GDP Growth Continues with a Tight Labor Market
The Numbers: Per the ‘July 2018 NABE Business Conditions Survey’, 87% of panelists forecast real GDP growth higher than 2% over the next 12 months. “All panelists expect continued economic growth over the next 12 months, with most panelists anticipating inflation-adjusted gross domestic product — real GDP growth — to exceed 2%,” said NABE Business Conditions Survey Chair Sara Rutledge, an independent real estate economist. “Labor market conditions are tight, with skilled labor shortages driving firms to raise pay, increase training, and consider additional automation.”
U.S. Facing a Severe Shortage of Pilots
The Numbers: The Federal Aviation Administration reports that in 1987 there were about 827k pilots in the U.S. That number has now decreased by 30%. At the same time, the International Transport Association predicts that the demand for air travel will double over the next two decades. The demand is already being felt as Boeing and Airbus have $43 billion worth of airliner orders. In addition, Delta is expecting to hire 8,000 pilots over the next 10 years so has been giving conditional job offers to college students and is encouraging flight attendants and other staffers to take unpaid leave to attend flight school to help make up for the gap. American Airlines has started to offer loans to student pilots. The topic of automation is a hot one, as you can imagine.
The Numbers: The largest volume of job seekers throughout the year includes July – strategies must be put into place to keep recruiting momentum going. While the number of job postings decreases in the summer, those that are applying are typically serious candidates. Key decision makers may be out of the office enjoying summer vacations so it’s imperative to massage all candidate funnels and be ready to hit the ground running coming out of the summer months. For specific action plans for each segment of the year, download the free report.
U.S. Independent Workforce Still Strong, High Revenue
The Numbers: According to the ‘2018 State of Independence in America Report’, the number of independent workers increased by 2.2% to total 41.8 million – and generated about $1.3 trillion in revenue for the U.S. economy. 79% of independent workers are happier than when working traditional jobs and 68% say it’s better for their health.
Going Digital Requires a Look at Company Culture
The Numbers: A report from Boston Consulting Group found that organizations that focused on culture were five times more successful in digital transformation than those that didn’t. In addition to having digital products and services, a company also needs a culture that supports the transformation. 80% of organizations that nurtured a digital culture saw breakthrough performance.
Facebook Report Points to Diversity as Area to Improve
The Numbers: Within Facebook’s ‘2018 Diversity Report’ findings include female employees for the company rose from 31% to 36%. The report covers the past four-years ending in 2018. As well, women in tech roles increased from 15% to 22%, business and sales from 47% to 57%, and senior leadership roles from 15% to 22%. However, only modest gains were seen in diversity beyond gender – the number of African American employees rose from 2% to 4% and the number holding tech and leadership roles stayed flat at 1% and 2% respectively. Hispanic employees accounted for 4% of staffers, down from 5%. The percentage of LGBTQ employees increased slightly from 7% to 8%. The company states they have plans to improve diversity.
Hiring Decisions Impacted by Cultural Norms
The Numbers: A report from Jeanne Tsai of Stanford found that how an applicant feels during the interview process can make a good impression. 86% of European Americans were found to want to come across as excited instead of calm while only 72% of Asian Americans did. American employers were found to make an offer to candidates appearing excited rather than relaxed and calm.
Employers Struggle to Offer Valuable Incentives for Millennials and Gen Zers
The Numbers: A survey by Allegis found that 70% of respondents felt that their ‘outmoded work practices, sketchy career paths and limits on achievement, development and marketing’ are negatively affecting their ability to hire and keep millennials and Gen Zers. 69% cited flexible work schedules, wellness programs, and fast-track promotions as problematic perks.
List of Most Sought-After U.S. Employers Released
The Numbers: A SurveyMonkey and Fortune poll ranked the top 75 companies to work for. The findings were based on employer appeal, innovation and impact on the country, willingness to change for success, and additional criteria. As expected, tech companies took the majority of slots. The list also segmented the companies out based on gender, region, diversity, customer services and political party – women had Walt Disney on the top of their list…men had Boeing.
Budgets for Salaries Sightly Up
The Numbers: According to WorldatWork’s ‘2018-2019 Salary Budget Survey Top-Level Results’ report, salary budgets in the U.S. are to reach 3.2% in 2019 – this is the first time budgets have been up above 3% in four years. India had the largest budget increase at 10%. On the other end, Brazil had the largest budget decrease from 7.5% to 5.9%.
Most Employees Interrupted Every 6 Minutes
The Numbers: A study by RescueTime found that, on average, workers check email or text messages every six minutes. 40% of employees never reach 30 minutes of uninterrupted work time…and 17% can’t even get 15. 35.5% of employees in on-demand cultures check email or texts every three minutes. Using Slack? Slack users switch between communication methods every 5 minutes on average, while non-Slack users check messages every 8.
Manufacturers Face Severe Skills Gap
The Numbers: A report from Advanced Manufacturing states that industry executives say their industry is facing a serious skills gap that shows no sign of slowing down. The adoption of new forms of manufacturing is a challenge for both older and newer workers – continuous training is the main solution recommended by experts.
Female Minority C-suite Members Paid Less
The Numbers: An analysis from Comparably shows that African-American C-suite officers are the paid the least across most executive titles, and women of all races earn less than men in every job category. Sales VPs (base pay plus bonuses) are highest paid at $302,294 annually, second are CMOs at $297,831, and CROs at $254,844.
Counteroffers Just Prolong Retention for Short-Term
The Numbers: A survey by Robert Half finds that employees that accept counteroffers leave the company in less than two years anyway. In order to keep an employee on staff that has received another offer, many companies will offer higher salaries to entice them to stay – but this is not a long-term solution.
Majority of Workers Open to New Opportunities
The Numbers: A survey from Accounting Principals and Ajilon found that 80% of full-time workers are ‘actively seeking or passively open to new job opportunities.’ 59% of respondents feel that 1-2 years is the right amount of time to stay on a job before looking for new opportunities.
Web Dev Gigs Growing Quickly
The Numbers: Freelancer.com reported that web development jobs are the fastest-growing on their platform. The job category, ASP, or ‘active server pages’ saw a 54.8% growth in jobs (ASP is older tech typically run on a Microsoft web server to allow devs to create dynamic and interactive websites).
Side Gigs Kept From Bosses
The Numbers: A survey from Clutch found that while 36% of workers have a side job, 25% of them don’t mention it to their managers at their main jobs. 17% say they are actively looking for a side gig. “If it’s not a conflict of interest and it’s not getting in the way of the person’s work, the manager should stay out of it,” Alison Green, management consultant, said.