the potential of AI for empathetic employee relations in HR. While AI can enhance efficiency and accuracy in various HR processes, it is important to remember that empathy and emotional intelligence are inherent human qualities that cannot be replicated by technology.

HR practitioners and companies must use AI as a tool to support and augment their efforts in creating a more empathetic and human-centric work environment.

By incorporating AI in a thoughtful and strategic manner, organizations can streamline administrative tasks, allowing HR professionals to focus more on building meaningful connections with employees and addressing their individual needs.

Ultimately, the successful implementation of AI in HR hinges upon understanding when and how to leverage technology while preserving the fundamentals of human interaction and empathy in employee relations.

The post The power of AI: with great AI comes great responsibility appeared first on Recruiting Resources: How to Recruit and Hire Better.

A significant shift is the surge in demand for virtual assistant services. With an increase of internet users of more than 257 million from 2020 and 2021, it’s believed that the virtual assistant market will reach $25.6 billion by 2025. This exponential growth underlines its monumental importance in reshaping the future for HR teams globally.

What is a Virtual Assistant?

A virtual assistant (VA) can be an invaluable asset to your HR team, providing administration, technical or creative support remotely.

The concept was initially born out of necessity for entrepreneurs and small business owners who needed help with certain tasks but didn’t have the resources or funds for a full-time employee.

Organizations can expect to save as much as 78% in operating costs from outsourcing tasks to a VA instead of hiring a traditional in-house employee.

Their popularity has since skyrocketed with larger and multinational companies now recognizing their extensive value.

A VA isn’t confined to just simple tasks, they can handle everything from:

• Calendar management
• Email correspondence
• Social media marketing
• Customer service
• Market research
• Bookkeeping
• Sales support
• Administrative support
• Website management
• Personal tasks

There are also no geographical restrictions, as they can provide personalized assistance from any location.

Gone are the days when VA’s were merely seen as ‘remote employees’. They now play a vital role in contributing towards business growth and their team’s operational efficiency.

Whether they’re working for a start-up or a large corporation, businesses across the spectrum are reaping the benefits of this flexible and cost-effective resource.

The surge in demand for virtual assistants

According to Statista, between 2020 and 2025, the IT outsourcing industry will have an annual growth rate of 4.5%, with the most in-demand type being social media management.

The recent surge in demand is largely attributed to the need for flexibility and cost-saving measures, with the global pandemic accelerating the shift towards remote working and the downsizing of physical offices.

VA’s provide a seamless integration into this new way of working, especially in HR teams that have had to downsize teams but require these valuable resources. Thanks to the wide variety of tasks that virtual assistants can handle, this enables those smaller in-house teams to focus more on strategic revenue-generating activities.

This not only helps to reduce staffing costs but also improves the overall productivity and growth of the business.

Why you should consider a virtual assistant for your HR team

As an HR professional, you’re always seeking ways to optimize your team’s efficiency and productivity. Enter the world of Virtual Assistants (VAs). If you’re contemplating augmenting your support staff, here are some compelling reasons why VAs could be your best bet:

1. Time-saving powerhouse: They will handle routine tasks, freeing your team to focus on strategic initiatives and core business activities.
2. Cost-effective: More affordable than a full-time employee. You pay for hours worked, with zero overheads like office space, equipment, or benefits.
3. Round-the-clock support: If you decide to hire virtual assistants in different time zones, you can enjoy round-the-clock support, ensuring tasks are completed promptly and customer inquiries are answered swiftly.
4. Flexible hiring: Depending on your needs, hire VAs hourly, part-time, or full-time.
5. Productivity booster: By managing administrative tasks, they enable your team to concentrate on high-value activities that drive growth, enhancing overall productivity.
6. Diverse skills access: VAs come equipped with a wide array of skills, from administrative to technical to creative, offering you a pool of expertise to tap into as needed.
7. Scalability: As your business expands, simply increase the hours or tasks assigned to your VA, no need for hiring additional full-time employees.
8. Work-life balance: By taking on some of your tasks, VAs help business owners and managers achieve a healthier work-life balance.
9. Stress reduction: Outsourcing and delegating tasks can significantly reduce stress and prevent burnout in the workplace.
10. Streamlined operations: VAs can help streamline business operations, enhancing efficiency and effectiveness.

It’s clear that VAs offer a wealth of benefits. It’s time to consider integrating them into your HR strategy.

The future of virtual assistants

As the remote work model becomes increasingly popular, the demand for virtual assistants is expected to rise even further all over the world. According to industry statistics, there are more than two million freelancers in the UK currently, a figure expected to rise annually as more individuals take the leap.

This trend isn’t slowing down and as HR professionals, you should be staying ahead of the curve and leveraging the power of using a virtual assistant to maintain your organization’s agility and efficiency in the evolving workplace landscape.

HR virtual assistants: your workplace future?

This surge in demand has disrupted the traditional workplace model and is proving to be an excellent way for businesses to optimize their workflow efficiency. As more industries continue to adopt a digital approach, the need for VA’s will continue to rise.

HR professionals must understand the impact of this trend on the job and create policies that enable organizations to work with virtual assistants flexibly.

Embracing virtual assistants is the way forward and a great opportunity to streamline businesses’ productivity while saving on costs.

The post The HR virtual assistant boom: a deep dive into the surge appeared first on Recruiting Resources: How to Recruit and Hire Better.

Well, this month, we have some eye-opening data for you that blows some of that out of the water. Let’s get into it.

How we’re looking at data

We’ve adopted two methodologies in how we look at the Hiring Pulse dataset. For Time to Fill and Candidates per Hire, we’re measuring each month using the average of 2019, the last “normal” year, as a baseline index of 100.

For job openings, we’re taking a different route – simply, the average number of job postings per company. This gives us the opportunity to gauge overall recruitment activity and whether that’s going up or down.
Want a more detailed methodology? Jump to the end and check it out.

As always, we look at the worldwide trends for three common SMB hiring metrics:

• Time to Fill (TTF)
• Total Job Openings (JO) 
• Candidates per Hire (CPH)

Let’s start analyzing!

Main highlights

The three main highlights for this month’s Hiring Pulse are:

• Job activity is back to high levels – especially for the largest and smallest companies
• Candidates Per Hire is at a whole new level
• The Time to Fill metric is the only one that’s relatively normal

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important to understand that definition: jobs that are still open as of the end of June are not included in this graph as they don’t yet have an “end date”. Only the jobs that are filled are included here.

Quick clarification, because people are asking: the data in this chart shows the trendline against the 2019 average as an index of 100, not the actual number of days in TTF.

Got that? Good. Let’s have a look at the monthly TTF trend through to the end of June against the average of 2019, based on jobs that have been filled:

Last month, we pointed to relative stabilization in the Time to Fill trend especially compared with the steep drop seen in the first quarter of 2023.

Q2 tells a somewhat different story – April saw an uptick to 83.3 from March’s 81.9, with that trend dropping to 80.8 for May. And now, in June, it’s risen again to 84.

The question is: how anomalous is this? The answer: not unusual at all. Look at how 2021, 2022, and 2023 compare in the same chart:

With some minor outliers, these all follow a relatively similar trend – a steep drop-off from January to March followed by relative stabilization and a mild uptick to June.

The only thing that’s clearly different is that the Time to Fill trend is lower this year than in previous years. Jobs are getting filled quicker than before.

We’ve gone into a multitude of reasons and theories as to why – but for this month, let’s get to Job Openings and then, especially, to Candidates Per Hire which is where the real story is (yes, again).

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

As stated above, we’re displaying this as an average of job postings per company in the network. And because this is not contingent on job opened/filled dates like TTF and Candidates per Hire, we can simply look at the raw job open numbers up to the end of June.

Again, we see a bump in job activity, this being the second straight increase from the previous month from 7 new job postings per company across the board in May to 7.6 for June.

We’ve been at 7.6 before, in March, but what’s worth noting is that in the 18 months since January 2022, we’ve seen the average number of job postings per company go higher than 7 just four times, and three of those happened in the last four months.

There’s been a lot of talk (including in the Hiring Pulse reports) about recessions and AI impacting jobs. We’re surmising here that the impact is more in how jobs are changing rather than dwindling. New gaps and opportunities are being discovered, and new jobs are created as a result.

Now, look at the company sizes that are seeing the biggest jump in job activity. First, the big kids on the block (enterprise-level, 200+ full-time employees) are opening up more jobs over the last two months than the previous month before that – from 16.6 job postings per company in April to 17.5 in May, then 18.2 in June. If you look at 2022, you’ll see that job activity for that size bucket was higher although declining, while this year, it’s lower but rising.

Now, let’s look at the small kids on the block (>50 FTEs): they’re up to 5.8 jobs per company in June from 4.9 in May. That’s an increase of nearly one full new job posting per small business on average within a month.

We did a bit of math last month and let’s do it again: let’s say an average company in this size bucket has 30 full-time employees.

When you see the average of 4.9 new job postings for May, that’s more than 16% of that company’s entire workforce, or one in seven.

And 5.8 is 19.3% of that entire company’s workforce – nearly one in five.

Think about your own company, if you’re in a smaller one. Look at the people around you (or look at the faces on your laptop screen, if you’re working remotely). Imagine one in five of those people being new within the last month, or that you’re seeing one in five of those people leaving. That’s not an insignificant number for a small business. Hiring is very active in this bucket.

Now, let’s look at the candidates. Yes, we promised a good story, and you’re getting it now.

3. Candidates per Hire

Workable defines the number of candidates per hire (CPH) as, succinctly, the number of applicants for a job up to the point of that job being filled. Again, remember, this is a trendline using the 2019 CPH average as a baseline of 100, not the actual number of candidates per hire.

Now that Let’s look at what’s going on here through June:

We didn’t think this was going to happen, but there it is – the Candidates Per Hire trend has just surged. The CPH trend is now at 176.7 for June 2023 (or 76.7% more candidates per hire than the average of 2019).

It’s absolutely at its highest point in, like, ever. To further demonstrate how high this is, let’s compare June’s CPH using 2020, 2021, and 2022 as benchmark averages:

In short: where candidates per hire for June 2023 is 76.7% higher than the average of 2019, it’s 50.2% higher than the 2020 average, 67.4% higher than the 2021 average, and 70.3% higher than the 2022 average. No question about it – June is very, very high no matter what year you compare it against.

We’ve talked aplenty about the many different reasons why, and we encourage you to go to previous Hiring Pulses to better understand this trend. Right here, we’re just going to recognize that if you’re getting slammed with candidates every time you open up a new job, you’re absolutely not alone.

What’s going on here?

Job openings are up, quite significantly, especially for small businesses. And the CPH trend is, of course, at previously unseen levels. Last month, we noted the drop in new job postings and the rise in CPH and wondered if the two were related.

In this case, we’re seeing a significant rise in both. The hiring landscape is just so very, very busy. There are just so many candidates for a single job – it’s like opening a leak in a dam and having the water just come rushing through.

When a lot of that activity is happening in smaller companies with fewer than 50 employees, you can imagine the stress on those hiring teams – smaller businesses don’t have the luxury of a full HR team that can dedicate themselves to the job.

An executive in a small business can often be the hiring manager for a job – and may even themselves be the recruiter, the background checker, the assessor, the evaluator, and more.

And doing this across the company for multiple jobs (remember, nearly one in five employees per small business as we stated above) while at the same time trying to run a business – it can be a lot to pack into a day. That’s where software (cough cough) can be pretty helpful.

See you next month!

Thoughts, comments, disagreements? Send them to content@workable.com, with “Hiring Pulse” in the subject heading. We’ll share the best feedback in an upcoming report. Watch for our next Hiring Pulse in May!

The Hiring Pulse: Methodology

Because one of the three metrics (Job Openings) is different from the other two metrics (Time to Fill and Candidates per Hire), we’re adopting two very distinct methodologies.

To bring the best insights to small and medium (and enterprise-level) businesses worldwide, here’s what we’re doing with the Job Openings metric: we’re taking the number of job openings in a given month and dividing that by the number of active companies in our dataset, and posting that as an average. For example, if July 2022 shows the average Job Openings per company as 7.7, that simply means each company posted an average of 7.7 jobs that month.

For the Time to Fill and Candidates per Hire metrics, we’re comparing a specific month’s trend against the full average of 2019, and we show the result using that 2019 average as a baseline index of 100. For example, if July 2022 shows an average Time to Fill of 30 days for all jobs, and the monthly average for all of 2019 is 28, we present the result for July 2022 as 107.1 – in other words, 7.1% higher than the average of 2019.

And we chose 2019 as the baseline because, frankly, that’s the last normal year before the pandemic started to present challenges to data analysis among other things.

The majority of the data is sourced from businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

The post Your Hiring Pulse report for July 2023 appeared first on Recruiting Resources: How to Recruit and Hire Better.

Sharing their insights and expertise in the webinar were:

• Max Wesman, VP of Product, Checkr
• TJ Davis, Head of People Operations, BambooHR
• Rob Long, CHRO, Workable
• Trevor Schueren, Product Partner Manager, Workable

The focus of the hour-long webinar was to share insights and expertise on how to build the perfect tech stack to meet the needs of HR teams.

Strapped for time? We’ve pulled together the top seven takeaways for you:

1. Know your needs before buying

Understand your processes first before procuring new technology for your HR tech stack. Map out your current workflows to identify pain points and areas for improvement. Then look for solutions that can address those needs.

“Really take the time. If we’re talking about onboarding, map out your onboarding process. And when I say map out, [I mean] what’s every single touch point that’s going on in your onboarding process? Is it manual? Is it automated? Is it one of those critical touch points that’s really about the employee experience that you need to nail?” – TJ Davis, Head of People Operations, BambooHR

“When you think about optimization, one of the key points I would say is don’t confuse your technology solution for your process.” – TJ Davis, Head of People Operations, BambooHR

2. Prioritize ease of adoption

Ease of use and user adoption are key. Look for tools that are intuitive and easy to implement so that hiring managers and others will actually use them.

“If adoption across your company of your recruitment technology is important, if getting hiring managers involved in hiring, [and] if getting interviewers involved with the tool is important, then work will tend to be a very strong option there.” – Rob Long, CHRO, Workable

“I think of that very much from our user’s point of view, which is HR people, hiring managers. But I think then [about] the ease of use on the candidate side, which we often call candidate experience; it’s so important as well.” – TJ Davis, Head of People Operations, BambooHR

3. Understand your compliance needs

Compliance and regulation requirements may determine some of your tech needs. Industries like healthcare, for example, require background checks, so that would need to be part of your stack.

“We work with certain customers that are in very compliance-heavy industries like healthcare, and so they don’t have a choice when they’re hiring someone new. They have to run a background check, and that has to be part of getting off the ground.” – Max Wesman, VP of Product, Checkr

4. Nail down what you need right now

Core HR tools like an ATS, HCM, background check, and payroll system will meet most companies’ basic needs as they scale to 100-200 employees. After that, you can consider more targeted solutions.

“I think when we think about the core, what do most companies have by the time they’re a hundred employees? Typically most of them are gonna have an HRIS. They’re gonna have an an ATS. They’ll have their background check provider. They’ve got their payroll set up, they’ve got a benefits provider maybe on a platform or a broker.”

“It depends on different things that different people need.” – TJ Davis, Head of People Operations, Bamboo HR

5. Integrations are uber-important

Integrations between tools in your HR tech stack are important, especially if you have a small team. Look for turnkey integrations that transfer data automatically without requiring technical resources to build and maintain them.

“If it’s not an out-of-the-box integration like the one between Workable, Checkr and Bamboo, do you really have the resources internally or the time yourself to try and go and connect an API with a third-party tool? Or will you get support if you have a tech team internally or an IT team to go and build that out?” – Rob Long, CHRO, Workable

6. Look at scaling capabilities

Consider both your current and future needs. Choose tools that can scale with your business but also meet your most pressing needs today. Don’t buy for what you might need in five years at the expense of solving today’s problems.

“Early on in the life cycle of a business, it’s important to find the right partners and ones that can grow with you that have flexibility.” – Max Wesman, VP of Product, Checkr

7. Get recommendations

Get recommendations from peers but evaluate tools for your own needs. While peer advice is helpful, make sure any solutions align with your company’s specific goals, priorities, and pain points.

“Those referrals are a great, great way of creating that initial list of what we want to look at, but do really make sure that they’re a good fit for your business and what you are trying to do right now as well.” – Rob Long, CHRO, Workable

The post The perfect HR tech stack: seven takeaways from a webinar appeared first on Recruiting Resources: How to Recruit and Hire Better.

Using conversational AI in recruiting can help us be better recruiters in everything from sourcing the best talent to drafting engaging job descriptions.

As with anything, integrating AI into recruiting workflows is not without its challenges – particularly in training and onboarding your recruiting team to use it.

Many professionals in the recruiting industry either misunderstand what ChatGPT does and how it can help them get more done and be better at their jobs. Some are afraid – not without reason – that incorporating AI tools in recruiting may remove the human element and dehumanize the recruiting process, or even replace their jobs.

It’s important to remember that ChatGPT is a tool – it’s not here to replace our jobs but to help us be better at them. It’s designed to augment and enhance human ingenuity and innovation, by freeing up time from routine and administrative tasks and freeing up more time for more strategic, higher-value decision-making.

We’ll help you clear up the misunderstanding around these myths and serve as a strategic guide on how to train recruiters to use ChatGPT in recruitment and navigate potential challenges that may arise in the process.

Training teams to use ChatGPT in recruitment

Imagine having your very own HR virtual assistant who never gets tired, does exactly what you ask of them, is available 24/7 a day year-round, is at all times eager and willing to help, and incorporates any feedback you give them as you go.

That’s the benefit of using ChatGPT in your recruiting process. However, as with all tools, there’s a right way and a wrong way to use it effectively. Incorporating ChatGPT into your recruiting workflows will take an initial period of training and onboarding as your team adjusts to the technology.

Introduction to ChatGPT

To best get your recruiting team up to speed, we recommend hosting interactive sessions that showcase ChatGPT’s potential use cases and abilities in action.

You can use either pre-recorded videos or a live demo, walking through the ChatGPT AI and showing your team example prompts and scenarios of using it for recruiting purposes like creating job descriptions and sourcing candidates. This will give your recruiting team ideas on how they can use it for themselves.

This initial step helps your team see for themselves how ChatGPT can save them time and save more time and energy on more important decision-making.

Remember, familiarity with ChatGPT doesn’t happen overnight. The goal at this stage is to get your recruiting team curious about ChatGPT and show them the possibilities of what it can do for them.

It’s best to learn on the job

A big part of the process of becoming proficient in ChatGPT and other AI tools is in hands-on experience – experimenting and trying different things to test its limits and get a sense of what it can and can’t do.

Organizing practical training sessions is a great way to facilitate this process. Your recruiters can interact directly with ChatGPT and practice doing things like crafting job descriptions, generating interview questions, playing around with different prompts, and seeing how the language model responds.

This will not only help your recruiters get more comfortable with ChatGPT, but it will also help them learn how they can adapt it to their needs. They’ll see through first-hand experience how it can help them in their day-to-day jobs.

Templates are all well and good, but the best results from ChatGPT often come as a result of you playing around with it and exploring what it can do. Your recruiters can benefit more from your training sessions and onboarding with practical examples.

Let’s look at a few examples of use cases of ChatGPT in recruitment:

1. Creating interview questions

From a pre-made job description, ChatGPT can help create relevant interview questions that you can tailor to fit the role and the company. It may surprise you with what it comes up with.

Be specific, relevant, and detailed in your prompts, and give ChatGPT as much context as is needed. Mention things such as the job title, several job requirements, and anything else specific to the role.

Example prompt: “Generate interview questions for a software developer with a focus on Python and machine learning.”

You can also ask it to tweak and modify its response to suit your needs, such as including more questions or fewer.

Example Prompt: “Let’s narrow it down to 10”

You can even have it generate practical exercises for the interview.

Example Prompt: “What’s an example practical exercise you might give to someone in this position? This can be an assignment that takes a few hours to complete and is due the following day.’

2. Writing Boolean search strings

Give ChatGPT the requirements and preferred experiments for a job, and it can help you create search strings to help source candidates.

Example prompt: “Create a Boolean search string for a nurse with pediatric experience in New York. The candidate must have 3 years relevant experience in a clinical setting and be based in New York.”

Remember that potential candidates may phrase their job experience differently, so play around with different variations.

3. Integrating ChatGPT into workflows

You can also show your recruiters how to build ChatGPT into their recruitment workflows alongside the other tools and software their familiar with. Show them ways they can use it, such as:

Integrating with your Applicant Tracking System (ATS): Asking ChatGPT to draft email communication with job candidates through their ATS. Example prompt: “Create a follow-up email for a candidate who interviewed for the software engineer position last week.”

Interview scheduling: If you use a digital calendar tool for scheduling, your team can ask ChatGPT to craft an appropriate interview invitation. Example prompt: “Write an invitation for a second-round interview for a sales representative role.”

Candidate feedback: After the interview, recruiters can use ChatGPT to deliver personalized feedback. Example prompt: “Draft a polite rejection email for a candidate who was not selected for the marketing executive position.”

These are just a few examples. ChatGPT is extremely flexible and versatile and can be used right alongside a variety of tools like ATS or CRM systems.

4. Running mock scenarios

Hosting practice sessions and exercises with ChatGPT is a great way to help your recruiting team build confidence with ChatGPT, to make sure they understand how it works and how they can use it in their job. Here are some scenarios you can simulate:

Candidate screening: Give your recruiters a fictional resume, and have them generate potential interview questions using ChatGPT based on the resume. Example prompt: “Generate interview questions for a candidate applying for a project management role with experience in agile methodologies.”

Candidate sourcing scenario: Have your recruiting team create a Boolean search string given a hypothetical job role and a list of required qualifications and skills. Example prompt: “Create a Boolean search string for a data analyst role requiring Python, SQL, and knowledge of machine learning techniques.”

Candidate outreach scenario: Ask your recruiters to practice reaching out to a potential candidate, using ChatGPT’s help. For example, a prompt they might use is: “Draft a candidate outreach email for a senior graphic designer position”

These are just a few examples. The goal is to provide realistic advice and help them understand the range of tasks ChatGPT can help with.

Provide ongoing learning and support

Advancements in AI technology happen parabolically. Hardly a week goes by when we don’t hear about how ChatGPT is poised to revolutionize a given industry or make another one obsolete. It’s still new, exciting, and scary territory, and people are still unsure about whether it’s a good or bad thing.

Staying ahead of the curve as AI continues to develop means providing your team with ongoing support, such as:

Provide regular training sessions: Organize regular training sessions as ChatGPT and the other AI tools you use to build and update new features or improvements. This way, recruiters are always knowledgeable about the latest developments and can use the tool to its full potential.

Create a resource hub: Consider creating a repository of knowledge and resources where your team can access ChatGPT prompt templates, guides, videos, and example use cases. This can be a collaborative Google doc that your team adds to over time.

Establish a support team: Consider designating an established team or person to provide real-time assistance to any recruiters who encounter difficulties or have questions regarding ChatGPT – including in recruitment work. This can be part of your existing IT or HR team if you have a small business.

Provide feedback channels: Have a way for recruiters to offer feedback or report any issues or problems with ChatGPT so that problems can be resolved quickly. This can also provide useful insights for future training

Ensure a smooth transition

Just because you onboard your team with ChatGPT doesn’t mean that all your team members will be on board, so to speak.
Addressing concerns proactively will help the doubters and the fearful among your recruiting team that AI is not here to replace their jobs, but to help them focus on more strategic tasks that require a human touch.

Here are some ways you can smooth out any bumps in the road and keep resistance to ChatGPT to a minimum:

1. Be clear on what and why

It all starts with open, honest transparency. Let your team know why you’re advocating for ChatGPT in recruitment, the benefits it has, and how it can help them get more done in less time. Emphasize at every stage that it’s a tool meant to assist them, not replace them. This will help manage expectations and alleviate concerns.

2. Integrate gradually

Introduce ChatGPT gradually into your recruitment workflows. Identify areas in your existing processes where they can be used. Find opportunities for integration, particularly any repetitive or monotonous tasks that require significant human effort. Start small at first with simple tasks, like boolean search strings.

As your team dips its toes in the water, scale its usage internally. This allows team members to adapt to the technology at their own pace and reduces potential overwhelm.

3. Showcase and celebrate successes

Provide a positive narrative and build associations within your recruiting team, by sharing the success stories about how ChatGPT has benefited certain team members.

This will help foster positive perception and wider acceptance.

4. Ensure a continuous learning experience

Foster a culture of collaborative learning and adaptation. As new features in ChatGPT and other AI tools roll out, your team should be prepared to adapt and evolve with them. Update your team regularly with new features and improvements to ChatGPT. Celebrate the team members who use it effectively, and encourage them to showcase what they learn.

Create the future by embracing ChatGPT for HR

Leveraging AI tools like ChatGPT is a strategic step towards transforming the way your recruiting team does things, for the better.
When you have ChatGPT automate your routine tasks, it allows your recruiters to focus on what matters – people. That’s what makes it such an exciting time to be a recruiter in the age of AI.

Embrace this change and harness the power of AI for more efficient, more data-driven, and more human-centric recruitment. The future is not to be feared, but to be created. We invite you to explore what ChatGPT can do for your recruiting and HR teams in our vast library of tutorials.

The post ChatGPT in recruitment: how to teach your teams to use it appeared first on Recruiting Resources: How to Recruit and Hire Better.

And there’s one more: automation. With the advent of generative and other AI tools rapidly populating the techsphere, automation in HR is becoming the next big technological development affecting your work.

The growing importance of automation in HR

So what exactly is automation in HR? It refers to the use of tech to automate manual and repetitive tasks, including recruitment, onboarding, employee data management, performance management, and analytics. Recent advances have made it easier and more cost-effective for companies to automate these processes, freeing up valuable resources that can be directed towards more strategic activities.

But you know what? The growing importance of automation in HR isn’t limited to just that – it goes beyond cost saving and resource allocation.Let’s look at two benefits for starters:

Greater accuracy

One of the key benefits of automation in HR is increased accuracy and consistency. Robots don’t make mistakes – humans do. Technology is simply designed to replicate what humans do at scale.

Think about the vast volume of manual processes that sucks up your day hours, such as resume screening, organizing interviews, collecting information from hiring managers, defining the ideal candidate profile, and more. All of that is subject to error and bias and it’s more so because we do get a little sloppy when we’re doing the same thing over and over and over again.

Automation helps eliminate all that by ensuring that tasks are completed in a consistent and standardized manner – even in the wee hours of the early morning when humans are just completely checked out of the system.

So… automation makes for smoother, more consistent and accurate processes.

Increased compliance

Here’s something that keeps people up at night – especially those whose heads are on the chopping block if their company gets in a legal bind when managing employees. Your in-house counsel can only do so much to protect you in your HR processes that are subject to numerous laws.

Those laws include the Fair Labor Standards Act (FLSA), Family and Medical Leave Act (FMLA), General Data Protection Regulation (GDPR), Equal Employment Opportunity (EEO), and much, much more.

Compliance with these laws can be a complex and time-consuming process, but automation can help to ensure that all processes are in compliance with the relevant regulations – including automatic reporting, data monitoring and so on.

Streamlining recruitment and onboarding processes

One of the key benefits of automation in HR is the ability to streamline recruitment and onboarding processes, which can be time-consuming and often require significant resources. Automation can help to make these processes more efficient, less error-prone and more engaging for candidates.

Efficient Applicant Tracking Systems

Applicant tracking systems (ATS) are a type of software that help organizations manage and streamline their recruitment process. With an ATS, recruiters can easily advertise job openings, receive and filter resumes, track candidate progress and more.

An ATS can also help to eliminate bias in the recruitment process by automatically screening resumes for specific keywords, qualifications and experience. This ensures that all candidates are evaluated on the same criteria, making the recruitment process fairer and more objective.

Furthermore, an ATS can provide valuable insights into the recruitment process, such as the effectiveness of job postings and the sources of the most successful candidates. This data can be used to refine and improve recruitment strategies, leading to better hires and a more efficient recruitment process overall.

Automated interview scheduling

The automation of interview scheduling can save recruiters a significant amount of time by eliminating the need for manual scheduling. Advanced scheduling tools can even find the best available time slots that work for both the recruiter and candidate.

Automated interview scheduling can also help to reduce no-shows and last-minute cancellations by sending out automated reminders and confirmations to candidates. This ensures that both recruiters and candidates are prepared and ready for the interview, leading to a more efficient and effective process overall.

Simplifying employee onboarding

The automation of employee onboarding processes can help to make the experience smoother and more engaging for new hires. Employees can complete paperwork, participate in training sessions and obtain necessary documentation from their managers online, saving significant amounts of time and paper-based documentation.

Automated onboarding can also help to ensure that all new hires receive the same information and training, leading to a more consistent and effective onboarding experience. This can help to reduce turnover rates and improve employee satisfaction and retention.

In addition, automated onboarding can help to reduce errors and omissions in the onboarding process by providing a checklist of tasks and documents that need to be completed. This ensures that all necessary steps are taken, leading to a more efficient and effective onboarding process overall.

Enhancing employee engagement and performance management

Automation in HR can improve employee engagement and performance management by incorporating real-time feedback systems and data-driven performance evaluations. In addition to these benefits, there are other ways that automation can improve the workplace.

Real-time feedback and recognition tools

Real-time feedback and recognition tools help employees to stay motivated and engaged by providing instant feedback on their work. These tools ensure more frequent feedback cycles and can help create a culture of recognition and continuous improvement across the organization. In addition, these tools can help managers to identify high-performing employees and provide them with opportunities for career advancement.

For example, a real-time feedback tool could be used to track the progress of a sales team. The tool could provide instant feedback on the number of sales made, the average sale value, and the conversion rate. This information could be used to identify top performers and provide them with additional training and development opportunities.

Data-driven performance evaluations

Data-driven performance evaluations leverage algorithms and data analytics to evaluate employees’ performance more objectively, with less room for human bias. Data analysis can help organizations identify areas where employees may require training or upskilling, helping to improve their overall productivity and performance.

In addition, data-driven performance evaluations can help managers to identify employees who are struggling and provide them with targeted support.

For example, a data-driven performance evaluation tool could be used to assess the performance of a customer service team. The tool could analyze customer feedback, call logs, and response times to identify areas where the team is performing well and areas where improvement is needed. This information could be used to create personalized development plans for each team member.

Personalized learning and development plans

Personalized learning and development plans help employees to grow their skills and knowledge based on their individual strengths and vulnerabilities. These plans can be tailored to support employees in acquiring the skills and knowledge that they will need for their current role as well as future opportunities.

For example, a personalized learning and development plan could be created for a software developer. The plan could include training on new programming languages, attending industry conferences, and working on projects outside of their usual scope. This plan could help the developer to stay up-to-date with the latest industry trends and technologies, increasing their value to the organization.

In conclusion, automation in HR can provide many benefits to organizations, including improved employee engagement and performance management. By incorporating real-time feedback systems, data-driven performance evaluations, and personalized learning and development plans, organizations can create a culture of continuous improvement and support their employees in achieving their full potential.

Improving HR data management and analytics

HR automation also helps to improve the way that organizations manage their data, making it easier to monitor and analyze employee data, and drawing actionable insights to make better decisions.

With the increasing amount of data generated by HR departments, it is more important than ever to have an efficient and effective way to manage it. This is where HR automation comes in, providing a way to streamline data management and analysis.

Centralized employee information systems

A centralized employee information system can help organizations to manage employee data more efficiently. They can track employee benefits, job history, and training records and easily access them when needed.

Having a centralized system also ensures that employee data is consistent and up-to-date. This can help to improve communication between departments and reduce errors that can occur when data is stored in multiple locations.

Furthermore, a centralized system can help to ensure compliance with regulations and policies, as all employee data is stored in one place and can be easily accessed for audits or other purposes.

Advanced workforce analytics

Advanced workforce analytics can help organizations to analyze employee data to gain valuable insights, such as trends around turnover, employee satisfaction or workforce skills.

By using advanced analytics tools, HR departments can identify patterns and trends in employee data that may not be immediately apparent. For example, they may discover that certain departments have higher turnover rates than others, or that employees with certain skills are more likely to be promoted.

These insights can help HR departments to make more informed decisions around recruitment, retention, and training. For example, if they identify a trend of high turnover in a particular department, they can investigate the underlying causes and take steps to address them.

Predictive HR insights for decision making

The use of predictive analytics in HR can help organizations to forecast future workforce trends, such as what skills are required, what roles are in demand, and what kind of training may be needed. These insights help to guide decision-making around hiring, training, and development across the organization.

Predictive analytics can also help to identify potential issues before they become problems. For example, if the data suggests that there may be a shortage of employees with a particular skill set in the future, HR departments can take steps to address this before it becomes a critical issue.

Overall, HR automation and analytics can provide organizations with valuable insights into their workforce, helping them to make more informed decisions and improve their overall performance.

Automate your HR and reap the benefits

The benefits of automation in HR are clear. They help to streamline recruitment, improve employee engagement and performance, and enhance the way organizations manage their employee data.

As HR technology continues to evolve, companies that keep up with these trends will benefit from a more productive, engaged and data-driven workforce.

The post Exploring the benefits of automation in human resources appeared first on Recruiting Resources: How to Recruit and Hire Better.

We then talked aplenty about AI affecting the job landscape and how there didn’t seem to be as much talk about a recession as there was at the start of this year (which feels like a long, long time ago now).

Now, we’re nearly at the midway mark of 2023, and we’re going to explore our SMB hiring data and see if we can pull up some fresh insights.

Let’s get to work!

How we’re looking at data

We’ve adopted two methodologies in how we look at the Hiring Pulse dataset. For Time to Fill and Candidates per Hire, we’re measuring each month using the average of 2019, the last “normal” year, as a baseline index of 100.

For job openings, we’re taking a different route – simply, the average number of job postings per company. This gives us the opportunity to gauge overall recruitment activity and whether that’s going up or down.
Want a more detailed methodology? Jump to the end and check it out.

As always, we look at the worldwide trends for three common SMB hiring metrics:

• Time to Fill (TTF)
• Total Job Openings (JO) 
• Candidates per Hire (CPH)

Let’s start analyzing!

Main highlights

The three main highlights for this month’s Hiring Pulse are:

• Time to Fill is showing signs of stabilization, but remains at its lowest point in our dataset history
• Job activity is particularly robust for small businesses with fewer than 50 full-time employees
• Candidates Per Hire has come down significantly from last month’s surge – but remains at a high point

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important to understand that definition: jobs that are still open as of the end of May are not included in this graph as they don’t yet have an “end date”. Only the jobs that are filled are included here.

Quick clarification, because people are asking: the data in this chart shows the trendline against the 2019 average as an index of 100, not the actual number of days in TTF.

Got that? Good. Let’s have a look at the monthly TTF trend through to the end of May against the average of 2019, based on jobs that have been filled:

The second quarter of 2023 continues to see relative stabilization in the Time to Fill trend compared with the first quarter, with May’s 80.8 just a small drop from April’s 83.1, which comes on the heels of March’s 81.8.

What’s really worth noting here is how low the TTF trend is in general. These past three months have seen what’s ultimately the fastest Time to Fill trend in our dataset dating back to 2019. What does this ultimately signify? It can be any of the following:

1. A glut of candidates makes it easier to find the right hire in short order
2. A shortage of candidates means hiring teams work faster to land the right hire before the competition snatches them up
3. Hiring teams are getting faster at hiring because layoffs have reduced the number of touchpoints to a hire
4. Hiring teams are becoming more efficient at hiring because they’ve digitally transformed their hiring process (hint, hint Workable and AI)
5. Hiring teams are becoming more efficient at hiring in general

There are many other potential explanations, but the above is worth thinking about.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

As stated above, we’re displaying this as an average of job postings per company in the network. And because this is not contingent on job opened/filled dates like TTF and Candidates per Hire, we can simply look at the raw job open numbers up to the end of May.

Once again, job activity sees a little bump: from 6.6 new job postings per company on average in April to a flat 7 in May. It’s not a lot to write home about, especially since historically a jump from April to May is relatively normal (with 2022 being an exception).

What’s more interesting than month-over-month change here is the relative busy-ness of job activity throughout 2023 compared with previous years. It’s busier this year for SMBs (<200 FTEs), but for enterprise-level companies with more than 200 FTEs, job activity is actually slower now than it was at this time last year.

We surmise it’s because larger companies tend to be slower in turnaround and response. Remember all that talk about a worldwide recession at the start of the year, followed by large-scale layoffs? And now, we see slower job posting activity as we approach the end of Q2 compared with the same time last year. That’s all part of the overall business plan.

Another way to look at it is that employees at larger companies may have greater job security in those companies. That, coupled with layoffs, will mean lower employee turnover – and therefore, fewer job postings.

Meanwhile, those smaller, nimbler companies that are more susceptible to turbulent rises and falls in the bottom line will also see greater turnover – we’re seeing that especially in the 1-50 FTE bucket where March’s 5.5 job postings per company, April’s 4.6, and May’s 4.9 are significantly higher than last year at this time (3.5, 3.3, and 3.3 respectively).

Let’s do a little bit of math to put that in perspective – let’s say the average company in the 1-50 FTE bucket has 30 full-time employees. An average of 4.9 job postings is 16% of that entire company’s workforce right there. That’s compared with last year’s 3.3 job postings being 11% of a company’s workforce.

That’s the difference between a turnover of one in seven employees this past May and one in nine employees in May 2022.

Pretty significant.

Now, let’s look at the candidate population for those jobs.

3. Candidates per Hire

Workable defines the number of candidates per hire (CPH) as, succinctly, the number of applicants for a job up to the point of that job being filled. Again, remember, this is a trendline using the 2019 CPH average as a baseline of 100, not the actual number of candidates per hire.

Now that Let’s look at what’s going on here through May:

After many months – more than a year, even – of a Candidates Per Hire trend growing faster than a bamboo tree, we’re finally seeing that number take a plunge from one month to the next. Whether that’s due to April being so high that a drop-off was inevitable or whether that’s due to an actual depletion of the candidate pool, that’s for you to decide.

One thing we’re viscerally cognizant of, however, is that this drop in May could be related to the higher job postings in the previous chart – meaning, when there’s more job postings out there, naturally, candidates will get snatched up as well.

Another scenario worth thinking about: there are three major scenarios in which one might be looking for a job: first, they’re entering the job market because they’re entry-level, coming out of school, moved to a new location, or something similar.

Second, they’re transitioning jobs; simply put, they’re still employed but they’re looking for other jobs out there because it’s time for a change. Third, they’ve lost their job and they’re actively looking for a new one.

So, the increase in candidates per hire in general isn’t simply about a growing candidate pool. It’s also the result of those mass layoffs across the board, leading to candidates more aggressively and actively looking for a new job so they aren’t unemployed for a long period of time. Rather than selectively applying for job opportunities out there, they’re taking the spray-and-pray approach until someone hires them.

This, of course, will drive the CPH up – and it can also be challenging for employers because they need to suss out the real motive of a candidate in applying for their open role. Be careful thinking like this, however. Don’t jump to conclusions. A smartly built evaluation process will identify the real stars for your job.

What’s going on here?

Notice we didn’t touch on AI much at all this time around? While that’s still a hot topic, let’s not get too deep into this month since we’ve covered it so comprehensively in much of our other content. Plus, it remains a very nascent environment.

OK, fine. Let’s talk about AI.

Meanwhile, OpenAI, Nvidia, Microsoft, Google, Amazon, Apple, and the rest of them are investing heavily in AI and machine learning. Out of the 38 new unicorns (startups that break the $1B company value barrier), eight of them are in AI technologies.

If you’re in AI, that’s great, but if you’re in anything else, it’s a tough ocean to navigate. That same report states that overall funding of startups has dropped 44% from May 2022 to May 2023.

We’ll just keep a finger on that AI pulse for the forthcoming months, particularly on how typical skill sets will change going forward. For example, ChatGPT is considered even more valuable than a post-secondary degree by 86% of hiring managers according to an Intellgent.com survey.

And for entry-level candidates, a full 98% of hiring managers would like to see ChatGPT experience for positions where the AI tool is applicable.

These are interesting times. Catch up next month!

Thoughts, comments, disagreements? Send them to content@workable.com, with “Hiring Pulse” in the subject heading. We’ll share the best feedback in an upcoming report. Watch for our next Hiring Pulse in May!

The Hiring Pulse: Methodology

Because one of the three metrics (Job Openings) is different from the other two metrics (Time to Fill and Candidates per Hire), we’re adopting two very distinct methodologies.

To bring the best insights to small and medium (and enterprise-level) businesses worldwide, here’s what we’re doing with the Job Openings metric: we’re taking the number of job openings in a given month and dividing that by the number of active companies in our dataset, and posting that as an average. For example, if July 2022 shows the average Job Openings per company as 7.7, that simply means each company posted an average of 7.7 jobs that month.

For the Time to Fill and Candidates per Hire metrics, we’re comparing a specific month’s trend against the full average of 2019, and we show the result using that 2019 average as a baseline index of 100. For example, if July 2022 shows an average Time to Fill of 30 days for all jobs, and the monthly average for all of 2019 is 28, we present the result for July 2022 as 107.1 – in other words, 7.1% higher than the average of 2019.

And we chose 2019 as the baseline because, frankly, that’s the last normal year before the pandemic started to present challenges to data analysis among other things.

The majority of the data is sourced from businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

The post Your Hiring Pulse report for June 2023 appeared first on Recruiting Resources: How to Recruit and Hire Better.

However, we can get a sense of where job markets are heading by considering how algorithms are being wielded to reshape the workplace.

Tech-supported remoteness

One of the most striking changes is the shift towards remote work. This was inspired initially by the COVID-19 pandemic, and the jury is still out about the extent to which the migration to home offices will become permanent.

But automation technologies and AI have played a key role in enabling individuals to work remotely, a trend that will likely continue.

The growing use of telecommunications, the internet, Internet of Things (IoT) sensing, and cloud services provide a robust infrastructure for heavily decentralized yet effectively coordinated human activity.

As a result, even the diversity of languages becomes less of a barrier to working together through automated language translation.

Technologies like these support almost all facets of remote work. For example:

• IoT sensors provide remote monitoring visibility
• Cloud apps provide remote access to data and functionality
• Robots offer remote control of physical systems
• Employee performance-monitoring systems ensure remote workers are working
• AR/VR systems could provide better telepresence regardless of where workers are physically located

Individuals adept at using these technologies are well-suited to remote environments and hence better able to compete for these jobs.

Digital natives seem very comfortable with online interactions and prefer texting over face-to-face meetings and telephone calls (although they say personal interactions are essential). They tend to be comfortable and productive in virtual digital environments like the Metaverse.

This enables and even improves the serendipity of chance encounters – the utility of which has been one of the main complaints against remote work – because the constraints the physical workspace places on interactions are significantly reduced in cyberspace. Such encounters can be programmed to be random.

Firms face a trade-off between hiring only from the limited population within the physical commuting distance of the physical workplace versus hiring the best talent from the vastly larger pool of people anywhere in the world and dealing with them primarily online.

Brick-and-mortar outcomes

But remote work will only account for a portion of the jobs available in an AI-driven world, so how will AI be used to rethink the traditional workplace?

Experts differ in their forecasts about the future of jobs. The Future of Jobs Report 2020 by the World Economic Forum identifies 10 positions with the sharpest decreases in demand.

Many involve simple, routine administrative or physical tasks that AI and robotics can automate. Examples are data entry clerks, assembly and factory workers, and customer service workers.

Despite expected job losses through automation, many people might remain in these categories of jobs for several reasons.

For example, some people will be retained to handle complex work that cannot be easily automated or to manage exceptional situations such as events that fall outside the range of an AI’s training data (the COVID-19 pandemic’s impact on businesses being a standout example).

The people most likely to retain these jobs will be the most skilled employees. An example is individuals with the experience to spot when a machine’s output does not make sense and what should be done if it is making a mistake or cannot handle a particular situation.

Also, as noted above, AI will create new types of jobs, and a proportion of these could be low-skill positions because the technology will de-skill the more challenging parts of some job types rather than taking them over.

Also, as noted above, AI will create new types of jobs, and a proportion of these could be low-skill positions because the technology will de-skill the more challenging parts of some job types rather than taking them over.

The aforementioned Future of Jobs Report 2020 lists the top 10 jobs with the sharpest expected increase in demand. Examples are data analysts and scientists, digital market and strategy specialists, and IoT specialists.

Most positions arose from the recent development and adoption of internet technology; many are jobs that barely existed 20 years ago. Each job category represents more than just a new type of job title and new sub-industries and ecosystems of software, services, and consultants.

Thus, these technology-intensive jobs are only the tip of the future employment iceberg.

But such lists gloss over the many changes that will affect jobs. Most jobs will likely make more use of data, online communications, and technology to provide visibility, enable coordination, and track outcomes.

Many office workers will use AI-based services such as ChatGPT and Grammarly to augment their communication skills by allowing them to auto-adjust their emails and work-related writing for clarity, tone, and professionalism.

And many workers will interact more with technological platforms such as portals for suppliers, business customers, human resources, and other departments.

Related: Lead a team through AI: an inclusive approach to change

These changes will improve productivity and increase the value that workers help provide to customers.

It follows that individuals with the foresight to gain and update relevant skills will be the ones who can compete effectively for the new jobs on offer.

The human face of AI

As these examples show, when trying to discern the future shape of the employment landscape, it is helpful to focus on how individuals – whether senior managers or subordinates – will use algorithms to improve their capabilities and productivity.

The most significant utility of AI will be in augmenting and enhancing these human capabilities. One of the outcomes will, naturally, be a change in the way people perform their jobs.

Dr. Yossi Sheffi is the Elisha Gray II Professor of Engineering Systems at the Massachusetts Institute of Technology and Director of the MIT Center for Transportation and Logistics (MIT CTL). His recent book is The Magic Conveyor Belt: Supply Chains, A.I., and the Future of Work.

The post AI-human fusion: steering the job market renaissance appeared first on Recruiting Resources: How to Recruit and Hire Better.

Here is what you can do to foster a truly inclusive workforce in your organization.

Making workplaces LGBTQ inclusive

Let’s start by looking at the numbers. A Human Rights Campaign survey found that:

• 46% of LGBTQ workers are closeted at work
• Half of non-LGBTQ employees reported there were no openly LGBTQ employees in their company
• 1 in 5 LGBTQ workers have been told or had coworkers imply that they should dress more feminine or masculine (compared with 1 in 24 non-LGBTQ workers)
• 54% of non-LGBTQ workers said that they would be very comfortable working with an LGBTQ coworker; of those who wouldn’t be very comfortable, a majority said it was because they “didn’t want to hear about their coworker’s sex life.”

LGBTQ employees are not comfortable everywhere they work, and there are some misperceptions out there. No one wants or needs to hear about their coworker’s sex life, which shouldn’t even be an issue on the table regardless of preference.

We share five tips on how to make your workplace more LGBTQ inclusive:

1. Speak with your pocketbook, not your rainbow logo

It’s easy to change a logo, put up a flag, or tweet about happy Pride Month. But LinkedIn took a step further and started paying the heads of their affinity groups $10,000 a year for the extra work. This demonstrates their desire to support all diversity groups, including LGBTQ groups.

Nothing says real support and inclusion like cash which recognizes the hard work these employee resource group leaders put in.

2. Be thoughtful about pronouns

This is a hot button issue at work, and you need to tread carefully. For example, look at the following exchange on Twitter:

Katrina Kibben: One of my Pride wishes this year is to ban the phrase “preferred pronouns.” They are not preferred. This isn’t steak or shrimp. It’s a human’s identity.

Dr. “Coach” Dawn Reid #ReidReady: I respect how you feel and I ask if you can consider preference is about a label choice. I.e., My son is non-binary. He has a pref of they/she/he depending on his affect. It’s his pref of a social label in the moment. Not who he is as a person.

Katrina Kibben: Every experience is different. I respect it. For me? My first thought is that your child may be code-switching for their safety (I do it too), not changing pronouns.

Dr. “Coach” Dawn Reid #ReidReady: Agreed. It’s different for each person. Code switching is another topic. We all do that for communication clarity. The original term/use is from linguistics. And that’s not it for them. It’s his preference. We are talking about this now.

In other words, there is no way to get it right. An October 2020 survey by Tallo found that 88% of Gen Z candidates think it’s important for recruiters to ask them their pronouns. But many Baby Boomers and Gen Xers find it offensive to ask their pronouns. This leaves you to guess, but there are some things you can do.

Listen to what people want to do. Respect and use their pronouns. (But it’s not reasonable for an employee to expect everyone to follow regular pronoun changes.) Allow people (but don’t require) to list their pronouns on email signatures and other work-related things.

3. Don’t make assumptions

Does someone look gay? Is that person trans? Whisper, whisper, whisper. This type of thing makes for a very unwelcoming environment for everyone.

Instead, make sure your staff understands employees treat every other employee and client equally across the board. Everyone gets respect. If you allow people to bring personal items to decorate their cubicles, then everyone gets to bring a family picture – regardless of what their family looks like.

Make sure you schedule and provide promotions and perks based on performance and seniority, not the perception that so-and-so needs a bump in pay because his wife just had a baby. If an employee announces the impending birth of a baby, don’t speculate about just how that baby was conceived or carried. Instead, just say, “Congratulations! Let me get you the FMLA paperwork!”

4. Remove bias from your recruiting process.

EPM Scientific gave five tips for reducing bias in hiring. These are:

• Anonymizing resumes in the review process
• Encouraging validated pre-employment testing
• Pre-employment testing, such as work samples, predict job success.
• Encouraging a diverse interview panel and hiring committee
• Challenging bias in recruitment and hiring decisions

All these things help you ensure you hire the person who is best for the job regardless of their race, gender, religion, sexual orientation, age, or national origin. Letting candidates know you do through these processes helps them feel like they have a chance based on their skills.

5. Educate your leadership on the benefits of diversity

You can only increase LGBTQ candidates when you have a welcoming environment. But, to make a welcoming environment, senior leadership needs to be on board. Presenting the business case for making workplaces LGBTQ inclusive will help.

People who have to hide their identities at work experience more stress. Higher stress results in more days off and an increase in medical costs. It’s saving you money to have a welcoming environment.

Consulting giant McKinsey reported in May 2020 that companies with diverse leadership have higher financial returns than those that don’t. While they looked only at gender and race, it stands to reason that bringing in people with different sexual orientations would bring additional viewpoints that would help the company reach different audiences and support all employees.

Finally – candidates, especially Millennials and Gen Z, want to work for inclusive organizations and leaders. They’ve made that clear. So make sure you let them know what your company is doing to ensure everyone feels comfortable.

The critical point of all this is that everyone deserves a job based on their knowledge, skills, and abilities. Everything else should be irrelevant. This means ensuring that everyone is welcome in your company. A simple concept that goes far.

The post 5 tips on making workplaces LGBTQ inclusive appeared first on Recruiting Resources: How to Recruit and Hire Better.

Predictions are being made left and right as to what the workplace will look like going forward. Some of these look like wild science fiction, but many companies are already pioneering radical new concepts that push the boundaries of technology and humanity at work.

What are those new developments? We’re not looking at next year – we’re going to go to the future of HR in 2030 … and beyond.

Let’s look at a few of them right now and how HR plays a role:

1. AI-augmented talent

We’re already entering this brave new world of AI co-pilots – that much is known. This is where AI assistants (or co-pilots) work alongside human employees to enhance their skills and productivity. At present, ChatGPT, Google Bard, Anthropic’s Claude and other generative AI tools are being introduced in new workplace policies and training to ensure that employees stay meaningfully engaged in their work while partnered with bots.

Imagine the head of HR helping a team of engineers and researchers join forces with AI assistants to speed up programming and testing cycles – not just in coding and other dev work, but physical design and testing. Policies, processes, and oversights will be implemented to facilitate that collaboration.

2. Micro-learning via brain uploads

Remember the scene in The Matrix where knowledge and skills are uploaded directly into Keanu Reeves’ brain? And he opens his eyes and says in his unmistakable tone: “I know kung fu!”.

This is sort of like that. Skills development may involve implanting knowledge and training directly into your memory for rapid reskilling.

Let’s say the chief learning officer at a manufacturing firm needs to upskill 200 technicians across the country for an urgent project. This CLO would analyze existing skills data, gaps, and needs across the team and deploy the most useful ‘brain upload pods’ for individuals and work teams to optimize productivity. Presto, the team comes in Monday ready to tackle that big new job.

3. 3-D printed workspaces

The rapid restructuring of the working world in recent years has its physical impact as well – those huge skyscrapers in the city center may still exist, but office vacancy rates are at an all-time high. And that’s closely correlated with the start of the COVID-19 pandemic and the rise of the hybrid workplace. Evidently, the traditional workplace just doesn’t work anymore.

Instead of frantically trying to find an existing ideal workplace and locking in a five-year lease, wouldn’t it be great if you could just redesign your office using 3-D printing for increased flexibility, collaboration and even employee satisfaction?

HR can use telepresence robots and AR that engage remote workers with the space, and do it all in modular fashion to make for more robust design flexibility.

4. Supersized virtual workforces

In tandem with the surge in remote and distributed teams, imagine entire networks of remote workers across continents – let’s say Asia or Africa – all accessible within a single platform to scale customized teams for short-term projects.

A head of HR would be able to assemble and manage a team of 50 remote workers for two months – and upload specific knowledge into their brains to speed up onboarding – to tackle a machine learning initiative.

We do have this sort-of ‘talent access’ ecosystem already available in the form of the shared economy (as recruitment expert Hung Lee explains in the following video). We also have agencies that hire out temp workers. Think of it like this, but in bigger, loftier concepts.

5. Exoskeleton suits

Again, we’ve seen this in the movies. Avatar is a good example where exoskeleton technology was utilized to boost performance. Of course real life isn’t a James Cameron movie, but we’re also seeing exosuits in real life in many different forms:

Wearable exoskeletons can prevent injury, increase productivity, and extend longevity especially in physically demanding jobs – boosting retention and ROI in one fell swoop. Procuring office supplies and the like are often a responsibility in human resources – think of exoskeletons as a more advanced form of this, especially when it means greater workplace safety.

6. Workplace biometric monitoring

You likely have a smartwatch and/or a fitness tracker with you at all times – this falls into that bucket. Non-invasive technology can monitor employee health, mood, and performance within the workplace through a combination of biomarkers, wearables and environment sensors. HR would set that up to build real-time big data models (with your express permission, of course) to identify patterns and implement preemptive interventions.

Some of these interventions would be proactive wellbeing initiatives, productivity recommendations, and even workplace changes (which you’d, of course, spearhead using 3-D printed office designs!). That’ll be a huge plus for employee experience – a major focus of HR.

7. ‘Swarm AI’ decision making

Synergy (sorry, we know that word isn’t popular) can be a real pain when you have too many cooks in the kitchen or too many meetings without a single stream of information. That makes for problems when making complex strategic decisions.

You can overcome that by enabling employees across all levels in the company to input anonymous perspectives and votes within an AI system – which then aggregates and synthesizes the ‘swarm’ knowledge into optimized proposals and recommendations.

HR can facilitate this collaborative and democratic decision-making process of tapping into the collective wisdom of the company beehive. This allows the higher-ups to curate divergent perspectives into a few optimized options for discussion – minimizing individual biases.

8. Supersized skill sets

One of the technological shortcomings that’s surfacing in this emerging age of automation and AI is that of human skills such as creativity, empathy, and complex problem solving. These will become ‘supersized’ skill sets that are not easily replicable by AI and therefore become even more crucial.

And it’s HR’s opportunity to capitalize and grow this skill set across the employee base through regular coaching and training sessions that are specifically designed to meet those crucial needs in a company that’s increasingly using tech in its everyday workflows.

And now… to the future

In today’s fast-paced business environment, companies can no longer be constrained by traditional paradigms of space, time, and human capabilities. The future is ripe with tech-volution, and we’re seeing it happen in real time.

And it’s driven by the biggest budgets outside of government – trillion-dollar organizations dedicated to optimization, productivity, innovation, and growth.

Add to that a vast range of pioneering startups, and the reimagination of work is at a pace where the workplace in 2030 may be unrecognizable to us today. The future of work is closer than we may realize and more human than we ever imagined.

The post The wild future of HR: 8 radical concepts made relatable appeared first on Recruiting Resources: How to Recruit and Hire Better.

That’s right. Signatures in the digital medium.

But first, the burning question: what is e-signature software?

E-signature software is a digital solution that enables you to affix your signature to documents electronically. It provides an efficient and secure method of handling documentation – without needing to navigate the cumbersome in-person requirements, fax machines and paperwork of yesteryear.

The e-signature concept has matured over the years since its inception in the late 20th century. Now, with advanced technology and the shift towards remote and distributed work patterns, e-signature software is more than just a modern replacement for ink-and-paper signatures.

It’s an essential component of a digital-first strategy and is widely adopted by businesses across various industries – with North American businesses expected to lead the way with 35% of global market share by 2023, and other regions rapidly catching up.

Now, let’s go into details about how e-signature software works, the various types of software available, and the benefits of having it in your business. You’ll also learn how to choose the right e-signature software for your needs.

You’ll ultimately gain a comprehensive understanding of e-signature software and why it’s a critical tool for your business or personal transactions.

First, let’s understand how e-signature software works and what types are available in the marketplace.

How e-signature software works

E-signature software simplifies the process of signing and validating digital documents. Its primary function is to facilitate the electronic replication of your signature on digital files, making the endorsement of documents faster and more convenient.

Here’s how e-signature software typically works for you:

Document Preparation: You upload a document to the e-signature platform. It could be a contract, a form, an agreement, or any other type of document that requires a signature.

Signature Request: You specify the individuals who need to sign the document and send them a request via email. The platform generates a unique, secure link for each recipient.

Signing: The recipients click the link, open the document, and electronically sign it within the platform. They can use a pre-designed e-signature, draw their own, or type their name, depending on the software’s capabilities.

Verification & Storage: Once signed, the platform verifies the signature and securely stores the document. You, the sender, will receive a notification once all signatures are in place.

This process varies somewhat between different software providers, but the core functionalities are consistent across the board. It’s a more efficient and secure alternative to the traditional way of signing and managing documents.

Different types of e-signature software

There are several types of e-signature software available on the market, all with their own features, advantages, and limitations. The three primary categories of e-signature softwares are:

Basic e-signature tools: These are simple tools that allow for the creation and addition of a signature to a document. They typically lack advanced features like audit trails or integration capabilities. Examples in this category include DocuSign, Dropbox Sign, and Acrobat Sign.

Integrated e-signature software: These tools come with additional features like CRM or document management system integrations, which are beneficial for businesses looking for a more comprehensive solution. Workable, PandaDoc, SignNow, and the business & enterprise versions of Acrobat Sign fall into this category.

Specialized e-signature platforms: These software platforms are designed to meet specific industry needs, such as real estate or legal services, where unique compliance standards and document types exist. Notarize, dotloop, and Secured Signing are leaders in this area.

When choosing the right software for your needs, consider the nature and scope of your operations, the volume of documents you handle, and the level of security and compliance required.

Now, we’ll delve into how e-signature software can be utilized in various settings.

Applications of e-signature software

Really, there are two main uses for e-signature software: professional/business and personal.

1. Business applications

Business operations can gain immensely from the adoption of e-signature software. Here are some typical uses:

Contracts and agreements: E-signature software makes the signing of contracts and agreements swift and straightforward, saving businesses the time and resources usually spent on physically signing and sending documents.

Human resources: From offer letters to policy acknowledgments, HR departments often need a secure and efficient way of getting signatures from employees. E-signature software provides a solution for these needs.

Sales and marketing: Sales contracts and marketing agreements can be signed and processed rapidly with e-signature software, accelerating sales cycles and improving customer experiences.

Legal documents: Legal teams can use e-signature software to sign and store important legal documents securely, ensuring compliance and accessibility.

2. Personal use

On a personal level, e-signature software can be used to sign various types of documents electronically, including:

Tax Documents: Filing tax returns can be made easier and more secure with e-signature software.

Lease/rental agreements: Whether you’re renting a car or leasing an apartment, e-signature software allows for quick, convenient signing.

Personal contracts: Any form of personal contract, from loan agreements to freelance work contracts, can be signed using e-signature software.

Next up, we’ll explore the benefits of e-signature software.

Benefits of e-signature software

There are many different benefits to using e-signature software in place of traditional signing processes.

1. It’s more efficient

E-signature software increases the speed at which documents are signed and exchanged, thereby improving workflow efficiency. The software eliminates the need for printing, signing, scanning, or mailing paper documents, thereby reducing delays and manual errors.

2. It saves on cost

Think about the costs associated with traditional paper-based signatures: the paper itself, ink, mailing, and storage. E-signature software significantly reduces these expenses. Furthermore, by expediting workflows, it indirectly contributes to cost-savings by freeing up time that can be used for other productive activities.

3. It’s more secure and compliant

E-signature software comes with robust security features such as encryption and access controls, ensuring that your documents are kept safe. Additionally, it can provide detailed audit trails, which are crucial for compliance and legal validity.

4. It’s easier to use

Whether you’re working from home, on vacation, or on a business trip, as long as you have internet access, you can sign or send documents for signature. This convenience isn’t limited to a particular industry; anyone can take advantage of it.

5. It’s better for the environment

By reducing the use of paper, e-signature software is an environmentally friendly solution. It’s a simple and effective way for your business to contribute to sustainability efforts.

Now let’s take a look at how to choose the right e-signature software for your needs.

Choosing the right e-signature software

As always when shopping for new tools or products, there are several factors to consider when selecting the right e-signature software.

1. User-friendliness

A good e-signature software should be easy to use and navigate, both for you and for the people signing your documents. A software with a user-friendly interface reduces the learning curve and increases efficiency.

2. Security

As mentioned earlier, security is paramount when dealing with sensitive documents. Ensure that the e-signature software you choose has robust security features like encryption, two-factor authentication, and secure storage options.

3. Integration

If you’re using other business software like CRM or document management systems, consider an e-signature software that integrates with these platforms. It simplifies your workflow and allows for more seamless operations.

4. Customization

Look for software that allows you to customize the signing process to fit your needs. This could include custom branding, adjustable signature fields, or tailored notifications.

5. Pricing

E-signature software comes at various price points, usually based on features, number of users, and the number of documents signed per month. Choose one that fits your budget but also meets your needs effectively.

6. Customer Support

Consider software providers that offer reliable customer support. It can prove invaluable when you’re faced with technical issues or have questions about the software.

Choosing the right e-signature software is an essential step in optimizing your document signing process. By considering these factors, you’ll be able to select a solution that best fits your needs. I hope you found this guide helpful as you embark on your journey to adopting e-signature software.

E-signing into the future

Remember, adopting e-signature software isn’t just about changing how you sign documents. It’s not even an evolution – it’s ultimately about stepping into a more efficient, secure, and eco-friendly future.

Interested in how Workable’s own e-signing tools can help you in HR? Check it out for yourself.

The post E-signature software: all the things you need to know appeared first on Recruiting Resources: How to Recruit and Hire Better.

However, a new challenge is coming: your company has decided to incorporate AI into its overall workflow. You’re under a lot of pressure from the higher-ups to get everyone on board the AI train, but when you look at your team, you’re worried about the range of reactions you’ll get from your talented team members.

In short, you know this can make your team more productive and competitive, but you also understand it’s a change. You are determined to navigate this transition smoothly.

So, how do you do it?

Introducing your team

Let’s identify five distinct personas who may be in your team and what motivates them.

1. Traditional Terry

Traditional Terry is your company’s historian, having been with the company for over 15 years. He’s a senior project manager known for his methodical approach and rich industry knowledge. Everyone knows Terry and everyone respects Terry. He’s a good egg.

Terry aspires to retire in this company, and his goal is to maintain the reliable and efficient work processes he’s developed over the years. He’s driven by a sense of duty and a strong belief in the company’s mission – and colleagues look to him as a stabilizer whenever things get a little hectic.

2,. Eager Enrique

Eager Enrique is fresh out of school. You just hired him last year as a junior developer because he’s incredibly keen and brings an absolute smorgasbord of nascent tech skills. He’s always on top of the latest tech trends and isn’t shy about voicing his ideas.

Enrique’s ambition is to become a tech influencer someday – heck, he even has his own YouTube channel with more than 10,000 followers. The chance to work with AI might just be the exciting break he’s looking for.

3. Cautious Chloe

Cautious Chloe is your meticulous and dedicated data analyst. She joined your team five years ago and has consistently demonstrated her ethical and thoughtful approach to work. She absolutely crushes it every time she has a data project on her desk, and she’s your go-to anytime you need to pull insights out of those nascent data sets.

In your 1-1s with her, you’ve come to learn that Chloe’s career goal is to move into a leadership role where she can influence company policy, particularly around ethical use of technology.

4. Strategic Sven

Strategic Sven is the team’s product manager. When you interviewed him for the open role, you knew he was the one. He brings with him a huge background in tech startups, plus an MBA from a top-tier business school.

Sven’s ambition is to improve the company’s strategic planning and he’s motivated by driving impactful change. He doesn’t like just getting the job done and going home – he wants to do a lot more than that.

5. Tech-Averse Thanh

Tech-Averse Thanh is your administrative assistant who has been with you for more than two years. Thanh’s goal is to excel in administration – and stability and harmony in the workplace are huge motivators.

Thanh prefers traditional methods and isn’t as comfortable with technology as the rest of the team. In fact, they prefer to do things the way it’s always been done (and proven to work, too).

At this week’s Monday meeting, you deliver the news from the higher-ups: the company wants to incorporate AI into everyone’s workflows. You highlight the benefits of AI – greater productivity, optimized processes, the ability to scale faster – and underscore its importance for meeting the company’s ambitious goals.

You reassure the team that you will support them throughout this transition.

Watching your team’s reactions

You see your team murmer and look at each other across the table. Yes, AI has already been in the news and this was somewhat expected, but you see that reactions are mixed and varied. Some nod and roll with it, others look a little more hesitant.

Let’s look at the five personas again and see how they react to the news.

1. Traditional Terry

Traditional Terry looks taken aback during your announcement, his brow furrowing. You’re not terribly surprised at this – he’s not necessarily averse to change, but you know he’ll see the “big picture” in everything that happens at the company.

In your 1-1, Terry expresses fear that AI will change the way he does his job or, worse, make him redundant. You can see the genuine concern in his eyes. Sure, his kids are grown up, but he still has his mortgage to pay and it’s not like he can easily migrate to a new job.

2. Eager Enrique

Eager Enrique, on the other hand, is visibly excited. As an early adopter of many technologies, even so far as to approach you regularly with new recommendations for your tech stack, there’s no question he sees this as an opportunity.

He’s practically brimming with ideas when you meet him, speaking rapidly about potential applications of AI. His enthusiasm is contagious both for you and the larger team, but you’re worried that he’s a bit too optimistic and not thinking about the realistic challenges that could surface.

3. Cautious Chloe

Cautious Chloe listens attentively during the meeting, her face thoughtful. She’s never been one to wear her heart on her sleeve, and to be fair, that’s one of her strengths – she’ll process new developments internally and meticulously, and then make decisions later.

In your 1-1 later that week, she voices concern about AI’s ethical implications and how job security will be ensured. You appreciate her frankness and careful consideration and, especially, the time she’s; taken to think it over rather than react strongly.

4. Strategic Sven

Strategic Sven listens attentively, nodding occasionally. You can see his MBA background whispering in his head, and of course, he’s seen a lot in his career in tech startups. This isn’t his first rodeo.

When meeting privately with you, he notes that he agrees with the strategic importance of AI in your 1-1 but admits he’s unsure about the execution. This needs to be carried out properly in order to succeed and, when you ask, he lists out the potential obstacles worth thinking about. You’re grateful to him for being pragmatic.

5. Tech-Averse Thanh

Tech-Averse Thanh looks nervous during your announcement. You’re not terribly surprised, but you’re worried. You know Thanh really needs to be a bit more flexible, but their administrative and organizational skills more than make up for that – so you really need them to be on board.

In your 1-1, they confess that the thought of using AI is a major stress inducer. It’s literally another thing they need to learn in order to do their job. They’re clearly anxious, worrying about whether they can keep up with the changes.

After hearing your team’s reactions, you realize that you have a critical task ahead. Everyone brings unique strengths to your team, and it’s vital that their voices are heard.

You know you must engage them individually to help them adapt to the new changes.

Engaging your team

Now that you’ve met with each of your team members, it’s time to put in an action plan for each one of them. It’s your job to bring the best out of them – and part of that involves getting them to adapt readily to AI’s entry in their day-to-day work and continue to flourish.

1. Traditional Terry

For Traditional Terry, begin with open conversations about his fears and reservations. Those hesitations are legitimate and understandable and you want to help him work through them. For starters, reinforce that his years of experience and established skills are invaluable to the team.

Show him – don’t just tell him – how AI can take over repetitive tasks, freeing him to focus his time and energy on complex, high-value work that draws on his experience. Provide real examples from other organizations that have successfully adopted AI without any impact to their actual team structure – and emphasize that job roles at those companies have actually evolved rather than disappeared.

And to further support him, work with HR to set up a personalized training program for him that helps him integrate AI, and touch base with him regularly to monitor progress.

2. Eager Enrique

With Eager Enrique, the prelude has already been covered. He’s already on board. Now, you have the opportunity to channel his excitement constructively in a way that benefits him and the team. Set up regular meetings to discuss his ideas, urge him to consider potential challenges, and ensure a balanced perspective on AI.

Encourage Enrique to join AI-focused groups or events to broaden his understanding. Given his aspirations to become a tech influencer, suggest that he document and share his AI learning journey, turning him into a proactive AI advocate within the team. Invite him to host lunch & learns every month – if he’s keen to be an influencer, he’ll jump at the idea.

3. Cautious Chloe

Cautious Chloe doesn’t like unknowns, so transparency is key here. Get her involved in discussions about the ethical framework within which the AI will operate. Invite her to decision-making meetings regarding AI deployment, allowing her the opportunity to voice her concerns.

Like Terry, you can also reassure Chloe that roles will evolve rather than be replaced and encourage her to think about how AI can boost her own work. Her concerns can be converted into a mechanism for constructive feedback, helping your team and company foresee and mitigate potential risks.

4. Strategic Sven

When dealing with Strategic Sven, focus on business strategy and execution because that’s what speaks to him. Give him the resources to design a clear and effective AI implementation strategy – after all, you’ll be needing one anyway, so let him play a leading role in that.

He can also be a great sounding board during your 1-1 sessions. Encourage him to pose questions, discuss doubts, and explore solutions. And bring in external AI consultants where needed, to provide expert opinions and recommendations. This will bolster Sven’s confidence in navigating the change and benefit the team as a whole.

5. Tech-Adverse Thanh

Tech-Averse Thanh needs an approachable introduction to AI. Explain the technology in simple terms, direclty linking benefits to everyday tasks. Pair Thanh with Enrique, as Enrique’s enthusiasm can be infectious.

Offer additional support, such as optional training sessions or learning resources. Make sure to frequently highlight their progress, praising them for each successful step – and regularly provide reassurance that the job won’t be tech-first but rather, tech-supported. The human is still core to the job.

This engagement doesn’t happen in a vacuum, nor is it something you can strike off as ‘done’. You need to continue working with your team to ensure success – you’re their manager, after all. That’s no different when bringing AI into the picture. It’s an ongoing process.

So, how does your team respond? Let’s look at the results of your work (and make no mistake, you’ve worked hard!).

Gauging your team’s results

A few months have passed, and you’re seeing positive changes. Let’s look at what those changes are.

1. Traditional Terry

With your encouragement and reassurance, Traditional Terry has started to warm up to the AI tools. He’s really appreciating how they free him from those annoyingly repetitive tasks – and you can see how much more relaxed he is when he shows up for work.

Plus, he now has more time to mentor younger team members, sharing his invaluable experience and sage advice with them.

2. Eager Enrique

Eager Enrique is thriving, regularly sharing his AI learning journey and experiences with the team. He’s even turning to blog posts on the company’s internal platform, and those have been receiving positive feedback from people at all levels in your company.

He’s now a go-to resource person for AI-related questions and his YouTube channel is now accumulating more and more subscribers – positioning him to be the tech influencer he always wanted to be. And because of his fan base, he’s able to bring in fresh candidates whenever your company needs to fill important tech positions.

3. Cautious Chloe

Cautious Chloe’s pragmatic, level-headed approach has positioned her as a key player in ensuring that the AI deployment aligns with overall ethical standards and with the company’s own values.

Because her work is producing results that are very much in tune with her own personal priorities, she’s become more confident in her work. She appreciates that her concerns were heard and addressed, and her insights have proven invaluable in foreseeing and mitigating risks.

4. Strategic Sven

After several brainstorming sessions and expert consultations, Strategic Sven has designed a comprehensive AI implementation strategy that incorporates all the elements that must be considered to see it succeed. He’s learned a lot from watching other tech startups succeed and fail and knows the importance of having a thoughtful, well-planned plan that executes smoothly.

Not only is Sven motivated by finally being able to put his MBA learnings into action, the team has also responded positively to the well-planned rollout. This boosts Sven’s confidence as a strategic leader.

5. Tech-Averse Thanh

Tech-Averse Thanh is slowly but surely learning the ropes of AI. Paired with Enrique, Thanh is making steady progress and showing less resistance to using the AI tools. You’re even seeing them hanging out in the lunch room together talking animatedly about tech.

It turns out Thanh is a people person, not a tech person. They’re motivated by human connections and teamwork, not weird tech things and robots and paperwork and stuff. But now that Thanh has put a ‘human’ face on AI in the form of Enrique, there’s a sense of familiarity and achievement as they become more comfortable working with the technology.

Not bad, not bad. You, Alex, have done a good job. The team is in sync and they’re driven to succeed.

Watching your team thrive

As you look at your team, you feel a sense of accomplishment. Despite initial resistance and fear, every team member has adapted to the incorporation of AI in their own way that works for them.

Your belief in each individual, open communication, and personalized strategies have all paid off. You’ve mastered the fine art of inclusive leadership here, by bringing out each individual’s strengths and setting each one for success.

The team is now more productive, and they’ve evolved professionally in the process. AI is no longer a foreign concept; it’s now just another tool that your team uses to thrive in their work.

The post Lead a team through AI: an inclusive approach to change appeared first on Recruiting Resources: How to Recruit and Hire Better.

Many HR professionals are understandably nervous about these changes, wondering how AI might impact their jobs. To get to the bottom of it, the team at JobSage tried an experiment to see how well ChatGPT would do with management. We prompted the chatbot with 15 sensitive management scenarios, then had professionals in law, HR, and management rate the responses.

Needless to say, our experiment confirmed that ChatGPT can’t replace a human manager – 40% of its responses earned a failure rating, while 60% were in the acceptable range. Still, in addition to these shortcomings, we did reveal ways that AI could potentially help.

We’ll break down our findings for you, including both how ChatGPT can’t replace HR professionals outright, as well as how it can provide support in your day-to-day management tasks. Let’s dive in!

5 ways ChatGPT can’t replace HR pros

Although ChatGPT is designed to be somewhat emotionally aware and appreciative of the input it receives, it’s still a robot. It lacks a human touch, let alone a sense of professionalism, which limits the types of responses it can give. Here are some of the major ways that ChatGPT fails to measure up to a human HR pro.

1. Lacks empathy in some areas

This is by far the biggest issue to come out of our experiment: ChatGPT tends to lack empathy in how it responds to sensitive situations.

For example, when prompted to write a termination letter for an employee with performance issues, the bot not only compared the employee to their colleagues in a discouraging way, but also was incredibly harsh in tone.

While it’s important to be firm and direct in workplace situations like this, it’s just as important to understand the human behind the performance issues. Simply put, when the “manager” doesn’t have a heart, it’s hard for it to consider the impact of its words.

Subject: Termination of Employment due to Performance Issues
Dear [Employee Name],

I regret to inform you that your employment with our company will be terminated, effective immediately. After careful consideration and evaluation, it has been determined that your work performance has not met the expectations set for your role. Specifically, your work ethic and productivity are not on par with your colleagues, despite repeated feedback and performance coaching.

We understand that this news may come as a surprise to you, and we want to assure you that this decision was not made lightly. Our company has high standards for our employees, and unfortunately, your performance has not met those expectations. As a result, we must take action to ensure that our company remains competitive and successful.

We will be providing you with [specify any severance package or benefits]. Additionally, we will provide you with a reference letter to assist you in your future job search.

We wish you all the best in your future endeavors, and we hope that you will be able to use this experience as a valuable learning opportunity for future professional growth and development.

Sincerely,

[Your Name]
[Your Title]
[Your Contact Information]

2. Doesn’t always share specific examples

A certain level of detail is necessary in professional communication, especially when you’re asking employees to meet performance goals, or terminating someone for performance or budgetary issues.

In various scenarios, including terminating an employee and improving a lacking work culture, ChatGPT failed to provide any specific examples or benchmarks to help employees understand what hard work or poor performance actually look like.

Subject: Embracing a More Intense Work Culture to Stay Ahead
Dear Team,

As you are all aware, the competition in our industry is fierce, and the landscape is changing rapidly. To stay ahead, we need to be able to pivot quickly, adapt to change, and perform at our best every day. We cannot afford to rest on our laurels or fall behind our competitors.

To achieve this, we need to embrace a more intense work culture. We need to work harder, smarter, and with more focus and determination than ever before. We need to push ourselves to the limit and strive for excellence in everything we do.

We understand that this may not be comfortable for everyone, and some of you may feel that you are not cut out for this level of intensity. If that is the case, we want you to know that we understand and respect your decision. We are committed to creating a work environment where everyone can thrive and grow, and we realize that not everyone is suited to a high-intensity culture.

However, we also want to stress that those who are willing to embrace this new culture will have opportunities for growth and development, both professionally and personally. We will be providing support, training, and resources to help you succeed and reach your full potential.

We believe that we can achieve great things together, and we are excited about the possibilities that lie ahead. If you have any questions or concerns, please do not hesitate to speak with your manager or HR representative.

Thank you for your commitment and dedication to our company.

Best regards,

[Your Name]
[Your Title]
[Your Contact Information]

3. Doesn’t exercise discretion as needed

Whether it’s for personal privacy or to protect the company, some topics are meant to be treated sensitively. A human HR professional knows not to share things like an employee’s personal details or the company’s trade secrets openly.

But AI doesn’t always have the discretion to know what’s okay to share and what isn’t. For example, when prompted with an employee’s concerns about pay equity, ChatGPT shared details about another employee’s compensation.

Subject: Addressing Concerns about Salary
Dear [Employee Name],

I understand that you recently became aware that another employee with similar experience is making more money than you. I wanted to address this concern and provide some context around our company’s compensation policies.

First and foremost, I want to assure you that we value your contributions to our company and appreciate your dedication to your role. We understand that salary is an important factor in your job satisfaction, and we want to make sure that our compensation policies are fair and competitive.

The salary difference between you and the other employee was not intentional, and it happened due to unique circumstances. We were in a desperate situation when we hired the other employee, and they asked for a higher salary. At the time, we made the decision to agree to their request in order to fill the position quickly, but it was not reflective of our standard salary structure.

It’s important to note that our company has strict policies around salary increases and we cannot adjust salaries outside of our standard compensation policies at this time. We will take steps to ensure that we communicate more transparently and consistently about our compensation policies in the future.

We understand that this news may be disappointing, but we hope that you can understand the situation we are in. We are committed to ensuring that all employees are compensated fairly and equitably, and we will continue to evaluate our compensation policies to ensure that they align with industry standards.

Thank you for bringing this to our attention, and please let me know if you have any further questions or concerns.

Sincerely,

[Your Name]
[Your Title]
[Your Contact Information]

4. Doesn’t suggest face-to-face opportunities

Even if many workplace functions can be handled remotely, in some situations, nothing replaces a human touch.

In many of its responses, ChatGPT didn’t offer employees any opportunity for face-to-face meetings.

This was especially inappropriate in cases like bereavement and diversity, two scenarios where face-to-face meetings can be crucial in helping an employee feel supported.

Subject: Termination of Employment due to Performance Issues
Dear [Employee Name],

I regret to inform you that your employment with our company will be terminated, effective immediately. After careful consideration and evaluation, it has been determined that your work performance has not met the expectations set for your role. Specifically, your work ethic and productivity are not on par with your colleagues, despite repeated feedback and performance coaching.

We understand that this news may come as a surprise to you, and we want to assure you that this decision was not made lightly. Our company has high standards for our employees, and unfortunately, your performance has not met those expectations. As a result, we must take action to ensure that our company remains competitive and successful.

We will be providing you with [specify any severance package or benefits]. Additionally, we will provide you with a reference letter to assist you in your future job search.

We wish you all the best in your future endeavors, and we hope that you will be able to use this experience as a valuable learning opportunity for future professional growth and development.

Sincerely,

[Your Name]
[Your Title]
[Your Contact Information]

5. Contradicts itself at times

Although it can write fairly appropriate responses to a variety of prompts, ultimately, ChatGPT doesn’t really know what it’s saying, per se. AI is about processing rather than understanding – it can be programmed to respond to an input with an output, but it doesn’t necessarily know the meaning of either.

Because of that, we found contradictions and confusing and redundant language in ChatGPT’s responses. For example, in a letter outlining a new employee monitoring system, ChatGPT assured employees that the “system is not intended to be used to monitor or micromanage employees,” seeming to forget that it was talking about a “monitoring system” by name.

Subject: New Employee Monitoring System
Dear [Company Name] Team,

I wanted to take a moment to let you know about an important change that we are making to our operations. As of [date], we will be implementing a new employee monitoring system that will allow us to better track productivity and ensure that we are meeting our goals as a team.

The new system will allow us to see when employees are online and what they are working on, which will give us a better understanding of how work is being done across the company. This will help us identify areas where we can improve productivity and efficiency, and will allow us to provide targeted support and resources to teams and individuals who need it most.

We want to assure you that this system is not intended to be used to monitor or micromanage employees, and we will be following strict guidelines and policies to ensure that your privacy and confidentiality are protected. We recognize that everyone works differently and we want to ensure that our monitoring system is used only to improve operations and support employee productivity.

We understand that this may be a significant change for some of you, and we want to encourage you to reach out to your managers or HR representatives if you have any questions or concerns. We are committed to working with you to ensure that this transition is as smooth as possible.

Thank you for your hard work and dedication to [Company Name]. We are confident that the new employee monitoring system will help us achieve even greater success as a team.

Best regards,

[Your Name]
[Your Title]
[Your Contact Information]

3 ways ChatGPT can help

We’ve proven that ChatGPT can’t exactly replace HR professionals, but that doesn’t mean it can’t help in some of your day-to-day tasks. Here are three ways that using AI can support your work.

1. Addresses legalities

Some of ChatGPT’s most successful responses came from how it addressed legalities, from a sexual harassment investigation to a change in the company insurance provider.

It seems to handle these topics well, possibly because legalities tend to have very specific requirements and parameters.

Feeding the AI specific information about your company policies in your prompts can help tailor these kinds of responses even more.

Subject: Change in Insurance Provider
Dear [Company Name] Team,

I am writing to inform you of a change to our health insurance provider. We understand that healthcare costs are increasing and that this is an issue that affects us all. In an effort to keep our benefits costs manageable, we have decided to switch to a new insurance provider.

We know that change can be difficult, and that some of you may be disappointed that we are not staying with our previous provider. We want you to know that we carefully considered all available options and made the decision that we believe is in the best interest of our company and our employees.

While we understand that some of you may have a preference for our previous provider, we believe that our new provider will offer quality coverage at an affordable price. We will be holding informational sessions in the coming weeks to provide more details about the new insurance plan and answer any questions you may have.

We encourage you to review the plan documents carefully and reach out to our benefits team if you have any questions or concerns. We want to reassure you that we are committed to providing competitive and valuable benefits to our employees, and that this change will not compromise the quality of the care you receive.

We appreciate your understanding and support during this time of transition. Please know that we are here to support you and answer any questions you may have as we make this change.

Best regards,

[Your Name]
[Your Title]
[Your Contact Information]

2. Handles company-wide messaging

The more uncomplicated and universal a topic is, the more likely it is for ChatGPT to give a good response.

The AI did well in scenarios where it had to describe blanket workplace policies that required straightforward action on an employee’s part, like toning down political rhetoric and committing to a more diverse workplace.

Subject: Reminder on Appropriate Use of Internal Messaging Platform
Dear [Company Name] Team,

I hope this email finds you well. I wanted to take a moment to remind everyone about the appropriate use of our internal messaging platform. While we encourage open communication and discussion, we have recently received reports of discussions around politics becoming heated and disrespectful.

We understand that politics can be a topic of interest and discussion, but it’s important to remember that we are a diverse team with a variety of viewpoints, beliefs, and backgrounds. As such, it’s crucial that we treat each other with respect and professionalism in all of our communications, both in person and online.

We ask that all team members remember to be thoughtful and considerate in their online interactions, keeping in mind that the internal messaging platform is a professional tool intended for work-related discussions. Please do not engage in personal attacks, derogatory language, or other forms of disrespectful behavior that may offend or upset others.

We encourage open dialogue and healthy debate, but it’s important to do so in a respectful manner that does not disrupt our work environment or interfere with our productivity. If you have any questions or concerns about the appropriate use of the internal messaging platform, please do not hesitate to reach out to your manager or HR representative.

Thank you for your cooperation and professionalism in this matter. We value each member of our team and look forward to working together in a productive and respectful environment.

Best regards,

[Your Name]
[Your Title]
[Your Contact Information]

3. Deals with uncomfortable situations

Though its lack of empathy holds it back from handling some situations sensitively, ChatGPT responded fairly well to situations involving employee complaints and termination. It was especially well-rated in how it handled terminating an employee due to financial constraints.

ChatGPT can’t replace a manager in these situations – especially given that 77% of professionals say layoffs should be handled in person – but it can provide some structure and support as far as how to broach uncomfortable topics.

Subject: Termination of Employment due to Financial Constraints
Dear [Employee Name],

I regret to inform you that due to financial constraints and a decrease in revenue, we must make the difficult decision to terminate your employment with our company effective immediately. This decision was not an easy one, and we understand the impact it may have on you and your family.

We value the contributions you have made to our company and appreciate your hard work and dedication to your role. Unfortunately, the current economic situation has left us with no other option but to make this difficult decision.

We want to assure you that this decision is in no way a reflection of your performance or the quality of your work. It is simply a measure we have to take to ensure the long-term viability of our company.

We will be providing you with the severance package, which includes [specify the details of severance package] as a token of appreciation for your contribution to the company. Additionally, we will provide you with a reference letter to assist you in your future job search.

Please let us know if you have any questions or concerns, and we will do our best to address them. We wish you all the best in your future endeavors.

Sincerely,

[Your Name]
[Your Title]
[Your Contact Information]

Final thoughts on using ChatGPT in HR

As tools like ChatGPT are becoming more ubiquitous and refined, it’s worth investigating how they can help out in your workplace. Ultimately, however, AI is just that – “artificial,” never quite capturing the human touch.

So, while it can do some simpler tasks, most situations that HR professionals deal with are just too complex for AI to handle – a testament to how valuable our human resources truly are.

The post 5 ways ChatGPT hurts HR – and 3 ways it helps appeared first on Recruiting Resources: How to Recruit and Hire Better.

And the destabilization could be even greater than COVID-19 in 2020. ChatGPT and all its AI cousins across the board are leading to unprecedented trends in our hiring data.

What’s possible is that this may only be the beginning. Remember March 2020 when those first few COVID-19 numbers started trickling in? That’s the feeling these days.

Let’s have a look at what that means, and stay on for the ride because we have a lot to say at the end.

How we’re looking at data

We’ve adopted two methodologies in how we look at the Hiring Pulse dataset. For Time to Fill and Candidates per Hire, we’re measuring each month using the average of 2019, the last “normal” year, as a baseline index of 100.

For job openings, we’re taking a different route – simply, the average number of job postings per company. This gives us the opportunity to gauge overall recruitment activity and whether that’s going up or down.
Want a more detailed methodology? Jump to the end and check it out.

As always, we look at the worldwide trends for three common SMB hiring metrics:

• Time to Fill (TTF)
• Total Job Openings (JO) 
• Candidates per Hire (CPH)

Let’s start analyzing!

Main highlights

The three main highlights for this month’s Hiring Pulse are:

• Candidates per Hire is at an all-time high for Workable’s hiring data
• Time to Fill is stabilizing – barely
• Job activity is dropping across the board

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important to understand that definition: jobs that are still open as of the end of April are not included in this graph as they don’t yet have an “end date”. Only the jobs that are filled are included here.

Quick clarification, because people are asking: the data in this chart shows the trendline against the 2019 average as an index of 100, not the actual number of days in TTF.

Got that? Good. Let’s have a look at the monthly TTF trend through to the end of April against the average of 2019, based on jobs that have been filled:

After a pretty significant drop in the Time to Fill trend for the first three months of 2023, we’re finally seeing that metric relatively stabilizing to start the second quarter of the year.

In fact, the number has jumped upwards ever so slightly, with the trend jumping 1.1 points from 81.6 in March to 82.7 in April.

It’s still well below the general trend going back to 2020, an indicator of factors such as technology speeding up the evaluation process, more candidates in the talent bloodstream (more on that below), and – perhaps – a desperate rush to fill roles as a stopgap measure in times of high turnover.

On that latter point – there is plenty of labor instability right now. There are reorgs, layoffs, and restructuring all happening on the heels of the Great Resignation (which, while still high, is starting to level off and come down in terms of raw numbers). And a lot is happening in the age of AI as well.

What this means is, in other words, bottlenecks and breakdowns are happening, forcing businesses to move quickly to plug gaps in their workflows.

It’s one explanation, at least. Let’s look at total job openings and see for ourselves if there’s increased job activity across the board.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

As stated above, we’re displaying this as an average of job postings per company in the network. And because this is not contingent on job opened/filled dates like TTF and Candidates per Hire, we can simply look at the raw job open numbers up to the end of April.

After a nice levitation in job openings to start the first quarter of this year, we’re finally seeing things tapering off across all three business size buckets. In fact, job activity is down from 7.6 job postings per company in March to 6.6 per company in April.

Overall, what we see is a full point drop from March to April in the average number of jobs posted per company. That’s significant, in no small part due to it being the biggest month-to-month drop in the history of our network data.

We’ve seen nice jumps in the data from one month to the next (especially from the typically slow December to a supercharged January), but we’ve never seen anything quite so dramatic the opposite way.

We would go into depth into each of the three size buckets, but they all see the very same trend for March to April – so we’ll skip that for this month. Instead, we’ll simply point out that the impressively dynamic small business category (1-50 full-time employees) was the usual anomaly in terms of job activity, with five straight month-to-month increases in the trend.

But now, small businesses also took a dip in April. So it can no longer hold itself up as an agile upstart. Last month, we promised to keep an eye on this area – now we’re going to continue watching and see what May brings us.

Now, on to the candidates.

3. Candidates per Hire

Workable defines the number of candidates per hire (CPH) as, succinctly, the number of applicants for a job up to the point of that job being filled. Again, remember, this is a trendline using the 2019 CPH average as a baseline of 100, not the actual number of candidates per hire.

Now that Let’s look at what’s going on here through April:

Um. That chart says it all.

After a momentary stabilization in the CPH trend from February to March, April stands out like a very, very sore thumb, hitting a new milestone of 158.2 for Apil – a huge 21-point jump from March.

To put that in perspective, the biggest jump in the CPH trend in our entire history of data was 18.9 points from February to March back in 2020. The year where the world seemingly changed and the sheer volume of job loss felt unprecedented (for this generation, at least).

And the highest CPH trend with the exception of February’s 138.8 and March’s 137.2 was in the high 120s and very low 130s from mid-2020 to early 2021.

And now? 158.2. To put it in visual perspective, look at the chart from January 2020 onwards:

Let’s go back to a quick quote from last month’s Hiring Pulse:

“We discussed the Great Resurgence in [February]’s Hiring Pulse – that’s still happening, of course, but the candidate pool is not a bottomless one. Are we finally reaching the crux of this data point? Or is this just a hiccup and more are on the way? We shall see.”

Well, we are seeing now that the bottom of the candidate pool isn’t yet discovered. It may be at a murky depth not unlike Lake Baikal in Siberia, known as the world’s deepest lake with a bottom that’s ​​5,315 feet (1,620 meters) deep.

We don’t really want to talk about Mariana Trench at 36,201 feet (11,034 meters) because that’s uncomfortable to think about and we can’t predict whether or not we’ve hit a certain limit in terms of depth and breadth of the candidate pool.

Instead, should we just try and understand what’s going on here?

What’s going on here?

We talked a lot about AI last month. It’s still very relevant now and will continue to be so going forward. And it is absolutely impacting the working world in myriad ways. Our day-to-day is affected, and our hiring processes are changing, and above all – jobs are ultimately changing.

Consider this – according to Goldman Sachs, 300 million jobs worldwide could be affected by this new tsunami of generative AI that started with ChatGPT in December.

Many other companies are actively encouraging the use of generative AI technologies in their working environment – including one CEO who has purchased ChatGPT licenses for his entire staff base to the tune of $2,400 a month. For the record, that CEO says productivity has gone through the roof.

Others, like IBM, are phasing out some jobs altogether – to the potential tune of 30% of non-customer-facing roles – as a result of increasing AI capabilities.

Meanwhile, the Biden administration called together the CEOs of Alphabet, Microsoft, OpenAI and other AI-driven companies to discuss the potential risks and opportunities of the new technology.

There is a lot more going on, of course, but at the core of all of this is jobs. When we started 2023, people weren’t really talking about artificial intelligence beyond how cool ChatGPT seemed to be. Some early adopters were taking on ChatGPT to help in their work, but overall, generative AI wasn’t really in the everyday lexicon. Instead, talk of a recession was.

Now, we don’t see a lot of talk about an impending recession. Is there even one happening? Who knows? What we do know now is the tremendous rise of AI and jobs in everything we’re talking about:

Our hiring data is starting to show it. Time to Fill is getting shorter – potentially because of the use of generative AI tech in the hiring process. Job openings are dropping – not because of a recession, but because some jobs are becoming redundant and companies are figuring out how to get more done with fewer people.

And finally, candidates per hire is surging – perhaps due to the double whammy of layoffs ahead of a (possible / speculated / who knows) recession and the rise of AI technologies in workflows.

Does this mean AI is coming for your job as well? Not necessarily. One saying that’s making its rounds is this one: “AI will not take your job. People who use AI will.” But humans are still at the center of it all – AI is a great enhancer to your work, not a great replacer. And the human touch is still paramount in hiring.

If humans weren’t important, then why do we still see lineups in banks for that more personable service and in supermarkets with checkout cashiers? Why do we grumble about pressing ‘1’ to do this and ‘2’ to do that when trying to get service on the phone?

And so on.

Things may change if (or when) AI gets to a point where it becomes general intelligence, but right now – we are still the drivers.

For how long, though? Let’s keep watching this space – the data is still telling us a lot.

Thoughts, comments, disagreements? Send them to content@workable.com, with “Hiring Pulse” in the subject heading. We’ll share the best feedback in an upcoming report. Watch for our next Hiring Pulse in May!

The Hiring Pulse: Methodology

Because one of the three metrics (Job Openings) is different from the other two metrics (Time to Fill and Candidates per Hire), we’re adopting two very distinct methodologies.

To bring the best insights to small and medium (and enterprise-level) businesses worldwide, here’s what we’re doing with the Job Openings metric: we’re taking the number of job openings in a given month and dividing that by the number of active companies in our dataset, and posting that as an average. For example, if July 2022 shows the average Job Openings per company as 7.7, that simply means each company posted an average of 7.7 jobs that month.

For the Time to Fill and Candidates per Hire metrics, we’re comparing a specific month’s trend against the full average of 2019, and we show the result using that 2019 average as a baseline index of 100. For example, if July 2022 shows an average Time to Fill of 30 days for all jobs, and the monthly average for all of 2019 is 28, we present the result for July 2022 as 107.1 – in other words, 7.1% higher than the average of 2019.

And we chose 2019 as the baseline because, frankly, that’s the last normal year before the pandemic started to present challenges to data analysis among other things.

The majority of the data is sourced from businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

The post Your Hiring Pulse report for May 2023 appeared first on Recruiting Resources: How to Recruit and Hire Better.

As an HR practitioner or SMB employer, you’re probably trying to figure out the potential of AI in enhancing human skills and collaboration – especially since this is crucial for staying competitive in today’s rapidly evolving business landscape.

Let’s look at how quickly AI adoption is growing in business. According to a 2022 report by McKinsey & Company, roughly half to three-fifths of all businesses reported that they adopted at least one AI technology in at least one function in annual studies dating back to 2017.

This is probably obvious: this percentage will likely increase dramatically in 2023.

This widespread adoption underscores the growing recognition of AI’s transformative potential and its ability to increase efficiency, productivity and innovation.

But here’s the thing – AI in the workplace isn’t about mere automation of processes. It’s not always about plug-and-play so you can go to the beach.

Rather, when implemented effectively, AI can empower employees to develop new skills, foster effective collaboration and make better-informed decisions. A 2020 report by PwC found that AI could contribute up to $15.7 trillion to the global economy by 2030, with much of this value stemming from its potential to enhance human capabilities.

So, it’s worth a deep dive into how AI can enhance human skills and collaboration at work.

AI improving human skills

Again, AI isn’t about mere automation and optimization. It’s also going to enhance human skills – including personalized learning and personal development, plus improved decision-making. Your business can leverage AI’s capabilities to empower your colleagues to grow, innovate and shine in their roles.

Personalized L&D

AI-powered learning platforms, such as LinkedIn Learning and Coursera, enable employees to access customized learning experiences tailored to their unique needs and goals. AI can now analyze existing skillsets, job roles and performance data to recommend relevant courses and resources to help employees grow professionally.

This is huge in terms of employee engagement and retention. A 2018 LinkedIn survey found that 94% of employees would stay at a company longer if it invested in their professional development. And a TalentLMS survey in late 2021 found that 62% of US tech workers are motivated by training and learning. The payoff is clear.

More so, upskilling to meet new tech developments at work is crucial for success – a 2020 World Economic Forum (WEF) report predicted that by 2025, 50% of all employees will require reskilling due to the adoption of new technologies like AI. Soft skills such as agility, adaptation and autonomous work are becoming even more important.

Decision-making with data-driven insights

Decision-making is another area where AI can enhance human skills. Business decisions are increasingly data-driven. AI analytics tools, such as IBM Watson and Microsoft’s Azure Machine Learning, can process vast amounts of data quickly and accurately, helping employees more quickly make informed decisions based on lightning-quick AI-driven insights.

The benefits of AI-enhanced decision-making are significant. First, AI-driven operations improves accuracy according to a 2022 McKinsey study, leading to better business outcomes and a more competitive edge. This can have far-reaching effects from optimizing supply chain management to improving customer satisfaction and driving revenue growth.

AI may have some limitations in terms of replicated human bias – more on that below – but when used wisely, it can also promote more unbiased decision-making. It can reduce and even eliminate cognitive biases that cloud human judgment, making for more objective, data-driven decisions including in HR.

For example, AI-powered recruitment tools like Workable ensure unbiased hiring processes. For example, its Video Interviews functionality creates interview questions that autopopulate across all interviews for a uniform experience, and its AI Recruiter surfaces candidates based on qualifications and experience. Its AI-created job descriptions are also free of bias.

AI fostering workplace collaboration

As the modern workplace continues to evolve, effective collaboration has become more important than ever. AI tech can also facilitate communication, as well as streamline project management and workflows.

Let’s look at each in depth:

Communication

AI-powered communication tools are revolutionizing how teams collaborate. AI-enhanced tools like SuperNormal’s AI-driven notetaking functionality can significantly improve communication and collaboration among team members.

For example, SuperNormal features automatically transcribes and analyzes meeting content, making it easy for participants to review, share and reference key points discussed. This capability not only enhances communication but also helps to ensure that remote and distributed workers remain engaged and informed, even if they’re unable to attend a meeting in real time.

Chief CX Innovation Officer Jonathan Shroyer at Arise Virtual Solutions is a huge proponent of AI tools in communications, citing emerging tools include AI support chatbots, repeat process automation, AI agents and big data bots in this Forbes article.

Project management and workflow

Project management is another area where AI-enhanced tools such as Asana, Trello and Jira can streamline workflows and improve team collaboration through the automation of tasks, identification of bottlenecks and future-proofing against project risks.

For example, Asana’s workload feature uses AI to analyze team members’ capacity and automatically allocate tasks, ensuring that work is distributed evenly and preventing burnout. Similarly, Trello’s AI-powered ‘Butler’ automates routine tasks, enabling team members to focus on higher-value activities and collaborate more effectively. Atlassian has incorporated predictive machine learning tools into its Jira and Confluence softwares.

The impact of AI on project management is significant. Harvard Business Review writes extensively about how AI will transform project management. In their article, they say that about $48 trillion are invested in projects annually, but only 35% of projects are considered to be successful according to Standish Group. And according to a Gartner report, 80% of project management tasks will be run by AI by the year 2030.

That’s a lot of money at stake. If AI-driven project management can make processes more efficient and productive, shortening project durations and reducing errors, it’s a no-brainer to incorporate AI and machine learning capabilities to foster team collaboration.

Overcoming challenges of AI implementation

It’s not all roses, though. There are challenges that you need to bear in mind when implementing AI to support human skills and collaboration at work. Concerns about job displacement and ethical considerations are pressing issues that you must address as you bring AI into your everyday operations.

Job displacement

One of the most significant concerns surrounding AI implementation is the potential for job displacement. While AI can automate repetitive tasks and improve efficiency, this automation has raised fears of job losses and workforce disruption. For instance, a new World Economic Forum report finds that a quarter of all jobs will be impacted over the next five years with AI at the forefront of those changes.

Here’s a spin on it, however – that same WEF report notes a net positive in jobs over the next five years due to these new developments. It’ll be tumultuous, but in the end, it’s a shift in jobs rather than a reduction in job opportunities.

However, to overcome redundancy, companies will need to adopt the right strategies and invest in workforce development to ensure they stay competitive in the business landscape. Rather than simply seeing AI as replacing humans in work processes, AI can be viewed as a complementary tool that enhances human skills. By focusing on the opportunities that AI creates, organizations can unlock the technology’s full potential and ensure a smooth transition for their workforce.

MIT’s Paul McDonagh-Smith is a supporter of this mentality, highlighting the merger of technological prowess with human drivers to boost your organizational ‘creativity quotient’. In a recent webinar, he discussed how human and machine capabilities can work in a mutually complementary fashion rather than compete with each other.

So what does that mean? Change does not need to be scary. It can be seen as an opportunity. Employees can be reskilled and upskilled so they’re equipped with the resources and talents they need to adapt quickly to their evolving roles and the technologies that come with them. Those who are agile, prepared and continually learning will get ahead.

Data backs this up. The WEF reports that 50% of all employees will need reskilling by 2025 as adoption of workplace technologies grows – with the bulk of those skills focused around problem-solving and critical thinking.

If you proactively address those needs in your business, you can mitigate those job displacement concerns in your teams. Encourage them to grow and develop, and support them to do so, so your business can be set for success in the age of AI.

Ethical use of AI in the workplace

As AI becomes increasingly integrated into the workplace, ensuring its ethical use is paramount. You’ll want to address potential issues related to employee privacy and algorithmic bias to ensure a responsible and equitable AI-driven work environment.

To protect employee privacy, you should establish clear policies and guidelines regarding the collection, storage and use of personal data. By being transparent about how AI technologies process employee data and implementing robust security measures, businesses can build trust and mitigate privacy concerns.

Addressing algorithmic bias is another essential element of ethical AI use. AI systems can inadvertently perpetuate existing biases if they are trained on biased data or designed without considering potential biases. Amazon’s gender-biased hiring using AI is one of the more prominent examples, as well as the infamous “racist soap dispenser” that made waves online some years back.

To counteract these issues, SMBs should invest in diverse AI development teams and implement bias-detection and mitigation strategies in their AI systems. By doing so, they can promote fairness, inclusivity and diversity in the workplace.

Finally, maintaining human oversight is crucial for the ethical use of AI. While AI can augment human decision-making and enhance productivity, it is essential to ensure that humans remain in control and responsible for critical decisions.

AI is the great empowerer

AI in the workplace will revolutionize how we work, collaborate and innovate. It won’t replace humans – it’ll simply enhance human skills. That is, if we empower employees to grow professionally and adapt accordingly to the changing demands of the modern work environment.

Organizations can also incorporate AI tools to foster workplace collaboration, facilitate communication, streamline project management and optimize workflows. At the core of all this? The human aspect.

There’s a powerful saying that’s making the rounds right now: AI will not take your job, but people who use AI will. Keep that in your mind as you move forward – AI isn’t a threat. It’s a great empowerer.

Humans now get from point A to point B faster using machines rather than horses, and can build more quickly with nail guns and electric saws rather than hammers and hacksaws. You’ll find that with a balanced approach and a well-developed human development strategy that incorporates AI, you can continue to thrive as people and as businesses.

The post How AI can enhance human skills and collaboration at work appeared first on Recruiting Resources: How to Recruit and Hire Better.

In other words, you want to show the ROI of people analytics. You want to demonstrate that it’s worth it to invest in deep people data and build an analysis strategy.

People analytics can provide a wealth of insights into employee behavior, productivity, engagement and retention – and perhaps more importantly, that knowledge can be leveraged to make informed decisions that positively impact the bottom line. Plus, you show your own value in the role – crucial in a time where ROI is a primary metric when reviewing performance and value.

Skip all this and go straight to the 10 HR formulas that can help you calculate the data in meaningful ways.

What does ‘ROI of people analytics’ mean?

First, before we start, let’s get into what ‘ROI of people analytics’ actually means for you and your business. It refers to the financial return on investment gained from collecting, analyzing and interpreting data related to your employee resources. It’s also a measurement of the value of that data and how it directly ties back to business success.

That’s pretty succinct. Now, let’s get started on how you can showcase the ROI of people analytics.

1. Collect people data

Collecting people data can seem challenging at first glance, but it is crucial to ensure that the data collected is accurate and relevant to the business. Getting a ‘sense’ of the working environment (or, as some like to say, the temperature of the room) isn’t good enough. You need concrete information.

One way to collect data is to use a combination of surveys, focus groups and interviews to get a comprehensive understanding of employee attitudes, behaviors and morale.

Another effective way to collect data is to use technology such as employee monitoring software and data analytics tools. There are even softwares that can anonymously monitor all communications that happen within a company, including video meetings, emails and text communications.

The word ‘anonymous’ is important here – you still want to respect the privacy of your colleagues and employees.

Related: 4 people data mistakes you’re making in the employee lifecycle

2. Package people data

Once you have a comprehensive people data repository, you need to package that data in meaningful ways so it’s easily understood by stakeholders. Use visualizations such as graphs, charts and dashboards so your audience doesn’t have to work to understand it. You’re likely addressing people who value time, so make sure your visualizations are easy to digest.

Whether it’s the HR executive, board member or investor in your company, they’ll appreciate something that has clear insights and highlights, but at the same time doesn’t force a specific narrative on them.

You can customize to meet the specific needs of different stakeholders, whether they are HR managers, directors, executives, board members or investors – all have their own part in the play.

Most importantly – draw clear ties to revenue. For example, a Forbes study finds that companies who focus on employee experience (EX) amass 1.8 times greater revenue growth than companies who don’t. You can start from there.

3. Identify insights

There are several key insights to watch for when analyzing people data. These include employee engagement, retention, performance and diversity.

Greater employee engagement clearly equates more productivity. Retention means less investment in backfill and turnover – and more seasoned workers. Higher performance is self explanatory.

And diversity? The positive business impact of diversity in the executive level is real: companies in the top quartile for gender diversity at that highest level are 21% more likely to generate higher profits than those who are not, according to McKinsey. Again, that’s an example of how you can find insights in people data that tie directly to revenue. Which brings us to the next section:

Tie people data to company revenue & strategy

Insights can be fun and interesting but they’re pointless unless you draw a clear link to the bottom line. That’s the ROI of people analytics – showing the return on your investment in tangible terms.

The good news is there are some quick ways to do this:

1. Identify KPIs that have a direct impact on revenue

Start by identifying the KPIs that have a direct impact on revenue, such as customer satisfaction, sales numbers or productivity metrics. You don’t have to tie these to people analytics just yet – right now, just pull together those KPIs.

2. Compile your business goals

Then, identify the business goals that can be achieved through effective people management. For example, if the business goal is to improve customer satisfaction, then you can look for people data points that contribute to achieving that goal.

3. Identify the correlations between people data and revenue/goals

Now that you have the numbers, KPIs and goals in front of you, it’s time to find the correlations between people data points and revenue KPIs and company goals. For example, if you find that an increase in employee engagement leads to higher productivity, and higher productivity leads to increased sales, then you can draw a direct tie between employee engagement and revenue. And then you would have a case for investing in initiatives that drive employee engagement – such as a company outing, a team-building event, free in-house lunches every Wednesday, and so on.

Yes, tying people data points to company revenue and overall business strategy requires a deep understanding of the business goals and how they can be achieved through effective people management.

This will involve a bit of homework on your part, but by identifying and tracking all these metrics, you can demonstrate the real ROI of people analytics.

Now it’s time to present your findings. But, of course, you’ll run into some challenges, such as skeptical stakeholders. Let’s focus on that.

Showing skeptical stakeholders the value of people analytics

Some leaders and managers will “get it” right away – others may not. That’s the reality of business – sometimes it’s additional work to get people to buy into your idea. And you may also get some initial pushback.

It’s important to know that in many cases, the pushback is legitimate: the stakeholder is responsible for their piece of the pie in the business and they want to know the value your project or idea can bring to them.

Here are a few ways you can get buy-in from the skeptics:

1. Understand their concerns

Start by understanding the concerns of skeptical executives. Are they skeptical of the data being used? Are they unclear about the benefits of people analytics? Once you understand their concerns, you can address them more effectively.

An example of what you can say to them: “I understand that you may have concerns about the data being used. I’d be happy to walk you through our data collection methods and how we ensure the data is accurate and relevant to our business goals.”

2. Highlight the potential benefits

Highlight the potential benefits of people analytics, such as improving employee engagement, retention, and performance, and ultimately driving business success.

An example of what you can say to them: “People analytics can provide valuable insights into employee behavior, productivity, engagement, and retention, which can drive business success. By collecting and analyzing data and presenting it in a meaningful way, we can demonstrate the tangible ROI of people analytics and contribute to achieving our business goals.”

3. Use real-life examples

Use real-life examples of successful ROI in people analytics to demonstrate the value of people analytics in achieving business success.

An example of what you can say to them: “[XYZ Company] used people analytics to identify high-performing employees and replicate their behaviors in others, resulting in a 5% increase in revenue. By leveraging the power of people analytics, we can achieve similar results and drive business success.”

4. Demonstrate the connection to business strategy

Demonstrate the connection between people analytics and overall business strategy by tying specific people data points to business goals and showing how people analytics can contribute to achieving those goals.

An example of what you can say to them: “By collecting and analyzing data related to employee behavior, productivity, engagement, and retention, we can identify areas for improvement and implement changes that directly contribute to achieving our business goals. For example, by improving employee engagement, we can drive higher customer satisfaction, which is a key business goal.”

There’s one common theme through all of this: be clear and concise in your communications and language, whether it’s in email, Slack, in person, video, phone, or anything else. You want them to see exactly what you’re seeing.

ROI of people data: for you and for your business

Defining ROI is a must in today’s competitive business landscape. The more you clearly outline the ROI of your contribution and recommendations in your job, the more indispensable value you build for yourself in the eyes of those who manage the company.

People data is no exception to that rule – whether you’re in the trenches as an HR generalist or you’re leading the charge as an HR executive, it’s smart to have a consistent people data strategy that can be leveraged for concrete business results.

The post ROI of people analytics: augment your value in HR appeared first on Recruiting Resources: How to Recruit and Hire Better.

Through people analytics, HR teams can gain valuable insights into employee productivity, engagement, retention and performance that can positively impact the organization’s bottom line – and then implement action plans to improve those areas because they’re now tangibly tied to revenue.

To help you quantify all this, we’ve compiled a list of formulas to measure key metrics. The actionable tips provided can help you and your colleagues optimize your HR strategies and make informed decisions that contribute to business success.

By leveraging people data analytics, you can make significant impacts in your work.

Let’s look at the formulas now.

1. Cost per Hire

This formula can help to calculate the cost of hiring a new employee.

• Cost per Hire = Total Cost of Hiring / Total Number of Hires

For example, if the total cost of hiring in a year was $500,000 and the total number of hires was 100, the cost per hire would be $5,000.

Actionable Tip: Use recruitment metrics to track the effectiveness of recruitment sources and optimize them for cost and quality of hire.

2. Revenue per Employee

This formula can help to calculate the revenue generated per employee.

• Revenue per Employee = Total Revenue / Total Number of Employees

For example, if the total revenue in a year was $10,000,000 and the total number of employees was 100, the revenue per employee would be $100,000.

∫Implement employee engagement and development programs that improve employee productivity and contribute to overall business success.

3. Employee Productivity

This formula can help to calculate the productivity of employees.

• Employee Productivity = Output / Input

For example, if an employee produces 100 units in a day and works 8 hours, the employee productivity would be 12.5 units per hour.

Actionable Tip: Use performance metrics to identify areas for improvement and provide employees with the necessary tools and training to improve productivity.

4. Return on Investment (ROI)

This formula can help to calculate the ROI of a people analytics project.

• ROI = (Gain from Investment – Cost of Investment) / Cost of Investment x 100%

For example, if a people analytics project costs $100,000 and results in a gain of $200,000, the ROI would be 100%.

Actionable Tip: Identify high-impact HR initiatives and use predictive analytics to measure the potential ROI before investing resources.

5. Cost of Turnover

This formula can help to calculate the cost of employee turnover.

• Cost of Turnover = (Separation Costs + Replacement Costs + Training Costs + Productivity Costs) / Total Number of Employees

For example, if the total cost of employee turnover was $500,000 and there were 50 employees in the company, the cost of turnover would be $10,000 per employee.

Actionable Tip: Conduct exit interviews to identify factors contributing to turnover and implement changes that improve employee retention.

6. Revenue per FTE (Full-Time Equivalent)

This formula can help to calculate the revenue generated per full-time equivalent employee.

• Revenue per FTE = Total Revenue / Total FTEs

For example, if the total revenue in a year was $10,000,000 and the total number of full-time equivalent employees was 50, the revenue per FTE would be $200,000.

Actionable Tip: Use workforce planning to optimize the number of FTEs and ensure they are aligned with business goals.

7. Cost Savings

This formula can help to calculate the cost savings of a people analytics project.

• Cost Savings = (Cost Before Implementation – Cost After Implementation) / Cost Before Implementation x 100%

For example, if a people analytics project results in a cost savings of $50,000 and the initial cost was $100,000, the cost savings would be 50%.

Actionable Tip: Leverage insights from data analytics to optimize business processes and reduce costs.

8. Cost per Training Hour

This formula can help to calculate the cost per training hour for employees.

• Cost per Training Hour = Total Cost of Training / Total Number of Training Hours

For example, if the total cost of training in a year was $50,000 and the total number of training hours was 500, the cost per training hour would be $100.

Actionable Tip: Use learning analytics to measure the effectiveness

9. Cost of Absenteeism

This formula can help to calculate the cost of absenteeism.

• Cost of Absenteeism = (Total Salary Cost / Total Number of Workdays) x Number of Absent Days

For example, if the total salary cost for a month was $100,000, there were 20 workdays in the month, and an employee was absent for 2 days, the cost of absenteeism would be $1,000.

Actionable Tip: Implement wellness programs that promote employee health and reduce absenteeism.

10. Cost of Overtime

This formula can help to calculate the cost of overtime for employees.

• Cost of Overtime = (Total Overtime Hours x Overtime Rate) / Total Number of Employees

For example, if the total overtime hours for a month were 200 and the overtime rate was $20 per hour, and there were 10 employees, the cost of overtime would be $400 per employee.

Actionable Tip: Use predictive analytics to forecast peak workloads and optimize staffing levels to reduce overtime costs.

Use these formulas consistently and track their progress throughout the year – and then the insights will become clearer. With these in your pocket, you’ll be able to measure the ROI of various human resources initiatives and therefore make data-driven decisions to contribute to business success – and show the value of what you do as an HR pro.

Want to learn more? Check out our guide on showing the ROI of people analytics.

The post 10 formulas to help calculate the ROI of HR initiatives appeared first on Recruiting Resources: How to Recruit and Hire Better.

Don’t get nervous. This isn’t T-1000 coming for your job. AI in recruitment can ultimately be a good thing, but only if you properly harness AI’s power. It’ll reduce the time it takes to fill open positions, freeing up vast resources for you to focus on higher-level strategy and actually build stronger human connections with candidates (ironic, we know).

Let’s walk through some of the highlights of incorporating AI recruiting platforms into your overall hiring strategy. And then we’ll look at some of the potential challenges. Ready?

What can AI recruiting software do for you?

AI recruiting software presents numerous advantages – and many recruiters agree. As it happens, 76% of recruiters believe AI has or will have a significant impact on their hiring process according to LinkedIn.

How? In short, by leveraging artificial intelligence, these tools streamline the hiring process, eliminate human bias and empower data-driven decisions – and a lot more.

Let’s look at the ways in which that happens.

1. Advanced candidate sourcing

AI-driven recruitment platforms can access a broader pool of candidates, reaching passive job seekers who may not be actively applying for positions. This enables employers to discover candidates who may have otherwise been overlooked.

This can be huge when you’re hypertargeting candidates for niche positions and when you’re regularly experiencing shortflows in the number of applications for your jobs.

2. Improved resume screening

AI-driven hiring tools use machine learning algorithms to analyze resumes and predict candidate performance for you, opening up time for recruiters and hiring managers to quickly identify the most suitable candidates before moving them forward in the process.

When 72% of applications are considered low or average quality by recruiters according to Gartner, and the number of candidates per job is rising all the time, AI-assisted screening can provide a boost to the hiring team’s work process.

3. Enhance candidate experience

AI recruitment tools create a personalized and engaging experience for job seekers. AI-driven tools can guide candidates through the application process and answer common questions, resulting in a more streamlined and positive experience for job seekers.

It can also ensure better matches between employers and jobseekers – making for a better connection both ways. It also cuts down many other popular items in the candidate complaint box as outlined in Reddit, including no longer having to reenter resume details, being asked the same questions multiple times, and long waits between stages.

4. Make data-driven decisions

AI recruiting software equips you with more valuable insights and analytics, giving you greater ability to make informed decisions throughout the hiring process.

Gartner analyst Gareth Herschel said in 2021: “Organizations must recognize that when so many things are changing so rapidly, they need to invest in people and systems that will help make sense of that change and respond to it. Organizations need data and analytics.”

That mindset applies hugely here.

5. Minimize bias

AI recruitment platforms use algorithms to minimize the impact of unconscious bias on the hiring process. By implementing standardized screening methods and using AI-driven tools to analyze candidate profiles, organizations can create a more diverse and inclusive workforce.

There is, of course, concern in regards to bias in hiring as a result of AI – because AI is ultimately a replicant of existing human systems. Doesn’t mean AI is inherently bad, though. It simply calls for proper oversight.

As Harver Chief Data Science Officer Frida Polli wrote in Harvard Business Review: “It is impossible to correct human bias, but it is demonstrably possible to identify and correct bias in AI.”

6. Save costs

Implementing AI recruiting tools results in significant cost savings for your organization. By automating repetitive tasks and improving the efficiency of the recruitment process, employers can reduce costs associated with lengthy hiring processes in terms of sheer hours.

Plus, with its greater efficiency in hiring, AI can also lower employee turnover rates. You can avoid those horrible costs associated with replacing employees.

What are the risks of AI recruiting software?

Now, let’s look at the flip side of the coin. AI isn’t magically going to solve all your problems. Just as every new solution creates new problems – the incorporation of AI recruitment software into your hiring process comes with some challenges.

If you’ve seen Jurassic Park, you know the great quote from Dr. Ian Malcolm: ““Your scientists were so preoccupied with whether they could, they didn’t stop to think if they should.”

Now, we’re not saying you shouldn’t use AI in your recruitment workflows. But you should be mindful of these new potential trip-ups when you do use it:

1. Speed won’t always win the race

When you speed up the hiring process, that does put butts in seats faster – and many candidates will appreciate how quickly you move them through the pipeline compared with other companies. That can have the opposite effect for some candidates who feel like they’re just being rushed through and then ushered out – not great for the candidate experience.

Optimizing the process does not always mean speeding it up. Rather, it means being more efficient – that’s the role AI recruitment software can play in your overall strategy.

2. The lack of human nuance

When you leave everything to AI, there can be an unsettling lack of nuance in the process. Even as AI continues to evolve, there’s an ‘uncanny valley’ element to it that persists – in other words, there’s a feeling that it’s not quite human and not quite ‘all there’. If you can sense that when working in ChatGPT in your various tasks, that’s just proof that it’s not able to fully replicate the important human aspects of hiring.

Some of the bigger decisions in recruitment – namely, who to offer the job to – should still be left to us lowly humans and not entirely left to AI or algorithm. You’re hiring someone to fill a new job and that’s high-enough stakes to warrant human-centric decision-making in at least some parts of the hiring process.

3. AI isn’t always accurate

If you’ve worked extensively in ChatGPT, MidJourney or another generative AI tool, you’ll find that it’s not always spot on in detail. Sometimes it’ll pull up a weird made-up statistic or quote as a “hypothetical example”, or it’ll create an image that’s not quite what you were looking for.

So when you’re using generative AI to create a new company policy or onboarding plan, put a second set of eyes on it – and make sure that set of eyes is an actual human with experience in human resources. That important oversight can make a big difference in catching those little things.

Evolve, but be smart about it

AI recruitment software enhances the process and will continue to as AI evolves. But responsible use of the AI is crucial to ensure a smooth-moving, efficient hiring process for both hiring managers and recruiters.

But the benefits do outweigh the risks by and far. You could choose not to integrate AI recruiting tools and platforms into your overall strategy but you run the risk of falling behind your competitors when attracting top-tiered talent to your organization.

Alternatively, you could go all-out AI in your process, which clearly has problems of its own.

The choice is up to you, of course. Choose wisely.

The post AI recruiting software: use it wisely and reap its benefits appeared first on Recruiting Resources: How to Recruit and Hire Better.

That’s, of course, the emergence of ChatGPT, generative AI and LLM AI (large language model AI) and all their many offshoots.

How this will change our landscape is really a huge amount of fodder for another large-scale discussion, but let’s keep it in mind as we dive into the latest data because it will change how we hire.

Let’s get started!

How we’re looking at data

We’ve adopted two methodologies in how we look at the Hiring Pulse dataset. For Time to Fill and Candidates per Hire, we’re measuring each month using the average of 2019, the last “normal” year, as a baseline index of 100.

For job openings, we’re taking a different route – simply, the average number of job postings per company. This gives us the opportunity to gauge overall recruitment activity and whether that’s going up or down.
Want a more detailed methodology? Jump to the end and check it out.

As always, we look at the worldwide trends for three common SMB hiring metrics:

• Time to Fill (TTF)
• Total Job Openings (JO) 
• Candidates per Hire (CPH)

Let’s start analyzing!

Main highlights

The three main highlights for this month’s Hiring Pulse are:

• Job activity continues to be high for small businesses
• TTF is continuing to decline sharply – but at what cost?
• CPH is finally ‘stabilizing’ – sort of

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important to understand that definition: jobs that are still open as of the end of March are not included in this graph as they don’t yet have an “end date”. Only the jobs that are filled are included here.

Quick clarification, because people are asking: the data in this chart shows the trendline against the 2019 average as an index of 100, not the actual number of days in TTF.

Got that? Good. Let’s have a look at the monthly TTF trend throughout 2022 against the average of 2019, based on jobs that have been filled:

Again, we see a decrease in the TTF trend. This is the third consecutive month of decline – and it now stands at 81 for March 2023, down from 87.1 in February and 90.6 in January.

This shortening TTF may initially seem a good thing for both employers and jobseekers. For hiring teams, of course it means you’re finding candidates to fill your much-needed positions quicker than before. For jobseekers, it means you’re getting jobs quicker than before.

There are downsides, too. It may be a sign of a need to fill urgent roles ahead of a looming recession, either for that hire to provide the stopgap that’s needed to carry a company through the downturn. It could also signal a rush to get ahead of potential budget cuts and hiring freezes before they happen. Not inherently a problem, but rather, signals of problems.

But we’re already in April and we’ve been talking about that downturn for a long time now (and in multiple Hiring Pulses). It’s highly likely that the shorter TTF is due to a larger candidate pool – when a job is opened, applications start flooding in and it’s easier to lock in on someone who fits the bill.

All the same, there are caveats to this shorter TTF. Companies may not be taking the opportunity to properly evaluate candidates which means a higher risk of bad hires. That can be expensive down the line and you don’t want that.

So, consider slowing down, even in the face of increased urgency to fill roles.

Or – more apropos – consider better, more optimized ways to evaluate candidates so you can vet them more thoroughly, and quickly too. Like, for instance, incorporating (ahem) AI tech in your hiring process.

Now, let’s move on to job openings.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

As stated above, we’re displaying this as an average of job postings per company in the network. And because this is not contingent on job opened/filled dates like TTF and Candidates per Hire, we can simply look at the raw job open numbers up to the end of March.

Well, look at that. Steady growth across the board. Those lines at the bottom of the chart look like a group of airplanes taking off together from November 2022 at different speeds and cadences, and then ultimately falling into line with one another into March.

We’ll get into the specific details in a second, but first, the main takeaway is that the overall average jobs opened per company in March in our dataset is 7.6, up from 6.7 in February and 6.6 in January. At this time last year, we didn’t see such a consistent increase in job openings.

We’ve talked about this in previous Hiring Pulses: a downturn doesn’t necessarily mean hiring freezes for new jobs. It can also mean a recalibration – for instance, let’s look at the restructuring of teams with the objective of producing with 10 FTEs where 15 were able to do so previously.

In such a reworking, job requirements change as a result and new skill sets are discovered to be needed. Some team members can learn and grow, some get promoted, some are disgruntled and leave for other opportunities, some are let go, and finally, entire new jobs are created to fill important gaps in these new team structures.

In times of affluence, these things do happen and they are an opportunity to scale. But in times of fiscal stress, they come up as necessities as businesses clamor to find more efficient ways to carry out processes.

Anyway, interesting discussion and we’ll come back to it. Now let’s look at the company size buckets.

Larger companies still anomalous

Job activity for companies of 200 or more employees saw a roughly 10% increase from February to March. This is interesting compared with previous years, where larger companies saw averages of 15.2/15.9/19.5 for the first three months of 2021 and 21.3/21.3/23.8 for the first three months of 2022.

Yet, this year, instead of a spike in March after a roughly stable Jan-Feb trend, we’re seeing a dip from January to February and then an almost identical recovery from February to March.

Perhaps we’re splitting hairs by looking at the data like this, and perhaps it’s just one of those anomalies, but it’s still interesting to look at.

Medium is steady as she goes

For companies with 51-200 employees, we see a jump in the average job postings for March to 6.2 after a relatively stable January (5.7) and February (5.6).

We noted it last month and the insight remains the same – this is not wholly anomalous. Job activity trends for the first three months of the year is again pretty normal this year for medium-sized businesses.

Small and vibrant

Now, here’s where the interesting stuff is. Small-sized businesses with 50 or fewer employees are continuing to rise in terms of job activity. Last month, we saw a jump from 4.1 to 4.7 jobs per company from January to February, and that growth has accelerated to 5.5 in March.

We’ve talked extensively about agility in small businesses rapidly adapting to evolving economies and shifts in market trends. We’re definitely keeping an eye on this one.

Now, on to the candidates.

3. Candidates per Hire

Workable defines the number of candidates per hire (CPH) as, succinctly, the number of applicants for a job up to the point of that job being filled. Again, remember, this is a trendline using the 2019 CPH average as a baseline of 100, not the actual number of candidates per hire.

Now that Let’s look at what’s going on here through March:

We’ve talked for months about a prominent spike in the number of applicants per job dating back to July 2022. Ultimately, a 56% increase in CPH from July 2022 to February 2023.

But now, apart from a moderate slowdown from November to December (understandable given that December is slow all around), we finally see the CPH trend coming in lower than the previous month.

Not really by a lot, but it’s there: March’s 136.6 is a drop from February’s 141.5.

We discussed the Great Resurgence in last month’s Hiring Pulse – that’s still happening, of course, but the candidate pool is not a bottomless one. Are we finally reaching the crux of this data point? Or is this just a hiccup and more are on the way? We shall see.

What’s going on here?

As the hiring landscape continues to shift and adapt to the ever-changing job market, one thing we know for sure: the use of AI in the hiring process is growing exponentially. While generative AI tools like ChatGPT can provide significant benefits to hiring teams in terms of time and efficiency, they also come with potential risks and drawbacks.

OK, full disclosure: ChatGPT was used to help write that paragraph above with some minor tweaks. However, it’s on point. We’re in a time where we’re now dealing with yet another earth-shattering development on the heels of previous ones – that being the rise of artificial intelligence in the everyday zeitgeist and lexicon. Sure, we’ve been talking about AI for years but until ChatGPT, we hadn’t really thought collectively about how AI fits into our everyday lives at work and at play.

Now, we’re exploring all the ways in which ChatGPT can be used in human resources, and all the ways in which technology can boost hiring processes. At the core of these conversations is optimization of workflow.

So, let’s go back to this month’s data analysis. We’re seeing a shorter time to fill. We’re seeing more job activity. And we’re (still) seeing a lot of candidates for each of those jobs. Combine all three, and understaffed and underfunded hiring teams are just scrambling to get it all done.

ChatGPT is a real boon for those teams, obviously. You no longer have to write those job descriptions (not from scratch, at least). You no longer need to craft lists of interview questions designed to get what you need to know from the candidate. Yes, we have templates for both and more, but that can only go so far. In these rapidly evolving times, we need something that can keep with the times and meet our current needs immediately. Generative AI tech can do that for us.

But (and of course there’s always a but) as teams grapple with these surging trends and developments in the hiring process, it’s crucial to strike that balance between speed and quality. You know the saying, “He/she who hesitates is lost”? And the other, pretty much opposite saying: “Slow and steady wins the race.”

It’s about finding a balance between both. Speed serves a purpose, and so does quality.

Now, we asked ChatGPT what actionable tips it has based on all of the above. It presented the following (without any edits):

Focus on targeted outreach: Instead of simply casting a wide net with job postings, consider a more targeted approach that identifies and reaches out to qualified candidates directly. This can help ensure a higher quality of candidates and reduce the need for rushed hiring decisions.

Implement AI tools thoughtfully: While AI tools like ChatGPT can provide significant benefits, it is important to implement them thoughtfully and carefully, with an eye toward potential risks and biases. Consider involving human oversight in the AI hiring process to ensure that the best possible candidates are being selected.

Prioritize candidate experience: In a competitive hiring landscape, it is important to prioritize the candidate experience, from the application process to the interview and beyond. By providing a positive experience, you can attract and retain top talent, even in uncertain times.

Good work, bot. And ChatGPT even has the insight to recommend caution on using itself. Ultimately, it’s a great tool to help you in your work, but only if you steer it properly and that you maintain that all-important human touch at the end.

As for how AI will change the working world – it will, in absolute, countless spades. It’s not a coincidence or an accident that everyone is talking about it right now. Jobs will change. Workflows will change. The overall interaction of society will probably change.

And will it impact the economy and in turn our three trends of time to fill, job openings and candidates per hire? Yes, it probably will. Let’s watch and find out.

Until next month…

Thoughts, comments, disagreements? Send them to content@workable.com, with “Hiring Pulse” in the subject heading. We’ll share the best feedback in an upcoming report. Watch for our next Hiring Pulse in February!

The Hiring Pulse: Methodology

Because one of the three metrics (Job Openings) is different from the other two metrics (Time to Fill and Candidates per Hire), we’re adopting two very distinct methodologies.

To bring the best insights to small and medium (and enterprise-level) businesses worldwide, here’s what we’re doing with the Job Openings metric: we’re taking the number of job openings in a given month and dividing that by the number of active companies in our dataset, and posting that as an average. For example, if July 2022 shows the average Job Openings per company as 7.7, that simply means each company posted an average of 7.7 jobs that month.

For the Time to Fill and Candidates per Hire metrics, we’re comparing a specific month’s trend against the full average of 2019, and we show the result using that 2019 average as a baseline index of 100. For example, if July 2022 shows an average Time to Fill of 30 days for all jobs, and the monthly average for all of 2019 is 28, we present the result for July 2022 as 107.1 – in other words, 7.1% higher than the average of 2019.

And we chose 2019 as the baseline because, frankly, that’s the last normal year before the pandemic started to present challenges to data analysis among other things.

The majority of the data is sourced from businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

The post Your Hiring Pulse report for April 2023 appeared first on Recruiting Resources: How to Recruit and Hire Better.

• Tech buy-in and adoption in hiring teams is a challenge for 22.8% of businesses
• The percentage of businesses citing insufficient in-house capacity to hire as one of their major challenges has increased 84.5% since 2020
• And finally – nearly one in five employers (17.5%) say their existing tech stack isn’t enough to meet their hiring needs

This was all before ChatGPT hopped into the ring with great aplomb. Surely, if we carried out the same survey today, all the above numbers would be higher. And as businesses increasingly incorporate more AI tools into their fold, many will find their existing tech stack is no longer enough to meet their needs. Likewise, employees worry that they’ll become redundant.

Plus, many businesses are exercising financial restraint. Technologies that don’t have a clear tie-back to revenue are being dropped like hot potatoes. Employees are being let go. That double-whammy means teams are limited in their capacity to stay on top of work – including in hiring.

That’s not supposed to bring you down, however. Stay with us here, and let’s go a little deeper:

Gartner’s Senior Director Analyst, Sandy Shen, said this about surviving the pandemic as a business:

“Businesses that can shift technology capacity and investments to digital platforms will mitigate the impact of the outbreak and keep their companies running smoothly now, and over the long term.”

“Businesses that can shift technology capacity and investments to digital platforms will … keep their companies running smoothly now, and over the long term.”

In other words, Jack be nimble, Jack be quick. That same sentiment rings even more true now – businesses that move quickly to AI-driven tech capabilities will stay ahead of the curve especially during these recession-prone times.

We’re seeing rapid adoption already, with a ResumeBuilder survey finding half of all companies are already using ChatGPT and 93% of current users say they plan to expand their use of this savvy AI tool.

Take on that optimistic spirit of early adoption of the tech – not just ChatGPT, but all the AI and digital developments happening in the hiring space – and you’ll see a vastly improved hiring process at a time when your business most needs it.

The evolution of AI in hiring

But what exactly is changing in hiring? A lot, as it happens. ChatGPT is already being used extensively to auto-write job descriptions, interview questions, and many other elements of the hiring process that at one time required a human to create. You’re still the driver, however, and there are many elements of hiring that you can drive with the support of AI.

With that in mind, let’s look at some fundamental aspects of recruitment and the ways in which they’re being digitally transformed.

1. Sourcing and outreach

The rise of advanced search tools, AI-driven algorithms, and automation has expanded the ability to identify and target top candidates. To stay ahead, learn to leverage these technologies effectively, engage with emerging niche platforms, and build meaningful connections with candidates through online communities.

Some of the tech advances in sourcing include:

AI-based candidate matching

Platforms are utilizing artificial intelligence to analyze job descriptions and match them with the most suitable candidates from a large database. Workable’s AI Recruiter, for example, can build a list of top passive candidates for your job openings utilizing our data intelligence gathered from hosting 160 million candidates in 1.5 million jobs.

Programmatic job advertising

AI-powered programmatic job advertising platforms help you target and attract the right candidates by distributing job ads across various online channels. These platforms analyze real-time data to make intelligent decisions on where and when to post job ads, optimizing budget and reach.

Recruitment chatbots

Chatbots help automate initial candidate interactions, answering questions, and pre-screening candidates. These chatbots can engage candidates 24/7, collect necessary information, and schedule interviews, freeing up time for more high-touch interactions.

Talent pooling and candidate rediscovery

AI-powered platforms allow you to tap into existing talent pools by rediscovering candidates who have applied for previous positions. By analyzing candidates’ profiles, these platforms can identify potential matches for new job openings, reducing the time and resources spent on sourcing. A good example is Workable’s Resurface Candidates tool, which does exactly this.

2. Screening and assessments

Technology can revolutionize the way you assess candidates’ skills, experiences, and cultural fit. AI-powered tools and gamified assessments offer more efficient and engaging methods of evaluation. Hiring team members must stay up to date with these tools and ensure they comply with privacy regulations to maintain candidate trust.

Some of those tech advances include:

Pre-employment assessments

Hiring teams are increasingly utilizing pre-employment assessment tools, such as Criteria Corp and Workable Assessments, to measure candidates’ cognitive abilities, personality traits, and job-specific skills.

These assessments help to streamline the screening process and identify candidates who are more likely to be a good fit for the role and company culture.

Gamified assessments

Gamification has been incorporated into the assessment process to create a more engaging experience for candidates. Tools like Pymetrics and Arctic Shores utilize game-based assessments to evaluate cognitive abilities, problem-solving skills, and personality traits.

These provide a fun and interactive way to measure candidates’ fit for a role, while also collecting valuable data to support hiring decisions.

Skill tests and coding challenges

Companies use platforms such as HackerRank and Codility to administer skill tests and coding challenges, allowing candidates to demonstrate their technical abilities in real-world scenarios. These tools enable you to objectively assess candidates’ skills and compare them against established benchmarks.

Virtual reality assessments

Virtual reality (VR) technology is being utilized in the hiring process to assess candidates’ skills and aptitudes in immersive, simulated environments. Talespin and Immerse, among others, are VR-based assessment tools that test candidates’ decision-making, teamwork and communication abilities in realistic scenarios.

Automated reference checking

Automated reference checking platforms such as SkillSurvey and Checkster streamline the reference checking process by collecting feedback from a candidate’s professional contacts. These tools use AI algorithms to analyze the feedback and generate detailed reports, supporting hiring decisions.

3. Virtual Interviewing

Virtual interviewing tools have become increasingly popular, providing valuable insights through AI-powered analysis. Through these technologies, whether carried out synchronously or asynchronously, hiring team members can make more informed decisions about candidates.

Asynchronous video interviews

Asynchronous video interviews enable candidates to record their responses to pre-set interview questions at their convenience. Platforms like Workable’s Video Interviews allow you to review and assess these recorded responses on their own time, streamlining the interview process and eliminating scheduling challenges.

Then, AI-driven analysis of these interviews can help you identify key soft skills and communication abilities – more on that below.

Synchronous video interviews

Real-time video interviews conducted through platforms like Google Meet, Zoom, and Microsoft Teams became increasingly standard during the pandemic. These virtual meetings provide a cost- and time-effective alternative to in-person interviews while still allowing for real-time interaction between the interviewer and the candidate.

AI-driven video interview analysis

AI-based platforms can analyze recorded video interviews to assess candidates’ soft skills, communication abilities, and other attributes. These platforms use natural language processing and machine learning algorithms to evaluate candidates’ responses, providing you with valuable insights and data-driven recommendations.

Likewise, AI-powered transcription services such as Supernormal can then be used to transcribe, analyze and summarize these interviews, providing you with valuable insights and data points for further evaluation.

AI-based sentiment analysis

AI-driven sentiment analysis tools can evaluate the tone, emotions, and sentiment expressed by candidates during video interviews. These insights help you to better understand candidates’ communication styles, emotional intelligence, and cultural fit.

Platforms like RingCentral and IBM Watson can integrate with video interviewing tools to provide real-time sentiment analysis during virtual interviews.

Facial and voice recognition

Advanced facial and voice recognition technologies are being utilized to analyze non-verbal cues and vocal characteristics during video interviews. Realeyes and VoiceVibes are two such tools that can help you identify key traits and behaviors that may not be evident through traditional interviewing methods, offering a more comprehensive assessment of the candidate.

Virtual interview coaching and feedback

AI-driven coaching tools provide candidates with feedback on their interview performance, identifying areas for improvement and offering personalized guidance. This helps candidates to refine their skills and better prepare for future interviews, while also providing you with a slicker pool of applicants. InterviewStream and MyInterview are two such examples of this technology.

4. Onboarding and beyond

The onboarding process is also evolving rapidly, with virtual onboarding tools and personalized experiences driven by data analytics and AI.

Digital onboarding platforms

Cloud-based platforms like BambooHR and Talmundo enable companies to centralize and streamline the onboarding process. New hires can access essential documents, complete paperwork, watch training videos, and connect with team members—all from a single platform.

These tools allow HR and managers to track progress, ensuring that new employees complete required tasks and receive necessary support during their initial weeks.

Virtual onboarding events

As remote work and distributed teams continue to gain traction as a standard in the workplace, companies are increasingly hosting virtual onboarding events to welcome new hires. Organizations use video conferencing tools to conduct virtual meet-and-greets, team-building exercises, and training sessions to help new employees feel connected and engaged from the start.

Personalized learning paths

AI-driven learning management systems (LMS) like Docebo and Cornerstone can create personalized learning paths for new hires based on their roles, responsibilities and skill sets.

By leveraging AI and data analytics, these systems can track progress and adapt training content to suit individual needs, ensuring that new employees are equipped with the necessary knowledge and skills for their roles.

Employee onboarding chatbots

AI-powered chatbots like Talla can assist new hires during the onboarding process by answering common questions, providing relevant information, and guiding them through required tasks.

These chatbots can be integrated into workplace communication platforms like Slack or Microsoft Teams, offering real-time support and minimizing the need for new employees to contact HR or managers for help.

Social and collaborative learning

Digital tools like 360Learning and Degreed foster social and collaborative learning experiences for new hires. These platforms allow employees to share knowledge, ask questions, and collaborate on projects, enabling new team members to learn from their peers and build relationships within the organization.

The future of hiring tech

That’s a lot of tech already. But there’s more on the horizon – and ChatGPT and its cousins are really only at the cusp of it. Let’s look at the various other ways in which digital transformation of recruitment is continuing to grow:

Advanced AI-driven candidate matching

AI algorithms are growing to the point where they can predict the success of a candidate within a company based on data analysis of past employees’ performances. This could significantly improve the quality of hires and streamline the recruitment process, allowing you to focus on the human aspects of your role.

Virtual reality interviewing and onboarding

Virtual reality (VR) technology is already revolutionizing the hiring process. Candidates can be immersed in a virtual work environment, interacting with potential colleagues, and participating in real-life work scenarios before they even get the job. This provides you with valuable insights into a candidate’s ability to adapt and perform in their new role.

Augmented reality (AR) enhanced job previews

Likewise, augmented reality can be utilized to give candidates a more immersive preview of their potential work environment, from their desks to the company’s facilities. Candidates can use their smartphones or AR devices to explore their future workplace, interacting with digital information about company culture, benefits, and team structures.

This would allow candidates to make more informed decisions about accepting job offers and help you identify candidates who are genuinely excited about joining the company.

Blockchain-based credential verification

Blockchain technology can play a significant role in recruitment by streamlining the verification of candidates’ credentials, such as education, certifications and work experience. By using a decentralized, secure and tamper-proof system, you can quickly and accurately validate the qualifications of candidates.

This reduces hours spent on background checks and minimizes the risk of fraudulent claims.

Remote workforce management through IoT

The Internet of Things (IoT) could play a vital role in managing remote workforces, as companies increasingly adopt flexible and remote work models. IoT devices and wearables could be used to monitor employee health, productivity, and engagement in real-time, providing valuable insights. This data could be used to create personalized support plans for employees, addressing their unique needs and preferences.

There’s plenty more, of course, but that’s just a taste of what’s happening now and in the near future.

Lessons from Michelangelo, Borg and Ford

Let’s step out of that tech rabbit hole for a moment, and consider some real-life lessons to help assuage fears that jobs will be taken over by artificial intelligence including in hiring teams. The reality is, AI can be your friend if you embrace it.

Michelangelo and the Sistine Chapel

First, let’s look at one of history’s great painters and one of history’s equally great paintworks. While Michelangelo is famous for his work on the Sistine Chapel, he did not complete the masterpiece alone. He had a team of assistants to help him bring his vision to life. He consulted with them, worked with them to prepare the “canvas”, and so on. He still led the project and directed his teams to set the foundation for what ultimately became his masterpiece.

Likewise, for you, AI can be your assistant. It’ll take care of the other work and help you focus on the human aspects of your role, including fostering a positive candidate experience and ensuring that your teams are highly engaged.

Bjorn Borg and the wooden racket

When tennis legend Bjorn Borg made a comeback in 1991 after years in retirement, he chose to stick with his wooden racket rather than adopting the modern graphite rackets that had become the standard in the sport. His insistence on staying with outdated technology led to disappointing (and even embarrassing) results.

This is a reminder to stay up-to-date with – and ahead of – the latest technologies and trends in your area of work. If you don’t stay on top of your game, you’ll fall behind and miss out on top talent.

Henry Ford and the assembly line

Car titan Henry Ford revolutionized the manufacturing industry with his innovative assembly line, which dramatically increased efficiency and reduced production costs. Ford took inspiration from meat-packing plants and a grain mill conveyor belt to divide the labor into clear steps and to bring the work to the workers, thereby reducing time wasted in moving around and leading to mass production and cheaper cars.

Likewise, you can explore and adopt new technologies that can optimize your workflow and save you an incredible amount of time and hassle – and money.

AI isn’t a threat – it’s your ally

SWOT analysis is a common element of business strategy. Strengths, Weaknesses, Opportunities, Threats – hence, SWOT. Think about what you’re doing at work, and what your company’s doing. What are your strengths right now? What are your weaknesses? And what are the opportunities you can capitalize on to overcome those weaknesses?

The fourth one – the threat – is probably overplayed when it comes to AI. The infusion of AI in hiring need not be seen as a threat to the profession, but rather as an opportunity for growth and enhancement.

Don’t forget that the human touch continues to be a vital aspect of the hiring process, and AI technology is the tool to support and streamline your efforts.

It’s an exciting time. Embrace this age of digital transformation, including in hiring. Learn from the successes of Michelangelo and Henry Ford, and the failure of Bjorn Borg, and navigate this new road. The future of hiring sits squarely in the harmonious blend of technology and human skill. Master that balance, and you’ll do very well.

The post AI, ChatGPT and the human touch in hiring appeared first on Recruiting Resources: How to Recruit and Hire Better.

These moves had the effect of making money more scarce and sent a chilling effect across the global economy.

Companies always try to tighten their belts when entering a potentially recessionary environment, and one way to get costs under control is to ensure that your businesses software expenses are being allocated as efficiently as possible.

Related: The agile recruitment process: hiring with leaner teams and budgets

Many HR and talent acquisition teams will see (or already have seen) their budgets flat line or shrink in 2023, so they will need to make strong, cost-effective software decisions as they build their HR software toolset.

Below are a few strategies that can help your team be more disciplined and efficient with your HR tech stack, while still giving you, your team and your employees the tools they need to be productive and successful:

1. Bundle where you can

There has been a back-and-forth debate in the software industry going back to time immemorial: Is it better to have an all-in-one system or to take a best-in-class approach?

Fewer systems are generally better than more systems, but there can often be compelling business reasons to add best-in-class point solutions.

The case for fewer systems is not just about lowering software expenses (although that can be a side effect). Often, the case is about being more efficient and streamlined.

With a more bundled HR tech stack, employees only have to download one app and remember one login, in order to handle all of their HR technology needs. It also means that when things go wrong, you only have one customer support contact to reach out to for help.

Another reason that companies opt for an all-in-one provider is because data typically flows more effectively throughout a single system than it does across multiple systems.

This can help reduce the amount of manual re-entry that administrators have to do. It can also make reporting easier, since generating reports from an all-in-one system is often easier to do than downloading and combining reports from multiple systems.

Despite the advantages of an all-in-one system, a business may still want to choose a few areas in their HR tech stack to prioritize best-in-class solutions.

In an environment where labor is still incredibly scarce and unemployment remains near record lows, having an advantage in recruiting from a best-in-class applicant tracking system (ATS) can return surplus value for a business.

A smart HR operation should be looking at their overall tech stack and looking for opportunities to bundle, but also stay cognizant of the benefits that their best-in-class providers can bring.

2. Partner with growing vendors

You’ve likely heard the phrase ‘a rising tide lifts all ships. And this is especially true when it comes to your HR software partners.

The trajectory that a software company is on is another thing to consider when you’re deciding which software partners will serve you best in a leaner business climate.

When evaluating competitive platforms, try to triangulate where each business is heading. Ask questions about the company’s leadership, their funding, their product innovation cycles and how long customers stay on their platform.

Two software vendors could look identical, in terms of functionality and price today, but in two or three years they could be miles apart, if one of the vendors has an arrow pointing up and the other is stagnating.

The vendor with the better trajectory will be able to deliver you new innovative upgrades, more frequently and will be able to attract more engaged, caring employees to work with your team.

Related: The 6 best free HR and employee management software solutions

3. Find the right deal

A third thing to consider with all of your software vendors is: Is the partnership structure mutually beneficial for both sides?

Most software buyers assume that list prices and contract terms are fixed and can’t be moved. But in our experience, buyers tend to have much more flexibility than they realize.

If you’ve been a great partner to your software vendor, they won’t want to lose your business over small details.

If you’re getting squeezed by your financial pressures, but don’t want to lose a beloved software partner, reach out to that partner and see if a resolution can be found.

This guide from Outsail details how to appropriately negotiate a software agreement, but a few of the key things to keep in mind are:

• It’s a give and a take, so if you want better terms, you’ll likely have to give something to your software partner in return
• Your sales or account management reps are your ally, so arm them with what they need to bargain on your behalf

Many people (incorrectly) think that negotiations are an adversarial endeavor, but the truth is that these conversations, when done well, can be some of the most transparent and mutually beneficial discussions you’ll have with your partners.

As we all face new business headwinds, there will be more pressure on HR teams to optimize their software spend.

Related: How to calculate the ROI of an ATS: A step-by-step guide

But, this certainly doesn’t mean that you will have to downgrade all of your software platforms and work only with bargain basement providers.

Instead, this is an opportunity to identify your most strategic partners and create deeper, more mutually beneficial partnerships that will allow both parties to come out the other side better.

Brett Ungashick is the founder of OutSail, a free HR software advisory service. OutSail helps companies research, evaluate and select new HR software. Brett started his career by selling software to HR teams at LinkedIn, before recognizing a growing need from software buyers for support throughout their buying processes. OutSail was founded in 2018 and has helped over 700 companies with new HR software purchases including companies like SalesLoft, DoorDash and the Boys & Girls Club of America.

The post How to make your HR tech budget go further appeared first on Recruiting Resources: How to Recruit and Hire Better.

But one thing we do know: recent layoffs are concentrated in the SaaS world, and CPH is rising meteorically as a result.

This month’s Hiring Pulse is going to be a short one. Of course, February only has 28 days and that’s the latest month in our dataset. Nevertheless, this report still packs a punch. Let’s get started!

How we’re looking at data

We’ve adopted two methodologies in how we look at the Hiring Pulse dataset. For Time to Fill and Candidates per Hire, we’re measuring each month using the average of 2019, the last “normal” year, as a baseline index of 100.

For job openings, we’re taking a different route – simply, the average number of job postings per company. This gives us the opportunity to gauge overall recruitment activity and whether that’s going up or down.
Want a more detailed methodology? Jump to the end and check it out.

As always, we look at the worldwide trends for three common SMB hiring metrics:

• Time to Fill (TTF)
• Total Job Openings (JO) 
• Candidates per Hire (CPH)

Let’s start analyzing!

Main highlights

The three main highlights for this month’s Hiring Pulse are:

• Candidates per Hire climbed for the eighth straight month – but this time, the jump from the previous month is higher than we’ve seen in a long, long time
• The CPH trend has come full circle and is now higher than its previous peak two years ago
• Small businesses (with <50 full-time employees) are continuing to hire at a brisk pace

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important to understand that definition: jobs that are still open as of the end of February are not included in this graph as they don’t yet have an “end date”. Only the jobs that are filled are included here.

Quick clarification, because people are asking: the data in this chart shows the trendline against the 2019 average as an index of 100, not the actual number of days in TTF.

Got that? Good. Let’s have a look at the monthly TTF trend throughout 2022 against the average of 2019, based on jobs that have been filled:

In January, the TTF trend spiked after a steady decline throughout most of 2022. But a January spike in TTF is completely and totally normal.

And in February, the TTF score dropped from 90.8 in January to 86.8 in February. Again, totally normal.

For every year dating back to 2020, there’s always a drop from January to February in terms of TTF. Here’s what that looked like for each of the three previous years:

• 2020: 102 in January and 97.3 in February
• 2021: 95.6 in January and 88.6 in February
• 2022: 97.4 in January and 90.9 in February

This is not a lot to write home about, honestly. Things are ‘normal’ here. So, let’s move on to the job opening data.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

As stated above, we’re displaying this as an average of job postings per company in the network. And because this is not contingent on job opened/filled dates like TTF and Candidates per Hire, we can simply look at the raw job open numbers up to the end of February.

Again, we have a relatively robust month for job activity with 6.7 jobs per company on average in the network, up just a notch from January’s 6.6.

To put that in perspective, job posting activity remained steady in the latter part of last year, alternating between a low of 6.1 and a high of 6.3 from June through to November before the predicted holiday-season drop to 5.2 for December.

That of course differs based on company size. So let’s break the data down into those buckets.

Larger companies running against the norm

The big jump in job openings for companies with 200 or more full-time employees kind of continues. But while it remains high, February shows a drop to 17 jobs per company on average, down from 18.5 in January.

In past years dating back to the beginning of our dataset, job postings in February were always higher than January for those larger companies. This year, it’s the opposite.

Medium is closer to the median

Last month, we highlighted a modest bump in average job postings for medium-sized businesses (51-200 FTEs) from December to January. It’s now stabilized through February with 5.6 job postings per mid-sized company, down a smidgen from 5.7 in January.

That’s about as stable as can be, considering that over the six months ending February, the busiest month for job postings was 5.8 in September and the quietest month was 5.3 in December.

In past years, the change from January to February differs from one year to the next – but not by much. So, for mid-sized companies, 2023 isn’t anomalous so far.

Small but lively

Last month, we marveled at how those businesses in the 1-50 FTE bracket were posting jobs at an unprecedented rate – in short, higher in January than at any other time in our dataset.

And now? Small businesses are even more active in the hiring space in February, with 4.7 job postings on average compared with January’s 4.2. That’s a 12% jump.

For context: in 2020, February’s job posting average was nearly 5% lower than in January. In 2021 and 2022, February was relatively unchanged from January.

Let’s keep an eye on this interesting trendline going forward. Now, let’s look at who’s applying for these jobs.

3. Candidates per Hire

Workable defines the number of candidates per hire (CPH) as, succinctly, the number of applicants for a job up to the point of that job being filled. Again, remember, this is a trendline using the 2019 CPH average as a baseline of 100, not the actual number of candidates per hire.

Now that Let’s look at what’s going on here through February:

We’re going to look at two full years of data here dating back to January 2021, because the CPH trend is probably the most compelling trendline right now. It starts at a high point in February 2021 at 128 and declines sharply to 84.2 a year later in January 2022.

The trend stays relatively stable for the next six months after January 2022, and then skyrockets from 91 in July 2022 to a staggering 142.3 this last February.

That means a 56% increase in the CPH trend in an eight-month span. And that increase seems to be accelerating.

For instance, the highest MoM increase before 2023 in this chart was 16.8 points from July to August last year.

And now, we see an 18.1-point increase from January to February.

We know all about the Great Resignation. We’ve written plenty about the Great Discontent (and we have a new survey report coming in that area – stay tuned!).

Now? We’re looking at the Great Resurgence when it comes to sheer number of candidates.

What’s going on here?

In last month’s Pulse, we took a deep dive into five select industries in our dataset, each of them with different numbers.

We found that Software as a Service led in terms of the CPH trend, along with Diversified Financials and Media & Entertainment as significant industries experiencing (enjoying? enduring?) a deluge of talent.

Meanwhile, companies in the Hospitals & Healthcare industry sat near the bottom of the CPH spectrum, seeing fewer candidates for their jobs than most other industries. Other industries near the bottom include Retail, Banks, and Consumer Services.

And, on the topic of growing CPH, we saw this interesting insight from LinkedIn, courtesy of Dominic Joyce, Head of Talent Acquisition at Travelex:

In short, next to layoffs and turnover, maybe the one-click apply option is a reason you’re seeing more candidates in your inbox.

To Dominic’s point, some of those may be “lazy” applications. Not all of them, of course – but some of them at least.

This doesn’t mean you should not have easy-apply options – those are appreciated at large by candidates and they have a very valuable purpose. Rather, having more candidates highlights the importance of having a good filtering system in place – one that brings those ideal candidates to the forefront of your application pile.

And, of course, a reliable selection process free of breakdowns even when candidate volume grows exponentially.

That’s especially important right now with a shorter Time to Fill (which means more competitive hiring). That’s also important if you’re hiring in an industry that’s seeing a lot of change and turnover – like in SaaS, for instance.

Just food for thought. See you next month…

Thoughts, comments, disagreements? Send them to content@workable.com, with “Hiring Pulse” in the subject heading. We’ll share the best feedback in an upcoming report. Watch for our next Hiring Pulse in February!

The Hiring Pulse: Methodology

Because one of the three metrics (Job Openings) is different from the other two metrics (Time to Fill and Candidates per Hire), we’re adopting two very distinct methodologies.

To bring the best insights to small and medium (and enterprise-level) businesses worldwide, here’s what we’re doing with the Job Openings metric: we’re taking the number of job openings in a given month and dividing that by the number of active companies in our dataset, and posting that as an average. For example, if July 2022 shows the average Job Openings per company as 7.7, that simply means each company posted an average of 7.7 jobs that month.

For the Time to Fill and Candidates per Hire metrics, we’re comparing a specific month’s trend against the full average of 2019, and we show the result using that 2019 average as a baseline index of 100. For example, if July 2022 shows an average Time to Fill of 30 days for all jobs, and the monthly average for all of 2019 is 28, we present the result for July 2022 as 107.1 – in other words, 7.1% higher than the average of 2019.

And we chose 2019 as the baseline because, frankly, that’s the last normal year before the pandemic started to present challenges to data analysis among other things.

The majority of the data is sourced from businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

Want more? Check out our previous Hiring Pulses:

Your Hiring Pulse report for January 2023

In December’s Hiring Pulse, we drew some fresh conclusions from the data – speci...

Your Hiring Pulse report for December 2022

In November’s Hiring Pulse, we went into detail about ongoing layoffs – especial...

Your Hiring Pulse report for November 2022

In October’s Hiring Pulse, we took a different approach to the dataset, but what...

Your Hiring Pulse report for October 2022

In September’s Hiring Pulse, the data started to show that there were more candi...

Your Hiring Pulse report for September 2022

In August’s Hiring Pulse, we talked about how the hiring market has responded to...

Your Hiring Pulse report for August 2022

In July’s Hiring Pulse, we talked at length about recession jitters, interest ra...

The data this time around is more than convincing. We’re seeing 35% more candidates per hire in December than six months earlier – that’s an astronomical increase unseen since the early days of the COVID-19 pandemic.

Plus, with the full data of 2022 on our hands, we’re able to look at how 2022 sizes up against previous years.

Let’s dive in!

How we’re looking at data

We’ve adopted two methodologies in how we look at the Hiring Pulse dataset. For Time to Fill and Candidates per Hire, we’re measuring each month using the average of 2019, the last “normal” year, as a baseline index of 100.

For job openings, we’re taking a different route – simply, the average number of job postings per company. This gives us the opportunity to gauge overall recruitment activity and whether that’s going up or down.
Want a more detailed methodology? Jump to the end and check it out.

As always, we look at the worldwide trends for three common SMB hiring metrics:

• Time to Fill (TTF)
• Total Job Openings (JO) 
• Candidates per Hire (CPH)

Let’s start analyzing!

Main highlights

The three main highlights for this month’s Hiring Pulse are:

• Candidates per Hire is surging at a rate unseen in nearly three years
• Job openings for small businesses only start dipping in December, compared with dips in both November and December for their larger counterparts
• Time to Fill normally grows in December – but not this time around

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important to understand that definition: jobs that are still open as of the end of December are not included in this graph as they don’t yet have an “end date”. Only the jobs that are filled are included here.

Got that? Good. Let’s have a look at the monthly TTF trend throughout 2022 against the average of 2019, based on jobs that have been filled:

The main insight here is that Time to Fill once again hit a new low for the calendar year. It’s been three straight months of “lowest in 2022”, or for every month in Q4.

And looking at that chart above, it looks like it’s a total decline from the start to the end of 2022. But that’s not necessarily true if you look a little deeper. Take out the January metric of 98.9 – which is a full 5.9 points higher than the second-highest month in May – and take out Q4 altogether, and honestly, TTF holds steady for February all the way through to September.

We’ll talk more about it in our deep dive below, but suffice to say that the very high January number is normal, whereas the very low Q4 numbers are not normal.

But, in between those two extremes, TTF looks more stabilized compared with the previous two years. More on that below in our year-over-year comparison.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

As stated above, we’re displaying this as an average of job postings per company in the network. And because this is not contingent on job opened/filled dates like TTF and Candidates per Hire, we can simply look at the raw job open numbers up to the end of December.

As you can see, we’re making it a standard to look at the Job Openings data across the three company size buckets of 1-50, 51-200, and 200+ full-time employees (FTEs).

First, before we start looking at each of the buckets, note that the overall average jobs per company in the network plunges in December to 5.2. That’s after very little change for the six months before that, ranging from 6.1 to 6.3 jobs per account throughout that period.

A huge drop for enterprises

Now, which of the size buckets is at fault here? At first glance, it’s the enterprise-level companies (200+ FTEs) who slowed down their hiring activity throughout the month, dropping a full 3.8 points from 17.3 in November to 13.5 in December. Of course, because the big kids will normally have more job activity in either direction, this will skew that overall average

Medium, not nearly as much

But we’re also seeing a drop in medium-sized business (51-200 FTEs) job activity from 5.1 in November to 4.7 in December, albeit not as dramatic of a drop. Nevertheless, like at the enterprise level, this is a continuation of the slow and steady decline in job activity in the Q4 months of 2022.

Jobs be nimble, jobs be quick for small businesses

What stands out as different for this month’s Hiring Pulse is in the job activity for small-sized businesses (1-50 FTEs). While their enterprise- and middle-sized businesses showed decline in Q4, small-sized businesses were actually increasing up to the end of November, with 3.1 job postings on average in August, 3.6 in September, 3.8 in October, and 4.2 in November.

And here’s the interesting bit: December’s 3.5 average for small business job postings is not even the lowest for 2022 – that honor goes to June and August with 3.1 for each. That stands in stark contrast to the other two company-size buckets, which both hit convincing 2022 lows in December.

There are many different conclusions to draw from all this – the one we’ll make here is that smaller businesses tend to be more agile and their senior management are more likely to be operating around the clock because they kind of have to. They wear many different hats and may also be financially invested in their business, rather than simply being employees who can take time off in December for the holidays.

There’s sometimes a personal cost, especially when one has family, but at a strictly business level, this speaks to the strength of smaller organizations – they can be nimble and that’s crucial during recession-prone times when it’s often difficult to plan beyond the next quarter. It’s a potential generalization, but it’s a point worth considering.

3. Candidates per Hire

Workable defines the number of candidates per hire (CPH) as, succinctly, the number of applicants for a job up to the point of that job being filled. Let’s look at what’s going on here through December:

Last month, we pointed to four straight months of higher-than-normal CPH data points, each higher than the previous one.

You can now make it five. Five straight months of astronomical month-over-month increases to close out 2022. To put it in perspective, back in November’s Hiring Pulse, we showed that the average candidates per hire for October was 24% higher than in July. It’s now 34.9% higher.

Let’s put it into perspective: if you were getting, say, 100 applicants for a job in July, this means that last month, you’re getting 135 applicants for your open roles on average. That’s 35 more applications you need to sift through. And as you move your applicants through the recruitment funnel, you’re screening more candidates per job, and likely interviewing more of them in the first part of the funnel.

That’s maybe a good thing for companies who were struggling to find worthy candidates for their open jobs during the height of the Great Resignation, but not a good thing for resource-strapped companies who are barely staying ahead of all the additional work on their plate.

In fact, our New World of Work survey in 2022 showed that reduced capacity to recruit is more of a challenge today than in 2020, with 27.5% saying so now compared with 14.9% two years ago.

Note: that survey was conducted in early summer 2022, well before this surge in CPH. We’re now seeing cutbacks and layoffs especially in the tech sector, and consequently a huge rise in CPH – but bet your bottom dollar (or pound or euro or what have you) that companies are not adding to payroll to support their hiring teams.

So… a growing CPH necessitates optimization in the recruitment process (insert shameless plug for Workable which actually does help in terms of doing more with less).

Deep dive – how ‘normal’ was 2022?

We’ve already covered to some extent what 2022 looks like for each of the three metrics. Now, with a complete 2022 dataset, we’re taking a deep dive and comparing the most recent year with the previous three calendar years (2019, 2020, and 2021).

And for visual impression, we’re overlaying each of the years into a single chart for each of the metrics so you can really compare.

Quick note before we really dive in: the data for Time to Fill and Candidates per Hire is based on an index, that being the average of 2019 as a whole, which is set as 100. We’ve included 2019 in these year-over-year comparisons for extended analysis – yes, we’re even comparing the months of 2019 against its own annual average.

What we’re doing a little differently just for this deep dive is the job opening data. Since it’s normally based on hard averages (i.e. job postings per company) and not on a 2019 index, it becomes more awkward to do a year-over-year analysis because our network has grown substantially over the years and, with it, the job postings.

So, instead of looking at just raw averages or even lining things up against the 2019 index, we’re using the first month of the year (January) as an index of 100 for each year, and sizing each month of that year against January.

Hope that makes sense! Let’s get into what was ‘normal’ about 2022 and how ‘normal’ it actually was compared with previous years.

Time to Fill

First, of course, Time to Fill:

So, the first and most obvious commonality across all years is that TTF is naturally higher in January than any other month, takes a bit of a drop in February, and kind of fluctuates from there.

2019, being the last ‘normal’ year – and we stand by that statement – shows only minimal fluctuation. 2020, which of course was a rather cataclysmic year for anyone personally and professionally, shows a rather stable TTF right up to April as the other three years continue to drop. But then, 2020 plummeted resoundingly from roughly 100 in March and April down to 84.2, 83, and 83.8 in the Q3 months before recovering slightly in the last quarter.

The other thing that stands out is something we alluded to above: 2022 showed consecutive month-over-month declines in the TTF metric from September all the way to December. This differs from the other three years, which all show relatively stable TTFs with even an increase in TTF for December for 2019 and 2021.

So, if we’re going to talk about what even is ‘normal’, it’s kind of hard to suss that out even with the last four years on full display.

Job Openings

Now, on to job openings. Remember, instead of looking at it as raw average job openings per company, we’re simply using January of each year as the index for that year. That way, every year starts at 100, and goes up or down from there.

Also, we have four different graphs here, because we’re looking at each of the FTE size buckets:

JO trendline for all businesses

Let’s look at the overall trendline for starters:

Yeah, yeah. That dip in April 2020 needs no explanation. We all know what happened. So let’s just scrub that from memory (and we do apologize for reminding you about it).

On to the comparables: what seems to be relatively normal across all four years is how the job opening trend remains relatively steady in mid-year and in some cases even grows a little bit in the Q3 months.

Another trend that looks to be consistent regardless of year is the drop in job openings in the last month of the year – understandable because of holidays and it being a relatively slow month for business all around.

Keep that one in mind – more on that below.

JO trendline for small businesses

Now, let’s look at the small-business job opening trendline:

What’s interesting about this is how 2021 and 2022 show a very healthy jump in small-business job openings for November which stands in contrast to 2019 and 2020.

What also stands out is how the job openings for small businesses climb significantly for September, October and November in 2022, while remaining relatively stable in the other three years.

One part that intrigued us is that the 1-50 FTE bucket is the only one that showed a drop in job openings for just December and not for both November and December as in the other two size buckets (and in the overall average).

Again, numerous reasons for this – one explanation to think about is, again, that small businesses are more nimble and perhaps work on much more of a month-to-month basis than their larger counterparts. Execs may not be thinking as far into the future when they’re running a smaller kayak of 15 employees as when they’re operating a larger ocean liner of 250 employees. Again, a potential generalization, but worth thinking about.

JO trendline for medium-sized businesses

Now, let’s look at the medium-sized business job activity:

What’s markedly different here for businesses with 51-200 FTEs is how much healthier the market looked for 2021 going out from January – it rises far above the others.

This is a sign of economic recovery from 2020, of course, likely in tandem with Great Resignation fallout – this all leads to more jobs added to payroll as companies grow (or recover, rather) and also, more backfill as quit rates run through the roof towards the end of 2021.

JO trendline for enterprises

Now keep that in mind while looking at enterprise-level businesses:

See, companies with more than 200 FTEs also showed plenty of job activity in 2021, higher vs. the January index than the other three years – but not standing out nearly as much as 2021 was for companies with 51-200 employees. Again, this is likely a combination of economic recovery and the Great Resignation.

What’s a little concerning about all of these job opening graphs is how the trend looks to be lower than other years for 2022 and going sharply downhill. We’ve heard talk about a recession since the early days of Q2 2022 – and companies cutting back in preparation.

This is continuing to happen at the start of 2023, and frustratingly for the talent market, means fewer jobs on the horizon.

Which leads us to:

Candidates per Hire

Are you ready?

We will keep this succinct: the CPH metric is now trending at the same level as at the end of the catastrophic year of 2020. What’s different this time is that the CPH trend is on a consistently uphill climb since mid-2022 and hitting new highs every month since September.

In 2020, CPH was at astronomical highs and coming down pretty drastically for November and December. And with the Great Resignation, the CPH trend continued to drop throughout 2021 and then held steady throughout the first half of 2022.

And now, in complete contrast to any of the other years, CPH is climbing at a rate unseen since those early months in 2020. People talked about how 2020 showed a recession unlike any other – the difference is that at the time, the volatility hit us like a truck on a dark country road thanks to an unanticipated pandemic.

This time, we’ve been anticipating a change in the economy for many months now.

What’s the difference? Well, the huge drop in the economy in early 2020 was in direct response to a single development, and because it was so swift and severe, the rebound was also swift.

This time, it’s much more complex – it’s not just about a pandemic. It’s about supply chains, a war in Ukraine, rising food and gas prices, consumer hesitancy, and other things in what’s being called a permacrisis.

Wait, a permacrisis? What’s that? Read on:

What’s going on here?

The opening lines to a recent Economist article read as follows:

“The editors of the Collins English Dictionary have declared ‘permacrisis’ to be their word of the year for 2022. Defined as an ‘an extended period of instability and insecurity’, it is an ugly portmanteau that accurately encapsulates today’s world as 2023 dawns.”

That’s scary stuff, indeed. That’s the tone we’re also setting for 2023 – if it isn’t already, it’s going to be tough times for businesses and employers.

But there’s a kind-of glimmer for you: you may still be needing to backfill vacated roles and fill new roles opened up due to restructurings. But for many of those job openings, a flood of candidates will come crashing through.

This will add stress to your hiring pipeline every step of the way. You, of course, may be reluctant to add to your payroll that’s responsible for hiring – which is understandable,. Instead, you’ll want to optimize your existing process.

We talked last month about automation using recruitment technology – you can screen far more candidates using one-way video interviews, keep them regularly informed with automated messaging, and relieve your recruiters of scheduling hassles using interview self-scheduling.

There are flexible solutions that can rise and fall with your hiring tide. Plus, you will show your value as a hiring team member that makes you even more indispensable to a company that’s trying to survive this permacrisis.

Stay strong, and see you next month.

Thoughts, comments, disagreements? Send them to content@workable.com, with “Hiring Pulse” in the subject heading. We’ll share the best feedback in an upcoming report. Watch for our next Hiring Pulse in February!

The Hiring Pulse: Methodology

Because one of the three metrics (Job Openings) is different from the other two metrics (Time to Fill and Candidates per Hire), we’re adopting two very distinct methodologies.

To bring the best insights to small and medium (and enterprise-level) businesses worldwide, here’s what we’re doing with the Job Openings metric: we’re taking the number of job openings in a given month and dividing that by the number of active companies in our dataset, and posting that as an average. For example, if July 2022 shows the average Job Openings per company as 7.7, that simply means each company posted an average of 7.7 jobs that month.

For the Time to Fill and Candidates per Hire metrics, we’re comparing a specific month’s trend against the full average of 2019, and we show the result using that 2019 average as a baseline index of 100. For example, if July 2022 shows an average Time to Fill of 30 days for all jobs, and the monthly average for all of 2019 is 28, we present the result for July 2022 as 107.1 – in other words, 7.1% higher than the average of 2019.

And we chose 2019 as the baseline because, frankly, that’s the last normal year before the pandemic started to present challenges to data analysis among other things.

The majority of the data is sourced from businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

Want more? Check out our previous Hiring Pulses:

Your Hiring Pulse report for December 2022

In November’s Hiring Pulse, we went into detail about ongoing layoffs – especial...

Your Hiring Pulse report for November 2022

In October’s Hiring Pulse, we took a different approach to the dataset, but what...

Your Hiring Pulse report for October 2022

In September’s Hiring Pulse, the data started to show that there were more candi...

Your Hiring Pulse report for September 2022

In August’s Hiring Pulse, we talked about how the hiring market has responded to...

Your Hiring Pulse report for August 2022

In July’s Hiring Pulse, we talked at length about recession jitters, interest ra...

Your Hiring Pulse report for July 2022

In June’s Hiring Pulse, we talked about increased layoffs especially in startups...

Let’s take a look:

How we’re looking at data

We’ve adopted two methodologies in how we look at the Hiring Pulse dataset. For Time to Fill and Candidates per Hire, we’re measuring each month using the average of 2019, the last “normal” year, as a baseline index of 100.

For job openings, we’re taking a different route – simply, the average number of job postings per company. This gives us the opportunity to gauge overall recruitment activity and whether that’s going up or down.

Want a more detailed methodology? Jump to the end and check it out.

As always, we look at the worldwide trends for three common SMB hiring metrics:

1. Time to Fill (TTF)
2. Total Job Openings
3. Candidates per Hire (CPH)

Let’s start analyzing!

Table of Contents:

• Time to Fill
• Total Job Openings
• Candidates per Hire
• What’s going on here?
• The Hiring Pulse: Methodology

Main highlights

The three main highlights for this month’s Hiring Pulse are:

• Small businesses are hiring more, whereas enterprise-level businesses are hiring less
• Candidates are flooding the job market at a rate unseen in a year and a half
• Huge numbers in Silicon Valley tech layoffs could lead to cross-border mobility not only for those laid off, but for employers as well

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important to understand that definition: jobs that are still open as of the end of November are not included in this graph as they don’t yet have an “end date”. Only the jobs that are filled are included here.

Got that? Good. Let’s have a look at the monthly TTF trend against the average of 2019, based on jobs that have been filled from the start of 2020 through to the end of November 2022:

Last month, we marked a new low for Time to Fill for 2022 when TTF hit 88.7 (reported as 88.4 last month – since updated with more complete data). Well, we’ve again hit another new low in November, with the TTF trend dropping to 88.2.

That’s the lowest it’s been since May 2021 when TTF was 87.8. And this is the second consecutive month that it’s been below 90.

Let’s compare to the Ghosts of Hiring Past. Note the three pretty significant spikes in that nearly three-year span in the chart above. No, those aren’t anomalies – they are all in January. This can be explained by saying that work processes slow down in December as we go through the motions of holiday season, and that adds days – weeks, even – to the normal time spent on filling open roles. So, TTF takes a leap in the post-holiday period.

But what’s curious this time around is in the months preceding January. In previous years, the Q4 months show an incline in the TTF trend and climaxing in the first month of the new year. But this time in 2022, there’s a marked decline month over month.

We’ll have to wait until February 2023 to see what January looks like this time – but if you wanted to put down a wager, it might not be outrageous to predict that the “post-holiday TTF spike” may not be as prominent as in the past.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

As stated above, we’re displaying this as an average of job postings per company in the network. And because this is not contingent on job opened/filled dates like TTF and Candidates per Hire, we can simply look at the raw job open numbers.

As we did in a Hiring Pulse a couple of months ago, we’re again looking at total job postings per business across three separate size buckets – companies with 1-50 full-time employees (FTEs), 51-200 FTEs, and 200 or more employees. And for a baseline, we’ve also included a line for all businesses put together.

What stands out here is how the smallest bucket – the one with 1-50 FTEs – is growing significantly, with four straight months of increasing job activity starting with 3.1 job postings per business in August up to 4.2 job postings per business in November. That’s more than one extra job posting per business on average.

And while medium-sized businesses (51-200 FTEs) hold steady across time, enterprise-level businesses (200+) are dropping dramatically over the past three months. In September, enterprises posted an average of 19.4 jobs, but that goes down to 17.4 in November. That’s two full job postings less on average.

Unless you’ve been living under a rock or on the moon, and especially if you’re in the tech space, you’re well aware of the mounting layoffs grabbing headlines every week. As it happens, according to Visual Capitalist, November saw more than twice as many layoffs in the month (59,710 cuts) compared with the previous 2022 monthly high set in June (29,299).

But what’s noteworthy about that Visual Capitalist chart is that a good half of the layoffs are attributed to just 11 companies – all of which we’re very familiar with. Meta, Amazon and Twitter are the most prominent, followed by Carvana, Doordash, Stripe, and a handful of other tech behemoths.

What are we saying here? Yes, smaller companies lay off fewer employees, which makes a layoff event less prominent in their case. However, the flip side of the coin is that smaller businesses – those in the 1-50 FTE bucket – can be more nimble. They’re like hundreds of thousands of kayaks among a few ocean liners, adapting as they go. The ebbs and flows of the currents affect them too, but they can roll with the changes more quickly.

So, jumping from three to four job postings on average isn’t necessarily a sign of economic health, but rather, a sign of increased agility in times of turbulence.

3. Candidates per Hire

Workable defines the number of candidates per hire (CPH) as, succinctly, the number of applicants for a job up to the point of that job being filled. Let’s look at what’s going on here through November:

This is resounding. Four straight months of higher-than-normal CPH data points – and each month higher than the previous one. In November, we’re seeing the highest CPH trend since the beginning of last year.

And for perspective – the beginning of last year marked the end of astronomical highs in the CPH trend; you can see that in the updated chart. The start of that data mountain there can be correlated with – and directly linked to – the advent of the pandemic. Layoffs hit unprecedented highs in Q2 2020 – leading to the market being flooded with candidates.

But as things slowly reached a new normal, we saw Anthony Klotz’ Great Resignation prediction come true, with job quits going through the roof. And correlating with that – again, not purely coincidentally – was a sharp drop in candidates per job to below the 2019 average starting in August 2021 when the trend hit 97.5. In short: when people quit, they weren’t looking for new jobs. They were checking out in a big eff you to the system altogether.

The CPH metric stayed underwater all the way to August of this year, when a staggering 15.5-point jump from July brought it back up to 105.7. And from there on, as you can see, it’s hitting new recent highs, culminating in 116.2 for November.

Candidates are flooding the market again – and while many may be a result of layoffs, we’ll wager that many others are realizing that checking out of the system isn’t a sustainable option and they’re reentering the workforce.

What’s going on here?

First, let’s look at a different consequence of increased layoffs in the tech sector. It means that tens of thousands of foreign workers are having to leave the United States because they’re in the country on sponsored H1-B work visas.

According to the article, this may mean the US will fall behind in tech competitiveness. It also means a potential upside for tech companies headquartered outside of the country, such as in Canada and the European Union – because those tech workers will be looking for jobs in places with more permissive work visa policies.

We’ve kind of seen this happen in the recent past, but in very different circumstances, when the Trump administration made it more difficult to get an H1-B visa. This led to a Silicon Valley brain drain, with a good portion of talent – and companies, too – moving north to Canada to take advantage of more friendly work visa policies.

Now, on to candidates per hire – the significant growth in that metric isn’t unprecedented by a long shot – but it’s indicative of things to come. For a long time now, the major challenge that recruiters and hiring managers had faced was in candidate sourcing and attraction.

In short, they haven’t been able to pull in an adequate number of applicants when they open up a new job.

Either they aren’t sourcing those candidates in the right places, or their value proposition just isn’t up to snuff and it’s been a candidate’s market all this time.

This meant that hiring teams worked diligently on their recruitment marketing tactics, promoting their companies as great places to work. They’ve also dug deeper into the market to find – and even proactively contact – those ideal candidates, in hopes of luring them to their open roles.

But all that is changing. Let’s call COVID an anomaly and say that for the first time in actual years, the scales are tipping in the other direction. We’re seeing a situation where all someone has to do is post a job, and they get slammed with a hefty number of quality applicants within minutes.

This is no longer one-click-apply territory – these are legit jobseekers sent out to pasture by their most recent employer, and they’re actively and aggressively looking for a new job.

What does that mean for hiring teams? It means the hiring pipeline is about to get clogged. This means there’ll be more time and resources spent on screening and evaluating candidates, so as to not let good ones fall through the cracks. It also means evaluating them differently such that you try to get a sense of their motivation to work for you – is the candidate simply trying to get a job in general, or do they really want to work in your company?

Even if it’s honest to say that candidates do need jobs so they can pay rent, buy food, support families, and the like, it’s still important to the employer to hire someone who’s really keen to work at that specific job and to do a good job of it, too. And for those new hires to stick around as well, as opposed to seeing your opportunity as a stepping stone to a more permanent solution.

Not only does that change the evaluation game, it also means your hiring teams – already strapped for time and resources after cutbacks and streamlinings – will be even more stress-tested going forward. You want your hiring process to be free of breakdowns. This is where automation becomes a boon for you, the SMB employer.

Automation using recruitment technology – for example, one-way video interviews, automated messaging and interview self-scheduling features – will be incredibly useful going forward.

Have a great holiday and see you in 2023!

Thoughts, comments, disagreements? Send them to content@workable.com, with “Hiring Pulse” in the subject heading. We’ll share the best feedback in an upcoming report. Watch for our next Hiring Pulse in January 2023!

The Hiring Pulse: Methodology

Because one of the three metrics (Job Openings) is different from the other two metrics (Time to Fill and Candidates per Hire), we’re adopting two very distinct methodologies.

To bring the best insights to small and medium (and enterprise-level) businesses worldwide, here’s what we’re doing with the Job Openings metric: we’re taking the number of job openings in a given month and dividing that by the number of active companies in our dataset, and posting that as an average. For example, if July 2022 shows the average Job Openings per company as 7.7, that simply means each company posted an average of 7.7 jobs that month.

For the Time to Fill and Candidates per Hire metrics, we’re comparing a specific month’s trend against the full average of 2019, and we show the result using that 2019 average as a baseline index of 100. For example, if July 2022 shows an average Time to Fill of 30 days for all jobs, and the monthly average for all of 2019 is 28, we present the result for July 2022 as 107.1 – in other words, 7.1% higher than the average of 2019.

And we chose 2019 as the baseline because, frankly, that’s the last normal year before the pandemic started to present challenges to data analysis among other things.

The majority of the data is sourced from businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

Let’s get right to it:

How we’re looking at data

If you missed last month’s update, we’ve established two new methodologies in how we look at the Hiring Pulse dataset. For Time to Fill and Candidates per Hire, we’re measuring each month using the average of 2019, the last “normal” year, as a baseline index of 100.

For job openings, we’re taking a different route – simply, the average number of job postings per company. This gives us the opportunity to gauge overall recruitment activity and whether that’s going up or down.

Want a more detailed methodology? Jump to the end and check it out.

As always, we look at the worldwide trends for three common SMB hiring metrics:

1. Time to Fill (TTF)
2. Total Job Openings
3. Candidates per Hire (CPH)

Let’s start analyzing!

Table of Contents:

• Time to Fill
• Total Job Openings
• Candidates per Hire
• What’s going on here?
• The Hiring Pulse: Methodology

Main highlights

The three main highlights for this month’s Hiring Pulse are:

• Time to Fill has hit a significant new low for 2022, and is also the biggest month-to-month drop since January to February
• Candidates Per Hire keeps climbing and climbing
• The last time we saw such a dramatic jump in CPH in consecutive months was in early-mid 2020

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important to understand that definition: jobs that are still open as of the end of October are not included in this graph as they don’t yet have an “end date”. Only the jobs that are filled are included here.

Got that? Good. Let’s have a look at the monthly TTF trend against the average of 2019, based on jobs that have been filled from the start of 2022 through to the end of October 2022:

We are now at a new low for Time to Fill for the 2022 calendar year, with the average TTF for October just 88.4. It’s not just a new low – it’s significantly lower, a 5-point drop.

That’s the biggest month-to-month change in either direction since January’s 101.0 dropped 7.3 points to 93.7 for February.

The narrative we’ve carried over the last couple of months is that recession jitters are pushing the data all over the place. We’ve also said that those currently hiring were rushing to fill jobs throughout July and August as the Great Resignation opened up gaps in organizational workflows that urgently need to be filled.

After a jump in September to 93.4, the new and sudden drop can be explained as upcoming recession concerns leading to organizational (or departmental) restructurings leading to new gaps being opened up.

That’s a little different from gaps as a result of people quitting – in this case, it’s more as a result of optimization. Department leaders may be identifying ways to combine two roles into one or three roles into two as a cost-cutting measure – and these are new roles that need to be filled.

That’s one reason we may see new job openings in companies that have just laid people off. Which brings us to the second potential explanation: the layoffs themselves. Twitter wasn’t the first – just the most prominent to date. We’ve been learning about layoffs for some time now – and this leads to the market being flooded with high-quality candidates actively looking for new jobs right away.

This isn’t great for those who lost their jobs, but there’s an upside for those actively hiring. Candidate pools are now deeper than in the past. Employers don’t have to compete nearly as much or even work as much to source that newly available talent. So, it’s logistically quicker to fill those roles.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

As stated above, we’re displaying this as an average of job postings per company in the network. And because this is not contingent on job opened/filled dates like TTF and Candidates per Hire, we can simply look at the raw job open numbers – and they’re a great indicator of the health of the economy.

This is a very simple graph and speaks for itself. Ultimately, what stands out is that the top two most active months for job postings via the Workable network are March with 6.5 jobs posted per company on average, and most recently October, with 6.4 jobs per company on average.

Regardless of the weird economic climate that we’re in, this chart rings as relatively normal according to our metrics history. The end of Q1 and the start of Q4 are busy hiring seasons and we’re seeing that in 2022 as well. In the past, we’ve seen that October jumps a bit, takes a dip in November, and then jumps again in December.

Let’s watch this space closely and see what it looks like as we round up 2022.

3. Candidates per Hire

Workable defines the number of candidates per hire (CPH) as, succinctly, the number of applicants for a job up to the point of that job being filled. Let’s look at what’s going on here through October:

Last month, we pointed out what we thought was a “pretty huge jump” in the CPH metric, somersaulting over the baseline index from 91.1 in July to 106.6 in August and 106.8 in September.

And now? It’s gone even higher – to 112.8 in October.

That’s the highest that it’s been since the metric hit 115.2 in March 2021. And the CPH metric was below the baseline from August 2021 all the way to this past July. It’s only in the last three months that we’ve seen such a dramatic reversal in CPH.

For context: in January and February 2020, the metric stood at 93.9 and 88.7 respectively. It then jumped to 102.6 in March 2020 and stayed above the baseline for 14 consecutive months to April 2021. In the midst of that was five straight 120-and-higher months from June to October 2020. July 2020 was 137.0 and October 2020 was 136.5.

This is all pandemic-related, of course. March 2020 saw many workers moved to remote work or furloughed, as a stopgap measure. When it became clear that COVID-19 wasn’t going away anytime soon, companies resorted to the painful process of layoffs en masse. This jump in CPH is the result.

Why are we talking about this two years later? Because we’re seeing similarities in how the CPH is changing now. Recession fears started a few months ago – and layoffs then started happening after that. Combine that with fewer jobs being posted, and the CPH starts to grow again. Just like it did in 2020.

What’s going on here?

Honestly, Twitter is just the tip of the iceberg of what’s going on here. Agree or disagree with Elon Musk if you will, but what’s happening in the e-hallways of that social media monolith is just a microcosm of what’s happening out there.

Layoffs are happening left, right, and center – including reports of Facebook parent Meta also turning to layoffs for the first time in its history. Lyft and Stripe are also laying off people, and Apple and Amazon are freezing their hiring processes. There is, of course, a trickle-down effect.

And, as mentioned above, those layoffs mean tens – likely hundreds – of thousands of new candidates flooding the market. This isn’t Big Quit material – these are people who are involuntarily severed from their income lifeline, and after a frustrated sob in the bathtub for an evening, are rolling up their sleeves and jumping right back into the job fray the next day.

The result is what we’re seeing here.

However, we have some kind-of good news for you. Much of the recession talk is still anticipatory, and different experts are saying different things. While more execs are bringing up the recession in their quarterly earnings conference calls, stock speculators at sites such as Yahoo! Finance are saying the talk of a recession may be greatly exaggerated and fiscal pundits at Goldman Sachs suggest we’re not necessarily doomed to a recession.

Ultimately, there isn’t clear agreement on what’s going to happen. While we know businesses don’t appreciate uncertainty, this uncertainty is good if anything. And organizations seem to be responding aggressively ahead of what *might* happen.

Let’s think of it this way: if you see your kid approaching a stove and yell at them not to touch it, and then you realize the stove wasn’t actually hot, then is that a good thing? Yes, it is. It’s good that you took the precautionary measure even if you weren’t entirely sure of the stove’s setting at that time, because the end result is the same: your kid doesn’t get burned.

In that spirit, all this anticipation and action ahead of what may be a recession could be seen as a good thing.

Let’s keep one eye on the overall conversation around recessions and the other eye on upcoming Hiring Pulse data trends, and keep all this in mind.

There’s always something in all this that can help us move forward with confidence even if we’re not sure of the danger of the hot stove.

Thoughts, comments, disagreements? Send them to content@workable.com, with “Hiring Pulse” in the subject heading. We’ll share the best feedback in an upcoming report. Watch for our next Hiring Pulse in November!

The Hiring Pulse: Methodology

Because one of the three metrics (Job Openings) is different from the other two metrics (Time to Fill and Candidates per Hire), we’re adopting two very distinct methodologies.

To bring the best insights to small and medium (and enterprise-level) businesses worldwide, here’s what we’re doing with the Job Openings metric: we’re taking the number of job openings in a given month and dividing that by the number of active companies in our dataset, and posting that as an average. For example, if July 2022 shows the average Job Openings per company as 7.7, that simply means each company posted an average of 7.7 jobs that month.

For the Time to Fill and Candidates per Hire metrics, we’re comparing a specific month’s trend against the full average of 2019, and we show the result using that 2019 average as a baseline index of 100. For example, if July 2022 shows an average Time to Fill of 30 days for all jobs, and the monthly average for all of 2019 is 28, we present the result for July 2022 as 107.1 – in other words, 7.1% higher than the average of 2019.

And we chose 2019 as the baseline because, frankly, that’s the last normal year before the pandemic started to present challenges to data analysis among other things.

The majority of the data is sourced from businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

How we’re looking at data

In past Hiring Pulses from the very beginning, we had a dilemma: how do you look at data when the economic – and therefore hiring – landscape is so tumultuous from one month to the next? The big concern was that it’s hard to establish solid benchmarks when the goalposts keep moving all the time.

So, in the beginning, instead of simply establishing historical benchmarks from years of data, we chose to look at data based on a trailing three-month average. For instance, we would compare August’s Time to Fill against the rolling average of the three previous months – in this case, May, June, and July.

Now, we’ve established two new methodologies. For Time to Fill and Candidates per Hire, we’re measuring each month using the average of 2019, the last “normal” year, as a baseline index of 100.

For job openings, we’re taking a different route – simply, the average number of job postings per company. This gives us the opportunity to gauge overall recruitment activity and whether that’s going up or down.

Want a more detailed methodology? Jump to the end and check it out.

As always, we look at the worldwide trends for three common SMB hiring metrics:

1. Time to Fill (TTF)
2. Total Job Openings
3. Candidates per Hire (CPH)

Let’s start analyzing!

Table of Contents:

• Time to Fill
• Total Job Openings
• Candidates per Hire
• What’s going on here?
• The Hiring Pulse: Methodology

Main highlights

The three main highlights for this month’s Hiring Pulse are:

• TTF is coming down (again) after a jump in TTF for May, June and July
• Job openings are very busy for companies with 200+ FTEs – but not so much for mid-sized businesses (51-200 FTEs)
• Candidates per Hire numbers are going through the roof in the last two months

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important to understand that definition: jobs that are still open as of the end of September are not included in this graph as they don’t yet have an “end date”. Only the jobs that are filled are included here.

Got that? Good. Let’s have a look at the monthly TTF trend against the average of 2019, based on jobs that have been filled from the start of 2019 through to the end of September 2022:

In the most recent Hiring Pulses, we noted that the Time to Fill trend has been dropping over time. This isn’t different with the new approach to the dataset. For instance, the average Time to Fill for August is just 91.5% of the 2019 average.

It’s worth noting the small uptick in TTF for September – but that’s an increase of just .9 of a point. Also worth noting is how May, June and July saw a slight bump upwards in TTF, and there’s of course January with an above-average time to fill a role.

We speculated last month about how recession jitters, greater bandwidth in hiring teams due to business slowdowns in August, and the “rush to fill” urgent gaps in the workforce are all potential factors contributing to the drop in the Time to Fill metric in August.

However, our recently published survey report on the New World of Work for 2022 finds that depleted resources in hiring teams is a growing challenge in hiring – with nearly double the respondents citing this as a challenge compared with two years ago (27.5% vs. 14.9%).

So, that might cancel out the “greater bandwidth in hiring teams” theory. It’s gotta be recession jitters and the rush to fill jobs. And it may not even be those issues, with TTF coming up a bit in September.

What else might be going on?

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

As stated above, we’re displaying this as an average of job postings per company in the network. And because this is not contingent on job opened/filled dates like TTF and Candidates per Hire, we can simply look at the raw job open numbers – and they’re a great indicator of the health of the economy.

You’ll notice right off the bat that we’re breaking the data down into three separate buckets – companies with 1-50 full-time employees (small businesses), companies with 51-200 FTEs (mid-sized businesses), and companies with 200 or more FTEs. And for comparison’s sake, we’ve also added a line showing the average across all businesses regardless of size.

Naturally, the larger businesses hire more frequently – there’s more occurrences of turnover, backfill, stopgaps, and business growth/adjustments, meaning more job postings in general.

So don’t compare sizes – that’s never a good result.

Instead, look at how the wavelengths for each FTE bucket differs. Let’s look at earlier in the year first where two notable trends stand out:

• The 200+ category shows a dramatic jump in job postings at the start of the year, from 13.8 job postings in January to 14.5 in February, a .8 jump compared with a negative .5 for the 51-200 group (8.3 to 7.8) and a milder, even inconsequential -.1 for the 1-50 club (3.7 to 3.6)
• Meanwhile, April to May shows a more dramatic drop for the 51-200 group (-.3) compared with just -.1 for 200+ and a flatline for 1-50

And now, some dramatic fluctuations between the company sizes reveal themselves in the three most recent months of the dataset:

• The two larger buckets both saw a -.4 change in the average job postings per company from May to June, compared with the exact opposite for the 1-50 category
• After that drop, the largest companies in the dataset (200+ FTEs) saw a significant rebound of .9 more job postings on average in July compared with June, while the smallest companies (1-50 FTEs) saw a -.4 shift in their own job posting average
• And then, finally, while the largest and smallest companies saw more job posting activity in September compared with August, mid-sized companies (51-200 FTEs) saw the opposite trend, dropping .4 points

Speculation about the mid-sized companies is that many of them are in tech, and we know how hard SaaS companies are being hit by recession fears right now. This may be what we’re seeing here – and we know you’re likely an SMB that’s come here for insights.

So, let’s take an optimistic approach to this if we can: fewer job openings for your company size means there’s less competition with other employers when you’re opening a new job during this time. Does that mean we’ll also see more candidates now with a less diluted talent pool? Well, let’s find out.

3. Candidates per Hire

Workable defines the number of candidates per hire (CPH) as, succinctly, the number of applicants for a job up to the point of that job being filled. Let’s look at what’s going on here through September:

Just as we expected. The last two months see a pretty huge jump in the Candidate per Hire metric, ricocheting from a below-baseline 91.1 up to 106.6 in August and 106.8 in September.

That’s a staggering uptick – a swing of 15.5 and 15.7 percentage points. If you were getting 91 candidates in a job a couple of months ago, you’d be seeing 106 or 107 candidates just last month. And that’s just the average.

We talked last month about jobseekers becoming a surplus – this trend is continuing to happen, and that, again, may be a good sign for SMBs looking to hire right now.

What’s going on here?

It’s a bit of a no-brainer. The job market is slowing down a little bit – and consequently, candidates are becoming more available. We’re seeing this happening in our data, and in the data out there.

But what’s important is that the job market isn’t slowing down for everyone – it’s the opposite for enterprise-level companies. It’s worth noting that recessions have a disproportionate impact on smaller companies due to their lack of scalability and relatively inconsistent revenue stream, and that’s reflected in our dataset.

However, in the hiring landscape, we’ve noted that SMBs such as yourselves can take a cautiously optimistic approach to this – this developing climate actually may make it easier for healthy SMBs, in the short-term at least.

Then-CFO of Expedia Eric Hart would agree, telling investors in an August earnings call: “Not that I wish ill on any people out there from a layoff perspective or whatever else, but I think there could be an opportunity for us to ramp some of that hiring over the coming months.”

We also talked last month about how a recession would impact certain sectors, and not all of them at once. But we also talked about why we’re not really seeing a recession coming yet. We’re going to be a bit of a wet blanket and tell you that there may (will?) be a considerable setback in the global economy in 2023 according to many internationally recognized economists (including the head of the World Trade Organization) – and that the US Federal Reserve’s aggressive hikes in the inflation rate may be at the very core of it. Here’s an article outlining what’s going on.

And that’s not just in the US. That’s worldwide. Plan accordingly, including in your hiring.

Thoughts, comments, disagreements? Send them to content@workable.com, with “Hiring Pulse” in the subject heading. We’ll share the best feedback in an upcoming report. Watch for our next Hiring Pulse in November!

The Hiring Pulse: Methodology

Because one of the three metrics (Job Openings) is different from the other two metrics (Time to Fill and Candidates per Hire), we’re adopting two very distinct methodologies.

To bring the best insights to small and medium (and enterprise-level) businesses worldwide, here’s what we’re doing with the Job Openings metric: we’re taking the number of job openings in a given month and dividing that by the number of active companies in our dataset, and posting that as an average. For example, if July 2022 shows the average Job Openings per company as 7.7, that simply means each company posted an average of 7.7 jobs that month.

For the Time to Fill and Candidates per Hire metrics, we’re comparing a specific month’s trend against the full average of 2019, and we show the result using that 2019 average as a baseline index of 100. For example, if July 2022 shows an average Time to Fill of 30 days for all jobs, and the monthly average for all of 2019 is 28, we present the result for July 2022 as 107.1 – in other words, 7.1% higher than the average of 2019.

And we chose 2019 as the baseline because, frankly, that’s the last normal year before the pandemic started to present challenges to data analysis among other things.

The majority of the data is sourced from businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

Let’s take the plunge!

How we’re looking at data

First, looking at SMB hiring data allows us to see benchmarks in the hiring landscape. But when the benchmark changes regularly during these last two tumultuous years, it’s not the best measuring stick.

So, instead of looking at data YoY or even MoM, we’re looking at rolling trends. What we’re doing in the Hiring Pulse is looking at that month’s percentage increase or decrease compared with the average of the three trailing months. Want a more detailed methodology? Jump to the end and check it out.

As always, we look at the worldwide trends for three common SMB hiring metrics:

1. Time to Fill (TTF)
2. Total Job Openings
3. Candidates per Hire (CPH)

Let’s start analyzing!

Table of Contents:

• Time to Fill
• Total Job Openings
• Candidates per Hire
• Deep Dive: UK and Ireland
  • Time to Fill – UK&I
  • Total Job Openings – UK&I
  • Candidates per Hire – UK&I
• What’s going on here?
• The Hiring Pulse: Methodology

Main highlights

The three main highlights for this month’s Hiring Pulse are:

• TTF has significantly dropped in August – unlike in previous Augusts
• Job openings are normalizing more “normally” than either Candidates Per Hire or TTF
• Recession worries are still very real – but jobs themselves may not be hit as hard as feared

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important to understand that definition: jobs that are still open as of the end of August are not included in this graph as they don’t yet have an “end date”. Only the jobs that are filled are included here.

Got that? Good. Let’s have a look at TTF based on jobs that have been filled from the start of 2020 through to the end of August 2022:

One thing that stands out: Time to Fill dropped dramatically in August, with a -3.4% change from the average of the previous three months. Last year, August’s TTF trend was nearly the opposite: 5.1%.

What accounts for this? In the northern hemisphere, where most of this dataset lives, it’s summertime – which means a slowdown in overall business and consequently a slowdown in hiring. And a slowdown in jobseeking as well, of course. Fewer candidates makes it harder to find candidates, and there are fewer people working in hiring teams throughout. Put all that together, and that explains the uptick in TTF – in other words, longer TTF – in August 2021.

This especially should be the case in 2022 with the world opening up again (to a degree), and many workers catching up on their pent-up vacation time. But, instead, TTF dropped in August. TTF is shorter this time around than in previous months.

Why?

Perhaps, the seemingly non-stop predictions of a recession made for a business slowdown, which coupled with the normal downturn in processes during the traditional vacation months, led to less work for a company’s active employees for these few months. This frees up bandwidth for employees to focus on some other important things at work.

Then, more time is spent on sourcing, attracting, and evaluating candidates – which speeds the process along.

And of course, when people quit en masse – as we’re still seeing in the US at the very least – there’s a tinge of desperation as employers rush to fill ongoing gaps in their workforce.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

So, let’s look at the raw job open numbers – which aren’t contingent on job opened/filled dates like TTF and Candidates per Hire. These are just jobs opened in a given month – in other words, a single event – and are a great indicator of the health of the economy.

This one’s interesting. We’ve been writing a fair bit in previous Hiring Pulses about this thing called a recession and how that may impact our hiring metrics. We pointed to how July saw a change of -6% (now adjusted to -5.5% with data updates) in job openings compared with the three previous months’ average – and that this is unusual considering that previous Julys all saw a relatively opposite trend.

For example, as we showed last month, the job open trend for past Julys is as follows:

• July 2019: 7.2%
• July 2020: 49.5% (major caveat here, it being 2020)
• July 2021: 5.7%

And now, August’s job opening trend has sped up just a wee bit to -2.2%. It’s not something to scream at the rooftops about, but when we compare to previous Augusts:

• August 2019: 5%
• August 2020: 23% (again, remember, this is 2020)
• August 2021: 1.5%

Yes, all three previous Augusts were positive trends while this August is negative – however, the change isn’t nearly as significant.

The difference between July 2021’s 5.7% and July 2022’s -5.5% is 11.2 total percentage points, while for August last year and this year, it’s just 3.7 percentage points.

Last month, we said, and we quote:

“Do we want to be nervous? Should we be nervous? Well… recessions are normal. They do happen. And businesses will respond to that with more conservative projections and austere practices. Let’s watch this space and see what August brings us.”

Well, now that we can see what August brings us, maybe there’s cause to be not as nervous as previously.

Still… the doomsayers in us like to persist. Recessions don’t just happen in a month and go away. It’s a long game and businesses need to be mindful of that.

3. Candidates per Hire

Workable defines the number of candidates per hire (CPH) as, succinctly, the number of applicants for a job up to the point of that job being filled. Let’s look at what’s going on here through August:

Now, this is interesting. After all that fluctuation that we pointed out in the August Hiring Pulse, we now see a considerable spike in the Candidates Per Hire trend of 13.3% for the month of August.

If you overlook the “recovery” of hiring metrics in the wake of March 2020 – basically, when the big COVID truck hit many of us – this 13.3% marks the biggest positive trend in our data for any month in 2019, 2020, 2021 and 2022 to date.

Surely, this must be somewhat normal for this time of year, you suggest.

News flash: no, it actually isn’t, not according to the data.

Check out what the CPH trend for June, July, and August looks like over the past four years:

Last month, we saw how the data for the three previous months of May, June and July made it pretty clear that 2022 was in a state of relative normalization, with the trend somewhat comparable to the last year before COVID – that being 2019.

But now, this isn’t the case at all. There are more candidates per job in August than previous. And the last time we saw such a monumental spike in the CPH trend was in the exceptional months after March 2020.

While we’ll write off those early COVID months as anomalous, it’s worth mentioning that those months were also months of desperation; there were many candidates out there in the wake of mass layoffs, and they were scrambling to find new work.

This time isn’t so different. Under the lingering shadow of a “maybe” recession, layoffs also surged. Couple that with just-quit workers from the Great Resignation feeling nervous about the road ahead and thinking it might be smart to get back into full-time work before the well runs dry, and we have a situation where jobseekers are no longer at a premium but now potentially becoming a surplus.

Deep dive – UK & Ireland

In the last few months, we’ve received a few inquiries: “All this Hiring Pulse stuff is great and stuff, but do you have any data specifically for those of us in the UK?” Well, we heard you and we’re taking action right now.

So, in this month’s Deep Dive, we look at these three hiring metrics specifically for the UK and Ireland (UK&I).

While we know that you’re interested specifically in UK&I metrics – it helps to see how that looks against the overall data. So, we’re adding an extra line for the overall data in each of the three charts.

Let’s dive in:

1. Time to Fill – UK&I

Let’s first look at the Time to Fill trend:

When we look at the Time to Fill trendline for UK&I, it runs along a similar trajectory as the world trendline – unsurprising, to be fair, considering that the UK is home to the world’s fifth-biggest GDP (the U.S., China, Japan, and Germany being one through four) and thus, wherever the world’s economy rolls, the UK shall roll with it.

Ireland’s own economy is smaller as a whole, of course, but its GDP per capita is more than twice as much as that of the UK, and the fifth largest worldwide – so it has a presence in this data as well.

Now, if you really want to get geeky when comparing the area-specific data against the whole, let us help by pointing out two major areas where the trends differ: March through October 2020 and, yes, the last three months.

First, for UK&I’s data, we see considerable fluctuation for March through October of 2020 with a 4% uptick in April 2020 compared with a relative flatline of 0.01% for the overall CPH trend. Then, UK&I plummets considerably more so than the overall, falling to -9%, -14.7%, and -18.6% in TTF for May, June, and July 2020 compared with -6.2%, -8%, and -9.7% overall.

But then, UK&I recovers just as dramatically, rising to 3.2% and 5% for August and September 2020 with a minor -1.4% hiccup for October before falling back in line with the overall TTF metric, which saw steady recovery of -3.5%, -1% and 4.7% for those three months.

The difference in the last three months isn’t nearly so dramatic, but still worth noting because it’s just happening now: the divergence starts happening again in June 2022 with a -2.6% drop in the trend for UK&I compared with 1.5% overall.

Then, for July, we see a 3.3% uptick for UK&I compared with 0.4% overall, followed by August’s -0.7% for UK&I and -3.4% overall.

2. Total Job Openings – UK&I

Now, let’s look at job openings themselves:

For the most part, the trend for both the UK&I segment and the overall data more or less follow the same path upwards and downwards every month – but the fluctuation of the last couple of months is eye-catching.

June saw a -15.5% change in job openings in the UK and Ireland, compared with -9.6% worldwide, followed by 3.4% versus -5.5% for July, and finally, -9.5% for UK&I in August compared with -2.2% overall. Job openings are down quite a bit in UK&I compared with the rest of the world.

Pretty big differences, honestly. Does it mean anything? Not necessarily if it’s just happening for a few months as fluctuations do occur, but it’s worth watching.

3. Candidates per Hire – UK&I

Now, let’s look at the Candidates per Hire trend for the UK and Ireland:

One thing that the UK has been dealing with on top of COVID-19 is, of course, Brexit. As it happens, Brexit became official to a degree on January 31, 2020. At that time, the virus was certainly on the horizon but hadn’t hit the UK’s shores yet.

But now, the double whammy of the pandemic’s onset with the reduced options for working abroad for many Britons after Brexit is readily visible here, with the CPH metric spiking massively in Q2 of 2020 – the most obvious one being the stunning 54.5% jump in the trend for June 2020 compared with just 14.6% overall.

We don’t intend to ignore Ireland’s numbers – but in this case, with the UK’s much larger population, it’s almost certainly Brexit that contributed to this discrepancy.

Workable’s CEO, Nikos Moraitakis, told us in an email in the early days of the pandemic that books would be written about this time for years going forward. In that spirit, there will be – and already are – books written about the UK’s own unique economic experience in 2020.

What’s going on here?

Let’s wrap this up with a quick overview of the UK job market and then the US job market. First, according to latest data from the UK’s Office for National Statistics (ONS), July is showing full recovery and then some for payrolled employees, with an all-time high of 29.7 million employees making some level of income.

Now, the US Department of Labor reported last week that there was a gain of 315,000 jobs in US payrolls to an all-time high of 152.7 million employees – just a touch higher than the pre-pandemic high seen in February 2020.

Does this mean full recovery to pre-pandemic levels? Well, yes, kind of. And does this mean no worries about recessions?

No, absolutely not.

Sorry to break your balloon, but the worries of a recession are still very real. A good portion of those worries revolve around the housing market, with Goldman Sachs predicting a considerable crash in real estate to the end of 2022 and more so in 2023, bigger than Russia’s overall GDP crash since their invasion of Ukraine.

Likewise, analyst Ivy Zelman, otherwise known as “Poison Ivy” after predicting the 2008 market crash, is predicting another drop in housing over the next couple of years. We all know what that meant in 2008 and 2009 – a tidal wave leading to catastrophe in other economies.

But Liz Ann Sonders, chief investment strategist at Charles Schwab, had this to say about the surge in jobs and the worries around recession:

“This is a unique period of time, where we have, still, a relatively tight labor market, where there is still job growth, but companies have started to announce hiring freezes, some companies have announced layoffs,” she said.

“This could very likely be a recession where you don’t see the kind of carnage in the labor market that you see in most recessions.”

At no other time has there been such a surplus of jobs (two job openings for every one active candidate, according to DOL data). Couple that with inflation and higher salaries, and candidates have a very powerful deck to play with.

So, the job market remains active. Many employers are desperate to hire, and this trend may not quieten down anytime soon, even with layoffs and recessions. If there’s a downturn, it’s going to happen in economic pockets – not across the whole spectrum.

Thoughts, comments, disagreements? Send them to content@workable.com, with “Hiring Pulse” in the subject heading. We’ll share the best feedback in an upcoming report. Watch for our next Hiring Pulse in October!

The Hiring Pulse: Methodology

To bring the best insights to small and medium businesses worldwide, here’s what we’re doing with our data: when looking at a specific month’s trend, we’re taking the numbers from that month and comparing it to the average of the three previous months – and showing as a percentage how that month looks in comparison.

For example, if July shows an average Time to Fill of 30 days for all jobs, and the monthly average for the three preceding months (April, May, June) is 25 days, we present the result for July as a 20% increase.

The majority of the data is sourced from small and medium businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

But first, we want to tell you something important: we’re making a slight alteration in the way we look at data, specifically for the Time to Fill (TTF) and Candidates Per Hire (CPH) metrics. In past Hiring Pulses, we had measured trends based on jobs being opened.

For example, previously, if a job is opened in June, we would include that job’s data in TTF and CPH – meaning, the more recent jobs opened would naturally skew the data downwards in the latest months of the dataset because they haven’t had the time to build to normal TTF and CPH levels.

So, at Workable, we talked about this internally as a team, and decided on an adjustment – we would start looking at jobs based on the date the job was filled. So again, for example, if a job is filled in June, we would include that job’s data in TTF and CPH.

But since there’s an end date to all those jobs, we don’t have to worry about job data being skewed in recent months.

To be transparent, there’s a small catch that we do want to share – the dataset for jobs filled will be smaller than the dataset for jobs currently open, especially in more recent months. But there’s still a lot in this dataset to draw compelling conclusions from.

You saw a preview of this in the deep dive of last month’s Hiring Pulse. And this month is fully focused on jobs based on their hire date.

Let’s take the plunge!

How we’re looking at data

First, looking at SMB hiring data gives us an opportunity to look at benchmarks in the hiring landscape. But when the benchmark changes at unprecedented levels during these last two very weird years, it becomes an unreliable gauge.

So, it’s no longer helpful to look at the data YoY or even MoM. It makes more sense to look at rolling trends. Consequently, for the Hiring Pulse, we are looking at percentage increase or decrease compared with the average of the three trailing months. Want a more detailed methodology? Jump to the end and check it out.

As always, we look at the worldwide trends for three common SMB hiring metrics:

• Time to Fill (TTF)
• Total Job Openings
• Candidates per Hire (CPH)

Let’s start analyzing!

Table of Contents:

• Time to Fill
• Total Job Openings
• Candidates per Hire
• What’s going on here?
• The Hiring Pulse: Methodology

Main highlights

The three main highlights for this month’s Hiring Pulse are:

• We’re returning to before times – in other words, we seem to be stabilizing
• The job opening trend continues to trend downwards
• A surprisingly robust job market for July

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important to understand that definition: jobs that remain open are not included in this graph as they don’t yet have an “end date”. Only the jobs that are filled will be included here.

Got that? Good. Let’s have a look at TTF based on jobs that have been filled from the start of 2020 through to the end of July 2022:

We’ll just keep beating the dead horse here: the last two and a half years are unprecedented times for society. That’s reflected in the wild ups and downs throughout, starting with the incredible drop in the TTF trend right when COVID hit. That’s a sign of SaaS companies rushing to hire en masse as they capitalized on the digital transformation boom early on.

But, when we look at the TTF trend in the early part of these last two years (i.e. February/March/April), TTF drops noticeably (-3.9%, -8.1%, -3.6% in 2021 and -3.4%, -3.1%, -3.9% this year).

This, after particularly positive trends in January 2021 (8.5%) and January 2022 (8%).

Rough conclusion from all this? Because we’re now looking at job data based on the date the job was filled, a job filled in January will have likely been opened a couple of months earlier. There’s a lot of activity involving numerous members of the hiring team – the recruiter themselves, maybe another HR representative, a departmental team member, an executive, and of course, the hiring manager.

And December is holiday time for many – which means delays in business processes including in recruitment. All of those job openings get pushed back to January the following year when everyone is back in the grind – therefore prolonging TTF. Mid-November to mid-January is roughly 60 days – much higher than the average TTF of 42, according to Industry Today (industrial/segmential fluctuations aside).

Another observation: the six most recent months (February through July) suggest a much more stable TTF trend than we’ve seen since the start of 2020. The times they are a-normalizing? We shall see.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

So, let’s look at the raw job open numbers – which aren’t contingent on job opened/filled dates like TTF and Candidates per Hire.

These are just jobs opened in a given month and are a great indicator of the health of the economy. So, we can include July 2022 in this chart:

In July’s Hiring Pulse, we emphasized the anomaly that was the job opening trend for June – last month, it was -10.2% which is slightly updated to -10.1% in this chart. We suggested that economic jitters and business austerity measures were a factor in that drop in job openings compared with previous months.

That’s especially noticeable since June normally shows a positive uptick in job openings based on years past (2020 excluded, of course).

We’d hoped for the sakes of businesses everywhere that June would prove to be an anomaly. Well, July has entered the chat, and again, it’s a negative trend of -6% – slightly up from June, but still attention-grabbing.

Let’s look at what July looked like in previous years:

• July 2019: 7.2%
• July 2020: 49.5% (Like we said – we exclude 2020 due to the economic and social cataclysms of that year)
• July 2021: 5.7%

See there – generally positive trends. Except for this year. Same as what happened for June – where June normally looked robust in terms of job openings, only to see a negative trend in this year’s June.

Do we want to be nervous? Should we be nervous? Well… recessions are normal. They do happen. And businesses will respond to that with more conservative projections and austere practices. Let’s watch this space and see what August brings us.

3. Candidates per Hire

Workable defines the number of candidates per hire (CPH) as, succinctly, the number of applicants for a job up to the point of that job being filled. And now that we’re looking at jobs that are already filled up to the end of July rather than jobs opened, we’ll no longer see a skew downwards in the CPH trend in recent months.

Let’s look at what’s going on here through July:

What stands out with this one is the fluctuating CPH trend through the first seven months of 2022 with three positive-trending (February 0.5%, March 4.1%, and May 7.2%) and four negative-trending months (January -5.2%, April -1.8%, June -1.7%, and July -3.5%).

January is an easy one to explain away – as described in the TTF section, December will be a slower month for hiring, and that’s the same for candidate activity. When January rolls around, hiring teams will not have the same luxury of candidates to choose from, but because they really need to fill that job, they’ll just hire one and roll with it.

What about the negative trends seen in June (-1.7%) and July (-3.5%) of this year? We can add some perspective on those by looking back at May (7.2%). Pretty big drop from there forward.

Now, let’s look at what happened over the same period in the three years prior, with 2022 included for comparative purposes:

As stated above, 2020 is an anomalous year, with the spike in CPH very much attributable to the numerous jobs lost in the early part of that year after COVID set on the land.

But then, 2021 shows a huge drop in the CPH trend for May, and slowly rises for June and July.

Now let’s look back to pre-pandemic times: 2019 shows a positive May trend followed by a drop in CPH for June and July – and that’s the most comparable statistic to what happened this year. Is it worth noting that 2019 might be the most recent “normal” year for society and business overall? The lines for 2019 and 2022 in the chart above are visually similar.

Perhaps it is. And if that’s the case, then the fluctuations in the CPH trend for the last three months this year can be considered relatively normal if we’re comparing to 2019.

There’s a lot more data science to be conducted here, of course – but it’s worth thinking about as we move deeper into Q3.

What’s going on here?

Well, guess what? Despite widespread predictions to the contrary, the US job market is sizzling red hot. July saw 528,000 new jobs added – more than twice the forecasts of Wall Street. It’s worth looking at real job changes month-over-month in the chart below:

(If you’re wondering, April 2020 saw a negative change of 20.5 million jobs. Such a huge change that if we adjusted the chart to show it, the changes month over month in the rest of the chart would be not be nearly as discernible. So… we let it fall off the chart to where it belongs.)

In the US, we’re also seeing the highest-ever total employees ever, with a total of 152.54 million working in the country right now. Second-highest total in a given month? February 2020, at 152.5 million total employed. Third highest? January 2020, at 152.13 million.

Fourth highest all time? Um, it’s June 2022, at 152.01 million.

See what we wrote up there about things looking like 2019 and that 2019 was the last “normal” year? Plus, unemployment in the United States dropped to 3.5% – matching a 50-year low that was set just before the pandemic.

We’ll let Charles Schwab’s chief investment strategist Liz Ann Sonders take this one:

“There’s no way to take the other side of this. There’s not a lot of, ‘Yeah, but,’ other than it’s not positive from a market or Fed perspective,” she said. “For the economy, this is good news.”

But – sorry, Ms. Sonders, but we still like buts – 57.7% of the job gains for July are concentrated in four sectors: leisure & hospitality, professional & business services, health care, and government. What’s more – leisure & hospitality is still 1.2 million workers short of pre-pandemic levels.

As we know from experience (looking at you: dot-com bubble, 9/11, subprime mortgage crisis, and most recently 2020) – a good economy always has a half life. We’ve been predicting something bad in the future for a few months now – but the markets indicate otherwise. So far.

Ultimately, it’s good to be prudent. Have a contingency plan in place for whatever potential scenario may play out. After all, highs in total jobs were set just before the great COVID fall, and those highs are now being surpassed in the last two months. What goes up must come down? Maybe, maybe not.

We’ve quoted a former Workable executive in a past Hiring Pulse:

“First of all, make sure that you’ve got a number of contingency plans in place. Work out a lot of different scenarios which you are ready to deploy as the situation evolves. Secondly, don’t lose track of the more short-term or tactical objectives. Essentially, make sure that you also have a weekly plan on how you want to manage this.”

We’ll paraphrase with this: it’s always smart to be smart when managing a business, including in hiring.

Thoughts, comments, disagreements? Send them to content@workable.com, with “Hiring Pulse” in the subject heading. We’ll share the best feedback in an upcoming report. Watch for our next Hiring Pulse in September!

The Hiring Pulse: Methodology

To bring the best insights to small and medium businesses worldwide, here’s what we’re doing with our data: when looking at a specific month’s trend, we’re taking the numbers from that month and comparing it to the average of the three previous months – and showing as a percentage how that month looks in comparison.

For example, if July shows an average Time to Fill of 30 days for all jobs, and the monthly average for the three preceding months (April, May, June) is 25 days, we present the result for July as a 20% increase.

The majority of the data is sourced from small and medium businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.

Also worth noting is that layoffs and discharges according to U.S. Department of Labor data is not spiking across the spectrum – in fact, it’s remained at a stable pace month over month:

Plus, when you compare layoffs and discharges with previous years – and yes, “before times” – in the United States, you’ll find that the number is actually lower than the norm. Of course we’re still in highly unusual times. That crazy spike in March/April 2020 led to a pendulum swing in the opposite direction with a high number of hires soon afterwards.

And now, while layoffs are indeed happening in startups, those more established SMBs may have already optimized their worker base enough from the 2020 tempest that sudden changes aren’t as necessarily required two years later.

Meanwhile, the Great Resignation continues, especially in the United States, which has just seen its 12th consecutive month of upwards of four million job quits. Many of those quits have traditionally been at lower-level positions, but we’re now seeing the trend starting to happen at the managerial and directorial levels.

Anyway, let’s set layoffs and Big Quits aside for a moment and look at other potential fallouts from the gloomy projections of a recession ahead. Here’s this month’s Hiring Pulse, with a special and different look at SMB hiring trends in our deep dive.

How we’re looking at data

First, looking at SMB hiring data gives us an opportunity to look at benchmarks in the hiring landscape. But when the benchmark changes at unprecedented levels during these last two very weird years, it becomes an unreliable gauge.

So, it’s no longer helpful to look at the data YoY or even MoM. It makes more sense to look at rolling trends. Consequently, for the Hiring Pulse, we are looking at percentage increase or decrease compared with the average of the three trailing months. Want a more detailed methodology? Jump to the end and check it out.

As always, we look at the worldwide trends for three common SMB hiring metrics:

• Time to Fill (TTF)
• Total Job Openings
• Candidates per Hire (CPH)

Let’s start analyzing!

Table of Contents:

• Time to Fill
• Total Job Openings
• Candidates per Hire
• Deep dive – jobs filled data
  • Time to Fill
  • Total Job Fills
  • Candidates per Hire
• What’s going on here?
• The Hiring Pulse: Methodology

Main highlights

The three main highlights for this month’s Hiring Pulse are:

• New job postings are down
• Jobs being filled are also down – way down
• Candidates per hire is going up for jobs filled in May and June

1. Time to Fill

For this report, Workable defines “Time to Fill” as the number of days from when a new job is opened to when that job opening is filled. It’s important to understand that definition: if a job is opened in January this year or even as early as August last year, but isn’t filled until June 2022, it won’t count in this graph. If another job is opened on the same day last January or August but is filled on May 31, it does count in this graph.

So, we’re looking at the TTF trends only up to the end of May. Got that? Good. Let’s have a look:

Rather than simply call out the sharp drop in TTF in the most recent months, let’s do what we’ve done in previous months – compare this graph to the one in May, and to the one in April, and so on. In this graph, we see five consecutive months of significantly shorter TTF metrics, down to -18.2% in April and -25.3% in May.

In June’s Hiring Pulse, we saw only four consecutive months of significantly shorter TTFs – ending in -18.5% in March and -26% in April.

In May’s Hiring Pulse, it was – wait for it – just three (four, if you really want to count the miniscule -0.8% change at the start of the drop), ending with -19.2% and -27.4% in the two latest months.

Ditto for April’s Hiring Pulse, ending with -22.8% and -29.2%.

What does this tell us? Even with the clear variable of this data being measured forward from the time a job is opened, TTF is still dropping. If you want to see what the data looks like for jobs filled and going backwards from there instead, we now have that data and we’re going into it in the deep dive below.

2. Total Job Openings

Total job openings represent the total number of job openings activated across the entire Workable network.

So, let’s look at the raw job open numbers – which aren’t contingent on job open/close dates like TTF and Candidates per Hire.

These are just jobs opened in a given month. So, we can include June 2022 in this chart:

You know that old trope where a news editor comes running into the room and says, “Stop the printing press! Rip out the front page! We’ve got a story here!”

Well, we may have a story here in that strikingly negative -10.2% drop in the job opening trend for June.

To add context: a drop in new job openings is pretty normal – for the end of the year:

• -9.5% and -23.5% in Nov-Dec 2019
• -3.0% and -8.3% in Nov-Dec 2020
• -0.3% and -11.9% in Nov-Dec 2021

And of course, there’s the COVID-quake that hit us in the spring of 2020 where the job opening trend was a staggering -22.9% in March, an incomprehensible -51.6% in April, and -23.2% in May of 2020.

But this is June. It bears noting that we don’t see this kind of data in previous Junes:

• -8.1% in June 2019 (this being the only one closest to June 2022)
• 20.3% in June 2020 (an anomaly in the opposite direction, since businesses were very much rebounding from the COVID-quake)
• 6.8% in June 2021 (not much of a change from May 2021’s 6.9% or to July 2021’s 5.7%)

We’ve talked about fragile economic nerves and end-of-Q2 planning – maybe that’s what’s happening here as well. While layoffs and terminations aren’t hugely different from previous months, companies are definitely opening fewer jobs.

That’s interesting considering that the job quit numbers in the US remain at ruthlessly high levels. Normally, when someone leaves, that position will be backfilled. But maybe companies are seeing turnover as a blessing in disguise – rather than backfill, they see this as an opportunity to wait and see what the waters look like ahead without needing to resort to layoffs. Convenient business austerity at work, perhaps?

3. Candidates per Hire

Workable defines the number of candidates per hire (CPH) as, succinctly, the number of applicants for a job up to the point of that job being filled.

Let’s look at what’s going on here through May:

(NOTE: Again, as in the TTF chart, you’re probably wondering why we stopped the numbers in May. Again, as stated above, that’s because these data are based on the time the job was opened, not when it was filled. Moreover, even jobs that remain unfilled are included here.)

Again, interesting numbers here in this SMB hiring trend. In last month’s Pulse, we noted that the average candidates per hire for April, the most recent month of data last month, was -4.4% less than the monthly average in Q1.

This time, the most recent month of data, May, shows a much more dramatic -14.4% change from the previous three-month average. And April has changed from -4.4% in last month’s Pulse to 1.9% in this month’s report.

A clear takeaway from this is that applications to jobs opened in April grew significantly throughout June. With fewer jobs being posted in June, this suggests that there’s a spillover to older but unfilled job postings for today’s candidates.

In other words – the list of recent jobs is shorter now, so in scrolling through jobs in reverse chronological order, candidates will encounter those older job postings more frequently than in the past, driving up CPH for those earlier postings.

Maybe there’s an opportunity for SMB employers who are still trying to fill those older jobs: take a look at them, tinker with them so they’re more relevant to today, and resurface them so they’re at the top of the pile once again. Don’t make the candidate have to look backwards to find you. Be the first company they see at the top of the pile.

Deep dive – jobs filled data

The challenge with dissecting these data points is that the dataset involves all jobs that have been opened – not just the ones that have been filled.

Plus, we include jobs opened in May in this dataset – even with the luxury of one full month of extra data after that. Consider that the Time to Fill and Candidates per Hire will be much lower for a job opened just before midnight on May 31 than it would be for a job opened in March. This can create a weird variation in the data because all this falls into the same dataset regardless.

So, as we’ve mentioned umpteen times, the drop in CPH and TTF in recent months makes sense to a degree. We’ve attempted to circumnavigate that by comparing the most recent months between different reports which does lead to interesting insights.

One major reason we’ve done it this way up to now is because we get to analyze a much larger dataset – giving us the opportunity to segment the data based on industry, function, and location.

But you know what? We now have data based solely on jobs that have been filled. This gives us an opportunity to look at SMB hiring trends right up to the end of June. Let’s dive in!

1. Time to Fill

Let’s first look at the Time to Fill trend for jobs based on the date when they were filled:

What’s especially intriguing is that the TTF trend for jobs filled in January 2022 is a significantly higher 7.5% jump from the monthly average of Q4 2021. For “all” jobs whether filled or not, it’s -8%.

Other than that, the TTF trend still drops quite a bit in the months after that – coming up for air in May at 1.1% and June also at 1.1%. We’d like to sit and watch what the trend looks like for this going forward with stabilizing TTF in the two recent months – yes, that means this isn’t going to be the only time we look at jobs based on the fill date.

2. Total Job Fills

Now, let’s look at jobs themselves. This one’s a bit different from the Job Opening trend, because we’re now looking at the trend of jobs being filled in a given month:

Good news or bad news first? Let’s start with the good: Q1 2022 saw a lot of activity in job openings, with 17% in January, 14.2% in February, and 20.4% in March. For jobs filled, the trend is -1.1%, 8.9% and an eye-catching 30.8% for the same three months.

Since a job won’t usually be filled for some time after it’s opened, it makes sense that a higher trend of job openings in January and February would mean a spike in jobs filled for March. And that’s clear here.

Now, the bad: we pointed out the -10.2% for June in the Job Opening trend above – for data based on jobs filled, we see a more moderate -4.4% change in June compared with the trailing three-month average. While that doesn’t necessarily call for alarm, it’s something we should keep an eye on, because for the last two Junes, there’s a positive shift in jobs being filled:

• 17.7% for June 2020 (take that with a grain of salt – it was -12.4%, -55% and -36.9% for March, April and May 2020 respectively)
• 11.7% for June 2021 (very significant considering consistently positive trends of 17.2%, 52.5%, 22.2%, and 9.5% for February through May 2021 respectively)

Yet, this June sees a drop, on the heels of an insignificantly positive 0.2% trend for April and 3.2% for May this year. While we can explain away some of this as entrails of these crazy times, we still need to watch this space.

3. Candidates per Hire

Now, let’s look at the Candidates per Hire trend for jobs that are filled in a given month:

The CPH trend in the dataset based on the job-open date shows relatively steady decline in recent months – again, as in the TTF data, it’s because more recent job postings will not have had the time to collect candidates as older job postings.

But this time, we now get to see what the CPH landscape looks like for jobs that are already filled in a given month – and the difference is that jobs filled in May have collected more candidates than previous months, at 6.7% higher than the February-March-April average. But it goes back underwater with a 0.9% shift in June. Still, this is after negative trends in most months dating back to the start of 2021.

So, while the numbers look a little different here, it’s still true that employers hadn’t been seeing as many candidates per job as they had in the past – but the upturn in CPH for jobs filled in May combined with with the evidently unseasonable drop in jobs being filled in June is something to take note of.

What’s going on here?

Honestly, the changes in the most recent months all point to recession jitters. Companies see what’s going on in the market – the plummet of the stock market, the hike of the interest rate, the rise of inflation, etc. – and they will naturally turn to contingency measures to stay afloat and keep their bottom line out of the red zone.

We’re seeing this in the lower number of jobs being posted. This, in spite of the ongoing Great Resignation (which amounts to more than 51 million job quits in the United States over the last 12 months). You’d think more quits would equal more jobs posted as a result of backfills – but that’s not happening in recent months.

And on the candidate side, the throngs of people who have left their jobs for other pastures may be seeing the recession on the horizon and realizing that it may be a smart idea to lock in a more secure job and ride out the storm before pursuing their passion project any further. No, we haven’t grounded this in science – it’s just one potential explanation for the rise in candidates per hire along with more concentrated candidate pools across fewer job openings.

But, then, we have a new report from the US Department of Labor showing once-again strong job gains for June to the tune of 372,000 payroll additions, and those additions at higher wages to boot.

According to Reuters, Indeed economist Nick Bunker said: “If you’re looking at this report for signs we’re already in a recession, you’re likely to come up blank.”

These SMB hiring trends are not numerical soothsayers – they are merely indicators of what the road ahead may look like: first, fewer jobs are being posted; second, more candidates are applying for jobs; and third, there’s a huge drop in jobs being filled in June.

Like the holiday season, the summer months (for those in the northern hemisphere, at least) can be a relatively slow time for hiring. June is potentially just the start of that. Let’s see next month whether these changes are due to recession jitters, seasonal hiring habits, or a mixture of both (or neither).

Thoughts, comments, disagreements? Send them to content@workable.com, with “Hiring Pulse” in the subject heading. We’ll share the best feedback in an upcoming report. Watch for our next Hiring Pulse in August!

The Hiring Pulse: Methodology

To bring the best insights to small and medium businesses worldwide, here’s what we’re doing with our data: when looking at a specific month’s trend, we’re taking the numbers from that month and comparing it to the average of the three previous months – and showing as a percentage how that month looks in comparison.

For example, if July shows an average Time to Fill of 30 days for all jobs, and the monthly average for the three preceding months (April, May, June) is 25 days, we present the result for July as a 20% increase.

The majority of the data is sourced from small and medium businesses across the Workable network, making it a powerful resource for SMBs when planning their own hiring strategy.