Talent Market Insights - October 2023

We are pleased to present the latest issue of the Talent Intelligence Monthly Digest, which looks into key trends and insights shaping the recruitment landscape, both globally and within Canada. Here's a snapshot of what you can expect in this edition:

• Balancing Remote and In-Person Work: Look at the significance of meaningful in-person interactions.
• Tech-Driven Recruitment in Canada: Obtain insights into the trends and preferred tools driving recruitment strategies.
• Top HR Priorities: Understand the latest focus areas for HR leaders.
• LGBTQ+ Inclusion in Finance and Tech: Learn about the initiatives being made in supporting LGBTQ+ employees and fostering inclusive environments.

?? Key Indicators ??

• Unemployment Rate: Canada: The unemployment rate was unchanged in September and stood at 5.5% for the third consecutive month, following an increase of 0.5 percentage points from April to July. (Statistics Canada)
• US: The unemployment rate was unchanged at 3.8% in September 2023, employers added 336,000 jobs, up from 227,000 in August. (U.S. Bureau of Labor Statistics)
• Employment Rate: Canadian employment rate in September decreased to 62.0% from 61,90% in August. (Statistics Canada)
• 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, and signaled that future rate decisions will be based on the latest economic signals. (Bank of Canada) Deposit Interest Rate in Canada was at 5.16% as of October 6. Prime Rate remained at 7.20% as of October 8.

The minimum wage in Canada has increased in six provinces on October 1, 2023:

• Ontario seeing the highest rise to $16.55 an hour.
• Manitoba follows at $15.30.
• Nova Scotia, P.E.I, and Newfoundland and Labrador have reached $15.
• Saskatchewan's minimum wage also rose but remains the lowest at $14.

However, the Ontario Living Wage Network states that a living wage should be $23.15, leaving a substantial gap even after the increase. Advocates caution that it may only be a temporary solution, and inflation could eventually consume benefits. A recent survey highlights that half of young Canadians are living paycheck to paycheck due to the rising cost of living.

?? What’s Trending ??

Top HR Priorities in Companies

In today's dynamic business landscape, HR leaders are facing evolving demands and priorities. According to Gartner and AIHR, the following key areas have emerged as top HR concerns:

• Talent Management and Development: Companies are investing in strategies to source, onboard, retain, and develop top talent, with an increased focus on upskilling and reskilling programs.1
• Employee Experience and Well-being: There's a heightened emphasis on creating a positive employee experience, encompassing factors like mental health support, work-life balance, and overall well-being.2
• Diversity, Equity, and Inclusion (DEI): Organizations are actively working towards building diverse and inclusive work environments, recognizing the impact of diverse perspectives on innovation and business performance.3
• Remote Work and Hybrid Work Models: The shift towards flexible work arrangements is a prominent concern, with HR departments adapting policies and practices to support remote and hybrid work setups.?
• HR Technology and Organizational Agility: HR leaders are increasingly looking to leverage technology to gain accurate insights from HR data. Agility in responding to changing business conditions and ensuring the workforce is aligned with organizational goals is a priority for HR leaders.?

1 AIHR - 11 HR Trends for 2024: Elevating Work

2 Gartner - How to Update Your HR Strategy for a Business-Aligned HR Function

3 Gartner - Evaluating Recruiting Functional Performance in an Era of Volatility

? Gartner - 5 Must-Have Labor Market Insights for Recruiting in 3Q23

? Gartner - Voice of the Candidate Survey Analysis (2Q23): Competition, Talent Attractors and Internal Mobility

Recruitment Technology Trends in Canada

Talent acquisition teams in Canada are increasingly leveraging advanced technologies to enhance their hiring and stay competitive in 2023 and beyond. Here's a summary of their strategies and the preferred tools:

• AI-Powered Automation: Canadian recruitment teams are increasingly adopting Artificial Intelligence (AI) and automation solutions to streamline various aspects of the hiring process. This includes tasks like resume screening, chatbot-driven initial candidate interactions, scheduling interviews.12?
• Candidate Relationship Management (CRM) Systems: CRM systems are being utilized to build and nurture candidate pipelines. By maintaining ongoing engagement with potential candidates, recruiters ensure a pool of qualified talent for future openings.12?
• Advanced Analytics for Informed Decisions: Predictive analytics tools are being employed to assess candidate suitability based on data-driven insights. This empowers recruiters to make more informed decisions regarding a candidate's potential fit within the organization.2?
• Mobile Recruitment Apps: Given the prevalence of mobile usage, recruiters are adopting mobile apps that allow candidates to apply for jobs and engage with the hiring process from their smartphones.23
• Video Interviewing and Virtual Assessments: Video interviewing tools are gaining prominence, facilitating remote assessments. Additionally, some teams are exploring virtual reality and augmented reality for immersive candidate experiences.3?

These trends collectively highlight a shift towards tech-driven recruitment strategies, emphasizing efficiency, data-driven decision-making, and inclusivity in the hiring process. Staying attuned to these HR priorities and embracing technological advancements will position us to navigate the evolving recruitment demands and build an agile workforce effectively.

1 AIHR - 11 HR Trends for 2024: Elevating Work

2 Gartner - How to Update Your HR Strategy for a Business-Aligned HR Function

3 PwC - Hopes and Fears 2023—Canadian insights

? Oracle NetSuite - 17 Recruiting Trends That Are Shaping 2023

? Innovature BPO - 6 Key Talent Acquisition Trends in 2023

? LinkedIn - Future of Work Report

? Workday - Strategies for Your Future-Forward Workforce

?? Inclusive Workplace ??

Returning the Office - Finding the Right Balance

In response to three years of flexible work, a new phase of structured flexible work is emerging. Studies consistently show that employees seek both flexible work and in-person connections. According to research by Microsoft, it's not about the number of days spent in the office, but rather about creating meaningful moments.

Key Moments for In-Person Connections:

1. Strengthening Team Cohesion: With organizations becoming more distributed, a large-scale return to the office is no longer feasible. Moments like team weeks and workshops help recharge social capital and reinforce connections.
2. Onboarding to a New Role, Team, or Company: Meeting managers and onboarding buddies in person within the first 90 days leads to better integration, feedback seeking, and relationship building. (See research result below)
3. Kicking off a Project: In-person interactions in the early stages of a project enhance alignment, spark innovation, and lead to more creative ideas.
4. Aligning with Organizational Goals: In-person meetings with organizational leaders offer employees a clearer understanding of the company's mission, goals, and culture. This connection instills a sense of purpose and commitment.

While flexible work is here to stay, finding the right balance between remote and in-person interactions is key. Teams should consider the type of work they do and identify crucial moments for in-person collaboration, all while weighing the benefits against associated factors like travel, expenses, and deep work requirements.

For a deeper dive into this topic, explore Microsoft's insights.

?? Market Trends ??

• Oct 10 - Ontario securities regulator is exploring the use of artificial intelligence in capital markets.
• Oct 6 - Job seekers in Canada face a competitive market as vacancies surge, urging the need for strategic approaches in the hunt for employment.
• Oct 3 - Some 80% of the US employers expect to give their employees more financial wellness benefits in 2024.
• Sept 27 - 50% of candidates who accepted job offers from May 2022 to May 2023 backed out for other opportunities, highlighting a decline in employee loyalty; employers urged to build early connections and maintain engagement post-offer.
• Sept 27 - Canada's Minister of Innovation launched a Voluntary Code of Conduct for Advanced Generative AI Systems, emphasizing principles such as accountability, safety, fairness, transparency, human oversight, and validity.
• Sept 25 - HR professionals should focus on addressing employee financial wellbeing, as 72% of working Canadians spend time at work dealing with personal financial matters, with one in five reporting an impact on their workplace performance.
• Sept 21 - IT professionals experiencing burnout are more likely to make errors leading to security breaches, with 83% admitting to such incidents, highlighting a concerning normalization of burnout in the industry.

“Do one thing every day that scares you.” – Eleanor Roosevelt