If you’re a business owner, HR manager, or anyone who makes hiring decisions, you've probably noticed the labor market is a little tight. If you're asking how to increase employment in the current tight labor market, you need to consider more than one answer; you need to rethink the whole hiring process.
There are currently more available job positions than there are candidates looking for work. Many companies continue to be short-staffed even though the unemployment rate keeps dropping. Currently, the national unemployment rate is 3.8%, and in areas like Nashville, Tennessee, where one of our offices resides, the unemployment rate has dropped as low as 2.5% recently. And those who are seeking work have more options than they have ever had before.
According to the Bureau of Labor Statistics, 6.2 million people are unemployed. So why aren't we able to put them to work? It is evident that our companies need to make a few changes in their hiring process to combat this problem.
Keep reading for three tips to attract new talent to your business:
1. Shorten Requirements
One reason you're not getting applicants for your open position is that the candidates don’t have the exact requirements the company is looking for and skip over to another company hiring for the same position.
Recent college graduates are a great talent pool to dive in to. It is impossible for a new graduate to have five years experience in their field already, but it won't make them any less hardworking.
On the other hand, someone who did not finish college, but has worked five years already, might be the perfect fit for your company, college degree or not.
In this market, HR needs to rethink candidates' requirements. Start thinking outside the company’s box and look for those candidates that they wouldn’t have considered before. Many will have either the skills or real-world experience you need to train them into the position.
So, ask yourself, do you need that job requirement if you're able to mold them to fit your company? It could work out in your favor to hire someone new.
2. Offer Unique Benefits
With so many opportunities for the same position, it becomes even more important for companies to offer that little extra to put you at the top for job seekers. Like Google, who offers 18 weeks paid maternity leave and 6 weeks paid paternity leave. SAS, a software company, provides scholarships for their employees' children.
Out of the ordinary benefits that really attract recent college graduated include student loan repayment assistance and unlimited PTO. And while letting your employees take off as much as they want sounds scary, the companies who have implemented it see better productivity while their employees are working and most don't take more time off than they usually would. It really decreases the stress of work because if they're feeling burned out they're able to take a day or two when needed and return to work refreshed and ready to work at peek performance again.
If you're a small business that really can't afford those monetary benefits, even offering a more flexible work environment, allowing workers to choose their schedule (around rush hour traffic or to coincide with their daycare hours) the number of candidates who apply, accept your offer, and stay at your company will increase.
3. Increase Wages
It is difficult, as an employer, to see your payroll money continue to rise. But, when you consider that the economy is good and inflation is happening, the money we're paying our employees does not seem proportional. The federal minimum wage was last raised in 2009, when it rose from $6.55 to $7.25 per hour. And while it was possible to survive on a $20,000 salary ten years ago, in many areas that is not doable anymore.
This doesn't mean you have to increase wages all at once or well beyond your means, but making a change to pay a more desirable wage is a great way to attract and retain talent, saving you money in the long run.
A higher initial salary makes a job seem more attractive and will certainly increase the number of qualified applicants you see.
Priority Staffing Group is a small business and advocates for other small businesses' success. We offer consulting to anyone who is interested in learning more about hiring and retaining talent.
Contact any of our offices for more information.
Marion, IL - (618) 969-8800
Vandalia, IL - (618) 283-9533
Murfreesboro, TN - (615) 295-2127