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Is Your Talent Pipeline Prepared for Turbulent Times?

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Sponsored by Toptal

In today’s fluid business environment, employers are still struggling to find the right kind of talent when they need it. But what does it take to build a truly flexible, modern workforce? It takes a creative strategy and a nimble game plan. For example, a growing number of companies rely on a remote talent pipeline that scales up or down with their organization’s requirements.

In this podcast episode, we explore how employers can improve organizational resilience by tapping into a diverse pool of qualified specialists whenever the need arises…

Meet Our Guest: Vicky Mackie

This week, I’m excited to speak with Vicky Mackie, SVP of Talent Operations at Toptal — the world’s largest fully remote workforce of top talent that enables companies to scale their teams. Vicky plays a central role in matching clients with talent who have specialized expertise, on-demand.

Prior to joining Toptal, Vicky honed her strategic and operational acumen as a management consultant at Bain and Company, where she helped executive teams in multiple industries tackle their most pressing issues.

With her depth of experience, I know Vicky has loads of helpful advice to share about talent strategies that support business agility. So let’s get started!

Why a Flexible Talent Pipeline Is Essential

Welcome, Vicky. The concept of a flexible workforce seems to be gaining even more popularity now. Why do you think this model works so well, especially in an unstable business climate?

When building a talent pipeline, great leaders rely on data. What metrics are we trying to hit? What projects will help us reach those goals? From there, you can build out your recruiting pipeline over the next 6 months, 12 months, 18 months.

But although planning is still very valuable in an unstable environment, you can’t always predict the future. So the option of a flexible workforce helps supplement full-time workforce planning. It also helps fill gaps when things are uncertain or unexpected.

For example, you can flex capacity up and down as needed. Or you can tap into highly qualified talent much more quickly. Or you can find a new type of talent that matches growing demand for emerging technologies, like AI and Generative AI.

Linking Flexible Talent With Remote Work

How do you see talent management evolving with the shift to remote work and the need for flexible talent?

Research by Manpower Group says almost 80% of companies face talent shortages today. And with the pandemic, companies saw firsthand how effective remote work can be, right? Now, more processes and technologies are available than ever to make that experience incredibly smooth.

So, to attract talent that will differentiate your company, you need to leverage remote work. You’ll not only find and attract the best talent, but also retain them.

And because you’re not limiting yourself to a specific geography means you’ll have access to capabilities you may not have had in the past.

Staying Productive Through Change

While building a flexible remote pipeline, how can employers maintain quality and productivity?

First, make sure you rely on a vetted network. By ensuring the people in your talent pool are really experts in their field, you remove the risk of working with contingent talent.

Also, you’ll want to be sure you’re considering the broadest, most diverse pool you can find, so you’re able to choose the best available talent for each role.

Lastly, it’s important to build a culture around outcomes and results. When you’re in the office, you can see people doing the work. A remote environment is different. So focusing on outcomes helps people produce high-quality work without micromanagement.

How Work Culture Fits In

That point about culture is key. It’s important from the outset, right?

That’s right. You want to treat flexible talent as part of your team. They are part of the solution to the problem you want to solve. They’re the experts. And they want to be partners with you.

So you’ll want to be very clear about what success looks like. Investing in that kind of onboarding will improve the experience for everyone.

 

Learn More About Building a Strong Talent Pipeline

For more insights about how your organization can benefit from a flexible talent pipeline, listen to this full podcast episode. And be sure to subscribe to the #WorkTrends Podcast on Apple Podcasts and Spotify.

You’ll also find a wealth of helpful insights and resources for employers on the Toptal Blog.

And anytime you want to continue this conversation on social media, follow our #WorkTrends hashtag on Twitter, LinkedIn, and Instagram. Let’s talk!

How to Bridge Hiring and Wage Gaps with DEI Analytics

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In recent years, diversity, equity, and inclusion (DEI) has become a red-hot topic among employers and human resources professionals who plan and manage these initiatives. The tumultuous past few years have reshaped perceptions about when, where and how we work. Meanwhile, ongoing social unrest is challenging organizations everywhere to more deeply consider how their policies, practices, values and norms affect people from all walks of life. As a result, interest in DEI analytics is skyrocketing.

With diversity initiatives on the rise, employers recognize they must have the ability to measure progress. Currently, DEI programs are underway at an estimated 80% of U.S. companies. And although the business world is seeing some improvement, there’s still a long way to go.

For instance, organizations that don’t prioritize a culture of inclusion continue to put their brand at risk. Some have already faced serious public backlash — not to mention costly legal ramifications from discriminatory hiring, compensation, and management practices. In short, no matter where your organization is on the DEI investment spectrum, access to relevant analytics is essential.

Defining DEI Analytics

Every organization can benefit from knowing if employees are experiencing unfair or inequitable treatment. DEI analytics tools and processes add value by converting HR data into actionable insights about related issues. For example, these tools can help you:

  • Develop metrics to detect decision-making bias, unequal access, unfair treatment, and discrimination based on gender, race, disability, religion and/or sexual orientation.
  • Analyze data patterns to discover where employees face opportunity barriers. In other words, you can compare staff development and mobility statistics across groups with different traits and compensation levels, independent of individual performance or other factors.
  • Track and compare key DEI indicators to determine if your workforce is representative of the labor market in your industry.

Together, these capabilities make it possible to identify and resolve specific DEI issues and also evaluate your organization’s performance over time.

The Value of DEI Analytics

As Jeff Higgins, CEO of HCMI says, “Leveraging diversity data to empower decisions or action is perennially easy to say but hard to do.” True. Developing a coherent, reliable dashboard can be a complex process. But organizations can no longer afford to get by with hunches or incomplete data. Too much is at stake.

There are many other reasons to embrace DEI analytics. Here are three examples:

  • Data-based analytics reports make it possible to enforce discrimination laws in Title VII of the U.S. Civil Rights Act. By protecting fundamental civil rights, employers play a vital role in preserving our society.
  • For organizations that want a talent acquisition edge, DEI intelligence is highly beneficial. Younger generations expect workplace equality. And inclusive cultures attract top talent. If candidates think your employee base lacks diversity or your track record in advancing underrepresented groups is weak, they might conclude that you’re out of touch. But data that highlights DEI strength can prove that you stand by your values.
  • Improving diversity policies and practices can directly boost your bottom line. In today’s business world, investors see greater value in companies with strong environmental, social, and corporate governance propositions. And the most effective, efficient way to benchmark these policies and track improvement over time is with DEI analytics.

How DEI Misconceptions Hinder Analytics

Several fallacies in the HR community sometimes keep businesses from implementing DEI analytics initiatives. The primary misunderstanding is that DEI policies enforce “hiring quotas” and place a premium on race or gender, rather than candidate quality.

On the contrary — proper diversity plans ensure that hiring and advancement opportunities for underrepresented groups are proportionate to the pool of available candidates. Combined with appropriate employee selection and promotion assessments, organizations can have confidence that they’re making these decisions with a high degree of fairness and equity.

Bottom-Line DEI Statistics

For employers who want to measure DEI performance, countless metrics are available. For example, “pulse” surveys are a popular way to calibrate employee sentiment about belonging and inclusion. What matters most when choosing baseline metrics is that they accurately reflect the state of equity and inclusion across your workforce.

Below are three measures that can help ensure that you are prioritizing DEI in an effective and legally compliant way. Once these metrics confirm that you’ve reached parity with comparable organizations, you can move on to more advanced and nuanced options such as pulse surveys.

1. Recruitment

When setting DEI goals, it’s important to consider representation in your talent pipeline, relative to the labor market at-large. A great way to apply DEI analytics in recruitment is to measure whether your efforts actually reflect the qualified labor market in your area.

For example, if 20% of your local population includes qualified African-American candidates, then you would expect about 20% of your company’s candidates to be African American. However, if you’re hiring for remote roles, your labor market could be nationwide or even global.

2. Hiring and Promotion

Simply hiring diverse candidates is not enough. To truly address diversity representation, you’ll want to ensure that women and people of color are distributed throughout all levels of your workforce.

A common mistake employers make when trying to boost diversity representation is to ignore where women and people of color are located in their organizational structure. It might be easier to achieve broad representation goals when women and people of color dominate your lowest ranks. But for DEI success, all tiers of your organizational structure should reflect the available labor market.

3. Compensation and Pay Equity

It’s also important to know if employees in similar roles are being compensated equally, after considering relevant factors such as time on the job and overall performance. For example, in the U.S., women earn about 20% less than men, on average. But employers are increasingly addressing disparities like this with pay equity initiatives. In other words, all employees performing the same type of work at the same level in an organization receive the same compensation, after relevant pay practice factors are considered.

The right metrics can help you ensure that all employees are paid fairly. While discrimination in the workplace continues to remain a significant issue, today’s biases are largely unintentional. If you don’t track DEI metrics properly, you may not even be aware that implicit discrimination like unequal pay is an ongoing issue.

A Final Note on DEI Analytics

Advancing DEI initiatives is simply the right thing to do. But organizations can no longer leave inclusion to chance. The best way to ensure that you’re on track is to make decisions based on hard data and accurate analysis. As the old adage goes, you can’t improve what you don’t measure.

By including DEI metrics in recruiting and compensation discussions, your company can maintain modern business standards while gradually becoming more diverse and inclusive. Along the way, you can make better-informed decisions that will keep existing employees happy, engaged, and committed to fairness and inclusion.

Hiring Outsourced Labor? Here’s How to Maximize ROI

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In a world filled with uncertainty, one thing is certain. “Business as usual” is no longer a realistic strategy. So, during unusual times like this, is it wise for companies to continue hiring? Many employers say yes. But others are turning to creative alternatives like outsourced labor. Here’s why:

Despite lower inflation and a temporary pause in lending rate hikes, the U.S. economy remains shaky. Some experts still say a recession is likely. Yet even though job growth has recently gained some steam, layoffs continue to spook employees — especially in the tech sector. And who can blame them? After all, technology companies have laid off nearly 211,000 people this year. At the same time, the number of open tech jobs has plunged from a high of 477,000 last August to only 168,000 this month. Chilling.

Even so, employers continue to grapple with the country’s ongoing labor shortage. In May, the unemployment rate remained low at 3.7% (about 6 million people), while job openings inched up to 10.1 million. In other words, many more jobs are available than today’s unemployed Americans can fill.

All these variables are making workforce planning especially difficult. So, rather than debating whether to downsize or expand your workforce — why not consider doing both? This strategy may seem counterintuitive. But it actually lets you retain valued employees while hiring talented candidates who want more work stability.

Of course, for this to succeed, your company’s reputation, benefits, and culture must be top-notch. U.S. employees are interested in organizations with a vibrant work culture backed by strong core values. In fact, 75% of employees say it’s “very important” to work for a company with well-defined values. And almost 20% of employees consider it the most important factor for job satisfaction.

If your company neglects these things, you could lose current employees. What’s more, attracting strong new talent will be much more difficult. For ideas about how to make the most of this strategy, keep reading…

How to Hire Quality Talent Amid Labor Shortages

When hiring, prioritize quality over quantity. The importance of hiring the right people can’t be overstated. It may feel good to receive hundreds of applications for an open position, but it won’t necessarily make things easier. If only a few applicants are qualified, you’ll need to spend many more hours of review and deliberation to find them. This unnecessary effort only makes your hiring process less efficient. 

If you choose to hire full-time employees, seek out candidates who have worked at startups or other scrappy environments. This kind of work experience suggests that a candidate is resilient, resourceful, and comfortable wearing multiple hats. 

Alternatively, consider hiring contingent workers. Because outsourced labor is ubiquitous and inexpensive, this is an attractive solution during talent shortages. Outsourced workers can focus on repetitive, easy-to-learn tasks so your full-time, in-house employees can spend their time on more strategic activities. This increases organizational efficiency and effectiveness. It also enhances the employee experience, which should improve workforce retention.

It’s also worth keeping in mind that the current labor shortage is expected to persist. If so, employee hiring and retention challenges are likely to continue. As a result, many companies could turn to outsourced staffing as a long-term solution. That’s a compelling reason to put successful outsourcing practices in place from the start.

5 Ways to Boost Workforce Performance With Outsourced Labor

Keep in mind that managing outsourced labor differs from managing in-house staff. To make the most of your outsourced workforce, try these tactics:

1. Invest in Structure and Quality Control

Designate one or several points of contact to manage outsourced labor roles, responsibilities, check-ins, and quality standards. This creates structure, which in turn prevents confusion, missteps, and other problems. It ensures that your contingent team members are aligned with your organization’s objectives and functional needs. Plus, it encourages two-way communication that helps minimize disengagement, quiet quitting, and excessive turnover.

2. Schedule Regular Check-Ins

Touching base with outsourced staff and outsourcing partners helps maintain accountability, transparency, and trust. By conducting weekly or biweekly check-ins, you can identify and address issues more quickly and keep the relationship moving forward smoothly.

I’ve seen several clients hire and onboard outsourced staff, and then treat it as a “set and forget” business arrangement. Soon, expectations became unclear, and clients didn’t get what they needed. Keeping in touch with contingent employees is vital to be sure everyone stays on the same page.

3. Don’t Overlook Onboarding and Training

An effective onboarding and training plan sets up outsourced workers for success. By providing the information, resources, guidance, and support needed to perform well alongside in-house employees, you can optimize the business value of contingent staff.

Unfortunately at many companies, onboarding is lackluster — even for in-house hires. In fact, according to Gallup, only 12% of employees think their organization does a great job of onboarding new people. With so much room for improvement, effective onboarding is likely to become a key trend in the future of outsourcing.

In my experience, new hires don’t start strong without complete information and training. They’re less likely to understand their role, and often they’re unsure where to go for answers when questions arise. This can lead to unnecessary mistakes.

However, when organizations plan and deliver thoughtful onboarding, they’re rewarded with motivated people who feel empowered to hit the ground running. So taking time to onboard both in-house and outsourced staff can quickly boost your team’s overall efficiency, productivity, and effectiveness.

4. Watch for Hidden Costs

An outsourced labor strategy is often a budget-friendly move. However, hidden costs can potentially erode any financial advantages. For example, you’ll want to pay close attention to the cost of communication and coordination with outsourced workers, as well as the cost of compliance with local labor laws and regulations.

When selecting an outsourcing provider, choose one that is transparent about prices. Also, look for a provider that adds value with payroll, human resources, and compliance services. This reduces management complexity for your organization and minimizes unexpected additional expenses.

5. Protect Against Security Risks

Unfortunately, data security risks are a modern business reality — especially when you rely on outsourced labor. Of course, some security breaches are unintentional. This is where proper upfront training can build awareness and help staff protect sensitive data and systems.

Regardless, intentional threats still exist. Although your trust in contingent staff will naturally increase over time, proactively protecting your business is mission critical. Some of my clients have experienced security breaches because they shared a little too much data and information before new hires settled into their roles. You don’t want that to happen.

To minimize exposure, carefully review outsourcing provider agreements for indemnification clauses that protect you in the event of a security breach. Also, your organization should use password-sharing tools that make it easy to detect and lock out workers who pose a threat.

A Final Note on Outsourced Labor

For most organizations, business uncertainty and talent shortages continue to play havoc with workforce planning. In this environment, it’s critical to determine how your organization can operate effectively and efficiently, no matter what. Hiring the right people is essential. But if you’re reducing headcount or slowing your hiring rate, outsourced labor is an attractive alternative. Relying on contingent staff to augment your in-house team can help you cut expenses and improve business efficiency without compromising core functions. And when managed well, this solution can help your organization effectively weather today’s economic challenges.

Rightsizing Your Workforce in the Face of Economic Change

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Businesses everywhere are still grappling with tremendous change, as pandemic aftershocks continue to roll through the global economy. Although most Covid-era restrictions are behind us, organizations large and small are still dealing with significant people-related issues. Workforce capacity planning is just one piece of this complex, multi-faceted puzzle. But if you’re an employer, rightsizing your workforce has likely become one of your top priorities during these turbulent times.

One of the most serious repercussions of the pandemic involves talent — or the lack thereof. Companies aren’t able to hire enough skilled workers to meet their operational needs. This inability to attract and retain qualified talent — coupled with inflation — is driving compensation higher. In fact, according to the March 2023 U.S. employment cost index, civilian wages continue to increase, up 5.0% over the past year. And depending on the industry, some workers are asking for even more.

This means employers are having to get creative when attracting and sourcing talent. For example, some are focused on rightsizing their workforce to maintain operational efficiency while qualified workers are in short supply. And many companies are downsizing and upsizing simultaneously, as they adjust to continuously changing industry challenges and trends.

Effective Workforce Rightsizing Isn’t Only About Efficiency

For numerous organizations, workforce rightsizing involves reliance on contingent workers. This can be a smart choice. Contractors and temporary workers often provide the flexibility needed to operate efficiently and effectively, even when market demand shifts or business priorities change. This strategy is also attractive because it helps protect internal employees and their core responsibilities.

Even so, a flexible workforce might not be enough to weather a negative business cycle. It may also be necessary to make the difficult decision to lay off existing employees. Obviously, the most challenging aspect of downsizing is deciding which employees to lay off.

Is it best to make these decisions based on individual performance? What role should seniority play? And how can you be sure your remaining team will have the skills, knowledge, experience and motivation to sustain your business through tough times and support future growth?

If layoffs are followed by a hiring freeze, there’s the additional question of how to retain remaining employees. What will you do if critical contributors decide to resign? The last thing you want to do during a business downturn is jeopardize a product launch, revenue goals, or customer experience.

It’s important to recognize that drastic workforce adjustments can trigger problems with stress, morale, and engagement. Naturally, staff members who aren’t laid off are likely to soon wonder, “Is more bad news on the way?” or “Am I next?”

Even in an era known for record levels of voluntary resignations, job loss is foremost on employees’ minds. In fact, it is the top concern among 85% of people, according to the Edelman 2022 Trust Barometer. Concerns like this can prompt even the most loyal team members to start hunting for a new job. And without proactive intervention from leaders, this kind of “flight” response can spread and upend your organization’s efforts to regain stability.

Rightsizing Your Workforce: 4 Key Strategies

When rightsizing your staff, finding the right balance isn’t easy. It’s even more difficult when you need to downsize one department while upsizing another.

You can certainly be upfront about your intentions — and you should be. Transparency and clear communication are essential when managing change. However, you can’t afford to lose sight of the fundamental challenge every organization must face. You must determine the best way to anticipate and respond to potential business fluctuations. Here are a few ideas that can help:

1. Include Contingent Workers in Your Plan

By definition, contingent workers serve as supplements to your core employee base. They generally work on a project-by-project basis. As such, adding contingent workers to your plan offers significant flexibility when rightsizing your team becomes necessary.

In fact, 63% of organizations told SAP Fieldglass that contingent workers enable greater organizational agility. What’s more, 62% believe contingent workers are essential for filling key IT and digital skills gaps. For example, when companies experience a sudden influx of work, they can call on this scalable talent pool for quick access to the right capabilities.

2. Be Strategic About Any Hiring Freeze

When initiating a hiring freeze, one of the biggest mistakes companies make is to halt all recruitment activities and contingencies, entirely. It’s important to continue hiring-related processes. This way, when the need for additional help arises, you can more easily pick up where you left off and maintain operational continuity.

Even if incremental roles are temporary, you’ll be better able to tap into the skills needed to support critical business objectives. In fact, 61% of companies told SAP Fieldglass that contingent workers help accelerate their speed to market. In other words, relying on flexible staffing can actually help you continue to scale during a hiring freeze.

3. Treat Skills Development as a Long-Term Investment

Don’t be shortsighted about talent recruitment or development. Focusing only on the skills you need now can leave you scrambling to fill critical roles down the line. In addition to the skills and competencies you need today, emphasize what will be essential for your business in the next few years.

Investing in professional development also gives you a chance to leverage learning and growth opportunities in your recruitment efforts. It can help your job openings stand out in today’s environment, where jobseekers value employers that emphasize learning and career advancement.

4. Leverage a Talent Marketplace

Essentially, a talent marketplace is a system that helps employers align talent with open roles. It can work one of two ways:

  • Internally, you can use this kind of system to facilitate employee mobility, helping individuals pursue different roles based on their skillset. Or you can redefine and reorganize an employee’s existing role so it better aligns with your organization’s changing needs. This process can be especially helpful during a hiring freeze.
  • Externally, a talent marketplace can help organizations open the door to freelance, temporary, or gig workers who are qualified for hard-to-fill roles. Think of it as creating a larger, more agile talent pool that lets you secure the right skills at the right time, while saving costs typically associated with recruiting and hiring internal employees.

Final Notes on Rightsizing Your Workforce

Pandemic aftershocks are still reverberating through the business world — and organizations will continue to be disrupted by unexpected external factors. As a result, smart employers are staying open to more agile workforce planning and management strategies.

Today’s successful employers are already rethinking the way they recruit, hire, manage, lead, compensate, and redeploy talent. Rightsizing your workforce is just one piece of this larger puzzle, but it can make a significant impact on your organization’s long-term success.

The WOTC and Prescreening: How Employers Can Stay in Compliance and Reap the Benefits

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Sponsored by ADP

The WOTC (Work Opportunity Tax Credit) offers businesses a tremendous opportunity for tax credits based on hiring. But for organizations to participate and leverage the advantages of this federal program, they have to be in compliance. That means prescreening applicants. Given the recent update released by the IRS that clarifies the need to prescreen, the time is now to learn more.

As with so many complex tax credits and other regulations today, successfully navigating them requires not only understanding how to stay within the bounds, but then how to create a process to make it part of your hiring system.

A Tax Credit and a Boost

The Work Opportunity Tax Credit (WOTC) was first introduced in 1996. Since then it’s gone through a number of changes and extensions, including incorporating a credit for long-term welfare recipients in 2006. It’s authorized to stay in effect until December 31, 2025, so it’s anything but a flash in the pan: it’s a well-institutionalized regulation.

It’s designed to be both a tax credit for employers and a boost for employees, a combination of business advantage and social good. Companies who hire those American job seekers who consistently face barriers to employment can see up to $9,600 per employee — depending on a number of factors. In turn, qualifying new hires get the chance to break free from depending on government assistance and become self-supporting, steady earners and contributing taxpayers.

Leveraging the WOTC means respecting it: in its intent, the WOTC is designed to lift the barriers to employment among specific groups, and that’s why it includes specific criteria for compliance. It’s also opening up wider talent pools for employers at a time when hiring is tight, to say the least — and this should be seen as an added opportunity.

For larger companies that hire in numbers, it could be a windfall if done right. For smaller businesses it can make a tangible difference in a hiring budget: for every 4 or 5 new hires who fit within the target group, you may have the means to hire another employee as well.

Who Qualifies

Employees need to belong to a list of targeted groups, as specified by the IRS, and jobs must entail a minimum of working hours. Pay attention to the descriptions as well as the durations specified in each (adapted here):

 

Qualified IV-A Recipient:

  • A member of a family that receives state assistance under IV-A of the Social Security Act providing Temporary Assistance for Needy Families (TANF)
  • Assistance must be received for any 9 months during the 18-month period, ending on the hiring date.

Qualified Veteran: 

  • A member of a family that receives assistance under the Supplemental Nutrition Assistance Program (SNAP) (food stamps) for at least a 3-month period during the 15-month period, ending on the hiring date, or
  • Unemployed for a total of at least 4 weeks (consecutive or not), but less than 6 months in the 1-year period, ending on the hiring date, or
  • Unemployed for a total of at least 6 months (consecutive or not) in the 1-year period ending on the hiring date, or
  • Entitled to compensation for a service-connected disability and hired not more than 1 year after being discharged or released from active duty in the U.S. Armed Forces, or
  • Entitled to compensation for a service-connected disability and unemployed for at least 6 months (consecutive or not) in the 1-year period ending on the hiring date.

Qualified Ex-Felon:

  • Hired within a year of either being convicted of a felony, or
  • Released from prison for the felony.

Designated Community Resident (DCR): 

  • At least 18 and under 40 years of age, with a principal residence either in an Empowerment Zone (EZ) or
  • A Rural Renewal County (RRC).
  • The WOTC credit doesn’t cover wages paid or incurred for services performed while the person lived outside of an EZ or RRC. (You can find the latest list of EZ and RRC designations here.)

Vocational Rehabilitation Referral: 

  • Has a physical or mental disability and was referred to the employer while receiving or upon completion of rehabilitative services under:
  • A state plan approved under the Rehabilitation Act of 1973, or
  • An Employment Network Plan under the Ticket to Work program, or
  • A Department of Veteran Affairs program.

Qualified Summer Youth Employee:  

  • At least 16 but under 18 years of age on the hiring date or on May 1 (whichever is later), and
  • Only working for the employer between May 1 and September 15 (not employed prior to May 1) and
  • Lives in an Empowerment Zone (EZ).

Qualified Supplemental Nutrition Assistance Program (SNAP) Benefits Recipient:

  • At least 18 but under 40 on the date of hire, and
  • A member of a family that received SNAP benefits for either the last 6  months or at least 3 of the last 5 months.

Qualified Supplemental Security Income (SSI) Recipient:

  • Received SSI benefits for any month ending within the 60-day period that ends on the hire date.

Long-Term Family Assistance Recipient: 

  • At the time of hiring, is a member of a family that meets one of the following conditions:
  • Received assistance under an IV-A program for a minimum of the prior 18 consecutive months, or
  • Received assistance under an IV-A program for a minimum 18-month period beginning after 8/5/1997, and it has not been more than 2 years since the end of the earliest of such 18-month period, or
  • Ceased to be eligible for assistance under an IV-A program up to but no more than 2 years before because a federal or state law limited the maximum time those assistance payments could be made.

Qualified Long-Term Unemployment Recipient: 

  • Unemployed for not less than 27 consecutive weeks at the time of hiring
  • Received unemployment compensation during some or all of the unemployment period.

How to Certify

Eligibility for WOTC is not as simple as just hiring a member of one of these underrepresented talent pools and receiving a credit. As with many federal programs, the devil is in the details — and you can’t certify after the fact.

The IRS recently published additional guidance that clarifies the need to prescreen, and how to do it. As the update notes, “​​To satisfy the requirement to pre-screen a job applicant, on or before the day a job offer is made, a pre-screening notice (Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit) must be completed by the job applicant and the employer.

To reiterate, both employer and job applicant need to complete Form 8850 in advance. Certification has to happen before you can claim this tax credit, which means establishing that the employee you hired is indeed a member of one of the targeted groups on the list.

And there’s more: employees in the targeted list qualify as long as they work at least 120 hours — any less, and the hire isn’t in compliance. Employers also can’t claim the tax credit for rehired employees (it’s not that much of a stretch to imagine that some employers might think they could rehire an employee in order to certify them for the WOTC).

While the maximum credit is $9600 for an eligible employee, the amount of credit an employer receives depends on the WOTC target group identified, as well as how many hours the employee works:

  • If the employee works at least 400 hours during the first year of employment, the tax credit equals 40% of the employee’s qualified wages.
  • If the employee works less than 400 hours but at least 120 hours, the credit equals 25% of the employee’s qualified wages.
  • Eligible employees MUST work a minimum of 120 hours to qualify.

Reading Between the Lines

It means something that the IRS releases an update clarifying its rules on prescreening. Clearly, there were issues being found in terms of when employers were screening: noncompliance was on the radar. Compound that with wanting to increase participation in the program, and likely a decision was made that it was time to set the record straight. Again, complying with the WOTC could mean a major windfall for a larger employer and a key difference in the budget for a smaller one.

But many employers may have been caught in a blind spot. Some have been customarily conducting certain screening processes post-hire, considering the practice a viable shortcut. The intention may be to assume the new employee qualifies, since there has been some due diligence on the part of the employer already. Another assumption may be that by certifying after the hire is complete, the credits will come sooner. But both approaches are wrong.

For one thing, Form 8850 covers specific information in a specific way in order to certify a hire — and as such, is far more effective in terms of fact-finding for WOTC compliance. From an HR standpoint, since both employer and job applicant need to fill out the form, there may be more incentive for the applicant to get all the information right if it helps boost their getting hired. And minor missteps can really add up, putting companies at greater risk, and great costs stemming from an accumulation of noncompliant hires.

Getting the Process Right

Simply making the shift to when an employer conducts screening and sends in their certification request, and then keeping clear and adequate records to stay in compliance would make all the difference. Here’s what you need to know:

Recruit potentially eligible candidates through the state workforce agency (SWA) or the local employment office. Then, screen them: the applicants need to answer the questions on page 1 of IRS Form 8850 on or before the job offer date. 

If the applicant is eligible (they qualify for one of the WOTC target groups), the next step is up to the employer. Employers must sign and submit the IRS Form 8850 — as well as Department of Labor (DOL) ETA Form 9061 or 9062 to the state workforce agency (SWA) within 28 calendar days of the new hire’s start date. 

Keep careful records of hours worked and qualified wages paid. Remember: WOTC-certified employees need to work at least 120 hours in the first year of hire.

Claim the tax credit using IRS Form 5884, and make sure you have not only accurate records but copies of all the forms and supporting documents submitted to the SWA. Keep tracking your employee’s hours in case the IRS wants to conduct an audit.

Better Practices, Better Results

Remember: audits potentially contributed to the IRS’ decision to publish an update with clarifying language on the need to prescreen. It’s clear some employers weren’t being compliant. The line in the sand has already been drawn. But it’s also possible that not all employers are aware of the ramifications of being out of compliance with the WOTC.

Not only does post-screening forfeit initial benefits, but there’s an overall risk of having the WOTC credit revoked if an employer is found to have systematically not complied with prescreening requirements. In a big company that is always hiring, that could be a disaster.

The solution isn’t to hope for the best here. It’s to lean on solutions that help you make the shift without adding complexity. An integrated solution can make it far easier to change a long-held process consistently across the board. But given the historic lack of clarity on compliance and why shortcuts won’t work, this may be the time to look for better guidance.

The Benefits of an Outside Provider

Consider partnering with an outsourced solution provider who has experience with prescreening. A solution provider who has a solid track record with successful prescreening will be able to create a better process that’s streamlined and efficient. They can help get your organization over the common hurdles and build better ways to ease the pain points.

Given the pressures organizations are under — from intensely competitive hiring to a need to scale and adapt within shorter windows than ever — being able to leverage the advantage of the WOTC could be a key differentiator.

Minimizing your organizational exposure to risk is never a bad idea. But having a well-run, successful, WOTC-compliant hiring program may do even more. It’s a huge boost to its employer reputation that could pay off in a steady talent pool and a great workforce.

EDITOR’S NOTE: ADP has developed additional information about the WOTC and how employers can apply it. Learn more here

A Perfect Job Offer is Much More Than Just a Number

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TalentCulture Content Impact Award Winner - 2023

How would you define the perfect job offer? Some people think it’s about finding a magic number that will seal the deal with the right candidate. But smart recruiters know it involves much more than that.

Compensation negotiations have always been complex. But now they’re changing in some fundamental ways. This is largely thanks to new pay transparency laws, which mandate that employers include salary ranges in job postings. As a result, here’s what I see ahead…

How Pay Transparency Changes The Hiring Game

Pay transparency is a boon for job seekers, who will have access to much more useful information about open positions. But this doesn’t need to be a zero-sum game. No doubt, many employers will adjust their tools and processes. And that means recruiters can prosper under these new pay transparency rules. How?

For recruiters, the goal is the same as always — bring the perfect offer to the table. But now, the way to get there is likely to be different than it was in the past.

Making a perfect job offer has always required a balance of three key objectives — fairness, cost-effectiveness, and competitiveness. But these elements are dynamic. The balance is always shifting. So the more you understand how these relationships are changing, the better.

Imagine this: A knowledgeable recruiter leans more heavily on one of these three objectives when making an offer. That strategy might work in today’s hiring climate.

But what about next year? Without the right tools, the same recruiter may not have enough information to make reliable decisions. Instead, compensation will be based on guesswork. And this could jeopardize the balance that holds these offers together.

To build more solid job offers in 2023, take a closer look at the 3 factors I’ve mentioned:

The 3 Pillars of a Perfect Job Offer

1. Fairness

Candidates should be paid fairly. It may sound obvious, but with new pay transparency laws, recruiters have a more important role in making sure this is the case.

Fairness can be tricky to prove because it’s relative. Start by comparing candidates with their own abilities, with employees who do similar work, and with others in your organization.

But keep in mind that it’s not enough for you to think an offer is fair. A candidate must also believe it’s fair. That’s because candidates are much more likely to accept an offer they think is fair than those who think it’s based on guesswork or gamesmanship.

How can you convince candidates that an offer is fair? Don’t assume they’ll take a recruiter’s word for it — they want to see the data. That means your organization will gain a significant advantage if recruiters are able to show their work. This is possible to do with modern data analytics tools, even at scale.

2. Cost-Effectiveness

Your recruiters should be able to attract the best candidates to your organization at the right price. This sounds like a reasonable expectation. But what, exactly, does it mean?

Too often, organizations treat recruiting simply as a cost center. They set a budget and expect recruiters to work within those parameters. That’s important, but there’s so much more your talent acquisition team can accomplish.

Even now, as the economy experiences a downturn, recruiters aren’t just sourcing scouts who fill open positions. They’re also talent strategists who can think holistically about your business needs and goals while also providing the best candidates at the right price.

A compensation strategy involves so many complex elements: workforce planning, budgets, guaranteed vs. at-risk pay, and financial performance. The effects of compensation decisions reach far beyond any individual job applicant. In fact, deciding how many people to hire and determining what to pay them are among the most costly and important decisions any business leader must make. So, as the economy continues to sputter, cost-effective job offers are increasingly important to every organization.

3. Competitiveness

A job offer should balance the chance of a candidate saying yes with the compensation cost to the organization. Understanding what’s at stake is essential in today’s environment. This is why many employers are upgrading their compensation analysis tools. Because in a volatile labor market, good data makes the difference between successfully navigating choppy waters and crashing against the rocks.

In a way, cost-effectiveness and competitiveness are two sides of the same coin. Recruiters want to make offers that help their organization manage costs, even as they attract and retain top talent. But without the right data, finding that balance can be difficult.

This is where recruiters are most likely to make mistakes. In a white-hot talent market, landing qualified candidates can be a struggle. In a down market, it’s a challenge to stay within prescribed budgets. That’s why the perfect offer deserves as much market intelligence as possible, no matter what the hiring climate may be.

Getting Ahead of the Curve

Fair, cost-effective, and competitive. A perfect job offer must balance all three. Recruiters can get ahead of the curve now by taking tangible steps to implement this three-pronged strategy. Specifically, they can focus on using the right information, ensuring that processes are accountable, and communicating about pay throughout each step of the recruiting journey.

At its core, a perfect job offer is based on the best available compensation insights. For successful employers, that means real-time data that indicates what job seekers expect to be paid, what candidates are offered and are willing to accept, as well as what internal data says about existing compensation standards.

The era of pay transparency is here. It may be new, different, and perhaps even a bit intimidating. But it’s also an exciting time to be a recruiting professional. Because, if you’re willing to adapt, a perfect job offer is always within your reach.

 

Hiring In a Recession: 3 Strategies for Business Resilience

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The global economic climate is in a precarious state, with experts now predicting a 70% likelihood that the U.S. will enter a recession this year. No doubt, this news is unsettling for business owners. But it’s important to remember that recessions are a natural part of ongoing economic cycles. They can even present opportunities for organizational growth and resilience if you know how to capitalize on them.

So, how can leaders navigate today’s challenges and emerge even stronger on the other side? By strategically hiring in a recession. If you want to build bench depth on your team during tough times, here are three strategies to consider:

3 Strategies for Hiring in a Recession

1. Go Global With Remote Hiring

We’re in a much different position now than during The Great Recession of 2008. So is the global workforce. Thanks to technological advances and the prevalence of remote work models, it’s much easier now for hiring managers to tap into the vast global talent pool.

Compared with local hiring strategies, seeking out top talent internationally offers multiple advantages. Not only can you gain access to a much larger source of candidates, but you can also achieve significant overhead cost savings if you hire people in locations where labor costs are lower.

In addition, sourcing job candidates from around the world can help you develop a much more diverse team. If you are careful to hire skilled professionals, an international approach can inject your work culture and business deliverables with fresh perspectives. This can help your business operate more effectively and efficiently while supporting long-term growth.

That said, hiring globally isn’t without its challenges. To succeed, hiring managers need to be aware of hiring laws and regulations in their chosen countries, as well as cultural differences. It’s also important to ensure that hiring practices are fair and equitable, regardless of where potential employees may be located.

The importance of remote work leadership also needs to be taken into consideration here. Your organization should be prepared to develop and support management skills and practices that will help remote teams stay connected, engaged and motivated.

2. In an Era of Mercenaries, Focus on Your Missionaries

The last few years have been like a game of musical chairs for the labor market. The Great Resignation resulted in 44% of workers hopping from job to job, searching for higher pay, better benefits, and more flexible work options.

This led to a new trend known as “mercenary hiring,” where employers use inflated compensation packages to recruit highly skilled candidates without regard for the company’s mission or culture. However, this recruiting practice can be very risky. While it may be an effective way to attract top talent in a tight labor market, it can also lead to increased workforce churn and damage company culture.

Fortunately, there’s an antidote to mercenary hiring. Hire “missionaries” instead. Focus on people who share a passion for your company’s mission, purpose, vision, and values. These job seekers are more likely to invest in long-term success with your organization, so they’ll also be more invested in your company’s growth.

Of course, it’s one thing for employers to identify, attract and hire these “missionaries.” But it’s even more important to focus on creating an environment that nurtures them and encourages them to thrive. For example, this can include competitive salaries, consistent recognition, and generous professional development opportunities, as well as incentives like flexible scheduling and remote work options.

3. Find Opportunity in Adversity

The hiring landscape may have changed, but one thing remains the same: Hiring during a recession is an opportunity to tap into highly qualified talent you might not find as easily during better economic times.

During the last recession, the U.S. lost 2.6 million jobs. And in 2022, we began seeing some very prominent companies announcing major layoffs. While this news can be disturbing, hiring managers should see it as an opportunity to find the best and brightest talent amidst the chaos.

History has shown us some iconic instances of hiring when the job market was at low ebb. For example, in the 1940s, Hewlett-Packard famously capitalized on the closure of military labs to beef up its workforce. And during one of the nation’s worst 16-month economic cycles, Microsoft took the initiative to hire some of its most influential engineers. Both cases offer powerful business lessons.

Key Takeaways

So, what’s the moral of this story? Here are the three key takeaways to keep in mind about hiring in a recession:

1. Top Talent is Only a Zoom Call Away

With the rise of remote work and virtual hiring tools, it’s easier than ever to find top talent in all corners of the world. Don’t limit your search to local candidates. Consider expanding your talent acquisition reach to a global scale. This can open you to a broader pool of qualified, motivated candidates while giving you access to diverse skills and experiences.

2. Resilience in Hiring is More Than Just Hiring More People

In a recession, it’s important to be strategic about who you recruit. Look for individuals who share your goals and understand your company’s mission. People who sincerely want to advance your agenda are much more likely to stay with your company during difficult times. Focus on building a team of dedicated employees who are willing to be flexible during uncertain times. This will help you weather the storm and emerge stronger on the other side.

3. When Others Freeze Hiring, Be Bold

During a recession, it can be tempting to react with a hiring freeze. Although that approach may save costs in the near term, it is also likely to be a mistake. Investing in talent during tough economic times can set you apart from competitors and position you for success in the long term. Don’t be afraid to be brave and continue investing in your team, even when times are tough. This can help retain your best existing employees, while also helping you attract strong new talent. That combination can build the foundation your company will need to drive future growth.

Final Note

Overall, the key to successful hiring in a recession depends on three factors – your ability to be adaptable, strategic, and focus on building a team that is willing and able to weather the storm with you. By keeping these principles in mind, you can navigate even the toughest hiring climate and make your organization more resilient in the face of any economic downturn.

Are You Ready to Lead Through Uncertainty?

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Sponsored by HiBob

As 2023 begins, the world of work is bracing for a rough ride. For more than a year, inflation has gripped the economy. Previously unstoppable tech companies are reeling from recent layoffs. And other industries are tightening their belts, as a recession now seems unavoidable. What will it take to lead through uncertainty?

Strategies that helped organizations thrive under different circumstances are no longer relevant. But during lean times, how can you preserve what’s valuable and unique about your organization? This question is top-of-mind for leaders everywhere. So let’s get advice from someone who understands the factors driving today’s business climate:

Meet Our Guest:  Ronni Zehavi

Today, I’m thrilled to welcome Ronni Zehavi, Co-Founder and CEO of modern HR platform provider, HiBob. After more than 25 years of experience in launching and leading successful technology companies, Ronni knows first-hand how to guide organizations through volatile, uncertain circumstances. Now he’s sharing his unique perspective and expertise to help others lead through uncertainty.

Managing Multiple Unknowns

Welcome, Ronni. Let’s dive right in. How can organizations navigate through uncertain times?

It’s a bit like driving a car. In 2021, driving fast may have been easier because the road was clear. But today it’s bumpy and cloudy. No one knows when it will end, so you need to slow down.

2023 is going to be challenging. First, read the map and then adjust your plan. How long is your runway? Do you have enough cash? Do you have enough funds to weather the coming storm?

Then look realistically at the environment. A slowdown will have an impact on your customers as well as your organization. Will you be able to generate the revenues you expect?

The Long Game

The economy will eventually bounce back. How can we prepare for that now?

It starts with your people. Invest in them. Make sure you can retain all of them. Or, if not all of them, focus on your most important people. Because you’ll want them to be with you when the tailwind comes.

And more than anything else, think positive. What goes down comes back up. So optimism is critical.

How to lead through uncertainty

JOIN US ON TWITTER!

What About Layoffs?

Is there a right way to reduce headcount? How can leaders avoid damaging their company culture?

Layoffs are only one option in a CEO’s toolbox when adjusting to a difficult environment. First, you may decide to slow down hiring. If a slow down isn’t enough, then you may need to freeze hiring or freeze salary increases, or both. And if needed, the next option could be salary cuts or layoffs. One or both.

But it is important to think about the people who stay as well as those who are laid off. Retention can be affected when those who remain are expected to do the job of two people or even more.

Communication and transparency are critical to preserve your culture.

Can Flexible Work Help?

Do you think economic changes will influence where we work? 

I don’t think so. I think hybrid work is here to stay. Flexibility was a nice-to-have perk a few years ago. But the pandemic proved that organizations can deal with it.

The ultimate combination is two or three days at the office or two or three days remote. It offers flexibility, but it keeps engagement and collaboration among people.

How to Support Hybrid Work

I like the idea of finding a balance between onsite and remote work. But how can leaders accomplish this? 

It’s a journey. It will take time until we get there as a standard. But flexibility is all about what we call internally, The Three T’s:  Trust. Transparency. Teamwork.

If your organization follows these values, it will help you create a flexible work culture.

 

For more insights from Ronni about how to lead through uncertainty, listen to this full podcast episode. And be sure to subscribe to the #WorkTrends Podcast on Apple Podcasts or Stitcher.

In addition, we invite you to join our live Twitter chat about this topic on Wednesday, January 25th at 1:30pmET/10:30amPT. Follow @TalentCulture for questions and be sure to add the #WorkTrends hashtag to your tweets, so others in the community can easily find your comments and interact with you!

Also, to continue this conversation on social media anytime, follow our #WorkTrends hashtag on Twitter, LinkedIn, and Instagram.

Big, Bad Data: How Talent Analytics Will Make It Work In HR

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Here’s a mind-blowing fact to spark up the late-summer doldrums: research from IBM shows that 90% of the data in the world today has been created in the last two years alone. I find this fascinating.

Which means that companies have access to an unprecedented amount of information: insights, intelligence, trends, future-casting. In terms of HR, it’s a gold mine of Big Data.

This past spring, I welcomed the ‘Industry Trends in Human Resources Technology and Service Delivery Survey,’ conducted by the Information Services Group, a leading technology insights, market intelligence and advisory services company. It’s a useful study, particularly for leaders and talent managers, offering a clear glimpse of what companies investing in HR tech expect to gain from their investment.

Not surprisingly, there are three key benefits companies expect to realize from investments in HR tech:

  • Improved user and candidate experience
  • Access to ongoing innovation and best practices to support the business
  • Speed of implementation to increase the value of technology to the organization.

It’s worth noting that driving the need for an improved user interface, access, and speed is the nature of the new talent surging into the workforce: people for whom technology is nearly as much a given as air. We grew up with technology, are completely comfortable with it, and not only expect it to be available, we assume it will be available, as well as easy to use and responsive to all their situations, with mobile and social components.

According to the ISG study, companies want HR tech to offer strategic alignment with their business. I view this as more about enabling flexibility in talent management, recruiting and retention — all of which are increasing in importance as Boomers retire, taking with them their deep base of knowledge and experience. And companies are looking more for the analytics end of the benefit spectrum. No surprise here that the delivery model will be through cloud-based SaaS solutions.

Companies also want:

  • Data security
  • Data privacy
  • Integration with existing systems, both HR and general IT
  • Customizability —to align with internal systems and processes.

They also want their HR technology to be:

Cloud-based. According to the ISG report, more than 50% of survey respondents have implemented or are implementing cloud-based SaaS systems. It’s easy, it’s more cost-effective than on-premise software, and it’s where the exciting innovation is happening. 

Mobile/social. That’s a given. Any HCM tool must have a good mobile user experience, from well-designed mobile forms and ease of access to a secure interface.

They want it to have a simple, intuitive user interface – another given. Whether accessed via desktop or mobile, the solution must offer a single, unified, simple-to-use interface.

They want it to offer social collaboration tools, which is particularly key for the influx of millenials coming into the workplace, who expect to be able to collaborate via social channels. HR is no exception here. While challenging from a security and data protection angle, it’s a must.

But the final requirement the study reported is, in my mind, the most important: Analytics and reporting. Management needs reporting to know their investment is paying off, and they also need robust analytics to keep ahead of trends within the workforce.

It’s not just a question of Big Data’s accessibility, or of sophisticated metrics, such as the Key Performance Indicators (KPIs) that reveal the critical factors for success and measure progress made towards strategic goals. For organizations to realize the promise of Big Data, they must be able to cut through the noise, and access the right analytics that will transform their companies for the better.

Given what companies are after, as shown in the ISG study, I predict that more and more companies are going to be recognizing the benefits of using integrated analytics for their talent management and workforce planning processes. Talent Analytics creates a powerful, invaluable amalgam of data and metrics; it can identify the meaningful patterns within that data and metrics and, for whatever challenges and opportunities an organization faces, it will best inform the decision makers on the right tactics and strategies to move forward. It will take talent analytics to synthesize Big Data and metrics to make the key strategic management decisions in HR. Put another way, it’s not just the numbers, it’s how they’re crunched.

A version of this was first posted on Forbes.

#TChat Preview: People, Performance And Building Legendary Teams

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The TalentCulture #TChat Show is back live on Wednesday, September 3, 2014, from 7-8 pm ET (4-5 pm PT). The #TChat radio portion runs the first 30 minutes from 7-7:30 pm ET, followed by the #TChat Twitter chat from 7:30-8 pm ET.

Last week we talked about why HR pros need to support each other and help each other thrive, and this week we’re going to talk about people, performance and building legendary teams.

In two months’ time, we’ll be cheering for our favorite players and teams during the baseball Fall Classic, these will be legendary teams that have been performance focused to drive winning outcomes.

In business, the same is true. Focusing on people and their performance is what drives better outcomes for business.

When your people win, they feel more capable and confident, translating into happy people. They are then more likely to be candid in communicating and advancing the business and driving innovation.

Businesses have three primary customers, but leading companies always focus on their employee-customer first. Allowing employees to reach their potential as they drive results for any and all shareholders, and of course, their paying customers.

Join TalentCulture #TChat Shows co-creators and co-hosts Meghan M. Biro and Kevin W. Grossman as we learn more about people, performance and building legendary teams with this week’s guest: Patrick Antrim, an author, speaker, entrepreneur, leadership coach and CEO. Patrick is also a pro baseball mentor and a former New York Yankee, and his leadership & coaching firm, LegendaryTeams.com, is focused on winning in life and business.

Sneak Peak

 

We hope you’ll join the #TChat conversation this week and share your questions, opinions and ideas with our guests and the TalentCulture Community.

#TChat Events: People, Performance And Building Legendary Teams

TChatRadio_logo_020813#TChat Radio — Wed, September 3 — 7 pm ET / 4 pm PT Tune-in to the #TChat Radio show with our hosts, Meghan M. Biro and Kevin W. Grossman, as they talk with our guests 

Tune-in LIVE online this Wednesday!

#TChat Twitter Chat — Wed, September 3 — 7:30 pm ET / 4:30 pm PT Immediately following the radio show, Meghan, Kevin and our guests will move to the #TChat Twitter stream, where we’ll continue the discussion with the entire TalentCulture community. Everyone with a Twitter account is invited to participate, as we gather for a dynamic live chat, focused on these related questions:

Q1: What does it mean to have a “legendary team” in the world of work? #TChat (Tweet this Question)

Q2: Who are the most important business “customers” today and why? #TChat (Tweet this Question)

Q3: What three things should business leadership do to improve their people potential? #TChat (Tweet this Question)

Throughout the week, we’ll keep the discussion going on the #TChat Twitter feed, and in our new TalentCulture G+ community. So feel free to drop by anytime and share your questions, ideas and opinions. See you there!!

photo credit: 드림포유 via photopin cc

Looking Forward In Workforce Planning

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Looking forward, not back

Workforce planning is becoming more and more sophisticated. Tools such as big data let us better identify and act upon patterns in our workforce, whether it’s in retirements, expansions, or the need to improve skills.

Many of the tools we use in this have their roots in the social sciences. So is it time to look to the social sciences again to further improve our approach?

The data trap

Big data is an incredibly powerful tool. It can find patterns that the naked brain cells of the human mind might never notice. It can calculate degrees of correlation, predict the outcome if ongoing trends continue. It can help you to see the woods, not just get stuck looking at the trees.

But it also has two significant limitations, and if we are not aware of them then these can become traps.

The first limitation is that the data is based on looking back, not forwards. It can predict what will happen if existing patterns continue, but not new patterns.

Second is that the data can say what has happened but not why. Just because there is a link between two numbers does not mean that one causes the other. Assuming that the relationship is as expected can lead to errors.

What the data doesn’t show

There are some current examples of problems that data won’t predict if you keep looking at it in the same way. Retirement peaks, for example, can be predicted, but only if you look out for anomalies in the data and specific issues coming down the pipeline.

Looking more widely, there are changes happening in the workforce as a result of longer lives, better healthcare and changes to patterns of retirement. Looking at quantitative data on what has come before will not tell us how this is going to play out, or what the impact will be. There simply is no precedent to look back on.

Similarly, shifts in the way that worker view themselves and what they expect of employers, as explored by writers like Seth Godin, will affect the way that we work. But large pools of quantitative data cannot tell us what the outcomes of these unprecedented changes will be.

Looking forward to looking forward

There are ways to deal with the data better.

One important step is to better understand the potential of the technology and techniques that you already have. Nobody uses the tools they have perfectly, but regular conversations between IT and HR departments can help to find ways for the technology to make your analysis, and so your predictions, more accurate. It may be a humbling conversation, with both sides acknowledging the limits of their current achievements, but it can be an incredibly valuable one.

The ability to synthesize different sets of data is also very important. Looking at each part in isolation gives only an incomplete picture. Developing the ability to see the interactions will allow managers to think about the big picture and to understand each issue in context.

What data you bring together in this way is important. Just looking at what is happening within your firm is not enough. As one global tech company discovered, looking at the broader context of patterns in the national and global workforce, such as upcoming shortages of graduates in particular areas, can be vital to seeing problems coming and preparing for them.

But ultimately what is needed is to look at qualitative data, the sort of information examined by ethnographers and anthropologists. This is the descriptive data, the things that cannot easily be calculated or analyzed by computer, but that can show the links of cause and effect or help managers to make imaginative leaps to new potential futures.

We should not abandon big data and what its number crunching can give us. But we need to use it in more sophisticated ways, and to use other types of data too.

(About the Author: Mark Lukens is a Founding Partner of Method3, a global management consulting firm. He has 20 plus years of C-Level experience across multiple sectors including healthcare, education, government, and people and potential (aka HR). In addition, Mark currently serves as Chairman of the Board for Behavioral Health Service North, a large behavioral health services provider in New York. He also actively serves on the faculty of the State University of New York (SUNY) and teaches in the School of Business and Economics; Department of Marketing and Entrepreneurship and the Department of Management, International Business and Information Systems. Mark holds an MBA and is highly recognized in the technology and healthcare space with credentials including MCSE and Paramedic. Most of Mark’s writing involves theoretical considerations and practical application, academics, change leadership, and other topics at the intersection of business, society, and humanity. Mark resides in New York with his wife Lynn, two children, and two Labradors. The greatest pursuit; “To be more in the Service of Others.”)

To discuss World of Work topics like this with the TalentCulture community, join our online #TChat Events each Wednesday, from 7-8pm ET. Everyone is welcome at events, or join our ongoing Twitter and G+ conversation anytime. Learn more…

TalentCulture World of Work was created for HR professionals, leadership executives, and the global workforce. Our community delves into subjects like HR technology, leadership, employee engagement, and corporate culture everyday. To get more World of Work goodness, please sign up for our newsletter, listen to our #TChat Radio Channel or sign up for our RSS feed.

Do you have great content you want to share with us? Become a TalentCulture contributor!

HR and Marketing: Smashing Silos #TChat Recap

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In this do-more-with-less era, it’s almost counterintuitive to think that “silo” mentality still defines some organizations. We’ve all seen it — different departments don’t know why or how they should rely on each other, and business suffers from a lack of collaboration.

Of course, I do know some companies where communication is strong. People forge cross-functional relationships, and they use influence to drive progress. But unfortunately, that’s not the norm. More often, departments work in isolation — struggling to understand business problems, confused about how to solve them, and uncertain how to move to the next level. Cultures like this lag far behind collaborative competitors.

Bridging the Gap

Where is this challenge most prevalent? Let’s start in our backyard, with human resources and marketing. As the TalentCulture community discussed this week at #TChat events, these two disciplines share much common ground, but tend not to realize it. Why? Let’s dig deeper.

According to the American Marketing Association, “Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings.” How does that apply to recruiting — a critical HR responsibility?

When a company seeks candidates for an open position, it relies upon a process that helps recruiters translate the need into a workable activity. For example, the process may start with a job description, created with requirements and other information obtained from the hiring manager. The description is transformed into a job posting and communicated externally in multiple forms. Various channels deliver the message to appropriate audiences as an offer that says essentially, “Here’s the kind of talent we seek. In exchange for your ability and commitment to perform the job to our expectations, we will compensate you with X, Y and Z.”

This tactic is pure marketing. It rings true with the classic “5 Ps” of the marketing mix — as well as the more recent inside-out version:

People – Potential employees
Product – Job opportunity
Price – Associated cost to recruit, fill, hire and retain
Promotion – Advertising and word-of-mouth about the job opening
Place – Organizational culture, which extends to talent communities that share job information

At the intersection of recruiting and marketing, many tactics and fundamentals go hand-in-hand, creating opportunities to exchange knowledge and hone skills. But more importantly, at the center of this common worldview is the employment brand — a powerful organizational asset. This is the foundation upon which an employment value proposition flourishes. The proof points are bits of raw workforce and candidate experience data we should analyze within the context of a strategic recruitment plan. Ultimately, that recruitment plan should not only inform corporate brand strategy, but also be shaped by it.

Two Sides Of The Same Coin

Like two sides of a coin, recruiting and marketing practitioners must work in concert to be truly effective. As people listen, learn, empathize and sharpen their communications, the opportunity to understand and leverage interdepartmental strengths will expand. When teams work in concert to unify brand positioning, measurably improved outcomes can’t be far behind.

Thanks to everyone who shared ideas and opinions about this topic at #TChat events this week. We invite you to review the related resources below, and continue this conversation here and on social channels. Hopefully, we can be an example of effective professional collaboration!

#TChat Week-In-Review: Recruiting IS Marketing?

SUN 9/1:

ChrisFields

Watch the Hangout with Chris Fields

#TChat Preview: TalentCulture Community Manager Tim McDonald provided a “sneak peek” of this week’s topic, featuring a brief Hangout discussion with one of our special guests, Chris Fields. Read the Preview: Recruiting and Marketing: Blurred Lines?

MON 9/2:

Forbes.com Post: TalentCulture CEO, Meghan M. Biro explained why and how business leaders should view recruitment as a strategic marketing initiative. Read: “5 Recruiting Habits of Successful Leaders.”

TUE 9/3:

Related Post: Guest blogger, David Smooke defined 3 keys to “Hiring Culture” as the basis for strategic recruiting initiatives. Read: “Hiring Culture: Creating A Recruitment Ecosystem.”

WED 9/4:

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Listen to the #TChat Radio show

#TChat Radio: As a prelude to our open Twitter chat, Meghan M. Biro and Kevin W. Grossman, talked with two recruiting experts about why and how HR organizations can leverage marketing expertise to enhance recruitment. Our special guests were:

• David Bernstein, VP of the “Big Data for HR” Division at eQuest, and
• Chris Fields, independent HR consultant, resume development specialist and HR writer.

Listen now to the radio show recording.

#TChat Twitter: Immediately following the radio show, I moderated an open discussion with Chris, Meghan, Kevin and our entire community on the #TChat Twitter stream. For highlights from the conversation, watch the Storify slideshow below:

#TChat Highlights: Recruiting IS Marketing

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Closing Notes & What’s Ahead

GRATITUDE: Thanks again to guests David Bernstein and Chris Fields, for offering your perspectives on recruiting and marketing this week. Your expertise and insights are invaluable to our community.

NOTE TO BLOGGERS: Did this week’s events prompt you to write about related issues? We’d love to share your thoughts. Post a link on Twitter (include #TChat or @TalentCulture), or insert a comment below, and we’ll pass it along.

WHAT’S AHEAD: Next week on 9/11, we take a serious look at an important subject, “Workplace Violence and Prevention.” This promises to be a helpful and informative session. So plan to join us, and check for more details in coming days here and on TalentCulture channels.

In the meantime, the World of Work conversation continues! So join us on the #TChat Twitter stream, on our LinkedIn discussion group. or elsewhere on social media. The lights are always on here at TalentCulture, and your ideas and opinions are always welcome.

See you on the stream!

Image Credit: Stock.xchng