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Bias in AI recruitment: four ways to solve it and pave the way forward

Posted on June 23, 2022 by naveen

AI adoption was well underway far before 2020, and leaders across industries were finding ways to incorporate it into the operational model. But as the pandemic came around and forced large-scale digitalization, a PwC study reported that 52% of companies saw this as a catalyst for AI adoption.

This seems only logical, as AI is arguably the best technology for a world forced digital. What’s more, there are obvious upsides, namely better productivity, heightened innovation, and more efficient problem-solving. In fact, a 2021 report by Gartner suggested that the global AI software market in 2022 will total $62 billion. This will be a nearly 21% increase from 2021 and indicative of the fact that AI adoption isn’t slowing any time soon.

Naturally, the use of AI has trickled down into HR processes. Now a notable part of the recruitment process, AI offers many benefits including a faster interview process, increased objectivity, improved quality, heightened experience for candidates and reduced costs. A significant advantage is AI’s ability to provide objective results and eliminate common human errors in the recruitment process. But like any technology, it has its bugs. Research suggests that AI recruitment algorithms can increase the bias against women.

While gender bias is one form, other types of biases in AI recruitment can harm an organization’s goals and success. But as AI maturity sets in, organizations can successfully implement AI in recruitment for the right outcomes. To understand these vulnerabilities for bias in AI recruitment, how organizations can tackle them, and its potential going forward, read on.

Bias in AI recruitment

A key reason for AI recruitment technologies to result in biased results is that humans primarily train these algorithms. Algorithms defined with bias can neutralize the positives that AI brings to the table. For instance, algorithms can pick up on cognitive bias, such as confirmation bias, gender bias, or affinity bias. Here, the main vulnerability is during the assessment of poor prior decision-making. Both past and present decisions can lead to bias in AI recruitment.

When AI algorithms look to learn from prior decisions, it looks for patterns to form the basis for future decisions. Studies reveal that AI predictions based on past hiring decisions can reproduce the same patterns of inequality in all recruitment strategies, even when sensitive characteristics get eliminated. As a result, HR professionals relying solely on the outcomes and predictions of AI will unknowingly make biased decisions.

For instance, bias appears when the algorithm scans and ranks the applicants based on specific traits present in the original data. When an application demonstrates certain traits that are different from the original input, the algorithm can downrank the candidate, even if the traits are irrelevant to the job.

Strategies to tackle AI recruitment bias

Companies can successfully use AI for recruitment with strategic planning and implementation. These strategies can help organizations identify the source of the bias and deter it from spreading further. Here is a breakdown of these tactics for deeper insights.

Maintain meaningful human supervision

According to research, organizations can improve performance when machines and humans work together. While implementing AI in recruitment protocols, organizations need to ensure that their AI software is human centered. This is because employers can add the human quotient and pick on the cues that AI cannot detect.

This enables informed decision-making that isn’t solely reliant on the technology’s insights. For this to be effective, employers need to be conscious of the bias they bring to the table and ensure that it doesn’t play a role in their decisions. Ideally, companies should have a diverse committee responsible for catching bias occurrences that would otherwise slip through.

Rely on proven techniques and AI models

Tried-and-tested techniques can assure organizations that the AI model they rely on will work favorably. While these do require a fair bit of tailoring, proven AI techniques can help organizations reduce bias as well as make it more cost-effective. Proven AI techniques can help the hiring team receive relevant and unbiased data, as well as allow them to focus on other characteristics during the interview. This includes non-verbal cues, body language, and other things that AI can’t yet analyze accurately.

A successful example of such a tactic in motion is the hiring practice at Unilever. The organization uses brain games and AI to compare and analyze candidates’ skills. This can help the company significantly improve diversity in the workforce. This works for Unilever because despite the new technology, they have adapted it to work with a traditional and effective technique.

Perform audits and rectify the data

AI algorithms left unchecked are a major cause for concern. They can reproduce the same biased decision, effectively hampering the organization’s efforts to eliminate bias from the recruitment process. This is why it is imperative to perform regular audits. These help managers pick up on problems that hinder the algorithm’s ability to procure desired results. One of the top reasons AI bias creeps into the recruitment process is inaccurate or incomplete data used for training purposes.

Leverage AI-supported models in the metaverse

As the metaverse gains popularity, it is important to consider that this can be an avenue to reduce unconscious bias in human behavior. Unconscious bias becomes challenging to eliminate because the recruiter is not even aware of it. Generally, such bias is based on cues like voice, physical appearance, gender, age and more. In the metaverse, these sensory cues can be stripped away because of the avatars.

When sensory cues are hidden from the interviewer, it decreases the chances of a biased decision. Moreover, organizations can use the metaverse for sensitivity training and work towards reducing bias and biased practices. With AI, the metaverse can also allow HR employees to experience things from a different perspective, which can come in handy when training to eliminate their unconscious bias.

Future outlook of AI in recruitment

Research suggests that AI will shape the future of the workplace in many different ways. With employees and AI working parallelly, AI can ease the load of routine tasks and give employees time to devote their focus on cognitive tasks. A 2020 report also suggested that while AI will displace nearly 80 million jobs, it will create around 95 million more jobs. However, effective and productive use of AI in business processes is only possible when organizations understand its limitations.

Conscious planning, while important, helps successful implementation, but it is also easier said than done. Thankfully, nearly 67% of HR professionals believe that AI in recruitment can benefit these processes.

From the candidate POV, a survey by Talent500 found that 85% of the candidates value their interview experience while evaluating job offers. AI technology is known to enhance this journey when done right. To leverage AI in the recruiting process and ensure it works advantageously, partner with Talent500. Our AI-backed solutions ensure that you get the right match from the pre-vetted talent pool. We also ensure improved engagement and efficiency, with up to 5x faster hiring capabilities and 60% higher recruiter productivity. Schedule a consultation to know how we can tailor these services to suit your needs and leverage AI in recruiting effectively.

Work flexibility: 4 tips organizations can try to attract top talent

Posted on June 22, 2022July 19, 2022 by temp

The pandemic has not only resulted in an irreversible shift in the dynamics of work, but also created a new breed of mobile employees. Today’s workforce prizes autonomy and flexibility, often more than traditional triggers that attract and retain talent like compensation and benefits. Not only is a higher number of top talent demanding flexibility, but many are also willing to look for other opportunities should it not be offered.

The Talent500 State of Talent survey in 2022, conducted among 4,800 professionals across Indian cities, reveals this sea change in mindset: 87% of the tech talent are actively considering a job switch in 2022, and the primary reason for 55% of respondents is a lack of work-life balance. Further, for 83% flexibility is the top consideration for accepting a new offer.

Brushing aside these statistics as a pandemic reaction rather than a pandemic epiphany, can only add woes to an organization’s recruitment drive. Companies today are dealing with record highs in attrition rates and the intense competition in order to bag the right talent. After all, having greater agency over their lives, better control over their schedules, and the freedom to work when their productivity is highest, is what drives the workforce of today.

This phenomenon is not limited only to India or Asia, but complements sentiments across the globe. As per a survey by Slack, 72% of the employees prefer to work in a hybrid model. Other research also found that employees from the US value the flexibility to work from home for 2-3 days a week as much as 7% pay raise. What’s more, 40% of the employees who currently WFH would look for another job if required to work from the office.

While the why is easily understood in the advantages that flexibility offers employees – in terms of reduced stress and chances of burnout, higher job satisfaction and productivity –implementing flexible policies comes with other benefits for an organization. This includes increased loyalty, improved brand image, better employee morale and a larger talent pool to dip into. However, one fact that stands out among all these is the impact of flexibility on employee retention and attrition. After all, 89% of the companies saw better retention because of flexibility. And while it comes with its challenges, organizations can successfully implement and manage flexibility with the right frameworks in place.

Implementing flexibility – 4 tips for organizations

Flexibility involves both give and take. To foster fairness and accountability, here are a few pointers that leadership teams should keep in mind when implementing flexible policies.

Strengthen communication

Research indicates that 86% of employees and executives believe that ineffective communication causes workplace failures. When virtual, remote sessions overtake physical, face-to-face meetings, it is important for organizations to ensure that the employees are able to communicate with each other without any challenges or lags. While internal messaging tools, emails and video calls are all a must-have, what is critical is for managers to establish a clear guideline on which modes of communication require immediate attention and which matters require urgent communication such as those regarding deadlines or availability.

This helps employees respond to time-sensitive matters with ease and be accountable in remote settings. Since communication is so vital to success in such cases, companies can also offer soft skills training to boost this skill. In fact, 65% of employees who received training for communication had a higher performance score as per another survey.

Keep employee expectations clear

In flex work, making expectations clear to employees can help leaders track their performance as well as ensure that employees know the objectives of the employer. Employers can, and should involve employees in the goal setting process. This not only helps employees understand how their work contributes towards organizational objectives, but also feel a sense of ownership and engagement.

In fact, only 30% of the employees agree that their managers involve them in goal setting and these employees are 3.6 times more likely to be engaged as per a Gallup report. Research also suggests that productivity increases by 56% when managers help employees align their goals to the needs of the organization.

Spell out flexible policy terms clearly

Documenting the options that employees have when it comes to flexible work is key to ensuring smooth operations. Such formal policies can help organizations avoid inequities that come with informal and non-recorded arrangements and also help propagate company culture better. It is also necessary that managers or leaders put together the required details before the arrangement comes into effect.

While this may postpone how soon you can offer its benefits to your workforce, it does pay in the long-term. Include the working terms, infrastructural and other requirements, measures for keeping data safe, health precautions, and more in this policy and make it easy for talent to access them (such as via cloud) when needed.

Review performance

Performance reviews, a part of the traditional work arrangement, also have a big role to play in fully remote or hybrid models. For these to work, organizations need to be transparent about KPIs and other metrics used to measure employee productivity and impact. The only change when it comes to flex work is for employers to consider having such reviews at shorter frequency. This helps employees adapt better, keep their eye on the prize, and work towards achieving company goals in a more informed manner.

Managing flexibility – 3 ways for organizations to take the reigns

Implementing flexibility can come with certain disadvantages like procrastination, decreased engagement and loss of workplace culture. Here’s how companies can tide over these for a net positive gain.

Leverage technology

Tech has a starring role to play in most aspects of work today but enjoys the spotlight most when it comes to successfully implementing flex work. Organizations can and should use it to help teams collaborate, plan, learn, and adapt to evolving needs. According to this study, more than 80% of the employees stated that technology empowered them to better communicate and collaborate. Tools that help mitigate cybersecurity risks and keep sensitive information secure are also a must-have.

Make data accessible on a need-to-know basis

With everything going digital, employees need to have access to required data with ease. Easy and instant access to it makes them more productive and keeps them engaged. While this is highly valuable to organizations, a noteworthy aspect is to ensure that employees get access only to data that falls within their responsibilities. With ransomware attacks rising to 35%, a need-to-know access to data can reduce this risk and prevent data leaks.

Encourage collaboration

Collaboration can nurture stronger bonds within teams and boosts engagement. Research by Gallup suggests that those who have close workplace friends are 7X more likely to have better output, higher personal and customer engagement and enjoy greater well-being. To catalyze such relationships, employers can plan virtual celebrations, create intimate virtual spaces for employees to connect with each other, do a daily virtual huddle, and even create separate channels for specific categories as needed. Planning physical retreats as often as possible can also work wonders.

There are many companies who have successfully embraced workplace flexibility including Dell, Unilever, Sodexo and Humana, and yours can too. As a partner in aiding your efforts to hire, manage, and build global remote teams, look no further than Talent500.

With automated hiring processes and pre-vetting of profiles, we can help you find talent that adds value 5x times faster. Our in-depth pre-assessment has helped place 300,000+ professionals and build teams in 50+ organizations. Request a consultation now to know how you can leverage our tools to effortlessly manage and build your remote workforce.

3 challenges and solutions for building strong company culture in a globally distributed workforce

Posted on June 22, 2022June 22, 2022 by naveen

It’s no secret that organizational culture impacts company success as well as employee satisfaction. A positive culture of shared values and healthy workplace behavior enables and empowers employees and managers to be engaged, driven, and loyal. Strong organizational culture also attracts a talented workforce. Nearly 77% of candidates look at the workplace culture before applying for a job, according to a report by Glassdoor. This suggests that a negative perception of an organization’s culture can make it challenging to fill open positions and retain top talent.

While instilling culture across the organization is a challenge in any setting, the COVID-19 pandemic underscored its importance as it significantly impacted productivity and forced leadership to evolve to the new normal. Their reassessment and reevaluation either strengthened the work culture or diluted it. Nevertheless, be it a fully remote workforce, or a distributed team working on a follow-the-sun model, culture is key to creating a sense of genuine connectedness and belonging.

Increased stress, lopsided work-life balance, isolation and job insecurity have all contributed to lower productivity of distributed teams and remote workers in recent times. This is only compounded by company culture that is transactional rather than relational. In fact, companies that managed to instill positive organizational culture, offering their workforce flexibility and transparency, saw big gains. Not only are 68% of teams evaluating their culture to better reflect the new normal, but 62% of remote and hybrid employees and 52% of on-site employees said that their workplace culture had a positive impact on their work as per a 2021 report by Gartner.

Here’s a deep dive into the challenges and means of scaling organizational culture in a globally distributed workforce.

Challenges of building workplace culture in distributed workforce

Fragmented and dispersed workforce

One of the ways to cultivate workplace culture is through shared experiences. In the past, these took shape as shared learning seminars and other such in-person activities. Unfortunately, due to the pandemic, such interactions aren’t as frequent or are fully digital when they occur, and thus lacking in one way or another. This makes building and enforcing a strong work culture challenging in a distributed workforce.

Too much transparency in the workplace

While transparency is essential, especially now, too much is problematic. Companies with an overly transparent culture often face issues of over-sharing, which in turn hampers the ecosystem. For instance, too much transparency about financial struggles, losses or even salaries can lead to unrest, detrimental competition and even unwarranted dismissals.

Increased pressure for productivity

Spurring productivity, while essential to any organization, is among the hurdles companies will likely face when building the right culture. Both managers and employees can make it difficult to set the right values or even act in accordance with them when there is pressure to boost productivity. According to research, 50% of senior leaders stated that this type of pressure is one of the biggest challenges in creating a positive culture.

How organizations can build a strong culture in a globally distributed workforce

Be intentional about culture and celebrate cultural differences

Having a set of principles or values that leaders and the top tier of management believe in and act on, is step 1. Bringing up workplace culture from onboarding and throughout the employee work cycle is key to it being taken seriously. While it is important to have a culture that all employees can share, it is also important to accept and honor diversity. An empathetic culture is mission critical in a globally distributed workforce, since companies are now expected to be diverse. According to this study, 84% of the CEOs said empathy drives better outcomes; the same study also said that 90% of GenZ employees are more likely to stay if the organization has an empathetic culture.

Leverage technology to better communicate and collaborate

Communication and collaboration are critical tools that support organizations in building desired workplace culture. Remote working can have a negative impact on both of these and active measures to counteract such gaps must be put in place. Organizations can assign mentors to the new hires, have online team huddles, and upgrade to technology that streamlines communication. Only through effective communication can the values be imparted into every sector and silo of the workforce.

Lead by example

Actions speak louder than words. For culture to truly set in, the organization’s values must be actioned by top management and the board of directors. Leaders should believe in what they say and do to get the desired results. On the other hand, leaders acting in opposing directions can create distrust among the employees, which then further deteriorates into a negative perception of the workplace. Simply put, when it comes to building the right culture, a ‘Be. Do. Say.’ style leadership is necessary.

Apart from the above measures, organizations should also rely on the in-country experts when managing a distributed workforce. This means that even though company values would be at the forefront in communication between employees, in-country experts should be at the forefront in matters concerning monetary and non-monetary compensation. This is because there are different customs and laws that come into play.

Dependency on the experts here can help with compliance and stronger culture. Talent500 can help you build and grow your global workforce in a seamless way with our AI-powered tools. Request a consultation now to know how we can help you manage your workforce, stay compliant, and engage with employees to cultivate a strong culture.

How to converse effectively with clients as a front-end developer

Posted on June 17, 2022July 21, 2022 by venkatesh

For front-end developers, communication is an essential skill. In contrast to backend developers, they have the active participation of stakeholders in their work. Whether working on a small website or a large-scale application, you will actively communicate with clients.

Speak with confidence

Confidence in your communication is a must to subconsciously convey to the client that you are an expert in your domain. Front-end developers have a lot to discuss with clients, project scope, design, timeline, cost, etc. Everything must be conveyed with the clear objective of informing the client.

If you are wondering how front-end developers include confidence in their communication, here’s an example:

Suppose you have a feature that will make a client’s site faster, then your tone must reflect that you know what you are talking about.

“I think it will help make your site faster” is an unappealing statement. Instead, you should use “By reducing the number of HTTP requests to the browser, I will significantly improve site performance.”

Here the difference is that you sound confident, and the client knows precisely what you will be doing and how it will affect the project.

A word of caution here is to keep in mind to be respectful. During large web projects, there will be thousands of elements and components to work on. Something will slip through the cracks, do not be accusatory. Gently discuss with clients about project requirements or missed tasks.

Communicate roadblocks with a strategy

Clients are an essential part of a business. To get them on the same page, you need to structure your conversations around their needs. It is vital to keep them informed and included in the development process.

Most front-end developers tremble when they have to communicate roadblocks with the client. But it is not that difficult; think of it the same as creating a website’s front page.

You think about the action you want the visitors to take. In this case, navigate the client through the issue without aggravation.

Have a call-to-action ready that speaks to the client and paves the way for communication.

Design the rest of the page, i.e., the conversation around getting the visitor (the client) through the conversion funnel (talking through the issue).

Let’s see it through an example. Suppose you face difficulty with a component design and think you can achieve it with another programming language. It would help if you initiated something like this.

“I have completed the registration module, but we should make the KYC process faster. Right now, you have suggested Vue.js, but it is limited in its scope in performance. We should use Node.js, which is much faster and can be deployed faster.”

Here you are making clients stick to the path you want to take, cementing your authority and expertise.

Set expectations

Establishing boundaries around the project’s scope, turnaround times, response times, and support is crucial. The first step towards this goal is to make the expectations clear from the beginning.

Define the expectations as accurately as possible. It will help the client be clear about the scope of work you will be doing and the timeline. Discuss the project’s timeline with the client before starting the project to minimize the risk of future disagreements.

Most clients like to work with developers who stick to their agreement and put in the hours promised. Set up a proper communication channel and time when you will hold meetings with the client for effective communication. Avoid engaging clients outside this time unless it’s necessary.

Be transparent about your pricing

Be it a rate-based project or fixed hourly rates, the project’s pricing is always the elephant in the room. The final project pricing depends on the complexity of the project and the features you are going to build. Not all features are created equal, and if you do not communicate this to the client, there will be a misunderstanding later on.

Eliminate any scope for miscommunication by putting your pricing in writing. Mention what features you will be working on and that any additional features will cost extra. Be open to the demands of the clients and their budgets. You can compensate for less pay by using technologies that offer better automation and faster delivery. For instance, if a client wants static pages in a JavaScript page, you can use GatsbyJS, which has ready-made static page templates.

Conclusion

Front-end developers are not the awkward, bespectacled geeks who fail to communicate with clients; they are professionals who deliver on clients’ requirements keeping them in the loop throughout the development process.

We hope these tips will enable you to talk to clients professionally about everything related to the project. The key here is to prioritize the needs of the client but demonstrate your value as well for a sustainable partnership.

Talent500 is a platform for front-end developers to explore remote work opportunities with fast-growing startups and Fortune 500 companies. Sign up today to join the pool of elite talent.

Why do you need a global talent acquisition strategy?

Posted on May 1, 2022July 11, 2022 by naveen

The job market is witnessing an unprecedented decline of available workforce post-pandemic. In the US alone there are over 7 million unfilled job positions relative to 6.3 million people looking for job opportunities domestically. There is a clear mismatch between the demand and supply of talent and this gap further widens as most people are looking for work-from-anywhere opportunities and exploring international markets. There is no way companies can fill the open positions by restricting their hiring to local talent.

Fortunately, with an exponential increase in demand for remote work opportunities, recruiters now have a chance to tap into talent sources from anywhere in the world. Global talent acquisition is the future of work and companies certainly need to put in place strategies and policies to hire globally, efficiently. Today, more than ever before, companies have the opportunity to build a globally distributed workforce with the right talent for the right job.

Why companies need a global talent acquisition strategy

Helps in building diversity

Building diversity in the workforce presents so many opportunities for employers that can’t be generated otherwise. According to a PWC survey, over 75% of managers and global companies agreed that diversity is a predominant factor for building a competent workforce. Furthermore, companies with diversity are known to generate 19% more revenue with a 1.4 times higher profitability rate.

There have always been discussions around diversity building initiatives in the workforce, and for some reason, companies have failed to deliver on their promises. But in 2022, when employees now have the option of choosing to work at almost any organization, they are more likely to choose ones that have a strong diversity and inclusion program.

Fosters operational efficiency‍

Operational efficiency is the measure of how smoothly business operations are conducted on a day-to-day basis. When companies have a global talent acquisition strategy in place, it considers cultural and local hiring practices which enable companies to better manage local talent because they are more prepared for behaviors and expectations.

When companies fail to adopt a global talent acquisition strategy, they end up making policies at the country level which only help with the selection and retention of a selected group of talent. This can be disastrous for expansion to new markets as there are clear operational gaps and inefficiencies. Many companies with no global talent acquisition plans are forced to outsource the recruitment process to third-party agencies. However, partnering with the right talent acquisition company can take your company to the next level.

Increases understanding of the local market

With a global outreach plan, companies are not only hiring candidates with different cultural backgrounds and mindsets but are also readying the environment to accommodate these differences. Companies that have diverse teams should plan training for current staff to help them interact with employees from other cultures.

This has far-reaching impacts as apart from embracing diversity, members of the organization also get acquainted with foreign market norms. For companies boasting a global workforce, they are better positioned to navigate through local customs to avoid misunderstanding. This significantly helps the business because it becomes clear as to what sells and what doesn’t in a particular market.

Provides access to a wider talent pool

Hiring globally implies that companies have access to a large pool of talent. However, to truly capitalize on this advantage, an effective global talent acquisition strategy is required. Apart from providing the above-mentioned benefits, it also helps with talent management.

As you continue hiring from different markets, you will have to work with different labor laws, compensation structures, and expectations from potential employees. An acquisition strategy will help in streamlining the entire hiring process to accelerate hiring and managing all the requirements in a local market.

At Talent500 we have been building global teams for Fortune500 companies. We have the tools and talent to help you build globally distributed teams faster. Let’s discuss your requirement, set up a consultation today.

Tackle the Great Attrition by leveraging a globally distributed workforce

Posted on April 29, 2022July 11, 2022 by naveen

At the height of the pandemic, there were record breaking numbers of people quitting their jobs. According to research firm Gartner, the attrition rate rose from 10% in 2020 to 20% in 2021. Some IT service providers were battling even higher attrition rates of up to 30%. One of the most talked about items in combating the Great Attrition is adopting a globally distributed workforce.

This ‘new normal’ way of having a global workforce has its advantages.

Increased employee productivity

One of the most understated benefits of adopting a distributed working model is its impact in increasing overall productivity. 99% of managers say their employees who are given flexible work options are more productive; additionally, 45% of remote employees believe they can work smarter (deliver much more with fewer resources).

Note: As long as you invest in the right tools for communication, collaboration, project management, and specific for your business, you are likely to see increased employee productivity in the global distributed working model.

Access to talent anywhere in the world

According to Gartner, businesses think that talent shortage is the most significant barrier to the adoption of 64% of emerging technology. When restricted by geography, finding the right talent to fill the gaps in your organization, especially technical roles, can be a challenge. Distributed working model gives you the option of hiring from anywhere in the world and can be a very effective option for technical/specialized skills, saving time, money, and effort on training.

Note: Before entering a new market, it is important to do research to determine the right hiring strategy for your goals, and to fully understand the local employment market and pertaining laws.

Less costly

With fewer overheads like rent, furniture, electricity, cleaning and maintenance, and other costs, a distributed company can turn out to be more cost efficient than the traditional in-office working model. One study found that if a company allowed an employee to work from home just half of the time, it would save on average $11,000 per employee.

Note: There could be hidden costs associated with distributed working and the most critical of them being security – 73% of IT workers believe that remote workers especially pose a greater security threat.

Great diversity

Diversity matters because a diverse group of employees can produce more innovative ideas. When done right, diversity is a massive flex. Not only does diversity impact the bottom line, studies show us that 83% executives state that a diverse workforce improves their company’s ability to capture and retain a diverse client. Studies also show us that 85% of large global enterprises believe diversity is crucial to fostering innovation in the workplace. When you have different views, opinions, and thoughts at the table, you have more creative problem solving and a better understanding of customers.

Note: When dealing with a distributed team, it could be a challenge to ensure that diversity is followed up with equity and inclusion, through all levels of management.

Improved retention

No company wants to lose good talent, and employee retention ranks as top priority for organizations across industries. The pandemic showed us that people who were forced to come in to work every day, preferred to move to another company who offered flexible working options. Distributed work models offer employees the flexibility they are looking for in terms of location and hours and can reduce absenteeism, tardiness, and associated costs.

Note: Employee behavior trends are seeing major changes since the pandemic. Staying in sync with the latest on what employees want from their workplace can go a long way in improving retention.

Focus on mental health and overall well being

One of the best things of a distributed working model is that employees do not feel the pressure of daily commute or of being bound by fixed working hours. Employees can now choose to work according to their timely preference, barring scheduled meetings. They now have the option of focusing on their personal well being and have more freedom to plan their day based around their mental health.

Note: Organizations need to provide employees with access to mental health programs and initiatives to show that they truly care for an employee’s mental wellbeing. Only talking about it isn’t enough.

It is no secret that a happier employee is a more productive employee, and perks and benefits like flexibility in how, when, and where they choose to work definitely adds to their happiness quotient. Finding, building, and managing a distributed workforce doesn’t need to be daunting. Our team of experts and network of highly skilled professionals are here to help you build your global team in over 50 countries. Ready to take the first step? Set up a consultation with our team here.

Global technology talent crunch: What it means, its implications, and how to solve for it

Posted on April 29, 2022July 8, 2022 by mahidhar

Shortage of skilled tech talent has been a pressing issue globally due to rampant digital transformation. In recent times when the pandemic played the role of disruptor, this gap only widened and reliance on digital increased. Satya Nadella, CEO of Microsoft, rightly stated, “All businesses are software businesses”. This is apparent now more than ever as entire industrial ecosystems have now gone digital. This shift was revolutionary, putting talent in the driver’s seat for the first time in a long time, and new movements took form.

For instance, the full force of the ‘great resignation’ phenomenon was felt by global industries as professionals across major countries were quitting jobs in record numbers. According to Microsoft’s Work Trends Index 2021, more than 40% of employees were considering changing jobs. And in a more recent Talent500 Talent Intelligence survey, 85% of employees are considering a job change in 2022. With travel restrictions, tightened immigration policies, reshuffled company budgets added to the mix, it is no wonder that several big players found it hard to maintain steady workforces. In fact, the attrition rate at India’s IT giants has spiked to 20-30% per annum.

The situation did improve over time as data published in CompTIA’s Workforce and Learning Trends report, 2021, stated that 40% of companies hired IT talent during the pandemic. Unfortunately, this did little to solve the talent crunch as nearly 54% of global companies faced some form of talent shortage. So, what does this talent crunch mean for the global IT ecosystem? Read on to find out.

The impact of the IT talent crunch

As industries continue to integrate with technology, reliance on qualified talent will only increase. There’s no dearth of evidence for the rising demand of technology talent but very few countries have the resources to deliver. India, for instance, was found to be the only country capable of matching the talent needs across various sectors, even having a surplus with a total pool of 250 million workers!

The struggle and delay to identify and hire skilled talent is massive as it results in stop-gap solutions that often fall short of the mark such as temporary staffing and inflated salaries, all in a bid to retain what little talent is available. In fact, surveys found that such tactics cost UK companies €7.6 billion every year, negatively impacting their bottom lines. This loss in revenue is alarming and much of it has to do with talent and skill shortages. That’s not all; lack of talent also impedes a company’s ability to cater to their clients, offer services or maintain desired output. The global talent crunch has led to competition among companies, cities, and countries.
According to Korn Ferry’s projection, some nations will be affected more than others in the coming years. Among the countries that are expected to struggle with technology talent shortage include the US, Russia, China, Brazil, Indonesia, and Japan. The crunch has devastating implications, some of which are restricted world trade, reduced overall quality, slower production cycles, and increased cost of labor.

The key causes of the IT talent shortage

Talent shortages are fueled by several factors. On one end was the rapid digitalization brought on due to the pandemic. Almost overnight, entire industries went digital, leaving many employees inadequately equipped for their new roles. Another contributing factor is the lack of education. Emerging technologies and advanced systems rely on educated talent for optimal execution and the supply is not nearly enough to meet the demand. While countries like Poland, Portugal, and Israel are working toward building these educated workforces, major players are plagued with socio-economic issues that stifle progress.

Aside from these, the increase in the number of workers at the end of their career is another notable factor. Baby boomers are now closer than ever to retiring and the millennial workforce is partly reluctant and partly ill-equipped to fill their shoes. While a part of the problem has to do with the steep learning curve of modern technologies, the more pressing issue here is the lack of managerial skills required to take on these roles. As such, companies are left with limited options, if any.

This compounds the issue as bigger corporations and even non-technological companies compete for the precious few capable of handling these roles – throwing big money at the problem. Employees then cement themselves in these positions with no future plans to move. As a result talent is unevenly distributed, and smaller companies have to think out of the box to stay afloat. This often includes relocation to places with a more stable technology talent base and lesser competition.

How tech giants and major players responded to the talent crunch

Tech giants have employed diverse strategies to attract and retain talent. Some include driving up wages or offering higher remuneration through generous signing bonuses and incentives but there are other tactics in play too. Upskilling, for instance, is a big priority for the modern employee and employers are happy to oblige. For instance, Amazon recently invested $700 million to re-skill or upskill their employees. Similarly, PwC planned to invest $3 billion towards upskilling workers in the field of AI and machine learning. Interestingly, 42% of companies plan to launch upskilling initiatives.

By creating training programs and offering opportunities to improve, employers invest in their employees, who in turn become value drivers. Another viable option that now has its moment in the sun is the freelance ecosystem, also known as the gig economy is a labor market that consists of short-term contracts. In this context, companies look to hire self-employed individuals who can take on specific jobs in return for an agreed-upon payment. While this could lead to permanent, full time roles, usually these are intended for short term projects.

Hiring from anywhere has the potential to deliver value in a cost-effective model, and many companies have this option as a preferred route. In fact, hiring remote employees and adopting hybrid work models is now the norm. Around 85% of businesses agreed that implementing hybrid work models increases workplace productivity while 77% of companies declared that remote work reduces operational costs.

Global talent acquisition outsourcing: A long-term solution to bridge the talent gap?

Recruiting international staff is challenging and time-consuming. The top leaders including Fortune 500 companies outsource global recruitment and leverage globally distributed working models, EOR frameworks, and global talent management companies to meet these goals. Data suggests that 65% of successful companies employ outsourcing in their hiring model. This makes sense considering that the global IT outsourcing market is expected to reach $98 billion by 2024. Outsourcing frees up company resources, which can then focus on evolving core business practices.

Around 66% of companies with more than 50 or more employees outsource recruitment. And 78% of businesses have a positive view of their outsourcing partners. Companies like Alibaba, Skype, WhatsApp, Citigroup, Pricena, Slack, CuriosityStream, Klout, Github, Transferwise, and StudyTube found success through this model. Global talent managing companies like ours have successfully helped start-ups and Fortune 500s including Nike, Walmart, Rakuten, Uber, H&M, Twitter, Pepsico, and Target to manage and scale their global teams globally.

With the continuous demand for high-skill IT personnel, companies can’t afford to ignore global talent when hiring. To make hiring the best talent easier, partner with Talent500. Our pre-assessment tests, Intelligent AI fit, and multi-channel sourcing makes hiring 5x faster and 60% more efficient. Find and build the perfect team and scale effortlessly. Schedule a consultation today and build effective globally distributed teams that deliver.

How hybrid working is enabling enterprises to leverage the benefits of global talent

Posted on April 5, 2022April 5, 2022 by satya

If there’s one phrase we have heard repeatedly over the last two years, it’s “the new normal”. Remote working is the new normal, travelling as you work is the new normal, and now, it seems that hybrid working is the new normal. So what does a hybrid work model really mean?

A hybrid work model integrates multiple working processes by blending colocated, remote, and semi-remote employees into a single system, thus enabling employees to work according to their comfort and schedules. We know that there are pros and cons to each working style; people in physical offices spend considerable time and money on their daily commute, while remote workers often struggle with isolation and Zoom fatigue. The hybrid model enables organisations to reap the benefits of both models by giving employees the autonomy to decide how they work.

Enabled by technology, an increasing number of multinational companies are choosing to go the hybrid route due to its many benefits:

Eroding geographical boundaries

By removing the barriers of location and physical presence, the hybrid model gives companies access to a limitless pool of talent. No longer restricted to hiring within a 20 mile radius, businesses now have access to a highly diverse and skilled set of candidates from across the globe. Today, hiring is determined by technical excellence and specialisation, not where the talent resides. Having a hybrid workplace enables companies to easily hire different types of employees, whether they work remotely or from the office, as freelancers, contractors, or full time employees.

Reducing operational costs

The hybrid model enables companies to reduce operational costs by as much as 27%. Employers are able to substantially cut down on office rent as employees share the same workstations on rotation. Not only does this considerably reduce a company’s real estate cost, it also reduces spending on utilities like electricity, maintenance, and pantry. This reduction in cost enables companies to offer better salaries, giving them access to highly skilled talent across the globe.

Reduced employee attrition rate

‘Flexible working hours’ and ‘the ability to work from home’ are some of the most valued employee benefits according to millennials. According to this survey by Ernst and Young, 54% of employees surveyed from around the world would consider leaving their job post-COVID-19 pandemic if they are not afforded some form of flexibility in where and when they work. Want a highly engaged workforce? Give them the autonomy to decide how they work. Switching to a hybrid work model is one of the best ways to increase employee engagement, and consequently, retention.

Increased productivity

Did you know that the relationship between remote work and increase in productivity has now been proved? 77% of people who work remotely at least a few times per month show increased productivity, with 30% doing more work in less time. When employees have the flexibility to work according to their own schedules, the result is a visible increase in their productivity. This is especially true for employees who are primary caregivers to children or adults.

Improved collaboration and team bonding

According to this survey by Microsoft, a hefty 67% of employees said that they would want more in-person work or collaboration post pandemic. One of the biggest benefits of the hybrid system is that it enables all types of employees – remote, semi -remote and collocated, to find their own office and home balance. Hybrid teams can choose when they want to work from the comfort of their homes, and when they want to sit together for an in-person brainstorming session. The ability to blend in-person interactions with virtual meet-ups helps teams form better relationships, which in turn boosts collaboration.

Improved scalability and global expansion

Thanks to the benefits of a distributed team, companies can expand globally without having to set up a legal entity in a new country. Scaling up becomes easy as employers now only need to pay for the cost of the talent, without having to worry about relocation, travel and visa costs. A company in the USA’s silicon valley can recruit a DevOps engineer in India’s Hyderabad with zero hassle.

More importantly, hybrid working has made it easier for multinational corporations to enter new geographical markets via local employees. Instead of having to set up a new foreign office, companies are choosing to simply hire remote team members who are aware of the on-ground social, economical, and cultural aspects of the foreign country. An increasing number of employers are choosing to leverage the services of an employer of record to build their global teams without worrying about the hassle of legal compliance and paperwork.

Prepping for the transition

In the last section, we’ve talked about the multiple benefits of a hybrid work model, especially for global companies. However, as we get ready to make this transition, it is important to remember that the hybrid model is also prone to certain challenges.

Here are a few important factors that all employers must account for before switching to a hybrid work model:

The proximity bias

One of the biggest and most common challenges faced by hybrid teams is the presence of the proximity bias, a phenomenon where remote colleagues are often meted out second-hand treatment when it comes to new initiatives, appraisals and opportunities. Employees who physically commute to the workplace experience better visibility in the eyes of the leadership, are viewed as more productive and consequently experience better rewards and recognition.

As is the case with all biases, the first step towards correction is to accept that the bias exists. Hybrid managers and leadership must regularly check for, and take active steps to guard against any kind of proximity bias. A good place to start would be by putting in place objective and qualitative measures for performance evaluation.

Redesigning workspaces

As many as 66% of employers are considering redesigning their workspaces for hybrid work. The pandemic has changed how we view our physical offices. What was once the “ dreaded workplace” has now become an avenue for collaboration and socialising.

However, this transition to hybrid working will require employers to strategically use their physical office spaces in order to increase the spaces for collaboration, and cut down exclusive cubicles. Companies will also need to ensure that all conference and meeting rooms include video conferencing facilities, stable internet connection and optimum bandwidth so as to ensure uninterrupted meetings.

The hybrid work model emerged from a need to consolidate the benefits of the different existing work models. Its beauty lies in its flexibility. Employees are free to carve out their own home and office schedules, and employers are no longer restricted to hiring within a specific geographical region. For companies exploring global expansion and location strategy, the hybrid model is the perfect way to extract the maximum potential of a distributed team.

The power of remote: is your company ready to go global?

Posted on April 5, 2022April 5, 2022 by satya

Post pandemic, one of the biggest changes that we have witnessed has been the sheer increase in the number of people choosing to work from home. According to this survey by Buffer, as many as 97% of respondents would choose to work remotely for some parts of their work week.

The good news? The remote model offers multiple benefits to employers too, from reduced operational costs to access to an unrestricted pool of highly skilled talent. However, building and managing a successful remote team comes with its own set of challenges.

Right from the initial policy framework, to setting up the digital infrastructure and recruitment pipeline, an organisation has to consider a multitude of factors before it’s ready to go remote. Here are 5 areas that you must consider:

Remote work policies

A remote work policy is a set of guidelines that outlines the code of conduct and expectations from all remote employees of the company. These policies often cover work timings, communication expectations, time-tracking processes, data security rules, legal considerations and more. For teams transitioning to remote work, having a policy in place helps eliminate uncertainty and ad hoc decision making at the manager level.

A good place to start is by ensuring that your remote work policy covers the following:

Working hours and availability

Ensure that your remote work policy clearly sets down expectations with respect to working hours, times of availability etc.

Communication channels

An effective communication strategy is the backbone of every remote organisation. Clearly demarcate the preferred channels for both synchronous and asynchronous communication.

Cybersecurity standards

We know that data security is one of the biggest concerns for all remote organisations. Clearly mention all security measures that employees need to take in terms of firewalls, VPNs, antiviruses and usage of public wifi.

Mechanism for availing paid time off

Put down the number of leaves and vacation days, how they are divided and how they can be availed so as to make life easier for your HR department.

Digital capabilities

One of your most important responsibilities as a remote employer is to ensure that your workforce has access to the tools and technology that they need. Much like a physical office where you would set up cubicles, conference rooms, computer systems and desks, your remote workforce will require infrastructural support. This can be divided into three parts:

Hardware

Having a dedicated workspace enables your team members to bring their most productive selves to work. This includes the right computer and attachments like speakers or headphones, a fully functional workstation and an ergonomic chair.

Software

Working without the necessary tools is like running a race barefoot. Ensure your team has access to all necessary licensed softwares like adobe illustrator, Microsoft365, CRM softwares, etc

Remote work tools

Today, there exist multiple tools designed specifically to help remote teams increase their productivity. From synchronous and asynchronous communication, to having a common central repository of all data, these tools help remote teams function as a single unit.

Recruitment essentials

73% of all departments are expected to have remote workers by 2028. Now, more than ever is the time when recruiters upskill themselves in order to have a seamless remote recruitment process.

We recommend dividing this process into office stages:

Assessment and planning

As the most important part of building your remote team, it is important to ensure that you have a clear understanding of the various roles and job descriptions. We also recommend having an organisational chart in place before you start recruiting.

Build your employer brand

According to Gartner, 65% of the candidates surveyed report that they have actually discontinued a hiring process due to an unattractive employer brand. The right EVP (employer value proposition) helps potential candidates understand how their professional goals align with your company’s trajectory. Make sure your careers page includes information about your company’s culture, perks and benefits, employee testimonials and opportunities for growth and learning.

Building a remote talent pool

One of the biggest advantages of working remotely is to be able to hire solely on the basis of skill set and relevant experience, regardless of the candidate’s location. Here are some tips to help you build an expansive pool of talent for recruiting your remote team members:

a) Leverage technology: Thanks to the integration of AI and machine learning into hiring workflows, companies can now post across multiple channels via a single process. Remember to include platforms meant exclusively for remote workers like flexjobs and angel list.

b) Use your social media: Not just LinkedIn, but even your company’s Facebook, Twitter and Instagram accounts are good places to publicise the fact that you’re hiring. If your blog posts receive a fair amount of traction, it’s a good idea to use them for putting out hiring requirements.

c) Employee and user networks: Employee referrals are one of the most effective ways to find and retain new employees. We also suggest sending out feelers in your user base. The added advantage here is that they are already familiar with your product or services.

Preparing for virtual interviews

Whether an interview is conducted in person, or across a computer screen, the qualities that all recruiters look for remain constant. Share all relevant information like the date and time of the meeting, name of the interviewer and any other such requirements a few days prior to the interview. We also recommend preparing a standard list of questions and a hiring rubric for a completely objective interview. This has the twofold benefit – it ensures that the interview covers all required areas, while simultaneously guarding against any bias that might creep in.

Onboarding your distributed teams

The right onboarding process can improve employee retention by 82%. Effective onboarding becomes increasingly important for remote organisations as it plays a major role in helping new employees find their place within the organisation. In the absence of the same, HR departments at remote organisations need to strategically build a highly engaged and interactive onboarding process.

We recommend dividing your onboarding process into three parts – pre joining, first day, and post joining. This enables you to structure all activities in a chronological order and maximise the results.

Compensation and benefits

The remote workforce knows exactly what perks and benefits it wants, and it isn’t a high-end coffee machine or foosball table. ‘Flexible working hours’ and ‘the ability to work from home’ are some of the most valued employee benefits according to millennials.

When recruiting globally, employers also need to factor in the statutory benefits of the employee’s country of residence. For example, Indian law requires that all companies with over 20 employees make contributions to a provident fund. Most countries will require employers to contribute to provisions made towards health insurance, pension funds, or accidental insurance. As you decide your remote recruitment strategy, it is important to factor the cost of providing these benefits to your remote workforce.

Legal and regulatory compliance

Access to a global team also means that you will now have to ensure compliance with the employment laws, taxation regimes and legal requirements of the countries of residence of your foreing employees. While you might not have to worry about the taxation percentages for the contractors you hire, all full time employees will be subject to taxation in their country of residence.

Similarly, every country has its own employment laws and regulations, non compliance with which can result in hefty fines. A sizable amount of the initial cost will go towards registration and paperwork, and consulting legal and financial experts.

A good way to hire across multiple countries without investing a substantial amount of time and capital is to avail the services of an employer of record. An Employer of Record is a third-party organisation that serves as the legal employer for a company’s foreign employees. The EOR undertakes the management of all workforce-related aspects – from hiring & payrolls to taxation, employee benefits, and legal compliances.

If there is one thing that is common to all companies that have thrived in the last two years, it is their ability to function remotely. As you take the first step towards building a remote organisation, remember that its success hinges heavily on the foundation that you lay much before you start recruiting.

At Talent500, we are helping global companies hire, build and manage global teams in 30+ countries by acting as their Employers of Record. We aim to transform high-impact companies by giving them access to a worldwide community of highly skilled professionals transcending geographical boundaries. Sign up here to take your first step towards global expansion!

5 compliance mistakes to avoid when building your global team

Posted on March 9, 2022March 9, 2022 by shanthamurthy

Global expansion is a tangible milestone in the growth trajectory of every company. In the last couple of years, we have seen a massive increase in the opportunities for location-independent work opportunities. As a result, businesses have been leveraging the multiple benefits of having a global team.

However, hiring across borders comes with its own set of caveats. When it comes to employment, every country has its own set of laws which must be followed strictly. Considering different technical hubs in order to build your location strategy? Don’t forget to factor in the time, cost, effort and expertise required to fulfil legal requirements in a foreign country.

Here are five areas of compliance that must be fully vetted before you start rolling out offer letters:

Taxation laws

When hiring in a new country, ensuring compliance with its tax regime is non negotiable. We know that Income tax is a common deduction across all nations. However, the percentage can differ anywhere between 5% to 40%, depending on the country’s laws. In addition to this, there are multiple other allied taxes that employers must take into account when calculating compensation.

For example, employers in Brazil are responsible for paying a portion of employees’ social security and unemployment tax. In Germany, employers pay taxes toward employees’ social security (unemployment, accidental and health care insurance).

Misclassifying your employees

Many companies prefer hiring independent contractors as compared to full-time employees, as it restricts their employer responsibilities substantially. Full time employees are generally entitled to a host of benefits like pension fund, health insurance, paid time off etc. On the other hand, these benefits are not usually provided to contractors. Due to this reason, many companies choose to intentionally misclassify their full time or part time employees as contractors on their payrolls.

However, this is one mistake that you must avoid at all costs, as this can result in hefty fines and significant legal consequences. For example, in the USA, the punishment for misclassification is $1000 and imprisonment for a year. In Japan and the U.K., employees with a fixed-term contract automatically become permanent employees after a certain amount of time.

Not offering statutory entitlements and benefits

While every company can decide what perks and benefits it wants to offer, there are certain basic benefits that all employees are entitled to. These range from employer’s contributions to pension funds, to health insurance, maternity leaves and many other similar aspects. In India, all female employees are entitled to a minimum of 12 weeks of maternity leave. In France, it is illegal to ask your employees to work over weekends under the Right to Disconnect law.

There is no one-size fits all solution when it comes to identifying employee entitlements and benefits. Our advice? Draft your policies in a way that is aligned with statutory requirements of individual countries.

Violating minimum wage/ compensation laws

We understand that one of the biggest benefits of hiring globally is getting access to highly qualified talent with affordable compensation. However, as you set about calculating compensation for employees living in a different country, you must factor in minimum wage laws.

All over the world, over 193 countries have a list of their own minimum wages that must be complied with. India has over 1200 different classifications of minimum wage. The USA has a minimum wage for each state, as well as the federal minimum wage. What remains uniform is the strict penalty dealt out to businesses that fail to comply with these regulations. In Japan, the fine for non-compliance can go up to 500,000 Yen.

Not meeting immigration, visa or work permit requirements

When working globally, you will often have to bring foreing nationals into your home country, or send employees to a different third country. In all such cases, you must ensure compliance with all immigration and work visa requirements.

Some countries on the top of this list are the USA, Canada and most European countries. Individuals on a tourist or dependent visa will not be allowed to work in these countries. Moreover, non-compliance with immigration, visa and work permit laws can lead directly to deportation of the employee. For the employer, it could mean heavy penalisation and black-listing of the company.

A global team is the solution to numerous problems, from the lack of specialised talent, to the ease of entering into any country’s local market. As you build your global team, it is important to prioritise these five factors for a seamless hiring process.