Workplace trends

The US is saying goodbye to non-compete agreements

The Federal Trade Commission (FTC) has banned nearly all non-compete agreements for US workers. Those in the agency who voted in favor of the ban claim they were presented with overwhelming evidence that non-compete agreements hinder entrepreneurship, suppress wages, and disrupt labor markets. Academics say the move, which will impact roughly 30 million employees and raise wages by nearly $300 billion per year, is likely to have a particularly significant impact on employees who cannot afford litigation on what they see as trivial non-competes like fast food and retail workers. Business groups argue that the agency has overstepped its authority by implementing a rule that will harm businesses and vow to fight it in court.

More governments are helping employees disconnect from work

With the shift to remote and hybrid work blurring the boundaries between home and work life, several countries have enacted legislation to protect workers’ “right to disconnect.” France, often regarded as a pioneer in this area, introduced legislation back in 2016, granting employees the legal right to disconnect from their phones and other work devices outside of set working hours. Portugal, following suit in 2021, termed its legislation as the “right to rest,” imposing fines on certain companies for contacting staff outside of designated work hours. Other countries with similar laws include Belgium, Australia, and Kenya. And just this month, California has gotten on board, proposing the ‘right to disconnect’ bill, which, if passed, would make it the first U.S. state to offer workers the right to ignore communications from their employer outside of “normal” work hours.

The AI corner

AI is fueling a gold rush of new data centers

As demand for AI grows, so does the need for more facilities to power it. However, these data centers can take years to build and require more parts, property, and power than are currently available. As a result, cloud giants like AWS, Microsoft, and Google are investing billions in new data centers, with Google’s capital expenditures soaring 45% to $11 billion in the last quarter of 2023. Builders are scouring the globe in search of new places with access to sufficient power – plans include constructing centers next to a volcano in El Salvador and inside shipping containers in West Texas and Africa. According to Bill Vass, VP of Engineering at AWS, a new data center is popping up somewhere in the world every three days. Experts warn, however, that even with enough data centers, there’s still a critical shortage of AI chips and construction workers trained for such sensitive installations.

Which economies will dominate the AI market in the future?

Currently, big US companies like Google, Meta, and Microsoft stand head and shoulders above others in terms of AI investments and development. That said, research indicates that other countries and smaller companies are poised to compete down the line due to the enthusiasm for AI in emerging economies, which far surpasses that of the developed West. According to a 2023 Ipsos survey, more than 70% of Thai, Indonesian, and Mexican respondents believe AI would be more beneficial than harmful, compared to just 37% in France and the US. Additionally, a survey by the Schwartz Reisman Institute found that a higher percentage of respondents from Pakistan, Kenya, India, and Brazil use ChatGPT on a daily basis compared to those in the US or the UK. This eagerness characterizing emerging economies suggests a far more diverse AI market in the future.

How to hire the right people

When you lead a team, you know the daily pressures of managing leadership goals, prioritizing the right initiatives, and keeping your team members motivated and engaged. But today, more than ever, the success of your efforts hinges on one crucial factor: your people.

Hiring the right talent isn’t just about filling a vacancy – it’s about building a foundation for a thriving team. A bad hire can cost your company significantly more than that employee’s annual salary, according to a study by the Society for Human Resource Management, translating to wasted resources, lost productivity, and a potential domino effect on team morale.

And even more concerning is the fact that today, employees with less than six months of tenure have the lowest intent to stay at their organization, per a new Qualtrics report. The cost of losing recent joiners is high, given that in addition to recruitment and hiring expenses, you haven’t even had time to recoup any of their value yet. And with employees 9.1% more likely to leave a company following a resignation on their team, per a recent report from the people analytics company visier, the costs can become even more serious.

All this said, hiring the right person from the start is crucial to your team’s – and your own – long-term success. So, how can you make sure you get it right?

Create clear job descriptions

Forget generic templates and try to craft job descriptions that truly resonate with your ideal candidate. Instead of simply listing out responsibilities, give candidates a taste of your company culture and the impact this role will have, both on your team and within the larger company. By highlighting the specific skills and experiences needed as well as explaining what the day-to-day role will generally entail, you’ll attract qualified individuals who are genuinely interested in the position – saving you time and effort in the long run by weeding out irrelevant applications and setting the stage for successful interviews.

Construct thorough interviews

87% of candidates said a positive interview experience can change their minds about a role or company they once doubted, and 83% said a negative interview experience can change their minds about a role or company they once liked, according to a LinkedIn Business study. These numbers highlight the reality that interviews carry tremendous weight and are crucial to assessing candidates’ skills, experiences, and fit for the role and the company culture. So, use these conversations to tell the candidate about the company, align job expectations, fill in resume gaps, and even practice giving some feedback to gauge how they respond.

And remember, an interview between a candidate and a hiring manager is a two-way street – in order to move forward, both of you need to walk away from the conversation feeling positive and interested. So, encourage the candidate to ask questions to ensure they fully understand the role and company culture. This way, if they ultimately receive an offer and choose to accept it, nothing will come as a shock later on that could lead to quick turnover.

Prioritize cultural fit

When hiring new candidates to join your team, be sure to take their people skills into account, and consider how they would fit into your current team dynamics. Remember that while hard skills can be taught and developed, innate social skills and positive energy are much harder to impart. So, during the interview process, try to gauge candidates’ personalities and enthusiasm about collaborating with others. Ask yourself questions like, “Could I actually picture this person on my team?” and “Does this person match our team culture?” Be honest when answering these internal questions, regardless of how much technical talent they have, because disrupting healthy team dynamics can have ripple effects on your current employees as well.

Consider potential

Don’t just focus on past experience – prioritize future potential! Keep an eye out for candidates who may not come with the exact background or expertise that you were looking for but who clearly demonstrate a strong learning mindset and a potential to grow. While they may not possess years of experience, by assessing their adaptability, motivation to learn and develop, and long-term career goals, you can uncover incredible talent that have a real drive to excel at your company.

Loop in your team

Once you’re at a stage where you’re feeling pretty confident about a candidate, you can try scheduling a brief interview with one or more of your team members who will be working closely with the new hire. It can be a casual conversation – simply a chance for them to chat and get valuable insights on personality and communication styles – to help ensure that the candidate is a good fit for the team dynamics. This way, you can foster greater buy-in from your current team members and create a more familiar and welcoming environment for the new hires when they start.

Make them feel welcome

Before their first day, reach out to new hires to let them know that everyone is excited for them to join and to outline what they can expect on their first day. Additionally, set them up for success by designating a team member to be their peer mentor or buddy. This can help make the transition smoother, build quicker connections between your team members, and ensure that the new employee has a contact to turn to for guidance and support.

And on that note, recognize that onboarding doesn’t end on the first week – set up recurring check-ins as the team member gets settled and organize team lunches or activities for everyone to develop more meaningful connections.

Water cooler chatter

Taylor Swift’s new album broke records across streaming services. Within a day of its release earlier this month, her album, “The Tortured Poets Department,” garnered 300 million streams on Spotify alone, making it the most-streamed album in a single day on the platform. Additionally, Amazon reported that it became their most-streamed album worldwide in its first week.

A new airline is offering private jet flights that are 100% built for dogs. Bark Air, the world’s first dog-centric airline, is charging customers $6,000 and up to ensure a stress-free, luxurious trip between New York, LA, and London starting next month. With room for only 15 dogs and owners on each flight, the airline offers a treat menu with “Doggie Champagne” and a play area for the canine cuties.

Question of the week

Last week’s answer: 62%

This week’s question: What percent of organizations offered parental leave in 2023?

Just for laughs

Work families, unless employees quit