What We're Reading: New Skills, Talent and Employment Edition

Highlights
 
New research from the Strada Institute for the Future of Work and Burning Glass Technologies reveals that 43% of first-time job seekers were underemployed in their first job. Further, two-thirds of those job seekers remainunderemployed 5 years later, and 73% of that group is still underemployed after 10 years. Additional research notes that this underemployment can cost up to $10,000 per year.
 
Fortune released the 2018 Fortune 500 company list. Notable changes from last year include a 25% drop in female CEOs as 12 of the leaders resigned from their posts in 2017. Additionally, Walmart remained at the top, while Amazon broke the top 10 for the first time. There were also 17 newcomers, including Ulta Beauty, Coty, and Conduent. New York (54), California (49) and Texas (48) topped the list for states with the most Fortune 500 companies.
 
A growing number of Americans find themselves struggling to re-enter the workforce after taking time away from their careers. The term “returnships” has been coined to describe programs which seek to bridge the gap for individuals returning to the world of work. These employees understand the fundamentals and may only need some extra training to get back to work.
 
The U.S. Department of Labor announced $85 million in grants to support and expand YouthBuild, an education and occupation skill development pre-apprenticeship program for at-risk youth ages 16-24. Grants will range from $700,000 to $1.1 million across the country for organizations that aim to help students build skills in construction and other in demand industries such as healthcare, information technology, and logistics.
 
An article in Forbes discusses technology shifts changing the workplace. The article offers strategies to leverage job-training programs to help workers remain relevant including greater investment in remote learning, and the adoption of ongoing trainings rather than one-time seminars or workshops.
 
This HR Dive article offers five considerations as you rethink your onboarding process.
 
According to a new survey conducted by Robert Half, CFOs estimate that managers spend more than a quarter of working hours coaching underperforming employees. The findings prompted a series of recommendations for revised hiring procedures including offering above-average compensation and consistently reaching out to applicants’ references.
 
A survey from SHRM and The Koch Institute featured in HR Dive found that 82% of managers and 67% of HR professionals perceived no difference between the quality of work done by employees with criminal records and those without.




Corporate Learning and Development News
 
An article in Forbes discussing technological developments are changing the workplace and making current positions obsolete highlights ways to leverage job-training programs to help workers remain relevant.
 
New employees are twice as likely to leave the employer if the onboarding process is mismanaged. This HR Dive article offers five considerations as you rethink your onboarding process. Fortunately, new technology has flooded the market - alleviating some of the burden these processes place on HR. The stakes are high, too: new employees are twice as likely to leave if the onboarding process was mismanaged.
 
SHRM discusses the value of immediate feedback from apps like Disco, Achievers, and YouEarnedIt, all providers of real-time feedback. Organizations such as Intuit and Adobe have seen an increase in engagement through the integration of such feedback into the daily workflow of their employees. (SHRM, subscription required)
 
A growing number of Americans find themselves struggling to re-enter the workforce after taking time away from their careers. The term “returnships” has been coined to describe programs which seek to bridge the gap between such individuals’ skills and the skills employers are seeking. These employees understand the fundamentals and may only need some extra training to get back to work.
 
According to Chief Learning Officer, though “big data” analysis has historically been used to inform learning analytics there have been some challenges that can be addressed through the of use “small data”. Using small data allows individual circumstances to be taken into consideration and enables educators to tailor their practices to the needs of the student rather than generalize conclusions based on other large student populations.

 
Credentials, Hiring, and Applicant Tracking News
 
New research from the Strada Institute for the Future of Work and Burning Glass Technologies reveals that 43% of first-time job seekers were underemployed in their
first job. Further, two-thirds of those job seekers remain underemployed 5 years later, and 73% of that group is still underemployed after 10 years. Additional research notes that this underemployment can cost up to $10,000 per year.
 
A survey from SHRM and The Koch Institute featured in HR Dive found that 82% of managers and 67% of HR professionals perceived no difference between the quality of work done by employees with criminal records and those without.
 
According to a new survey conducted by Robert Half, CFOs estimate that managers spend more than a quarter of working hours coaching underperforming employees. The findings prompted a series of recommendations for revised hiring procedures including offering above-average compensation and consistently reaching out to applicants’ references.
 
As the labor market narrows, Fast Company discusses the growing trend among employers to consider qualifications other than a college degree when hiring new workers. According to the author, employers must consider trying something new, such as on the job-training and formal apprenticeship programs, in order to address the labor shortage.
 
new study from Korn Ferry indicates that salaries for recent graduates have remained stagnant since 2017. The analysis of 310,000 entry-level positions shows wage increases lagging behind the national inflation rate with salaries 2.8% above the national average for income.
 
New research from Indeed found that postings for interns have increased this summer while searches are down. Searches peak in March as students start to plan for their summers and reach a second peak in November as spring internships are posted. The U.S. Department of Labor recently changed its criteria for determining whether an internship should be paid by examining who benefits most from the intern-employer relationship; it is unclear if this has had an impact on demand for interns.
 
Glassdoor research has found that more than a quarter (28.5%) of job seekers are looking for jobs outside of their current metro locations – the most popular destinations being San Francisco and New York City. Additionally, the study found that the likeliness to move decreases by 7 percentage points for each decade that respondents age. Researchers also noted that company culture was a top factor in the decision to move over salary.

 
General HR News
 
Employers can encourage the sharing of wisdom across generations in the workplace according to an article in Harvard Business Review. Suggestions include providing daily opportunities to share wisdom, taking the time to recognize workers who have a lot to offer though they may be quiet, establishing a mutual mentoring program that recognizes knowledge and experience, and creating an ERG, or an Employee Resource Group dedicated to compiling resources based on collective wisdom. (Harvard Business Review, subscription required)
 
Employers must be attentive to total rewards programs in order to differentiate themselves from other workplaces, according to Human Resource Executive. A report from Bersin by Deloitte highlights that high-performing employers are more likely to use data and analysis to understand employee needs and value employee experience enough to align the value of total rewards into the company's goals.
 
HR Dive discusses the evolving role of augmented reality (AR), in the workplace. Companies have begun to incorporate AR into employee training, rather than solely being used to enhance customer experiences. Experts suggest that these tools can be critical to addressing businesses needs.
 
The “Ban the Box” movement seeks to prevent employers from asking applicants about potential criminal history. While the movement has been gaining traction in the past several decades, research on such policy changes have produced mixed results. In some cases, reports even indicate increases in racial discrimination as a result of the change.

 
Employer Partnerships/Company Innovation
 
The U.S. Department of Labor announced $85 million in grants to support and expand YouthBuild, an education and occupation skill development pre-apprenticeship program for at-risk youth ages 16-24. Grants will range from $700,000 to $1.1 million across the country for organizations that aim to help students build skills in construction and other in demand industries such as healthcare, information technology, and logistics.
 
Chick-fil-A announced $14.5 million in scholarships for Team Members, a $5.7 million increase since 2017. Team Members who apply can be awarded scholarships between $2,500 and $25,000 through the Chick-fil-A Leadership Scholarship or the True Inspiration Scholarship to pursue higher education at any institution, 2-year, 4-year, online, or vocational programs. The company also offers Educational Assistance Opportunities with partnerships with over 100 schools to receive discounts up to 30%. Scholarship requirements vary.
 
LinkedIn announced plans to launch an internal AI Academy to support employees in various levels of engagement with AI in their daily work. The instruction will be led by engineers and experts from LinkedIn’s core AI team.
 
The Goldman Sachs Foundation and Coursera announced plans to further their 10,000 Women Initiative, an initiative aimed at providing female entrepreneurs with a world class business education and global network. The partnership will make available an online education program free to all learners. The program will also offer women business owners, with at least 3 employees and $50,000 in annual revenue, a certificate upon completion.

 
Startups, Innovation, and Investment News
 
Collaborative software startup Parsable raised $40 million in a Series C funding round led by Future Fund with help from B37 and existing investors Lightspeed Venture Partners, Airbus Ventures, and Aramco Ventures. Parsable’s Connected Worker platform aims to bring high tech solutions to deskless industrial workers who have been working mostly with paper-based processes.
 
Recruitment app, Debut, raised $6.7 Million in a funding round led by British entrepreneur James Caan and Indeed’s co-founder Paul Forster, and London-based seed fund, LocalGlobe. Debut already has 60 corporate clients, including Google, Apple, and Barclays, and plans to use the newly secured funds to improve its recommendation algorithms for job-seeking graduates.
 
In a move expected to improve hiring efficiency, LinkedIn has changed its interface to allow for better applicant-position matching. The new How You Match algorithm will show applicants and employers how well the applicant’s experiences and qualifications match with the employer’s needs.
 
Vervoe, an interviewing platform, raised $3.5 million in a funding round led by SEEK with contributions from Jesse Hertzberg, former COO of Etsy, Zachary Lewy, Founder of Arrow Global Limited, and RusIan Kogan and David Shafer of Kogan.com. With this funding, the company will develop machine learning technology that compares employee performance with employers’ hiring requirements, as well as build the companies global team and customer base.

 
Macroeconomic Trends and Public Policy
 
A bill introduced in California could require more employers to provide harassment training to all employees. The current law states that companies with 50 or more employees are required to train supervisors only. The new bill, SB 1343, would require businesses with 5 or more workers to train all employees. While there is general consensus on the positive impact of such a bill, there are some concerns around the amount of time needed for the training, and the impact on smaller businesses who may not have the resources to develop the training.
 
This week the Supreme Court ruled in a 5-4 decision that employers have the right to insist that labor disputes be resolved individually rather than in class-action lawsuits. The ruling, which has been pending since October, adversely affects millions who have unknowingly signed arbitration agreements, as well as those who are members of labor unions.

 
Other
 
Fortune released the 2018 Fortune 500 company list. Notable changes from last year include a 25% drop in female CEOs as 12 of the leaders resigned from their posts in 2017. Additionally, Walmart remained at the top, while Amazon broke the top 10 for the first time. There were also 17 newcomers, including Ulta Beauty, Coty, and Conduent. New York (54), California (49) and Texas (48) topped the list for states with the most Fortune 500 companies.
 
In a series of interviews with 59 black female executives, Harvard Business Review worked to learn more about the causes and effects of black women being drastically underrepresented in the corporate sector. Being members of not one, but two disadvantaged groups has led to invisibility from the perspective of employers and forced these women to develop strategies such as taking on hypervisible roles in diversity and inclusion efforts in order to succeed.
 
Alphabet, the parent company for Google, offered a series of trainings, including one on machine learning, a subset of AI programing that learns as it continues to be used, for companies that have received investment dollars from Alphabet’s late-stage investment arm, CapitalG. Attendees included representatives from Lyft and AirBnb.