In 2014, DCR TrendLine has covered a large assortment of topics. In this article, we look back at the trends we focused on most heavily this year. This year, with global economic growth creating a new level of competition for talent, HR organizations transferred their focus from cost reduction to retention and engagement.
In 2014, an organization’s talent was repeatedly pointed to as the driving force behind business growth, innovation, transformation, and overall company performance. Economic uncertainty and globalization continue to influence the evolution of business practices, and industry practitioners are finding that they have to seek out robust solutions to address the complexities of managing a non-traditional workforce.
HR technologists and professionals estimate that HR technology will be an $8.1 billion dollar industry in 2015. Technology companies are continually releasing innovative products that provide HR organizations with cloud-computing capabilities, mobile access, social infrastructure, and the ability to better engage with talent for hiring and retention.
The Growing Use of Non-Traditional Talent
A report by the National Employment Law Project (NELP) and the National Staffing Workers Alliance (NSWA) states that about 2.5 percent of all American jobs are in the employment services industry, which includes staffing agencies, professional employer organizations, and employment placement agencies. According to Ardent Partners, nearly 45 percent of the world’s total workforce will be comprised of contingent workers by 2017. A recent study by MBO partners predicts that the number of independent workers in the U.S. will grow to just under 40 million in 2019.
HR organizations in 2014 have been exploring big data and data analysis as a tool to enable decision-making and workforce planning. In the growing field of talent analytics, recruiters are using predictive analysis to screen job candidates’ potential to become good employees.
Online Talent Platforms
Over the past few months, online talent platforms and freelance management systems have risen in usage as a means of finding and sourcing contractors and freelancers with specialized skills and experience. Ardent Partners expects that reliance on online talent platforms and freelance networks will grow by 96 percent over the next two years.
The Healthcare Industry
Extended longevity and an aging population, coupled with the large volume of Americans with insurance coverage under the Affordable Care Act (ACA), have caused an increase in the demand for all areas of health professionals. The Bureau of Labor Statistics (BLS) estimates that there will be at least 5.7 million new jobs in healthcare by 2020.
Generation Z Workers
Generation Z refers to the current largest generation group in the U.S. While many Gen-Zers are still in school, there are currently more than 11 million Generation Z workers in the North American workforce, making up 7 percent of total workers. By 2015, they will reach 20 million, 25 million by 2017, and 30 million by 2019. As roughly 30 million Baby Boomers retire, Generation Z will represent the greatest generation shift the workplace has seen.
As the usage of social media increasingly becomes the preferred method of connection and collaboration for most talent, recruiters are embracing social sourcing as a channel for recruiting top candidates. The Aberdeen Group’s 2013 Talent Acquisition Survey found that top-performing recruiters found social sourcing to be more effective than traditional means of recruiting for pinpointing viable candidates and building relationships with passive candidates.
All year long, the federal and state governments have been discussing the merits and risks of increasing the minimum wage. Several states have opted to institute higher minimum wage requirements than the federal governments, while other states are still voting on wage hikes. In the federal government, however, minimum wage is a gridlocked issue.
A survey by LinkedIn this year found that a strong employer reputation is a huge motivator for candidates to apply for a position. Over 56 percent of respondents believe that a company’s talent brand is the most important consideration for a new job.