Workday Doom Loop in HR: SHRM’s Diversity Stunt, Global Job Growth Mirage, and the Six-Day Workweek

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What’s up people.

Here’s what you need to know to be just a little smarter this week if you decide to talk to co-workers….

Breaking News

• Labor Market Report: Misleading Growth: The latest labor market report boasts 42 months of job growth, but the reality is more nuanced. Unemployment at 4.1% outpaces job growth, and job seeker confidence is plummeting. With elections looming and the Fed's upcoming actions, controlled wage growth and jobseeker competition reveal the headline's misleading nature.
• SHRM Drops 'Equity' from DEI: SHRM's decision to switch from DEI to 'I&D,' dropping 'equity,' has ignited controversy among HR experts. As a conservative move amidst legal threats to DEI and Affirmative Action, this step backward challenges the resolve of DEIBE. Savvy leaders must prioritize equity or risk losing top talent.
• Pennsylvania News: Serious Concerns: PA headlines are alarming: (1) a Trump assassination attempt, (2) middle schoolers' explosive act against teachers, and (3) court denies RT injunction for Philly. The gravity is real—3500 people must return to work in Philly. The satire: middle schoolers' lewd, homophobic, racist TikTok videos impersonating teachers at Great Valley Middle School.
• Greek Six-Day Workweek Sparks Controversy: Greece's defense of its "exceptional" six-day workweek clashes with reality. Greek workers already log 300 more hours yearly than the EU average. Labor unions are furious, workers are upset, and the media backlash is strong. While optional, the policy emphasizes "no work, no pay," adding fuel to the discontent.
• OpenAI Partners with Ariana Huffington on AI Health Coach: OpenAI teams up with Huffington Post founder Ariana Huffington to develop an AI health coach. Given Ariana's track record, this collaboration holds promise for significantly improving health and wellness. Don't bet against her—this partnership could positively impact many lives.
• Guitar Center's Digital Transformation: Guitar Center appoints Adolfo Rodriguez as CTO and CIO, signaling a push for innovation under new CEO Gabe Delporto. With a history of PE firm ownership eroding its identity, Guitar Center aims to avoid a Toys 'R' Us fate. The focus is on tech-enhanced personalization and superior customer and employee experiences, making this a "Disney moment" for the retailer. Innovation and growth are paramount—if you're just stocking shelves, this isn't the place for you.
• AI Interviewer Revolutionizes Job Prep: Engage with Zilta.io's AI interviewer, customized for your target role and job description. This realistic, tailored practice is a game-changer for job seekers, especially those with interview anxiety. Imagine unlimited practice sessions with an AI that knows the recruiter, hiring manager, and company inside and out. The potential for this to evolve into VR is fascinating.
• Lattice Introduces Digital Worker Employee Records: Lattice is set to revolutionize HR by introducing digital worker employee records, making the theoretical AI workforce a reality. AI employees will undergo the same processes as humans—onboarding, goal setting, and receiving feedback. This groundbreaking move signifies a major shift in how we integrate AI into the workplace.
• Data Workers Reveal Tech Industry Exploitation: The Data Workers' Inquiry report exposes the exploitation of data workers by the tech industry. When you report a post, it's often handled by someone earning just 3 cents in countries like Syria. This raises a critical ethical dilemma: Is 3 cents better than nothing, or does it highlight the need for better AI-driven solutions? Fascinating and troubling.
• Intuit's Layoffs Amid AI Push: Intuit confirms layoffs of 1,800 employees, 10% of its workforce, driven by AI ambitions. This move underscores AI's rising influence in HR and TA. The re-org focuses on rehiring in growth areas like engineering and customer-facing roles by FY25. Intuit promises generous severance and support packages. Expect more such shifts in the coming years.

Acquisitions

• Chime Acquires Salt Labs: Chime acquires enterprise employee rewards company Salt Labs, launching 'Chime Enterprise' to partner with employers. This strategic move opens the enterprise market, enhancing growth and expanding Chime's member base.
• IBM and HCLTech Announce Generative AI COE: IBM and HCLTech's Generative AI Center of Excellence will significantly impact HR Tech. Training 10,000 engineers on IBM’s WatsonX means HR departments gain advanced AI tools for talent acquisition, performance management, and employee engagement.
• PepTalkHer Acquires Mettacool: PepTalkHer, the 'Fitbit for your career,' acquires Mettacool to expand globally. This consolidation fosters professional growth and equitable pay among women, illustrating that 1+1 can indeed equal 4 in their collaborative growth.

Research

• Workday Doom Loop Report: The Workday Voice of the Employee Report reveals 27% of employees at high risk of burnout, creating a "doom loop" of negativity affecting both managers and employees. The report emphasizes caring for employees' wellbeing, including financial literacy and health, to break this cycle.
• HR Software Market Soars: The HR software market, valued at $15.59 billion in 2020, is projected to reach $33.57 billion by 2028. This explosive growth aligns with predictions of 2025 being a significant buying year for practitioners. Game on.
• Gartner Survey: Sustainability as a Growth Opportunity: 69% of CEOs see sustainability as a growth opportunity. While their motivations may lean towards gaining market share and attracting top talent, the end game benefits the earth. Cynical but true—sustainability is a strategic move.
• U.S. Companies Ramp Up AI Amid Inflation: Nearly two-thirds of CFOs prioritize automation and AI as inflation persists. With plans to implement AI in the next 12 months, the Federal Reserve's data signals a shift. My advice: reskill, learn AI/GenAI, and find AI-resistant roles.
• HR Tech Investments Falling Short: Only 24% of HR functions maximize HR tech due to poor implementation and integration. The issue isn't the technology but the lack of strategy and human touch. HR leaders need to combine tech with savvy judgment to unlock true value.
• Work Surveillance Impact: A study on work surveillance reveals significant impacts: 40% say it hurts mental health, 71% deem it unethical, 75% report decreased job satisfaction, Balancing surveillance and privacy is crucial, with transparency and communication key.
• Companies Dropping Degree Requirements: One in three companies have stopped requiring bachelor’s degrees for some positions this year. This shift towards skills-based hiring makes degrees less critical. Focus on what you can do, not where you studied. I wish I got the memo earlier.

Funding

• Hebbia Raises $130M: Hebbia secures $130 million, led by Andreessen Horowitz, growing 15x and quintupling headcount in 18 months. Specializing in asset management, law firms, and banks, Hebbia enhances decision-making with advanced AI tools beyond transactional chatbots.
• Workpay Raises $8.8M: Kenyan HR-payroll provider Workpay raises $8.8 million, highlighting the global nature of work tech. While global giants dominate, geography-based solutions like Workpay show focused, localized approaches also gain traction.
• Sidecar Health Raises $165M: Sidecar Health scores $165M for employer health plans, driving transparency with no co-pays. This tech-driven approach to healthcare is a model for HR leaders, emphasizing innovative benefits to attract and retain talent.
• Söderberg & Partners Raise $220M: Söderberg & Partners raise $220 million for international expansion, backed by KKR. Known for wealth management, insurance, and employee benefits, they are coming to a market near you.
• Clypp Secures €1M Seed Round: Munich-based Clypp raises €1 million, offering video-based knowledge transfer solutions to address skill shortages and generational knowledge transfer. Their modern, social-based approach is promising for organizational knowledge retention.
• HR Path Secures €500M: HR Path secures a record €500 million from Ardian to solidify its leadership in HR transformations. As digital transformation remains a hot topic, HR Path's specialized consulting services position them for continued success. Winner winner, chicken dinner.