Talent News Round-Up: Trust and Truth, Gen Z, and the Recruitment Downturn
Staying updated on the latest workforce trends is crucial for TA leaders and HR professionals. This week, we delve into three significant developments shaping the talent landscape and get SocialTalent CEO, Johnny Campbell’s first-hand takes on these pieces.
- Our first article is from sourcing expert (and SocialTalent author) Glen Cathey on LinkedIn and it digs into how AI and VCs are transforming hiring.
- Next, we dive into a piece from Fast Company that reports 6 in 10 employers have fired Gen Z hires! Citing a clash in generations, there seems to be a larger debate going on around workplace expectations.
- And finally, the Financial Times looks at how the current downturn in UK recruitment may be set to last. What issues do you think are prolonging this?
Join us as we explore these pivotal insights and their implications for the future of work.
1. Verifiable Credentials: Trust and Truth in an AI-enabled Talent Acquisition Market
Source: Glen Cathey
This article explores how Artificial Intelligence (AI) and Verifiable Credentials (VCs) are transforming hiring. AI enhances efficiency by quickly evaluating candidates, but challenges like bias and privacy arise. VCs, often powered by blockchain, ensure the authenticity of candidate information, addressing these concerns. The synergy of AI and VCs promises a future where hiring is more transparent, fair, and secure, creating a stronger foundation for talent acquisition.
Johnny Campbell’s take on this:
“Another super thought provoking piece from Glen. We looked into block-chaining SocialTalent credentials several years ago but decided the market wasn’t ready for it yet. Is AI going to prove the turning point for VCs, as Glen seems to suggest? I would love to see this come to pass but the real challenge is how we achieve critical mass, a tipping point to make this widespread? Based on some of the comments, perhaps the healthcare sector could be the first?“
2. TikTok Reacts to Survey on why Gen Zers are Getting Fired
Source: Fast Company
A recent survey revealed that six in 10 employers have already fired their Gen Z hires, highlighting a disconnect between younger workers and their employers. Gen Z’s emphasis on self-expression and authenticity in the workplace is causing friction with older generations, who view work as a place to contribute labor, not personal fulfillment. While some criticize Gen Z for entitlement, others question why workers can’t be their best selves at work, sparking debate over evolving workplace expectations.
Johnny Campbell’s take on this:
“You have to laugh when “older person” is surprised about how “younger person” sees the world, a story as old as time. However, beneath this is a serious point. There was a brief time when we all thought it WAS best to bring your whole self to work – that is until some people started doing it! The reality is that we want people to bring their best self to work but we need to make room for the many days and moments when you cannot be your best self and you need support. Getting this balance right is hard, for both employee and employer. Perhaps better education and understanding on both sides would help!.“
3. The UK Recruitment Downturn Looks Set to Last
Source: Financial Times
The UK recruitment sector is experiencing a prolonged downturn, with companies like Robert Walters, Hays, and PageGroup reporting significant drops in net fee income. This slump is driven by both employers and candidates lacking confidence in the current climate, with fewer job vacancies and reluctance to switch roles for minimal pay increases. While AI engineers and legal specialists remain in demand, the broader market struggles. Recruiters are cutting costs and waiting for economic improvements, but a recovery isn’t expected until at least 2025.
Johnny Campbell’s take on this:
“Job moves are down about 15% in the UK and recruitment agency fees are down by around the same amount. We all know this but why is it down? For me there are 3 reasons: 1) Less new jobs: higher interest rates have slowed growth in nearly all sectors but this is likely to change in 2025, 2) Attrition is down to near record 2020 lows of mid single digits; at its peak in 2022 attrition hit mid 20s creating an enormous amount of job opportunities. I’m unsure as to how fast or when this will changes but it is heavily influenced by the first point. 3) GAI is genuinely reducing the need to hire more staff in many roles. I think we’re going to see more and more companies grow revenue without growing headcount!“