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 company with 3 facilities and 150 employees. I have managed in union and non-union environments. 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 2015 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 talent “sellers” market, not a “buyers” market. The job seekers with the skills you need (the sellers of their abilities) have multiple job opportunities available to them from multiple companies (the buyers of talent). Having spent 15 years as a corporate recruiter and then a third-party recruiter, I can tell you that your best employees are being contacting by recruiters offering them other 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 unemployment problem we are dealing with today is largely an effect of this fact. The unemployed are largely people with low level skills. Because of that we have unemployed at the same time most companies are struggling to find “qualified” help.
2. Well meaning parents and educators have pushed our youth into certain educational and 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. For comparison, my generation believed they would stay in the same company their whole career. Today that simply is not true. It is said they will change jobs every three to five years. It is up to use to make that statement wrong.
4. The younger generation does not get their full identity from their career. Other parts of life are equal or more important. This is a major difference between generations. They are not interested in working long hours to “get ahead”. They have a better work-life balance and have additional interests they enjoy spending some of their time on.
All this being said, a “well qualified” employee can decide to change jobs any time they wish. The employees with weaker skills are not as employable and tend to stay where they are. Take a look at employees that have left your company in the last few years. 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”. You want an organizational atmosphere that is so fulfilling that when your employee receives an offer from another company (and believe me some are getting offers now) they will choose to stay at your company and not leave. When you are recruiting for an open position you want the candidate of your choice to choose to take your offer over other the three or four other offers they have received because your reputation is so appealing.
When my generation, the “Baby Boomers”, started working in the ‘60s and ‘70s we 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.
What would make your company an “Employer of Choice”? Ask your staff. (If you don’t feel they will give you a straight answer, you already know you have a problem.) One of the best measurements I know is from “First Break All the Rules” by Buckingham and Koffman. They call it the “Manager’s Measuring Stick”, but it is a very good thermometer of employee sentiment. Ask these questions in an anonymous poll.
1. Do I know what is expected of me and what are the measures?
2. Do I have the resources I need to do my work efficiently?
3. Do I have the opportunity to every day do what I do best?
4. In the last seven days have I received recognition or praise for doing a good job?
5. Does my manager seem to care about me as a person?
6. Does my manager encourage my development?
7. Do my opinions count?
8. Does the mission/ purpose of the company make me feel my job is important?
9. Are my co-workers committed to doing quality work?
10. Do I have a best friend at work?
11. In the last three months, has my manager talked to me about my progress?
12. In the last year, have I had opportunities to learn and grow?
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” you need to know what motivates your employees to stay. 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 more cost-effective to focus on retaining employees rather than recruiting, hiring and training 10% to 20% of your workforce every year. The cost of recruiting, hiring, training and correcting mistakes made by new employees has been calculated by many people to be as much as 50% to 150% of the positions annual wage. Whatever it is 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”.
Christian Life Coach 