21 st Century Business Services
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1 2013 WIA Statewide Meeting 21 st Century Business Services Presented by Melanie Arthur Greg Newton Associates 1
2 Workshop Topics 1. Delve into some current challenges and trends in human resource operations -- to know what your customers and partners are focused on. 2. Discuss strategic considerations for business service planning -- development and improvement of business services. 3. Brief review of business needs, in general, to set context for assessment of current and potential new business services. 2
3 Slow-Paced Economic Improvements 3
4 2013 Hiring Outlook Source: Manpower Employment Outlook, Q
5 2013 Hiring Outlook Small Business Hiring for or fewer employees 19% plan to add full-time, permanent staff in 2013, up from 16% in 2012; 6% plan to reduce, up from 3% last year. 250 or fewer employees 24% plan to add full-time, permanent staff, up from 20% in 2012; 7% plan to reduce headcount, up from 4% last year. 500 or fewer employees 24% plan to add full-time permanent staff, up from 21% in 2012; 7% plan to reduce headcount, up from 4% last year. Temporary and Contract Hiring 40% plan to hire temporary and contract workers in 2013, up from 36% Among these employers, 42% plan to transition some temporary workers into full-time, permanent employees over the next 12 months. Source: CareerBuilder s 2013 U.S. Job Forecast 5
6 What are your business service goals? Many areas have business strategic goals, customer goals Challenge: Create and operate workforce development with strategic, customer and service goals. WIB Services to Businesses Survey Results, NAWB,
7 Business Service Options Discontinue. Continuously improve. Start. 7
8 Sample Business Service Goals to Adopt Discontinue Any business services, processes, partnerships and/or service delivery methods that are no longer: in demand, effective, worth return on investment, or otherwise not making a significant/positive contribution to serving businesses. Continuously improve Three services annually, of those deemed most important to business from current list of services. Start Two new services to business annually, based on priority of current needs. Development options include: Co-sponsor delivery of (outside) existing services; Adopt and customize services with success indicators from other workforce areas (in region, in state, across nation); Partner with others (including businesses) to develop; Contract for delivery; Create/develop and implement internally. 8
9 Summary of HR Professionals Concerns Optimistic, yet tentative Current employee challenges: Biggest concerns, least investment Leadership development Engagement Retention Morale Recruitment focus: Major concerns, most investment Rapid technology adaptations Connecting, friending and tweeting Employee referral systems Hiring employed talent Human Resource Drivers Globalization Competition The connected workforce More complex business issues Today s HR leader has to think like an economist Deloitte Talent
10 2013 Employee Perspectives 86% intend to seek new position Source: Right Management Lack of career progress is top reason for leaving job. 10
11 Sources of New Hires 42% of all positions were filled through internal movement and promotion. 11th Annual CareerXroads Source of Hires, March
12 Sources of External Hires Employers: *All sources include hires likely to be attributed to social media and employee referral influences. 11th Annual CareerXroads Source of Hires, March
13 Social Recruiting Trends For recruitment: Hired candidates identified through social media: Through which of these networks have you hired? Jobvite Social Recruiting Survey
14 Social Recruiting Trends Since implementing social recruiting, how have the below changed? Jobvite Job Seeker Survey,
15 Recruitment 2013: The Trends to Watch Creating the right candidate instead of waiting for one Employers scouting employed talent Employers shopping for recruitment support on a project basis Recruiters = consultants, partners The mobile platform dominates Improving the candidate experience Online candidate assessment LinkedIn is becoming primary tool Facebook s job board business Job boards continue to decline Improved sourcing of passive talent Boomerang hiring Diversity is a business imperative Sources: 10 Projections for the Recruitment Industry in 2013, by Curtis Rogers, CKR Interactive, and Next Year s Recruiting Headlines, Trends, and Next Practices by Dr. John Sullivan, 15
16 Job Search 2013: More Technology Trends to Watch Mobile Technology The Twesume Video Interviewing Mobile Interviewing Job Search Campaigning Sources: 2013 Recruitment Technology Trends Mobility, by Genevieve Phillips, recruiter.com, and, 4 Ways Technology Is Changing the Job Search, by Josh Tolan, ways-technology-is-chan_b_ html 16
17 Job Search 2013: Don t Forget About Recent Changes Applicant Tracking Systems Employer Databases Online Company Research Online Candidate Research Competition and the shifting economy Sources: 5 Critical Ways Job Search Has Changed -- And How To Make The Most Of It, 17
18 Business Solutions Service Category Names Information Services i.e., regulations; wage date; industry estimates and projections; labor force demographics; occupation estimates and projections Recruitment Support i.e., vacancy writing and advertising; recruitment facilities and hiring events; access to job seekers/skill bank and job matching; customized hiring process support; incentives for hiring non-traditional workers (tax credits); etc. Skills Development i.e.,on-the-job Training; Train to Advancement OJT; Customized Training (pre/post); incumbent worker training; apprenticeship, etc. Worker Readiness Development i.e., work readiness training; basic skills training and certification; pre-employment certified vocational and occupational training; supported work, internships, work experience; etc. Retention Support (note: area needs the most product development) i.e., Ladders/Lattices/Paths, Skill Based Advancement, etc. Economic and Business Stabilization Services i.e., layoff aversion, Rapid Response, layoff Support Outplacement Services (Rapid Response); individual layoff claim processing Business Development i.e., human resource services, brokering and navigating other business services, economic development services, etc. 18
19 Types of Business Services Available WIB Services to Businesses Survey Results, NAWB,
20 Types of Human Resources Services Available WIB Services to Businesses Survey Results, NAWB,
21 Information Services Increase access and/or distribution Unbundle to feature most useful: i.e., wage data, and then cross-market others; distribute list of bookmarks by data and source Promote wage data links embedded in other services: i.e., job vacancy writer (careeronestop.org) Forward LMI newsletters; customized local indicators; connect to local/regional snapshots of economic news Distribute special reports : industry and occupational projections, staffing patterns Produce and send regional/local press releases with data releases Labor and regulatory law poster distribution Host regional/local data users training/events/seminars 21
22 Information Services Increase website access and/or distribution Resource: 22
23 Information Services: Sample Seminar Titles Ten Hot Topics in Human Resources Loyalty in Tough Times Improving Employee Morale Managing a Multi-generational Workforce Motivating Employees Managing Your Online Presence -- Social Media and More Social Media - Finding a Balance Between Workplace Tool and Liability Managing Performance: Avoid Pitfalls Trends in Employee Benefits Diversity Issues in the Workplace Emotional Intelligence: Tools for Top Performance Conflict Resolution in the Workplace Hiring the Best and Weeding Out the Rest Making the Most of Your Managers Developing Your Brand Preventing Sexual Harassment Labor Law Update Wage and Hour: What Employers Need to Know Managing Disability and Accommodation Requests Disciplining Employees Managing Leaves of Absence Injury and Illness Prevention Program Employee Handbooks Communicating for Results Financial Strategies to Grow Your Bottom Line Understanding Workers Compensation Tax Credits to Help Businesses Updates on Health Care Reform OSHA Training How to Manage Unemployment Insurance Costs How to Take the Terror Out of a Termination Excelling as a First-Time Manager Pre-Employment Screening and Testing Customer Service Excellence Source includes: California Employer Advisory Committees 23
24 Developing Information Services Based on Need More Seminars, Tip Sheets, Videos, Website Links and Staff Knowledge related to: Current employee challenges: Engagement, productivity, morale Retention of talent Leadership development Talent shortages, technical skills Recruitment focus: Rapid technology adaptations Connecting, friending and tweeting Employee referral systems Company internet image 24
25 Recruitment Services Is the service: recruiting or matching? 25
26 Some of the Available Talent is Currently Employed 41% of employed jobseekers are overqualified. Jobvite Job Seeker Survey,
27 Improving Business Recruitment 1. Promote candidate market trends to employers. 2. Ensure candidate recruiting and searches based on multiple, related job titles. 3. Activate virtual recruiter for regular searches on multiple titles. 4. Job development with companies that match your talent bank, individual job seekers. 5. Continuously improve recruitment tools and techniques (e.g., writing job vacancy announcements). 6. Improve job development and candidate referral processes -- that lead to business relationships. 27
28 Candidate Market Trends Summary of job duties Detailed job description Supply and demand data Education and work experience, including summary data on employer requirements and candidate histories Wages -- for advertised jobs and candidate requirements Future employment outlook Nature of the work Job requirements: skills, knowledge, interests, abilities, work styles, licensing and more > Services for Employers; > Recruitment Services; > Candidate Market Trends 28
29 Supply and Demand: First-Line Supervisors/Managers of Retail Sales Workers 89 Job Candidates 126 Job Openings May 2011, Rhode Island (statewide) 29
30 Recruitment Option: Expand Your Search to Related Occupations = 721 Candidates Sales Managers Food Service Managers Training Specialists Personnel Recruiters 30
31 Employers With Largest # of Job Openings See list of other hiring employers View individual listings (click on the Job Openings #) View job information details Access links to other relevant data 31
32 Recruitment Services Reported as an increasing trend Survey findings indicate one of the highest planned increased investment in 2012; 69% compensate employees for referrals; 84% of those with significantly increased hiring pay employees for referrals Preferred by employers based on quality of referrals, receiving highest ranking of all sources 8.6 out of 10; above internal transfers, direct sourcing and social networking How Can You Support Employee Referral Systems? Business Consultant: Learn about how to create and improve them. Recommend use for most difficult to fill positions. Offer seminars to teach current employees how to recruit and network. Advise on how to prioritize, reward, and instill talent acquisition into culture. 32
33 Benefits of Referrals as Candidate Source Which of these are true about hires from referrals compared to those from other sources? Jobvite Social Recruiting Survey
34 Recruitment Services: Job Vacancy Support Increase quality of applicants with well-written job vacancy listings 34
35 Retention Support and Services Multiple surveys show retention as top current concern Other surveys confirm that large numbers of employed workers are looking for new jobs How Can You Help? HRExecutiveOnline survey, 9/10; 35
36 Retention Services: Why Develop/Improve? According to the U.S. Department of Labor, it costs one-third of a new hire's annual salary to replace them. Recruitment costs Training costs Lost productivity Lost sales costs New hire costs Source Society Human Resource Management Coca-Cola Retailing Research Council American Management Association Cornell University Hotel School Superb Staff Services Hay Group study Turnover cost, $8/hr. employee $3, $3, Major study - turnover in the supermarket industry: estimated total direct and indirect costs of replacing a cashier earning $6.50 per hour ($3,637). $4, The cost of hiring and training a new employee can vary from 25% to 200 % of annual compensation. $5, Front desk employee $8, For a call center. the most conservative directcost estimate of replacing each employee, which includes costs associated with recruitment, orientation, training, and ramp-up speed, was 50% of the annual salary. $8, The cost of replacing workers ran ge from six months of an hourly worker's salary to 18 months salary of a professional employee. Compilation of Turnover Cost Studies, Sasha Corporation 36
37 Support and Deliver Retention Services and Strategies 4 4 Increasing employee communication Additional training and development Assist employees w/career development Offer current services to businesses for employees 4 Improving work/life policies, initiatives 4 Changing compensation Offer salary and benefit information for comparison Enhancing employee benefit offerings None of the above Other HRExecutiveOnline survey, 9/10; Melanie Arthur GregNewtonAssociates.com 37
38 Retention Services: Advancement Strategies Career Pathways, Ladders, Lattices to Support Advancement 38
39 Developments and/or Improvements in Other Business Services? Skills Development Worker Readiness Business Development Improving and expanding on-the-job training and customized training; increased short-term training options and delivery; online no-cost training Basic skills certifications ; National Career Readiness Certificate (ACT); National Work Readiness Credential; Survey of Work Readiness Certificates: Expanded HR services; increased layoff aversion; targeted small business development; entrepreneurial business start up training and support 39
40 Other Business Services WIB Services to Businesses Survey Results, NAWB,
41 Focus Efforts on Recruitment Process Improvements Receiving and Reviewing Job Orders Supressed or Unsupressed Quality of Job Orders Content, wages Matching Process Reviewing Candidates Customized Recruitment Events Job Fairs On-site Employer Events Other Services: WOTC The four major complaints with Career Center recruitment services: 1. Wrong One 2. No One 3. Too Long 4. No Contact 41
42 What Are Your Business Service Goals Discontinue Continuously improve Start 42
43 Notes Your seminar leader... Along with her colleagues at Greg Newton Associates, Melanie Arthur is a national consultant in the creation and evolution of effective workforce development systems. Her work features outcomes that are demand-driven and aligned with economic development -- as well as being responsive to customers and leading to program performance success. Melanie has worked with and trained more than 50,000 public and nonprofit professionals from across the country -- in more than 40 states. She is best known for work in three areas: optimal Workforce Board development and strategic planning, unique approaches to building relationships with businesses, and her innovative ideas for one-stop integration. 43
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