¶ Intro / Opening
Welcome to HRpreneur. I'm Jim Duffy. From Main Street to your street, the HRpreneur podcast is centered around helping small businesses like yours gain the knowledge you seek from HR payroll and hiring to time, taxes, benefits, and insurance. Companies have seen how the last few years have significantly changed the way we attract, hire, and retain talent. Now more than ever, business leaders need to look at new hiring methods and strategies to help them win in this talent market.
Today we're joined by Kiran Contractor. Director of talent acquisition at ADP to discuss today's talent landscape and this ever changing market. Kiran, welcome once again, back to our program.
Thank you, Jim. It's great to be back.
So let's start.
¶ Economic trends impacting employment
So even now, in 2024, we know the talent market is still very unpredictable and is top of mind for many companies. What can you share about today's market compared to what the trend has been over the past two or three years?
So I think we can all agree that the last few years has been quite the whirlwind when we think about the labor market and all the trends that we've seen. It really is an ever changing market and we're in this non traditional era of talent and also the number of jobs that are being added month over month still continues to shock people trying to understand the market and see what's going on. I know every month I'm confused myself.
So, you know, although there are signs of a cooling market and quit rates are returning to pre covid levels, companies shouldn't feel too confident in thinking it's an employer's market completely. Um, turnover is still going to be a thing as today's workforce is very confident when it comes to taking their skills and their experience down another path. So I think the bigger focus this year will be around.
Adopting to the multi generational workforce and their expectations as they really evaluate companies.
¶ Workforce priorities in today’s market
So speaking of expectations We have seen companies in general shifting their mindset on how they hire and retain due to the workforce and their needs What are some of the expectations that are top of mind for companies to meet for their employees?
You know, I think it starts with the concerns that the workforce has today. People are still very concerned about the potential recession in 2024, right? There's been a lot of conversation around that. Are we in it? Will we be in it? Has it passed? So these are all the questions that everyone is asking every day. And there is a lot more conversation around adapting to economic and social pressures, especially with the impact of inflation. And yes, the effects of inflation have affected both.
The employee and the employer market, uh, we've also seen wage growth has shifted in the last year mainly due to Pay transparency and equity playing a really big role which by the way, I think is great I I love that companies have really been taking the time to evaluate their current compensation structures And although we are seeing wage growth decrease for job stayers and switchers One of the main priorities is for companies to really remember what the employee market,
uh, really wants because of the fact that they have not recovered as of yet. So I actually recently saw on Monsters Work report data that 81 percent of workers say their current wage has not kept up with the rising cost of living. So companies should really be thinking about how they can add value when it comes to compensating for that gap and those ongoing financial struggles.
This is really where employers have the opportunity to alleviate that financial burden and think how they can add value beyond pay and really make an impact. So I think it's going back to focusing on total compensation. That's so key. And we know that attracting and retaining talent is still one of the biggest priorities for companies today. So everything has been on top of mind, uh, you know, for the same, the same things that have really been on top of mind for the last few years.
So factors like pay, benefits, flexibility, career mobility, all of that, uh, should really be a focus.
Excellent. Those are all great call outs, Kiran. Uh, where are you seeing companies struggle the most as they try to adapt to some of these expectations you just mentioned?
I think one of the biggest struggles that we're seeing is companies not connecting their perks and benefits to their people. You know, people feel more valued based on the benefits that a company offers. And in fact, ADP recently conducted a survey. It's an employee benefit survey on our clients' employees, and 78 percent of people feel more valued because their employer offers benefits, but it has to connect to their needs.
So in many cases, We think that, you know, there is a lot of time where there is a disconnect between employee needs and employer perception. Even as we take a look at the multigenerational movement, you have employees today that are in different stages in their lives, personally and professionally. So being able to adapt to the needs of this market is really crucial.
So, Kiran, the multigenerational movement has been top of mind
¶ Hiring for all generations
for many lately, and I agree that companies definitely need to adapt to the various employee demographics making up the market.
We currently have four generations making up the workforce, and that's a lot to juggle, so there really is a lot to consider.
Karen, would you say that generational expectations are consistent, or are they scattered? In other words, when you look at both attracting and retaining talent, what is the right approach with all four generations?
You know, I think there's always going to be similarities across generations, but priorities can really vary. You have to take the the right approach by understanding the variety of needs the talent market has today based on the events that may be taking place in their lives and Even their families lives, right? We can't forget about those connections. So it's really asking what motivates and drives your current people to feel valued based on what you offer them as an employer.
So let's take a look at some of those generation examples, right? Uh, we have Gen Z, uh, you may, you, you may, consider the fact that Gen Z right now has student debt. Um, and you know, how can you help alleviate that? Uh, there is a desire to be more interested in educational perks usually with this type of generation, right? Um, training, uh, anything that can help them continue to develop.
We have millennials right now that may be more interested in family planning or even fertility treatments and wellness perks. And then you have Gen X that will also be a generation that's interested in maybe financial planning or maybe exploring elderly care for their parents. And then we have baby boomers. Uh, you know, I do want to call out 20 percent of baby boomers are actually going to extend working. or consider coming back from retirement.
So that's an advantage for companies today as well. Their focus may be different levels of wellness or extended medical assistance. So this is where you have to take a step back and really ask yourself, do I truly know my workforce?
So can we dig in a little bit more there about the baby boomers? I'd like to discuss that for a second because this generation is really retiring at a rapid rate and It's concerning for many companies because they are having difficulty hiring for specific roles Due to the Baby Boomer exiting the workforce and they can't find experienced workers. What are your thoughts there?
Yeah, it's actually a pretty big struggle. You know, this year is called peak 65. So the U.S. 133, Census data actually tells us that over 12, 000 U.S. 135, Americans will turn 65 every day in 2024. So yes, lots of things are happening at a rapid rate. But I do want to call out something because I know there's a lot of focus around the newer generations taking over the workforce, but again, we can't forget about the baby boomers.
It is important for companies to really retain this population because experience is deteriorating in many industries. So companies should really be focused on leveraging their baby boomer workforce to create a succession plan, right, so they can train and really mentor the future workforce.
So in your opinion, where do companies have the opportunity to embrace the baby boomer generation as many are looking to extend working?
So I think aside from mentoring opportunities, uh, companies should really be thinking about all the opportunities they have to hire experienced workers, uh, from different industries that can really fill those gaps. You know, there's this perception around being too experienced. Uh, it may not always be a good thing. And I think that that needs to change. It's not always a bad thing.
I think companies absolutely should see this as an opportunity to hire this generation for even junior positions, especially if there is an interest. Why wouldn't you take advantage of that? And I think this concept is becoming more popular because baby boomers still enjoy working and aren't ready to leave the workforce. Uh, not all right, but but some and many want to work less hours with less stressful jobs and actually maintain that work life balance.
Company should be thinking about how baby boomers can impact the younger workforce who have no experience. They can even be a part of building a training program for your future employees. So companies aren't really going to have this large experience talent pool to choose from, um, in the near future. Thank you. So I think the skills gap challenge that everyone is really talking about is real. So utilizing what you have to prepare for is key.
You just brought up an important point.
¶ Evaluating candidates and conquering the talent gap
What is the worry about the skills gap you just mentioned? And how do companies, um, how are they looking to tackle this? Where, for example, is the biggest concern when it comes to finding talent?
Yeah. So we just, you know, we just talked about the baby boomers right now. And, Gen Z is expected to overtake baby boomers in the in the full time workforce in 2024, according to Glassdoor. So there's definitely this concern around skills gap in general. Something to think about is that newer generations may not actually see today's role as their future profession. So attracting talent is actually going to become more of a challenge.
You know, in 10 years, we're going to be hearing about Professions that don't even exist today. So I think companies really need to think about how they are going to keep up with the movement and the creation of roles as well. This is also a time for companies to think about re skilling their own people. So look at the value that your people bring today and their potential.
Upskilling and motivating your employees to do more, uh, can benefit you in the long run as you're trying to fill that skills gap and really trying to retain your people.
So Kiran, to your point about the generations in mind who are now predominantly going to occupy the workforce, how does a company get it right when it comes to attracting talent?
I think companies will have to be open to people from various industries. and consider transferring skills from industries that they probably would have never considered. Uh, really trying to understand what skills it takes to make your company successful is what you should be thinking about. It's not necessarily all about experience. And this can start with the basics, right? Like think about education requirements.
Younger generations see education very differently and may not be as focused on getting a four year degree. We're even seeing companies even drop the degree requirement. Candidates are now focused on getting credentialed for skills. That makes sense and getting certifications and going through multiple training programs. So if you really want to get it right, you want to be the company that offers credentialing and an entry level training program where you can cross train again.
It goes back to how do you make your company and the professions in your world more appealing? Can you actually invest in this new talent pool yourself and what can be taught? You should be looking at soft skills versus hard skills, right? Focus on those soft skills. It's really the personal attributes that can really help someone excel in your company. That's important.
And these are great points.
¶ Connecting with your employees and focusing on retention
If we can now, let's switch over to retention. Since you mentioned that will even be a bigger priority in 2024. What should companies be focused on when it comes to retaining their workforce?
I think companies now are not only competing with companies in their industries, but now you're competing with various industries. Uh, I mentioned this before as well, uh, where candidates, employees, they know their value. They know that there's an opportunity to take their capabilities as the market starts to shift. And, and I know that we've seen a lot of greats recently, right? We've gone through the great resignation, the great retention, the great reshuffle. It's exhausting.
I think there's a lot here, but we're also hearing about something called the great disconnect. And, uh, showing your employees they are valued is important. And again, meeting them personally and professionally. So I think when we think about something like the great disconnect, it is that gap that the employer and employee have today. And it's focusing on what people are looking for and what helps them feel connected.
So. Companies should really be taking this time to ask their people what is important to you and take it from there, right? Utilize things like engagement tools to gain feedback because then it shows that you're taking the time to listen and this can really help strengthen culture and really improve business outcomes.
Excellent. Well, this brings us to the end of this episode. Again, Kiran, thank you so much for joining us. Uh, I've, I've enjoyed having you here and I've taken a few notes while you were chatting. So I'd like to give a quick recap for our listeners, but please do keep me honest. Uh, correct me if I've missed anything here. So the first point, uh, the workforce is shifting in many different ways and businesses need to shift their mindset on how to, uh, They attract and how they retain talent.
That was point number one. Number two, embracing and catering to the generational movement and their priorities is key. The third point I noted was the non traditional approach to hiring will now involve a skills based hiring approach that will only help companies diversify their talent. And last but not least, really, companies need to continue to find ways to connect with their people to drive engagement and retention. So how did I do on those four points?
You did it, Jim. That's right. Uh, great points there. And I really appreciate you having me back on HRpreneur.
Presented by ADP, HRpreneur focuses on the entrepreneurs and the business drivers who are shaping the growth of their companies and positively impacting the lives of their employees. With each episode, we'll bring the experts to you. We'll answer your questions and help you think beyond today so you can discover more success tomorrow. As always, thank you for listening to HRpreneur. Be well, and we hope you'll join us again soon.