As much as leaders may wish the labor market were not so competitive, it is important to accept the reality and take action. Photo via Getty Images

It is no surprise to recruiters that, despite high profile layoffs at major corporations, the labor market remains tight, especially in the tech industry.

According to data from McKinsey from the first half of this year, more than 80 percent of tech workers who were laid off found a new job within three months. Many of them found jobs outside of the tech industry, where technically skilled employees are in increasingly high demand.

If small businesses want to remain competitive, they need to evolve their hiring strategies. One answer to expanding the talent pool is skills-based hiring. Unlike traditional recruitment, which focuses mainly on applicants with college degrees or direct experience in their field, a skill-based hiring approach prioritizes specific competencies.

Research from LinkedIn revealed employers who practice skills-based hiring are 60 percent more likely to have success with hiring. A winning skills-based hiring strategy will identify diverse candidates, promote internal upskilling and accelerate the hiring process.

Find diverse candidates

Conventional hiring strategies tend to overlook many of the diverse candidates who benefit from skills-based hiring. One important aspect of skills-based hiring is connecting with these groups, who may not apply through traditional pipelines like online applications, employee referrals, or job fairs.

For example, candidates such as veterans, parents reentering the workforce and people without a college degree may not have the same connections as traditional applicants. Yet they often bring transferable skills and an ability to learn, enabling them to succeed in the role.

To expand their talent pool, businesses can start by connecting with organizations and events in Houston that target diverse groups. For example, the Texas Veterans Commission recommends that employers reach out to their local Texas Workforce Solutions Center to link with veterans seeking employment.

By making an effort to connect specifically with underrepresented groups, small businesses and startups can quickly deepen their pool of available talent.

Provide internal upskilling

Skills-based hiring focuses on the competences employees have already. Through upskilling, however, employers can internally train candidates to take on a new role or hire candidates with strong learning potential. Upskilling is the practice of offering ongoing learning and development (L&D) opportunities to employees to close skill gaps.

Upskilling opportunities cannot only expand the talent pool by enabling employers to train candidates on the job. They can also attract more applications across the board because they are in high demand from job candidates. The American Upskilling Study from Gallup found 57 percent of workers were “extremely” or “very” interested in an upskilling program, especially Black and Hispanic workers.

For small businesses trying to stay competitive, upskilling is an essential component of a skill-based hiring approach.

Accelerate the hiring process

Time-to-hire is telling about the effectiveness of an organization’s recruitment process. When recruitment drags on too long, candidates may accept another offer or grow disengaged with the process. Meanwhile, open roles may go unfilled. Unsurprisingly, LinkedIn data has found over six in 10 HR leaders named time-to-hire as their most important metric for success.

Small businesses and startups who want to increase their competitiveness should start by calculating their current time-to-hire. Once they understand the situation, they can analyze their approach for weaknesses.

Some of the most effective solutions to improve time-to-hire could include redesigning the application process, streamlining interviews, implementing an applicant tracking system or refining job descriptions. The goal is a highly efficient recruitment process that identifies qualified candidates and puts out an offer as soon as possible.

As much as leaders may wish the labor market were not so competitive, it is important to accept the reality and take action. Much like larger corporations, small businesses and startups will find the upper echelon of talent when they embrace skills-based hiring as the future of recruitment.

———

Jill Chapman is a director of early talent programs with Insperity, a leading provider of human resources and business performance solutions.

How to navigate your hiring process with transparency amid the flexible workforce trend. Photo via Getty Images

Houston expert: Cultivate transparency when recruiting flexible workplace positions

guest column

How the workplace operates, especially flexible work arrangements, captivate job seekers, prompting many job listings to spotlight remote or hybrid work options. Interestingly, a significant portion of hybrid and remote workers say they would explore new job opportunities should their current employer opt out of offering remote work possibilities. These insights from Gallup underscore the paramount importance of flexible work options.

Regrettably, not every role that promotes flexible work arrangements delivers. While the labor market is fiercely competitive, especially for startups and small businesses wishing to attract top talent, some organizations are enticing potential candidates with the prospect of flexible schedules, only for these newly hired individuals to realize the actual job flexibility falls short of the initial representation.

As remote work and flexible schedules have evolved, many organizations have established sensible guidelines concerning office presence and work frequency. However, the degree of flexibility varies, and not all recruiters are forthright about these nuances during job interviews.

Candidates who find recruiters and hiring managers omitting specific details about flexible work policies often feel misled. Maintaining honesty in job descriptions – and throughout the recruitment process – is imperative to ensure a good match is found for the organization. Employers should cultivate transparency, prioritize organizational culture, and exercise thoughtful consideration of their policies.

Clarity is Key

Many prospective candidates yearn for flexible work opportunities, recognizing that some constraints may apply. A recent McKinsey survey revealed that 58 percent of Americans engage in remote work at least once a week, with 35 percent enjoying the possibility of remote work for the entire workweek. Given the wide spectrum of policies, astute job seekers acknowledge that their next employer's stance on remote work might differ from their current one.

As startups compete with larger employers for the same talent, they may be apprehensive about outlining their remote or hybrid work policies, especially if their flexibility is less generous than that of competitors. Yet, this strategy ultimately squanders time and resources, as candidates who place high value on flexibility are unlikely to take an offer that falls short of their expectations, and these perceived deceptions could tarnish the employer’s brand.

The optimal approach is to communicate policies unequivocally in the job description and address them during interviews. While excessive detail isn't necessary, job postings can concisely indicate the number of mandatory office days.

Cultivating a Cohesive Culture

Skill set and experience might align perfectly with a role, but without a compatible cultural fit, candidates might struggle. When businesses withhold key information about their flexible work policies, they undermine the trust pivotal to fostering a strong organizational culture. This approach also misrepresents the culture, which is intricately shaped by the "how" and "when" of employee work arrangements.

While it's true that candidly sharing flexible work policies could lead some candidates to self-select out of the application process due to their desire for more flexibility, the converse is equally valid. Certain candidates might prefer spending more time in a collaborative office environment and might not pursue a job that seems excessively remote-focused.

Incorporating explicit communication about flexible work policies during recruitment not only fosters understanding of these policies but also provides insight into how these policies contribute to the organizational culture. This approach aids in identifying candidates who align well with the culture, which is paramount in all stages of a company’s growth.

Evaluating the Approach

There is likely a reason why businesses withhold information about their flexible work policies. Recruiters may feel that adhering to their employer's policies could hinder their ability to attract top-tier candidates, especially if the industry standard embraces extensive flexibility. However, misrepresenting the extent of flexible work arrangements is not a viable solution. Instead, businesses should reevaluate their standards.

Each business has unique requirements, some of which necessitate a greater in-office presence. Collaborative teams or departments might benefit from face-to-face brainstorming sessions more than teams operating more independently. However, if research indicates that competing organizations offer more flexibility, businesses need to be prepared to articulate their rationale – if they have one. If they do not have a sound business reason for their position, it might be worth reevaluating their stance on it.

The crux of reevaluating flexible work policies lies in comprehending the underlying reasons for these policies and effectively communicating them to new hires and existing employees. Candidates are more likely to accept limitations on flexible work arrangements when they perceive a sound justification from their potential employer.

Embracing transparency, nurturing a strong corporate culture, and critically assessing existing policies will help organizations manage expectations surrounding flexible work arrangements, thereby attracting the right candidates for the business.

------

Karen Leal is performance specialist with Houston-based Insperity, a provider of human resources offering a suite of scalable HR solutions available in the marketplace.

Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

10+ can't-miss Houston business and innovation events for December

WHERE TO BE

From networking meetups to holiday parties, December is lined with opportunities for Houston innovators.

Here's a roundup of events you won't want to miss out on so mark your calendars and register accordingly.

Note: This post might be updated to add more events.

December 4 — Pumps & Pipes Annual Event 2023

This innovation gathering brings together cross-industry leaders for engaging discussions and top tier networking opportunities. Check out panels and listen to speakers discuss everything from generative AI technology to sustainability projects that are currently underway in Houston. Price of admission is $50.

This event is Monday, December 4, from 8 am to 5 pm, at the Ion. Click here to register.

December 5 — Jingle Mingle - a Houston Tech eXtravaganza

Jingle Mingle - a Houston Tech eXtravaganza is a celebration of the Houston startup ecosystem and the people who make it happen. Network while enjoying stunning views of the Downtown skyline and Wonderlawn holiday lights. Price of admission is $32.

This event is Tuesday, December 5, from 5 to 8 pm, at POST Houston. Click here to register.

December 5 — Fireside Chat with McKeon and Flavin

TMC CEO Bill McKeon and Portal Innovations CEO and Founder John Flavin collaborate in a fireside chat to provide valuable insight into the medtech field. Topics of discussion will include scientific ideation in life sciences, medtech, and bioinformatics through commercial proof of concept by delivering seed capital, specialized equipment, lab space, and management expertise to high-potential early-stage companies.

This event is Tuesday, December 5, from 4:30 to 6:30 pm, at Texas Medical Center Helix Park. Click here to register.

December 6 — Houston Veterans in Residence Showcase

The Veterans in Residence Showcase honors veteran and military spouse entrepreneurs who are participating in the Veterans in Residence Program in cohorts across the country. This event will celebrate the hard work of 23B ViR Cohort Entrepreneurs with a showcase, networking, and a pitch competition.

This event is Wednesday, December 6, from 6 to 8 pm, at the Cannon West Houston. Click here to register.

December 7 — 9th Annual Evening of Pediatric Device Innovation

Check out this annual gathering of members, colleagues, and guests for this FDA-supported pediatric device consortium that supports pediatric device innovators throughout the pediatric device life cycle to bring novel pediatric devices to pediatric patients.

This event is Thursday, December 7, from 4 to 7 pm, at Texas A&M EnMed Tower. Click here to register.

December 7 — Investor Speaker Series: Both Sides of the Coin

Attendees will get a behind-the-scenes look at the equity investment process for a Greentown Labs startup and what best practices both founders and investors can follow to keep things moving smoothly. There will also be a happy hour with opportunities to network and mingle.

This event is Thursday, December 7, from 4 to 7:30 pm, at Greentown Labs Houston. Click here to register.

December 8 — 2023 SMBHOU Gift of Guidance: Help a Nonprofit and Learn

Looking for an opportunity to make a difference this year? The Houston Social Media Breakfast will meet with 10 local nonprofits to help them with a strategy to use social media for their charity. Check out this event and meet other communicators in Houston. You need no special skills, just a willingness to learn and share.

This event is Friday, December 8, from 8:30 to 11 am, at 1801 Main St. Click here to register.

December 12 — Houston Methodist Reverse Pitch with Dr. Evan Collins

This reverse pitch session will be hosted by Dr. Evan D. Collins, MD MBA, Chief of the Houston Methodist Hand & Upper Extremity Center at the Texas Medical Center and the hand specialist for The Center for Performing Arts Medicine (CPAM) at Houston Methodist. Dr. Collins will share a short presentation about his clinical work and current challenges and then open the floor to discussion for new creative solutions.

This event is Tuesday, December 12, from 4 to 5:30 pm, at the Ion. Click here to register.

December 13 — Bayou City Bio Pulse

The Greater Houston Partnership’s Life Sciences Committee, in collaboration with BioHouston, invites you to attend the Bayou City Bio Pulse to connect with the region’s most innovative life sciences and biotechnology organizations face-to-face. The presenters will also describe best practices for AI Governance—the path to realizing AI’s possibilities while ensuring trust, fairness, safety, and security.

This event is Wednesday, December 13 from 4:30 to 6:30 pm, at Rice University. Click here to register.

December 19 — UH Tech Bridge - Innov8Hub Pitch Day

This event is your chance to immerse yourself in the vibrant startup ecosystem, network with industry experts, and discover the next big thing. Innov8Hub is a founder-driven series of accelerator programs for early-stage ventures and entrepreneurs who are members of the UH community.

This event is Tuesday, December 19, from 4:30 to 7 pm, at 5000 Gulf Fwy. Click here to register.

December 21 — Female Founders & Friends

Female founders, funders and allies looking for connections with other like-minded go-getters in the Houston community should head on down. Coffee and breakfast will be provided.

This event is Thursday, December 21, from 9 to 10 am, at the Sesh Coworking. Click here to register.

Texas and California battle it out for most relocating residents, Census report says

by the numbers

Texans love to joke about how many Californians are moving here, but a rising trend in Texas residents' relocation habits may have Californians saying the same thing about Texans soon.

A new U.S. Census report analyzing state-to-state migration has revealed new estimates regarding Texas' growing population in 2022. According to the report, more than 668,000 new residents relocated to Texas from out-of-state last year.

Not surprisingly, the highest number of new Texans hailed from California. More than 102,000 Californians made the move to the Lone Star State in 2022.

But in a fun population twist, California also received the most Texpats in 2022, the report showed, followed closely behind by Florida, then Oklahoma. Of the 494,077 people who left Texas last year, 42,279 went to California.

Why Californians move to Texas
Californians often seek out a lower cost of living by moving to the most "affordable" cities in the state. Houston has shown to be at the top of the priority destination list; Dallas usurped Austin as the No. 1 city for California movers earlier this year. And when a California transplant can save more than $646,000 by moving to Texas and buying a home in Houston, it's not hard to see the appeal

Other reasons for the California-to-Texas exodus include the lack of income tax and the flexibility of remote work opportunities, they say.

While California took the lead with the most new movers flocking to Texas, Floridians are also choosing to pack up and leave their Sunshine State for the Lone Star State, the report says.

The top 5 states with the most residents moving to Texas in 2022 were:

  • California – 102,442 new residents
  • Florida – 41,747 new residents
  • New York – 30,890 new residents
  • Illinois – 25,272 new residents
  • Louisiana – 25,192 new residents

Where Texans are moving
The Census report showed that less than half a million Texas residents relocated out-of-state last year, totaling 494,077 people.

"Texas had the country's lowest (11.7 percent) outmigration rate, with most of those who did move relocating to California (42,479) or Florida (38,207)," the report said.

The top five states where Texans moved in 2022 were:

  • California – 42,279 Texans
  • Florida – 38,207 Texans
  • Oklahoma – 26,440 Texans
  • Colorado – 25,466 Texans
  • Georgia – 23,754 Texans

New Texans from abroad
In addition to state-by-state migration data, the report also provided estimates for how many new Texans came from abroad. Out of 237,051 new residents, the majority – 233,751 people – relocated from outside the mainland last year.

About 2,441 people moved from Puerto Rico, and 859 arrived from unspecified U.S. island areas.

Texas has been a magnet for international homebuyers for several years. The state has held its position as the third hottest U.S. housing market for international homebuyers for the fourth consecutive year in 2023. A total of 9,900 Texas homes were purchased by buyers from outside the U.S last year, spending a gigantic sum of $4.3 billion.

------

This article originally ran on CultureMap.

Houston software company with HR solutions raises $21M series B

money moves

A Houston company with a software platform to enhance skills management operations has raised its series B.

Kahuna Workforce Solutions announced it has closed a $21 million series B funding round led by Baltimore-based Resolve Growth Partners. Kahuna's platform provides its users — which come the from health care, energy, field service, and manufacturing industries — with effective assessment, training and development, and staffing and deployment initiatives.

“We are thrilled to work with Resolve as Kahuna begins the next growth phase. Their expertise in enterprise software, and commitment to innovation and continuous improvement fully aligns with our mission, vision, and goals for Kahuna,” Jai Shah, CEO of Kahuna Workforce Solutions, says in a news release. “This funding fuels our ability to provide mission-critical skills management solutions and support as we revolutionize how organizations manage and optimize workforce skills and capabilities.”

The software-as-a-service company will use the fresh funding to continue product development and hire across sales and marketing, product development, customer success, and engineering. The company also will grow to support global customers.

“Kahuna stands out as a category leader. They offer best-in-class skills management software and create true partnerships with customers to achieve transformative business value and operational outcomes,” Jit Sinha, co-founder and partner at Resolve Growth Partners, adds.

“Kahuna’s extensive understanding of market needs positions them uniquely in this space. Our investment is a testament to the confidence we have in Kahuna to continue leading and offering unparalleled solutions to meet the evolving needs of customers globally,” Sinha continues.

Shah, who's based in San Diego, founded the company in 2018. The company lists several of its customers on its website, including bp, GE Renewable Energy, Memorial Hermann, and more.