Innovation in the labour market – where is your next worker?

Over the past decade we’ve experienced both growth and slowing in our economy, which has obviously influenced demand for labour at different periods of time. There is no doubt that at the beginning of 2012, there is increasing uncertainty in the market place, driven largely by the Euro crisis and the media’s continued focus on areas of doom and gloom. A decline in unemployment reported last week caught everyone off guard.

Is this pessimistic outlook causing us to miss opportunities and celebrate success?

Australia now has more people working and contributing to the economy than ever before. We also have seen an increase in the number of actively trading businesses in Australia, which grew by 3.6% in 2009-10 and 0.4% in 2010-11 according to figures released in January by the Australian Bureau of Statistics (ABS). This is due to an increase in new business registrations, as well as a decline in the exit rate of businesses

These results suggest that as a working nation we are not only engaged but enterprising.

While unemployment is predicted to rise over the course of 2012, the demand for skilled labour across certain industries will remain. The fight for talent is already happening and if we take a long term view of only 12 months, many organisations may struggle to attract talent when the need arises.

While labour force growth and participation has only increased over the last 50 years (4102.0 – Australian Social Trends, Dec 2011), we are about to enter a period where workforce exits will exceed workforce entries.

Over the past decade the concept of an “Employer of Choice” has gained momentum as a marketing tactic for talent during times of labour scarcity.  When you pry further into this statement though, what does it actually mean? Some organisations profess to promoting work/life balance, diversity and a focus on corporate social responsibility.

But do employees really value this? While maybe they once did, has this statement now become a rubber stamp with many of these initiatives just expected in todays leading organisations.

When we talk about innovative companies it is often in reference to how they solve a problem or approach an opportunity. Rarely do we hear of it with regards to recruitment practices. Yet people and the knowledge they bring is often the most important asset to an organisation.

So where is the next opportunity for organisations to tap into talent?

While the naughties were all about Gen Y, the next decade will see the rise of the mature worker for two reasons.

Firstly, organisations in some instances won’t have a choice but to look at this audience with the 45-54 age bracket being the fastest growing labour market segment in Australia. Currently there are 7 million people in Australia aged over 50, with 24,000 people turning 50 each month.

Secondly, organisations are becoming aware of the benefits and importance of reflecting your customer base in your workforce. The over 50s market control 60% of all wealth, have more disposable income then any other age group, own their own homes, spend more on travel, entertainment, white goods, gardening, new cars, furniture, food and beverages, with over 78% now owning their own computer (50 Up).

Baby Boomers have played a significant part in history of which we have not yet seen the true impact.

The benefits of hiring mature workers are well documented (lower turnover, higher productivity, lower absenteeism, more reliable) yet there is still a reluctance to recruit from this market.

Surprisingly, or not, the organisations who are planning and trialing initiatives aimed at engaging and attracting this market are from industries which promote skills typically perceived to be an area of weakness amongst mature age workers. Think IBM and Apple who are both acutely aware of the importance of this market and adapting their business in different ways to reflect this audiences unique needs both as employees and customers.

One thing that is for certain, is that the uncertainty we are currently experiencing in the job market will not last forever and those that fail to plan for the eventual return to growth, will be left behind in the ongoing quest for talent.

Written by Heidi Holmes, MD, Adage.com.au

Has the recruitment industry really changed?

As someone who has been living and breathing recruitment for nearly two decades, I have certainly seen the industry change. Now as to whether it’s been a change for the better or a change for the worse would depend on whether you’re talking to a recruiter, an employer or a candidate, since everyone would have a different story to tell.

Starting out as a recruiter in the mid 90’s I remember thinking how cool it was to be able to fax a résumé to a client. But then there were also times that weren’t so cool when I had to be in the office at 7:30am and still there at 7:30pm in case a client called in needing a temp for that day or the following morning. After all how else could they contact me? I wasn’t going to give them my home phone number! And then of course there times when my desk was covered in so many client files and candidate CVs that I couldn’t even find my rolodex if I tried!

Gosh how the recruitment world has changed.
Or has it?

Employers still want to deal with professional recruiters and to see the best candidates, candidates still want to deal with professional recruiters and to be represented for the best jobs, and the recruiters still want to be making the best matches.

So really nothing has changed … except of course for the way the whole recruitment process works.

Today hiring managers can scroll through CVs on their iPads (sorry what’s a fax?) in their office, at home or even on the bus; employers have their recruiters’ mobile numbers and email addresses stored in their mobile phones; candidate CVs have almost been replaced by the creation of a detailed LinkedIn profile and can be shared in the single click of a button; recruiters can ‘meet’ with candidates anywhere in the world virtually either via SKYPE or an on-line video interview platform; and new job openings can be fed straight into a candidate’s inbox via an online job board.

Long gone are the days of a recruiter having to wait on hold for half an hour before finally being able to dictate advertising copy to a customer service representative working in a call centre at the classifieds section of a local newspaper.

Yet while recruitment is now taking place at the speed of tomorrow, one thing that employers say has slowed down (or in some cases has disappeared entirely) is the concept of service. Even with all that technology has brought along with it – the social networks, mobile apps, video interview platforms, cloud-based candidate databases etc – if an employer decides to engage the services of a recruiter as opposed to undertaking the process on their own, then they want to be looked after. Employers want to be kept up to date at every stage of the process. They want recruiters to follow up, and to follow through.

Neither party in the so-called Recruitment Love Triangle (the employer, the recruiter or the candidate) should be comfortable hiding behind technology. It would be rare for a candidate to get a job without at least speaking to a recruiter or meeting with an employer face to face; Nor would an employer likely regularly use a recruiter with whom they only have an anonymous relationship over email.

I suppose it’s up to whether an employer is wanting a transactional relationship with their recruiter and a quick fix (bum on seat) solution to a hiring need, or whether they are looking for more of a consultative solution, and to build a long- term partnership with a recruiter who will help them grow their business, not just today but into the future.

When it comes to the world of recruitment, some things will never change.

Paul Slezak
February 2012.
Paul Slezak is Head of Community and Client Services with RecruitLoop. RecruitLoop gives employers a smarter way to recruit, with 80% cost savings: An online marketplace of experienced recruiters charging an hourly rate, and an online video interview platform.

 

Have you used Experience +

The Federal Government has long acknowledge the social and economic need to increase the workforce participation among mature age workers. One such initiative which was launched in 2010 to assist both employers and jobseekers in this area was the
Experience + website managed out of the Department of Education, Employment and Workplace Relations (DEEWR).

The site provides various information relating to useful resources for jobseekers as well as employer related diversity toolkits and information pertaining to grants for employers of mature age workers (another issue for discussion at a later date!)

While everyone agrees the Government involvement is imperative in addressing not only age discrimination but also private sector engagement, how are these current initiatives being measured?

We recently contacted DEEWR to obtain some statistics on the success of the program and are still waiting for a response, however would love to hear your thoughts if you have had any experience – positive or negative – with Experience +

Here's to Older Workers

Reblogged from AARP:

Pop quiz: In December 2011, what was the unemployment rate for people 50 and over? The answer is 6.2 percent, nearly twice what it was at the beginning of the Great Recession in 2007.

At AARP we often hear from members in their 50s, 60s and 70s who are unemployed and want and need to get back into the workforce…some desperately so.

Read more… 347 more words