I Heard It Through the Grapevine: Part 2
As I promised you last week, this is a follow-up to what I hear on “the street,” but this time, the stuff that’s not so good. Here we go:
The Bad
Employers are finding ways to skirt the salary requirement in job postings. More states have adopted salary transparency laws. But with these new regulations come loopholes that many employers use to their advantage. A recent study revealed that 31% of employers say they aren’t ready to comply with the laws, and 46% admitted to putting off doing so, fearing the reaction from current employees. Some companies that post salary ranges in their job ads do so in bad faith, listing ranges that can span $100K or more. This is absurd. Everyone knows that there is a realistic, budgeted range for the role. Just be honest about it and stop wasting everyone’s time.
Remote work is here to stay, but some executives aren’t happy about it. You love working remotely. So does your manager and the rest of your team. But what does your CEO think about it? Some CEOs of very large companies have publicly expressed disdain for remote work. Both the CEO of Morgan Stanley and the CEO of JP Morgan Chase believe remote working doesn’t work. JP Morgan’s CEO went as far as to say that remote work is particularly damaging to younger employees, a statement that has been widely panned. Regardless of how any CEO feels, the data shows that remote work works. Facts don’t care about feelings.
There are still a lot of open jobs, but hiring seems slow. “Seems” is the important word here. Unemployment across the US is still very low, although the headlines about recent layoffs in the tech sector might make you believe otherwise. And while jobs in tech may be decreasing, that is not the case in other industries. Most of the layoffs in tech are due to the overhiring these companies did over the last two years. In other words, poor management; layoffs are not reflective of worker performance.
The hiring process is absurdist theater. If you’re a regular follower of mine, you know my stance on the current state of recruiting and hiring. The processes are broken. Some of what I’m hearing include the following: having to submit essay responses to screening questions just to be considered; requiring cognitive and personality tests prior to any interview; requiring applicants to complete projects and deliver presentations; and endless rounds of interviews. I have a client who finally withdrew her candidacy after the hiring company wanted her to endure an EIGHTH-round interview. The candidate experience is declining across the board.
Most companies do a poor job with diversity, equity, and inclusion [DEI] initiatives. Every CEO knows that DEI is important, but very few know what to do about it. And DEI programs are often understaffed and among the first to be cut when it’s time for belt-tightening. However, the core problem with most corporate DEI programs is twofold. First, there is a fundamental lack of vision around DEI. What is the goal of the DEI program? What do we hope to get out of it? Second, employees find such programs to be disingenuous. A CEO can talk DEI all day, but if most company executives are cis white males, that sends a message more powerful than any CEO statement.
Here’s to hoping that companies do better in 2023.