Earlier this month, Shiftgig CEO and co-founder Eddie Lou presented at the 2017 Engage Bullhorn conference in Boston. Created around the idea of helping businesses connect with leading recruiting and staffing practitioners, this year’s conference attracted more than 1,000 staffing professionals. Speakers for the event were also notable and included industry leaders such as:
- Steven Levitt, best selling author, Freakonomics
- Joyce Russell, president, Adecco staffing
- Art Papas, CEO and Founder, Bullhorn
Sponsored by Bullhorn, a cloud computer software company that provides relationship management tools to staffing companies, the event for 2017 took place over three days. Day two featured Shiftgig’s very own Eddie Lou who spoke to attendees on the gig economy, trends in the future of work, and the shift to an on-demand workforce.
Here are a few of the key takeaways from Eddie’s presentation, as we look ahead at the staffing industry trends in 2017.
Today’s worker holds the power
Talent is becoming increasingly scarce in the US. With more than one-third of baby boomers having already left the workforce, the Total Labor Force Rate is among the lowest it’s been since the 1970s. Yet, there are still just as many, if not more consumers – just fewer workers.
Here are a few key statistics:
- The average company is understaffed by about 13 percent.
- According to Indeed.com, each vacant position can cost an average of $500 per day in lost productivity.
- It takes more than two months on average to fill an open position, making the current labor shortage costly – both at an employee and customer service level.
- According to SHRM, the average cost to hire a professional worker can be upwards of $4,000.
The performance review is dead
In the last two years, major companies like GE, Accenture, Adobe, and Deloitte have gotten rid of their annual performance reviews and rankings. A 2014 Gallup poll reported that fewer than one-third of employees — 31.5% — are engaged in their current job. So clearly, the system is broken. And perhaps the gig economy has the answer.
So what are GE and Adobe doing instead of standardized, yearly reviews? They’re looking to the gig economy to see what might be working for today’s workforce. And what seems to be working is frequent – but standardized – feedback.
Furthermore, Millennials are seeking constant feedback — they value five minutes or informal career mentoring vs a formal review process.
Your digital footprint is today’s resume
Today, social media profiles often serve as a record of accomplishments — or lack thereof. And since it’s easier than ever before to find information about a potential candidate online, reports show that companies are in fact seeking out that information.
A 2016 CareerBuilder study found that 60 percent of employers use social networking sites to research job candidates – that’s up from 52 percent in 2015, and just 11 percent in 2006. And what are employers doing with that information? More than a quarter of them have found some piece of information online that has caused them to not hire, reprimand, or fire an employee.
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