All the Information Your Business Needs on Low Unemployment
Unemployment in the United States is at a 17-year low. While this is a good thing in many ways, it poses unquestionable hiring challenges. In a recent study of Inc. 500 companies, almost two-thirds of fast-growth entrepreneurs cited finding and retaining good talent as one of their greatest obstacles. Small and midsized companies tend to be affected even more, as they struggle to compete against their larger counterparts.
Due to fallout from low unemployment, some companies have begun to lower their hiring standards; for instance, softening up on college and credential requirements in order to fill positions. While this may be necessary, you can imagine how it can also backfire. Basically, it means an employer has compromised on the best possible hire – and it signals to top candidates on the market they’re overqualified.
- Retention is also more challenging. Employees are more likely to leave if they’re unhappy, since companies are currently fighting for the best talent.
- Your cost per employee may be higher. With more employers vying for fewer candidates, finding and keeping high performers may require you to increase your investment in salaries and benefits.
The bottom line is: Regardless of current employment statistics, you always need to aim to attract and retain the best talent. Moves such as boosting numbers of H-1B visas can prove beneficial. But successfully dealing with low unemployment requires that you get creative with your employment brand.
- Partner with local schools, colleges and universities. Look for students preparing to graduate with the knowledge base you need. Design internship, apprenticeship and shadowing programs. Put your subject matter experts on their faculty as adjuncts or guest lecturers. Build relationships and in doing so, deepen your long-term talent pool.
- Lure talent away from bigger companies. If you’re a small to midsized employer, use this to your advantage. While you may not have the extensive benefits package of a larger corporate enterprise, capitalize on your close-knit, familial culture, easy access to top company leaders and the opportunity to learn all aspects of the business. Or, maybe technology hasn’t affected your staffing as much as it has your large-scale competitor down the street. A survey by the National Small Business Association shows that only 9 percent of small businesses investing in automation plan to reduce employment as a result.
- Create a winning candidate experience. Be transparent and welcoming throughout your hiring process, from initial recruitment through onboarding. Keep candidates informed and in the loop. This will not only help you seal the deal with a current applicant, but in addition, word of your positive process will quickly spread via social media and word of mouth.
Partner with Frontline Source Group!
The right staffing agency can be one of your best solutions to address your hiring issues, especially in times of low unemployment and a candidate-driven job market. Find a staffing partner that knows your industry and can easily assimilate into your company culture. In the IT, accounting, finance, CSR, and engineering and gas arenas, and when filling clerical and administrative roles, consider Frontline Source Group. We have a nationwide client network and offer temporary, temp-to-hire and direct staffing options. Looking for a staffing agency in Phoenix, AZ? Contact us today to learn more. To find the branch closest to you, click here.