Hiring Advice from a Staffing Agency Multi-Unit Owner
As a nation, U.S. small businesses are growing increasingly distressed about workforce stability, with 55% reporting concern over filling empty roles and 54% concerned with retaining current employees, according to the MetLife and U.S. Chamber of Commerce Small Business Index.
Wages play a huge role. According to the U.S. Bureau of Labor Statistics, workers’ wages decreased 3.6% compared with this time last year, putting working-class citizens at further disadvantage as costs for gasoline, groceries, rent, and medical care continue to soar.
According to a survey from Alignable, 45% of small businesses are freezing their employment rosters because of inflation. Companies able to hire have to adjust now, as the pause in hiring will immediately increase the number of unhired individuals looking for work.
From my seat as a staffing agency owner, I’m seeing an increasing number of employees accepting job positions, but continuing to look for other employment opportunities with better pay.
According to the National Federation of Independent Business, 48% of small businesses reported raising compensation in June, with another 28% planning to follow suit in the next 3 months in the hope of attracting employees to “unfillable” positions and bringing new workers into the labor force.
The Consumer Price Index from June 2021 to June 2022 rose 9.1%, the fastest pace since 1981. Although many employers are adding benefits such as more PTO and hybrid work schedules, which are attractive, with inflation continuing to rise and the threat of recession looming, more money is the only solution to many workers’ problems right now.
Speed matters too. In addition to raising wages to attract workers, hiring procedures must be streamlined to create faster turnaround times between interviews and decisions. Companies competing with quicker offers may snag qualified employees right out from underneath hiring managers.
The longer your hiring process takes, the more likely it is you will lose an employee who has accepted a role at another company. If they get a better offer, they will jump. The unfortunate reality of today is that employees are looking for the best pay they can get, and with the fastest start. Many are going back to their current employer and using your offer as leverage for a raise.
Finally, I urge you to prioritize employee development. Reskilling and upskilling attract and retain top talent that will help grow your business. Ensuring your company has the latest collaborative technology and learning capabilities is one of the most important factors in recruiting. According to Citrix’s Talent Accelerator Study, 88% of employees say they look for this when searching for a new position.
Matt Becker is a multi-unit owner of PrideStaff locations in the Greater Tampa area. Previously, he spent 5 years as a private banker in southern Pinellas County for Regions Bank. Before that, he served in the administration of President George W. Bush at the SBA and finished his service as Deputy Chief of Staff and White House Liaison.
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