Each week, we’ll brief you on notable stats and happenings related to current events impacting the job market now or in the foreseeable future.
An Hour of Power in Austin
Talent acquisition professionals from all over the Austin, TX area joined members of the BountyJobs team for our Talent Acquisition Lunch Power Hour. It was a lively discussion with both employers and agencies centering on ways to get the most ROI out of third-party search, pain points and solutions felt on both sides of the desk, as well as key metrics to track to get the most impact out of your data. Some common themes mentioned were:
- Difficulties in Finding the Best Talent Quickly and Within Budget
- Agencies Not Clear on Employer Needs
- Lack of Communication Between Employer and Agency
- Challenge in Finding Key Candidates for Niche Roles
- Core data, trends in salaries and fees, and other data pulled from our latest annual report
We really enjoyed connecting with our local community and we’re already looking forward to our next event.
Seasonal Hiring Plans Announced
Tis the season…many popular retail chains are announcing their plans for employee coverage during the busy holiday shopping season.
- Williams-Sonoma is taking a different approach by hiring remote seasonal workers. These employees will work with home furnishing and gift orders. These tasks, and the training that comes with them, will all be done from home. Hours will be between 30-50 a week and wages between $11 to $11.50 an hour (based on state wages). Another perk? A 40% employee discount.
- Walmart and Kohl’s are also making a slight departure from traditional seasonal hiring. Walmart will be relying on existing employees to cover the crunch. “These extra hours will help staff traditional roles like cashier and stocker, and newly created positions such as personal shoppers and pickup associates,” Judith McKenna, chief operating officer for Walmart U.S., said in a statement. “This is what working in retail is all about, and we know our associates have the passion to do even more this year.” More here.
Similarly, Kohl’s will hire only a fraction of seasonal staff as in years previous, also relying on current employees.
- J.C. Penney estimates they will bring on 40,000 new hires.
- Target Corp. is looking to add around 100,000.
- Recently filing for bankruptcy, Toys ‘R’ Us may hire around 12,000 seasonal workers on a part-time basis. Weekend rates during peak holiday times as well as discounts will be perks for employees.
- Macy’s has announced they will be hiring about 80,000 seasonal workers.
- United Parcel Service (UPS) is planning to hire an additional 95,000 workers for the holiday season — and technology will help make the most of the extra manpower. The U.S. company’s chief financial officer told CNBC Wednesday that the package delivery firm utilizes tech in real-time to enable “predictive distribution”.”There are not many businesses in the world that can flex up 100 percent for a four to six-week period,” Richard Peretz, a member of CNBC’s CFO Council, told Squawk Box.
Technology for the Win
The Hackett Group recently released benchmark analysis that found that world-class HR organizations spend 25% less than average HR organizations and function with 30% less staff, but are more effective. In addition, the report shows that such organizations focus more of their budgets on cloud-based technology and selective outsourcing compared to other HR groups.
Target Increases Their Mark
Target just announced a minimum pay hike to $11 an hour and a second increase to $15 by 2020. In recent years, others in the industry have implemented increases as well: TJ Maxx raised its minimum wage to $9 an hour and pays long-term employees $10 an hour. Costco starts at $11.50 an hour and pays workers on average $21 an hour. Walmart raised its minimum wage to $10 last year…will the company follow Target’s lead and work toward offering $15 by 2020?
U.S. ‘Fully Employed’ – Forces Companies to Consider Additional Hiring Options
As many analysts consider the U.S. ‘fully employed’ with the unemployment level camping out around 4.3%, new challenges affect hiring companies. Amidst the frustration of not finding skilled workers to fill their roles, many are looking toward other sourcing options: employees with disabilities, seniors, as well as those requiring flexible schedules.
It’s a Marathon, Not a Sprint
Korn Ferry’s Futurestep division recently published results from a global survey of 1,100 hiring professionals. In it, they found that time-to-fill was less a success metric than was the long-term success of the new hire. George Vollmer, Vice President for Global Accounts and Strategic Development for Korn Ferry Futurestep states, “Traditionally, the job of a talent acquisition professional ended when a position was filled. In today’s competitive hiring marketplace, the focus has shifted to finding, hiring and retaining workers who cannot only succeed today, but who can also be the leaders of tomorrow.”
Show Me the Money
The San Francisco Bay Area, long known as the hotbed for technology opportunities, continues to have scalding hot pay rates to match. Hired.com released recent findings within their ‘State of Contract Work’ study that state that tech contractors in the Bay Area have the highest average hourly rates at $103 an hour. Seattle comes in second at $97 an hour.
IKEA Group Acquires TaskRabbit, Inc.
Details around the deal were not released, but per TechCrunch, TaskRabbit had raised $38 million from such investors as Founders Fund, First Round, Floodgate, etc. This seems like a match made in heaven as the arduous task of following Ikea assembly instructions has left many customers dumbfounded, as after piecing furniture together the inevitable question is, “hey, why do we have all of these pieces left?”
Rocky Mountain High…Is Low
The Denver area has the lowest unemployment rate when compared to other U.S. metro areas. Per the U.S. Bureau of Labor Statistics, Denver has the lowest rate at 2.2% and the Cleveland-Elyria area in Ohio has the highest at 6.8%.
Unemployment Insurance Claims on the Rise
Up 9,000 from last week, the U.S. four-week moving average of initial claims for unemployment insurance is at 277,750. The U.S. Department of Labor also reports that this is the highest level for this average since February 6, 2016 when it was 277, 750. Per Reuters, we are seeing these changes in part due to Hurricanes Harvey and Irma. Reuters economists had predicted the increase to reach 270,000.