Alexandra Levit's Water Cooler Wisdom

Building the Next Generation of Skills Inside Your Company

It’s common for employees to want to build skills at work, but an effective learning infrastructure isn’t as common. As organizations grow, they tend to lose track of their people’s skills. Leaders don’t know the competencies employees have acquired at work, what they can do next, and the skills they can develop to grow their contributions to the organization. 

Employers often don’t dig too deeply either, preferring instead to seek fresh talent externally when a need presents itself. But even if the current job market could support it, it’s difficult to maintain the hiring pace needed to source emerging skills from the outside. This reality leads to persistent understaffing and longer role vacancies.  

It’s imperative to build a skills-based organization that can flex to evolving business and employee needs. But where to start? 

The following five strategies may prove helpful as you seek to solve today’s labor shortage conundrum with your own reliable and already proven workforce. 

Understand the size and composition of your workforce 

Using analytics programs, employers should determine the current internal and external trends in workforce supply and demand. Examine the gap between the skills possessed by your workforce today and the skills your business requires to be successful now and in the future.  

It might be beneficial to use a skills segmentation matrix that includes the variables of scarcity (how common or uncommon the skill is in the market), criticality (how essential or non-essential the skill is for work to be successfully completed), and volume (how much volume of this skill the business requires).  

Seek feedback on your matrix from a diverse group of stakeholders across the organization, and during your investigation, determine the in-house superstars in in-demand areas. You can then enlist the help of these employees in crafting appropriate strategies and training to boost the organization’s overall level of skill competency. 

For the rest of the article, head over to the Dayforce blog.

The Future of Compensation in the Age of Adaptability

In ManpowerGroup’s 2024 Age of Adaptability report, we discussed how workers are expecting greater customization in all aspects of the employee experience – which, of course, includes compensation and benefits.

Since the business world became more structured more than a century ago, fixed and consistent compensation among groups of employees has been the standard, but increasing hyper-personalization is a thread that runs through all our considerations about the future of total rewards.

In HR.com’s 2024 report on the future of compensation and total rewards, 70% of leader respondents agreed that updating their organization’s total rewards strategies will help keep pace with changing attitudes around compensation. In addition, 85% said that it’s important to modify reward strategies for individual contributors.

In this piece, we’ll explore compensation best practices as we approach the quarter mark of the twenty-first century, such as agile compensation models, pay transparency and equity strategies, lifestyle and financial wellness offerings, and the involvement of AI in decision-making – which could paradoxically make compensation more uniform at a time when employees are demanding the opposite.

Pay Grades and Salary Bands No More

Traditionally, organizations made compensation decisions based on pre-set pay grades and salary bands, but in the post-pandemic business world, many question whether this model is fair, equitable, or well-suited to rapidly evolving conditions.

My research suggests that the most effective compensation strategies are more agile and allow organizations to recalibrate total rewards based on real-time factors inside and outside the company.  And rather than being assigned a one-size-fits-all title, salary, and benefits package upon hiring, employees can now customize the total rewards package that best matches their individual preferences based on an a la carte menu of options.

As Anita Lettink, a global future of work expert and the author of Equal Pay for Equal Work, told me, this approach works better because we can no longer view employees in homogenous groupings when offering rewards. “People don’t adhere to specific life stages anymore – for example, needing childcare in one’s 30s – so it makes sense to let employees pick and choose on a monthly basis,” she said.

In practice, a new hire may exchange lucrative stock options or company-funded retirement for a lower base salary. In tandem with this trend, more organizations are offering company equity to individual contributors rather than reserving it for senior leaders. Lettink said companies are also launching “employee sharing” initiatives in which workers receive payouts for something the organization created or revenue they helped to generate. “These programs encourage behaviors that are beneficial to company growth,” she added.

Agile compensation models don’t rely on a once-a-year performance review to determine an incremental salary bump or bonus, but rather leverage technology to auto-adjust rewards frequently in keeping with industry and market developments, larger economic factors like inflation, and peer feedback. These nimble strategies involve a broader range of metrics for assessing value including specialized employee skills, innovative contributions to company growth, and supervisor effectiveness.

Pay Transparency and True Equity Will Sweep the Globe

Pay transparency, which refers to openly disclosing the salary range for a given position, is considered a critical step in the journey toward pay equity. Although Lettink correctly noted that pay transparency is driving positive change for employees – especially at the lower levels – many organizations tend to drag their feet until they are mandated to deploy it. However, the concept is gaining momentum all over the world and we should prepare for it to be universal in the coming years.

Despite increased attention to the issue over the last decade, pay disparities based on race and gender remain stubborn problems. In response, a bevy of equal pay regulations designed to promote fairness have taken root. Organizations are ensuring compliance with these regulations by increasing their use of pay equity software to run statistical analyses of their compensation models, develop benchmarks, and derive core insights by comparing internal and external data.

Equity analysis isn’t just for leveling the playing field for women and underrepresented minorities. These tools may also illustrate pay disparities between employees at a specific location, function, or level and employees with similar characteristics inside and outside the company. Objective and ongoing reporting of pay gaps facilitates their immediate resolution and prevents these gaps from becoming systemic and leading to legal liability.

For the rest of this piece, check out the full blog series at ManpowerGroup.

HR Compliance Developments Going into 2025

According to Dayforce research, nearly half (48%) of surveyed leaders believe that increased compliance and regulatory complexity will impede their organization’s ability to achieve its business objectives. This could be due in part to the sheer number of emerging workforce compliance trends and how many different areas they impact. 

This shift requires substantially more oversight than the compliance function needed in the past. To help simplify the situation, I’ve rounded up key workforce compliance trends that should be top of mind for HR professionals through 2025.  

Non-compete agreements 

In certain nations, including Malaysia and Mexico, most post-termination non-compete agreements have generally been prohibited for some time. Then, in the spring of 2024, the U.S. Federal Trade Commission published a final rule that would effectively ban all non-compete agreements between employers and workers. The exceptions to the rule pertain to existing agreements with senior executives, sale-of-business non-competes, and causes of action that accrued before the rule’s effective date of September 4, 2024. 

Expanded leave requirements 

Globally, the parameters of paid and unpaid leave are constantly in flux. Most interesting is the increase in laws that allow employees to take paid time off (PTO) for any reason. Generous accommodations for new parents and senior caregivers are also becoming an expectation for employers of a certain size. Just this spring in Japan, Parliament passed legislation requiring companies to offer flexible working options to employees with young children to help them balance work with child rearing. 

Minimum pay thresholds 

In the U.S., the beginning of 2024 was marked by an increase in the minimum wage in more than 20 states, and more changes are occurring in individual states and localities as the year progresses. Canada continues to raise its minimum wage every year, while European countries continue to realize the effects of 2022’s Minimum Wage Directive, which took aim at in-work poverty. If you have employees in the U.S., you should note that in April, the U.S. Department of Labor (DOL) issued a rule updating overtime pay requirements. This rule increases the minimum salary threshold for employees to be exempt from overtime pay, with the first phase having taken effect on July 1, 2023 and the second phase on January 1, 2025. 

For more compliance happenings, read the full article on Dayforce.com.

The Future of Leadership in the Age of Adaptability

In ManpowerGroup's 2024 Age of Adaptability trends report, we discussed how the pandemic forced an immediate overhaul of management as we knew it. While societal disruption, advancing technology, and sustainability reshaped work, leaders needed to steer organizational change without tangible models from which to draw. They also needed to promote upskilling and reskilling, inclusion, and satisfaction among their employees while managing a geographically dispersed and distributed workforce.

Leaders who had done things more or less the same way for two centuries were suddenly operating in the dark. It takes a special kind of person to do this effectively, and this person is what we will refer to as the 2030 Leader.

The 2030 Leader

In 2030, the majority of leaders will be members of the millennial generation, or those born between 1980-95. In the early aughts while entry-level workers, the millennials made their mark early with their insistence on a more empowered, enlightened business world. As an ethnically diverse generation raised on computers, the millennials have adapted seamlessly to the integration of smart machines into the workplace and more naturally engage with diversity, equity, inclusion, and belonging (DEIB) issues.

In general, these circumstances make millennials the ideal candidates to shepherd our organizations into the second half of the 21st century. But of course, everyone is different and some leaders will be more competent in 2030 than others.

I believe that the future of leadership will be co-created by young trailblazers with several core traits including flexibility, humility, emotional intelligence, global perspective, and technological curiosity. Let’s describe these one by one.

Flexibility: The years 2022 and 2030 were characterized by what many termed the “RTO wars.” Entrenched baby boomer leaders wanted the workplace to return to post-pandemic norms, while many employees weren’t having it. Although a majority of organizations settled on a compromise of 2-3 days in the office per week, the RTO wars still exist.

But by 2030, millennial leaders are likely to have put an end to them. Rather, they will be more inclined to accept a reality that includes a variety of employment arrangements that are to some degree customized to each employee. These leaders will be comfortable with the constant change inherent in a rapidly evolving world and are likely to staff accordingly – creating project-based, time-bound teams from a variety of internal and external sources (retired part-timers, fractional executives, subject matter experts, etc.) as business needs require.

As time goes on, leaders will become more proficient in best practices for managing distributed and remote workforces. And millennials will be the first generation of leaders to successfully model effective work/life integration, with a holistic orientation toward work, family, and leisure.

Humility: Back in the 1970s, a management researcher named Robert Greenleaf proposed the notion of servant leadership, a style in which leaders display personal accountability and put the needs, aspirations, and interests of their followers above their own. Never has the concept of servant leadership been more relevant, as ManpowerGroup Chief Innovation Officer Tomas Chamorro-Premuzic argues that the challenges of this century mandate that leaders are selected on competence rather than confidence, humility rather than charisma, and integrity rather than narcissism.

In 2030, organizations will still be in the position of needing to pivot quickly if an established strategy isn’t working, which means that leaders will need to adopt an agile mindset, admit when they’re wrong, and solicit advice from a much wider range of stakeholders – including individual contributors deriving insights from AI-based tools – than they have in the past.

For the rest of this article, visit ManpowerGroup's Global Insights blog.

Talent Intelligence Platforms Use Deep Learning to Close Skills Gaps

The HR community is enthralled by the idea that artificial intelligence (AI) can provide tangible benefits in the quest to effectively source and hire in a tight labor market. But how does this work in practice? 
 
It starts by understanding a branch of AI called deep learning. Deep-learning algorithms, which are inspired by the actions of the human brain, continuously analyze data with a given logical structure. This structure encompasses multiple layers of algorithms called neural networks. 
 
Deep-learning algorithms can’t predict the future or give answers that a human would agree with 100%. Yet they are still valuable. If you’ve ever used a modern search engine and been amazed by the results or if you’ve ever watched the perfect show recommended by your streaming network of choice, you have experienced the power of deep learning. 
 
The main challenge of deep learning is data — specifically, the massive amount required. The talent space alone needs billions of data points about people, career trajectories, skills, and experiences. 
 
But while AI’s reach was once limited by computing power and the availability of data, that’s no longer the case. Today, global neural nets can identify more than a million skills across the world’s 8 billion people. 
 
Then, using this data, AI engineers can develop deep-learning algorithms to determine the best answers to a defined class of questions. In the case of deep talent, such questions might include: Who is the best fit for this specific job requirement? What job is this individual most likely to hold next in their career? 
 
Understanding deep learning’s ability to harness a massive amount of data is only the first step, however. Next, we must explore how deep learning can help us identify skills and transform how we hire people. 
 
The Power of Skills Adjacency 
 
Skills adjacency refers to the inference that a person good at skill A often excels at skill B, and it helps us complete our picture of a human’s true potential and the transferable skills they possess. 
 
In my recent book, “Deep Talent,” my co-authors and I tell the story of Nico Iannotti, a top sales engineer in Europe. Nico wasn’t always involved with either sales or technology. He was, however, previously involved with customer service as a sommelier and waiter. As he put it, skills are interchangeable assets that individuals can leverage in a variety of industry roles and life situations. 
 
“Many of the skills I acquired prior to my corporate career have been very helpful in my role as a client-relationship manager and solution engineer,” he told us. “What is the link between pairing wines and selling software? Both are customer-facing roles, and both provide solutions to a customer’s problem. In both cases, you are building relationships, demonstrating empathy, and selling an emotional experience based on a specific budget. It’s just a change of context, not a completely different skillset.” 

For the rest of the piece, head over to the UKG Workforce Institute.

Don't Be Intimidated by Job Redesign

The need for job redesign is on most HR leaders’ radars in 2024. But in most organizations, it still seems to be more of a talking point than a reality. However, given that Dayforce’s 14^th Annual Pulse of Talent survey found that 37% of respondents said there is a different role with their current employer that better matches their skillset, the process seems ripe with opportunity.

Job redesign is the process of rearranging or replacing tasks to better align work with evolving conditions both inside and outside the organization. And it’s really nothing new. For example, the telegraphist or telegraph operator was one of the first tech-related jobs of the 19^th century. The telegraphist used the most modern equipment available at the time to send and receive Morse code via radio and telephone.

In the 1970s, the telegraph was mostly replaced by telex, a communications network to send text-based messages. So, if you were a telegraphist and you wanted to remain gainfully employed, you had to adapt and learn telex. In other words, the telegraphist job was redesigned with a lot of the same skills and responsibilities – minus the telegraph.

Job redesign may feel more complex and overwhelming today because the pace of technology is faster and has a broader impact in terms of affected occupations. In particular, the arrival of generative AI has leaders wondering exactly how to execute job redesign to incorporate the benefits of this technology.

Before we get into how to make the process more turnkey, let’s address what job redesign is NOT. For example, job redesign is not bringing in a new piece of automation and letting go of all the human employees previously involved in the job targeted by the automation. When integration of automation is done well, the technology takes over more straightforward, repetitive tasks while human employees provide the necessary strategic input, creativity, judgment, and oversight. And that’s where job redesign comes in.

Three practical steps for job redesign
In most knowledge-driven and in many frontline worker occupations, shifting business requirements and emerging technologies mean that employees need new skillsets. Therefore, the process of job redesign involves understanding the individual tasks that encompass the work being done, and then matching or training for skills necessary for those tasks.

Step one: Engage in task analysis

Target a small category of jobs to start, and then assemble a diverse group of stakeholders from across the organization. Make sure this group includes people across levels, and not just leadership, so you have representation from those who are close to the work.

Document the critical tasks currently associated with each job, and note where there are redundancies, areas where technology could be efficiently deployed, and places where you can build a job to become more flexible in structure and environment. You can also rank your tasks according to importance, how often they are performed, how long they take, and the skills required or how people learn how to do each task.

Step two: Create new job titles and descriptions

Next, based on your analysis, group related tasks into new job buckets. With smart technology now helping in new ways with some tasks, there may be room to remove or combine previous jobs. This may involve creating new “super jobs” that cross departmental lines. For example, the new job of people analytics manager might be technically housed in HR but include tasks traditionally housed in IT such as selecting appropriate technology applications, ensuring data quality, and communicating data-related insights to leaders and other constituents.

You can also use this exercise as an opportunity to standardize jobs titles and descriptions across the organization.

For the rest of the piece, head over to the Dayforce blog.

Giving Second Chance Hiring a Chance

Every year, more than 600,000 men and women are released from prison in the United States and nearly one-third will return to prison within three years, according to an article by Crystal Yang in the American Economic Review.

However, employers can take steps to turn that percentage around and mitigate ongoing labor shortages in the process.

Pete Keller, founder of United Legion One Nation (ULON), a nonprofit dedicated to helping the formerly incarcerated become productive members of the community, said that if these individuals can secure gainful employment within the first 30-90 days of their release from prison, we can reduce recidivism from 45% to 17%.

After serving four stints in the penitentiary, Keller recalled being released back into society stripped of everything he needed to rebuild his life. “Being labeled as a felon meant that no one wanted to give me a chance or even extend a helping hand,” he said.

Second Chance hiring refers to the act of employing individuals – including the formerly incarcerated – whose life choices and situations have disadvantaged them in obtaining stable employment.

American food company Dave’s Killer Bread embraced Second Chance hiring after founder Dave Dahl was welcomed back into his family’s bakery following a 15-year prison sentence.

“We have now dedicated ourselves to advancing Second Chance employment, or hiring the best person for the job, regardless of criminal history. We’ve seen first-hand the transformative power of a job and the positive ripple effects on the broader community,” said Dan Letchinger, business unit senior vice president.

Letchinger said that Second Chance hires demonstrate dedication and loyalty every day when they come to the bakery and are passionate about the opportunity to learn and grow.  He cited an “attitude of gratitude” as one of the drivers of this population’s strong work ethic.

“We have found that the performance of employees with criminal backgrounds is often at the same levels or higher than their teammates. And in many cases, these individuals are actually promoted at a faster rate,” Letchinger said.

Despite the benefits, Second Chance hiring is still relatively uncommon. This is mostly because many organizations have a policy of terminating qualified talent solely based on arrest or conviction records. Some states such as Illinois have “Ban the Box” laws, which prohibit private employers with 15 or more employees from asking about criminal history until after an interview or a conditional offer.

Unfortunately, Keller shared, once background checks are conducted, employers often terminate employment due to the disclosure of prior convictions.

“This creates a cycle of disappointment and uncertainty for these individuals who were hopeful for a fresh start in their professional lives,” he said.

Employers do not need to wait for new legislation to be passed to protect and support formerly incarcerated individuals.  And given that labor shortages in most occupations are likely to persist through the coming decades, Second Chance hiring can be an important tool to deepen available talent pools. These guidelines may be useful when considering it.

Understand your mission. Keller reminded employers that Second Chance hiring is not a charitable endeavor, but rather a deliberate plan to enhance staff retention and enjoy the benefits of hiring individuals who are motivated to work despite facing numerous obstacles.

Consult nonprofit organizations. Groups like Jobs for the Future, Refoundry, and ULON can provide essential resources to clarify and execute an effective initiative. “They’re dedicated to educating employers to help them develop a better understanding of the whys and hows of implementing Second Chance Employment hiring practices,” said Letchinger.

Provide unbiased training. A comprehensive, proactive approach that includes all layers of management and staff will ensure that your organization is truly an equal opportunity employer and that diversity, equity, and inclusion becomes embedded in your culture, said Keller.

Have a candid conversation. Letchinger said that when trying to look past candidate backgrounds, it’s worth speaking to the individual about their personal path and being alert to signs that suggest an individual is ready to change.

This piece was originally published in the WSJ Workplace Report.

Building Culture with a Distributed Workforce

As we close out 2023, the post-pandemic return-to-office question seems to have resolved. Most organizations have embraced a hybrid model, mandating that non-frontline employees work onsite between one and three days per week. However, this structure doesn’t necessarily equate to a positive work culture that employees are reluctant to leave.

According to the forthcoming Dayforce 2024 Pulse of Talent research, nearly 70% of employees are either looking for a new job or would leave their current organizations if the right opportunity came along. Thirty-eight percent said they had issues achieving their performance goals in the last year, with the main reason being too large of a workload. Only eight percent said their employer is giving them everything they need to be productive.

It's clear that despite having more flexibility than ever before, employees are not as satisfied as they could be. And this does not bode well for a business climate that will continue to be plagued by labor and skills shortages.

Understanding how to build a strong culture in a distributed work environment, a task that few attempted before the pandemic, has now become an organizational imperative. The following five strategies infused with the right employee experience technology may prove useful as you navigate this new terrain.

Conduct ongoing employee needs assessments.

The move to permanent distributed work requires a culture shift in all organizations, but instead of viewing this as an insurmountable task, leaders should look at it as a valuable opportunity to understand the unique requirements of all your employees and address concerns impacting specific groups.

For example, caregivers may report that office commutes are a hardship, while employees who are underrepresented minorities may experience greater bias and more microaggressions in an in-person office environment. Leaders should know about these issues before they result in quiet or actual quitting.

Employee pulse taking doesn’t have to be a ton of work. You can automate an employee experience platform to survey your employees on a regular cadence and determine what they need and want as well as general workplace sentiment.

You can also leverage an employee experience platform to create a real-time, two-way path to more in-depth dialogue and feedback with senior leaders and HR representatives. Once upon a time, the flow of information from the top to the bottom of the organization might have been more of a trickle, and c-suite communication may have lacked transparency, vision, and purpose. When an organization is empowered by employee experience technology, this no longer has to be the case.

Reimagine office space as a destination.

Since employees are in the office less frequently and often have a choice whether to be there on a given day, leaders must make attendance worth their while. Facilities like onsite daycare, a gym, and open, casual lounges to support informal interaction are great-to-haves, but if your budget doesn’t allow for such things, offering a space employees want to visit could be as simple as providing extra time with leaders via scheduled and unscheduled office events. It’s also okay to spend a little money on offsite gatherings as the rapport-building that takes place at these is often priceless.

Finally, if your online employee experience is immersive enough, it will complement the -person experience beautifully. Used to market and generate excitement about upcoming events at the office and bring your employees’ great work to life, these platforms can add depth and creativity to your in-person culture and be a fun destination in their own right.

Watch out for proximity bias.

A Prezi survey found that over 66% of hybrid workers feel that workplaces favor employees who are together in a physical office. Additionally, according to my own research, a majority of employees feel they are not as effective when communicating via videoconference. Leaders can remedy this issue by restructuring meetings, revamping performance expectations to focus on output, and ensuring there is a fair mix of in-person and online platforms to network and show off one’s skills.

An employee experience platform can also assist with combatting proximity bias. Select technology that can highlight individual employee profiles on the manager’s home page so everyone on the team – remote and non-remote – is front and center. Managers can also be offered the option to easily develop and send targeted employee communication that calls attention to each direct report’s personal and professional development.

Offer assistance specific to distributed work challenges.

Always-on employees require easy access to systems that allow them to complete work wherever they are, and “hoteling” at the office should be a seamless, non-chaotic experience. Match your in-office policy with more flexible benefits for taking time off when needed, and coordinate team office time so your employees reap the full benefits of in-person collaboration and aren’t simply sitting in an empty cubicle farm alone.

A distributed work environment in a constantly changing business climate also requires your HR information delivery to be comprehensive and on point. Consider an employee experience platform with mobile and device agnostic capabilities, which can customize content for particular teams and roles, and help employees find what they need through intelligent search.

An AI-enabled platform has the additional benefit of screening incoming HR issues and quickly routing them to the correct person, which is essential when leaders cannot guarantee that an employee who walks down the hall to HR will be able to speak to a live human.

When your people are running at a million miles an hour and spread out all over the country or world, it is unfortunately easy to lose sight of what makes your organization a special place to work. While a distributed work environment requires leaders to put more conscious effort into culture, ultimately this renewed focus is probably for the best!

This article was originally published on Ceridian.com.

 

Strategic Foresight in Practice in the HR Space

 In the summer of 2020 with the COVID-19 pandemic raging, everyone across the globe waited to see what would happen next.

The employment world was no different. In my role as a workforce futurist, I help organizations anticipate and prepare for near-future disruptions. As part of ongoing work with the US government, I produced a summer 2020 forecast for 2022-25. I asked: what impact would the pandemic have on employment two to five years forward?

Futurist professionals use a combination of methodologies to make our forecasts, including environmental scanning for emerging changes, trend analysis, and scenario planning. Although COVID-19 was in some ways an unprecedented event, similar crises had befallen the world before. Futurists examine published public and private sector research as well as media and expert commentary to try to extrapolate what those outcomes might mean for the current situation. The U.S. government was very interested in this expertise when faced with the first global pandemic in more than one hundred years.

In addition to the permanent installation of distributed work (which was fairly obvious even in 2020), I guessed that between 2022 and 2025, the world would be plagued by mass layoffs –due to potential economic instability resulting from the pandemic crisis.

Plus, I anticipated an escalating mental health crisis among workers after suffering the collective trauma of isolation during COVID-19.

Over the next few years, I kept my eye on whether the forecasted twindemic of layoffs and rising mental health issues was actually coming to fruition.

As of mid-2023, Zippia reported that 40% of all Americans had been laid off from a job at least once, and nearly one-third had been laid off within the last two years.

In the first ten months of 2023, the technology industry alone laid off a quarter million people. And, available unemployment solutions continued to underperform, resulting in the average unemployed citizen being out of work for 23 weeks, according to 2022 Statista research.

Most importantly, a 2023 study based on surveys in 29 nations published by Harvard Medical School in The Lancet Psychiatry journal found that in the post-pandemic era, one out of every two people in the world will develop a mental health disorder in their lifetime.

 

Organizations Answer the Call for Employee Health Support

 

Many global organizations did recognize the psychological impact the pandemic was having on employees and stepped-up efforts to help them. For example, at Pinterest, employees who lost childcare or were caring for an ill family member could receive financial compensation for up to four weeks. And JPMorgan Chase implemented a well-being app to query employees about their mental health and stress levels on a weekly basis.  By monitoring the app’s data, HR could provide struggling teams with customized support.

 

As the pandemic progressed, my research team noted a general increase in technology-based mental health offerings.

 

Two notable programs include the Spring Health mobile app – which prompts employees to take a guided mental health assessment and then matches them with a dedicated care navigator – and the Flourish DX app, which collects and reports employee mental health assessments to health and safety professionals as well as HR staff.

Similarly, there’s Lyra, a service that offers employees access to individualized care including self-guided programming, mental health coaching, and medication management. Lyra’s leaders claim that an astounding 88% of program users improve with care.

Given the frequency and severity with which layoffs and mergers are taking place – as the Zippia and Statistica data shows – it is clear that organizations need to continue to support their former employees.

And to a degree, thanks to stellar outplacement services firms like LHH, Right Management, and Mercer, this is happening. Mercer, for instance, claims that its outplacement services offerings help transitioning employees and displaced employees land a new job nearly 2.5X faster than the national average.

LHH’s outplacement services programs with Rexam were in part responsible for the business saving £22 million during an acquisition. And Right Management guided a global technology corporation employing over 400,000 people in more than 175 countries through an outplacement program that resulted in 81% of released candidates moving into a new role.

The trouble is, mental health and extensive job search support for laid off employees tends to be reserved for those at more senior levels. And economists say that more senior individuals are less vulnerable to the cascading effects of unemployment and can often afford to private services out of their own pocket.

The Far-Reaching Consequences of Unemployment

The long-term effects of unemployment on personal wellbeing are noted in several studies summarized by the Society for the Psychological Study of Social Issues.

In short, unemployed individuals face reduced income, compromised physical health, strained relationships, poor academic performance for their children, and sometimes a permanent loss of self-esteem, self-worth, and intrinsic motivation.

This decrease in motivation subsequently creates a decrease in job seeking behavior, which means the problem then becomes a vicious cycle leading to prolonged periods of unemployment.

Unemployed individuals, especially those in lower to middle income brackets, are less likely to have the money and resources to spend on coaching and therapy that will help them get back on their feet.

A Futurist’s Forecast Leads to Tangible Action

Yes, forecasts are part of my job as a futurist, but the ideal is for my work to not just be theoretical.

I want to use my forecasts to actively generate solutions that can make the world of work better – so back in the summer of 2020, my consulting organization alongside academics at Northwestern University and the Feinberg School of Medicine put together a grant proposal with the National Institute of Mental Health, a division of the National Institutes of Health (NIH).

The result was DRIVEN – an experiential platform designed to guide high-risk workers back to employment while supporting them through what is often a deeply worrying and traumatic time.

DRIVEN’s six-week program is app-based and combines evidence-based cognitive behavioral techniques (CBT) with traditional job search strategies. Although CBT has entered the public’s awareness thanks to self-serve mental health apps, these techniques have not been traditionally leveraged in the career development and coaching space despite employment’s obvious impact on emotional well-being.

The program includes a range of tools including videos, exercises, and live coaching – because we believe the structure and accountability provided by a human partner is critical to success and that’s what a lot of today’s mental health apps are missing.

Every time a newly unemployed worker engages with the program, they encounter diversity of age, race, and ethnicity because we want our participants to see themselves reflected in every video host, coach, video, image, and animation they come across in DRIVEN.

When we first received our grant, our hope was that the resulting program would be in development and efficacy testing via clinical trial for three years, and by the time it was ready, the world would need it more than ever.

Now, as we near the end of that tenure, we hope that DRIVEN serves as an example of how forecasting can be used to produce tools that genuinely have an immediate impact on the health of the global workforce.

At its core, strategic foresight is an exercise in imagination, and the good news is, anyone with expertise and experience in a given industry, organization, or company can use it to shape policy, plan effective interventions, and avoid risk. HR professionals next must take the courageous step of looking likely futures in the eye and developing strategies that may seem “ahead of their time” now but may prove essential later.

This post was originally published on UNLEASH.

 

Why Labor Shortages Are Happening and What Leaders Should Do

Workforce futurists have been predicting mid-twentieth century labor shortages for some time now, but many forecasts seemed unduly alarming – until the pandemic. Now, a confluence of factors is rapidly decreasing the global worker supply.

Employers have noticed. According to Ceridian’s 2023 Executive Survey, 66% of the global leaders surveyed have experienced a labor shortage in the past 12 months. And 88% said it’s at least slightly likely shortages will continue over the next year.

The surveyed leaders aren’t wrong about the likely continuation of labor shortages. And many executives I’ve spoken to recently are wondering why there is a labor shortage and how they can protect their organizations from critical deficits in the near- and long-term.

So, why is there a labor shortage? Let’s look at some of the causes.

Fewer people in the workforce

The main culprit, as futurists have noted for decades, is demographic shifts. Specifically, falling fertility and labor force participation rates mean there are simply fewer workers available to be hired.

Over the next decade, with most baby boomers entering retirement, the number of working-age people aged 15-65 is projected to decline by over three percent in some countries, including the United States. And even the people in this age range aren’t necessarily working to their full potential. Per a recent World Bank analysis, the global labor force participation rate has fallen steadily since 1990 from more than 65% of working-age people to less than 60% today.

These figures are already affecting unemployment. In April 2023, the U.S. Bureau of Labor Statistics’ Jobs Report showed that unemployment for 20-to-24-year-olds fell to 5.4%, the lowest it has been since 1969. As a result, newly minted college graduates are entering a job market that’s not only more robust than a year ago, but significantly stronger than it was before the pandemic.

Low-wage workers lack mobility

Labor shortages among low-wage workers are getting the most attention recently. And with good reason, as they are currently among the most dire shortages. One major factor is stricter immigration policies, and the other, economists speculate, is a “dual labor market” that doesn’t allow much room for mobility.

A new research paper published by economists at the Federal Reserve Board in Washington, D.C. shows this dual labor market is a problem for countries like the U.S. The researchers’ analysis documented a primary workforce comprising 55% of the population. These workers have high levels of employment stability and are only unemployed for short periods of time.

The secondary labor market, on the other hand, makes up 14% of the population and lives in a constant state of flux with poor wages and working conditions. These workers experience six times higher job turnover than those in the primary tier and are 10 times more likely to be unemployed. At present, extremely limited mobility between the two sectors negatively impacts the United States’ (and others’) ability to attract lower-wage workers who want to climb their way up.

For the full piece, head over the Ceridian blog.