Unemployment Rates Have Dropped Below Pre-Pandemic Levels in Many States, Adding to the Recruiting Woes for Many Companies
In a sign that (hopefully) the worst of the Covid pandemic is behind us, unemployment rates have dropped to pre-pandemic lows in many areas, making it very difficult for employers to find workers and avoid high turnover rates.
Let’s take a look at 10 issues you should be on top of to improve your recruiting and retention efforts.
1. The Combination of Low Unemployment and the Great Resignation is Making it Harder to find Workers.
The Great Resignation. We’ve all heard about it. But what does it mean?
Certain sectors (including nurses, teachers, and truck drivers) are facing labor shortages.
But in the main, the Great Resignation appears to be the story of Baby Boomers electing to leave fulltime employment in favor of either permanent retirement or moving to part-time work that seems more fulfilling, perhaps related to a hobby or good social works.
What can you do about it
- Generate awareness that you are hiring and that you welcome older workers.
- Find out what individual applicant’s unique work preferences are and try to accommodate them.
- With rising prices, older workers may be tempted to return to work, either as part or full-time workers or as a consultant.
- This may represent a permanent change, as demographic shifts could reduce the size of the workforce over the long term. In light of this, you might want to restructure your business’ labor practices in the future.
2. Today’s Job Candidates Know They are in High Demand and Their Rising Value in the Marketplace
If you are looking for a job, you are in demand. It’s a sellers’ market.
Some professions, such as nurses, have come to understand they were underpaid and are now negotiating for higher pay. Union organizing is also on the rise. Workers are jumping ship, seeking higher salaries and better fringe benefits.
What you can do about it
- Learn what motivates existing workers and potential job applicants – it can vary widely.
- Tailor your job offers to satisfy individual needs by offering a mix of flexible benefits, including working from home (WFH) or hybrid schedules, provide on-site childcare, or allow pets to come to the office.
- Conduct more frequent job reviews, including faster advancement and pay increases.
- Be prepared to address the issues that could lead to possible union organizing.
3. Today’s Post-Pandemic Workers Have Greater Expectations for Personal Fulfillment and Less Appetite to Sacrifice Everything for a Career
For many people, the experience of the pandemic helped usher in a new appreciation of the importance of living a fulfilling life. At the same time, many are now questioning the relative importance of work, particularly jobs that do not seem to offer a positive contribution to society or require years of advancing up a career ladder to achieve success.
What you can do about it
- Help workers find a fulfilling role within the organization based on their personal aspirations. Promote work/life balance.
- Some repetitive job tasks aren’t very fulfilling. Target these for automation if possible or rebalance the work among different positions.
- Demonstrate a positive work culture within your organization.
- Consider adding a charitable mission, such as donating a portion of employee time or proceeds to a non-profit group or community service.
- Offer sabbaticals or working vacations to allow employees to travel and work remotely for a period of time during the year.
4. Employees Currently Working from Home May Not Want to Come Back to the Office
Across the world, many workers are hesitant or even resistant to returning to the office.
If compelled to commute to work each day, some employees who are adamant about not returning to the office may up sticks and land a job with a competitor who has more liberal work from home (WFH) policies.
What you can do about it
- Get to know each employee and help them overcome specific objections to coming back to work. Some may have moved further away during the pandemic, making commuting difficult. In some cases, a hybrid work strategy or continued WFH may be the solution on a case-by-case basis.
- Make the office a safe place to return to by ensuring employees know about Covid hygiene and safety measures, including increased ventilation and sanitation.
- Encourage employees to want to commute into the office by transforming your work environment into an attractive destination where people want to spend their time. Avoid concentrating work areas too close together.
- Provide options for the care of children, aging parents, or pets.
- Make arrangements for attractive meal options, as many local eateries may no longer be in business after the pandemic.
5. Many Introverts are Happy Working from Home, Thank You Very Much!
While extraverts can’t wait to get back to the office, many introverts have had the opposite reaction – working from home has been a boon to those who appreciate a quiet environment where they can concentrate on work without interruptions and the anxiety that comes from too many unwanted social interactions.
What you can do about it
- Understand and accept people for who they are. You won’t turn introverts into extroverts (or vice versa) by forcing them to change. Accommodate them instead.
- Provide introverts with private areas to work in the office.
- Noise control is a key factor, take measures to reduce distracting noise by adding sound-deadening features such as baffles, acoustic tiles, etc.
- Make participation in large social events at work optional, or modify them to reduce discomfort and anxiety among employees who do not enjoy crowded spaces or being put on the spot to present to large groups.
- At the same time, find ways to get information from introverts in meetings; avoid letting extroverts talk over those who are by nature less outgoing.
6. Recruiting Talented Tech Workers is a Challenge Worldwide
Tech workers are the lifeblood of Silicon Valley giants and startups alike. Workers with key skills in AI/ML, cyber security, high-level data science, and the like are able to write their own ticket, often choosing between multiple offers sweetened with high salaries, stock options, and other incentives.
What you can do about it
- If your company is not a high-flying tech company, you need to be realistic (e.g. offer higher salaries) while at the same time creative in attracting workers by offering something unique in terms of job fulfillment and compensation.
- If you manage a very large development team, disparities in pay packages could become an issue with your other staff. Consider creating a spin-off division with its own “startup culture,” compensation strategies, and hiring practices.
- Mentor young students at area schools to find and develop emerging talent. Don’t overlook highly skilled retirement-age workers who may have left a big company and are looking for part-time opportunities.
- Be flexible in hiring tech workers as consultants and/or those working from home (WFH).
7. Rising Inflation is Causing Workers to look at their Personal Spending Habits and Income Sources
After decades of low inflation, the rising cost of living has become a major issue among workers. This is particularly true for employees returning to a daily commute, as new cars are in short supply and used ones are fetching record prices. Gasoline prices are also making the cost of commuting more expensive, adding to the frustration of returning to work. Increases in Federal interest rates will make credit card payments and home mortgages more expensive as well, and apartment rental rates are at an all-time high.
What you can do about it
- Employers need to keep tabs on what employees are thinking. Some employees may not want to wait for an annual salary review, consider conducting reviews more often as well as speeding up the career advancement process for employees you really want to retain.
- Empower your managers to offer spot bonuses for outstanding performance.
- Review your compensation packages and make sure they are competitive. Are you able to offer a creative benefit that other employers can’t match?
- With the increased cost of housing, workers may want live in cheaper areas further away from work, yet the cost of gas and transportation is eating up their budgets. Consider paying for transit passes or setting up a commuter van service. Or consider making hybrid work schedules the norm to allow workers to work from home multiple days in the week to save on commuting costs.
- Rising inflation may lead to second thoughts among those who opted to retire early, so you might be able to recruit Baby Boomers to return to work, even if only on a part-time basis.
8. Your Best Workforce May be the One You Already Have. How can you Retain Your Existing Workers?
We all know the sales maxim that the best sales prospect is the customer you already have. And so it is with employees: the best workforce may be the one you already have – they already know your business culture, have mastered specific job skills, have relationships with customers and suppliers, etc. How can you retain these vital workers and avoid losing them to the competition?
What you can do about it
- Don’t wait until the exit interview to find out there is a systemic problem, like a bad manager, that is driving out good workers. Create a culture where employees are encouraged to bring forward issues to higher management without fear of reprisal.
- Keep valued employees involved in the company by making them mentors, offering challenging new assignments and promotions, paying for education courses, and other benefits to keep them just that much longer.
- If you hear an employee is wavering and might jump ship, don’t shun them. Be open to finding out why and what you can do to keep them. Consider making a confidential matching offer if salary and benefits is the issue, or better yet, create a creative counter-offer.
- Encourage different parts of the organization (from executives to entry-level workers) to mix freely and build community within the organization (including those working at home via virtual watercooler sessions).
- Look for signs of moonlighting. Some workers may take on a second job, it’s easier to do if you are working from home.
9. Strategies to Recruit New Workers in a Challenging Hiring Market
ABR: always be recruiting.
At every opportunity, you and your employees need to highlight the benefits of working for your organization.
What you can do about it
- Create a marketing campaign to increase awareness of job opportunities at your company. Follow up with prospects to educate them about the career possibilities and the attractive work culture your company offers.
- Incentivize workers with spiffs and spot bonuses for helping to recruit successful candidates.
- Expand your efforts to mentor young students within the local community, secondary schools, or colleges and universities.
- Sponsor activities, such as maker spaces, trade events, and luncheons, or other programs, which might be a way to gain visibility to get your hiring message across to your target prospects.
10. Welcome Diverse and Non-Traditional Applicants
If you have trouble hiring, perhaps you haven’t considered all the possibilities.
Double down your recruiting efforts to reach out to diverse and non-traditional job applicants.
What you can do about it
- Demonstrate a positive, welcoming work culture through actions, not just words.
- While women outnumber men in the US workforce, they are underrepresented in many industries, including STEM fields and manufacturing. Make sure your workplace is welcoming to women, and use mentoring outreach to help educate women on the benefits of working in your industry.
- Does your current workforce lack diversity? It may lead to a Catch-22 situation. Racial minorities or LGBTQI+ job candidates may avoid accepting job offers from your company if they do not see themselves represented among your current staff.
- Some companies are offering non-violent offenders who have been previously incarcerated a second chance at work and an opportunity to contribute to society.
- Recruit workers who got burned out on their first career (such as nurses or teachers).
- Don’t overlook job candidates that may have been out of the workforce for many years (to raise a family, for example) and are seeking to jump back into a career.
Why You Should Apply to Work at FORMASPACE from FORMASPACE on Vimeo.
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