Having Trouble Attracting Qualified Employees In Today’s Marketplace?

Here’s Why —- And What You Can Do About It

With the United States unemployment rate hovering around 3.5%, most business owners, corporate executives and hiring managers consistently list talent acquisition as one of their most pressing challenges. Acute labor shortages are prevalent in most every sector, from hourly line and construction workers to white collar professionals in accounting, technology and healthcare. While a future economic slowdown will lead to temporary easing in the overall labor market, longer term trends point to ongoing hiring challenges as a result of a decline in overall population growth, aging of the U.S. workforce and a gradual decline in total labor force participation.

In 2018, the population of the United States was 325 million people and while the U.S. population continues to grow, it is doing so at a much slower rate. From 1994 – 2004 the U.S. population grew at an average rate of 1.3% per year.   That growth rate declined to 1.0% from 2004 – 2014 and is projected to decline further to .8% through the year 2024.

The overall impact of slower population growth rate is amplified when taking into account the increasing age of today’s workforce. In 1994 the average age of all employees in the workforce was 37 years old. By 2004 it increased to 40 years old and is now projected to increase to 43 years of age by 2024. As the baby boom generation begins to retire, the population needed to replace these aging employees is in relative decline.

In addition to changes in population trendlines and average workforce age, the overall labor force participation (percentage of the population currently active in the workforce) is also in decline. From 1940 – 1997, U.S. labor force participation steadily increased to a peak of 67%. Since 2001, the participation rate has been in a steady decline registering 63% in 2014. By 2024 overall labor force participation in the United States is projected to fall to 61%.

Given these trends, what steps can business owners, executives and hiring managers take now to proactively and strategically address these ongoing challenges.

1) Show Me The Money

Well of course —– doesn’t it always comes down to compensation? While the answer is generally yes, it’s critically important to analyze your total compensation package and not just base salaries. What does your company’s healthcare/dental/vision plan look like and what percentage of the overall premium is being paid? How competitive is your 401k plan? What other benefits do you currently provide — Paid Maternity Leave, Disability, Life Insurance?

Spend time benchmarking your compensation plans against competitors in the market. There are also several tools online including www.salary.com that can provide you with market compensation data.

2) Dark Dungeons Are No Longer Trendy

Creating a work environment that fosters teamwork, communication and lifestyle trends is key to attracting superior talent in tomorrow’s workforce. While you may not find open floor plans, bright colors and modernized break rooms of importance, your future candidate pool of millennial employees most certainly does. Making the investment in functional, yet stylish office space will not only help you attract new employees — it will go a long way in helping to retain your existing ones.

3) The Boss Says We Still Have 3 More Years On Our Computer Lease!

While one would assume adoption of technology is a must in today’s competitive business climate, you would be surprised at the number of small to midsized businesses who have yet to fully embrace technology in the workplace. Outdated hardware, obsolete CRM and Accounting systems, dated and/or nonfunctioning websites and antiquated telecom platforms are still prevalent in many businesses today. Tomorrow’s workforce insists on access to relevant and cutting-edge technology. A talented employee may cut their teeth with your organization, but they won’t be there long without an environment that promotes technology adoption and the benefits and efficiencies it brings to the workplace.

4) But I Wanted To Be A Vice President!

While corporate America has largely moved away from hierarchical org charts and elevated job titles, the fact remains that many times job titles still matter. Our recruiting team routinely encounters qualified candidates who decline new opportunities (sometimes with generous pay increases) due solely to job title. While one may disagree with the logic, the reality is job titles can be an impediment to landing qualified candidates. Spend some time looking at your organizations job titles and job descriptions. Do they accurately represent the responsibilities of the role and are they in line with today’s worksite vernacular? Is there a compelling business reason why your Receptionist position can’t be changed to Front Desk Assistant, Help Desk to Technical Support, Office Manager to Firm Administrator or Accounting Manager to Controller?

5) When Can I Go Home?

Advances in technology have created significant opportunities to introduce remote worksite options into the workplace. Millennials in particular embrace the efficiencies technology can provide in their quest for improved work-life balance. Creating more flexible work hours can provide a company with significant competitive advantages in recruiting talent to the organization. If working remote is not an option due to your business or industry, consider staggered work schedules or flex days where employees can work remote during certain time frames or days of the month.

Given recent trends, the coming decade will continue to present significant challenges in terms of both recruiting and retaining talent. Begin adopting these strategic steps now in order to position your company as an employer of choice to the best and brightest candidates in the marketplace.

 

 

 

 

 

 

 

 

Charles Tews, President