WEBVTT - ZipRecruiter CEO Says Coronavirus Could Impact Hiring

0:00:00.120 --> 0:00:03.680
<v Speaker 1>You're listening to Bloomberg Business Week with Carol Masser and

0:00:03.800 --> 0:00:14.239
<v Speaker 1>Jason Kelly on Bloomberg Radio. Tomorrow, we get update on

0:00:14.440 --> 0:00:17.560
<v Speaker 1>the work world, specifically the labor market that closely watched

0:00:17.600 --> 0:00:20.919
<v Speaker 1>monthly jobs report from the US Labor Department. Let's talk

0:00:20.960 --> 0:00:23.640
<v Speaker 1>about what's going on. Ian Siegel is with US, co

0:00:23.720 --> 0:00:26.279
<v Speaker 1>founder and CEO of the online employment marketplace. We're talking

0:00:26.280 --> 0:00:30.080
<v Speaker 1>about ZIP recruiter joining us on the phone from Santa Monica.

0:00:30.440 --> 0:00:32.880
<v Speaker 1>We're going to talk about work and so on and

0:00:33.040 --> 0:00:38.279
<v Speaker 1>so forth. But I do wonder, Um, this virus, how

0:00:38.440 --> 0:00:43.519
<v Speaker 1>is it, I fit at all impacting your world? Well,

0:00:43.560 --> 0:00:47.479
<v Speaker 1>obviously this is something that we're watching very closely, and

0:00:48.040 --> 0:00:52.000
<v Speaker 1>so far it hasn't directly impacted the number of jobs

0:00:52.080 --> 0:00:55.880
<v Speaker 1>that are being posted, but certainly it's impacting the practices

0:00:55.920 --> 0:01:00.640
<v Speaker 1>that employers are using as they interview candidates. Um, Video

0:01:00.720 --> 0:01:04.480
<v Speaker 1>interviewing is on a steep rise right now as employers

0:01:04.520 --> 0:01:06.399
<v Speaker 1>try to cut down the number of visitors who comes

0:01:06.440 --> 0:01:09.920
<v Speaker 1>through their actual physical locations. Yeah, it's sort of amazing.

0:01:10.160 --> 0:01:11.839
<v Speaker 1>We had a great story, one of the most stories

0:01:11.840 --> 0:01:15.360
<v Speaker 1>of Bloomberg this entire week was about how Wall Street poaching,

0:01:15.880 --> 0:01:18.560
<v Speaker 1>you know, sort of in the post bonus season, which

0:01:18.600 --> 0:01:22.920
<v Speaker 1>you know well is you know, essentially ground to a halt. Uh,

0:01:23.080 --> 0:01:25.560
<v Speaker 1>you know, all that sort of lateral movement or a

0:01:25.640 --> 0:01:28.000
<v Speaker 1>lot of that literal movement because of that, you know,

0:01:28.080 --> 0:01:30.240
<v Speaker 1>not being able to do that sort of final interview

0:01:30.280 --> 0:01:32.360
<v Speaker 1>where you bring somebody in and you show them around

0:01:32.520 --> 0:01:34.760
<v Speaker 1>and they shake hands. I mean, we're not even shaking

0:01:34.800 --> 0:01:38.280
<v Speaker 1>hands with people we know at this point in some ways. Yeah,

0:01:38.319 --> 0:01:40.480
<v Speaker 1>I mean, this is going to be really interesting because

0:01:41.040 --> 0:01:44.680
<v Speaker 1>one of the big themes in modern recruiting is around

0:01:44.760 --> 0:01:47.920
<v Speaker 1>flexibility at the workplace and whether or not companies are

0:01:47.920 --> 0:01:52.040
<v Speaker 1>going to allow telecommuting as an example, and the coronavirus

0:01:52.200 --> 0:01:54.480
<v Speaker 1>almost as a silver lining, is going to give us

0:01:54.520 --> 0:01:58.360
<v Speaker 1>a really interesting opportunity to study many companies ability to

0:01:58.440 --> 0:02:02.440
<v Speaker 1>allow telecommuting as an option. It's a great point. It's

0:02:02.480 --> 0:02:03.880
<v Speaker 1>a great point. You know. It's funny we two had

0:02:03.920 --> 0:02:08.160
<v Speaker 1>a UM Bureau of Labor Statistics or Labor Department statistic

0:02:08.240 --> 0:02:10.040
<v Speaker 1>earlier in the weekend I just talked about. I think

0:02:10.360 --> 0:02:12.120
<v Speaker 1>I think it was roughly a quarter of people can

0:02:12.160 --> 0:02:15.600
<v Speaker 1>actually work from home. So it's not like, you know,

0:02:15.960 --> 0:02:19.440
<v Speaker 1>we think the world has moved so easily into being

0:02:19.480 --> 0:02:21.120
<v Speaker 1>able to do that. There's a lot of jobs that

0:02:21.200 --> 0:02:23.600
<v Speaker 1>you can't do from home, you know. All right, So

0:02:23.760 --> 0:02:26.960
<v Speaker 1>let's talk about that monthly job report. And I'm wondering

0:02:27.000 --> 0:02:30.919
<v Speaker 1>if Ian you're already starting to see kind of you know,

0:02:31.320 --> 0:02:34.360
<v Speaker 1>your view on the world in two buckets, the pre

0:02:34.520 --> 0:02:37.240
<v Speaker 1>virus concerns versus now what you've seen as of late.

0:02:37.320 --> 0:02:39.840
<v Speaker 1>So I guess I'm wondering, what was the momentum before

0:02:40.520 --> 0:02:44.920
<v Speaker 1>um the virus worry seem to overtake economic concerns, market concerns.

0:02:45.400 --> 0:02:47.920
<v Speaker 1>What were you seeing in terms of labor market momentum

0:02:48.720 --> 0:02:51.840
<v Speaker 1>and what are you seeing now? Well, first this was,

0:02:52.160 --> 0:02:55.239
<v Speaker 1>I mean where this has been the most tremendous run

0:02:55.400 --> 0:02:57.359
<v Speaker 1>of the job market over a ten year period that

0:02:57.400 --> 0:02:59.880
<v Speaker 1>any of us have seen in our lifetime. The resiliency

0:03:00.120 --> 0:03:02.440
<v Speaker 1>of this job market has been extraordinary. And it doesn't

0:03:02.480 --> 0:03:05.239
<v Speaker 1>matter what's happening in politics, It doesn't seem to matter

0:03:05.320 --> 0:03:08.359
<v Speaker 1>what's happening with international trade. This job market has just

0:03:08.760 --> 0:03:13.960
<v Speaker 1>consistently plowed along. Now we have a pandemic, and really

0:03:14.040 --> 0:03:17.679
<v Speaker 1>information about the pandemic is just starting to be collected.

0:03:18.040 --> 0:03:20.080
<v Speaker 1>So I don't think we're going to see any impact

0:03:20.520 --> 0:03:23.519
<v Speaker 1>in the previous month's job report. I think this is

0:03:23.600 --> 0:03:25.480
<v Speaker 1>the month where we're going to start to really see

0:03:25.520 --> 0:03:28.080
<v Speaker 1>whether or not there's going to be impact. There's surveys

0:03:28.120 --> 0:03:30.120
<v Speaker 1>being done in our industry left and right right now,

0:03:30.240 --> 0:03:33.079
<v Speaker 1>and multiple employers are already saying it's starting to affect

0:03:33.120 --> 0:03:36.560
<v Speaker 1>their hiring plans, although they are using the word moderately.

0:03:37.200 --> 0:03:41.680
<v Speaker 1>So far, moderately is the word of the day. But

0:03:42.000 --> 0:03:43.920
<v Speaker 1>having said that, so you said, you know you're seeing

0:03:43.920 --> 0:03:46.440
<v Speaker 1>more people do in terms of interviews online, but are

0:03:46.480 --> 0:03:51.560
<v Speaker 1>you seeing less postings happen yet? Are not yet? No?

0:03:51.880 --> 0:03:55.440
<v Speaker 1>So far, posting volume has stayed consistent. It's something we

0:03:55.520 --> 0:03:58.760
<v Speaker 1>watch closely, literally on a daily basis, and so we

0:03:58.800 --> 0:04:03.320
<v Speaker 1>aren't seeing the direct impact on hiring. However, a multitude

0:04:03.480 --> 0:04:07.400
<v Speaker 1>of employers are going public with what their coronavirus response

0:04:07.480 --> 0:04:10.880
<v Speaker 1>plans are, and it's everything from living limiting travel for

0:04:10.960 --> 0:04:14.080
<v Speaker 1>their employees to refusing to let candidates come into the

0:04:14.120 --> 0:04:16.800
<v Speaker 1>offices for final interviews. As we were discussing the requiring

0:04:16.839 --> 0:04:19.760
<v Speaker 1>that they'd be done over say video. It will be

0:04:19.880 --> 0:04:24.040
<v Speaker 1>interesting to see whether or not that eliminates some percentage

0:04:24.040 --> 0:04:26.480
<v Speaker 1>of hiring or merely slows it down, right, I think

0:04:26.520 --> 0:04:29.120
<v Speaker 1>we're all going to be developing new muscle and how

0:04:29.200 --> 0:04:32.080
<v Speaker 1>we recruit without having the opportunity to be physically co

0:04:32.279 --> 0:04:35.960
<v Speaker 1>located with the candidate. Well, and as you said, Ian

0:04:36.040 --> 0:04:38.480
<v Speaker 1>and you guys have done a lot of work recently

0:04:38.760 --> 0:04:41.880
<v Speaker 1>as I understand it, around AI and the and the

0:04:42.040 --> 0:04:46.080
<v Speaker 1>future of work. How does that play into the current environment.

0:04:46.160 --> 0:04:48.520
<v Speaker 1>And you alluded to earlier this idea that you know,

0:04:48.600 --> 0:04:50.080
<v Speaker 1>this is a little bit of a test case in

0:04:50.320 --> 0:04:53.479
<v Speaker 1>terms of both where we work and how we work.

0:04:53.720 --> 0:04:56.040
<v Speaker 1>How does that sort of synthesize with some of your

0:04:56.080 --> 0:05:00.400
<v Speaker 1>findings in your recent studies. Well, it's important note that

0:05:00.680 --> 0:05:04.960
<v Speaker 1>millennials is a generation prioritize flexibility and telecommuning as their

0:05:05.120 --> 0:05:09.120
<v Speaker 1>number two key requirement when they consider a job. Number

0:05:09.160 --> 0:05:12.080
<v Speaker 1>one is salary. So this is a generation that desperately

0:05:12.160 --> 0:05:15.880
<v Speaker 1>wants the opportunity to work from home, and the tools

0:05:16.040 --> 0:05:20.360
<v Speaker 1>have evolved, whether it's a video interviewing or it's communication

0:05:20.440 --> 0:05:25.679
<v Speaker 1>platforms like Slack or collaborative docs that can be worked

0:05:25.720 --> 0:05:29.440
<v Speaker 1>on by a group of people together that Google provides. Really,

0:05:29.720 --> 0:05:31.880
<v Speaker 1>you're in your living in a time where it's easier

0:05:31.960 --> 0:05:35.120
<v Speaker 1>to be telecommuting than it ever has been before. But uh,

0:05:35.600 --> 0:05:39.200
<v Speaker 1>companies are really reluctant to allow their employees to do it.

0:05:39.640 --> 0:05:43.600
<v Speaker 1>And whether that's because of strong intuition or whether that's

0:05:43.640 --> 0:05:45.920
<v Speaker 1>just because of tradition. I think we're actually about to

0:05:46.000 --> 0:05:50.200
<v Speaker 1>find out, because coronavirus is effectively leading to a grand

0:05:50.279 --> 0:05:53.520
<v Speaker 1>experiment where a lot of companies and really big companies

0:05:54.000 --> 0:05:58.720
<v Speaker 1>are starting to loosen the reins on requiring employees to

0:05:58.760 --> 0:06:00.840
<v Speaker 1>come in. So we're going to find out there's this

0:06:00.960 --> 0:06:03.280
<v Speaker 1>may be a huge shift in how work happens in

0:06:03.320 --> 0:06:06.080
<v Speaker 1>America over the next nine months. You are listening to

0:06:06.200 --> 0:06:09.120
<v Speaker 1>Bloomberg business Week. Let's continue our conversation with Ian Siegel,

0:06:09.400 --> 0:06:12.040
<v Speaker 1>co founder and CEO of zip Recruiter, joining us on

0:06:12.080 --> 0:06:16.160
<v Speaker 1>the phone from Lovely Santa Monica. So, Ian, I want

0:06:16.200 --> 0:06:18.960
<v Speaker 1>to get into, you know, some of what you've also

0:06:19.160 --> 0:06:22.919
<v Speaker 1>found through your Future of Work report, and specifically about

0:06:23.320 --> 0:06:27.720
<v Speaker 1>where workers are going, because we get the sense from

0:06:27.839 --> 0:06:32.760
<v Speaker 1>the stats that we have access to publicly that folks

0:06:32.800 --> 0:06:35.839
<v Speaker 1>are leaving New York, folks are leaving California, They're headed

0:06:35.920 --> 0:06:40.000
<v Speaker 1>south or at least further into the country. Does your

0:06:40.160 --> 0:06:44.240
<v Speaker 1>data Do your data back that up? Yeah? I think

0:06:44.320 --> 0:06:48.880
<v Speaker 1>that the four biggest technology centers in the country are

0:06:49.000 --> 0:06:54.280
<v Speaker 1>in California, New York, Washington, and mass Massachusetts. And what

0:06:54.440 --> 0:06:58.480
<v Speaker 1>we're seeing is a every year migration from these four

0:06:58.600 --> 0:07:02.040
<v Speaker 1>states to uh really all reasons of the country. But

0:07:02.120 --> 0:07:04.920
<v Speaker 1>there are ten states in particular that people are moving

0:07:04.960 --> 0:07:07.640
<v Speaker 1>out of those four states into and as a result

0:07:07.720 --> 0:07:12.679
<v Speaker 1>of that, that talent um is creating new tech centers

0:07:13.040 --> 0:07:16.000
<v Speaker 1>in places where you might not have expected them to emerge.

0:07:16.400 --> 0:07:18.320
<v Speaker 1>And so what we're what we're really seeing is an

0:07:18.360 --> 0:07:22.920
<v Speaker 1>emerging group of would be tech powerhouse states and they

0:07:22.960 --> 0:07:28.440
<v Speaker 1>are set up to disproportionately be advantaged from the changing

0:07:28.920 --> 0:07:32.520
<v Speaker 1>nature of work and in particular from the impact of AI.

0:07:32.840 --> 0:07:40.840
<v Speaker 1>The states being right now it looks like Colorado, Utah, Virginia, Texas, Arizona, Florida,

0:07:40.920 --> 0:07:45.120
<v Speaker 1>North Carolina, Nevada, Oregon, and Idaho of interesting because it's

0:07:45.200 --> 0:07:48.640
<v Speaker 1>cheaper there to set up shop or what. Well, what

0:07:48.840 --> 0:07:51.040
<v Speaker 1>we did a deep dive study into why those ten

0:07:51.120 --> 0:07:52.800
<v Speaker 1>states are doing as well as they are, and really

0:07:52.840 --> 0:07:55.680
<v Speaker 1>it's specific cities within those states that are the tip

0:07:55.720 --> 0:07:58.920
<v Speaker 1>of the spear leading those states to prominence. And in

0:07:59.120 --> 0:08:01.680
<v Speaker 1>almost all case as we saw the same pattern, which

0:08:01.880 --> 0:08:06.560
<v Speaker 1>was the local government took measures to become more business

0:08:06.640 --> 0:08:09.240
<v Speaker 1>friendly to draw businesses in. But that was only half

0:08:09.280 --> 0:08:11.440
<v Speaker 1>the equation. The other thing they did is make a

0:08:11.520 --> 0:08:16.960
<v Speaker 1>conscious effort to become family friendly, low cost living destinations.

0:08:17.400 --> 0:08:20.520
<v Speaker 1>So they did things like revitalize their downtowns where they

0:08:20.600 --> 0:08:24.280
<v Speaker 1>planted trees, put in bike lanes, buried the utilities. Um.

0:08:24.440 --> 0:08:27.440
<v Speaker 1>They created a lot of affordable single family homes and

0:08:27.880 --> 0:08:32.360
<v Speaker 1>or chief apartments. And then they also all happened to

0:08:32.400 --> 0:08:35.960
<v Speaker 1>have good school districts. So you saw this perfect storm

0:08:36.240 --> 0:08:40.200
<v Speaker 1>of business friendly environment plus family friendly environment. And by

0:08:40.280 --> 0:08:42.600
<v Speaker 1>the way, a lot of these cities did this consciously.

0:08:43.080 --> 0:08:45.199
<v Speaker 1>So it turns out this is a reality that you

0:08:45.320 --> 0:08:48.520
<v Speaker 1>can create if you are a local government. UM. And

0:08:48.640 --> 0:08:51.079
<v Speaker 1>it happens really fast. If you look at places like

0:08:51.320 --> 0:08:56.800
<v Speaker 1>Portland's and Austen, their transformations happened in less than seven years. Yeah,

0:08:56.920 --> 0:08:58.520
<v Speaker 1>and we hear, I mean we hear about it to

0:08:58.600 --> 0:09:02.160
<v Speaker 1>the point where, you know, and Nashville obviously, uh had

0:09:02.200 --> 0:09:05.599
<v Speaker 1>a terrible national or natural disaster happened this week with

0:09:05.760 --> 0:09:08.679
<v Speaker 1>the tornadoes, But you know, you hear about Nashville and

0:09:08.679 --> 0:09:12.559
<v Speaker 1>Austin specifically, you know, struggling to even keep up with

0:09:13.240 --> 0:09:15.439
<v Speaker 1>with some of that growth. Do you guys get the

0:09:15.520 --> 0:09:18.400
<v Speaker 1>sense that this is a sort of a secular thing

0:09:18.600 --> 0:09:21.800
<v Speaker 1>or is it more cyclical and jobs ultimately will go back.

0:09:21.840 --> 0:09:24.520
<v Speaker 1>I mean, I think especially of California, I know, and

0:09:24.760 --> 0:09:27.080
<v Speaker 1>and in New York to to some extent, because these

0:09:27.120 --> 0:09:30.400
<v Speaker 1>are long term, uh places. The guy in New York

0:09:30.480 --> 0:09:34.439
<v Speaker 1>says rather defensively, Well, I mean, the four top states

0:09:34.520 --> 0:09:38.199
<v Speaker 1>have six of the high tech ai juest currently, and

0:09:38.400 --> 0:09:42.880
<v Speaker 1>the initial deployment of those technologies for consumer adoption are

0:09:42.960 --> 0:09:47.560
<v Speaker 1>happening in those four states disproportionately as well. However, Uh,

0:09:47.720 --> 0:09:51.439
<v Speaker 1>if you look at the rate at which tech centers

0:09:51.520 --> 0:09:54.319
<v Speaker 1>are growing in the ten emerging states that I mentioned,

0:09:54.880 --> 0:09:56.760
<v Speaker 1>it's two and a half times faster than what you're

0:09:56.800 --> 0:10:00.480
<v Speaker 1>seeing in any of the four current pioneer states. It's

0:10:00.480 --> 0:10:04.599
<v Speaker 1>a massive, massive influx of talent to those areas. And

0:10:04.679 --> 0:10:06.959
<v Speaker 1>if you look at the nature of the applications that

0:10:07.080 --> 0:10:11.680
<v Speaker 1>AI is being deployed for, it doesn't seem like it's

0:10:11.760 --> 0:10:15.199
<v Speaker 1>going to be limited to the four big winners. It

0:10:15.280 --> 0:10:18.240
<v Speaker 1>definitely seems like this is not just a moment in time,

0:10:18.280 --> 0:10:21.160
<v Speaker 1>but this is a trend. I do wonder too, how

0:10:21.280 --> 0:10:24.319
<v Speaker 1>much of you know, the migration from a state to

0:10:24.360 --> 0:10:27.800
<v Speaker 1>another state in terms of tech centers and tech hubs.

0:10:28.000 --> 0:10:29.839
<v Speaker 1>How much of is it? Is it because of big

0:10:29.920 --> 0:10:32.640
<v Speaker 1>tech or is it just a lot of smaller players

0:10:32.679 --> 0:10:34.960
<v Speaker 1>as well, Because I do wonder about and this plays

0:10:35.000 --> 0:10:38.640
<v Speaker 1>into in the story the bigger, broader story big tech

0:10:38.760 --> 0:10:43.600
<v Speaker 1>and they're growing influence on our world at large. Yeah,

0:10:43.640 --> 0:10:45.440
<v Speaker 1>I mean, I think big tech is really good at

0:10:45.480 --> 0:10:49.600
<v Speaker 1>what they do, but innovation is the larger these companies become,

0:10:49.640 --> 0:10:51.120
<v Speaker 1>the harder it is for them to do innovation, the

0:10:51.200 --> 0:10:53.280
<v Speaker 1>more they go out and try to acquire innovations that

0:10:53.320 --> 0:10:55.839
<v Speaker 1>have produced it internally. And then you look at and

0:10:55.920 --> 0:10:58.040
<v Speaker 1>then you look at with some of these emerging technology,

0:10:58.040 --> 0:11:01.000
<v Speaker 1>So like, let's take autonomous cars as an examp full um.

0:11:01.520 --> 0:11:05.120
<v Speaker 1>Maybe not surprisingly, but Michigan turns out to be a

0:11:05.320 --> 0:11:09.360
<v Speaker 1>hotbed of innovation around autentomous vehicles. Even have a whole

0:11:09.480 --> 0:11:12.280
<v Speaker 1>city that has been built there just to drive autonomous

0:11:12.360 --> 0:11:14.920
<v Speaker 1>vehicles around the whole fake city so that they can

0:11:14.960 --> 0:11:17.040
<v Speaker 1>get reps and make sure that these cars are safe.

0:11:17.600 --> 0:11:20.320
<v Speaker 1>And then you look at something like drones and drone

0:11:20.360 --> 0:11:24.040
<v Speaker 1>tech can be built anywhere. So I think the the

0:11:24.240 --> 0:11:28.040
<v Speaker 1>big tech disruptions that are imminent, and by imminent, I

0:11:28.080 --> 0:11:30.120
<v Speaker 1>mean next five years or last, like, we can see

0:11:30.160 --> 0:11:32.520
<v Speaker 1>it coming and it's going to radically alter the landscape

0:11:32.520 --> 0:11:36.000
<v Speaker 1>of work. Um, those aren't currently based in the four

0:11:36.120 --> 0:11:40.560
<v Speaker 1>big winners. They are spread across the country. All right,

0:11:40.600 --> 0:11:43.040
<v Speaker 1>we're gonna leave it there, Thank you so much. Ian Siegel,

0:11:43.120 --> 0:11:46.199
<v Speaker 1>co founder CEO of ZIP Recruiter, joining us on the

0:11:46.240 --> 0:11:50.760
<v Speaker 1>phone from Santa Monica. Their recent report Future of Work.

0:11:50.960 --> 0:11:53.360
<v Speaker 1>A lot of good stuff in there, and a lot

0:11:53.400 --> 0:11:55.839
<v Speaker 1>of things to think about. Is we think about sort

0:11:55.880 --> 0:11:58.120
<v Speaker 1>of where people are working, both in the short term

0:11:58.160 --> 0:12:01.839
<v Speaker 1>owing to the coronavirus, but longer term, the geography, the

0:12:02.240 --> 0:12:04.920
<v Speaker 1>sort of sociographics of the United States are changing. I

0:12:04.960 --> 0:12:07.000
<v Speaker 1>do wonder too if companies realize, wow, I can do

0:12:07.120 --> 0:12:08.760
<v Speaker 1>these jobs at home as easily, and that means I

0:12:08.840 --> 0:12:11.000
<v Speaker 1>don't have overhead, I can have smaller facilities. I do

0:12:11.120 --> 0:12:13.000
<v Speaker 1>wonder about the longer term impact.