HR Market Update – April 2024

The economic landscape presents a paradox that continues to perplex the business sector. On one hand, predictions of an imminent recession, underscored by significant layoffs and high-profile store closures like those of the Body Shop, paint a grim picture. On the other, the persistent addition of jobs (40,000 last month alone) and a remarkably low unemployment rate offer a contrasting narrative of resilience.

This juxtaposition is not just confusing—it’s a signal of deeper structural shifts at play.

Central to these shifts is the demographic transformation highlighted by David Foote in his seminal work, “Boom, Bust, and Echo.” Published in 1996, Foote’s analysis foretold a stark reality: the eventual scarcity of human capital due to the retirement of the baby boomer generation. Now, as we navigate this predicted future, the evidence is undeniable. A glance at current population trends validates Foote’s predictions, revealing a stark departure of baby boomers from the workforce, with Generation X struggling to bridge the gap. The demographic of 35 to 55-year-olds, traditionally occupying management and leadership roles, is notably shrinking.

This thinning leadership layer is not only a strategic concern but is also exacerbating mental health challenges among those remaining in charge.

The concern intensifies when considering the pipeline of emerging talent. The under-20 age group exhibits a pronounced demographic shortfall—a massive gap that signals a future workforce crisis. This scarcity poses critical questions about the sustainability of our workforce and the strategies needed to mitigate the impending talent drought. As we ponder the current state of our economy and workforce, it’s crucial to project forward and consider how these demographic shifts will redefine our labor market.

The time to address these challenges is now, lest we find ourselves even more bewildered in the next decade. This discussion isn’t just necessary; it’s imperative for our economic and social future.

To trust the job seeker, or to not trust the job seeker?

Renowned social psychologist Ron Friedman has highlighted a startling statistic: 81% of individuals are prone to dishonesty during job interviews. Additionally, the advent of artificial intelligence has further influenced the behavior of job seekers, with nearly three-quarters contemplating its use to fabricate details on their resumes. A recent study by the Standout CV group reveals that over 55% of applicants, motivated by escalating living costs, resort to falsifying information on their resumes to secure employment.

Moreover, a significant portion admits to lying about crucial aspects such as previous salaries, relevant skills, and work experience, casting doubt on their credibility even before they step into an interview. Furthermore, 51.6% would consider leveraging AI tools to navigate interview questions during virtual or telephonic screenings. In today’s job market, candidates can access extensive coaching to excel in interviews, which might not translate to actual job performance.

At Ahria, we acknowledge the complexity of these challenges and are dedicated to refining our assessment practices to uncover genuine talent. While the allure of cost-effective Pop Psychology approaches is undeniable, they scarcely outperform traditional interview insights. To truly understand and evaluate candidates, our assessment methodology employs state-of-the-art tools designed to identify the critical success factors essential for your organization. When the quality of hire is paramount, Ahria is equipped to guide you to the truth behind the resumes.

Several years back, during a conversation with a client, they mentioned the need to interview candidates for a new position. Aware that this client was relatively new to a managerial role, we inquired about their approach to conducting these interviews. Their reply, somewhat bewildered, was simply, “I am going to interview them.” Probing further with, “What do you understand about the interviewing process?” led to an unforgettable response: “Well, I’m a manager now.” It was as if they believed the new title magically endowed them with the skills for effective interviewing. They then added, “Interviewing – how hard can it be?” implying a significant underestimation of the nuances and complexity involved in the interview process.

Sadly, this person is not an outlier.

Many organizations find themselves underprepared for interviewing candidates, a critical shortfall in today’s competitive job market. This lack of preparation often stems from outdated interview techniques, insufficient interviewer training, and a failure to align the interview process with the company’s strategic goals and culture. As a result, these organizations struggle to accurately assess candidates’ skills, potential fit, and long-term contributions.

Our take?

An unstructured interview process can lead to biases and inconsistencies, further undermining the effectiveness of talent acquisition efforts.

Without investing in more comprehensive interview training, updating their interviewing methodologies, and incorporating structured, evidence-based assessment strategies, these organizations risk missing out on top talent and facing long-term repercussions on their growth and success.

In an era where the landscape of talent is experiencing unprecedented changes, leaving your organization’s talent strategy to chance is not an option. According to Canadian HR Reporter, over 7 in 10 Canadian workers want to quit their jobs within a year. If you’re concerned about how your organization stacks up in the fiercely competitive arena of talent acquisition and retention, we have a solution designed to empower you.  Ahria proudly introduces the People Power Index (PPI)©, our innovative tool crafted to assist organizations navigate the complexities of the talent war.

By participating in the People Power Index, you’ll gain valuable insights without any cost or commitment. We’ll provide you with a complimentary report pinpointing your organization’s strengths and areas for improvement in attracting, retaining, and transitioning talent. Moreover, you’ll have the opportunity to consult with an Ahria expert, who will offer tailored strategies and solutions to align with your organization’s unique needs.

This is a pivotal moment to proactively assess and enhance your talent strategy.

Let the People Power Index be the first step towards securing your organization’s position as a leader in the dynamic world of talent.

CONTACT US TODAY!

Best Places to Work 2024: Ahria is excited to reignite our annual partnership with London Inc. Magazine to discover some of the best workplaces in the London area. Stay tuned – more details to come!

Introducing Tanya Sanderson: Ahria is thrilled to introduce our newest team member, Tanya Sanderson. With an extensive background in the public sector, Tanya specializes in complex HR matters and employee relations – where she has played a pivotal role in enhancing team cohesion and performance. Tanya’s expertise is a welcome addition to our team and will support the evolving needs of our clients.

Spring Leadership Development Series: Ahria’s Leadership Development Workshop Series is meticulously crafted to equip you with practical tools and targeted insights, aimed at amplifying your leadership abilities and bolstering your success in leading roles.

At Ahria, we go beyond merely introducing new concepts and skills; we prioritize the transformation of knowledge into actionable strategies. As a result, each workshop is designed to conclude with participants formulating a detailed action plan.

This plan serves as a roadmap, guiding you on how to integrate your newfound insights seamlessly into your everyday leadership practices, ensuring that the learning experience has a lasting impact on your professional journey.

Whether it’s recruitment, HR advisory, talent development, outplacement, assessment, or coaching – we’re always here to help.

I invite you to book a quick 15-minute chat and let’s have a sounding-board conversation.

We can’t wait to see what 2024 brings.

Terry Gillis
President & CEO
Ahria Consulting