Tuesday, March 31, 2009

Diversity Recruitment: How Now?

By Lee Gardenswartz, Ph.D., and Anita Rowe, Ph.D., December 2006

Question: Despite progress, we continue to face challenges with recruiting a more diverse workforce, especially at higher levels. What strategies can we use to attract top talent from groups that are underrepresented in our organization?

Finding, attracting and keeping a diverse mix of talented employees can be a continuing challenge. Increasing the odds for success involves recognizing and addressing obstacles and expanding recruitment methods and opportunities.

Obstacles to Recruiting

The Community ImageRecruits evaluate more than a company; they consider whether a particular community is a good place to live. Individuals may be reluctant to move to an area if they believe that the schools are inadequate or that the real estate is overpriced or if they fear that they will not be welcomed.

Attitudes Within the OrganizationSome managers and employees may believe that diverse candidates are less qualified and that standards must, therefore, be lowered if they are hired. Diversity and quality must be seen as compatible, rather than mutually exclusive, to overcome this barrier.

An Emphasis on QuotasTalent, skills and qualifications need to be emphasized over numbers. Use of the word quota has a polarizing effect among staff and tends to create resistance. Focusing on numbers creates the perception that those who are hired are tokens rather than valuable employees with unique perspectives and experiences.

Lack of Understanding of the Strategic ImportanceDiverse employees need to be seen as a critical business advantage in order for managers and employees to support increased recruitment efforts. Explaining the connection between diversity and the goals and needs of the organization, such as increased market share, improved customer service or innovation is critical.

Time CommitmentIn the pressure to fill positions quickly, it is easy to succumb to time pressure. Finding new community pipelines, searching for a wider range of recruits and ensuring that candidate slates are diverse may take time. But using the same sources and schools and hiring the friends and relatives of existing employees, while faster, probably wont generally yield a diverse group of candidates. It is, therefore, important for organizations to commit additional time to access diversity.

Like Me BiasAnother obstacle is the human phenomenon of hiring those we perceive to be like us. Helping those who are in recruiting and hiring positions to recognize this potential for bias is one step. Another is getting multiple perspectives on candidates by making sure that hiring panels and recruiting teams are diverse.

Assimilation ModelA final barrier to recruiting and retaining diverse employees has to do with how the organization uses the differences people bring. If the culture requires people to adjust to existing methods and norms rather than using a variety of styles, perspectives and ideas to spark creativity and increase effectiveness, the benefit of diversity is lost. Whats more, forcing square pegs into round holes often causes people to leave, so turnover cancels out recruitment gains.

Strategies for Recruiting Diversity

Once obstacles are addressed, an organization can expand recruiting practices by adopting strategies, such as these, that have been used successfully by other organizations:

Partner Up. Have executives take an active role in assessing diverse talent by going with recruiters to conferences and job fairs. Seeing the talent available can help dispel the common myth that there isnt any out there.

Tap Insiders. Use the expertise and knowledge of members of employee affinity groups to help identify potential employees as well as sources and organizations from which to recruit. Individuals in these groups can suggest communication and outreach methods to reach a wider range of people.

Connect to the Community. Having leaders and managers participate in community events and organizations can build relationships and make inroads to targeted populations and enhance an organizations image as an attractive employer.

Involve Managers. Giving managers techniques to help recruit and holding them accountable for participating in recruiting activities increases commitment to diverse hires and widens an organizations reach through increased contacts.

Encourage Employee Participation. Satisfied employees are among the best assets. Build on this by rewarding employees for referring candidates.

Pay for Expertise. Offering compensation for expertise such as bilingual skills can help attract a wider array of employees.

Showcase the Community. Playing up the advantages that a community offers and giving information that corrects misconceptions about the community help attract candidates who may have been reluctant to relocate.

Review Language. Modifying the language in job ads, descriptions, titles and requirements to eliminate exclusionary language may widen a positions appeal.

Expand Communication Channels. Going beyond traditional media is another aid in reaching employees from communities where the word on the street might be relied upon more than the newspaper. Seek outlets in community and religious centers, local gathering spots and events that draw people from targeted groups.

Use the Talent Scout Approach. Some organizations have found that visiting the homes of targeted recruits, the way sports recruiters do, helps attract potential employees.

Identifying and then addressing the obstacles in your organization, and using a few new strategies, should help increase effectiveness in recruiting diverse candidates.

Lee Gardenswartz and Anita Rowe are partners in the management consulting firm of Gardenswartz & Rowe of Los Angeles.

CEOs and CFOs Register Record Pessimism on Economy

3/19/2009  By Maria Williams 
 
 

Two recent surveys from two different sources—one polling chief financial officers (CFOs) and the other chief executive officers (CEOs)—revealed record-breaking pessimism about the economy. In the most recent Duke University/CFO Magazine Global Business Outlook Survey, U.S. and foreign CFOs rated the economic outlook at a 40 on a scale of 1 to 100—a low in the history of the survey, which has been conducted for 52 consecutive quarters. Showing parallel grim results, the Chief Executive magazine's CEO Confidence Index reported that a stunning 95 percent of U.S. CEOs described current business and employment conditions as “bad,” which is the highest percentage of CEOs who have expressed such pessimism since polling began in October 2002.

The February 2009 CEO Index findings come from the most recent monthly e-mailed survey, to which 371 Chief Executive magazine subscribers responded.

The CFO findings, dated Feb. 27, 2009, asked 1,268 CFOs from a broad range of global public and private companies about their expectations for the economy.

Obama’s Honeymoon: Over Before It Began?

CEO findings. According to Chief Executive magazine's CEO Index, U.S. CEOs are already souring on President Barack Obama’s stimulus efforts.

CEOs expressed anger toward the finance executives receiving bailout money. Asked to weigh in on Obama's cap on executive compensation for the companies receiving Troubled Assets Relief Program (TARP) funds, 53 percent of CEOs favored caps on executive pay.

"You don't give the captain of the Titanic a bonus for hitting an iceberg and causing the ship to drown. CEOs receiving bailout money for their sinking ships should be held to the same standard," said John Chirikas, CEO of Horizon Steel Co., in a press statement. "The interference from government is alarming, but frankly, it is a direct result of the terrible mismanagement by the financial community and, sadly, will have severe ramifications for all of us."

Yet, despite favoring executive pay caps, 45 percent of CEOs polled said the executive caps would negatively affect or significantly negatively affect the performance of the companies receiving TARP funds, while only 20 percent of CEOs said the caps would have positive or significantly positive effects. Thirty-one percent of CEOs said the pay caps would have no effect on how well the companies performed.

CFO findings. The president’s stimulus plan hasn’t calmed CFOs' fears any more than it has reassured CEOs. Regarding the economy, their third largest external concern (after consumer demand and consumer markets/interest rates) is about the new administration and Congress. Roughly 32 percent of CFOs said that the economic stimulus actions taken to date have helped the economy, which matches the 32 percent who said the economy is worse off because of the stimulus actions. One-third said the stimulus efforts had no effect. More than half (53 percent) of CFOs said their companies would fare worse with a national health care system, compared to only 19 percent who said their businesses would benefit from such a system.

General Pessimism

CEO findings. With the exception of brief partial rebounds in August 2008 and January 2009, the CEO Confidence Index, which measures overall confidence in the market, has been hitting new “historic lows” since July 2008, when the index dipped to 92.6. (The index started at 100 points in 2002, when it was first tallied.) The CEO Confidence Index equals the average of its sub indexes: current confidence, future confidence, investment confidence and employment confidence.
Index.

Index

February 2009

January 2009

Monthly Change

CEO Confidence Index

39.2

51.2

-12

Current Confidence Index

49.1

62

-12.9

Future Confidence Index

15.9

27

-11.1

Investment Confidence Index

71.7

84.4

-12.7

Employment Confidence Index

23.1

35.3

-12.2


CFO findings. More than two-thirds of U.S. CFOs grew more pessimistic about the U.S. economy during the last quarter covered by the survey (December 2008¬¬-February 2009). On a scale of 0 to 100, U.S. CFOs placed the economic outlook at an all-time low of 40, and their European and Asian counterparts were likewise grim, rating their economies at 43 and 47, respectively.

“This is very troubling,” said Kate O’Sullivan, senior writer at CFO Magazine in a statement. “Throughout the history of our survey, CFOs have shown a remarkable ability to predict future economic conditions. They anticipated the current recession as far back as September 2007. Given the CFOs’ track record, the historic pessimism CFOs are currently expressing certainly indicates a tough road ahead in 2009.”

According with their overall pessimism, in all of their respective regions, U.S., European and Asian CFOs expect earnings, capital spending and tech spending to fall. Earnings are expected to drop by 22 percent at U.S. public companies, 11 percent in Europe and 9 percent in Asia. Capital spending is expected to decline 13 percent in the United States, 16 percent in Europe and 9 percent in Asia. Tech spending is expected to diminish by about 6 percent in all regions, and marketing and advertising spending is expected to drop by more than 7 percent in all regions.

The Outlook

CEO findings. Over the next quarter, 69 percent expect the economy to worsen, and 77 percent expect unemployment to rise. Each of these statistics on future confidence marks the second worst rating in its area since the CEO Index polling began. The worst rating for future confidence in the economy was set in December 2008, and the worst rating for future confidence in employment was set in November 2008.

"These low levels of confidence are unprecedented," said J.P. Donlon, editor-in-chief of Chief Executive magazine. "Not only are CEOs strongly bearish, they do not expect a turnaround anytime soon."

CFO findings. CFOs don’t anticipate things getting any better any time soon either: A mere 35 percent of CFOs expect the U.S. economic recovery to begin in 2009. Most U.S. CFOs expect recovery to begin in 14 months; most European CFOs expect 16 months until recovery begins; and most Asian CFOs expect 13 months.

Maria Williams is a staff writer for SHRM Online.

Wednesday, March 18, 2009

Staffing Industry Analysts Cites Top 20 Industries for Job Growth

LOS ALTOS, Calif., March 3, 2009 /PRNewswire via COMTEX/ -- Federal Government, Coal Mining and Hospitals all have seen unprecedented growth in the last twelve months according to a new report being published this month by Staffing Industry Analysts, the premier provider of market intelligence about the contingent workforce.

Among the major highlights in Staffing Industry Analysts' Where Employment is Still Booming report is the fact that there is high demand for workers in a number of different industries, in spite of the economic downturn we are all experiencing.

"From our analysis, during the last 12 months approximately 600,000 jobs were added to the economy in these high growth sectors," stated Jon Osborne, Director of Research, Staffing Industry Analysts. "Staffing Industry Analysts does research and analysis on the temporary labor market, however we thought it was important to highlight the growth in the traditional employment market. Temporary staffing is the biggest loser in terms of employment. Temporary labor has lost more than 500,000 jobs in the last twelve-months," Osborne went on to say.

Industries with high demand include:

1. Federal Government     
2. Coal Mining
3. Hospitals
4. Educational Services     
5. Offices of Physicians     
6. Home Health Care     
7. Other Ambulatory Health Care     
8. Pipeline Transportation     
9. Other Social Assistance     
10. Mental Health, Elderly Community and     Other Residential Care Facilities

(source:marketwatch.com)

Staffing Industry Analysts Cites Top 20 Industries for Job Growth

LOS ALTOS, Calif., March 3, 2009 /PRNewswire via COMTEX/ -- Federal Government, Coal Mining and Hospitals all have seen unprecedented growth in the last twelve months according to a new report being published this month by Staffing Industry Analysts, the premier provider of market intelligence about the contingent workforce.
Among the major highlights in Staffing Industry Analysts' Where Employment is Still Booming report is the fact that there is high demand for workers in a number of different industries, in spite of the economic downturn we are all experiencing.
"From our analysis, during the last 12 months approximately 600,000 jobs were added to the economy in these high growth sectors," stated Jon Osborne, Director of Research, Staffing Industry Analysts. "Staffing Industry Analysts does research and analysis on the temporary labor market, however we thought it was important to highlight the growth in the traditional employment market. Temporary staffing is the biggest loser in terms of employment. Temporary labor has lost more than 500,000 jobs in the last twelve-months," Osborne went on to say.
Industries with high demand include:
    1. Federal Government     2. Coal Mining     3. Hospitals     4. Educational Services     5. Offices of Physicians     6. Home Health Care     7. Other Ambulatory Health Care     8. Pipeline Transportation     9. Other Social Assistance     10. Mental Health, Elderly Community and Other Residential Care Facilities
(source:marketwatch.com)