Corporate Payroll Services

2021 Companies Struggle to Hire

If you’re finding it difficult to hire employees, you’re not alone.  Bloomberg reports that many small businesses are struggling to find people who currently want to work—in fact, 42% say they have jobs they cannot fill.  Turnover is also higher than average during this time.

One culprit is likely COVID-19.  For reasons related to the pandemic, a number of people are choosing not to work.  They don’t want to risk getting sick, have children at home, or may be able to get by for now on unemployment insurance.

Some small businesses with positions to fill have created incentives like signing bonuses and other perks, but these recruiting tactics are unlikely to be effective long term.  They don’t address the risks, challenges, and needs people have during these uncertain times.

Those who choose not to work are missing out on many benefits.  A job provides not only a paycheck, but also opportunities for employees to do meaningful work, contribute to their community, make connections, develop skills, receive training, advance their career, and fund their retirement.  If someone isn’t working, they’re missing out on these and other opportunities.  Employers may be able to leverage these benefits to appeal to those who have removed themselves from the workforce.


Struggle to Hire – Give Safety, Flexibility, and Pay

Before employers can use benefits like skill-building to lure applicants, they must first address safety, flexibility, and pay; in a hierarchy of employment needs, these are the foundation.

While vaccinations are proceeding at an encouraging rate and all adults are now eligible, COVID-19 remains a serious threat.  It will be some time before people getting their shots develop immunity to the virus, and they may worry about infecting friends and family who are unable or unwilling to get the vaccine.  Because of these fears, it may seem like there is nothing employers can do to persuade them to work.  Others, however, may be open to working if they feel confident enough that the job won’t put them or those they care about at risk.

Flexibility is another key component for many potential applicants, much more so now that in-person school and childcare have become scarce.  Employers that provide flexibility—either through the initial scheduling of shifts or the ability to rearrange working hours on the fly—will likely receive more applicants and have a lower rate of turnover.

Other potential employees may be willing to work if they feel the pay is worth the risk and sufficient to cover the costs of working (transportation, childcare, insurance premiums, etc.).

Of course, most businesses don’t relish the idea of paying employees higher-than-usual wages, but there’s good reason to believe increased pay is a good investment, especially for people in traditionally lower-paying jobs.  When people are preoccupied with bills, debts, and other forms of scarcity, they tend to be less productive and make more mistakes.  But, when scarcity isn’t taxing their mental bandwidth, they’re able to be more productive, make fewer mistakes, and increase business profitability.  Increases in pay can pay for themselves.


Struggle to Hire – Offer Career Development Opportunities

It may be the positions an employer needs to fill don’t come with an exciting career path or teach the kinds of skills employees are likely to put on future resumes.

Imagine, for a moment, a local deli that needs to hire a person to take orders at the register.  The job market might consider this job “low skill,” but the owner of this deli doesn’t think of the job that way or advertise it that way.

Now, the owner doesn’t use the ploy of giving the job a fancier title than what it entails; instead, they set the job up to provide skills training for more advanced positions in customer service or sales.  In the first few days, the new hire will learn the menu and the layout of the register, but then, in the lulls between rushes, they’ll learn techniques for talking to customers, de-escalating tense situations, upselling, and the training that people in customer service and sales would expect to receive.  Later, the new hire might even learn some of the ins and outs of starting and running a small business.

This owner knows high employee turnover is simply the nature of the business and employees will, sooner or later, take their training and skills to other jobs.  That’s the point.  The aim here is to cultivate a reputation in the community as an excellent place for customers to grab a meal and an excellent place for employees to start learning marketable skills they’ll use throughout their careers, increasing the size of both the applicant pool and the deli’s profits.


Attractive Job Postings and Hiring Processes

Poorly written job postings can prove a serious obstacle to getting applicants.  It’s important, as Katrina Kibben reminds us, that recruiters and hiring managers understand what they’re looking for in a new hire and write job postings which are simple and effective.

If an employer offers some or all of the benefits discussed above, they should showcase them in their postings with concrete examples and as part of an engaging story.  For instance, instead of the deli owner writing, “We teach valuable skills,” they can explain that down time will be filled with instruction on sales and de-escalation techniques.  And instead of saying, “We offer flexibility,” an employer can advertise that employees have a range of shifts to choose from on a weekly basis, or will be able to complete their work at any time of day, so long as weekly deadlines are met.

But no amount of training opportunities will mean a thing if a business’s hiring process is a chore for applicants to get through.  The more time it takes to complete an application, the more applicants will decide it isn’t worth it.  The longer a candidate has to wait for an offer, the more likely they’ll turn down that job offer—sometimes, as Adam Karpiak illustrates, even when they don’t have another job lined up.

This post is provided by the HR Pros at the HR Support Center and Corporate Payroll Services.  It is for informational purposes only and is not to be considered legal advice.  When you need essential information on human resources issues, from benefits, hiring, and management, to culture, technology, and regulations, HR Support Center is a resource on which you can rely.  To learn more, visit HR Support or contact us at 770-446-7289 x2102.

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Corporate Payroll Services
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