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| Businesses claim it's hard to hire 'good people'. The solution is pretty simple | Businesses claim it's hard to hire 'good people'. The solution is pretty simple |
| (5 months later) | |
| If you ask any of my clients what their biggest challenge is this year you’ll likely hear the same thing: finding good people. | If you ask any of my clients what their biggest challenge is this year you’ll likely hear the same thing: finding good people. |
| Should we work a four-day week? Results from a trial in New Zealand | |
| The economy has been growing. Unemployment rates are at an 18-year low, and more jobs exist than workers available, a situation not seen since the labor department began tracking this information back in 2000. The competition for good people is fierce and even though there’s evidence that more are participating in the workforce, larger employers with more generous benefits are snapping them up. | The economy has been growing. Unemployment rates are at an 18-year low, and more jobs exist than workers available, a situation not seen since the labor department began tracking this information back in 2000. The competition for good people is fierce and even though there’s evidence that more are participating in the workforce, larger employers with more generous benefits are snapping them up. |
| So how bad is the situation? | So how bad is the situation? |
| According to research done by social media giant LinkedIn, 50% of job candidates applying for entry-level positions aren’t even showing up for their interviews! Called “ghosting”, the practice “is prolonging hiring, forcing companies to overhaul their processes and tormenting recruiters, who find themselves under constant pressure”, LinkedIn editor at large Chip Cutter wrote in a company blog. | According to research done by social media giant LinkedIn, 50% of job candidates applying for entry-level positions aren’t even showing up for their interviews! Called “ghosting”, the practice “is prolonging hiring, forcing companies to overhaul their processes and tormenting recruiters, who find themselves under constant pressure”, LinkedIn editor at large Chip Cutter wrote in a company blog. |
| Rude? Unprofessional? Short-sighted? Some experts blame the behavior on workers’ inexperience in the job market. Others say that it’s just tit-for-tat. “I think they have learned it from the employers,” Peter Cappelli, a management professor and director of Wharton’s Center for Human Resource, told LinkedIn. “Employers were notorious for never getting back to people, and only letting them know what was going on if it turned out they wanted them to go to the next step.” | Rude? Unprofessional? Short-sighted? Some experts blame the behavior on workers’ inexperience in the job market. Others say that it’s just tit-for-tat. “I think they have learned it from the employers,” Peter Cappelli, a management professor and director of Wharton’s Center for Human Resource, told LinkedIn. “Employers were notorious for never getting back to people, and only letting them know what was going on if it turned out they wanted them to go to the next step.” |
| To those prospective employees who are doing this to a potential employer I say: good for you. We deserve it. Why? We’re not paying enough. | To those prospective employees who are doing this to a potential employer I say: good for you. We deserve it. Why? We’re not paying enough. |
| When you take into account rising fuel, food and rent in many large metropolitan areas, the increase in wages is barely keeping up with inflation | When you take into account rising fuel, food and rent in many large metropolitan areas, the increase in wages is barely keeping up with inflation |
| According to a recent study from payroll services firm ADP, companies with fewer than 50 employees have increased their wages about 3.3% so far this year, a rate not seen in a while. That sounds encouraging but let’s face it: it’s not great. In fact, when you take into account rising fuel, food and rent in many large metropolitan areas, the increase in wages is barely keeping up with inflation. | According to a recent study from payroll services firm ADP, companies with fewer than 50 employees have increased their wages about 3.3% so far this year, a rate not seen in a while. That sounds encouraging but let’s face it: it’s not great. In fact, when you take into account rising fuel, food and rent in many large metropolitan areas, the increase in wages is barely keeping up with inflation. |
| Sure, some employers are getting more creative. USA Today reports that a 35-person digital marketing company is offering extra fees to employees who refer candidates that get hired for open positions and an optician in Atlanta is teaching inexperienced hires how to assist with eye exams. Many of my clients are offering more paid time off, flexible hours, independence and work from home options, all benefits that are highly desired by today’s millennial generation which is quickly becoming the majority of employees in the workplace. But small companies are still losing the battle for good employees. Why? Because large companies are paying people more. They’re offering better healthcare. Better retirement plans. Better perks. | Sure, some employers are getting more creative. USA Today reports that a 35-person digital marketing company is offering extra fees to employees who refer candidates that get hired for open positions and an optician in Atlanta is teaching inexperienced hires how to assist with eye exams. Many of my clients are offering more paid time off, flexible hours, independence and work from home options, all benefits that are highly desired by today’s millennial generation which is quickly becoming the majority of employees in the workplace. But small companies are still losing the battle for good employees. Why? Because large companies are paying people more. They’re offering better healthcare. Better retirement plans. Better perks. |
| It’s not wage rises that are a problem for the economy – it’s the lack of them | Thomas Frank | |
| Some say that small businesses can’t afford to pay their employees more. I’m not so sure about that. I have clients that insist on paying low hourly wages to warehouse workers and below-market salaries to administrative and support professionals because that’s what they’ve been used to doing for the past decade. These clients are profitable and have the money to pay more. But they don’t. They don’t seem to realize that they could be even more profitable over the long term if they were to offer competitive compensation to attract a better class of workers. | Some say that small businesses can’t afford to pay their employees more. I’m not so sure about that. I have clients that insist on paying low hourly wages to warehouse workers and below-market salaries to administrative and support professionals because that’s what they’ve been used to doing for the past decade. These clients are profitable and have the money to pay more. But they don’t. They don’t seem to realize that they could be even more profitable over the long term if they were to offer competitive compensation to attract a better class of workers. |
| So when I hear that small business owners are struggling to find good people, I know why. The fact is that employers, particularly small employers like me, just aren’t paying enough. Maybe we should accept lower profits in the short term to invest in people that will help us build a more profitable business for the longer term. | So when I hear that small business owners are struggling to find good people, I know why. The fact is that employers, particularly small employers like me, just aren’t paying enough. Maybe we should accept lower profits in the short term to invest in people that will help us build a more profitable business for the longer term. |
| US small business | US small business |
| Job hunting | Job hunting |
| Work & careers | Work & careers |
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