As the talent acquisition landscape continues to evolve with new dynamics, from shifting job market indicators to transformative recruitment trends. This edition offers you a comprehensive overview of key stats, emerging trends, and insightful articles to keep you informed. These insights can also be valuable as you partner with your HR colleagues and business leaders to navigate the ever-changing talent landscape.
🌟 Key Indicators 🌟
- Jobs Snapshot: The Canada’s economy added 40,000 jobs in August 2023, mainly in construction, professional, scientific and technical services. However, the population also grew by more than 100,000 people. Wages also accelerated, rising 4.9% from a year earlier. (Statistics Canada)
- Employment Rate: decreased to 61.9%in August from 62% in July. (Statistics Canada)
- Unemployment Rate: In Canada, the unemployment rate held steady at 5.5% in August 2023, as employment rose by 40,000 (+0.2%), driven by gains in the private sector. (Statistics Canada)
- In the US, the unemployment rate stayed at 3.8% in August 2023, as job growth was greater than expected, adding 187,000 jobs. (U.S. Bureau of Labor Statistics)
- Interest Rate: The Bank of Canada maintained its overnight rate at 5% in September, reflecting a cautious approach amid a slowdown in the Canadian economy, while hinting at potential future adjustments based on economic indicators and inflation trends. (Bank of Canada) Deposit Interest Rate in in Canada was at 5.13% as of September 8. Bank Lending Rate remained unchanged at 7.20% in August from 7.20% in July.
🔍 What do these numbers mean? The Canadian economy is showing signs of recovery from the pandemic, but still faces challenges such as population growth, labour shortages and inflation. The wage growth is a positive sign for workers, but it may also reflect the rising cost of living and the difficulty of finding qualified employees.
🌍 Did You Know? According to the World Bank,more than 99% of adult Canadianshave an account with a financial institution; the accessibility of banking services in Canada is incredibly high.
🔥 What’s Trending 🔥
AI in Recruitment
The survey conducted by Harvard Business Review Analytic Services reveals that organizations recognize the importance of talent acquisition (TA) but face various challenges in hiring effectively. Despite TA being a strategic priority for many organizations, only 28% believe their organizations are extremely or very effective at hiring the talent they want. Challenges include dissatisfaction with the speed and experience of the hiring process, outdated tools, and administrative burdens on hiring managers.
To address these challenges, organizations are exploring automation and AI in TA. Automation streamlines processes, reduces administrative tasks, and accelerates hiring, while AI is used for applicant screening, follow-ups, and personalization. Organizations that have adopted automation report its value in improving the TA process.
However, barriers to further automation adoption exist, including concerns about the cost of technology, leadership not embracing digital strategies, and challenges in making a business case for automation. Even so, 92% agree that organizations in their industry must invest resources in talent acquisition in order to remain competitive.
To navigate these challenges, organizations should identify areas where automation can have the most significant impact, actively listen to top recruiters and hiring managers, invest in TA technology, and ensure proper change management.
Skills-Based Recruitment
Skills-based hiring is transforming recruitment. This approach focuses on candidates' proven skills, not just traditional credentials. The result? A diverse talent pool, improved retention, and a boost in hire quality. Plus, it paves the way for long-term success by predicting market changes and proactively building skills.
Skills Gap Challenge: Amidst a competitive talent landscape,9 in 10 leaderspredict or face skills gaps in the next 5 years.
Skills-Based Hiring:76% use skills-based hiringto discover talent. 55% employ role-specific skills tests.
Benefits for Companies:
- Expansion of the talent pool, promoting diversity.
- Better quality hires with skills alignment.
- Swift culture of learning and innovation.
- Stronger employer brand and EVP.
More Reads:
- Taking a skills-based approach to building the future workforce – McKinsey & Company
- Skills-Based Hiring Is on the Rise – Harvard Business Review
- How to Get Started with Skills-Based Hiring – LinkedIn
- Why Skills-Based Hiring Is On The Rise – Forbes
- How Skills-Based Hiring Can Transform Your Organization In 2023 – Vervoe
Hybrid Workplace
New data from Robert Half shows 54% of hiring managers prefer a hybrid arrangement of remote and in-office workers, compared to 49% of professionals.
The survey also found that 38% of hiring managers and 28% of professionals see everyone working in the office as ideal.
The report is based on an online survey of 1,373 hiring managers and 1,148 workers conducted between May 4 and May 30, 2023.
According to new research from McKinsey, spending half of working time in the office is the ideal setup for hybrid work, as it gives employees the flexibility they crave without the isolation of working remotely full-time.
The research found that when workers spent at least 2 days a week together in person, it vastly improved mentorship, collaboration, trust between colleagues, retention and overall team performance.
🔭 Skills in Demand & Inclusive Workplace🔭
LinkedIn 2023 Most In-Demand Skills
Inclusive Workplace
Stats
- As of 2023, the boards of directors of Canada’s six largest banks constitute, on average, 43% women. (Canadian Bankers Association)
- About 41% of US employees say they would consider leaving their current job for a position with “significantly better” mental health benefits. (Software Advice)
Grandternity Leave
While 'grandternity' leave is still relatively uncommon, companies like Cisco Systems Inc. and HireVue Inc. offer paid leave for new grandparents. As Canadians work longer,paid leave concepts like this could become more popular. This trend aligns with extending benefits to older workers. Offering inclusive benefits can help retain experienced employees who want a break to recharge while preserving valuable knowledge.
Making Hybrid Work Fit with Your DE&I Strategy
According toMcKinsey & Company, these were among the groups that prefer hybrid work and said they were likely to leave if it wasn’t available:
- Younger employees (18–34 years old) were 59% more likely to leave than older ones (55–64 years old).
- Black employees were 14% more likely than their White peers.
- LGBQ+ employees were 24% more likely to leave than heterosexual ones.
- Women were approximately 10% more likely than men, and employees who identify as nonbinary were 18% more likely than men and women.
- Employees with disabilities were 14% more likely to leave than employees without them.
🌊 Market Trends 🌊
- Sept 8- LGBTQ dating app Grindr's return-to-office mandate led to almost half of its staff departing, raising concerns about the tensions surrounding the return-to-office policies amid the ongoing shift in work dynamics.
- Sept 6 -Normandin Beaudry, an actuarial consulting service, recently revealed its 13th annual Salary Increase Survey. The report found that Canadian workers could see an average pay increase of 3.6%in 2024.
- Sept 5 -The pandemic transformed work, introducing remote flexibility; however, the push for mandatory office return lacks alignment with worker preferences, highlighting the need for better communication and understanding of hybrid work's impact.
- Sept 5 -TikTok's "September surge" trend predicting a hiring rush might be overstated, given the labor market's current average of two applicants per job posting and declining worker confidence in job options.
- Sept 4 - US Bank leads as the most active recruiter in 2023, with almost 43,000 new job postings, although down 18% compared to the previous year, while Citigroup and Wells Fargo follow with reduced job postings by 44% and 50%, respectively, for the first eight months of the year.
- Aug 31 - CIBC reports a Q3 profit of $1.43 billion, down over 10% from the previous year, primarily due to a significant increase in provisions for bad loans.
- Aug 30 - National Bank of Canada's financial markets division saw Q3 earnings drop to $205 million, while the bank's overall Q3 net income reached $839 million, despite an 8.6% increase in expenses, driven by technology costs.
- Aug 18 -As student loan debt soars, companies like Amazon and Waste Management are attracting and retaining talent by offeringtuition reimbursement programs, boosting employee satisfaction and retention.
📜 Featured Articles & Reports 📜
Microsoft: Trends Shaping Canada’s Financial Services Industry in 2023
Financial firms in Canada deal with tough macro conditions, evolving tech, and regulations, driving the need to reinvent. While we can't control external factors, embracing digital transformation equips companies to navigate uncertainty swiftly.
Key Focus Areas:
- Data and AI Power: Smart data and AI usage for quick decisions and insights. TD Bank's Azure data estate and partnerships like London Stock Exchange Group's highlight data-driven innovation.
- Strong Cybersecurity: Data protection is critical. Solutions like Microsoft Sentinel and Microsoft 365 Defender, used by Equitable Bank, bolster cybersecurity.
- Digital Talent: Innovation thrives with digital skills. Collaborations with IGM Financial and First West Credit Union bridge skills gaps and nurture agile workforces.
- Sustainability Priority: Amid climate concerns, financial bodies emphasize responsible practices. Export Development Canada's Azure move showcases ESG-aligned efforts.
Click here to read the full article
“You may have to fight a battle more than once to win it.” – Margaret Thatcher