The unemployment rate is at an all-time low of 3.5 percent. We are also nearing a full employment market, which means that labor resources are being used in the most efficient way. To most, a full market may seem like a good thing, and it is, as more people in the talent pool are finding and securing jobs. This makes things challenging, however, for companies looking to fill open positions.
In the full market, there are more open jobs than there are people to fill them. With fewer individuals, or talent in the recruiting pool, companies will struggle even more than usual in finding new employees to hire. The employees left in the pool may not have the correct skills, background or qualifications that an employer is looking for. This creates high competition among the few candidates that may be trying to prove that they can be successful in a company.
In cases like these, businesses may have to recruit individuals that are already employed. They also have to ensure that their current employees are satisfied and won’t abandon their company for other opportunities. So, what are the possible solutions? Companies should offer incentives, if they do not already, or consider making their incentives more appealing to employees. Incentives can be offered both in and outside of work.
The first thing employers usually do to attract or retain talent is to offer competitive pay. Though compensation is a major factor, it is not the only thing employees are avidly looking for these days. Benefits are another component to be considered. Employees want to work for a company that has a rich benefits program. This can be expensive for companies, but it is an investment that can attract top talent and prevent or decrease turnover in the long run.
Perhaps one of the most popular factors in attracting employees, or the one thing employees want most, are flexible schedules. Companies can come up with several ways to offer flexible schedules that won’t negatively impact productivity. While still working during business hours, employees may be allowed to create a schedule that allows them to come in earlier or later in the morning depending on needs or life outside of the office.
Many companies also offer work from home days to all employees. Not only does this raise employee morale, but may also decrease the number of vacation days an employee takes. Working from home allows employees to complete their work tasks without the hassle or stress of traveling to the office every day. Work from home days may be assigned by the employer, or change weekly by the employee.
Also Read: NJ Commuter Benefit Law
Summer Fridays are another perk that many companies offer. This perk usually runs from May through August, allowing employees to work a half-day each week on Friday. Employees typically jump at any chance to start their weekend early, even if that means working longer hours Monday through Thursday so work output is not lost for the employer.
Most companies offer paid holidays; however, many only offer the minimum. If a company wants to attract employees, they should advertise a good number of paid holidays. The following are the most commonly offered paid holidays: New Year’s Day, Memorial Day, Fourth of July, Labor Day, Thanksgiving Day, the Friday after Thanksgiving and Christmas Day. Some additional holidays a company should consider also offering are the following: President’s Day, Good Friday, Veterans Day, Christmas Eve, and the days after Christmas and New Year’s Eve. Most of these days, such as Christmas Eve, are days that employees typically request to be off anyway. Or, if you do not want to offer all or any of these as paid holidays, why not make them work from home days or half days? Holidays may be a solution for companies that cannot offer higher salaries, but that still needs to attract top talent.
Once you know what your company wants to offer, the next step is not any easier. This step is recruiting. Recruiting can be done internally or externally. When done internally, the job is usually done by someone in the Human Resources Department. This can be time-consuming and prevent the employee from being productive in other areas of the job, wasting not only time but money. Employing an HR Manager, especially in a small company, can be costly. On average, an HR Manager makes anywhere from $91,000 to $120,000 a year and hiring for a new position does not generate income. Small companies can greatly benefit from working with outsourced HR to save money while still having an HR support system. Outsourced HR allows the company to stay focused on overall business goals.
A company can also consider hiring an employee specifically for recruiting purposes, but chances are there will not always be an open position in the company. This leaves the recruiter with too much downtime for it to be a full-time position and is therefore not a profitable investment for employers. The better option is to hire an external recruiter. External recruiters know how to find several viable candidates to suit a company’s needs when the need exists.
Recruiting in itself is expensive. The average cost of recruiting an employee is about $4,000. This number only increases the longer it takes to fill a position. The cost also depends on what job posting site a company is utilizing. Most sites charge a set amount every 30 days, while others charge per click. Some job sites even charge both a monthly and charge per click fees. The average monthly cost on a job board is around $300, but the average amount of time it takes to find and hire someone ranges between 42 and 52 days. Recruiters charge for the expenses required to get the job done, plus a fee for performing the recruiting; however, this is still not as expensive as hiring an internal HR manager or recruiter.
Whether you handle recruiting internally, use traditional fee-based recruiters, or hire a company such as ours to handle either portion of or the recruitment process or the recruitment process in its entirety is up to you. Your decision will most likely be based on the availability of qualified staff and the bandwidth of those working within your organization, your budget, and access to your potential client pool. Happy Hunting!