Thursday, June 21, 2018
Blog

2018 Q2 European Quarterly Market Report

TAPFIN provides market trends as well as insight into the European contingent workforce as it evolves across Europe each quarter. Featured in this second quarter of 2018 are Global Trends, European Employment Outlook statistics and Legal and Regulatory updates in countries throughout Europe as well as regional and micro level labor statistics at a country level across a variety of metrics.

Download the complete 2018 Q2 European Quarterly Market Report.

In a fast-paced, unpredictable marketplace, organizations must be able to react quickly. Today, organizations increasingly rely on the contingent workforce, such as independent contractors, temporary workers, consultants and freelancers. The contingent workforce is scalable and flexible, which provides organizations with the agility they need to remain competitive.

But as the world of contingent work evolves, how can organizations keep pace with change? The key is for organizations to consult analyst insights and data. Through the ManpowerGroup Solutions and TAPFIN Quarterly Market Reports, organizations can access market intelligence on a local, regional and global scale and determine how trends and regulations may impact worker cost, performance and availability - putting the power to gain a quantifiable advantage in their hands.

Download the complete 2018 Q2 European Quarterly Market Report.

2018 Q2 Global Quarterly Market Report

ManpowerGroup Solutions provides market trends as well as insight into the global contingent workforce as it evolves each quarter. Featured in this second quarter of 2018 are Global Workforce Trends, Skills Demand by Sector Category, and Best Practices Emerging in Workforce Strategy as well as regional labor statistics and overviews.

Download the complete Q2 2018 Global Quarterly Market Report.

In a fast-paced, unpredictable marketplace, organizations must be able to react quickly. Today, organizations increasingly rely on the contingent workforce, such as independent contractors, temporary workers, consultants and freelancers. The contingent workforce is scalable and flexible, which provides organizations with the agility they need to remain competitive.

As the world of contingent work evolves, how can organizations keep pace with change? The key is for organizations to consult analyst insights and data. Through the ManpowerGroup Solutions and TAPFIN Quarterly Market Reports, organizations can access market intelligence on a local, regional and global scale and determine how trends and regulations may impact worker cost, performance and availability - giving organizations a quantifiable advantage.

Download the complete Q2 2018 Global Quarterly Market Report.

Skills Shortage Continues to Negatively Impact American Employers

Transportation, construction, retail trade, professional and business services, and manufacturing of durable and nondurable goods are among the industries most impacted by the skills shortage throughout the United States. While the Great Recession took millions of American jobs in a matter of months, regrowth of the economy is in its ninth year and despite the adding of jobs, it’s the labor pool that is now shrinking. It could potentially be decades before the labor pool recovers. This is due to the fact that another baby boomer retires every nine seconds and finding skilled workers has become increasingly difficult.

Unemployment is currently sitting at a 17-year-low of 4.1%, which is great news for workers based on the more robust wage growth projected to continue through the end of this year. The problem is that there simply are not enough workers to employ to meet the production demands of the U.S. demand for goods and services. From 2017 to 2027, the nation faces a potential shortage of 8.2 million workers, based on analysis from Thomas Lee, head of research at Fundstrat Global Advisors. This would be the most substantial shortfall in 50 years or more, based on percentage of the population.

The Q2 2018 ManpowerGroup Employment Outlook Survey found that employers expect to increase payrolls primarily in the Leisure & Hospitality, Transportation & Utilities, Professional & Business Services, Wholesale & Retail Trade, and Durable Goods Manufacturing industries. In Q1 2018 hiring intentions in the Transportation & Utilities sector nationwide were the strongest reported since the first quarter of 1982 when the survey started reporting seasonally adjusted figures. At the national level, employers in the Construction and the Durable Goods Manufacturing sectors report the strongest Outlooks for more than a decade. Employers in the Professional & Business Services sector report the strongest national Outlook since the sector was first analyzed nine years ago.

While these hiring intentions are great news for workers, skilled trade workers, drivers, laborers, accounting & finance staff, engineers, technicians and, restaurant & hotel staff continue to be some of the most difficult positions to fill, based on the most recent ManpowerGroup Talent Shortage Survey. The problem isn’t simply lack of skills, but lack of workers altogether. The labor force participation rate, a measure of the percentage of the adult population that is working or actively seeking employment, has fallen to 63% from 67% in 2000.

This labor shortage should not have come as surprise but the effects were delayed by the 2007-2009 recession, which created an employment slump that was longer than usual. During this time labor was inexpensive and abundant as the jobless rate was above 5% for over seven years. Many workers were forced to delay retirement due to loss of investments and retirement savings during the stock downturn. Employers did not have any incentive to invest in upgrading machinery or processing to boost productivity to prepare for tighter labor markets to come.

Labor is still fairly cost effective with average hourly earnings rising by an annual pace of below 3% for over eight years. Low wages are also preserved by the fact that few people are quitting their jobs to accept higher paid positions. This supports theories that there may not be a labor shortage, however, while some industries may not be affected as severely, while others are in dire need of workers. Simply taking an average across every industry in the nation cannot show where the shortages are being most strongly felt.

Many large retailers and food service organizations are announcing wage increases for customer facing positions to encourage an increase in applications to staff both existing and new stores. And while minimum wage is on the rise throughout the United States, in some areas to as much as $15 per hour based on new legislature that is beginning to take effect, most of the raises being referred to are for above-minimum-wage positions. For example, the average compensations for carpenters in Houston, Texas has increase 57% in just three years, based on wage surveys. While the average wage gains may seem meager, nonsupervisory and production workers who make up roughly 80% of the workforce are experiencing accelerated wage gains.

“We’re seeing solid, demand-fueled growth across the U.S. as the economy continues to strengthen and the labor market tightens at pace,” said Becky Frankiewicz, president of ManpowerGroup North America. "The competition for skilled talent is set to heat up and a just-in-time approach isn't always getting employers the skills they need when they need them. Now is the time to invest in people by upskilling America’s workers. We should also seek untapped talent sources with adjacent skillsets that can adapt to fill in-demand positions. At ManpowerGroup we accelerate people's careers offering skills development to help people access in-demand opportunities. Our MyPath™ offering has provided 120,000 U.S. associates with advice and opportunities to increase their skills and earnings. Upskilling the workforce and building employability will be the solution to the Skills Revolution.”

Employers are already combating this lack of skills availability by identifying the current and potential skills shortages in their own businesses. When opportunities to retrain and upskill existing staff are recognized and anticipated investment in training and the development of new skills can help to augment the skills gap without losing staff that have valuable industry experience as well as seniority as well as a positive relationship with their employer.

As the skilled workforce is projected to shrink over the next decade a focus on upskilling the labor force as many experienced workers retire over the next decade will decrease the skills gap and the effects of the talent shortage. However, manufacturing will likely experience a worker shortage of approximately two million by 2025, based on research from the Manufacturing Institute. Some organizations are having a hard time, even today, due to lack of available labor - both skilled and unskilled labor. The transportation industry has an existing shortage of some 51,000 truck drivers, a number expected to triple by 2026, per the American Trucking Associations. While construction continues to struggle to find enough skilled labor to complete jobs, labor costs and an availability are cited as problems by 82% of builders, according to the National Association of Homebuilders. This even as the pace of new home construction remains more than 10% below the normal rate.

As the US labor market tightens, employers report sustained demand for skilled workers, something a 3% increase in the working-age population by 2030 will not remedy. Upskilling the existing workforce while providing training and skilled trade education for the emerging workforce will be crucial in the skills revolution set to take place over the next couple decades in the United States. Finding the skills needed by employers will be the main concern for organization in the future as positions require more highly skilled workers and credentials for tasks such as commercial driving and subcontractors for construction. Without these skills, the labor force could swell and the United States will still suffer perceived talent shortages due to the lack of skills, not simply the availability of working age population. Efforts to engage existing resources and train employees who are currently working to complete legacy processes in encouraged. This practice allows employers to transition employees who have been upskilled for new processes while retaining their experience and internal knowledge of the business.

H-1B Visa Reach Cap within One Week for the Sixth Straight Year

The filing period for H-1B visas - temporary work visas for highly skilled foreign workers - began Monday, April 2nd, 2018, for the upcoming 2019 federal fiscal year. The H-1B program allows companies in the United States to temporarily employ foreign workers in occupations that require the theoretical and practical application of a body of highly specialized knowledge and a bachelor’s degree or higher in the specific specialty, or its equivalent. H-1B specialty occupations may include fields such as science, engineering and information technology.

The number of H-1B visas is capped at 85,000 (65,000 Bachelor's and 20,000 Master's degree holding applicants.) This year the cap was reached in the first week - for the sixth year in a row.

In February an announcement was made that USCIS would target H-1B petitions for third-party worksites. Later in March US Citizenship and Immigration Services reported it would suspend premium processing of H-1B petitions for the 2019 fiscal year.

Envoy Global, the maker of a platform to assist in securing global work permits, released a survey in February showing that 44% of employers say US visa applications have become more difficult, up from 35% in the previous year. It said 61% cited increased complexity as a primary factor increasing difficulty. The survey included 401 HR professionals from the US.

Additionally, recent report suggest that Indian IT companies in particular have dramatically reduced their H-1B visa filings. Other US based media state that the evidence suggests that the market demand for H-1B visas is falling. Searches related to the H-1B visa on one popular job posting websites are also decreasing for the thirteenth consecutive month indicating a trend rather than a temporary shift in the preferences of job seekers.

This difficulty and lack of interested related to the H-1B visa is leaving corporations to continue this struggle with a paradoxical labor market. Approximately 548,000 tech jobs remain open while unemployment in the technology sector hovers below full employment levels. There are many jobs open, but not enough workers to fill them.

If not to the United States then where is the talent going? Based on applications on a major job posting website, in 2018 it appears that the most popular destination for job seekers who conducted H-1B visa searches is Canada. A fast track program which allows highly skilled technology workers to enter Canada on a temporary visa is as little as two weeks is likely an incentive when compared to the process and timeline associated with the H-1B visa to enter the United States. How are employers able to augment their workforces despite the annual maximum of 65,000 H-1B visas set by congress for this year’s applications? We may be seeing more SOW (Statement of Work) engagements and an increase in the hiring of gig or informal workers to meet the demand for highly-skilled workers.

Despite reports of decreased interest in the H-1B visa program, applications for the visa still hit the 65,000 Bachelor’s Cap within just five days, confirms the U.S. Citizenship and Immigration Services (USCIS). Based on data from the Pew Research Center the top ten metro areas for H-1B Visa Approvals between 2010 and 2016 include:

  • New York – Newark – New Jersey, NY-NJ-PA [247,900]
  • Dallas – Fort Worth – Arlington, TX [74,000]
  • Washington – Arlington – Alexandria, DC-VA-MD-WV [64,800]
  • Boston – Cambridge – Newton, MA-NH [38,300]
  • College Station – Bryan, TX [37,800]
  • Philadelphia – Camden – Wilmington, PA-NJ-DE-MD [34,300]
  • Chicago – Naperville – Elgin, IL-IN-WI [29,900]
  • Houston – The Woodlands – Sugar Land, TX [28,900]
  • Atlanta – Sandy Springs – Roswell, GA [28,500]
  • San Jose – Sunnyvale – Santa Clara, CA [22,200]

What may surprise some is that the majority of approved H-1B visas do not go to Silicon Valley, or even California, but to New York and Texas. Along with other east coast metropolitan areas. This could potentially point to increased engagement of the informal or ‘gig’ workforce in California and areas west of Texas as well as an increase in SOW engagements as opposed to full time employment to fill highly skilled positions on a contract basis.

From C-Suite to Digital Suite

How to Lead Through Digital Transformation

LEADING THROUGH DIGITAL TRANSFORMATION

Digitization, data generation, automation, artificial intelligence, private cloud and public cloud, machine learning, Moore’s Law, Metcalfe’s Law and more. The impact of technology on organizations of every size and sector is infinite, and we know the pace of disruption is accelerating. By 2020, 30 percent of industry revenues will come from new business models. Rapid digital transformation is needed for forward-thinking businesses to capture opportunity and compete, and leaders must be ready to lead in the digital age.

We have been through technological disruption before but business cycles today are shorter. In the Industrial Revolution it took 50 years to redefine processes and take full advantage of technology. Now organizations have as little as six months to change, or not. Transforming quickly can make the difference between success and failure, and needs to be continuous for organizations to stay ahead and remain competitive. Digital transformation is by no means a one and done.

Download the Full Whitepaper

2018 Q1 Americas Quarterly Market Report

ManpowerGroup Solutions provides market trends as well as insight into the Americas metro area contingent workforces as they evolves each quarter. Featured in this first quarter of 2018 are Paid Sick Leave and Overtime Requirements, Legislation Banning Salary History, Marijuana Laws, Finance and Banking candidate availability, Technology candidate availability, Telecommunications candidate availability, and Manufacturing candidate availability for the United States, all by State. Employment outlook and candidate availability for Canadian  and Mexican Markets.

Download the complete Q1 2018 Americas Quarterly Market Report.

Also included are regional and micro level labor statistics, like the unemployment and labor force participation rates. Along with hourly pay by job title, for over 50 metro markets within the United States, Canada and Mexico.

In a fast-paced, unpredictable marketplace, organizations must be able to react quickly. Today, organizations increasingly rely on the contingent workforce, such as independent contractors, temporary workers, consultants and freelancers. The contingent workforce is scalable and flexible, which provides organizations with the agility they need to remain competitive.

But as the world of contingent work evolves, how can organizations keep pace with change? The key is for organizations to consult analyst insights and data. Through the ManpowerGroup Solutions and TAPFIN Quarterly Market Reports, organizations can access market intelligence on a local, regional and global scale and determine how trends and regulations may impact worker cost, performance and availability - putting the power to gain a quantifiable advantage in their hands.

Download the complete Q1 2018 Americas Quarterly Market Report.

2018 Q1 European Quarterly Market Report

TAPFIN provides market trends as well as insight into the European contingent workforce as it evolves across Europe each quarter. Featured in this first quarter of 2018 are Global Trends, European Employment Outlook statistics and Legal and Regulatory updates in countries throughout Europe as well as regional and micro level labor statistics at a country level across a variety of metrics.

Download the complete 2018 Q1 European Quarterly Market Report.

In a fast-paced, unpredictable marketplace, organizations must be able to react quickly. Today, organizations increasingly rely on the contingent workforce, such as independent contractors, temporary workers, consultants and freelancers. The contingent workforce is scalable and flexible, which provides organizations with the agility they need to remain competitive.

But as the world of contingent work evolves, how can organizations keep pace with change? The key is for organizations to consult analyst insights and data. Through the ManpowerGroup Solutions and TAPFIN Quarterly Market Reports, organizations can access market intelligence on a local, regional and global scale and determine how trends and regulations may impact worker cost, performance and availability - putting the power to gain a quantifiable advantage in their hands.

Download the complete 2018 Q1 European Quarterly Market Report.

 

2018 Q1 Global Quarterly Market Report

ManpowerGroup Solutions provides market trends as well as insight into the global contingent workforce as it evolves each quarter. Featured in this first quarter of 2018 are Global Workforce Trends, Workforce Demographic Evolution, and Key Labor Trends for 2018 planning as well as regional labor statistics and overviews.

Download the complete Q1 2018 Global Quarterly Market Report.

In a fast-paced, unpredictable marketplace, organizations must be able to react quickly. Today, organizations increasingly rely on the contingent workforce, such as independent contractors, temporary workers, consultants and freelancers. The contingent workforce is scalable and flexible, which provides organizations with the agility they need to remain competitive.

As the world of contingent work evolves, how can organizations keep pace with change? The key is for organizations to consult analyst insights and data. Through the ManpowerGroup Solutions and TAPFIN Quarterly Market Reports, organizations can access market intelligence on a local, regional and global scale and determine how trends and regulations may impact worker cost, performance and availability - giving organizations a quantifiable advantage.

Download the complete Q1 2018 Global Quarterly Market Report.

 

 

The Salary History Ban: What does this mean for Hiring Procedures?

Legislation Spreading Across United States to Ban Compensation History Questions from Hiring Process

Salary History Ban Trending

Trending this year on the regulatory front are state and municipal bans on interview questions regarding salary history or previous salary information. Driven primarily by efforts to curb the perpetuation of the wage gap for both minorities and women in the workplace, the banning of salary history related interview questions also bans organizations in certain areas from sharing previous salary information with other organizations.

More employers are reviewing policies around previous salary information and salary history questions during the interview and onboarding process. This part of many hiring processes is coming into focus as more areas pass legislation banning these and similar questions from employers hiring and onboarding procedures.

Many employers have taken it a step further to make new policies regarding salary history inquiry and previous employee information nationwide, or in some cases global, depending on their footprint. This relieves the burden of updating policy in certain areas as new legislature passes to ensure compliance and is in anticipation of similar bans being more widely adopted on a national and global level. However, there are other organizations making the same sweeping changes in order to embrace the motivator related to the elimination of the wage gap and its perpetuation based on previous compensation data of an individual versus the compensation that is appropriate for a position and its responsibilities.

TIMELINE OF CURRENT REGULATIONS

March 2017 - Pittsburgh banned city agencies from asking about candidates' pay history. The rule only effects city employees.
June 2017 - New Orleans banned inquiries about all city departments and employees of contractors who work for the city. The rule only impacts individuals who are interviewing to work for the city of New Orleans.
October 2017 - New York City ban on public and private employees from asking about a candidate's pay history.
December 2017 - Delaware ban on all employers from asking candidates about their salary history.
January 2018 - California ban on private and public employers from asking about a candidate's pay history
March 2018 - Puerto Rico ban on employers from inquiring about a candidate's pay history.
May 2018 - Philadelphia banned the salary history question for all employers. The rule was supposed to take effect May 23, but a judge halted it temporarily due to a lawsuit from the Chamber of Commerce.
July 2018 - Massachusetts prohibits all employers from inquiring about a candidate's pay history.
July 2018 - San Francisco bans employers from asking applicants (contractors and subcontractors included) for their compensation history. Employers also can’t disclose a current or former employee’s salary history without that person’s explicit permission.
January 2019 - Oregon ban on all employers for inquiring about a candidate's salary history.

Looking Forward

It’s expected that a minimum of 11 US states will consider passing similar legislation in 2018. Florida and New Hampshire have already drafted pay equity bills that include bans on disclosure of past salary history for consideration during their respective 2018 state legislative sessions. Many employers are creating new hiring process to exclude the practice of asking for or using past salary history during the interview and candidate selection process to get ahead of legislation that may be passed in more of the United States over the coming years.

Prompted by the growing demand for pay equality reviewing hiring processes and paperwork to see if everything is both consistent and compliant with new laws in the areas where organizations are hiring is more important now than ever. Pressure on legislators at all levels to implement pay equality inspired regulations is increasing. It’s only a matter of time before the majority of the United States and soon global markets are subject to similar restrictions.

What is next?

Review your hiring process and related documentation including applications, templates, emails and any other communications involved in the hiring process. Train existing staff who come into contact with candidates at any point during the hiring process. Refrain from releasing salary information for past or current employees to other organizations without written authorization from the employee. Review your local and state laws for any exceptions to this such as collective bargaining agreements or in cases where salaries are publicly available.

Marijuana: New State Regulations and How They Impact Company Policies

Medical and Recreational Marijuana

Adult-use recreational marijuana. This phrase has a lot of organizations examining their regulations compliance in many areas across the united states. While Marijuana is a controlled substance, according to the FDA, and the DEA, OSHA and Workers’ Compensation underwriters all support firm and consistent testing and regulation, employers are struggling with how to ensure that their cannabis policy is well-documented and legal. Terminate someone who fails a drug test but who is not under the influence at work in a state where marijuana use, whether medical or otherwise, is legal and you may find your organization facing allegations of discrimination.

Employee On-boarding Procedures

The same laws now cover employee on-boarding especially where employers drug screen as part of their hiring process prior to offering employment. Screen a candidate and deny employment based on a positive result for cannabis in a workforce market where either recreational or medical use is legal and discrimination allegations may follow. All the more reason to thoroughly review these policies and clearly state the organizations stance on use both where it is legal and illegal.

In California, for example, an employer maintains the right to disciple employees even when the use of marijuana is doctor recommended. Termination of an employee based on their use of marijuana, regardless of why they use it, does not violate the laws in this state related to workplace discrimination. Similar to policies that prohibit the use of alcohol during work hours, or appearance for work while under the influence of alcohol, organizations may have a consistent and firm no tolerance policy for marijuana.

Workplace Marijuana Policy

While some businesses, mostly creative businesses such as gaming or mobile app development or businesses that produce, distribute or sell marijuana, have no qualms with workplace marijuana use; There of a significant number of positions and workplaces where marijuana use (or being under the influence of marijuana) at work is inappropriate and even dangerous. Determining what workplace marijuana policy and implementation will look like is foreign territory for most organizations with workers in the eight states (and Washington D.C.) that have legalized marijuana use. However, these newly developed policies may set the precedence for workplace regulation and compliance for many organizations in the future as more states legalize marijuana use in 2018.

It’s important to note however, that no state laws currently force employers to tolerate on-the-job use. While Massachusetts and New York, and a few states, afford protections to registered medical marijuana users that may require employers to see if reasonable accommodations can be made in some circumstances. The majority of states do not require employers to make accommodations even for off-duty marijuana use. As these laws continue to evolve it’s crucial that employers have a clear understanding of the laws in the areas where they engage workers.

Developing Company Policy

Can I fire someone for using Marijuana at work? Can I decide not to hire a candidate because they failed a drug test for Marijuana? Can I allow medical marijuana use, but not recreational use, by my employees when they are off-duty? These are all questions that need to be answered while organizations are developing their own company policies on marijuana. This policy should also include what to do in the case of workplace use or on-the-job intoxication, which employers are not required to tolerate. If alcohol or marijuana use before or during work are not permitted there should be clear language in the company handbook stating these policies and the consequences while ensuring that the organizations policy is in compliance with states regulations.