Deliveroo, an Uber-like platform that connects restaurants with delivery workers, is one of several UK companies whose employment practices have been the subjects of public scrutiny and litigation over the past two years as the country wrestle with the contradictions between its existing labor laws and the rise of the “gig economy.” Deliveroo was sued last year by the Independent Workers Union of Great Britain (IWGB), which argued that delivery couriers working through its platform were not self-employed independent contractors as the company contended. While plaintiffs in other gig economy classification suits have succeeded in the British court system, Deliveroo prevailed last November, when the Central Arbitration Committee found that its delivery workers were indeed self-employed, because they had a contractual right to allocate a substitute to do the work for them.
The IWGB appealed to the High Court of Justice, however, from which the union secured a ruling last week that it could pursue a partial judicial review of the CAC’s decision as a human rights issue, TechCrunch’s Natasha Lomas reported on Thursday:
[T]he judge only gave permission for a judicial review on “limited grounds”, relating to whether certain categories of self-employed individuals should have the ability to unionize. “We have been given permission to argue that Deliveroo is breaching the human rights of our members. This is no longer an employment rights matter, this is a human rights matter,” a union rep said outside court after the ruling. …
Ford Argo AI
In a sign of how serious the US automobile industry is about beating Silicon Valley to marketable self-driving cars, several AI startups working on this technology have multiplied in size since being bought by legacy automakers over the past two years, Christina Rogers reports at the Wall Street Journal. Argo AI, an artificial intelligence startup founded in Pittsburgh by former top engineers from the self-driving vehicle divisions of Alphabet and Uber, had fewer than a dozen employees when Ford Motor Company bought a $1 billion majority stake in it early last year. Today, it has 330 employees, including a number of software engineers and robotics researchers formerly employed by major tech companies like Apple and Uber.
Argo attracted these employees with an equity offer for new hires, which big tech companies can’t offer, Chief Executive Bryan Salesky tells Rogers. This ensures that each employee is “able to benefit from the upside being created in a direct way”—a potentially massive payoff given that Argo is helping Ford prepare to bring a fully autonomous car to market in 2021 while also developing a system it can sell to other companies. Being backed by a major company, but not owned outright or micromanaged by that company, gives Argo the agility to continue operating like a tech startup, while also benefitting from Ford’s economies of scale to manufacture and market the products it designs.
General Motors also bought a self-driving car startup, Cruise Automation, as part of a series of high-tech investments in 2016 that signaled the company’s intent to develop autonomous vehicles and made it a more attractive employer for tech talent. San Francisco-based Cruise, which GM also spent $1 billion to acquire, has staffed up to 740 employees and got $2.25 billion investment from Japan’s SoftBank Group last month, Rogers adds. Japanese automakers like Toyota and Nissan are also investing in the development of robotics and autonomous driving technology.
In separate agreements with the US Equal Employment Opportunity Commission, Best Buy and CVS have decided to stop using personality tests as part of their recruiting process, Erin Mulvaney reported at the National Law Journal last week. While the details of the agreements are confidential and neither company admitted liability, the EEOC said a former commissioner had raised concerns about the companies’ policies, prompting the agency to scrutinize whether these practices were potentially discriminatory:
The tests came under increasing scrutiny for their potential to weed out people with mental illness or certain racial groups. CVS had previously agreed, for example, to remove certain mental health-related questions from its questionnaire after a probe from the Rhode Island Commission for Human Rights.
In recent years, the EEOC launched investigations into personality tests on the grounds of discrimination and has guidelines for these job applicant assessments. Some companies on their own have decided to eliminate or reduce parts of the assessment tests, including Whole Foods Market Inc.
Target reached a $2.8 million settlement with the EEOC in 2015 over its candidate assessment system, which was alleged to discriminate on the basis of race and sex, and ended the practice. The agency has also litigated and won cases regarding such assessments against other companies over the years.
LinkedIn users browsing job listings can now get a sense of what their commute would be like if they took the job. The new feature, which senior product manager Dan Li announced in a blog post last week, adds to the growing pile of information LinkedIn helps job seekers find about the roles they are considering:
When you visit job listings on LinkedIn from your mobile phone, you’ll start to see a “See Your Commute” module. From here you can enter your address to calculate how long it would take you to get to your new office walking, driving or on public transportation. Soon, you’ll also have the option to save your location information locally on your phone so you don’t have to type it in every time you’re looking at a role.
You can also set your commute preferences within your Career Interests dashboard so we can provide you with more relevant job recommendations that fit your lifestyle.
The feature was introduced after LinkedIn surveyed 1,000 of its users last October and found that 85 percent of them would take a pay cut in exchange for a shorter commute, Fortune’s Rachel King added. Times and maps for the See Your Commute feature are processed by Bing, the search engine owned by LinkedIn’s parent company Microsoft; in that regard, it’s evidence that Microsoft is making good on its plan to augment LinkedIn, which it bought for over $26 billion in 2016, by integrating it with other elements of the tech giant’s vast suite of software products.
LinkedIn’s latest Workforce Report for the US spotlights a phenomenon that’s shaking up the labor market in and around Texas, the nerve center of the American oil industry, where hiring has spiked in tandem with oil prices. Energy industry hiring rose 5.2 percent in the year to May 2018, compared to an average of 4.5 percent across all industries nationwide, LinkedIn found. Job growth has closely tracked the price of oil, with a dip in 2015-2016 followed by a boom as prices have risen steadily over the past two years. Hiring in Houston, the energy industry’s home base, grew 12.4 percent year-over-year, contributing to a reduction in the surplus of petroleum engineering, energy, and geology skills.
The energy industry is particularly sensitive to boom-bust cycles, and, so are cities like Odessa and Midland in west Texas, where the local economy is dominated by a single industry (in this case, oil), the report notes. In the current boom cycle, the migration of workers to the Odessa-Midland area is further tightening labor markets in Houston and other Texas cities:
With oil prices on the rise, talent inflows to this oil boom-town have picked up, particularly from the three largest Texas cities—Houston, Dallas, and Austin. Net movements to Odessa-Midland from these cities have grown significantly since September 2017, to 0.34 per 10,000 from Dallas (750%), 1.05 per 10,000 from Houston (44%), and 1.03 from Austin (255%). This impact can also be felt in the housing market—a recent report found that Odessa-Midland had the highest national rent increase in 2017, up 35.7% year-over-year.
Driving this boom is the rapid expansion of shale oil extraction in the Permian Basin, west Texas’s oil and natural gas producing region. High oil prices combined with advances in extraction technology have made shale extraction increasingly profitable, meaning oil companies have the incentive and the resources to lure talent with high pay. That’s great news for anyone working on an oil rig, but ancillary workers like truck drivers are also seeing huge signing bonuses and pay hikes, the Wall Street Journal reports, with some truckers in the Permian Basin earning over $100,000 a year, double the national average for long-haul truckers.
The US Bureau of Labor Statistics published new data on Thursday, for the first time since 2005, on the size of the country’s “contingent workforce”—defined as “persons who do not expect their jobs to last or who report that their jobs are temporary,” as well as those employed in “alternative work arrangements.” The data in the new report is from May 2017, at which time the bureau says 5.9 million US workers (or 3.8 percent of the overall workforce) were employed in contingent jobs:
Using three different measures, contingent workers accounted for 1.3 percent to 3.8 percent of total employment in May 2017. … In February 2005, the last time the survey was conducted, all three measures were higher, ranging from 1.8 percent to 4.1 percent of employment. In addition to contingent workers, the survey also identified workers who have various alternative work arrangements. In May 2017, there were 10.6 million independent contractors (6.9 percent of total employment), 2.6 million on-call workers (1.7 percent of total employment), 1.4 million temporary help agency workers (0.9 percent of total employment), and 933,000 workers provided by contract firms (0.6 percent of total employment).
Wednesday’s data release does not address the size of the “gig economy,” per se. The BLS added new questions to the new version of its Contingent Worker Supplement to identify individuals who found and were paid for gig work through a mobile app or website, but says it is still evaluating that data and will address it in a later release. Surveys over the past few years have produced widely divergent counts of America’s gig economy, estimating the “gig workforce” at anywhere from 600,000 to 54 million people. Much of this discrepancy has to do with how gig economy is defined: Freelancers, who Upwork and the Freelancers Union predict could be a majority of the US workforce in as little as 10 years, are sometimes included in this definition, other times not.
In any case, the BLS’s finding that the contingent workforce represented a smaller share of the workforce in 2017 than in 2005 is raising eyebrows, given that much independent research has found the gig economy to be growing.
Ever since Recruit Holdings, the Japanese HR conglomerate that owns Indeed, announced last month that it was acquiring Glassdoor, speculation has run rampant that the parent company would inevitably combine the two properties into an even larger online recruiting behemoth, perhaps as a defensive move against Google’s new job search feature. Matt Charney at Recruiting Daily, in his massive, four part “Requiem for Glassdoor,” concludes that even with their powers combined, Indeed and Glassdoor have no hope of competing with the search engine where 80 percent of job searches begin. With so much control over the front end of the funnel, Google has the power to render its competitors in the job search aggregation market virtually invisible to most users. No matter how much traffic Indeed buys, Charney reasons, “that traffic will ultimately be controlled (and priced) by … Google.”
Still, other observers see the Glassdoor acquisition through a different lens, viewing the site’s impact not so much in terms of volume but rather in how it has mainstreamed transparency and accountability on the part of employers in their interactions with candidates. That’s how the Washington Post’s Jena McGregor described it in her column after the news of the acquisition broke:
Analysts say the $1.2 billion pricetag for Glassdoor reflects a company that sits at the nexus of a number of trends: A tight labor market where many workers have their pick of jobs and employers have to work harder to attract them. A growing demand by recruiters and H.R. departments in an era of big data to back up their decisions with metrics. And a technological and cultural zeitgeist where an appetite for transparency and accountability have only grown
These trends were illustrated in a report Indeed issued just a week after the announcement: How Radical Transparency Is Transforming Job Search and Talent Attraction, based on a survey of 500 US jobseekers, highlighted findings like these: 95 percent of candidates said insight into a prospective employer’s reputation would be somewhat or extremely important in their decision making. Among Millennials, 71 percent said transparency was extremely important, while 84 percent of Millennials aged 25 to 34 said they would automatically distrust a company on which they could find no information (even among Baby Boomers, 55 percent agreed that transparency was crucial). No reviews, Indeed found, are even more harmful to an employer’s reputation than bad reviews, since candidates are at least willing to consider an employer’s response to a bad review.
The growth of online pay information sources like Glassdoor is also a central theme in our upcoming work on pay transparency at CEB, now Gartner.