Unemployed Long Term, Not Unemployable What Companies Can Do To Help Robin Erickson, Ph.D. Vice President, Talent Acquisition Research Bersin by Deloitte / Deloitte Consulting LLP Alice Kwan Principal Deloitte Consulting LLP November 13, 2014
Today s Agenda & Presenters U.S. long-term unemployed situation White House call to action and longterm unemployed business case for employers Leading practices for targeted recruitment and hiring Robin Erickson, Ph.D. Vice President, Talent Acquisition Research Bersin by Deloitte / Deloitte Consulting LLP rerickson@deloitte.com Resources, tips, and tools Being part of the solution Join the Conversation: @RAEricksonPhD Alice Kwan Principal Deloitte Consulting LLP akwan@deloitte.com 1 Unemployed Long Term, Not Unemployable: What Companies Can Do To Help
U.S. Long-Term Unemployed Situation 2 Unemployed Long Term, Not Unemployable: What Companies Can Do To Help
The Talent Challenge In America Unemployment Lingers Despite Rebounding Economy 4.8M Unfilled jobs in the US 5.8% US unemployment rate 7.1M Underemployed workers (employed part-time for economic reasons) 9.0M Unemployed Americans Source: Job Openings and Labor Turnover August 2014, Bureau of Labor Statistics, October 7, 2014. The Employment Situation September 2014, Bureau of Labor Statistics, October 3, 2014 3 Unemployed Long Term, Not Unemployable: What Companies Can Do To Help
Let s Hear From You 4 Unemployed Long Term, Not Unemployable: What Companies Can Do To Help
Long-Term Unemployed in America A Serious Situation According to the Bureau of Labor Statistics, as of October 2014, 3 million Americans have been looking for work for six months or longer. Source: www.bls.gov/news.release/empsit.nr0.htm. 5 Unemployed Long Term, Not Unemployable: What Companies Can Do To Help
Meet the Long-Term Unemployed Job Seeker Profiles 28 Post Secondary Degree 27 26 25 24 23 27 LTU 24.5 STU Post Secondary Degree Age Asian 5% Other 3% Race White Black Hispanic 70% Hispanic 18% Asian Other Of the LTU are younger than 50 years old Black 23% White 51% Source: Bureau of Labor Statistics, Current Population Survey, www.bls.gov/cps 6 Unemployed Long Term, Not Unemployable: What Companies Can Do To Help
The long-term unemployed receive 45% fewer callbacks than the short-term unemployed, and are only 50% as likely to get an interview. Source: A Guide to Recruiting and Hiring the Long-Term Unemployed, Deloitte Consulting and The Rockefeller Foundation 7 Unemployed Long Term, Not Unemployable: What Companies Can Do To Help
White House Call to Action and Long-Term Unemployed Business Case For Employers 8 Unemployed Long Term, Not Unemployable: What Companies Can Do To Help
The White House Call to Action Employers Getting Involved Since January 2014, more than 300 companies, including 20 of the Fortune 50, signed the White House s Best Practices for Recruiting and Hiring the Long-Term Unemployed to demonstrate their commitment to hiring LTU and resolving this national issue Source: A Guide to Recruiting and Hiring the Long-Term Unemployed, Deloitte Consulting and The Rockefeller Foundation 9 Unemployed Long Term, Not Unemployable: What Companies Can Do To Help
Changing Perspectives The LTU Opportunity for Employers Did you know.. Gain Increased Access to Quality Candidates Build Your Employment & Consumer Brands Reduce Recruiting Costs Support the National Economy Source: A Guide to Recruiting and Hiring the Long-Term Unemployed, Deloitte Consulting and The Rockefeller Foundation 10 Unemployed Long Term, Not Unemployable: What Companies Can Do To Help
Hiring the LTU Can Reduce Recruiting Costs Businesses can significantly enhance sourcing support and reduce recruiting costs by collaborating with intermediary organizations that work with LTU Enhance sourcing support Reduce recruiting costs 118 Average number of applications submitted for an online job posting $3,500 Average cost of hire a company spends per new employee Intermediaries can help decrease time spent on reviewing resumes and pre-screening candidates American Job Centers or intermediaries can help reduce job board fees http://www.forbes.com/sites/jacquelynsmith/2013/04/17/7-things-you-probably-didnt-know-about-your-job-search/ O Leonard, Karen. The Talent Acquisition Factbook 2011: Executive Summary. November 2011. 11 Unemployed Long Term, Not Unemployable: What Companies Can Do To Help
Hiring the LTU Can Build Your Consumer & Employment Brands Simply by giving LTU job seekers a fair chance at open jobs, businesses can build their local brand by investing in the people and communities they serve and their national brand by helping to solve a serious problem affecting the country s economy Strengthen your local brand 85% of surveyed consumers consider whether a business supports local communities when purchasing products #1 issue consumers want addressed is local investment in people, job creation, and infrastructure Empowering local economies makes you a business of choice Strengthen your national brand 55% of surveyed consumers will spend more on socially conscious companies Be part of a large group of companies that is publicly committed to solving this issue http://www.conecomm.com/stuff/contentmgr/files/0/fdf8ac4a95f78de426c2cb117656b846/files/2013_cone_communicationsecho_global_csr_study.pdf http://www.marketingprofs.com/charts/2013/10966/consumers-prefer-brands-associated-with-good-causes http://www.nielsen.com/us/en/press-room/2014/global-consumers-are-willing-to-put-their-money-where-their-heart-is.htm 12 Unemployed Long Term, Not Unemployable: What Companies Can Do To Help
Hiring the LTU Can Increase Access to Quality Talent By hiring LTU talent, businesses can find qualified, engaged, and diverse employees Increase access to qualified and motivated talent A study of nearly 20,000 sales and service workers found virtually no performance difference between workers who were previously LTU and short-term unemployed The same study also found that workers who were previously LTU perform slightly better in average transaction time and schedule adherence A recent study supports anecdotal evidence that the LTU may be more reliable and loyal workers, leading to higher retention rates 30% of the Millennial and Generation X workforce consider employers commitment to diversity and inclusion when looking for employment Housman, Michael. The Truth About the Long-Term Unemployed. Evolv Workforce Insights. 2014 http://www.workinglinks.co.uk/pdf/the%20responsible%20employer%20july%202012%20full%20report.pdf Talent Edge 2020: Building the recovery together What talent expects and how leaders are responding, Deloitte, April 2011 13 Unemployed Long Term, Not Unemployable: What Companies Can Do To Help
Hiring the LTU Can Benefit Our National Economy Hiring the long-term unemployed can help avoid lasting damage to the economy and stop a cyclical problem from turning into a structural one Support the national economy Skills deterioration, a decrease in labor force participation, and an increase in structural unemployment all potential consequences of long-term unemployment could reduce the overall productive capacity of the economy over the long-term and hurt private sector growth The currently high level of long-term unemployment might in itself be a reason that further progress in reducing the unemployment rate, and thus in achieving a more complete recovery, could be slow Former Chairman of the Federal Reserve, Ben Bernanke Hiring the long-term unemployed can strengthen the national economy, thus spurring further private sector growth Executive Office of the President. Addressing the Negative Cycle of Long-Term Unemployment. White House Report. January 2014. http://www.whitehouse.gov/sites/default/files/docs/wh_report_ addressing_the_negative_cycle_of_long-term_unemployment_1-31-14_-_final3.pdf Chairman Ben S. Bernanke, Recent Developments in the Labor Market, National Association for Business Economics Annual Conference, Arlington, Virginia, March 26, 2012, http://www.federalreserve.gov/newsevents/speech/bernanke20120326a.htm. 14 Unemployed Long Term, Not Unemployable: What Companies Can Do To Help
Let s Hear From You 15 Unemployed Long Term, Not Unemployable: What Companies Can Do To Help
Leading Practices for Targeted Recruitment and Hiring 16 Unemployed Long Term, Not Unemployable: What Companies Can Do To Help
Leading Practices for Employers Making a Difference Starts Today Create LTU Strategy Business and talent leaders partner to define talent needs and create a strategy to address LTU hiring Public commitment to strategy & execution Appoint a Champion Senior leader with influence across the organization Committed to education and demonstrating the value of hiring LTU Focus on Accountability Incorporate LTU hiring targets into performance management goals for TA team Recognize and reward efforts Educate Hiring Managers Provide formal training sessions for hiring managers to educate them about the value that the LTU brings Review the business case for hiring the LTU on an annual basis Examine ATS Filters Review ATS prescreening questions to ensure they do not create a bias against the LTU Make adjustments to weighting and knock out questions where needed Partner with Intermediaries Establish strong relationships with local intermediaries and ecosystem partners Post 80% of jobs with at least three selected local and/or national intermediaries Source: A Guide to Recruiting and Hiring the Long-Term Unemployed, Deloitte Consulting and The Rockefeller Foundation 17 Unemployed Long Term, Not Unemployable: What Companies Can Do To Help
Change Starts from Within Recruiter Perspectives The job market is more competitive than ever and that means recruiters are busier than ever. There are often hundreds of applicants per position. Often, recruiters can t give every resume the kind of attention it deserves, so applicants need to get their point across quickly. Recruiting Specialist, Atlanta, GA Source: New Guide, New Destinations. A Handbook for Job Seekers to Navigate Out of Long-Term Unemployment. Deloitte Consulting and The Rockefeller Foundation 18 Unemployed Long Term, Not Unemployable: What Companies Can Do To Help
Case In Point Express Scripts Partnering for Growth Source: Unemployed, But Not Unemployable, Bersin by Deloitte. Robin Erickson, Denise Moulton, October 2014 19 Unemployed Long Term, Not Unemployable: What Companies Can Do To Help
Resources, Tips, and Tools 20 Unemployed Long Term, Not Unemployable: What Companies Can Do To Help
Handbook for Job Seekers The jobseeker handbook provides top recommendations for the job search, offers an overview of available resources and examines the true reality of unemployment. The Find a Job Checklist includes specific actions built out in focused chapters: Understand the Job Search Knowing the unemployment landscape and the employers point of view will help keep you informed and prepared Find the Right Job in the Short and Long-Term Volunteering, building your skills, and being flexible can help you during your job search Tell Your Story Pitching yourself in the right way tells employers who you are and what you can offer Don t Lose Hope Staying positive will help you have the energy/attitude needed to conduct a job search and will show potential employers that you want the job Source: New Guide, New Destinations: A Handbook for Job Seekers to Navigate Out of Long-Term Unemployment, Deloitte Consulting and The Rockefeller Foundation 21 Unemployed Long Term, Not Unemployable: What Companies Can Do To Help Set Your Direction Assessing your career goals help you find success in the long-term Make Connections Reaching out to your professional, community, and personal contacts can be the key to finding your next job
A Handbook for Employers The employer handbook provides recommendations for a variety of audiences with influence on talent acquisition including CHRO, recruiters and hiring managers. It includes vignettes from employers about successful practices as well as valuable resources for employers. Business Case Maturity Model Framework Recommendations Why businesses including leadership, HR, and hiring managers should make hiring the LTU a priority Allow employers to assess their organization across talent acquisition practices that enable fair hiring and access to LTU job seekers Provides related tools linked to steps along the recruiting lifecycle to improve ability to tap into the LTU talent pool Source: A Guide to Recruiting and Hiring the Long-Term Unemployed, Deloitte Consulting and The Rockefeller Foundation 22 Unemployed Long Term, Not Unemployable: What Companies Can Do To Help
Putting the Puzzle Together Tools for Community Leaders The Community Guide is targeted towards community leaders in the public, private or non-profit sectors Provides recommended steps to address LTU in local communities, and a detailed action plan for each step Informs leaders how to maximize the use of the Job Seeker and Employer handbooks Guides the community leaders on how to engage with their ecosystem partners to address the LTU challenge Source: Engage Your Community: A Local Guide to Addressing the Long-Term Unemployment Challenge, Deloitte Consulting and The Rockefeller Foundation 23 Unemployed Long Term, Not Unemployable: What Companies Can Do To Help
Being a Part of the Solution 24 Unemployed Long Term, Not Unemployable: What Companies Can Do To Help
Key Takeaways 1 2 3 4 5 According to the Bureau of Labor Statistics, as of October 2014, 3 million Americans have been looking for work for six months or more The potential consequences of long-term unemployment include skills deterioration, a decrease in labor force participation, and an increase in structural unemployment The White House long-term unemployed initiatives have received a positive reception from the business community with over 300 companies signing the pledge The long-term unemployed are an untapped labor pool and there is a clear business case for employers to target them in recruiting efforts Deloitte Consulting LLP and The Rockefeller Foundation have developed resources to help job seekers, employers, and community leaders 25 Unemployed Long Term, Not Unemployable: What Companies Can Do To Help
Questions? Robin Erickson, PhD 111 S. Wacker Chicago, IL 60606 Vice President, Talent Acquisition Research Email: Deloitte Consulting LLP rerickson@deloitte.com Office: (312) 486 5368 Twitter: @RAEricksonPhD Alice Kwan Principal Deloitte Consulting LLP 25 Broadway New York, NY 10004 Email: akwan@deloitte.com Office: (212) 313 1832 26 Unemployed Long Term, Not Unemployable: What Companies Can Do To Help
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