Jeff McCarthy, Strategist in Employer Insights at Indeed, talked about the seven trends and four implications of talent retention and recruitment in the Internet age.
“I’m here to talk about innovation—innovating process, innovating thinking, and helping our employees innovate—as I describe the future of work,” said McCarthy at the outset of his thought leadership presentation at the 2016 Human Capital Leadership Forum held on September 28 in Los Angeles.
“In 2016, we’re at a new inflection point. We have the convergence of the Internet, ubiquitous computing, and new software every day that’s changing the way we work, the people we’re trying to hire, and how businesses function. With that in mind, I’m going to take you through seven trends that are shaping labor markets and where we stand now,” he explained.
“In 2016, we’re at a new inflection point. We have the convergence of the Internet, ubiquitous computing, and new software every day that’s changing the way we work, the people we’re trying to hire, and how businesses function.”
“The first trend is that every company these days is a tech company. Software is a key part of developing all the drivers of innovation,” he observed. “We did research involving 1.5 million software developers and discovered only 7% of them work at software companies. In the US, some of the most difficult positions to fill are these software and technology positions. The demand for software engineers will continue to expand and outpace that of other occupations. This lack of supply will slow our ability to grow,” he said.
The second trend is that specialized software is leading a highly specialized workforce with very specific skill sets, said McCarthy. “Productivity and business apps available in the Apple App Store grew 24-fold from 2008 to 2014. Every position, including maître ‘d, needs to have app experience. As a result of this proliferation of software and the specialization of roles, we have an average 1.5 million jobs listed on Indeed every day,” he said.
“Productivity and business apps available in the Apple App Store grew 24-fold from 2008 to 2014. Every position, including maître d’, needs to have app experience.”
“Today’s labor market is becoming two separate markets—one for skilled workers and one for everyone else,” said McCarthy. “This is the third trend. To afford to live in many big cities these days, you have to be a highly skilled worker. High- and low-skilled jobs are growing in the US. The challenge is to get more people to participate in the high-demand portion of the economy. Many US graduates aren’t prepared for technical roles—not as prepared as graduates from other countries,” McCarthy pointed out. “Our government and education systems need to address this.”
The fourth trend is that full-time jobs are being replaced by flexible alternatives. “After pay and location, the most important factor for a job seeker is flexibility,” said McCarthy. “Even candidates in these highly specialized roles are working remotely—29% of software developers work remotely, up from 25% last year. We need to increase flexibility to attract the workers we so desperately need in our organizations.”
The fifth trend is that highly skilled labor is a national resource that’s increasingly mobile. “In 2015, 8.1% of people around the world actively looked for jobs abroad,” said McCarthy. “Over 15% of clicks from residents of other countries looking for work in the US are for computer and math jobs, compared to 5% of clicks for domestic job seekers.”
The sixth trend is that where talent migrates, so do the smartest companies, and “Millennials are helping to build the cities to which employers will be moving,” noted McCarthy.
“Where talent migrates, so do the smartest companies, and Millennials are helping to build the cities to which employers will be moving.”
The Internet has changed not only how we look for jobs but how often we look for jobs. This is the seventh trend. “81% of people surveyed look at job opportunities, and 63% of people do this more frequently than once a month. The shock is that the job search never ends,” stated McCarthy. “65% of newly hired employees are back on Indeed within 91 days.”
McCarthy wrapped up with four implications of these trends:
• The skill shortage is permanent and will require education, policy, and immigration changes to resolve.
• Many chronically unfilled roles drive either revenue or innovation for US-based companies, causing a potential drag on national competitiveness.
• The US is a top destination for talent, which, in the Internet era, can be the foundation for job creation and international growth.
• To attract high-quality candidates, companies need to be more flexible and discuss flexibility on an employee-by-employee basis.
ABOUT JEFF MCCARTHY:
As a Product Evangelist with the Indeed Employer Insights Team, Jeff McCarthy pairs platform data with industry trend analysis to share Indeed’s story and bring the value of the company’s programs and solutions to life. He has 13 years of experience in sales and marketing, with a MBA from the University of Massachusetts.