Workday has published the latest edition of its semi-annual Global Workforce Report (registration required). The report draws data from the Workday platform and other sources. It highlights trends around hiring and retention without a global workforce.
Over the last six months, job requisitions have increased by 7%. However job applications have increased by four times more, 31%. This appears to have led to recruiters increasing the bar for applicants by increasing work experience and qualification requirements. 72% have done so.
However, while this may seem like good news for organisations, retention is a challenge. 75% of industries are seeing an increase in voluntary turnover, specifically by high-performing people.
In the previous report, the three industries with the highest voluntary attrition rate were Healthcare (24.3%), Public Sector (17.3%) and Energy & Utilities (8.4%). In this report, while Energy and Utilities have dropped by 31.3% to 5.8% and are now 7th highest, many others have increased. The top three are now:
- Healthcare (21.8%), though it has fallen
- Communications, Media and Technology, which rose 150.1% to 13.8 %
- Public Sector, which also fell by 34.3% to 11.4%
The countries surveyed mainly saw an increase in both requisitions and applications. The exception was the Netherlands, which saw applications fall by 6%.
The report dives much deeper into the trends different industries face around these subjects. However, Workday believes that AI may provide an answer to employee retention and additional applicants.
AI can make a difference.
While organisations are adopting AI, the report found it is far from fully integrated within businesses. Only 16% use AI or Machine Learning (ML) to support the hiring process. Moreover, only 26% use it to assess candidate skills through online tests.
The use of AI for hiring is likely to increase, with 77% planning to slightly or significantly increase spending next year on AI/ML for hiring tools. AI brings significant benefits, with 70% seeing it as providing a fairer process and 89% believing it increases efficiency.
AI can also help with retention. The top three factors for employee loyalty are growth, belief in a clear strategy, and fair compensation. Additionally, 37% of workers who believe they have meaningful work feel more accomplished.
Another benefit is that automation removes some of the manual work, increasing employees’ ability to conduct meaningful work.
One of the fascinating diagrams in the report flags the top five factors influencing loyalty in relation to tenure. The results are surprisingly fluid after the top factor and make interesting viewing.
The organisational fit is highest for those with less than a year of service. For those who stay up to four years, it is their career path. For those over four years, it is adequate compensation.
Daniel Pell, vice president and country manager, UKI, Workday, said, “The findings from the report show that the market now favours employers rather than employees.
“However, with the war for talent ongoing, leaders must still listen to what job seekers are searching for as the data shows they increasingly want to strike the right productivity‑flexibility balance and be offered career development opportunities alongside a fair salary. Wage growth in the UK is also expected to moderate in 2024, which may potentially impact negotiation power for job seekers.”
What is in the Global Workforce report
The 30-page report is based on external and internal resources, including research from Hanover research with a sample of 1,000 people. The study also leverages over 7.5 million unique responses from employees of Workday global customers who use Workday Peakon Employee Voice. Other data is sourced from Workday People Analytics, Workday Recruiting, and HiredScore.
The report consists of commentary, data points, analysis and data visualisations. The data visualisations vary and bring insights that bring truth to the saying a picture says a thousand words. The report begins with a summary and foreword and then has four main sections.
- The major workforce trends in this report
- Report highlights
- Industry insights
- Restoring trust in the employer-worker relationship
The key trends highlighted above were:
- Employers hiring but significantly raising the bar
- Top workers may be the first to go
- Meaningful work creates more resilient and loyal employees
Each trend includes commentary about why it matters. It then links to further content showing what organisations can do about it. There is also a deeper dive into the trend.
The report also includes two case studies. The first shows how Workday uses the Work From Almost Anywhere (WFAA) programme to introduce greater flexibility for its employees. The programme enables workers to work 30 days from any location with support from the Workday platform and includes an application to simplify approvals. The programme has increased employee engagement, productivity, and satisfaction.
The second reveals how AdventHealth uses AI-powered HiredScore, a Workday company, to improve recruiting outcomes.
Using HiredScore’s AI-powered tool, the organisation reduced Agency spend by $68 million in the first year by doubling the number of job requisitions it closed within 90 days. The HiredScore solution identified historical applicants, and 77% of the requisitions were closed using them.
Enterprise Times: What does this mean
Organisations face tough times as they seek to retain top talent and subsequently recruit it. With a growing number of candidates, AI can help filter those who do not meet the requirements without bias.
With the addition of HiredScore, Workday solutions can now help in the recruitment process. PeakOn and Workday can assist business leaders with retention through better listening and career support.
The Global Workforce report is well put together, and as it draws from multiple data sources, the lack of a qualitative survey is not missed. It’s a powerful piece of research that should be looked at by business and HR leaders.
