In our twisting and turning economy, nearly a day can pass without seeing an apology for low staff plastered on a business’s front doors. This new reality has not shifted as April 2022 was the 11th consecutive month that over 4 million Americans terminated their employment. With more job openings than workers to fill them, HR Managers are left with the seemingly impossible task of sourcing candidates in the small pool of those willing to work. This phenomenon has taken the name of the “Great Recession,” and it has far from run its course. Let’s review the most crucial factors in combating staffing shortages that every employer must know.
What does it mean when candidates don’t check all of the boxes?
There is no argument that we want top-tier candidates hired into our vacant job positions. However, when making a hiring decision, where do we draw the line between required skills and background and what we must train? More often than not, we will reject the candidate that doesn’t have that five years of experience or bachelor’s degree in our desired field.
A situation that you will likely encounter this year is two candidates for a given position who both only check 8 out of 10 “boxes.” Now, if you don’t hire one of these individuals, you will be left with an open position for several more months. Although this may seem like a crisis, it may just be a learning tool to start reevaluating what really makes a 10/10 candidate.
When interviewing a candidate to fill a position, consider embedding these questions:
- What is their reasoning behind making a job change?
- Do they want to be here, or is their decision solely based on their financial situation?
- Are they coachable and driven or stuck in their ways as “qualified” candidates?
- Are they a cultural match?
You get what you pay for
Employees are more empowered than ever. According to the “Global Workforce Hopes and Fears Survey 2022,” some 35% of 52,000 participants are planning to ask their employers for a raise in the next year. This comes down to the newly formed employee mindset: “if this doesn’t work out, there are about 100 other jobs I can apply for”. How do we prevent our companies from losing valuable current and future employees? The answer is paying our employees to reflect our current economy and their personal expertise.
When looking for a potential candidate, it is common to have a range of compensation where a hiring team expects their ideal candidate to fall in. With that being reasonable, there are many instances where an employer will not move on to a perfect candidate if they are asking a few thousand more for their salary. Although this can be understandable for the company in the short term, in the long term, this may not be a smart move.
When candidates settle for salaries they are not moderately satisfied with, the retention rate dramatically increases. When it comes to replacing them, a mid-level employee turnover costs 150% and above their annual salary to replace.
Integrated Talent Strategies
These uncertain times in staffing are what we specialize in. Here at ITS, we work to understand our client’s short- and long-term staffing strategies instead of just reacting to a current need. Reach out to us, and we can assist you will all your staffing needs. Let us help you overcome your staffing shortages!
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Sources for this article:
The Great Resignation looks set to continue — 1 in 5 say they’ll change jobs in the next year
Employee Retention — What is the True Cost of Losing an Employee?