Generative AI on the Gartner Hype Cycle: is the AI hype finally dying down?

It very much became a where when you moment when OpenAI first launched ChatGPT on November 30, 2022. Within five days, the tool had already amassed more than a million users, the largest total in a short number of days, before being leapfrogged by Instagram’s rival to Twitter (X), Threads, a few months later. Since its inception, ChatGPT still regularly rakes in approximately 1.6 billion visitors per month. Though June, 2023 became the first month 

So the question beckons: could the AI Hype, after eight manic months of speculation and impact, finally be dying down? But AI should be different, surely? After all, trillion-dollar companies such as Alphabet and Microsoft have declared it the best thing since sliced bread, while venture capitals have taken en masse. 2023 is already a record year for investment in generative AI startups, with equity funding topping $14.1B (approximately €12.2B) across 86 deals, as of Q2 of 23.

Enter the Gartner Hype Cycle

As simply is the case for many types of innovation, some simply die. Hype enthousiasts, for years, have taken to the Hype Cycle developed by Gartner to follow the rise (and fall) of technology. Introduced in 1995, Gartner’s Hype Cycle models the journey of innovation, from initial excitement to disillusionment, culminating in a comprehensive understanding of a technology’s role. 

Introduced in 1995, Gartner’s Hype Cycle models the journey of innovation, from initial excitement to disillusionment, culminating in a comprehensive understanding of a technology’s role

The Hype Cycle illustrates a recurring pattern seen in emerging technologies and innovations. While Gartner’s Hype Cycles often focus on specific technologies, the pattern applies to broader concepts like IT methodologies and management practices. Elements on the Hype Cycles are labeled as technologies, yet they also encompass higher-level trends such as strategies, standards, and competencies. Gartner annually produces 90+ Hype Cycles across technology, application, information services, and industry domains.

Where’s AI on the Hype Cycle? 

Fast forward to the Hype Cycle for Artificial Intelligence, updated by Gartner in August 2023. “Generative AI is dominating discussions on AI, having increased productivity for developers and knowledge workers in very real ways, using systems like ChatGPT”, Gartner adds. “This has caused organisations and industries to rethink their business processes and the value of human resources, pushing GenAI to the Peak of Inflated Expectations on the Hype Cycle.”

Source: Gartner

“The AI Hype Cycle has many innovations that deserve particular attention within the two-to-five-year period to mainstream adoption that include generative AI and decision intelligence”, said Gartner Director Analyst Afraz Jaffri. “Early adoption of these innovations will lead to significant competitive advantage and ease the problems associated with utilizing AI models within business processes.”

Has AI peaked with Generative AI?

If we were to read the full Hype Cycle, Generative AI is firmly placed atop the cycle. It had perhaps already been predicted, but it could potentially be viewed synonymously for the peak of inflated expectations. “Generative AI exploration is accelerating, thanks to the popularity of stable diffusion, midjourney, ChatGPT and large language models. End-user organisations in most industries aggressively experiment with generative AI,“ says Gartner VP Analyst Svetlana Sicular.

“Numerous startups have emerged in 2023 to innovate with generative AI, and we expect this to grow. Some governments are evaluating the impacts of generative AI and preparing to introduce regulations.”

“Technology vendors form generative AI groups to prioritise delivery of generative-AI-enabled applications and tools”, Sicular continues. Numerous startups have emerged in 2023 to innovate with generative AI, and we expect this to grow. Some governments are evaluating the impacts of generative AI and preparing to introduce regulations.”

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Pull factors driving the German workforce, that recruiters need to know about 

The German workforce is dynamic, with new opportunities and trends constantly emerging. For recruiters to meet their talent acquisition needs for local or international job opportunities, there are pull factors to be aware of and leverage.  

Deciphering what entices employees to leave jobs and take new opportunities, recruiters can refine their recruitment and HR strategies to attract top talents and create an environment that curbs high staff turnover. Research from the Intelligence Group highlights the top 5 pull factors for the German workforce.  

Good salary 

Good salary tops the list as the number one pull factor for Germans, based on the research from Intelligence Group. A competitive wage has undoubtedly established itself as the paramount pull factor captivating the attention of the German workforce. In the landscape of employment preferences, this aspect stands firmly atop the hierarchy, wielding an influential power that can’t be ignored. Research findings resoundingly emphasize its prominence, with a striking 62% acknowledging a robust salary as the ultimate magnet for alluring opportunities. 

As a recruiter, knowing the salary range and expectations for each role can be a good strategy for attracting top talents.

Recruitment marketing platforms like Giant give the specific salary expectancy for each role, allowing recruiters to position themselves properly.  

Permanent contract  

Following closely on the heels of a competitive salary, a permanent contract emerges as a vital consideration in the German workforce’s employment equation. While Germany has multiple types of contracts, including fixed-term and contract employment, the German workforce prefers having a permanent contract. The stability of a permanent contract is an essential pull factor, as 59% consider it when choosing an employer.  

Variety in work       

While competitive salaries and permanent contracts hold the lion’s share of pull factor preferences, the significance of work variety should not be understated within the German workforce. According to Intelligence Group research findings, 28% consider diversity in job roles as an influential pull factor when making employment decisions. 

Work variety holds appeal for individuals seeking continuous intellectual and professional growth. Germans are typically known for having a productive work culture, despite their somewhat smaller number of working hours.

According to the same research, Germans prefer an average working hour of 35 hours, less than the typical European workforce. They value a dynamic work environment that offers diverse challenges and opportunities that helps keep them engaged. 

Working environment  

The working environment holds its own significance, capturing the attention of a notable 27% based on the findings by the Intelligence Group.  

While salary and job security often take the spotlight, the working environment quietly shapes the quality of an employee’s experience. It encompasses elements such as company culture, office atmosphere, teamwork dynamics, and work-life balance.

A positive working environment can uplift daily comfort and shape the overall narrative of one’s career journey. 

One of the fundamental principles deeply embedded within German work culture is the notion of community. A workplace that encourages respect, collaboration, and the exchange of ideas fosters motivation and productivity. For recruiters, creating a space that aligns with candidates’ values can significantly enhance recruitment efforts and aid talent retention.  

Acceptable workload  

Germans are known for their diligent work ethic and the value placed on achieving both professional success and personal well-being. The notion of an acceptable workload emerges as a notable factor, with 29% acknowledging its significance when considering new job opportunities. Germans generally prefer not to work overtime. When they do, it’s important for the extra hours to stay within the overall limits of maximum working hours. 

In Germany, there are principles in place that control how much time someone can spend working. These rules cover both the regular hours and any additional hours someone might work. 

This approach reflects the value placed on having a good balance between work and personal life. Germans believe in having enough time for leisure and other activities alongside their jobs. An organization that emphasizes work-life balance and offers an acceptable workload will attract the German workforce. 

Employers, TAs and recruiters need to understand the pull factors for their target groups and incorporate them in job listings to attract the right talent. Additionally, a recruitment data platform like Giant will help recruiters with the insights needed to create an effective talent acquisition strategy.

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The 9 key takeaways for recruitment managers from the McKinsey AI report 

AI is rapidly changing the future of work, especially in customer operations, marketing and sales, software engineering, and research and development sectors, according to the McKinsey Report. The report expressed how the new wave of generative AI would impact productivity in businesses and the future of work.   

For recruitment managers, understanding these findings is crucial for preparing for the AI-driven transformation of the workforce. Recruitment managers should consider these ten key takeaways from the report.  

1. AI’s impact on job wage

Unlike previous automation technologies, generative AI is likely to have a higher impact on high-wage jobs. Traditionally, automation technologies have primarily impacted lower-skilled and lower-income occupations. However, with generative AI’s ability to automate complex tasks and decision-making processes, high-wage jobs are now susceptible to automation. The expanding automation potential of AI in high-wage jobs means that recruitment managers need to reassess the skill requirements and job profiles of these roles. 

2. Evolving skill set in hiring

Generative AI and other technologies already available, have the ability to automate the tasks that currently take up 60–70% of workers’ time. In keeping up with the changes, recruitment managers need to stay updated on the evolving skill sets needed in these roles and adjust their hiring strategies accordingly.

There’s a need to seek candidates who have a mix of technical expertise and the ability to adapt and collaborate with AI systems.

This shift necessitates a focus on attracting talent with advanced analytical, problem-solving, and creative skills, as well as a strong understanding of how to work alongside AI technologies. 

3. Upskilling and reskilling talents

Upskilling programs can focus on enhancing technical competencies related to AI, such as data analysis, machine learning, and natural language processing. These initiatives can provide employees with the knowledge and tools to leverage AI technologies effectively in their roles. Additionally, reskilling programs can help employees transition into new roles that leverage uniquely human skills and complement the capabilities of AI. It could involve developing skills in areas such as critical thinking, creativity, emotional intelligence, and complex problem-solving.

4. Collaboration with HR and L&D

Collaboration between the HR and learning and development departments can assist in recruitment. It becomes easier to identify the emerging skill gaps resulting from AI adoption and design and make informed decisions in hiring. 

5. Generative AI has economic benefits

Generative AI has the potential to add trillions of euros annually to the global economy. McKinsey’s report estimates that it could contribute between €2.4 trillion to €4 trillion per year, significantly increasing the impact of AI by 15 to 40 percent. The automation and optimization of work activities through AI technologies lead to increased productivity and cost savings. This, in turn, drives economic growth on a global scale.

6. Industry impact

Although generative AI will have quite a substantial impact across all industry sectors, the banking, high-tech, and life sciences are among the sectors that could experience the highest impact as a percentage of their revenues. In the banking sector, most repetitive tasks like form filling, record keeping, and customer service are already being automated.

AI is expected to make more manual processes extinct in the banking sector, science and technology industry within the next decade.

Recruitment managers can begin to align their talent acquisition strategies with these AI-intensive industries.

7. Impact on higher-educated workers

Unlike traditional automation, generative AI is expected to have the most impact on activities perform8ed by workers with higher levels of educational attainment. Generative AI stands out in its ability to augment the work of individuals who possess advanced education and skills. It has the potential to revolutionize job functions that rely heavily on effective communication, supervision, documentation, and collaboration. As AI advances, it is likely to reshape how these tasks are performed, allowing for increased efficiency and effectiveness in the workplace. 

8. Potential of employee productivity growth 

Generative AI automates specific tasks and activities; it has the power to enhance productivity levels and mitigate the effects of slower economic growth. This is particularly crucial in the face of long-term structural challenges such as declining birth rates and ageing populations. 

Interestingly, the timeline for the adoption of AI and its impact on productivity has accelerated compared to previous reports. The range of possible timeframes has narrowed, indicating increased confidence in the arrival of advanced technological capabilities within specific time periods. It implies that realizing the potential benefits of generative AI in driving productivity growth may happen sooner than anticipated.

Generative AI could be a catalyst for higher productivity growth, countering the slower economic growth experienced in recent years.  

 9. Impact on collaboration and expertise

Generative AI will likely impact collaboration and the application of expertise, areas that were previously considered less prone to automation. With AI algorithms analyzing vast amounts of data and generating insights, decision-making processes can be augmented, enabling more informed and data-driven choices. Additionally, generative AI can leverage expertise by providing recommendations, generating insights, and assisting in problem-solving, thereby amplifying the capabilities of employees in various domains. 

 

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Europe’s manufacturing industry is struggling: 1 in 4 entrepreneurs experience ‘hampered operations’ 

Poland’s numbers weren’t good in 2012, but are pretty much catastrophic in 2023. In 11 years, the number of entrepreneurs whose operations are hampered by labour shortages doubled in Poland. Now, if you think that sounds bad, entrepreneurs in countries such as Croatia have seen their operations hampered by an increase of 2300%. You don’t need to be an Excel wizard to see that labour shortages are everywhere in European spheres, but vary in each country. 

In 2012, an average of 7% all European manufacturing entrepreneurs saw their production limited by a shortage of workers. Eleven years later, that European mean has increased to 26%, meaning that a quarter of all European entrepreneurs see their operations hampered. “You see that talent shortages remain one of Europe’s largest issues”, says Arjan Ruis, who works for labour market data and Talent Intelligence specialist Intelligence Group. 

Thermometer for the tight labour market

While Ruis calls the graph ‘worrying’, he says it’s important to note the statistic is limited to manufacturing entrepreneurs — as well as when Eurostat started publicly stating the statistics. “When comparing with 2012, you have to remember that the economy appeared to be on hiatus then. So you are comparing a mountain to a hill, so to speak. But nevertheless worrying that such a large proportion of entrepreneurs in the industry are struggling with a shortage of staff.”

“It’s worrying that such a large proportion of entrepreneurs in the industry are struggling with a shortage of staff.”

Leading indicator for other economies

But the relevancy of the graph is particularly relevant to central and eastern Europe, where manufacturing is, on average, a larger share of the overall economy than in the rest of Europe. “The statistic is very relevant and acts as a kind of thermometer of the tightness of the European labour market.”

“Many sectors depend on what happens in the manufacturing industry. So if one industry cannot produce enough because there is a shortage of personnel, other sectors that use those products are affected.”

That’s not all, according to Ruis. As manufacturing is what he describes as a sector that serves as a leading indicator. It means that whatever happens in that sector could potentially have the same repercussions across the rest of the economy. “Thus, the indicator also has a short-term predictive character. Many sectors depend on what happens in the manufacturing industry. So if one industry cannot produce enough because there is a shortage of personnel, other sectors that use those products are affected. Take the construction industry, for example, which depends on the wood and building materials.”

Understanding preferences and desires 

If there are shortages everywhere then it means there is a European-wide shortage of staff, Ruis notes. So where do the solutions lie? “There’s always an option to bring in staff from abroad, from Asia or Africa for example, but then other things come into play. Is your country desirable for them to move to, or is it a real structural solution to begin with? After all, migrants need somewhere to live, eat and demand care.”

“I think it’s all about understanding labour supply and demand, on a local, regional, national and international level.”

“Because shortages are not the same everywhere within Europe, it means the continent has room to improve with regards to labour migration. While the European Commission actively encourages it, a continent-wide breakthrough seems pretty far away. I think it’s all about understanding labour supply and demand, on a local, regional, national and international level.”

“You need to understand the preferences and desires of what workers want and need”, Ruis says. “Then you can answer the follow-up questions: How can you entice people from abroad to come and work for you? What should you offer them? Amassing answers to those questions should be the starting point for many struggling sectors, including the manufacturing industry.” 

Increasing labour productivity

If recruiting new personnel from abroad just isn’t an option, Ruis points to the necessity of increased productivity. “Generally speaking, productivity levels have dipped in Europe”, he says. “Aggregate labour productivity growth has been trending downwards for decades, both in the euro area and in other major economies, as per an ECB report. As labour markets continue to be tight, there’s a simple need to do more with the same number of people.”

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Europe’s American dream: US most popular destination for Europeans seeking work abroad

Working abroad is still an exciting phenomenon for some Europeans, and their reasons for desiring to work abroad differs. According to research by Intelligence Group, the opportunity to have a better standard of living, gain experience, get to know different cultures, and earn better salaries are the top pull factors. As a result, it attracts Europeans to work abroad. These are the top 10 countries destinations for them to work in.

#1: United States 

The United States is the most popular country for Europeans when it comes to talents working abroad for a short or long period. According to the Intelligence Group research, 28.6% of respondents in Europe expressed a strong desire to work/live in the United States.

The US advancement especially in the tech, among other industries is a good enough reason for those in white-collar jobs to desire relocation. 32.4% of talents in white-collar jobs share the desire to work abroad, compared to 25.4% in blue-collar jobs.  

#2: Germany 

Germany is an appealing destination for work for 23.8% of talents looking to work abroad. However, there has been a slight decline compared to the previous year, as in 2021, 24.6% expressed a desire to work in Germany. 

The country’s labour market is well-established and places a strong emphasis on workers’ rights, fair wages, and maintaining a healthy work-life balance.  

The desire to work in Europe decreases over age across different age groups, with 24.1% of individuals in their 30s, 23.9% between 30 and 50 years old, and 23.0% above 50 years old showing a preference for working in Germany.  

#3: Spain 

Despite the possible language barrier, Europeans that want to work abroad are choosing Spain as the third most popular country to relocate to for job opportunities. Currently, 21.0% express a desire to relocate to Spain, which marks an increase compared to 2021 when the figure stood at 20.1%. 

Companies in Spain are known to offer more vacation days compared to other European countries and typically have a flexible work structure. They also provide better healthcare insurance, leave, childcare, and other employee benefits compared to most European countries. These perks are likely what attracts 21.9% of blue-collar workers that want to work abroad to desire going to Spain compared to 19.9% of white-collar job workers.  

#4: United Kingdom 

The UK has consistently acted as a magnet for talents from all corners of Europe, luring professionals from diverse fields due to its enticing job opportunities. An impressive 20.8% of Europeans wish to relocate to the UK in pursuit of career prospects. This desire has grown compared to previous years, as in 2021, 19.8% expressed a desire to work in the UK.

#5: France

France is a popular country for job opportunities and investment across the globe. In fact, in 2020, it was ranked as the most attractive country in Europe for foreign investors. This popularity is reflected in the fact that 14.7% of Europeans express a desire to work in France, highlighting the appeal of its abundant opportunities.

Although there has been a slight decrease compared to the previous year when 17.7% desired to work in France, the country’s allure remains strong.

#6: Canada

Europeans are increasingly drawn to Canada for work opportunities, as it ranks sixth on our list of desirable destinations, with 17.1% of Europeans considering relocating for employment. However, the trend towards seeking employment in Canada has notably slowed. Intelligence Group studies project that by 2021, 19.2% of people will want to work in Canada, up from the current 17.1%.

#7: Australia

Australia has historically attracted settlers from Britain and other European countries, and this trend continues to this day. Based on Intelligence Group research, 16.8% of Europeans express a desire to work in Australia, making it the 7th most popular country among Europeans that want to work abroad. However, in 2021, Australia was ranked as the 3rd most popular country for Europeans with 20.3% desiring to work there.  

#8: Italy

Italy is rich in both culture and diverse opportunities. The Intelligence Group data shows it ranks as the 8th most popular country for work relocation in Europe. Italy is home to various sectors, including fashion, automotive, design, finance, and manufacturing. Overall, 14.7% of the surveyed group desire to work in Italy, a slight increase when compared to 2021, where 13.7% wanted to work in Europe.  

It seems the country has more appeal among women (17.6%) compared to men (12.8%) which could be because of the alluring fashion industry in Italy.  

#9: Switzerland

Switzerland is an immensely attractive destination for immigration due to its exceptional quality of life, abundant work opportunities, advanced healthcare facilities, and breathtaking natural beauty. Currently, approximately 1.4 million EU citizens have chosen Switzerland as their home, constituting around 16% of the total population. It holds the impressive rank of being the 9th most sought-after country by Europeans who want to work abroad, with 12.6% expressing a strong desire to work there.  

Interestingly, this aspiration is more prevalent among individuals above 50 years of age, with 13.8% sharing this desire, compared to 11.6% among those in their 30s. The OECD reported Switzerland to have one of the highest employment rates for older employees, further enhancing its appeal as an ideal place to work and settle down.

#10: Austria

Austria is ranked as the second most liveable country in the world, and its capital, Vienna constantly ranks as one of the most liveable cities in Europe. Based on the research, 10.8% rank Austria as the 10th most popular country to Europeans to work internationally.  

However, when compared to the desire to work in other European countries, there appears to be a slight decline in overall preference. In 2021, the desire to work in Austria stood at 11.5%, indicating a marginal decrease. 

Top 10 countries for Europeans to work in

2022 Vs 2021 

Rank  2022  2021 
#1  United States  United States 
#2  Germany  Germany 
#3  Spain  Australia 
#4  United Kingdom  Spain 
#5  France  United Kingdom 
#6  Canada  Canada 
#7  Australia  France 
#8  Italy  Italy 
#9  Switzerland  Switzerland 
#10  Austria  Austria 

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London named top destination for Europeans seeking work abroad in 2023

Working in foreign cities has become increasingly popular among European professionals, lured by attractive salaries, stable contracts, and diverse working environments. According to the Intelligence Group research, these seven cities are the most attractive places for Europeans who want to work abroad (for a short time or permanently).  

#1: London 

London tops the list as the most attractive city, with 23.2% of the people who want to work abroad. As a bustling metropolis, London offers a diverse and thriving job market, attracting professionals from all corners of Europe. Its global financial hub status opens doors to prestigious opportunities, especially in finance, technology, and business.  

As a bustling metropolis, London offers a diverse and thriving job market, attracting professionals from all corners of Europe.

The appeal of London is no surprise, given that it promises better opportunities and invaluable experiences. As highlighted by Intelligence Group research, these two factors are among the top reasons why Europeans are generally drawn to work abroad. 

#2: Paris  

Paris, the renowned “City of Lights,” ranks as the second top city for Europeans to work/live. The attraction to Paris can be attributed to its rich cultural heritage, good working environment and high salaries — all top attractions for Europeans seeking to work/live abroad. Moreover, Paris has one of the highest minimum wages in Europe.

Although Paris is ranked as number two, the attraction to work in the city is slightly reduced, compared to previous years.

The allure of Paris could also be linked to the popular “Emily in Paris” series, which showcased the city as a fun and vibrant place to work and live. Although Paris is ranked as number two, the attraction to work in the city is slightly reduced, compared to previous years. In 2021, 16.3% desired to work in the city, and now, the research shows 15.4% still prefer to work in Paris.  

#3: Berlin  

Berlin has risen to become the third most popular city for Europeans to work. 12.3% of European workers desiring jobs abroad now consider Berlin a top choice. In 2021, the city was ranked fourth, making its recent ascent impressive. This popularity is likely due to the city’s appealing features, such as good salaries, stable job contracts, and flexible working options. Moreover, Forbes recognized Berlin as the eighth-best city globally, adding to its attractiveness as a work destination.   

#4: New York 

The first non-European city on the list: New York, which ranks as the fourth most popular city for Europeans to work and reside in. According to the Intelligence Group, 12.1% of people want to work in the “Big Apple.” The city has a competitive job market, and the presence of leading companies allows professionals to gain exposure to cutting-edge technologies and innovative practices, fostering professional expertise and skills. However, there’s a noticeable decline in Europeans wanting to work in New York. The research in 2021 showed 17.2% desired to work in New York, about 5 percentage points more than it is now.  

There’s a noticeable decline in Europeans wanting to work in New York. From 17.2% in 2021 to 12.1% in 2023. 

#5: Barcelona  

Barcelona’s thriving tourism, technology, and creative industries offer ample job opportunities, making it an appealing destination for career advancement and professional growth. The city currently ranks as the fifth most preferred country to work/live, with 9.2% choosing to work there. A slight increase compared to 2021, where 8.5% showed interest in working in Barcelona.  

Interestingly, the allure of the city resonates particularly with older individuals, with 10.5% of those aged 50 years and above expressing their desire to work in Barcelona, compared to 7.7% of those under 30. 

#6: Rome 

As the capital of Italy, Rome offers a unique blend of ancient landmarks, art, and architecture, creating an inspiring and enriching environment. Based on the research, 7.3% of Europeans view Roma as the sixth most preferred city when considering working/living abroad.  

However, more women, 8.7%, than men (6.4%) find Rome a top destination for working abroad. The city’s rich history and vibrant artistic scene could resonate strongly with women seeking opportunities in these fields. Moreover, work-life balance considerations and family responsibilities could also come into play, as Rome’s more relaxed lifestyle and Mediterranean climate may be attractive to those seeking a new work-life environment. 

#7: Madrid 

Based on the Intelligence Group research, Madrid is the seventh most desirable city for Europeans to work or reside in, with 7.2% indicating a wish to work there. The city offers some of the top benefits Europeans seek when working/living abroad, including rich culture, work-life balance and vast opportunities. Notably, Madrid attracts more women (7.7%) than males (6.9%) looking for work, highlighting the city’s diversified appeal. Madrid’s emphasis on work-life balance may attract women seeking fulfilling careers without compromising their personal life. 

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The 6 biggest trends among Talent Acquisition leaders in 2023

For the 2023 edition of the Employer Branding Now research, Universum has conducted a survey among over 1,700 talent leaders. The research is focused on how companies compete in a world of talent shortages and the specific strategies used by the world’s most attractive employers. This year, they’ve identified 6 biggest trends among those surveyed. 

1. Talent shortages reach 17-year high

Despite the global economic slowdown, talent shortages have reached a 17-year high. Nearly 4 in 5 employers globally report difficulty the talent they need in 2023, strengthening +2 percentage points year-over-year and more than double the difficulty in 2010 (31%). 

Surprisingly, 80% of students surveyed express confidence in securing a job this year. In STEM fields, layoffs among Big Tech brands have been offset by hiring in traditional industries, which usually struggle to attract top tech talent. This paradox highlights the urgency for organisations to optimise their recruitment strategies and employer branding efforts to stand out in a competitive market.

2. Some holding back, some are labour hoarding 

Many companies are taking a cautious approach during the economic downturn by avoiding employee layoffs. This “labour hoarding” strategy stems from the fear that the economy may quickly rebound, and competitors might poach valuable talent. Companies are holding on to their critical talent groups for as long as possible to prevent a talent shortage and a scramble to rehire when the market bounces back.

3. Total reward offers being reassessed 

The past few years have seen companies offering equity as part of their compensation package to attract top talent, especially when stock prices were rapidly rising. However, with stock prices now slowing down and even dropping, employers need to reassess their total reward offers. As the economic landscape changes, they must consider how market fluctuations impact their ability to attract and retain top talent.

4. More upskilling and reskilling on the horizon 

To address talent shortages, organisations are exploring innovative tactics to keep their talent pipelines full. Initiatives like upskilling employees, recruiting “new collar” workers, and leveraging automation and AI to fill skill gaps are gaining prominence. By diversifying their talent acquisition strategies, companies can create more resilient and agile workforces.

5. Employer branding now a critical focus

Employer branding has emerged as a critical focus for talent leaders in 2023. The Universum Employer Branding NOW research reveals that 78% of companies consider employer branding a top priority. To stand out amidst talent disruption, companies must emphasize differentiation in their employer branding efforts. This involves reevaluating messaging related to diversity, equity, and inclusion (DE&I) and flexible working, which have become expectations in the modern workforce.

“The best companies understand that employer branding is an investment in their talent pipeline — not just for open positions this year, but to develop relationships for roles that need to be filled in one to three years.”

“Company leaders know that their ability to deliver growth and innovation rests on the strength of their talent pipeline and talent management”, said Yusuf Azoz, CEO of Universum. “And the best companies understand that employer branding is an investment in their talent pipeline — not just for open positions this year, but to develop relationships for roles that need to be filled in one to three years.” 

6. Data-driven decision-making as the new norm

Data-driven decision making has become a standard practice among talent leaders. A remarkable 88% of companies in the Universum research “frequently” or “always” use data to drive their recruitment strategies. “Over the last 5+ years, we have observed a significant shift in companies’ use of data to drive decision making in recruiting and talent management. In 2023, 40% say they “always” make data-driven decisions — a more than twofold increase in four years.”

Data-driven employer brands are early adopters of generative AI applications, leveraging new technologies for workflow automation, candidate sourcing, employee engagement, and more.

Metrics dashboards are increasingly employed to monitor the recruitment funnel, from brand awareness to candidate conversion and employee engagement and retention. Additionally, data-driven employer brands are early adopters of generative AI applications, leveraging new technologies for workflow automation, candidate sourcing, employee engagement, and more.

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How to build a company culture that everyone feels connected to?

If you’re looking, the statistics are quite literally everywhere. Company culture is a significant consideration for 46% of job seekers, with married candidates placing a higher emphasis on culture compared to their single counterparts. A staggering 94% of entrepreneurs and 88% of job seekers recognise the essentiality of a healthy work culture in achieving success. Moreover, an overwhelming 86% of job seekers actively steer clear of companies with unfavourable reputations.

Cultures should be intentional

“Creating a company culture that everyone feels connected to is crucial for organisations to address challenges in hiring, engagement, and retention”, says Koijen Ramos, an expert in organisational culture, in an Undutchables Expert Talk. “The creation of an organisational culture must be intentional and should serve the purpose of the organisation”, says Ligia. “It is crucial to establish a clear vision and mission for the company as a starting point. The culture should align with these foundational elements, creating a snowball effect of alignment throughout the organisation.”

‘The way we do things here’

But when you get into the nitty gritty behind the definition of a culture, it’s easy to get lost. According to the dictionary, a culture is defined as the beliefs, customs, practices, and social behaviour of a particular group of people or society. It encompasses the shared values, traditions, arts, language, and way of life that characterise a community or civilisation. Culture can also refer to the cultivation of intellectual and artistic pursuits, as well as the ideas, attitudes, and behaviours that are prevalent within a specific group or organisation.

Three different cultures

“Culture is the way we do things around here”, explains Ligia. “It encompasses procedures, communication styles, and employee behaviours.” Overall, Ligia sees three different types of cultures that encapsulate how things are done. 

  • Assumed culture: This refers to the values, norms, and principles that an organisation or group believes it upholds. It represents the idealised version of how things are supposed to be, often articulated through mission statements, written policies, and stated values.
  • Current culture: This reflects the reality of what is truly happening within the organisation. It encompasses the actual behaviours, attitudes, and practices that exist among employees and leadership, regardless of the stated or assumed culture. It is important to understand the current culture to identify any gaps or misalignments between the assumed and actual values.
  • Paradise culture: This concept envisions an ideal world or desired state of organisational culture. It represents the aspirational and utopian culture that an organisation strives to achieve, characterised by high employee satisfaction, collaboration, innovation, and alignment with the organisation’s mission and values.

“It’s vital to understand the gap between those three cultures: the assumed culture, current culture, and paradise culture. Organisations need to assess their existing culture and determine if it supports the desired company vision. Recognising the current state of culture is the first step toward building a culture that aligns with organisational goals.”

Have you thought about the safety?

Ligia Koijen Ramos

But when culture discussions take place, one element often goes unnoticed. Ligia highlights the importance of creating a safe environment in three aspects: physical safety, mental safety, and a sense of belonging. While mental aspects and behaviour tend to receive more focus in discussions about culture, physical safety should not be overlooked. Factors such as seating arrangements, facilities, and noise levels can significantly impact employees’ sense of safety and trust. Trust is a critical factor in engagement, and organisations must create an environment where employees feel safe and valued.

“Our main goal should be to create that safety. We have a purpose, a vision and we’re going to be so congruent on designing a culture that represents that so people know what they can count on.”

“Creating a safe environment is crucial in culture building”, says Ligia. “This includes physical safety, mental safety, and a sense of belonging. Factors such as seating arrangements, facilities, and noise levels can significantly impact employees’ sense of safety and trust. The big issue with the current engagement, or lack thereof, is the trust. People don’t engage because they don’t trust or feel safe. Our main goal should be to create that safety. We have a purpose, a vision and we’re going to be so congruent on designing a culture that represents that so people know what they can count on.”

Don’t dismiss the past

Then the question beckons: how to build the paradise culture every HR and talent leader dreams of? The first step should be to not dismiss the past. “When transforming a culture, it is important not to reject the previous culture entirely”, advises Ligia. “Instead, organisations should reinforce the idea that change is occurring while providing a comparison point for employees. By understanding the reasons behind the change, employees can compare the old and new cultures, leading to a more successful transition.”

Three approaches for a strong organisational culture 

Ligia suggests three approaches to building a strong organisational culture. “Recruitment should be a starting point for cultural development. Hiring individuals who already exhibit the desired cultural traits can create a positive ripple effect within the organisation”, she says. Secondly, she advises organisations to really engage with employees who have complaints or concerns. “These individuals can offer valuable insights into areas that need improvement and guide the culture-building process.” 

“Values should be expressed through observable behaviours, creating a measurable framework for assessing cultural alignment and progress.”

As a third point, she highlights the importance of making values tangible and practical. “Values should be expressed through observable behaviours, creating a measurable framework for assessing cultural alignment and progress. Any culture will take some time to change. But you need to continue to focus on the gaps and how to measure those gaps between the assumed culture, current culture, then relate that with the ideal culture and focus on the gaps. Define the strategies and focus on how to increase or decrease certain gaps.”

Change starts from the top

To drive a change in culture, it is essential for management to take the lead. Merely instructing people on what they should be doing is insufficient. “It is crucial that leaders exemplify the desired behaviour themselves. This demonstration of trust is vital because employees need to witness their leaders practicing what they preach. If leaders fail to lead by example, it becomes easier for employees to give up and question why they should make the effort. Therefore, it is crucial for the management team to embrace the desired cultural changes. Making values real and relatable helps employees connect with them on a practical level.”

This article is based on the Undutchables Expert Talk Series by Ligia Koijen Ramos. On November 17, 2023, Undutchables will host Part 3, about The Secret to an Organisational Culture That Everyone Loves Belonging. Sign up for free via this link.

The Great Resignation 2.0: quarter of employees globally plan to switch jobs within next 12 months

This trend is not confined to a particular region; rather, it is a global phenomenon. As the PwC report highlights, employees across the world are grappling with financial strain amid a cooling global economy and the challenges posed by inflation. The survey reveals that the proportion of the global workforce claiming to have surplus money at the end of each month has fallen to 38%, down from 47% in 2022.

Global Phenomenon

Bhushan Sethi, the strategy and principal at PwC US, emphasised the significance of addressing the desires of the global workforce in the face of ongoing economic uncertainty. “With the ongoing economic uncertainty, we see a global workforce that wants more pay and more meaning from their work”, he said. “Addressing these needs will be critical as leaders seek to transform their workplaces, enabling business model reinvention, profitable growth, and job creation.”

The comprehensive PwC survey drew responses from a vast sample size of 53,912 individuals currently employed or actively seeking employment. Conducted in April, the survey encompassed participants from 46 countries, thus providing a comprehensive snapshot of the global labor market.

21% now juggling multiple jobs

The study further reveals that 21% of workers are now juggling multiple jobs, with a staggering 69% doing so out of sheer necessity to augment their income. Consequently, the economic squeeze has fueled an increase in wage demands, with 42% of workers planning to ask for a pay raise, compared to 35% in the previous year. Worryingly, among those planning to request a salary increase, a significant 46% are facing financial difficulties.

The economic squeeze has fueled an increase in wage demands, with 42% of workers planning to ask for a pay raise, compared to 35% in the previous year.

In addition to the immediate financial challenges, the report highlights the potential long-term implications of financial struggles. Workers who find themselves grappling with financial difficulties are less likely to be able to confront future challenges, such as acquiring new skills or adapting to the emergence of artificial intelligence. The survey reveals that individuals who struggle or fail to pay their bills are 12 percentage points less likely to actively seek opportunities for skill development compared to those who can comfortably meet their financial obligations.

‘Pressing need to address aspirations and job satisfaction’

On the other hand, skilled workers who possess specialised expertise are confronting the rapidly evolving economic and work landscape with greater confidence. According to the report, workers who believe their job requires specialised skills are more likely to anticipate forthcoming changes and adapt accordingly.

As the Great Resignation gathers momentum, organisations and employers face the challenging task of attracting and retaining talent. The findings from the PwC survey underline the pressing need for businesses to address the financial aspirations and overall job satisfaction of their employees. Offering competitive salaries, opportunities for skill development, and a sense of purpose in the workplace will be vital in driving business model innovation, fostering sustainable growth, and creating a conducive environment for job creation.

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Technology adoption will remain a key driver of business transformation in the next 5 years

Technology adoption is clearly prevalent in businesses today. More and more organisations are integrating tech into their businesses to stay ahead of the competition and speed up growth and innovation. Tech and automation require specific skills that will continue to be highly sought. However, it also replaces certain job roles with repetitive tasks.  

Job Growth and Displacement 

The impact of technology adoption on job growth and labor-market dynamics is complex and varied. While certain technologies are predicted to create new jobs, others may result in job displacement or significant changes in job roles. Among the most swiftly diminishing positions are clerical and secretarial roles. Specifically, Bank Tellers and Related Clerks, Postal Service Clerks, Cashiers and Ticket Clerks, and Data Entry Clerks.

These roles, which heavily rely on manual tasks and routine administrative duties, are gradually being phased out as technology automates and streamlines these processes. However, roles such as big data analytics, climate change and environmental management technologies, and encryption and cybersecurity are expected to be major drivers of job growth.

Conversely, agriculture technologies, digital platforms and apps, e-commerce, digital trade, and AI are anticipated to disrupt the labour market. 

Based on the WEF Future of Jobs Report 2023, we can also anticipate significant job growth in education, agriculture, digital commerce, and trade. The education industry is predicted to grow globally by up to 10%, creating 3 million new jobs. While the agriculture industry would grow by roughly 30%, adding 3 million new jobs. Digital-related jobs like Digital marketing are also expected to grow by up to 4 million new roles.  

The Skill Gap & Need To Upskill  

Data from WEF also estimates that by 2023, six out of ten jobs would need additional training and upskilling. Technology has impacted nearly every industry, and inevitably there’ll be a need for tech skills. Unfortunately, there seem to be limited skills in the workforce, which emphasizes the need for organisations to upskill and train their existing talents. Moreover, a comprehensive report by Korn Ferry sheds light on the daunting reality that, by the year 2030, over 85 million jobs could remain unfilled due to a skill gap.  

Forward-thinking organisations need to recognise that by prioritising employee upskilling, they are cultivating a versatile and engaged pool of people that can effectively contribute to corporate growth and handle future obstacles. 

Upskilling employees should be seen as a strategic investment that is likely to yield good returns. In fact, two-thirds of businesses expect to see a return on their training expenditure within a year. These benefits can manifest themselves in a variety of ways, including enhanced cross-role mobility, increased employee happiness, and increased productivity.  

Creativity and Innovation with AI 

With the rise of automation replacing mundane tasks, the significance of creativity and innovation in organizational success cannot be overstated. Cultivating a culture of innovative thinking has become the second most important aspect of workforce development, with 8% of upskilling efforts focusing on this crucial area. Recognising the need to empower employees to break free from conventional approaches, forward-thinking organisations emphasise the value of nurturing creative thinking skills. By fostering such skills, organisations can proactively adapt to evolving landscapes, driving growth and propelling innovation through cutting-edge solutions. 

Notably, WEF sees that around 42% of surveyed companies prioritize training their workforce to effectively harness the potential of AI and big data.

The convergence of artificial intelligence (AI) and big data across diverse industries has sparked a surge in demand for skilled professionals in these domains. Notably, WEF sees that around 42% of surveyed companies prioritize training their workforce to effectively harness the potential of AI and big data. Equipping employees with the necessary expertise enables organisations to unlock the transformative power of these technologies, extracting valuable insights, automating processes, and enhancing operational efficiency. 

Automation and AI in Recruitment 

The introduction of automation and AI in the recruitment process provides various benefits while also posing certain problems. Using these technologies improves objectivity, reduces biases, and makes candidate evaluation faster and more efficient. However, concerns have been raised about the potential biases in algorithmic decision-making, emphasising the importance of human monitoring to maintain justice and inclusivity. Specifically, some platforms allow users to swipe through career alternatives, similar to the popular dating app Tinder.  

For employers to maximize the benefits of automation in the recruitment area, the correct balance of technology and human engagement must be found.

While the use of automation and artificial intelligence (AI) streamlines and accelerates the selection process, it is critical to keep a human touch and thoughtfulness throughout. Human monitoring protects against potential prejudices contained within algorithms, enabling a fair and inclusive examination of candidates.  

Data Analytics for Informed Decision-Making 

Data analytics is like having a secret weapon when it comes to making smart decisions throughout the recruitment process. By diving into the treasure trove of data on job performance, employee engagement, and skills assessment, organisations can unlock valuable insights. This can then guide their talent acquisition, workforce planning, and skill development initiatives.

 As the recruitment trends change, accurate data and analytics on the job market from platforms like Giant can provide the edge needed in talent acquisition, management, and retention. 

Using predictive analytics can be particularly valuable in identifying candidates who have the greatest potential for success, thereby optimizing the efficiency and effectiveness of recruitment endeavors. As the recruitment trends change, accurate data and analytics on the job market from platforms like Giant can provide the edge needed in talent acquisition, management, and retention. 

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France’s €2.9 billion plan to overhaul job seeker service and reduce unemployment rates 

France will soon have a brand-new job seeker service called France Travail (or France Works), which will replace the existing agency (and job board), Pole Emploi. The aim of this reform is to simplify the process of entering the workforce and enhance coordination among various stakeholders within the French public employment service. France Travail, set to become operational on January 1, 2024, is part of the French government’s strategy to revamp the country’s employment landscape. This new job seeker service seeks to streamline the entry into work and consolidate the efforts of key entities in the French public employment service. By replacing Pole Emploi, France Travail will establish a single point of contact for individuals seeking employment opportunities.

Bringing together six services

The comprehensive range of services offered by France Travail will bring together various entities such as Pole Emploi, Cap Emploi (focused on disabled employees), Mission Locale (focused on young people up to age 25), local authorities, organizations, and the CAF (Caisse d’Allocations Familiales), a government body that supports families. This integration aims to provide a more cohesive and efficient experience for job seekers and employers alike.

The €2.9 billion plan

According to the French government, the transformation to France Travail will entail an estimated cost of up to €2.9 billion over a three-year period from 2024 to 2027. Thibaut Guilluy, the high commissioner for employment and the driving force behind France Travail, emphasised that the service’s core objectives encompass reception, orientation, support, training, integration, and job placement for individuals seeking employment or encountering social difficulties.

Additionally, Guilluy highlighted that France Travail will establish standardised procedures and criteria for registration and orientation, creating a common platform of services that benefits both individuals and employers. Rigorous evaluations will also be implemented to ensure the effectiveness of the service in meeting its goals.

New social security benefit for the unemployed

To facilitate this overhaul, all job seekers, including beneficiaries of RSA (Revenu de Solidarité Active) – a social security benefit for the unemployed – will be required to register and sign a “commitment contract” with France Travail. The new system will mandate 15 to 20 hours of weekly activities, including workshops, CV writing sessions, and skills refreshers. Non-compliance with these requirements could result in penalties such as the suspension or withdrawal of benefit payments.

But not everyone is seemingly on board. The introduction of these changes has faced criticism from the trade union CGT, which voiced concerns about the severity of penalties and deemed the 15 to 20-hour activity requirement as “absurd.” The CGT emphasised that among the 60% of RSA beneficiaries not currently registered with Pole Emploi, there are individuals with disabilities and those facing extremely challenging social situations.

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The Great Spanish Shuffle: 55% of all workers in Spain are job hunting

The survey highlighted a prevailing sense of immediacy among workers, with many seeking new positions if they fail to secure promotions or substantial salary increases. Furthermore, the study uncovered widespread dissatisfaction regarding pay fairness and deserving promotions. Notably, work-life balance emerged as the top priority for job seekers, surpassing salary, relationships with colleagues, training, and professional growth.

55% are job hunting

The research conducted by Michael Page and Great Place to Work, as reported by El Pais,  shed light on the pressing issue of job dissatisfaction and the quest for greener pastures among Spanish workers. A staggering 55% of employees are actively engaged in job hunting, a trend fueled by a sense of urgency prevalent in today’s fast-paced world. Jaime Asnai, the general director of PageGroup Spain, underscored the growing impatience among employees who, when denied promotions or substantial salary increments, swiftly explore alternative employment options.

A significant 52% of workers expressed a lack of confidence in receiving fair compensation, while 54% doubted the fairness of promotion decisions.

The findings from Great Place to Work further deepened the narrative of discontent within the Spanish workforce. A significant 52% of workers expressed a lack of confidence in receiving fair compensation, while 54% doubted the fairness of promotion decisions. These statistics provide compelling evidence that the majority of employees are proactively seeking new job opportunities due to feelings of underappreciation and inadequate rewards for their efforts.

Work-life balance the primary reason

The study also highlighted the paramount importance of achieving a work-life balance for job seekers. A striking 59% of participants cited work-life balance as the most significant factor influencing their decision to explore new employment options. Surprisingly, this factor surpassed traditional motivators such as salary (54%), relationships with colleagues (44%), training opportunities (35%), and professional development prospects (34%).

A striking 59% of participants cited work-life balance as the most significant factor influencing their decision to explore new employment options

As employees increasingly seek fulfillment beyond monetary compensation, organisations must respond by reevaluating their policies and practices. Flexible working hours, remote work options, and comprehensive well-being programs are just some of the measures that companies can adopt to meet the demands of their workforce. “Those that do not do so will lose competitive power with respect to the rest”, Asnai concluded.

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