The Progress Report | Hiring Trends | Staffmark Group-April23

#2: AI becomes popular resource for job seekers and employees

It’s no secret that AI has had a significant impact on the world of work in recent months. According to Korn Ferry, 43% of workers are now using ChatGPT, an IT chatbot developed by OpenAI that launched in November 2022, as part of their daily work, and 83% plan to use it in the future. There are many questions and concerns around the use of AI in the workplace, and it has become a trending tool for job seekers and employees alike. For some employers, AI is viewed as a beneficial resource to streamline processes. For example, Goldman Sachs' CIO reported their company's software engineers have been experimenting with generative AI tools to automatically generate lines of code. Workers report that 24% of their employers are encouraging the use of AI in the workplace, according to Korn Ferry. Not all companies welcome the technology. JPMorgan and Bank of America have reportedly restricted staff from using ChatGPT and similar products. For job seekers, AI has been a useful tool to aid their job search. According to a survey from Resume Builder, 46% of job seekers are using ChatGPT to write their resumes and cover letters. Seven out of ten people who have used ChatGPT report a higher response rate from companies, however 11% were denied a job when the interviewer discovered they used ChatGPT. There are pros and cons to emerging technologies, and it's important to keep up with these trends and evaluate each tool independently so that policies can be written as to when and where employees can use these resources.

#1: Companies rely on contractors during economic downturn

With inflation at a high 6%, 93% of CEOs report they are preparing for a recession over the next 12–18 months, according to a recent survey from the Conference Board. In anticipation of a downturn, many major companies have announced layoffs and reported hiring freezes, including tech giants Amazon, Alphabet, and Meta. Companies that have decided to cut back on staff and/or spending are now turning to contractors to get them through the changing economy. According to Resume Builder, 4 in 10 companies that recently laid off workers are hiring contractors to replace them. In addition, for companies that experienced layoffs in the past three months and are currently hiring contractors, 80% reported contract workers carry out responsibilities previously assigned to laid-off employees. The number of contingent workers has grown significantly over the past few years, now making up 22% of staff at large companies, up from 16% a decade ago, according to Staffing Industry Analysts. A possible economic downturn is also affecting how employees view full-time employment, according to a recent survey from A.Team:

3.5%

The U.S. economy added 236,000 jobs in March and the unemployment rate fell to 3.5%, according to the Bureau of Labor Statistics (BLS). These measurements have had little movement since early 2022. The labor force participation rate also ticked higher in March, rising to 62.6% from 62.5% in February. Average weekly hours worked fell slightly to 34.4 from 34.5. While the U.S. economy has added an average of 334,000 jobs each month over the last six months, economists see March's jobs data as beginning a period of slower growth for the U.S. labor market that will eventually result in a rise in unemployment. The Fed expects the unemployment rate to rise to 4.5% by the end of this year.

National Unemployment Rate

As a new round of college graduates gets ready to hit the job market, economic uncertainty may impact their job search. According to the BLS, the unemployment rate for college graduates aged 20 to 24 was 4.6% in February, double from 2.3% in December 2021 when it hit a five-year low. Many large corporations that recently announced layoffs are known to be significant employers of college graduates, and as recession fears rise, some of these employers have decided to cut back on hiring for now. According to the Wall Street Journal, Amazon has postponed start dates for some new grads for up to six months. Likewise, Wayfair says it will limit new hiring for full-time roles and internships. So where does this leave the Class of 2023? According to iCIMS, 97% of college seniors said they have considered alternative options in the uncertain job market, weighing graduate school, gig work, or taking a job outside their major. However, most college students remain optimistic about their future. According to a survey from Handshake, 76% of students from the Class of 2023 believe they can find a well-paying job. But, as with most job seekers, stability is a huge selling point for these future candidates, with 84% citing it as the most important factor when job searching.

#3: Class of 2023 faces uncertain job market

04 Employment Trends

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Glassdoor and Indeed’s Workplace Trends 2023 report found job searches for remote work still outpace pre-pandemic levels, with 9.8% of job searches mentioning “remote work” in September 2022 compared to just 1.7% in September 2019. Most employees prefer working from home but not all. As part of their Trends report, Glassdoor reviewed benefit ratings on their platform and broke down the data by seniority level. They found entry-level workers have the lowest work from home benefit rating at 4.3 (on a 5-point scale) compared to mid senior (4.6), director level (4.6), and executive (4.7) roles. Further, they found entry-level workers have a lower overall workplace satisfaction. To better understand the correlation between job satisfaction and remote work, they reviewed the gap between these ratings and found mid senior level positions are more satisfied with working from home than any other group. The satisfaction ratings for directors and executives, although highly rated, shows that directors and executives feel similar about remote work as they do their overall workplace culture. There is still work to be done to ensure all employees have the support, resources, and opportunities they need to achieve job satisfaction while working remote. This may include employee recognition programs and team building activities. Organizations should also conduct regular pulse surveys to gather employee feedback and measure results.

#4: Entry level employees less satisfied working remote

© Staffmark Group. The research presented in this report was developed from external sources and reflects general market trends. Monthly employment and unemployment figures can be volatile, and payroll employment estimates can be subject to revision. Some of the information and data may or may not be relevant.

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MetLife’s “US Employee Benefit Trends” survey found there is a significant perception gap relative to employee care: 87% of employers believe that their organization demonstrates care and only 65% of employees agree. Overall, just 58% of employees feel cared for at work more than half the time, with even lower rates for on-site workers, Generation Z, lower income (<$50k) workers, manual laborers, and women. “Our research shows care is not only a differentiated driver of the employee experience but also a proven workplace metric to measure employer outcomes,” said Todd Katz, executive VP of group benefits at MetLife. “As the economy and labor market remains volatile and workplace trends fluctuate, employers can’t afford to overlook employee care.”

#5: Employee care matters to both employers and workers

06 Employment Trends

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October 2022

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APRIL 2023

Numbers and knowledge for a competitive workforce.

Employment Data

Employment trends

Employment Data

Jobs Update

MARCH 2022

0.1% MoM Change

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MARCH 2022

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Let us be your resource as you plan budgets, set pay rates, and build and retain an engaged workforce. The enclosed hiring trends and insights are designed to help you better understand today’s employment environment and make informed staffing decisions.

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“The top three reasons employees consider leaving their employer are pay and benefits, burnout due to workload, and insufficient healthcare benefits. For some, especially frontline and low-income employees, that means financial survival. Others who have their basic financial needs met are placing increased importance on their lives outside of work.”

Staffmark Group is a family of staffing brands with a mission to align people and companies to create opportunity. We provide the expertise, connections, and technology to help people and companies succeed. If you need a job, we want to provide it. And if you need staff, we want to deliver the best candidates. A proud member of RGF Staffing, Staffmark Group is organized into three operating units: Commercial Staffing Services (Administrative & Light Industrial), Technical & Professional Services, and Strategic Workforce Solutions. Our national network of 400+ branch and on-site service locations connects 250,000 talent annually. Opportunity is everywhere, but it’s not always easy to uncover. We partner with you to help you find it.

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Companies rely on contractors during economic downturn AI becomes popular resource for job seekers and employees Class of 2023 faces uncertain job market Entry level employees less satisfied working remote Employee care matters to both employers and workers

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Streamline your application. Long applications can be discouraging to applicants and make them drop-off halfway through. Avoid having candidates re-enter information that can already be found on their resume. Make sure your app is also accessible on mobile and tablet devices. Utilize automation software. Scheduling or communication software can save you and your team time while setting up interviews and communicating with candidates. Outsource. A staffing agency can source and hire top talent fast, saving you time and valuable resources. Recruiters are constantly building their talent pipeline.

Quick tips to decrease time-to-hire

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How long and deep might the recession be? The chart to the right shows the duration of past recessions. The Conference Board predicts a recession in 2023 with three straight quarters of negative GDP growth (-0.6%, -1.7%, -0.5%) to start the year and a 1.1% rebound in the fourth quarter.

of companies say they plan to lay off employees within the next 6 months

56%

of companies with recent layoffs are hiring contractors to replace laid off workers

37%

of companies with recent layoffs are hiring contractors to replace laid off workers

78%

Facebook Jobs Update

On February 22, 2023, Facebook Jobs will be disabled. Don’t be discouraged; there are still many ways to recruit on Facebook. Here are three! 1. Use Facebook Groups. There’s a Facebook Group for everything! Research and join groups that are dedicated to job hunting, local to your target area, and industry specific. 2. Continue to post job openings. The job feature may be going away, but you can still promote your jobs as a regular Facebook post. When writing your post, include details that will make your ideal candidate “stop the scroll.” 3. Encourage employee engagement. When promoting new openings on any social media platform, encourage your employees to share with their own network. This will extend the reach of your post tremendously.

Compared to the start of 2022, the survey found that the proportion who say it is easier to hire (28%) is greater than those who report it harder to hire (20%).

For businesses struggling to find candidates: • 84% are boosting wages • 72% are developing their existing workforce • 68% are offering flexible hours/schedules • 61% are implementing leadership development programs • 60% are allowing remote work options Despite 61% of CEOs finding it difficult to operate at full capacity due to hiring challenges, 43% say they anticipate higher profits in 2023, up from 38% in Q3 2022. Inflation has also remained a huge challenge for business leaders going into 2023. When asked about the effects of inflation: • 93% said increased wages and compensation • 82% cited increased prices from vendors • 64% reported higher costs for raw materials • 58% experienced higher energy prices

Source: The Conference Board

55%

of CEOs believe a global recession is the greatest challenge for their companies

89% of workers said they would like to have more control and flexibility over their work schedule than traditional full-time employment can offer 74% of workers said layoffs have made freelance work more attractive than before 66% of workers said layoffs have made them lose trust in the stability and security of full-time employment

• • •

of workers are using ChatGPT as part of their daily work

Source: Korn Ferry

43%

When employees feel less cared for at work, their wellbeing, happiness, and overall satisfaction plummet, and this has a measurable impact on organizational performance. Among employees who do not feel cared for at work, only 45% are engaged, 58% are productive, and 54% are loyal.

So how can organizational leaders deliver employee care?

The Trends survey revealed the fundamental drivers of employee care: purposeful work, flexibility and work-life balance, social and supportive cultures, career development and training, and wellness programs and benefits. Compensation also remains critically important in driving employee satisfaction and workers’ perceptions of feeling valued. Many employers serve multiple workforces, and it’s important to understand the unique needs and perceptions of each group. Different elements are more important at different times of life and for different groups of workers, however each element is of comparable importance.