Join Quinn Heimann, Director of Strategic Sales at Aerotek, and her colleague Jason Wetherford, Strategic Account Executive for Aerotek, as they delve into the complexities of today's labor market. With over 36 years of combined experience in the staffing industry, Quinn and Jason bring valuable insights into the challenges companies face in attracting and retaining talent. From the impact of competitive wages to the importance of diversity, equity, and inclusion, they explore key strategies for organizations to thrive in an ever-evolving workforce landscape.
Join Quinn Heimann, Director of Strategic Sales at Aerotek, and her colleague Jason Wetherford, Strategic Account Executive for Aerotek, as they delve into the complexities of today's labor market. With over 36 years of combined experience in the staffing industry, Quinn and Jason bring valuable insights into the challenges companies face in attracting and retaining talent. From the impact of competitive wages to the importance of diversity, equity, and inclusion, they explore key strategies for organizations to thrive in an ever-evolving workforce landscape.
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Jason Wetherford: [00:00:00] A lot of the conversations that we've been having with our clients about people within facilities, management facilities, maintenance, retiring, right? We're losing a lot of the knowledge that we have from this industry. So we need to bring more people in. So if we're looking at this as 19 percent group, we're obviously looking to grow it.
We're looking to get more of the Gen Z people into the trades. So what is it going to take to get them in, not only in to the [00:00:30] industry, into the trades, but keep them here because that's going to be huge.
Host: Welcome to connected FM, a podcast, connecting you to the latest insights, tools, and resources to help you succeed in facility management. This podcast is brought to you by IFMA, the leading professional association for facility managers. If you are ready to grow your network and advance in your career, go to ifma.
org to get started. Today we're joined [00:01:00] with Quinn Heimann, Director of Strategic Sales, and her colleague Jason Wetherford, Strategic Account Executive at Aerotek. Together they delve into the complexities of today's labor market. And with over 36 years of combined experience in the staffing industry, Quinn and Jason bring valuable insights into the challenges companies face.
In attracting and retaining talent from the impact of competitive wages to the importance of diversity, equity, inclusion, they explore key strategies for organizations to thrive in an ever evolving workforce landscape. [00:01:30] Now, let's get into it.
Quinn Heimann: Hi everyone, my name is Quinn Heimann. I'm a Director of National Accounts at Aerotek. I've been in the staffing industry and with Aerotek for 13 years. So really excited to be here today to dive into some good information just about the labor market, DEI, and B and what's going on. I've got my partner, Jason here as well.
Jason, good to see you.
Jason Wetherford: Good to see you Quinn. Like Quinn said, my name's Jason Wetherford. I'm a [00:02:00] strategic account executive for Aerotek. And I've been in the recruiting industry and with Aerotek for just over 23 years.
Quinn Heimann: Just, just a few years there, Jason.
Jason Wetherford: Yeah, exactly.
Quinn Heimann: Well, thanks for joining me today.
I'm excited to dive in here with you.
Jason Wetherford: Yeah, for sure. I'm glad to be here with you. Awesome. I wanted to start by sharing who Aerotek is and what gives us a unique perspective on the topic of the labor market. We're a leading staffing provider in North America. And every day we hear about [00:02:30] changes in the evolving labor market and how it's requiring companies to really look in the mirror and reevaluate what they can do to attract and retain employees.
Let's start with today's labor market. What are some of the challenges that companies are facing? When it comes to attracting and retaining talent.
Quinn Heimann: Ooh, isn't that the loaded question, right? We get asked that constantly. So great one to start with. I mean, the most obvious is that there aren't enough workers for all [00:03:00] the job openings.
So there's 0. 7 unemployed workers per job opening. And competition is really fierce, which means organizations are having to really pull out all the stops. And we're seeing companies do that. They're not afraid to pull out, you know, all the stops. Just, you know, just this year over year, we've seen hourly earnings of like production or kind of non supervisory roles increased by 4.
4%. In some industries, like even [00:03:30] more around like transportation or warehouse, it's actually up to 7 percent from a payment standpoint, which is crazy. The other thing is that, you know, There has, have, has been a little bit of decrease in some industries, right? So I know we're seeing and hearing that in the news, but the power still really lies in the hands of talent, Jason, you know, from a large majority, the unemployment rate, you know, still being at 3.
9%. But what I think is really interesting there is that the workers that are ages about [00:04:00] 25 to 54, right? So where you would look to see the large amount of people in the workforce, that number of people employed is still at a 20 year high. So yeah, it's definitely, you know, a challenge right now.
Jason Wetherford: Yeah, that's pretty interesting when you think about what we're hearing on the news about tech layoffs and everything that's going on with the economy.
But overall, it's still a very tight labor market currently. How does that, how does what we're seeing today compare to what we've seen in [00:04:30] past years?
Quinn Heimann: Yeah, I mean, you hit the nail on the head there, right? So, despite a recent slowdown in hiring, workers are still faring pretty well in this labor market.
You know, unemployed workers specifically are still finding jobs at a pace, but still It's kind of roughly equal to what we saw pre pandemic and, you know, the ratio of job openings to unemployed workers really held steady in the most recent jobs report. And it's above the pre pandemic ratio. So you [00:05:00] know, with that being said, the layoff rate also is still at historical lows.
So it's about 1%, which is 20 percent below the average rate, you know, pre pandemic, which was like 2017 to 2019. You know, and I know we've talked a little bit about this already, but compensation, right? If you look at like the employment cost index, I mean, that's actually increased 1. 1 percent just in the second half of this year.
So. Yeah, really is, you know, when you look at the today's labor market compared to past years, like [00:05:30] it's still, it really is an employee market right now.
Jason Wetherford: Right. When you say it's, you know, workers are still faring well and an employee's driven market. I mean, can you talk about some of the things that job seekers and employees are demanding from employers?
What are we seeing out there currently?
Quinn Heimann: Yeah, I laugh a little because, Obviously, we know it, I mean, it starts with what no one really wants to talk about, but market, pay, wages, right? Right. Like, insuring competitive wages is the only way [00:06:00] to be an employer of choice and really assure that you can attract and retain employees.
I mean, from the, you know, from the conversation around like, hey, the lowest somebody would be willing to take a job. I mean, that's actually, you know, Increased by 8 percent from July of last year. And that's based on some surveys that were done by like, you know, New York fed and some of these other labor market analysis groups.
Jason Wetherford: That's huge.
Quinn Heimann: Yeah. And I don't know if you remember, but Aerotek did a [00:06:30] big job seeker survey. And one of the results that we found out from that is that pay is still the number one job motivator. And that's by a long shot. So people who are looking for jobs right now, if their financial situation was the same or worse than it was in 2022, that is their biggest motivator.
The second thing though, let's talk not just about pay, right? Not just about laughing. Right. The second thing, though, is we are also seeing, like, a ton of folks that are interested in opportunities to learn [00:07:00] new skills. And that really came in right behind pay and job security on that survey that we did.
It was the third most important factor for job seekers. And me being a little bit kind of data driven, I always love to say, okay, so the survey that we did, does this align with what we're seeing elsewhere? And it definitely does. Gallup, right, Jason, which is a pretty big group that runs surveys and studies.
They did a recent one and saw that 48 percent of American workers would switch to a new job if [00:07:30] offered skills training opportunities. And 65 percent of workers said that they believe employer provided upskilling is really important when they're evaluating a new potential job or opportunity. So I think market weight rage as we know is huge, but then also this kind of focus on opportunity to learn new skills.
Jason Wetherford: Right. I think that as we were going through the pandemic, coming out of the pandemic, and everybody was just, I mean, we were just, we took off on a [00:08:00] rocket ship and everybody was. Throwing money at people. There was, we, we saw a lot of that, just throwing money at people to get them into jobs, to get them into, you know, doing the work.
So it is honestly nice to see. You know, some of these statistics about other things that are important to job seekers, like opportunities to learn new skills. It's not just all about, Hey, we're going to give you 50 cents more. We're going to give you 2 more. They are also interested in opportunities to gain new [00:08:30] skills and to improve their abilities on the job.
So that's a great thing to see.
Quinn Heimann: Definitely. With that being said too, DEI, diversity, equity, and inclusion is definitely a talking point as well.
Jason Wetherford: Absolutely.
Quinn Heimann: You know, I think that is something we're seeing job seekers be more interested in jobs this year as well. Again, going back to some data, Monster did a, did some recent research and found out that 86 percent of job seekers that kind of come through Monster believe that a [00:09:00] company's approach to DEI, diversity, equity, and inclusion is Is an important factor when considering a future employer, specifically the facilities and with our job seeker survey, we found out that 19 percent of recent applicants for facilities and maintenance positions.
We're between the ages of 18 to 24. And that's interesting. Yeah, exactly. Because that particular generation and that age group, they're specifically really [00:09:30] looking for a commitment to DE& I. That, that generation, right, Gen Z, right, kind of born between 1997 and 2012, they're part of what we're now referring to as the first majority minority generation.
And what that means is that more than half the members of this group don't identify as white. And in addition, more than one in five. Or about kind of 20, 21%, if you want to put a number on it, identify as part of the LGBTQ plus community. [00:10:00] So yeah, for Gen Z, a company stance, you know, from inclusive language to flexible benefit policies, employee demographics really is going to signal how, you know, Gen Z and their peers are going to be likely to be treated in your workplace.
Jason Wetherford: That's really interesting too, because, you know, a lot of the conversations that we've been having with our clients about. People within facilities, management facilities, maintenance, retiring, right? We're [00:10:30] losing a lot of the knowledge that we have from this industry. So we need to bring more people in. So if we're looking at this, this 19 percent group, we're obviously looking to grow it.
We're looking to get more of the Gen Z people into the trades. So what is it going to take to get them? And not only in to the industry, into the trades, but keep them here because that's going to be huge. I'm part of our SS& O team's diversity board, and we've been hearing a lot [00:11:00] about not only DE& I, because that's kind of table stakes at this point, but a new thing that we've been hearing about is belonging.
Can you talk a little bit about belonging, DE& I, and B, and why is that important when we're looking to attract and retain new talent?
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Quinn Heimann: Oh, I'm so glad you brought that up, because belonging is kind of a new word, right? And belonging kind of in the context of work refers to like a, a, [00:12:00] person's sense of being accepted by not just their colleagues, but the organization as a whole.
And when someone feels like they belong, it means they feel valued and safe enough to bring their whole selves to work. And so again, looking at what's been trending in the recent years, employee engagement in the U. S. has declined a little bit from about 36 percent of engaged employees in 2020 to 32 percent in 2022.
And notes that come along with that [00:12:30] is feeling cared about at work or connected to an employer's mission or among the engagement elements that decline the most, specifically for women and this younger generation of workers.
Jason Wetherford: That's really interesting. It's definitely like I alluded to, and that speaks to it.
You can bring people in to your organization. But if they don't feel like they belong, if they don't feel like they're part of the team, if they're not part of the organization, eventually they're going to leave. [00:13:00] So belonging is important. Incredibly important.
Quinn Heimann: Absolutely.
Jason Wetherford: If you can't see it, you can't be it.
I think that's one thing that we've talked about a lot. If you can bring a diverse group of people into your organization, but that if they don't feel like they're part of the team, if they don't see the opportunity in front of them, if they don't see people like them being successful and moving up in the organization, they're going to go somewhere else, so that's really important.
Quinn Heimann: Yeah, I like that little thing there.
Jason Wetherford: Right, right. Do [00:13:30] you have any examples of how some employers have been kind of improving their E and I and B in the workplace?
Quinn Heimann: Yeah, I think from an example standpoint, it starts with education. So building a more diverse kind of equitable workplace starts with really just the understanding and the education.
So one thing we do here at Aerotek is we've committed to training every employee on how they can improve our culture. We invest in our people to create like more inclusive leaders and employees at [00:14:00] every level within the organization. On top of that, there's building those employee manager relationships.
So HR leaders looking to promote a sense of belonging by guiding managers on how to establish trusting relationships with team members. And it begins with respectful communication and open dialogue across kind of all levels of the organization. Nurturing people's strengths, Jason, is another one. You know, from leaders and managers, it's like, hey, how can you acknowledge professionals achievements [00:14:30] and talents to motivate them to continue contributing quality work?
But then also championing diverse representation within their organizations, within the industries that we serve. Aerotek has been really devoted to advocating for underrepresentative employee communities through different structured programs and partnerships that we do. SkillsUSA has been one that we partnered with in terms of trying to fill some of the skills gaps and get folks some of that extra training that [00:15:00] they've been wanting.
And then the last thing, I think just when you're looking at like, hey, how do I improve DE& I and be in the workplace? You gotta have transparency. So addressing diversity and inclusion, whether it's in your company code of conduct, so your managers can properly support people, you know, clarifying rights, making sure your work conduct is aligned with company values.
And then also like, are you measuring progress within those efforts? I think that's really critical to evolution. So [00:15:30] one thing that we always look at is like, Hey, you know, are you communicating your plans, communicating the challenges you're seeing, communicating successes, all with transparency. Because that's what people are asking for.
Jason Wetherford: Absolutely. I mean, you have to be transparent, right? If there's no transparency, then there's no point in doing it. And part of that is admitting that, Hey, as we're doing these, it's not going to be perfect all the time. Well, this is a work in progress, but the key is that you're just doing the work. So I think that's, I think that's great [00:16:00] advice.
A lot of the things that we talk about, you know, there's, they're kind of They take, you know, there's a lot of time. They take a lot of time. Is there any kind of short term solutions that you've seen or anything that employers can kind of utilize to ensure they're being inclusive to their employees now in the short term?
Quinn Heimann: Yeah. I mean, I don't know if I'd say short term, but like quick things that they could look at. You know, one is removing gender coded language from job description. Right. So sometimes an employer will have really [00:16:30] great intentions. But then, you're kind of removing yourself from some of the competition for talent because of an improperly worded job listing.
So gender coded language, like words or phrases that readers may associate with only a particular gender in job descriptions, getting rid of those can really help make opportunities seem more appealing and welcoming to everyone. Um. Right. So some examples, right? Like words that can, that could really connotate masculinity or femininity [00:17:00] specifically in like facilities and maintenance industry, right.
Termed like tradesmen, journeyman, you know, according to the employers council, like consequences of using gender coded language show up in the applicant pools, diversity. And then as a result, it shows up in the diversity of your new hires. So that's just really something to keep in mind. You know, Goldman Sachs realized that they saw a ton of results when they just removed the word aggressive from their ads.
[00:17:30] Like hiring women increased dramatically, you know, almost to the point where they now have a workforce of 50 percent women and a huge, yeah, they had the word aggressive in their job descriptions. And The other thing, Jason, that, you know, I, I also say is like candidates coming from a referral are four times as likely to get hired than other candidates.
So I think that's awesome. However, if you leave your referral program kind of unchecked, it can [00:18:00] also lead to companies that aren't hiring a diverse pool of candidates, right? So it can be a little bit of a double edged sword. Like you, you definitely want referrals. However, research shows people tend to refer people that are just very similar to themselves.
So, I mean.
Jason Wetherford: You don't want a company full of frat bros.
Quinn Heimann: Yeah. So having a well designed referral program can really be set up to support your diversity goals and just making sure that program isn't kind of, you know, unchecked.
Jason Wetherford: That's great [00:18:30] advice.
Quinn Heimann: The other thing that I just realized, you know, I forgot to mention, organizations within, in your community.
Aerotek, we're constantly looking for, hey, how are we partnering with community organizations to unlock pools of candidates? And that's also something you have to be looking at. What are there non profits that are local to where you're doing business? Community organizations, groups, schools that would help you unlock some pools of candidates that maybe you wouldn't have seen otherwise or who maybe would have a misconception that [00:19:00] they wouldn't be a hired or a fit for your company.
So that's really great. There's a lot of local non profits in cities that will serve under representative groups. Who are extremely willing to work and they'll help you organize career days or mentoring. Some of them even do internship programs for these underrepresented groups.
Jason Wetherford: That's awesome. I mean, sometimes the workforce that you're looking for could be right under your nose and you don't even know it.
If you just, you know, expand your search and expand your horizons. [00:19:30] What vendors can companies partner with to help deliver on those strategies to attract and retain new talent?
Quinn Heimann: I've been doing it for 13 years. I think staffing partnership can really make a difference in the labor market, like the one we're in.
So looking at vendors that are taking these things seriously, that are doing their research and figuring out ways to align themselves to the current labor market is really going to be important for strategy there. And with that being said to. [00:20:00] Whether it's an internal vendor that you already work with or external, it's asking some of these questions, getting really curious on what they're doing and how they're looking at it.
You know, at Aerotek, we specifically try to look at not only the customer and the culture that they have, but also the geographic location that they're in to understand, you know, what the talent is. Needs to have to be able to thrive in that particular location and culture.
Jason Wetherford: A lot of companies that we talk to and a lot of the managers that we're working [00:20:30] with, they don't know what they don't know and they are doing things how they've always done them, right?
Which was, which is a very dangerous place to be these days. But if you're not expanding your horizons and, you know, reaching out to some of the other partners or vendors that are available to, to provide you with information, you're really missing out because, you know, there are companies that work with, you know, companies like ours that work with You know, 10, 15, 20 other companies in [00:21:00] your market, in your area.
And so being able to utilize that information and that knowledge base to kind of expand how you're currently doing things, maybe bringing in one or two tips or tricks to attract, uh, different talent pool, new talent pools. Can really go a long way. So I think you brought up some great points there, Quinn.
Quinn Heimann: Thank you. As we wrap up here, the one thing I will say, I hope this information is helpful and part of the conversation. It's something that everybody has to be doing, right? It's a [00:21:30] team effort to really change the way that we look at the labor market right now to grow in these spaces and grow the talent pool.
So it's going to take, you know, a little bit from everyone to, to really get us where we need to go. Appreciate you taking the time today, Jason. This was great.
Jason Wetherford: Likewise, Quinn. Thank you so much. I really enjoyed it.
Quinn Heimann: Thank y'all.
Host: Thank you so much for listening. I hope you really enjoyed this episode. And as always, please don't forget to rate, [00:22:00] review, and subscribe to the podcast for more incredible content.