Changing Employment Strategy; Becoming an Employer of Choice

I have been involved in the hiring process for over 30 years. I have managed small departments ranging from a staff of 2 or 3 to having been the Plant Manager of a 3 facility, 150 employee company. I have worked for companies from as small as 4 employees to as large as 200+ employees. I have managed in union and non-union companies. In all that time and experience I have never witness an Employment Market that is like the one we are currently in.

We all have heard the phrase “perfect storm” used for situations where multiple phenomena come together to create an extreme situation. I have often wondered about the use of the word “perfect” in these scenarios. “Perfect” seems like it should be a good thing, but these situations are anything but good. None the less in 2013 the employment picture is in the “perfect storm”.

Businesses need to realize this or they may not survive the next decade. We are in a “buyers” market, not a “sellers” market. The job seekers with needed skills (the buyers) have multiple job opportunities facing them from multiple companies (the sellers). Having spent 15 years as a corporate and then a third-party recruiter I can tell you that your talented people are having recruiters contacting them with opportunities. Even the best employee can be lured away by a “great opportunity” if you are not careful.

What has created this “perfect storm”? This is not an all-inclusive list, but it will get the point across.
1. The rapid growth of technology has eliminated many “entry level” positions and replaced them with the need for people with technical skills. The high unemployment problem we are dealing with today is largely affected by this fact. 8% unemployment and most of the companies I know are struggling to find “qualified” help.
2. Well meaning parents and educators have pushed our youth into other career choices and have “black-balled” industries like manufacturing, farming, etc.
3. The younger generation does not have the same view of a career that the older generations had. They expect to change jobs every 3 to 5 years. For comparison, my generation believed they would stay in the same company their whole career. Today that simply is not true.
4. The younger generation does not get their full identity from their career. Other parts of life are equally important. This is a major difference between generations. Ask both age groups and see for yourself.
5. The younger generation is not interested in working long hours to “get ahead”. They have a better work-life balance and have other interests that are as important as their career.

All this being said, a “well qualified” employee can decide to change jobs any time the wish. The employee with weaker skills tends to stay where they are. Take a look at employees that have left your company in the last year. They were probably employees you wished you didn’t lose.

What does all this mean to a hiring manager? I believe it means you need to be an “Employer of Choice”. When your employee receives an offer from another company (believe me they are getting offers) they will choose to stay at your company or not. When you are recruiting for an open position the candidate of your choice will choose to take your offer or one of the 3 or 4 other offers they have received.

What would make your company an “Employer of Choice”? Ask your staff. (If they don’t feel they can give you a straight answer, you know you already have a problem.) When the “Baby Boomers” started working in the ‘60s they were expected to “just do your job” and were told “management will do the thinking around here”. Today’s employee wants to be engaged. They want to be recognized as something greater than a “cog in a wheel”. They need to matter.

Finish this statement yourself; “I like my job except…” It is the “excepts” that make people look for “greener pastures”. Ask employees you trust the same question. To be an “Employer of Choice” eventually you need to know what motivates all your employees. Employees need to believe that you will help them become “all they can be”. They need to freely choose to stay on your team.

From a purely bottom-line view-point, it is much more cost-effective to focus on retaining employees than recruiting, hiring and training 10% to 20% of your workforce every year. The cost of hiring, training and correcting mistakes made by new employees has been calculated by many people, but we all know it is expensive.

This problem is not going away in the near future. I believe we are in for a decade of readjustment. The companies that decide to build into their people will come out ahead. You need to be an “Employer of Choice”.