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How The Biggest Trends Of 2015 Have Impacted HR And Recruitment

Meghan M. Biro

It’s safe to say that 2015 truly became “the year of digital technology.” Yes, we’ve seen a rapid evolution in technology over the last decade or so, but 2015 was definitely the year where those advancements made a huge impact on the workforce, especially when it comes to HR and recruitment.

According to the latest Pew Research Center analysis of U.S. Census Bureau data, the millennial workforce (adults ages 18 to 34) is close to 54 million strong and rising, surpassing the boomers in 2014, and this year toppling Gen X as the biggest cohort in our modern labor force. This unique—and massive—generation and the influence they wield is something that can’t be ignored, and had a massive impact on how businesses adjusted their strategies and employment practices in 2015.

Of course, technology as a whole has crept into every part of our daily lives. Mobile devices, wearables, Everything as a Service (EaaS), the Internet of Things—no matter where we turn or what we do, technology plays a role. It’s only natural of course, that technology has had—and will continue to have—an impact on the workforce and, by extension, HR and recruitment. Let’s take a look at the changes we saw in 2015, and what we can expect for the future.

Baby boomers heading out, millennials stepping in

Once the backbone of the nation’s workforce at about 66 million employees, the youngest Boomer today is 51 years old, while the oldest are approaching age 70. With more Boomers retiring every year, the size of this particular workforce will continue to shrink. Millennials’ ranks have swelled to fill the gap, with Gen Z (those born between 1995 and 2010), soon entering the workforce as well. As Millennials and Gen Z become the major players in today’s working society, businesses of all sizes are finding it necessary to modify many aspects of their HR and recruitment practices to adapt and adjust. A recent article shared some interesting stats, on Millennials in particular, and how they see their work worlds:

  • 64 percent of this group say it’s a priority for them to make the world a better place.
  • The definition of “boss” has changed. In fact, 72 percent of Millennials would like to be their own boss. But if they do have to work for a boss, 79 percent prefer that boss to act more as a coach or mentor.
  • 88 percent would choose a collaborative work-culture rather than a one based on competition.
  • 74 percent want flexible work schedules—including the option to work from home.
  • And scratch the concept of “work-life balance.” As technology has allowed work and life to blend seamlessly these days, today’s up-and-comers, a full 88 percent, expect “work-life integration” to be a natural part of their employment experience.

These represent some big changes in the world of work, and the companies who understand, embrace this new mindset, and adapt accordingly, will be well positioned to not only attract, but also retain, this new workforce demographic.

Social media’s impact on HR and recruitment

The entire recruitment marketing game has changed. Listing a position on Monster.com, Craigslist, or some other online job search site doesn’t cut it anymore. Instead, social media has become an outlet for nearly everything HR and recruitment related: Sourcing new talent, promoting your company and its culture, sharing job opportunities, and also keeping an eye on what competitors are up to. Nearly 80 percent of job seekers now use social media when sourcing opportunities. And those younger generations? Almost 90 percent of them see social job searching as the new normal. Social media can also help small- to medium-sized businesses compete with larger, enterprise-level peers, allowing them to reach the same large pools of potential candidates, speed up the recruitment process, and reduce overall recruitment costs.

Millennials also have a completely different idea of what a career means, and understanding what they want directly affects our ability to retain them as employees. Millennials are talented and confident and, as the stats above clearly demonstrate, they are highly collaborative and value relationships—even with their managers. As a natural progression, social media, by its very nature, is about relationships. Being active online and using social for your HR and recruitment efforts helps build relationships with potential candidates. This helps not only attract potential candidates, both active and passive, but can also facilitate the hiring process as well.

The benefits for the company who aces social media recruitment are myriad: Increased candidate diversity, higher employee retention, higher candidate volume and, because you’ve already been transparent online about your company and what it is you have to offer, and you’ve been actively building social relationships with potential candidates, it can also result in a lower cost per hire. All in all, a win all the way around.

Honesty is the biggest and best policy

Honesty, or what many call transparency, has become tremendously important to the workforce. Employees are becoming less tolerant of companies run in secrecy and policies made behind closed doors. A great corporate culture has become as important as good wages. In many instances, culture trumps compensation—and this doesn’t seem likely to change. Millennials in particular want to feel like a part of the company culture; it motivates them to do good work. But to feel like part of the team, they want to know about their workplace, and again, they’re not afraid to ask.

Millennials know they can simply take their talent elsewhere, and they will if they feel unfulfilled or deceived by management. A survey that spanned 20 countries found that 29 percent of Millennials feel that it would be easy to find another job if they weren’t happy—and that same number feel they don’t understand how their work impacts the company they work for. That’s a wake-up call for employers; staff members who have no clue why what they do what they do results in one thing: Poor performance.

Employees need clear goals set out for them, both short and long term, and they need to know the direct path they must take to achieve those goals. If your company is still holding its strategic cards close to the vest instead of being open and honest about your team’s future, consider making changes.

Learn from companies on the cutting edge of HR trends

I mentioned above how being active on social media can help you keep a close eye on your competition, especially when it comes to HR and recruitment. Watch for the true innovators, and learn from what they are doing when it comes to highlighting their company culture, benefits, and perks.

Zappos is a perfect example of a company always pushing the envelope, with a new twist on recruiting strategy. Recently, Zappos ditched posting jobs on their career site in favor of corporate transparency and building long-term relationships. When you land on their main page, you are introduced to Zappos team members. You can then choose a team that is most aligned with your personal skill set, and upload your resume through LinkedIn or Facebook (hello social media!) before being asked a few casual and engaging questions.

Southwest Airlines (a company that receives more applicants per position than Harvard) uses something called “scenario-simulation” to separate the wheat from the chaff. These exercises use problem solving, creative thinking, and collaboration skills similar to what may later be required on the job and while in-flight.

At Whole Foods, after completing their probationary periods, candidates’ coworkers vote to determine whether they should be hired permanently. That might sound slightly “Lord of the Flies-esque,” but if you’re looking to build a solid “fit-based” culture when it comes to hiring, who better to be the judge than a candidate’s fellow team members? Definitely worth considering.

Use company culture as a perk

Ok, so you’ve adjusted your HR and recruitment processes for 2016 or at least have some things to think about and experiment with. You’ve now got a heavy focus on social media and transparency. You use Facebook, LinkedIn, and Twitter to complement your career site, which, of course, has a comprehensive list of benefits and corporate policies, as well as an honest depiction of your company’s core values. You’ve created a seamless digital trail of access and information for potential hires looking to peek behind the curtains of your company.

But does it work? The answer is a resounding yes. In fact, Zappos’ “digital and technology-focused” hiring strategies, which incorporates everything mentioned here and much more, has landed the company on Fortune Magazine’s prestigious 100 Best Companies to Work For list. Their HR and recruitment strategies accurately measure exactly what Zappos hires for—50 percent talent and 50 percent ability to mesh with company culture.

In the information and technology age, it’s all about, well…information and technology. Workplace demographics have changed dramatically over the last decade, and will continue to change at an even more rapid rate during the next decade. Younger, more flexible thinking is required for every business to succeed in these new tech and digital driven waters, and that all starts on the ground floor, with hiring.

You don’t have to be a Zappos or Whole Foods, but you do have to keep your eye on changes that are happening in HR and recruitment, and make adjustments to your view on the entire recruitment, hiring, and retention processes. The future of the workplace is one that is culture-driven and thrives off of the honesty and happiness of its employees. I think that’s a good thing.

What do you think? Have you incorporated some of these strategies into your HR and recruitment processes? What have you discovered that you didn’t expect? What challenges did you face along the way? What do you see as the biggest hurdles to companies moving forward? I’d love to hear your thoughts.

For more insight on how technology continues to influence HR, see 2016 HR Trends: Personalized Learning And Transparency.

The post How the Biggest Trends of 2015 Have Impacted HR and Recruitment appeared first on TalentCulture.

Image : StockSnap.io

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What Gen Z’s Arrival In The Workforce Means For Recruiters

Meghan M. Biro

Generation Z’s arrival in the workforce means some changes are on the horizon for recruiters. This cohort, born roughly from the mid-90s to approximately 2010, will be entering the workforce in four Hiring Generation Z words in 3d letters on an organization chart to illustrate finding young employees for your company or businessshort years, and you can bet recruiters and employers are already paying close attention to them.

This past fall, the first group of Gen Z youth began entering university. As Boomers continue to work well past traditional retirement age, four or five years from now, we’ll have an American workplace comprised of five generations.

Marketers and researchers have been obsessed with Millennials for over a decade; they are the most studied generation in history, and at 80 million strong they are an economic force to be reckoned with. HR pros have also been focused on all things related to attracting, motivating, mentoring, and retaining Millennials and now, once Gen Z is part of the workforce, recruiters will have to shift gears and also learn to work with this new, lesser-known generation. What are the important points they’ll need to know?

Northeastern University led the way with an extensive survey on Gen Z in late 2014 that included 16- through 19-year-olds and shed some light on key traits. Here are a few points from that study that recruiters should pay special attention to:

  • In general, the Generation Z cohort tends to be comprised of self-starters who have a strong desire to be autonomous. 63% of them report that they want colleges to teach them about being an entrepreneur.
  • 42% expect to be self-employed later in life, and this percentage was higher among minorities.
  • Despite the high cost of higher education, 81% of Generation Z members surveyed believe going to college is extremely important.
  • Generation Z has a lot of anxiety around debt, not only student loan debt, and they report they are very interested in being well-educated about finances.
  • Interpersonal interaction is highly important to Gen Z; just as Millennials before them, communicating via technology, including social media, is far less valuable to them than face-to-face communication.

Of course Gen Z is still very young, and their opinions as they relate to future employment may well change. For example, reality is that only 6.6% of the American workforce is self-employed, making it likely that only a small percentage of those expecting to be self-employed will be as well. The future in that respect is uncertain, and this group has a lot of learning to do and experiences yet ahead of them. However, when it comes to recruiting them, here are some things that might be helpful.

Generation Z is constantly connected

Like Millennials, Gen Z is a cohort of digital natives; they have had technology and the many forms of communication that affords since birth. They are used to instant access to information and, like their older Gen Y counterparts, they are continually processing information. Like Millennials, they prefer to solve their own problems, and will turn to YouTube or other video platforms for tutorials and to troubleshoot before asking for help. They also place great value on the reviews of their peers.

For recruiters, that means being ready to communicate on a wide variety of platforms on a continual basis. In order to recruit the top talent, you will have to be as connected as they are. You’ll need to keep up with their preferred networks, which will likely always be changing, and you’ll need to be transparent about what you want, as this generation is just as skeptical of marketing as the previous one.

Flexible schedules will continue to grow in importance

With the growth of part-time and contract workers, Gen Z will more than likely assume the same attitude their Millennial predecessors did when it comes to career expectations; they will not expect to remain with the same company for more than a few years. Flexible schedules will be a big part of their world as they move farther away from the traditional 9-to-5 job structure as work becomes more about life and less about work, and they’ll likely take on a variety of part time roles.

This preference for flexible work schedules means that business will happen outside of traditional work hours, and recruiters’ own work hours will, therefore, have to be just as flexible as their Gen Z targets’ schedule are. Companies will also have to examine what are in many cases decades old policies on acceptable work hours and business norms as they seek to not only attract, but to hire and retain this workforce with wholly different preferences than the ones that came before them. In many instances this is already happening, but I believe we will see this continue to evolve in the coming years.

Echoing the silent generation

Unlike Millennials, Gen Z came of age during difficult economic times; older Millennials were raised in the boom years. As Alex Williams points out in his recent New York Times piece, there’s an argument to be made that Generation Z is similar in attitude to the Silent Generation, growing up in a time of recession means they are more pragmatic and skeptical than their slightly older peers.

So how will this impact their behavior and desires as job candidates? Most of them are the product of Gen X parents, and stability will likely be very important to them. They may be both hard-working and fiscally savvy.

Sparks & Honey, in their much quoted slideshare on Gen Z, puts the number of high-schooler students who felt pressured by their parents to get jobs at 55 percent. Income and earning your keep are likely to be a big motivation for GenZ. Due to the recession, they also share the experience of living in multi-generational households, which may help considerably as they navigate a workplace comprised of several generations.

We don’t have all the answers

With its youngest members not yet in double digits, Gen Z is still maturing. There is obviously still a lot that we don’t know. This generation may have the opposite experience from the Millennials before them, where the older members experienced the booming economy, with some even getting a career foothold, before the collapse in 2008. Gen Z’s younger members may get to see a resurgent economy as they make their way out of college. Those younger members are still forming their personalities and views of the world; we would be presumptuous to think we have all of the answers already.

Generational analysis is part research, but also part theory testing. What we do know is that this second generation of digital natives, with its adaption of technology and comfort with the fast-paced changing world, will leave its mark on the American workforce as it makes its way in. As a result, everything about HR will change, in a big way. I wrote a post for my Forbes column recently where I said, “To recruit in this environment is like being part wizard, part astronaut, part diplomat, part guidance counselor,” and that’s very true.

As someone who loves change, I believe there has never been a more exciting time to be immersed in both the HR and the technology space. How do you feel about what’s on the horizon as it relates to the future of work and the impending arrival of Generation Z? I’d love to hear your thoughts.

Social tools are playing an increasingly important role in the workplace, especially for younger workers. Learn more: Adopting Social Software For Workforce Collaboration [Video].

The post What Gen Z’s Arrival In The Workforce Means For Recruiters appeared first on TalentCulture.

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How The Digital Economy Is Defining An Entire Generation

Julia Caruso

millennial businesswomen using digital technology at work“Innovation distinguishes between a leader and a follower.” – Steve Jobs

As a part of the last wave of Millennials joining the workforce, I have been inspired by Jobs’ definition of innovation. For years, Millennials like me have been told that we need to be faster, better, and smarter than our peers. With this thought in mind and the endless possibilities of the Internet, it’s easy to see that the digital economy is here, and it is defining my generation.

Lately we’ve all read articles proclaiming that “the digital economy and the economy are becoming one in the same. The lines are being blurred.” While this may be true, Millennials do not see this distinction. To us, it’s just the economy. Everything we do happens in the abstract digital economy – we shop digitally, get our news digitally, communicate digitally, and we take pictures digitally. In fact, the things that we don’t do digitally are few and far between.

Millennial disruption: How to get our attention in the digital economy

In this fast-moving, highly technical era, innovation and technology are ubiquitous, forcing companies to deliver immediate value to consumers. This principle is ingrained in us – it’s stark reality. One day, a brand is a world leader, promising incredible change. Then just a few weeks later, it disappears. Millennials view leaders of the emerging (digital) economy as scrappy, agile, and comfortable making decisions that disrupt the norm, and that may or may not pan out.

What does it take to earn the attention of Millennials? Here are three things you should consider:

1. Millennials appreciate innovations that reinvent product delivery and service to make life better and simpler.

Uber, Vimeo, ASOS, and Apple are some of the most successful disruptors in the current digital economy. Why? They took an already mature market and used technology to make valuable connections with their Millennial customers. These companies did not invent a new product – they reinvented the way business is done within the economy. They knew what their consumers wanted before they realized it.

Millennials thrive on these companies. In fact, we seek them out and expect them to create rapid, digital changes to our daily lives. We want to use the products they developed. We adapt quickly to the changes powered by their new ideas or technologies. With that being said, it’s not astonishing that Millennials feel the need to connect regularly and digitally.

2. It’s not technology that captures us – it’s the simplicity that technology enables.

Recently, McKinsey & Company revealed that “CEOs expect 15%–50% of their companies’ future earnings to come from disruptive technology.” Considering this statistic, it may come as a surprise to these executives that buzzwords – including cloud, diversity, innovation, the Internet of Things, and future of work – does not resonate with us. Sure, we were raised on these terms, but it’s such a part of our culture that we do not think about it. We expect companies to deeply embed this technology now.

What we really crave is technology-enabled simplicity in every aspect of our lives. If something is too complicated to navigate, most of us stop using the product. And why not? It does not add value if we cannot use it immediately.

Many experts claim that this is unique to Millennials, but it truly isn’t. It might just be more obvious and prevalent with us. Some might translate our never-ending desire for simplicity into laziness. Yet striving to make daily activities simpler with the use of technology has been seen throughout history. Millennials just happen to be the first generation to be completely reliant on technology, simplicity, and digitally powered “personal” connections.

3. Millennials keep an eye on where and how the next technology revolution will begin.

Within the next few years Millennials will be the largest generation in the workforce. As a result, the onslaught of coverage on the evolution of technology will most likely be phased out. While the history of technology is significant for our predecessors, this not an overly important story for Millennials because we have not seen the technology evolution ourselves. For us, the digital revolution is a fact of life.

Companies like SAP, Amazon, and Apple did not invent the wheel. Rather, they were able to create a new digital future. For a company to be successful, senior leaders must demonstrate a talent for R&D genius as well as fortune-telling. They need to develop easy-to-use, brilliantly designed products, market them effectively to the masses, and maintain their product elite. It’s not easy, but the companies that upend an entire industry are successfully balancing these tasks.

Disruption can happen anywhere and at any time. Get ready!

Across every industry, big players are threatened — not only by well-known competitors, but by small teams sitting in a garage drafting new ideas that could turn the market upside down. In reality, anyone, anywhere, at any time can cause disruption and bring an idea to life.

Take my employer SAP, for example. With the creation of SAP S/4HANA, we are disrupting the tech market as we help our customers engage in digital transformation. By removing data warehousing and enabling real-time operations, companies are reimagining their future. Organizations such as La Trobe University, the NFL, and Adidas have made it easy to understand and conceptualize the effects using data in real time. But only time will tell whether Millennials will ever realize how much disruption was needed to get where we are today.

Find out how SAP Services & Support you can minimize the impact of disruption and maximize the success of your business. Read SAP S/4HANA customer success stories, visit the SAP Services HUB, or visit the customer testimonial page on SAP.com.

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About Julia Caruso

Julia Caruso is a Global Audience Marketing Specialist at SAP. She is responsible for developing strategic digital media plans and working with senior executives to create high level content for SAP S/4HANA and SAP Activate.

Robots: Job Destroyers or Human Partners? [INFOGRAPHIC]

Christopher Koch

Robots: Job Destroyers or Human Partners? [INFOGRAPHIC]

To learn more about how humans and robots will co-evolve, read the in-depth report Bring Your Robot to Work.

Download the PDF (91KB)

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About Christopher Koch

Christopher Koch is the Editorial Director of the SAP Center for Business Insight. He is an experienced publishing professional, researcher, editor, and writer in business, technology, and B2B marketing. Share your thoughts with Chris on Twitter @Ckochster.

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What Is The Key To Rapid Innovation In Healthcare?

Paul Clark

Healthcare technology has already made incredible advancements, but digital transformation of the healthcare industry is still considered in its infancy. According to the SAP eBook, Connected Care: The Digital Pulse of Global Healthcare, the possibilities and opportunities that lie ahead for the Internet of Healthcare Things (IoHT) are astounding.

Many health organizations recognize the importance of going digital and have already deployed programs involving IoT, cloud, Big Data, analytics, and mobile technologies. However, over the last decade, investments in many e-health programs have delivered only modest returns, so the progress of healthcare technology has been slow out of the gate.

What’s slowing the pace of healthcare innovation?

In the past, attempts at rapid innovation in healthcare have been bogged down by a slew of stakeholders, legacy systems, and regulations that are inherent to the industry. This presents some Big Data challenges with connected healthcare, such as gathering data from disparate silos of medical information. Secrecy is also an ongoing challenge, as healthcare providers, researchers, pharmaceutical companies, and academic institutions tend to protect personal and proprietary data. These issues have caused enormous complexity and have delayed or deterred attempts to build fully integrated digital healthcare systems.

So what is the key to rapid innovation?

According to the Connected Care eBook, healthcare organizations can overcome these challenges by using new technologies and collaborating with other players in the healthcare industry, as well as partners outside of the industry, to get the most benefit out of digital technology.

To move forward with digital transformation in healthcare, there is a need for digital architectures and platforms where a number of different technologies can work together from both a technical and a business perspective.

The secret to healthcare innovation: connected health platforms

New platforms are emerging that foster collaboration between different technologies and healthcare organizations to solve complex medical system challenges. These platforms can support a broad ecosystem of partners, including developers, researchers, and healthcare organizations. Healthcare networks that are connected through this type of technology will be able to accelerate the development and delivery of innovative, patient-centered solutions.

Platforms and other digital advancements present exciting new business opportunities for numerous healthcare stakeholders striving to meet the increasing expectations of tech-savvy patients.

The digital evolution of the healthcare industry may still be in its infancy, but it is growing up fast as new advancements in technology quickly develop. Are you ready for the next phase of digital transformation in the global healthcare industry?

For an in-depth look at how technology is changing the face of healthcare, download the SAP eBook Connected Care: The Digital Pulse of Global Healthcare.

See how the digital era is affecting the business environment in the SAP eBook The Digital Economy: Reinventing the Business World.

Discover the driving forces behind digital transformation in the SAP eBook Digital Disruption: How Digital Technology is Transforming Our World.

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About Paul Clark

Paul Clark is the Senior Director of Technology Partner Marketing at SAP. He is responsible for developing and executing partner marketing strategies, activities, and programs in joint go-to-market plans with global technology partners. The goal is to increase opportunities, pipeline, and revenue through demand generation via SAP's global and local partner ecosystems.