Companies are increasingly paying higher wages to new hires while keeping a tight rein on salaries of existing employees. A new report from the Conference Board’s Labor Market Institute suggests that the salary gap between 20-to-24-year-olds and 25-34-year-olds declined to its smallest in 36 years. Employers have resisted increasing salary budgets for existing employees beyond an annual average of 3% or so since the Great Recession.
Reports from Bloomberg indicate that Morgan Stanley is cutting 1,500 jobs globally, to increase the efficiency of the company. Job cuts, amounting to 2% of the firm’s workforce, will take place across technology and operations divisions, as well as sales, trading, and research operations. Reportedly, the bank will incur a charge of $150 million to $200 million in the fourth quarter due to job cuts.
It recently came to light that the Black Rock Inc. human resources executive fired in July had engaged in a romantic relationship with a colleague. Jeff Smith and Mark Wiseman, global head of human resources and global head of active equities respectively, were removed from the company following relationships at work. US employers have been extremely strict about work relationships especially after the #MeToo movement.
The tight labor market has led leading organizations to seek neurodiverse talent to fill in the depleting talent pool. Neurodivergent people include individuals with autism, Asperger’s Syndrome, ADHD, and other cognitive differences. About 80% of people on the autism spectrum disorder are unemployed or underemployed, Lawrence Fung, assistant professor of psychiatry and behavioral sciences says. Specialisterne, a consultancy firm aims to enable 100,000 U.S. jobs for neurodivergent people by 2025.
LinkedIn Chief People Officer, Christina Hall, resigned earlier this week, HR Dive reports. As per the reports, Hall's resignation came after the news of internal “compliance” rules broke out. Hall has worked for LinkedIn for six years and had similar roles at Facebook and Intuit before joining LinkedIn. Though LinkedIn didn’t confirm the reason for Christina Hall’s resignation.
A study published in Social Science Research Journal says the contraction of certain male-dominated industries may be driving men into female-dominated industries. When men move into female-dominated field fields their wages increase by 3.8% on average. Female HR managers on average earn $91,981 a year, while male counterparts earn $103, 644 on average. Considering this shift, the HR department may see an impact, the study said.
Nissan’s North American office announced that it will furlough all workers on Jan2 and Jan3 as sales continue to decline. Further, the company plans to cut employee expenses in half, Jose Valls, Nissan North American Chairman said in a memo. Workers in the Nashville, Smyrna, and Decherd, Tenn., and Canton, Miss. will be affected. Nissan has been in turmoil since the arrest of Carlos Ghosn.
More than half (59%) of technology professionals are optimistic that technological advancements will change their careers in the next decade, an ISACA survey says. The survey conducted among 5,000 business technology professionals expressed concern about the skills gap in cybersecurity; with only 18% of professionals saying the skills gap in cybersecurity will be completely or partly filled.
The communications Workers of America union filed a federal labor charge against Alphabet Inc’s Google on Thursday. The complaint accused the company of unlawfully firing four employees to deter workers from engaging in union activities, Reuters reports. National Labor Relations Board (NLRB) will investigate the case and see whether Google violated the four individuals’ right to collectively raise concerns.
Carmakers will eliminate more than 80,000 jobs during the coming years, data compiled by Bloomberg News says. Daimler AG and Audi announced nearly 20,000 job cuts in just the past week. Reportedly, automakers are facing challenges due to trade tensions and tariffs, forcing them to reassess their workforce in the era of electrification, autonomous driving, and ride-on-demand services.
A U.S banking regulator rebuked Wells Fargo’s HR department for the backlog of employee complaints and compensation structures, the Wall Street Journal reported on Wednesday. Reportedly, the regulator had asked the bank to address issues related to thousands of employee complaints and an inadequate policy for clawing back compensation from executives and poor control around pay.
A Gartner research says HR professionals will have to focus on developing employee skills to help their organizations grow in 2020. The report further said that automation and digitalization are changing the skills required for success. Thus, HR professionals will need to partner with managers and business leaders to address emerging needs in terms of skills, Gartner noted.
Larry Page and Sergey Brin, CEO and President respectively of Google’s parent company Alphabet Inc, are stepping down from their positions. Reportedly, Sundar Pichai, Google’s CEO, will manage both Alphabet and Google under one role. The alphabet was created in October 2015 to manage ventures outside Google’s main search business. Pichai has been leading Google for more than four years.
A quarterly survey of US employees published by HRO Today Magazine and outsourcing firm Yoh found that worker confidence increased to a record high in the third quarter of 2019. The National Worker Confidence Index recorded an 11.8-point increase in employee confidence from Q2 2019 to touch 116.7 in Q3 2019, following a previous record high set in the first quarter of the year.
Employers spent $1,299 per employee in 2018 on learning programs, slightly higher than in 2017, according to the Association for Talent Development’s industry benchmarking report. Workers spent 34 hours of formal learning, equivalent to about four eight-hour workdays, consistent with previous years. Traditional live classroom learning is still popular, the report noted. Employers are serious about learning initiatives.
Mercedes-Benz and Audi announced plans to cut nearly 20,000 jobs, according to a Bloomberg report. Reportedly, decreasing profit margins due to growing investment in electric and self-driving vehicles have led Mercedes maker Daimler AG to cap off a personnel haul and eliminate more than 10,000 jobs worldwide. About 150,000 jobs in the German auto sector might be at risk in the coming years, according to Bloomberg.
A survey conducted by Adobe among 250 HR professionals and 1,000 US consumers cited holiday seasonal hiring as the most stressful recruiting period. Nearly 80% of HR respondents said the time taken to onboard new staff challenges them, while 72% struggle with handling the paperwork. About 86% of seasonal hires felt switching from a paper-based process to online signatures would make the onboarding process more efficient.
A PwC survey says nearly half of job seekers have turned down an offer because of bad candidate experiences. The survey further found that candidates would discourage family or friends from applying for a job with a company because of a bad experience with the company’s recruiters. Employers can use tech tools to streamline interaction with candidates, recommend PwC.
A survey of 1,000 full-time US workers across generations revealed that older workers are willing to work for less. One of the most common misconceptions about older workers is their expectation for higher salaries, Forbes says. There is a good reason why an older person might make less than someone younger, writes an author on HBR.
A study published in Organization Science says firms that have gender-diverse boards experience market penalties. Firms that increased the number of female executives on their boards witnessed a decrease in their market value. “Female representation on a firm’s board may send a negative signal to the market regarding a firm’s commitment to shareholder value maximization,” the study further said.
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