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

Houston femtech co. debuts new lactation and wellness pods

mom pod

Houston-based femtech company Work&, previously known as Work&Mother, has introduced new products in recent months aimed at supporting working mothers and the overall health of all employees.

The company's new Lactation Pod and Hybrid Pod serve as dual-use lactation and wellness spaces to meet employer demand, the company shared in a news release. The compact pods offer flexible design options that can serve permanent offices and nearly all commercial spaces.

They feature a fully compliant lactation station while also offering wellness functionalities that can support meditation, mental health, telehealth and prayer. In line with Work&'s other spaces, the pods utilize the Work& scheduling platform, which prioritizes lactation bookings to help employers comply with the PUMP Act.

“This isn’t about perks,” Jules Lairson, Work& co-founder and COO, said in the release. “It’s about meeting people where they are—with dignity and intentional design. That includes the mother returning to work, the employee managing anxiety, and everyone in between.”

According to the company, several Fortune 500 companies are already using the pods, and Work& has plans to grow the products' reach.

Earlier this year, Work& introduced its first employee wellness space at MetroNational’s Memorial City Plazas, representing Work&'s shift to offer an array of holistic health and wellness solutions for landlords and tenants.

The company, founded in 2017 by Lairson and CEO Abbey Donnell, was initially focused on outfitting commercial buildings with lactation accommodations for working parents. While Work& still offers these services through its Work&Mother branch, the addition of its Work&Wellbeing arm allowed the company to also address the broader wellness needs of all employees.

The company rebranded as Work& earlier this year.

Rice biotech studio secures investment from Modi Ventures, adds founder to board

fresh funding

RBL LLC, which supports commercialization for ventures formed at the Rice University Biotech Launch Pad, has secured an investment from Houston-based Modi Ventures.

Additionally, RBL announced that it has named Sahir Ali, founder and general partner of Modi Ventures, to its board of directors.

Modi Ventures invests in biotech companies that are working to advance diagnostics, engineered therapeutics and AI-driven drug discovery. The firm has $134 million under management after closing an oversubscribed round this summer.

RBL launched in 2024 and is based out of Houston’s Texas Medical Center Helix Park. William McKeon, president and CEO of the TMC, previously called the launch of RBL a “critical step forward” for Houston’s life sciences ecosystem.

“RBL is dedicated to building companies focused on pioneering and intelligent bioelectronic therapeutics,” Ali said in a LinkedIn post. “This partnership strengthens the Houston biotech ecosystem and accelerates the transition of groundbreaking lab discoveries into impactful therapies.”

Ali will join board members like managing partner Paul Wotton, Rice bioengineering professor Omid Veiseh, scientist and partner at KdT Ventures Rima Chakrabarti, Rice alum John Jaggers, CEO of Arbor Biotechnologies Devyn Smith, and veteran executive in the life sciences sector James Watson.

Ali has led transformative work and built companies across AI, cloud computing and precision medicine. Ali also serves on the board of directors of the Drug Information Association, which helps to collaborate in drug, device and diagnostics developments.

“This investment by Modi Ventures will be instrumental to RBL’s growth as it reinforces confidence in our venture creation model and accelerates our ability to develop successful biotech startups,” Wotton said in the announcement. "Sahir’s addition to the board will also amplify this collaboration with Modi. His strategic counsel and deep understanding of field-defining technologies will be invaluable as we continue to grow and deliver on our mission.”