According to a recent Forbes report the labor market is
shrinking. There is already competition for top talent, and it appears this
economic cycle will be here for a while:
“The headline report adds new jobs
and subtracts quits, layoffs, retirements and other separations. The gross rate
at which people are quitting is now three million people per month, twice what
it was in the recession. And companies are trying to hire, both to replace
quits and retirements and also to expand. Six million open positions show
up in the official reports, and businesses would certainly hire even more if
people were available. But this recent economic growth is not the whole story.
The tight job market will continue for a decade or more.”
The impact is crippling for many employers. Josh Bersin estimates the total cost of losing an employee
– which includes such factors as lost productivity, knowledge drain, and
company morale – at a stunning 1.5 to 2.0 times the employee’s annual salary.
In addition,
there is a longer hiring cycle. At
an average 27.6 business
days per position, the lag time between posting new jobs and getting
them filled is already well above pre-recession levels and approaching its
highest mark since the turn of the century.
This new trend in unemployment will necessitate some new
strategies including:
Reassess your total compensation package — but not all
compensation comes in the form of cash. Employee discount programs and other perks like flexible
work hours can be inexpensive, and retooled recognition programs are yet
effective ways to boost your overall benefits package.
Invest in people -- Job skills training, for
example, not only pays off in overall productivity – lessening the need for
additional FTEs – but individuals with career development opportunities report higher levels of
overall job satisfaction. Supervisory training is a similarly critical piece of
the puzzle, as more than half of U.S. workers have reported quitting a job to
escape a bad manager.
Leverage technology to expand productivity - computing power and technical innovation has
led to an explosion of targeted, low-cost productivity apps for virtually every
department within an organization.
Tap into global sources of labor - reach out to staffing organizations
that specialize in international outsourcing. You may discover opportunities to
test (even temporarily) the skills and quality of global talent for various
positions at a relatively low cost.
Tap the power of
your own employees – now is the time to implement an employee referral
program that awards your employees for introducing a family member, friend or
acquaintance to work for your company.
For
more information on Ultimate Choice Inc.’s products or services or other white
papers please contact us at Ultimatechoiceinfo@cox.net
