October roundup: Strikes in the automotive and healthcare industries and solutions to navigate economic challenges with strategic workforce insights

Hello, everyone!

In early October 2023, Justin Lahart published an article in The Wall Street Journal on the resilience of the US labor market in the face of several economic challenges, indicating that even though the economy faces significant headwinds in the fourth quarter, employers continue to show confidence as evidenced by their hiring practices.

I would like to point out a few things that Lahart mentions. According to the author, there are some points I'd like to review in-depth: ?

Continued growth in the number of job openings?

According to the US Bureau of Labor Statistics, there were 9.6 million job openings in the US at the end of August, up from 8.9 million in July, showing employers were still looking to hire despite economic uncertainties.

Strong job market?

The job market appears strong but cooling. Hires are outpacing employment separations, and the number of people quitting remains high, indicating workers are finding new and possibly better opportunities. Layoffs are up from last year but still lower than pre-pandemic levels. But while the job market is currently strong, various economic pressures and historical precedents suggest this might not continue indefinitely. Therefore, careful and considered actions are needed from the Fed to maintain the economy’s health, especially in the labor sector.

Dive into the September 2023 edition of Global Labor Market Insights to unravel the market’s intricacies. From North America’s evolving job landscape to Europe’s surprising trends and enigmatic movements in Asia, we cover it all. Spotlighting the dynamic travel and tourism sector, this edition provides keen insights into the roles defining our times. Understand strategic shifts, the rising emphasis on human touchpoints, and the resilience of various industries to stay a step ahead in the evolving job market. Click here to access the full report!?

Existing economic concerns?

Justin Lahart also mentions several economic pressures, including ongoing strikes, the resumption of student loan payments, high gas prices, the risk of a US government shutdown, and high-interest rates, which could have provided employers a reason to reduce hiring or even cut jobs.?

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Speaking about strikes?

• We recently researched the Hollywood strike and suggested a need for businesses to strategically transform and adapt by understanding future skill demands, optimizing workforce structures, and preparing for an AI-driven future through upskilling and strategic planning.?
• Automotive industry strikes. At the beginning of October, the United Auto Workers (UAW) union escalated its strike actions, extending them to Ford’s massive truck and SUV manufacturing facility in Louisville, Kentucky. This resulted in 8,700 workers leaving their posts at an establishment that is responsible for approximately one-sixth of the company’s worldwide revenue. The UAW strike against Ford, particularly at their largest plant in Kentucky, highlights several key demands and concerns from the workers’ perspective: fair wages, job security, better working conditions, contract terms that include comprehensive benefits, commitments to future job security, and more.?
• As for the healthcare industry, there’s been a temporary return to work of striking healthcare workers at Kaiser Permanente without new contracts, marking the end of what’s described as the largest healthcare strike on record. The strike involved 75,000 employees and revolved around several core issues: primarily, wages, staffing levels, and outsourcing. Given the lack of agreement on these key issues, the union hinted at the possibility of another strike, signaling the depth of grievances and the willingness of workers to continue fighting for their demands.?

• Hiring resilience. Despite these challenges, employers are not reducing their workforce or pausing hiring. This resilience is partly due to staffing shortages in certain industries and an economic environment where the risk of recession seems less imminent compared to a few months ago.

Solutions for industries facing strikes?

On October 17, we hosted a workshop on data-driven HR, and several key takeaways could address the ongoing issues in the industry:?

People analytics (PA)? ?

The role of people analytics in navigating the challenges highlighted in the auto industry cannot be overstated. People analytics is a pivotal element in the following:? ?

• Understanding employee dynamics?
• Predictive insights for employee relations?

• Tailored training and skills development?
• Optimizing workforce distribution?
• Enhanced decision-making in negotiations?
• Employee retention strategies?
• Feedback and continuous improvement?

• Health and safety initiatives.?

Insights on the future of people analytics?

In October, the HRForecast team published an insightful series of dialogues from people analytics specialists featuring Dave Ulrich, Cole Napper, Madalina Banuta, Roxanne Laczo, PhD, Max Blumberg (JA) ????, Kathi Enderes, Stephanie Murphy, Ph.D., Marc-André Lafrenière, Ph.D., and Richard Rosenow:?

• Our conversation with Dave Ulrich centered around the critical importance of people analytics and its influence in corporate environments. We examined the integral role of people analytics in informed decision-making, effective talent sourcing, employee retention, and employee engagement.?

• In our dialogue with Cole Napper, we navigated the subtleties of people analytics and its growing relevance in contemporary commerce. We addressed its synergy with HR operations, prospective advantages, foreseeable challenges, and the influence of AI in people analytics, particularly in an era of escalating digital transformation.?
• Madalina Banuta traversed many themes pertinent to people analytics, encompassing its conceptualization, principal performance measures, data provenance, considerations around data confidentiality, ethical dilemmas, indispensable professional competencies, and the progressive trend towards anticipatory and advisory insights.?
• Our conversation with Roxanne Laczo touched upon the application of data in HR choices, the necessity for a robust statistical base, the PA apparatus and innovations in use, and the merit of appraising the people analytics strategies of rivals to foster enlightened business expansion.?
• Our discussion with Max Blumberg covered various facets, including ethical quandaries, essential skills, and the field’s fluid character amidst progressive technological advancements and shifting corporate demands.?
• Our exploration with Kathi Enderes spanned a spectrum of subjects linked to people analytics, including its delineation, breadth, organizational positioning, part in talent-oriented tasks, key indicators and KPIs, data sources, prospective roles, and the criticality of workforce forecasting in this sphere.?

• In our thorough analysis with Stephanie Murphy, we discussed the diverse dimensions of people analytics, including its function within corporations; its utility in talent procurement, retention, and staff involvement; the principal metrics and data origins employed; challenges and ethical issues that required expertise; and its impending influence on corporate resolution-making.?
• Our session with Marc-André Lafrenière explored the essential role and profound impact of people analytics in firms, discussing its characterization, extent, fundamental purpose, and contributions to talent sourcing, retention, and staff participation.?
• Our discussion with Richard Rosenow emphasized the paramount importance of the human touch in decision-making, particularly concerning data analytics and HR, underscoring that while technology augments efficiency, it shouldn’t overshadow the critical human aspect.

??? We’re assembling an all-encompassing e-book that will deeply investigate the future of people analytics — a compendium we’re confident will be a pivotal reference in your collection.

Strategic workforce development?

Integrating internal and external data can help companies assess the effectiveness of their training programs, ensuring employees have the skills needed to remain competitive. It can also help in strategic workforce planning, preparing for future needs, and reducing the likelihood of layoffs that can trigger unrest.?

Feel free to download the presentation and video recording of the workshop.?

Real-time market data analysis for negotiations?

Automotive companies and unions could leverage this data analysis to comprehensively view compensation, working conditions, and benefits in similar industries and regions. This information could be crucial during negotiations to set competitive and fair employment conditions.?

Predictive analytics for labor disputes?

For example, the insurance industry faced a talent crisis with 85,000 jobs lost, half a million professionals nearing retirement, and low interest from millennials, with only 4% of this generation considering insurance careers despite 67% of insurance companies planning workforce expansion and M&A activity declining since Q2 2022. Predictive modeling in the insurance industry can significantly assist with many organizational challenges. It’s a process that uses data and statistics to predict outcomes with data models. These models can be used to analyze current data and historical facts to understand employees and partners better and identify potential risks and opportunities for the company.

Skills gap analysis?

With the auto and healthcare industries evolving due to technological advancements, there’s a need for new skill sets. Key statistics reveal that by 2025, machines could replace 85 million jobs, but 97 million new roles may emerge; 50% of workers will need reskilling, with 40% requiring up to six months to transition and core skills changing up to 40%. Companies investing in skills-based strategies may see greater success, with 94% of employees likely to stay longer if a company supports their career development. Delve deeper into the nuances and benefits of adopting a skills-based talent strategy in our blog post.

Analyzing worker sentiment?

By continuously monitoring and analyzing worker sentiment, companies can gain insights into employee morale, the effectiveness of internal communications, and the potential for labor disputes. This proactive approach can help address issues before they escalate into full-blown strikes.

Future-proofed is a monthly dose of insights on people analytics, the future of work, and data-driven HR to help smart HR leaders stay ahead of the curve. Follow me on LinkedIn and get the latest insights to start future-proofing your organization today.