05 Apr As California Labor Market Picks Up, Organizations Evaluate Talents They Need
Global talent has gained significant power and influence over the past two years since the pandemic struck the business world. Organizations had to find ways to remain agile to address the evolving demands of the workforce.
One observation experts have noted is that jobs defining the operating model of talent and work are a dying structure. The typical job descriptions, set compensation levels, organizational structures, and assigned training are all defined by a job. This approach was best suited during an era when businesses were still more predictable.
There is evidence that people aren’t settling in the outdated industrial models and are focusing on much more fluid and human-centered organizations. The current challenge is to establish organizations that are equipped to adapt to the rapid changes of the business world, all the while satisfying a workforce that is searching for more meaning, options, and autonomy at work.
This probably led to businesses trying to reconfigure jobs. With artificial intelligence and automation becoming more prevalent, companies are required to determine which tasks can be performed more optimally by talent or digital tools. This will help support decision-makers to identify the tasks that need to be filled so reskilling and training can be conducted accordingly.
Specific skills needed in near future
Research conducted by Pearson reveals what specific skills and what employment will look like in 2030.
- Only 1 in every 5 workers will be in their current jobs and predicted to shrink in the future
- 7 out of 10 workers will be in jobs that present greater uncertainty about the future
- Jobs in agriculture, construction, and trades will decline
- 1 in 10 workers in the education and healthcare sector will be in occupations that promote growth
- Demand for higher cognitive skills like complex problem-solving skills, fluency of ideas, and continuous learning will increase
The numbers are quite alarming. Different business sectors have not necessarily been observed to cope well with the changes the pandemic has expedited. So it’d be best for talent managers from global mobility and HR departments to anticipate the challenges based on what industry their companies belong to.
California employment projections
Home to many of the most iconic tech brands, California has been one of the most high-profile states in the world. It has attracted a wide range of global talent – mostly within the Information and Technology profession.
On the downside, California was also one of the most affected by the “Great Resignation.” Perhaps, this was attributed to the nature of the majority of the workforce’s jobs. Many could have easily done their tasks anywhere as long as they had the proper tools and workplace set-up.
But the state of the economy in California is observably looking up. The overall picture of the California labor market is optimistic. Sung Won Sohn, professor of finance and economics at Loyola Marymount University, states that one of the contributors to the rise of the economy is the Leisure and Hospitality sector.
This must have been one of the best news as the sector has been one of the hardest-hit industries in the health crisis. The sector including restaurants, lodging, and hotels enjoyed a 22% contribution to job gains. As economic growth continues to develop, transportation and logistics consequently contributed 21% of the employment increase.
As the economy begins to recover, tech giant Google and Twitter are planning to test the waters by reopening their office spaces. Both tech firms understand that imposing the whole workforce to report to work onsite will not be taken well by their employees. So both are opting to execute a more flexible workplace strategy for their workforce.
Google, on one hand, wants most of its employees back in its offices in the Bay Area for three days per week and the rest of the working days done anywhere – commonly known as a hybrid workplace set-up. On the other hand, Twitter decides to open its offices but lets its employees decide whether they’d want to work onsite.
It’s a pretty interesting thought that once, these companies made a significant amount of effort to provide the amenities and food at the workplace to entice employees to stay onsite. Now, if a company does not offer a work-from-home workplace, it’s considered primitive.
Right now, the Bay Area Council emphasizes that it’s too early to make any conclusions on which employment model would become more successful in the future. It would be a great time to observe as an estimated 70% of 200 firms plan to start bringing their employees back to the office.