2021 Predictions Managing Your Workforce - Goldbeck Recruiting
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your decisions this year. I hope you Introduction find it to be a valuable use of your time. If it’s not, let me know about it on LinkedIn and we can build both It might seem counterintuitive to our profiles with some healthy public start off a report such as this by debate. saying that I’m skeptical of predic- tions, but it’s only fair I’m honest with One piece of advice I will give that you. is more important than any individu- al decision is this: Take the time to I think we all know a few examples hire the best people. Whether you of the loudest, most confident use a recruitment agency or not, person in the room getting an out- this will always be worthwhile no sized share of attention for their HENRY GOLDBECK matter the circumstances you’re opinion. Then when someone else President faced with in 2021. responds with the variables and fac- tors behind a differing prediction, eyes glaze over. We tried to walk the follow the rules over the break. If line between that. This report was A NEW BASELINE HAS BEEN hospital capacity is managed, then designed to give you a range of set, and companies have all adapt- I believe we will have a good year. personal opinions from our team ed to work under COVID restrictions. The key will be the first quarter, that you can combine with the As we write this in the run up to the heavily dependent on the general opinions of other experts and politi- holidays, the biggest thing we’re health figures. I’m a big believer in cians you follow and piece together watching for is how closely people the K-shaped recovery. Particularly
here in BC’s Lower Mainland, we be keeping a close eye on the US, Early Performers Medical Supplies, have strong industries like construc- and the Biden administration will not Streaming, E-Commerce tion and tech that will continue to do Alberta any favours. Our 300 grow. Amazon is adding 6,000 million + neighbours to the south are Rebounding Business people to The Post building, current- heading into the worst COVID Home Improvements, Surgeries, Technology ly under construction in a perfect phase to date, and they’re strug- literal example. gling to manage hospital capacity. This may affect the import/export The vaccine will run its course over industry in particular, which has Painfully Slow, But Not Out the year. Once things stabilize, the widespread potential consequenc- Airlines, government will invest heavily on es from US food to auto and lumber Entertainment, Car Sales infrastructure to boost the econo- demand. Casualties my. Our economists aren’t afraid of Over-Leveraged, Cash-Flow Driven deficit spending and our federal It will all come down to our local Small Businesses and provincial leadership will spend consumers in the end. We think that more liberally in contrast to past they’ll have a lot of pent up spend- crises. Business owners have already ing desires come the summer and started their own spending. Plans the next holiday season. Personally, I and strategies hamstrung by the first think it will be the biggest Christmas lockdowns and uncertainty are spending ever in 2021. By then, we’ll unfolding now. Goldbeck had a be publishing our next batch of pre- similar October and November to dictions and if we were right, we’ll pre-pandemic levels, and our net- make sure to dust off this report. But work is busy preparing for next year. most likely, we’ll pretend we never We do have some concerns. We’ll said any of it!
Table of Contents 5 Hiring and Compensation 6 Candidate Mentality The following report contains two types of insights, useful to employers and employees alike. 7 Benefits, Safety and Health 8 Lifetime Learning and Realignment The first is observational. Where do we stand today? This is the compar- atively easy part, although putting it into perspective still requires 9 Working Remotely expertise. 11 Virtual Recruiting, Interviewing and Onboarding 12 Communications and Engagement The other is predictive. Where are we going tomorrow? Our executive recruiters and senior team are in close contact with a wide range of 12 Online Everything business leaders. In order to take advantage of their knowledge, 13 The Role of Recruiters we’ve teed them up and instructed them to take a rip. Let’s see who hits the fairway. 14 Facing Uncertainty KEVIN BRITTON KAREN EPP WILL GOLDBECK CIARAN HENDERSON JESSICA MILES ALLESSIA PAGLIAROLI JUDY SLUTSKY Executive Recruiter Executive Recruiter Business Development Manager Executive Assistant Executive Recruiter Executive Recruiter CPHR Consultant
PERCEPTIONS OF WHEN HIRING AND COMPENSATION THE PANDEMIC WILL END Of this we are confident: workers will still be needed in the foreseeable future and they will still expect to be compensated. Our shifting econo- Δ LAST OCT WAVE 20-21 my remains in flux, but there will be a light at the end of the tunnel. This Less than 6 particular period defies the easy +3 11% months 14% characterization of boom or bust, employer’s market or employee’s. 6 months to “Several factors indicate that this “Something that I believe we’re 42% +9 33% 1 year downturn is different,” says the Har- going to see is the continued trend vard Business Review. “And there toward smaller offices and working 1 - 2 years 40% are warning signs that Hiring Man- from home,” says our Executive 35% -5 agers dusting off 2008’s hiring play- Recruiter Kevin Britton. “We may book may destroy considerable see even more contract / contrac- Longer than 2 years 8% -7 15% value for their firms.”1 tor agreements than actual em- ployees as people are going to Several of our executive recruiters want to write off their homes as and members of our senior team offices, supplies, travel etc. Compa- Angus Reid Poll taken Dec 16-17, 2020. Base: TOTAL applicable shared their thoughts on compen- nies may be forced to pay for cell (n=1,510). Q: There’s been a lot of talk of “when this is over”. In your mind, what will that look like? Q: In the previous question, you sation and hiring. bills, laptops, and internet. This, of course, would be minimal for smaller said [PIPE IN Q_NORMAL] And when do you think this will happen? 1 “Why Hiring During Covid Is Different Than in Previous Downturns.” Harvard Business Review, December 7, 2020. https://hbr.org/2020/10/why-hiring-during-covid-is-differ- ent-than-in-previous-downturns. 5
companies that have large offices CANDIDATE MENTALITY making a move at this time.” that cost a fortune in comparison.” With the state of the economy Pagliaroli sees an uptick in interna- Goldbeck Executive Recruiter Jessi- uncertain, perhaps many are hesi- tional applicants. ca Miles sees current realities tant to walk away from their current impacting compensation for sales- positions. “Many applications are coming people. from the USA (and other countries “I’m getting fewer applicants from too), definitely more than usual. On “Since sales representatives are postings,” reports Goldbeck Execu- the other hand, the immigration selling more virtually, companies are tive Recruiter Karen Epp. “Of these, processes have slowed down so providing mileage for car use, most are new Canadians or here on many candidates are in an implied rather than monthly car allowances. work permits. People are holding on status waiting for PR, which is usually We were already seeing this trend to their jobs and not as open to a deterrent for our clients.” before the pandemic.” 18-34 Despite the availability of recently 64% released candidates, our Recruiter 35-54 76% Alessia Pagliaroli observes that com- FOR YOU, 76% THOSE MORE panies are approaching hiring with PERSONALLY, Security December 2019: LIKELY TO 55+ 86% WHAT IS MORE Security 68% caution. IMPORTANT - Opportunity 32% SAY SECURITY IS MORE OPPORTUNITY IMPORTANT OR SECURITY? “Clients have been skeptical about Male 70% hiring candidates who have been 24% let go, even if it was due to COVID.” Opportunity Female 82% Angus Reid Poll taken Dec 16-17, 2020. Base: TOTAL (n=1,510). Q: Now, thinking about your life overall... For you, personally, what is more important - opportunity or security? 6
BENEFITS, SAFETY AND HEALTH cations to manage stress, disease, ny, the stricter their policies are pain.” towards travel during COVID, prob- Top of mind for both employers and ably due to liability issues.” potential employees are safety, While many are working remotely health, and benefits. (more on that later), those who must Janitorial staff were once consid- report to work are expecting a safe ered like hockey referees, the less As Alessia Pagliaroli says, “Due to the environment. Companies will have seen or thought of, the better the pandemic, benefits have become to focus on this goal, often at the job they were probably doing. Now- even more important now, so job expense of business as usual. adays they are featured as symbols seekers are asking more and more of a workplace’s commitment to to have benefits covered from day Says Jessica Miles, “Productions and sanitation. 1, instead of waiting for the 3-month operations leaders in many indus- probation period.” tries will face challenges around Karen Epp adds, “My daughter at workplace health and safety. The age 17 landed her first job doing Judy Slutsky, Goldbeck Recruiting’s challenge of increasing operational cleaning for Covid. I expect the Certified Professional Human efficiencies while maintaining cleaning industry has had to adapt Resources Consultant, also sees COVID protocols could come into to a lot of changes and demands. greater need. conflict. Some companies are She is tested weekly for COVID to requiring employees to travel, remain in her job. Will we see more “Employees may require greater despite the travel challenges and of this?” and different access to extended requirement to quarantine when health care options (physical thera- you get back to Canada. This is pies in person and online) as well as more for small to medium sized access to greater variety of medi- companies. The larger the compa- 7
LIFETIME LEARNING AND REAL TIME REALIGNMENT “Our need will be the real creator” – Plato With so many factors impacting the workplace, positions are being reimagined on the fly. Like society as a whole, companies have taken on the challenges of 2020 one day at a time, a trend that will continue in the near future. technology becomes a part of the “I saw executives take on lower Long gone are the days where gold employee deliverables,” says Judy level responsibilities because the watch ceremonies marking a half Slutsky. “We’re seeing a closer look business needed them to,” says Busi- century of service to one company at existing employee skills required ness Development Manager Will were commonplace. Today, more to meet new and future business Goldbeck. “I know a company than ever, even employees who do objectives, including new technolo- where after laying off outside sales have extended careers with a single gy required to do business such as people due to COVID, the VP of company are expected to embrace e-commerce and the leadership sales had to hit the road and lifelong learning. and management skills to work with become the de facto junior outside a remote workforce.” sales person for the company.” “Existing roles now require that new 8
WORKING REMOTELY work productivity and their ability to “I think more full time roles will be Have you ever sat by an ocean, maintain that coveted work/life bal- filled remotely,” says Will Goldbeck. lake or poolside on a hot summer ance). In fact, only one-in-five indi- “I saw one posting for a substantial day? Jumping in seems like a good cate that they want to go back to accounting position and you could idea, but somehow you’re hesitant the office full time, and two-in-five live wherever you wanted as long as to do so. After much delay you take saying not at all.”2 you kept 9-5 EST hours. They are a the plunge. Hours later you’re still normal office, but they figured why splashing about, hesitant to leave. Remote working is like that body of water: 2020 threw us in head first but now some of us aren’t ready to dry off any time soon. While the debate can be polarizing and many are anxious to get back to the work- place ASAP, it seems that we’ll see an uptick in the practice of remote work for the foreseeable future. According to Angus Reid, “Over the last year almost one-half of Cana- da’s workforce started working from home. These individuals report high levels of satisfaction with the experi- ence (specifically with their overall 2 Roy, Holly. Last Covid-19 Report of the Year, December 21, 2020. 9
not hire an accountant from home? their clients and for sales presenta- panies to diversify their workforce, Makes sense to me.” tions (Zoom, Teams, etc.).” save money and hire people with higher skills than the local market “I am receiving requests almost The consequences of this shift will go allows.” daily from applicants looking for beyond the ability to wear leisure remote jobs,” Karen Epp adds. “Will clothes from the waist down. Com- Henderson believes that this unlock- employers create and be open to panies are increasingly considering ing of geographical restrictions on more remote positions? In the past, the possibility that their candidate hiring will not only impact the way once a person proved themselves pool is global. The implications of we work, but the very places we call to an employer then remote work this are staggering and could take home. was considered. Candidates now years to fully realize. want it from the start of employ- “I believe that the valuation of tradi- ment. I think employers will continue ”I wonder if companies are going to tional commuter cities/towns and to be slow in this but am curious to be hiring people remotely more and beyond will rise in value. If people see how remote work evolves.” more often,“ says Executive Assis- only have to visit the office a couple tant Ciaran Henderson. “This may of times a month, I believe they will The trend toward remote applies to lend towards the globalisation of be willing to live further away, sales as well. the workforce in general. If you are hence raising the demand and the a company who is going to be value of the properties in these Jessica Miles points out, “As the hiring for a specialized position that areas.” pandemic continues, customers are is going to be working fully remote, not allowing sales representatives in. then this does not limit you to the ‘Doveryay, no proveryay’ goes the Sales people are pivoting and using local geographical region. This Russian wisdom, which translates to virtual tools to stay in touch with could be a big opportunity for com- ‘trust, but verify.’ It was a mantra oft 10
repeated by Ronald Reagan as he ly, but recruiting, interviewing, and and his Soviet counterpart Mikhail onboarding as well. Gorbachev worked to thaw the Cold War in the 1980s. It seems that “Recruiting will be more virtual,” many managers feel the same way Karen Epp explains. “Clients do not toward their teams today. expect recruiters to meet candi- dates in person. In person interviews “I do believe there will be compa- will happen as a very last step of the nies that will want software to log recruitment process and only with people’s work on their home com- whoever really needs to be puters, usage, etc. to ensure things involved.” How does HR measure success in are getting done,” says Kevin this new style of remote working, Britton. “Trust is great, but compa- This shift means that both employ- recruiting and hiring? By looking to nies and those who have to answer ees and employers will have to the numbers. to the bottom line want to have all learn to present themselves favour- the data they can, I would imag- ably through the screen, says Alles- “There is a renewed focus on ana- ine.” sia Pagliaroli. lytics and data when it comes to human resources,” says Judy Slutsky. VIRTUAL RECRUITING, INTER- “Recruiting processes will likely stay “As organizations decrease human virtual and both candidates and HR VIEWING AND ONBOARDING teams need to improve the way contact with each other – HR data is becoming increasingly important they come across/present them- It’s not only the day to day work that to gauge employee performance. selves through a video call instead will be (and is) taking place remote- This has resulted in more focus on of in-person.” 11
having a robust HRIS system and communications technology. ny culture when everyone is remote, more focus on identifying employee which may create disconnection.” Key Performance Indicators and “Companies are developing engage- metrics to identify and track perfor- ment programs to keep the remote Henderson predicts, “There will be a mance in jobs. teams motivated and focused,” continuing shift in technology towards argues Pagliaroli. “Also, they are think- improving communication services Organizations are taking a closer ing about different ways to keep a that people can use to connect look at employee attrition rates, positive, supportive, inclusive compa- remotely. Looking Glass has already retention rates, underlying factors in developed an affordable personal job satisfaction and engagement holographic display. It will be interest- rates.” ing to see how this technology devel- ops in the future.” COMMUNICATIONS AND ENGAGEMENT ONLINE EVERYTHING Recent years have seen increased For many households, 2020’s most focus on team building and compa- frequent houseguest has been the ny culture. Can this be achieved Amazon guy or gal. Going forward remotely? Alessia Pagliaroli observes even laggard companies will have that companies are looking for ways to consider their online custom- to engage their remote workforces, er-facing infrastructure a top priority. while Ciaron Henderson can’t help As a result, tech skills will continue to but wonder about the future of be in demand. 12
“Retailers and grocers who think that er loyalty programmes to try and THE ROLE OF RECRUITERS online services are a pandemic-only keep customers from switching to situation better think again,” says competitors.” As companies reimagine their work- Angus Reid. “Before March, curbside places and staff, recruiters will pick-up or online delivery was a “Delivery services, cold calling sales, evolve alongside them. Managers niche offering among grocers and construction, mining, food industry are sharpening their pencils during relatively non-existent among retail- (other than waiters etc.), grocery, this period of economic uncertain- ers. Now, almost half of Canadians online literally anything are going to ty, which means that recruiters must have tried online grocery services be huge,” adds Kevin Britton. “Entre- work extra hard to convey their and that proportion increases to preneurship for people starting value, says Business Development three-quarters for retailer services.”2 online businesses will be something Manager Will Goldbeck. they is going to continually “To have an online presence is no increase.” “Recruiting is an expense. In my longer an option, it is an absolute area of speaking with prospective necessity and if businesses stick to a “A functional, effective online cus- clients, this is more apparent to busi- traditional brick and mortar model, I tomer service/order fulfillment team nesses than before. As an organiza- think they will be doomed to fail,” has become even more essential for tion, when you had to lay off good says Ciaran Henderson. “Online companies selling online,” Alessia people in the spring or summer due delivery services for takeaway food Pagliaroli points out. “Employers may to COVID, it can then be hard to and groceries have exploded and I create more structured customer justify hiring a recruiter. This is why think the competition in this area is service/ordering teams that have more than ever we have to justify going to become bigger. You can the ability to work on pricing, analyt- our expense. Because we are worth already see a shift in some of these ics, etc. to predict consumers’ new it. companies putting in place custom- habits.” 2 Roy, Holly. Last Covid-19 Report of the Year, December 21, 2020. 13
“This demonstration of value hap- improve their bottom line. That’s just “Every year as the year comes to a pens not just with lip service, they good business. So that is how we close,” muses Karen Epp, “I wonder actually have to deliver. I liken it to a grow, to keep delivering and to what will the next year bring? It is nice restaurant versus McDonald’s. reach more employers who have A nice restaurant has to live up to tried on their own and know they WHAT WILL “BACK TO NORMAL” LOOK LIKE? your expectations and deliver on can’t do it alone. The easy positions, something you cannot get at Mc- recruiters will get less and less of Donald’s. If you don’t, then you those.” Things will be have to compete with the prices at the same as it 6% always was McDonald’s, and that is not sustain- FACING UNCERTAINTY able. In our world that means work- There will be ing with clients who have worked Death and taxes. Right now, there some minor 41% really hard to fill a tough position! are few other certainties. Tumultu- changes to how we live our lives They have tried everything and they ous times have a knack for placing cannot find that perfect mix of a premium on those who can There will be major permanent technical knowledge, experience, re-imagine process, steer a steady changes to how 50% and career stage. And then we ship, and ride the waves without we live our lives come in, work our tails off, target the panic. Even as our recruiters have I don’t think there specific people who qualify, and go gamely offered their predictions for will be a time when 3% after them. When that happens, our the coming months and years, they this is over clients are thrilled to pay our fee. admit that constant re-evaluation Who wouldn’t? We just solved their will be in order. Angus Reid Poll taken Dec 16-17, 2020. Base: TOTAL applicable problem and they got an incredible (n=1,510). Q: There’s been a lot of talk of “when this is over”. In your mind, what will that look like? Q: In the previous question, you said employee who will probably [PIPE IN Q_NORMAL] And when do you think this will happen? 14
typical for November and Decem- office to answer the phone). It ber to slow a bit. Usually I encour- didn’t work, basically at all. We age applicants that recruitment is needed the phone call and now we always busy in the first quarter of the make twice as many phone calls as year. Today, I am filled with uncer- pre-COVID.” tainty as to what the first quarter will be like and some hope that positive Looking forward, Kevin Britton says, change and solutions are ahead. I “I haven’t seen a huge slow down in do not feel as certain about any- too many industries but, rather, small thing as I have in the past.” changes in direction and more stra- tegic people being put in place “I think COVID-19 has been a wake who have a vision of our new future up call for almost everyone,” stress- world.” es Will Goldbeck. “It makes you re-evaluate everything you are doing. Oh, I didn’t even have to go to the office this whole time? What else have we been doing that doesn’t make sense? It definitely made me re-evaluate how we pros- pect and reinforced the power of the phone call. When COVID first hit, we shifted to email prospecting (assuming no one would be in the 15
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