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Hiring in Distributed World

October 2022 Report by datapeople

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Table of Contents Executive Summary Key Takeaways Introduction: Work From Anywhere, Impact Everywhere (Regardless of Whether Your Jobs Are Remote) The Emergence (and Confusion) of the Hybrid Role The Incredible Remote Hiring Advantage Remote and Hybrid Are Changing Employer Behavior Employers Are Trying To Make Perks More Appealing in a Competitive Talent Market Employers Are Also Trying To Broaden Talent Pools in Both Professional and Frontline Jobs The Emergence of Vaccine Requirements Hiring Successfully in a Distributed World:Tips for Evolving Your Hiring Practices and Improving Your Outcomes Data and Methodology Glossary and Definitions © Tapwage Inc 2022 1

Executive Summary Remote work is shifting the ground beneath hiring teams’ feet – for remote and non-remote jobs alike. We were curious about the impact it’s having on the hiring landscape as a whole. So we analyzed 30 million job posts and hiring outcomes from 2019 onwards to find out. In this report, we cover how remote jobs are impacting candidate pools and how employers are responding. We offer unique data and insights based on actual jobs and candidate behaviors (i.e., not surveys or anecdotes). And we offer helpful tips for attracting large, diverse candidate pools when hiring remote, hybrid, or onsite roles in this new landscape. This report confirms the obvious popularity of remote jobs. Candidate pools for remote jobs are both larger and more diverse than for non-remote jobs. Remote jobs attract 120% larger candidate pools and 120% more female candidates. Remote work has grown 400% since 2019, and today 4 in 5 companies offer remote or hybrid work (a new mix of onsite and remote). Home office stipends have more than doubled, and “work from anywhere” perks are getting more popular. Companies are learning on the fly (e.g., how to correctly title a remote or hybrid job). At the same time, some jobs require onsite work by their very nature (e.g., nurse, warehouse worker). Yet hiring for these roles has become more complicated since the emergence of remote work. Employers are responding by offering new incentives to candidates, including part-time hours, bonuses, and reduced degree requirements. Meanwhile, hovering over everything is COVID-19. Vaccine requirements have increased nearly 5x since 2021. However, they are far more common in North America than in Europe, in ‘blue’ US states than in ‘red’ ones and, perhaps counterintuitively, in office-type jobs than in warehouse- or healthcare-type jobs. These and the hundreds of other insights in this report are based on 30 million real-world job posts and hiring outcomes from over 10,000 employers and 122 different applicant tracking systems. © Tapwage Inc 2022 2

Key Takeaways Remote jobs are 5x pre-pandemic levels In 2019, about 2% of professional jobs were remote. Today, that has grown to 10% and continues to grow dramatically. A new type of role has emerged – the hybrid role (although much confusion remains as to what this is) In 2019, almost no roles were “hybrid.” Today, nearly 6% of professional roles are hybrid (as in work-from-home but with an expectation of going into the office with some frequency). Hybrid roles range from jobs that require going in a few days a week to jobs that have the flexibility to work from home as a perk but require candidates to be located in a specific area for quarterly offsites. Companies have had to adjust. The number of companies with no remote or hybrid roles is at an all-time low. Only 15% of companies have no remote or hybrid roles, down from nearly 50% in 2019. 50% of companies have remote jobs and 30% of companies have hybrid jobs. Remote jobs are much more popular in North America than Europe Remote jobs account for almost 1 in 6 jobs in the US and Canada, while they account for 1 in 10 jobs in the UK and Europe. Remote jobs are increasingly providing remote-specific perks and benefits Home office stipends have more than doubled since 2019. A new perk that is emerging is “work from anywhere (for a limited time),” which allows employees to be truly nomadic for a short period of time. In-person events and onsites were a perk in 2021, but do not appear to be growing in popularity. © Tapwage Inc 2022 3

Remote jobs attract 2.2x as many candidates Remote jobs attract 120% larger candidate pools than non-remote positions. These candidate pools are largely inbound, meaning they are not sourced or prospected. This effect is seen across all role types and seniority levels. Remote jobs attract 2.2x more women Remote roles attract 120% more female candidates. This effect is seen across all role types and seniority levels. Vaccine requirements in job posts have gone up 4.5x from 2021 They are represented in ~9% of job posts in 2022, up from 2% in 2021. Frontline jobs (i.e., jobs that require onsite work) are less likely to contain vaccine requirements than professional jobs (6% vs. 10%). However, both job types have observed a notable increase in vaccine requirements compared to 2021(~2% for both). Vaccine requirements are not distributed evenly The US and Canada demonstrate the highest rates of vaccine requirement language in job posts (11% and 12%, respectively), while the UK and Europe have clear vaccine requirements in <2% of job posts. In the US, jobs in blue states are 4x more likely to have vaccine requirements than jobs in red states. Bonuses have increased significantly for frontline roles Historically, health and transportation roles have had higher rates of bonuses, and this has grown significantly in 2022 as the hiring market continues to be very tight. There’s a significant increase in jobs that encourage second-chance hiring (applicants with prior convictions) This has increased to 7% of jobs from <1% in 2019. This trend is being seen even outside of California, which specifically enacted Fair Chance hiring ordinances in 2018. © Tapwage Inc 2022 4

Work From Anywhere, Impact Everywhere (Regardless of Whether Your Jobs Are Remote) The ground is shifting beneath hiring teams’ feet. Remote jobs are now wildly popular, attracting larger and more diverse candidate pools than non-remote jobs. Meanwhile, remote work has made hiring for non-remote jobs more complicated. Companies are having to adjust on the fly. We’re curious about the effect of remote work on the hiring landscape as a whole and how hiring teams can better adapt. In this report, we address its impact on candidate pools and how employers are responding. We also offer helpful tips for employers hiring remote, hybrid, or onsite roles in this new landscape. Our dataset for this study includes 30 million real-world job posts and their hiring outcomes (i.e., actual jobs data). It comes from over 10,000 employers and 122 different applicant tracking systems. Our dataset is unique. Because of that, the findings, insights, and actionable advice in this report are unique as well. The Emergence (and Confusion) of the Hybrid Role In a return-to-office world, hybrid is the new remote As the world has started its gradual return to the office, a new type of role has emerged – the hybrid role. This has been pioneered by companies such as Apple and GM who are asking employees to return three days a week. Hybrid roles have gone through exponential growth in the last two years, from almost no presence pre-pandemic to now being nearly 6% of all professional jobs. In this report, we define hybrid roles as those that combine work from home with onsite work. Employers don't necessarily need to use the term “hybrid” in their job posts (and it certainly was not common in 2019). We describe this further in the definitions section. © Tapwage Inc 2022 5

Hybrid jobs are finding their stride in specific geographies and experience levels Hybrid as an idea isn’t evenly distributed, however: ● These roles are much more popular in North America, Europe, and Australia, accounting for 1 in 14 professional roles. Companies hiring in Asia, South America, and Africa are still focused on traditional onsite and the occasional remote roles. ● These roles also tend to skew more Senior. Jobs requiring at least 5 years of experience are twice as likely to be hybrid roles compared to Junior and Entry-Level positions. This suggests that companies are still experimenting with hybrid roles for different roles and levels. Several companies, especially financial institutions such as JPMorgan Chase and Goldman Sachs, have been vocal about the need for onsite presence for the career development of more junior talent. The data suggests that it may be how the larger employers are thinking about the distribution of hybrid roles in their workforce. But there is a lot of confusion about exactly what hybrid is Despite its rapidly increasing popularity among employers, the concept of hybrid work has led to a lot of confusion among candidates as discussed in recent articles. This is in part because employers continue to mislabel hybrid roles as “remote” (perhaps to make these jobs more appealing) and overstate the flexibility of the hybrid option. Common confusions in job posts include: ● Using “remote” in the title or location but describing the role as hybrid in the job post: “This position is a full-time remote/hybrid role with 2 days in office” ● Inconsistencies between the job description and the benefits section: “This is a full-time position based in our Springfield office.” Perks: “We have a flexible work from home policy, especially for those with families or commuters.” © Tapwage Inc 2022 6

The Incredible Remote Hiring Advantage Remote jobs are clearly getting popular with employers. Is that a result of them being preferred by candidates? The data seems to suggest as much. Employers have paid close attention in recent times to potential attrition risk as companies announce their return-to-office policies. Declarations of return-to-office or hybrid work policies by large companies like Tesla, Goldman Sachs, and Bank of America have elicited backlash from employees and resulted in predictions that they are kickstarting their own local “Great Resignation.” Our data demonstrates that candidates have a meaningful and enduring preference for remote work. Remote jobs attract 2.2x larger candidate pools In 2022, professional remote roles attracted substantially larger candidate pools than their non-remote counterparts. Surprisingly, the advantage of remote roles has increased since 2019, and in 2022, remote roles still attract candidate pools that are 120% larger than non-remote roles. The difference is largely in inbound candidate pools In what continues to be an incredibly tight talent market, remote jobs attract 125% larger inbound candidate pools than non-remote roles. We see this impact regardless of job type or experience level. © Tapwage Inc 2022 7

Remote jobs attract 2.2x more women Anecdotal evidence and surveys have indicated that remote jobs may be more attractive to women, possibly due to the disproportionate burden of caregiving on women in our societies. Our data shows that in 2022, remote jobs attracted 120% more female candidates. This advantage continues. The remote advantage appears to endure Not only is the massive candidate preference for remote not waning, it appears to be increasing quarter over quarter in 2022. It is likely that as more companies indicate a move to onsite or hybrid, candidates specifically gravitate to remote jobs. © Tapwage Inc 2022 8

Remote and Hybrid Are Changing Employer Behavior Was the surge of remote jobs a pandemic-related phenomenon or was the pandemic a catalyst for a bigger shift in the way we work? The data is starting to suggest the latter, with remote jobs continuing the exponential shift deep into 2022. Despite the easing of public health restrictions in many locations, the pandemic-related increase in the adoption of remote work has not significantly reversed, indicating that remote work is a permanent feature of work life. Remote jobs continue to grow rapidly and account for 10% of all professional jobs – a 5x increase from 2019. Most remote roles have some form of a geographical restriction – typically country or state. City-based remote/work-from-home roles are popular, but this bleeds into the debate as to whether those roles can be truly considered remote versus hybrid. Remote jobs are most popular in North America In 2022, remote jobs are less popular outside of North America and Europe. In North America, remote jobs account for almost 1 in 7 professional jobs in the US and 1 in 10 professional jobs in Canada. Remote jobs are more popular in the UK than in continental Europe, accounting for 8% and 6% of professional jobs, respectively. © Tapwage Inc 2022 9

Remote work is an option primarily available to more experienced workers As we saw with hybrid jobs, remote jobs are less popular among jobs that require no or little previous working experience (Entry-Level and Junior roles) as opposed to those that require significant amounts of prior experience (Mid-Level and Senior roles). In the US, tech roles have nearly double the chances of being remote than non-tech roles. The impact for General & Admin roles is much less pronounced. The number of companies with no remote or hybrid roles is at an all-time low Pre-pandemic, nearly 50% of companies hired exclusively onsite. This number has halved as most companies today recognize the need to hire remote or hybrid positions to stay competitive in the talent market. The pandemic has also catalyzed the rapid growth of the remote-first company (where more than 50% of the advertised jobs are remote). These have grown 10x from 2% of employers to nearly 27% of employers. © Tapwage Inc 2022 10

The proportion of companies that were partially remote has largely stayed the same, although the number of remote jobs has gone up exponentially, as seen earlier in this section. Startups and unicorns have been the fastest to adapt At the beginning of the pandemic, startups and unicorns were among the fastest to adapt. Nearly all of them (90%+) now support remote work, compared to 53% and 63% respectively pre-pandemic. Larger employers like Fortune 500 and public companies already supported remote jobs in some part of their workforce, given the larger size of their workforce and hiring needs. But even there, we’ve seen a substantial and sustained reduction in onsite-only companies since 2019. © Tapwage Inc 2022 11

In the US, the growth in remote jobs is largely due to expansion. In Europe, it’s largely due to adoption. In the United States, remote job growth is driven primarily by expansion of remote hiring at companies that were already doing so in some parts of their organization. In Canada, the UK, and continental Europe, it’s driven more strongly by adoption of remote work by companies that were previously entirely onsite. In the United States, Canada, and continental Europe, hybrid job growth appears to be primarily driven by expansion. This means that already-remote companies are also adding hybrid jobs. In the UK, there is a stronger adoption of hybrid jobs from primarily onsite companies. This suggests that hybrid jobs are being used as a mechanism to give flexible options to onsite jobs. © Tapwage Inc 2022 12

Employers Are Trying To Make Perks More Appealing in a Competitive Talent Market The talent market continues to be extraordinarily competitive both in the US and globally. The two areas that are consistently the most impacted are tech hiring (for both engineering and non-engineering roles like product management), as well as frontline hiring (e.g. retail, warehouse, and manufacturing). This has resulted in a range of perks and benefits focused on appealing to job seekers in this new environment. Professional jobs are increasingly providing perks and benefits relating to remote work The shift to remote work has also created opportunities for adapting benefits to be more in line with the way that people now work. We are seeing a substantial decrease in food (free in-office meals and snacks) and commuter benefits. Conversely, three remote benefits have increased substantially: ● Benefits focused on improving home office productivity such as stipends (either one-time or periodic) ● In-person company events such as offsites ● Work from anywhere (usually time-bound – such as one month in a year – to allow remote or hybrid employees to take full advantage of their wanderlust and travel internationally if they so choose) © Tapwage Inc 2022 13

Home office stipends are growing in popularity In 2022, 4% of companies explicitly call out home office stipends in job posts. This is an especially popular benefit among startups; 5% of startups explicitly call this out in their posts. These take on a range of different approaches: ● One-time setup stipends: ○ Remote first – work from anywhere in Canada with a budget to set up your home office ○ $300 one-time WFH stipend ○ Stipend for one of the following: home office or relocation ● Coworking space reimbursements ● Monthly stipends for expenses, which can vary from being specific to referring to generic reimbursement: ○ $75 monthly remote work stipend ○ Home office setup: Get a laptop + $130 monthly stipend for home expenses ○ Monthly home office allowance and a choice of hardware Phone and internet reimbursements are sometimes seen but surprisingly rare. Work from anywhere is growing in popularity among jobs based in the UK and Europe Having the flexibility to work from anywhere in the world for a period of time is one of the less popular benefits, but it is growing. It is most popular in roles based in the UK and Europe and is most prevalent in non-remote jobs. This suggests it may be a way to enable flexibility in onsite jobs. We’ve seen this offering range in length from 3 to 6 weeks. Some examples of the way in which this is communicated in job posts include: ● “Work from anywhere” weeks – up to four weeks working from anywhere, including from another country, as long as you have an internet connection! ● We offer the opportunity for employees to travel and explore while working from anywhere. Employees can extend vacations and spend more time with family, and work from anywhere for up to 90 days. ● Work from abroad policy! Up to 6 weeks to work from anywhere in the world! © Tapwage Inc 2022 14

In-person team events have plateaued as an offered perk In-person team events reached peak popularity as an advertised perk in 2021 and are seeing signs of plateauing as either companies return to the office/adopt hybrid work or these have become commonplace and expected. They are very popular among big tech companies. Nearly 10% of big tech companies reference in-person events as perks in their jobs. There are typically two ways in which this perk is offered: ● Non-specific references to in-person offsites are most popular, but the use of defined examples is growing: "Quarterly team offsites,” "Team offsites 1-2 times a year. Last one was in Istanbul!" ● Offsites are not always described with other perks. Sometimes they are included in the responsibilities section of the job post: “You’ll work with teammates throughout the world but you will also have occasional travel for face-to-face meetings like project kick-offs and team offsites." © Tapwage Inc 2022 15

Employers Are Also Trying To Broaden Talent Pools in Both Professional and Frontline Jobs In our 2022 Tech Hiring Report, we described how unprecedented tightening in the labor markets saw employers trying to broaden their talent pools by reducing degree requirements and lowering expected certifications. As the markets continue to be candidate-friendly for both professional and frontline roles, we are seeing further attempts by employers to broaden their talent pipelines as much as possible. Frontline and professional roles are seeing a substantial reduction in degree requirements Degree requirements have reduced across the board from 2021 to 2022. We represent these changes as a percentage point change between the representation of jobs with each degree requirement in 2021 and 2022. For No Degree Required in the chart on the right, this is 61%-52% which is +9%. We are consistently seeing this across different types of frontline roles: ● All role types saw explicit degree requirements. ● Conversely, there was a significant decrease in roles requiring high school equivalent or associate degrees. In production & facilities roles, there was also a decrease in the proportion of jobs requiring any degrees. © Tapwage Inc 2022 16

Professional jobs saw a similar decline in degree requirements from 2021 to 2022. ● Like frontline roles, we see a larger proportion of jobs not specifying educational requirements. ● In go-to-market roles, this has likely come at the expense of high school equivalents and associate degrees. ● In all cases, we’ve seen a decrease in the frequency of jobs requiring master’s degrees, MBAs, and PhDs. ● We also saw significant reductions in certification requirements. These are material changes given the span of one year. © Tapwage Inc 2022 17

Bonuses are rising across frontline and professional roles Since 2019, we’ve seen a 4x increase in the number of job posts that refer to bonuses. The type and prevalence varies depending on job category: ● Sign-on bonuses have seen significant growth in frontline roles. ● Other bonuses (e.g. retention, merit-based) are more prevalent in job postings of professional roles. There are also job-specific differences in rates and growth. Comparing rates in 2019 and 2022: ● Health and production roles show a significant increase in references to all bonuses in job posts. ● Warehouse roles show only an increase in sign-on bonuses. ● Go-to-market roles show a moderate increase in references to all bonuses, while tech roles are primarily seeing growth in non-signing bonuses. © Tapwage Inc 2022 18

Second-chance hiring is on the rise Fair chance hiring ordinances in California have been around since 2018; however, there has been a significant increase in the proportion of US jobs that include language encouraging applications from candidates with conviction/arrest records (also known as 'felon-friendly' jobs). The pandemic has been a catalyst for second-chance hiring, with these jobs growing dramatically since 2019 both in California and outside it (although California has doubled the proportion of roles specifically calling out second-chance hiring practices). ● In frontline roles, second-chance hiring has seen specific proportional growth in the retail and healthcare sectors. ● In professional roles, second-chance hiring has grown by 50% both in California and outside of California, although the Golden State continues to see twice the proportion of jobs that explicitly call out second-chance hiring practices. ● One of the most significant drivers of expansion is remote roles. These are US-based roles, not based in California, which are remote. 85% of second-chance hiring roles were for jobs not based in California. Growth in second-chance hiring may be due to adoption or expansion: ● Adoption is where companies that did not include references to second-chance hiring in their job posts start adopting references. ● Expansion is where companies that did include references to second-chance hiring have expanded the number of roles they refer to second-chance hiring in. © Tapwage Inc 2022 19

Overall, we see that growth in second-chance hiring has largely come at the job – not company – level. This indicates that the major growth has come from expansion. However, there are regional differences: ● In roles based in California, we see adoption-mediated growth: companies that did not historically reference second-chance hiring appear to have adopted the policy by referencing it in job posts. We see this difference regardless of whether the roles are frontline or professional. ● Across the US outside of California, we see expansion-mediated growth: companies that historically referred to second-chance hiring in their non-California but US-based roles are growing the proportion of both their frontline and professional roles that reference second-chance hiring in their job postings. Approaches to address labor market shortages When we look at these trends overall, we see that companies have adopted a variety of strategies for increasing labor pools. On the margin, there have been more substantial changes in frontline jobs, with sign-on bonuses, second-chance hiring, and a significant reduction in degree requirements. We also observe job type differences in some of these incentives. In contexts where there is significant labor market tightness such as tech, warehouse, and health roles, there are multiple approaches being used to make jobs more attractive to a broader candidate pool. © Tapwage Inc 2022 20

The Emergence of Vaccine Requirements In January, the United States Supreme Court rejected the Biden Administration’s mandate that would require workers at companies with 100 or more employees to get vaccinated or submit a negative COVID-19 test weekly to enter the workplace. In its aftermath, companies like Starbucks decided to drop their vaccination mandates. We’ve seen similar mandates across private corporations but with varying degrees of frequency and applied in different ways. Vaccine requirements in job posts have gone up 4.5x from 2021 Vaccine requirements have massively increased since COVID-19 vaccines were first introduced in 2021. In 2022, we see explicit vaccine mandates in nearly 10% of all jobs. North American jobs are 5x more likely than European jobs to have explicit vaccine requirements Jobs based in North America and Australia & Oceania have the highest rates of vaccine requirement language in job posts (12% and 16%, respectively), while European jobs have among the lowest (<2% of job posts). In North America, vaccine mandates are higher among professional jobs. In Australia & Oceania, vaccine mandates are higher among frontline jobs. While it’s difficult to say for certain why this is, it’s possible that labor market tightness in the US is prompting companies struggling to hire frontline talent to reduce their job requirements. Regional differences in COVID-19 measures may also be the cause. © Tapwage Inc 2022 21

In North American frontline roles, healthcare roles have among the highest vaccine requirements, at 16%, with production and facilities roles close behind at 14%. This is still surprisingly low given that the US Supreme Court mandate did allow the administration to mandate vaccination for healthcare workers. Jobs in ‘blue’ states are 4x more likely to have vaccine requirements than jobs in ‘red’ states Blue states saw vaccine requirements go from 5% of all jobs in 2021 to nearly 20% of all jobs in 2022. Leaders included Washington, DC (21%), Massachusetts (21%), Rhode Island (18%), New Jersey (17%), and New York (16%). Conversely, Wyoming has the lowest rate (4%), but this is at the top end of the scale when compared to 2021. To put some numbers behind the relationship we saw between blue states and vaccination requirements in job posts, we ran a correlation between FiveThirtyEight’s partisan lean against the frequency of vaccination mandates in job posts. Correlations can range between 0 and 1, corresponding to no relationship and a strong relationship, respectively. This analysis showed a correlation coefficient of 0.63, which means that 63% of the variation in the rate of vaccine requirements in job postings in a state can be accounted for with the partisan lean of the state. © Tapwage Inc 2022 22

Companies articulate various reasons for implementing vaccine requirements There are four main reasons companies use for including vaccine requirements in job posts: Company Policy “We require that all staff be vaccinated against COVID-19 as a condition of employment.” “We require our colleagues to be fully vaccinated against COVID-19.” “The health and safety of our employees is our top priority. Vaccination has been proven to play a critical role in combating COVID-19. As a result, we have made the decision to require employees to be fully vaccinated against COVID-19.” Government “Under the county government vaccination policy, all employees are Mandates required to be vaccinated against COVID-19 as a condition of employment.” “All clinical care workers must be vaccinated against COVID-19 to comply with federal vaccination requirements for healthcare facilities.” Client Preferences “As a federal government contractor, we require all staff to be fully vaccinated against COVID-19 or have an approved medical or religious accommodation.” “All employees are required to comply with client COVID-19 vaccination requirements.” For the General Good “We have a shared responsibility to protect our teams, our patients, and our community by requiring that all employees be fully vaccinated against COVID-19.” “With employee health and safety as our top priority, we will continue to require COVID-19 vaccination status for all employees including new hires.” © Tapwage Inc 2022 23

Vaccine requirements have a range of specificity We saw a wide range of specifications for vaccine requirements in job postings but were able to discern three key types of vaccine requirements: Including other “In addition to being fully vaccinated against COVID-19, employees must vaccinations show proof of immunity to Measles, Mumps, Rubella, Varicella, Tetanus, Diphtheria, and Pertussis.” “To help protect our employees and the communities we serve, full COVID-19 and Influenza vaccination is an essential requirement of this position.” Including booster “New employees are required to be fully vaccinated prior to their start requirements date, including all booster shots for those who are eligible.” “Candidates located in states that mandate COVID-19 booster doses must also comply with those state requirements.“ Vaccination status Some employers require disclosure of vaccination status but do not disclosures mandate vaccination as a requirement of employment. This is primarily a condition we've seen occur in US-based roles. Professional roles have a higher rate of requiring vaccination disclosure than frontline roles in the US In the US, vaccination status disclosures were significantly lower than vaccination requirements, although both grew significantly in 2022. Moreover, professional roles have higher rates of vaccination status disclosure than frontline roles. In 2022, 2% of professional roles contain vaccination status disclosure requirements, a 6x increase compared to 2021. Vaccination requirements went through a 17x increase in frontline roles, from being present in 0.1% of job posts in 2021 to 1.7% in 2022. © Tapwage Inc 2022 24

Hiring Successfully in a Distributed World Tips for Evolving Your Hiring Practices and Improving Your Outcomes Remote jobs have a clear advantage over non-remote jobs when it comes to attracting both larger and more diverse candidate pools. But not all roles can simply go remote. And for those that can, the competition for talent remains fierce as remote opportunities become even more prevalent. So how can you adapt to ensure you’re filling your pipeline with as many qualified candidates as possible, as efficiently as possible – no matter what types of roles you’re hiring for? This report is packed with real-world examples that you can use to guide your own talent strategy and the way you advertise your jobs. But with so much changing in such a short time, it’s no surprise that very few companies have mastered hiring in a newly distributed world. That’s why we’ve translated our data and analysis into recommendations you can act on to grow your applicant pools, strengthen your candidate pipeline, and ultimately make your entire recruiting process more fair and efficient. The Talent Opportunities in This Data When in doubt, go remote The hiring advantage is substantial, especially as we continue to be in one of the tightest labor markets on record. If your organization has the ability to offer remote work, even only for certain roles, you should choose (and advertise) this option. The remote arbitrage might be strongest right now in non-tech roles Tech jobs have always had a higher potential of being remote-friendly. The arbitrage between remote and non-remote with candidates is specifically massive in non-tech roles such as G&A (finance, legal, HR, recruiting). These are areas where you can disproportionately save time and money hiring in this market by allowing these roles to be remote. In a remote world, the inbound pipeline is increasingly valuable As labor markets have gotten very tight, companies are looking to their inbound talent pipelines to help ease the pressure off sourcing, executive searches, and referrals. If you are hiring for remote jobs today, chances are you are seeing a more robust inbound candidate pool. Incorporating that into your hiring strategy can yield substantial time and cost savings. © Tapwage Inc 2022 25

Remote work can be a valuable mechanism to bolster DEI efforts Remote work has the benefit of leveling the playing field, especially for caregivers. This is seen in the data as remote jobs attract 2.2x more women. Remote jobs can be a catalyst for improving diversity hiring outcomes in your organization in 2023 and beyond. Tips for Writing Job Posts That Convert 1. Be clear about a job’s location and onsite expectations. Flexibility is good, but clarity is better. Be careful – and accurate – when referring to roles as “remote” Remote roles increasingly have the expectation of being truly work-from-anywhere (at least in the country). If a job requires frequent in-office presence, label it “hybrid.” Be upfront about location restrictions (bonus points for describing reasons why) ✅ “We support hybrid work, and you will be expected to work 40% of your time each month in our Portland office.” ✅ “This is a remote role, but you will need to be able to travel to our Metropolis office 1-2 weeks per quarter for planning meetings.” ✅ “This is a Kansas-based position with the flexibility to work from home (in Kansas) or in person at our Emerald City office. This position requires bi-monthly travel to Winkie Country, Kansas to perform other essential functions of the job.” ✅ “This is a remote position, but it requires occasional travel for team meetings in Castle Rock, Maine.” ❌ “This role is work-from-home, but you’ll be expected to live within a 40-mile radius of our Cincinnati office.” ❌ “This role is remote or onsite depending on the preference of the hiring manager.” © Tapwage Inc 2022 26

Do promote options for flexibility when available. But don’t mislead candidates or create unnecessary uncertainty. ✅ “Please note that there are work from home options available, but this role is strictly not remote.” ✅ “We are a remote-first workplace. You’ll work with teammates across the globe, mostly via tools like Zoom and Slack, but occasionally travel (5%) for face-to-face meetings like project kick-offs and team offsites. If you prefer office life, we have offices in Springfield (OR), Sunnyville (CA), and Emerald City (OZ).” ❌ “This position will be a remote or in-office position based on the candidate’s location.” ❌ “You will begin your employment with us working from home, if you meet the criteria of the work-from-home program. As the world recovers from the pandemic, the criteria of work from home will change.” 2. Tell the same story throughout the job post. Consistency is key Mismatched job titles, locations, responsibilities, and benefits & perks confuse job seekers, leading to poorer job post performance and candidate satisfaction. Update your job post templates to avoid using outdated language Too many organizations describe remote-first jobs yet accidentally include their old benefits language or vice versa, creating confusion for candidates. If your company hires a mix of onsite, hybrid, and/or remote roles, create separate job templates to ensure accuracy and consistency across each type of role. 3. Treat job posts like the marketing documents they are Advertise your benefits – that are consistent with the job If a job is remote, don’t reference perks specific to the office (how nice it is, the catered dinners, commuter benefits). Define benefits & perks templates for different types of roles – remote, hybrid, onsite – rather than describing all of the benefits for all roles (or no benefits at all). © Tapwage Inc 2022 27

Strike a balance between too much detail and not enough. Every word counts! Too little description can be confusing. Many companies describe “flexible work” as a benefit, but it's not always clear whether they mean flexible in terms of hours, location, or time off – or whether they need the candidate to accommodate the employer’s needs (i.e., be on call). Too much detail can also take up valuable space that should be spent describing the specific job responsibilities. We’ve seen job posts where policies around perks are about 50% of the total word count. These details belong in your employee (or a candidate) handbook – not in the job post! © Tapwage Inc 2022 28

Data and Methodology This report presents analyses of ~30MM English-language job posts and ~30MM outcomes to detect hiring trends in job content from 2019 to today. The job post data was deeply annotated. We extracted job attributes (e.g., role types, locations, benefits) and company attributes (e.g., size/maturity of the company), and these annotations gave us significant depth in interpreting trends. This provided two advantages: ● More depth than the occupational and industry classifications available in government data. ● Higher fidelity than using single feature attributes such as job titles to classify jobs. Job titles can be deceptive: for instance, a Sales Assistant can be a retail role or involved in administrative support in go-to-market functions. Our job outcome dataset was also deeply annotated with job and company attributes (as above). It also contained annotations of applicant sources, resolution of applicant stages, and inferences around gender representation in applicant pools. Data Cleaning We restricted our sample of jobs in three key ways: ● By focusing on employer-verified job postings. Data from job boards can suffer from duplication issues (i.e., a company can post the same job to multiple job boards). Instead, we used data from applicant tracking systems (ATSs) (e.g., Greenhouse, Lever, Workday, iCIMS, Taleo) to collect company-listed open jobs directly. These reflect job requisitions created by recruiting teams and, therefore, are credible sources about a company’s hiring intent. ● By de-duplicating jobs in our database, comparing incidence among subsidiary and parent companies. ● By excluding jobs that did not show significant reflections of markets. Generally speaking, jobs at universities, nonprofits, and government entities are less sensitive to job market realities. We excluded these from our analytic dataset. In total, we collected job posts from 122 different ATSs as well as company career sites, incorporating more than 10,000 employers in the US alone. This coverage provided a broad sample of jobs advertised online from 2019 to 2022. Our focus was largely on jobs that were advertised online and available to external job seekers. Some jobs were not posted online or may have been posted through internal job boards. These were not included in our analyses. © Tapwage Inc 2022 29

Data Labeling and Augmentation Job Attributes We annotated jobs in two major ways: ● Company attributes:In this analysis, we segmented companies based on various attributes. These were based on our own internal research and classification of companies and did not correspond to government agency mappings because this was a global dataset. These are further described in the glossary. ● Job attributes: We defined attributes of jobs using our proprietary job taxonomy. Our taxonomy does not correspond to government agency mappings (e.g., the Bureau of Labor Statistics Standard Occupational Classification) or other industry mappings. An example of an attribute we defined is whether a job is a remote position or not. We used a variety of contextual information including job titles, locations, and job post content in addition to linguistic attributes to determine whether a role was truly remote. This allowed us to annotate remote jobs with a high fidelity and exclude jobs such as those that require experience with “remote sensing” or “remote services” or that are temporarily remote. Applicant Attributes We annotated our job outcomes data in three additional ways: 1. Application sources: a. ATSs define application sources in a variety of different ways. Some enable user-inputted data, which is where we get ‘LinkedIn,’ ‘Linked-in,’ ‘linkedin,’ and other ways to denote LinkedIn. Meanwhile, others define whether a source like LinkedIn is being used as a sourcing/prospecting tool or as a job board. b. Our platform organizes over 300,000 application sources into core categories. In this report, we present a top-level grouping focused on whether applicants applied through inbound or outbound sources. These categories are further specified in the glossary. 2. Applicant gender representation: a. We analyze applicant pool attributes in the context of candidate gender inferences. These were based on our proprietary inference engine. b. Comparisons against Equal Employment Opportunity (EEO) self-reports suggest this is 94% accurate and does not suffer from non-response issues associated with EEO data. 3. Data hygiene: a. Because we analyzed applicant pool sizes, we excluded any recruiting data hygiene issues that would skew our ability to define the average applicant pool size/makeup © Tapwage Inc 2022 30

for a certain type of role. These included internal-only requisitions, requisitions with a single application, and requisitions with incomplete job content (e.g, don’t describe the skills/qualifications of the jobs or only include placeholder language). Data Analysis In this analysis, we assumed that a job posting represents hiring intent. At Datapeople, we know that this may not always be the case: a single job posting can represent multiple positions (e.g., evergreen jobs, pipeline reqs, high-volume roles) or vice versa. Our goal in this analysis was to map industry-wide trends. Therefore, we looked for significant and robust changes. The analysis we present is the result of multiple tests with subsamples of data. We did this to exclude the impact of particular companies so that we could validate that a trend was broadly applicable and not just the result of an individual company’s recruiting hygiene. Moreover, to understand changes in the trends we observed, we tested for compositional biases in the attributes of the job, company, and location in our data. Although these tests could yield multiple variables that could correlate with a trend, we identified and discussed the ones that were the most robust. Data not shown We focused our storytelling and data visualization on trends where we saw significant and robust change. There is a significant amount of data that we did not show or represent in order to focus the narrative on compelling stories. Reporting Change In this report, we represent changes between two time points in two different ways: Percentage changes ● This is our dominant approach. Percentage changes refer to the rate of change and take into account what the initial value was. ● For example, if 2% of jobs were remote in 2019 and 10% of jobs were remote in 2022, to determine the percentage change we would divide 8% (10% - 2%) by 2% (the original amount) and multiply it by 100. The percentage change would be 400% or a 5-fold increase. This is dramatic, exponential growth, and the percentage change represents that. © Tapwage Inc 2022 31

Percentage point changes ● A percentage point change for the same calculation would be +8% (10% - 2%). ● In this report, we use this when we are comparing multiple trends (i.e., change in remote jobs as a proportion of whether a company was historically remote or not). Can analysis of job posts reflect company behavior? A caveat of analyzing job posts is that it is possible that employers may have policies that are not described in their postings but which may be communicated to candidates in later stages of the process. In this report, we analyzed company behavior in two core ways: ● Remote hiring ● Second-chance hiring Given that both of these types of content materially impact the top of the candidate funnel, we believe that references in job posts is a reasonable proxy for trends in company behavior. © Tapwage Inc 2022 32

Glossary and Definitions Job types and categories We have two overarching categories of jobs: Frontline Roles These are jobs where the role itself requires onsite work. It may be because face-to-face interactions with customers are required (e.g., retail, hospitality, and health roles) or the role requires physical presence in a specific workplace (e.g., often in production, transport, and warehouse roles). These are also known as “desk-less” jobs. Within frontline work, we have additional role types including: ● Production + Facilities roles: These include Machine/Manufacturing Operators, Maintenance Technicians, Facilities Managers, etc. ● Warehouse + Transport roles: These include Package/Materials Handlers, Order Pullers, Warehouse Workers, Couriers, Truck Drivers, Shuttle Drivers, CDL Drivers, etc. ● Healthcare roles: These include Pharmacy Technicians, Phlebotomists, Nurses, Caregivers, etc. ● Retail + Hospitality roles: These include Cashiers, Store Managers, Sales Associates, Cooks, Dishwashers, Bartenders, Servers, Housekeepers, etc. Professional Roles These are often office-based or professional roles in companies. These include: ● Tech roles: These are roles in Software Engineering and Data functions. Common job titles include Software Engineers, Data Analysts/Scientists/Engineers, Engineering Managers, Product Managers, and Technical Project Managers. ● Go-to-Market roles: These are roles in Go-to-Market functions including Sales, Marketing, Customer Success. Common job titles include Account Executives, Sales/Business Development Representatives, Customer Success/Experience Specialists, and Marketing Managers. ● General & Administrative roles: Common job titles include Finance Managers, Accountants, HR Generalists, Recruiters, and Administrative Specialists. Job Locations We approach job locations through a talent pool perspective, specifically considering if the job’s location restricts the talent pool to one that is local. © Tapwage Inc 2022 33

Hybrid We define hybrid jobs as those described as having some remote work flexibility but also requiring regular, on-premises work. This can come in forms like the 3-2 model where employees are required to spend three days in the office and two days at home (or vice versa) or those which have “office occasional” policies where there are expectations for onsite presences for team/ company meetings. Remote We define remote jobs as those described, either through the title, location field, or job description, as being open to remote work. These include terms such as “remote work,” “telecommute,” and “work from home.” We exclude jobs that are explicit about being temporarily remote in order to focus on permanently remote positions. We also exclude jobs that use “hybrid” synonymously with “remote.” Applicant sources Inbound These are candidates that apply to a company. This includes job seekers who applied through the company’s career page, job boards (like LinkedIn, Monster, Naukri, or CareerBuilder), and social media referrals. Outbound These are candidates that are contacted by or on behalf of the employer. This includes candidates who are prospected by an (internal) recruiter or sourcer, an (external) agency, or a sourcing platform (e.g., Vettery, Entelo, Jopwell) or those referred by existing employees. Typically, the majority of outbound applications are sourced by internal recruiters. Company types Non-remote We define non-remote companies as those that had no remote job posts in a year. Mostly remote We define mostly remote companies as those with at least 50% of their jobs posts in a year described as remote (either in the job description, or in the title or location fields). © Tapwage Inc 2022 34

Partly remote We define partly remote companies as those with at least one job post and less than 50% of their job posts in a year described as remote (i.e., not non-remote and not mostly remote). Company sizes Fortune 500 We use Fortune 500 to denote some of the largest US-based companies based on revenue. The list includes publicly held companies, along with privately held companies for which revenues are publicly available. Examples include Walmart, Apple, JPMorgan Chase, Verizon, Bank of America, and Target. Public Companies that have been publicly listed but that are not large enough to be in the Fortune 500. Examples include Twitter, Zoom, and JetBlue Airlines. Startup These are privately held companies that have raised a series of (often venture) funding. They are typically at an early stage (and consequently of smaller size) but rapidly growing. Unicorn These are privately held companies that have reached a $1 billion valuation. Examples of unicorns include GitLab, DataRobot, Stripe, SpaceX, Instacart, and Databricks. Others This captures a range of different private companies (i.e., not publicly listed). This includes small and medium-sized businesses (SMBs), family-owned businesses, companies funded by private equity, and partnerships (e.g., consulting companies and law firms). The majority of jobs and companies in this category fall under SMBs. © Tapwage Inc 2022 35

Job Seniority Entry-Level These job posts represent traditional Entry-Level and fresh-graduate jobs requiring less than 1 year of experience. Junior These job posts represent recent graduate and individual contributor jobs typically requiring fewer than 4 years of experience. Mid-Level These job posts represent mid-career jobs typically requiring between 4 and 8 years of experience. These may or may not include managerial responsibilities. Senior These job posts represent Senior jobs, typically requiring more than 8 years of experience or including significant management and leadership responsibilities (e.g., jobs with leadership titles such as Director or Vice President). Undefined Seniority These are job posts with requirements spanning multiple Seniority classifications or requirements that are ambiguous. © Tapwage Inc 2022 36