It is likely that we will see a point, probably later this year, where it is more difficult than ever to find qualified candidates.
The employment report from December of 2017 stated that the unemployment rate had dropped to just 4.1%That’s the lowest it has been in 17 years. That’s great for those looking for jobs.
For those looking to hire, it’s not such good news. It means it will be harder, and probably more expensive, to find and retain quality employees. How are you going to compete in the current candidate-driven market?
It’s Only Going to Get Worse
Good employees are few and far between. The demand for skilled technical people is high in both operational and strategic areas. While most employees recognize the problem and are trying to make recruitment a top priority, they still aren’t solving the problem.
Companies need talented employees for the organization to remain top in their market. Employers need to attract the most talented employees and utilize them effectively. The companies that are able to do this will be able to achieve their goals.
In the current economic environment, people are the key differentiator for business success. Have you started to build a talent pipeline? What about updating your benefits package to attract better candidates? Have you recently evaluated your recruiting and onboarding processes?
Culture is Critical
According to a recent study by executive search firm Korn/Ferry, jobseekers cite that culture is king when searching for their next role. Years ago, job candidates cited salary, benefits, and/or long-term opportunities are reasons for choosing a certain job over another. These days, candidates are very focused on the culture of the company they are applying to work for.
Some companies have noticed this shift. One thing they have begun to do is provide paid time off for their employees to volunteer. Other companies donate portions of their sales to certain causes.
However, an organization needs to do more than just donate some money. They need to instill values that touch and resonate with the most talented job seekers. When a company empowers its employees to utilize their talents to help make a difference in the world, that is when they are truly making their mark. Look at organizations such as Warby Parker and Zappos for example. Their corporate social responsibility is core to their culture, which has translated into strong employer branding.
Once a company has gotten their culture right and is able to attract the right employees, it actually becomes easier to do exactly that. Having that culture brings more top employees to that company and helps to retain them as well.
Flexible Talent Pools
Just like the shift in prioritizing company culture, today’s generation of job seekers also looks for greater flexibility in location and hours. In fact, it is becoming less commonplace for an organization to hold employees to strict 9-5 days at the office.
Technology makes it possible for people to work from anywhere – including their own home. This enables workers to have a better work/life balance and more flexible hours. If your company allows this, you will have an advantage in recruitment over companies still sticking to a rigid schedule.
It is also possible to hire employees simply as they are needed. Contingent or project-by-project work is growing by the day. According to a recent study by McKinsey & Company, about 20-30% of the working population in the US and Europe are engaged in some type of independent work. In the coming years, it is expected that these numbers will grow rapidly. Contingent work is a great way for employers to have more workers when they need them and have fewer when the workload is lighter. For the workers, there is more flexibility and freedom.
Contingent work is cost saving. However, that is not the only benefit. By only hiring workers on an as needed basis, you may be able to get some extremely talented workers who may not be willing to sign on as full time.
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What’s your next step?
Getting the ideal candidate can be difficult. As improvements in the job markets continue, competition among potential employees increases. For many decades, RAI Resources has been in the business of recruiting professionals across a number of fields including manufacturing, professional services and engineering. If you need experts that can not only find real talent but also support for Human Resources recruitment and retention strategy, then look no further than RAI Resources. Contact us today for your complimentary, no-obligation consult.
RAI Resources services in the greater Philadelphia area in PA as well as central NJ. Call us now for your complimentary consultation.