Latino-owned small and medium businesses (SMBs) are growing rapidly, according to a new McKinsey & Co. report. Latinos start more businesses per capita than any other U.S. racial or ethnic group. In 2023, they created 36% of new businesses in the states—nearly double their representation in the overall population. According to the U.S. Census Bureau, 19% of the U.S. population is Latino or Hispanic, and that number is expected to grow to 28% by 2060. Still, Latino-owned SMBs comprise only 7% of total small-business firms with employees, and 17% of non-employer firms (which have no employees and are mostly sole proprietorships). However, 99% of Latino-owned businesses are considered small businesses. A supportive environment, McKinsey said, could pave the way for the creation of more than 600,000 new businesses, potentially bringing in about US$1.2 trillion in revenue and creating 5 million to 6 million jobs in the coming decades. Latino SMBs’ owners also skew younger, which McKinsey said offers great opportunities for long-term business growth. Additionally, the education level of these young entrepreneurs continues to increase with 20% of Latinos nationwide achieving a bachelor’s degree. Still, Latino SMBs have more challenges than non-Latino SMBs scaling up enterprises, hiring and retaining talent, and gaining access to funding, McKinsey reported. For example, in 2023, Latino-owned businesses accounted for 15% of credit applications on online lender Biz2Credit, up from 12% in 2022. Additionally, the average credit score of Latino business owners improved from 632 in 2022 to 647 in 2024, a sign that these businesses are becoming more financially stable and more creditworthy, McKinsey said.
In 2024, employee engagement reached an 11-year low, employee satisfaction returned to a record low, and employees were seeking new jobs at the highest level since 2015, Gallup found. Why are workers feeling this way? Gallup found seven in 10 employees (73%) said their organization has experienced some level of disruptive change during the past year. The more disruption employees experienced, the more likely they are to feel burned out. Managers are reporting disruption from the restructuring of teams (55%) and additional job responsibilities for employees (69%), while nearly half (46%) report budget cuts. Most (56%) of employees report also noticing changes in customer expectations since the pandemic, with 71% of those employees attributing changes to more demanding customers or higher expectations for a better digital experience. The pandemic also caused many workers to reevaluate what they want from their career and employer. Work-life balance and better compensation packages became more significant to employees, along with expectations for remote work flexibility. Additionally, most leaders said they have very little confidence in their performance management systems, leaving organizations without a reliable way to clarify expectations, align teams, recognize achievements, and develop employees, Gallup found. Gallup suggested that employers should offer clarity of work expectations and reconnect employees to the company’s mission and purpose.
Few employees feel prepared to use artificial intelligence (AI) in their jobs, found a recent Gallup survey. Only 6% of employees felt very comfortable using AI in their roles, while about one in six employees (16%) are very or somewhat comfortable using AI. However, about a third of employees (32%) are very uncomfortable using AI in their roles. Based on the data, unsurprisingly, from 2023 to 2024, the number of employees who said they are very prepared to work with AI dropped by six percentage points. Some employees may be facing a “reality check” when it comes to AI adoption, Gallup believes. Additionally, the decline may indicate leaders are talking more about AI without providing clear support or direction, leaving employees worried they will be left behind. While 93% of chief human resources officers said they have begun using AI in their organizations, only 33% of employees have heard about it. And only 15% of employees said their organization has communicated a clear plan or strategy for integrating AI technology into current business practices. However, when employees strongly agree that a clear plan exists, they are 2.9 times as likely to feel very prepared to work with AI and 4.7 times as likely to feel comfortable using AI in their role. Most employees (70%) said their organization does not have guidance or policies for using AI at work. While this percentage is lower (60%) for white-collar industries and employees who currently use AI at least once a year (47%), it still means many employees in the most AI-affected jobs do not have straightforward guidelines about using AI at work. By establishing clear guidelines for usage, Gallup suggests organizations can empower their workforce to use these technologies effectively and securely. Similarly, nearly half of workers who use AI at least once a year said their organizations have not offered any training on using AI at work. When employees participate in required training, they are 89% more likely than those who have not received any training— formal or informal—to say that AI will have an extremely positive impact on their individual productivity and efficiency at work.
Taking an extended holiday soon? It’s a good idea to start planning now. A recent Harvard Business Review article suggested the ideal time to plan is four to six week ahead. Ideally, employees should find a colleague to act as a backup at least one month before. Once the backup employee is found that person should be provided with a detailed handover document, listing any current projects, pending tasks, and instructions. Setting up a meeting before your departure to discuss the document with your colleague is also key. Additionally, be sure to include your backup in any important meetings and emails leading up to your break so your colleague is clued in on all tasks. Lastly, it’s best to write a clear out-of-office message providing contact details for your backup. Looking for a quick guide for a stress-free break: Find a backup. Determine what needs to be done while you are away. Create a handover document for your backup. Meet with your backup to discuss the handover document. Include your backup in important emails and meetings. Write a clear out-of-office message. Happy holidays!
Positing your business for growth requires an active stance. Successful building service contractors (BSCs) are looking to the future when making decisions, hiring employees, choosing technology, and setting their culture. Are you prepared to guide your BSC to new heights? Register for Building Tomorrow’s BSC: Critical Elements Necessary for Growth, a free webinar presented by Cleaning & Maintenance Management (CMM) at 1 p.m. CT on Tuesday, Dec. 3. In just one hour, webinar panelists will unlock the secrets to help you outshine your competitors, transform your business approach, and leave an indelible mark on the industry. You will learn: What elements are critical to a successful BSC. How to focus on organizational excellence, profitability, growth, and sustainability when hiring. How to influence younger generations and open their perspective to joining the cleaning and maintenance industry. When and where to use technologies such as robotic and artificial intelligence to stay competitive. How to increase the value multiplier and leave a legacy. And much more! The expert panel for this webinar includes: Elizabeth Christenson (moderator), CMM editor George Boutsalis, Impact Cleaning Services vice president Benjamin Fernandez, Verde program manager David Grossman, Renue Systems president Iris Verdi, Elite Building Services director of operations A live Q&A session will round out the webinar. Come prepared with questions specific to your BSC challenges and concerns. Our expert panelists will be ready! Registrants can participate in the live event and will obtain a link to the webinar recording afterward. Click here to register today! This webinar is brought to you by Aspire.
The November/December issue of Cleaning & Maintenance Management is now available in a digital format. This edition examines high-tech training methods for facility management staff, such as virtual reality. It offers advice from building service contractors on removing snow and ice from their client’s sidewalks and parking lots. The newest CMM edition reveals several methods for measuring your team’s cleaning performance and explains the risks of biofilms commonly found on surfaces, helping you set efficient cleaning protocols. It delves into sustainability best practices for managing construction and demolition waste, creating buy-in for zero waste policies, and choosing environmentally sustainable consumable products. Here’s a quick look at what you’ll find in this issue: Real-Life Training With Virtual Reality: The future of training just got real Freeze Out Your Competition, Not Your Clients: Building service contractors share their best practices for efficient snow and ice removal Sustainable Approaches for Managing Construction and Demolition Waste: Repurposing and recycling materials saves facility budgets and the environment Steps to Success on the Journey to Zero Waste: Communication and planning inspire facility buy-in Measuring Cleaning Performance Like an Athlete: A winning play increases worker efficiency and customer satisfaction Beware of Biofilms: Colonies of microorganisms harm humans and surfaces Embrace the Rise of Autonomous Cleaning: Research before you buy to boost your facility’s cleaning efficiency Simplify Cleaning in Food Service Facilities: Enhance cleanliness with effective training and labor-saving products 4 Questions to Ask Before You Buy Disposables: Tips for selecting environmentally sustainable consumable products Check out the table of contents to see all this edition of CMM has to offer including profiles of exhibitors at ISSA Show North America 2024.
The Eagle Hill Consulting Employee Retention Index held steady for the third quarter of 2024, decreasing by less than half a point to 104.7 from 105.1 from the previous quarter. While employee attrition rates have been falling this year, the index signaled that more workers could leave their jobs through early 2025 after several quarters of declining attrition. Notably, in the third quarter of 2024, the index found employee confidence in their organization’s culture and compensation remain strong and hit peaks the last quarter. Employee optimism related to compensation continued to climb, up 1.7 points, while employees’ confidence in their organization and leadership held steady at 104.4. Worker attitudes regarding their workplace culture declined by 2.3 points while optimism around workers’ near-term outlook for the job market saw the largest decline, unraveling gains from the last quarter. Looking at various demographics, the index found workers who are most likely to stay in their jobs are millennial (113.8), male (110), and baby boomer (106.2) employees. On the flip side, Gen Z (88.3) and female (97.6) employees are more likely to leave. The index’s findings largely align with new jobs data. The latest Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS) data for August found that employers backed off in hiring, and more workers are staying in their jobs. JOLTS reported that the number of employees voluntarily quitting their jobs fell to 3.08 million, the lowest level since September 2020. Meanwhile, the U.S. Department of Labor reported that employers added 254,000 jobs in September, far more than projected, while the unemployment rate unexpectedly ticked lower, down to 4.1% from 4.2% the month prior. The agency also reported that worker wages increased 0.4% for the month, rising to four percent year over year.
New Jersey’s statewide minimum wage will increase by US$0.36 to $15.49 per hour for most employees, effective Jan. 1, 2025. The New Jersey Department of Labor and Workforce Development (NJDOL) sets the minimum wage for the coming year based on any increase in Consumer Price Index (CPI) data provided by the U.S. Bureau of Labor Statistics. “Aligning the state minimum wage with any increases in the cost of living is a critical step toward economic fairness and security for all New Jersey workers,” said Robert Asaro-Angelo, labor commissioner. “This adjustment fosters a more equitable economy and ensures our workforce can continue to thrive.” Under the law, the minimum wage rate for employees of seasonal and small employers will continue to increase gradually until 2028 to lessen the impact on those businesses. The minimum hourly wage for these employees will increase to $14.53 on Jan. 1, up from $13.73. New Jersey’s minimum wage increase is not unlike increases set for other states and cities. In 2025, minimum wage in Rhode Island, Illinois, and Delaware wage is set to increase to $15 per hour. New York State’s minimum wage will increase to $15.50 on Jan. 1, 2025. On July 1, Chicago already set its minimum wage at $16.20 an hour. Other states with minimum wages set at $15 or more include: California, Connecticut, Maryland, Massachusetts, Washington, and Washington, D.C. Currently, Washington, D.C., has the highest state/territory minimum at $17.50. In November, voters will decide whether to increase California’s minimum wage gradually to $18 an hour, which would be the highest statewide minimum wage by 2026. In California, fast-food workers already must be paid at least $20 per hour. Nearly 40 California cities already have local minimum wages higher than the state’s.
With the growth of artificial intelligence (AI) in employee recruitment, the U.S. Department of Labor (DOL) on Sept. 24 released AI & Inclusive Hiring Framework, a new tool designed to support the inclusive use of AI in employers’ hiring technology and increase benefits to disabled job seekers. Published by the Partnership on Employment & Accessible Technology, the framework will help employers reduce the risks of creating unintentional forms of discrimination and barriers to accessibility as they implement AI hiring technology. Funded by the department’s Office of Disability Employment Policy (ODEP), the initiative will also help workers and job seekers navigate the potential benefits and challenges they may face when encountering AI-enabled technologies. The framework has 10 focus areas, including practices, goals, and sample activities that employers can adopt in their AI governance and disability-inclusive hiring initiatives. Each area has information on maximizing benefits and managing risks for workers and job seekers when an organization assesses, acquires, or deploys an AI hiring technology. “The ODEP works with many employers eager to hire people with disabilities and benefit from their talents,” said Taryn Williams, assistant secretary for disability employment policy. “These employers recognize that AI tools can improve recruitment and hiring but may also impact workplace culture and inclusion of disabled employees. The AI & Inclusive Hiring Framework published today charts a clear course for employers to navigate this transformation successfully.” The initiative aligns with the Biden-Harris administration’s commitment to prevent AI-powered employment tools from hindering U.S. workers’ employment prospects. In October 2022, the White House’s Office of Science and Technology Policy released its Blueprint for an AI Bill of Rights to promote more equitable and inclusive digital hiring practices with workers with disabilities and other underserved communities.
A new study reveals that Georgians are most eager to find jobs in the United States, with the highest volume of monthly job-hunting keyword searches per 100,000 people. The localization management platform Centus used Google Keyword Planner to analyze the search volume data for each U.S. state in the past year for keywords related to finding a job. These keywords included “Glassdoor,” “ZipRecruiter,” “Indeed Jobs,” and “Job near me.” To avoid population bias, a monthly search volume per 100,000 people was then calculated. Top 10 most eager states to find a new job Georgia—4,272 monthly Google searches for job-hunting keywords per 100,000 people. On average, the state has a total of 471,142 searches for job-hunting keywords every month. Delaware—3,561 monthly searches for keywords related to finding a job per 100,000 residents, and an average monthly total of 36,743 searches. Florida—3,546 monthly searches for job-hunting keywords for every 100,000 people, and a total of 801,696 searches on average per month. Mississippi—3,516 searches every month for every 100,000 people, and a total of 103,353 job-seeking searches per month. Maryland—3,459 monthly searches per 100,000 people, and a total of 213,755 each month on average. North Carolina—3,428 monthly searches for every 100,000 people, and an average monthly total of 371,397 over the last year. Texas—3,422 monthly searches on average per 100,000 people, and a total of 1,043,728 every month—the second highest on the list. Illinois—3,389 monthly searches for every 100,000 residents, and a total of 425,321 per month over the last year. Arizona—3,360 monthly job-hunting searches for every 100,000 people, and a total of 249,675 searches per month. South Carolina—3,318 monthly searches on average per 100,000 people, and a total of 178,283 searches every month over the last year.
On Tuesday, a federal judge in Texas barred a U.S. Federal Trade Commission (FTC) rule banning noncompete agreements from being enacted. Reuters reported the judge said the FTC, which is an antitrust law watchdog, does not have the authority to ban practices it deems unfair methods on competition. This same judge had temporarily blocked the rule in July. In response, the FTC said it is considering an appeal. The ban was set to go into effect Sept. 4. While the FTC's rule would have been the first nationwide ban, California, Minnesota, Oklahoma, and North Dakota have already banned noncompete agreements. At least a dozen other states have also passed laws limiting their use. The FTC said an estimated 30 million workers—nearly one in five Americans—are subject to a noncompete clause. Last week, a U.S. district judge in Ocala, Florida, also blocked the FTC from applying the rule to real estate developer Properties of the Villages, pending the outcome of the company's lawsuit claiming the commission lacked the power to institute a ban, Reuters reported. At least three lawsuits have been filed challenging the ban.
Startups have lost their luster, according to a new report. Nearly a quarter (24%) of workers and 27% of women said startup culture is toxic in the report. In turn, 69% of respondents believe it’s harder for startups to succeed in 2024. The report found that the landscape has shifted as more workers value work-life balance over the traditional startup allure of potential wealth and trendy office perks. The study found: 21% would never work for a startup, citing a lack of job security, layoff risk, and toxic work environments. 30% say office perks are less appealing than they used to be. One in four believe startups are boys’ clubs. With more than one in 10 respondents declaring startup culture dead, the survey highlighted the significant deterrents to startup appeal: 75% cited long hours. 43% said the high-risk/reward model. 36% named the necessity of living in a tech hub city. Interestingly, the survey also found three in four people prefer remote work to office perks. Most (89%) would join a startup if they could work remotely.
