The September monthly jobs report from the Bureau of Labor Statistics (BLS) was a “record breaker.” Unemployment dropped to its lowest rate in 48 years – 3.7%! This number is the lowest it’s been since 1969. What does this mean for the labor market and for employers nationwide? The competition for talent is heating up, making it much more difficult for employers to find the talent they need. The number of jobs available far outnumber the number of job seekers. In a recent article for Staffing Success Magazine, ASA President & CEO Richard Walhlquist, speaks about the latest Conference Board’s Annual “C-Suite Challenge” (CHRO) survey. In 2017, the biggest concern was global recession, and in 2018, it is “the failure to attract and retain top talent.”
To compete in this tight labor market, companies are looking closely at wages and benefits. In October, “e-tailing” giant Amazon announced that they would increase their minimum wage to $15. This wage increase includes full-time, part-time, seasonal and temporary employees, including temps hired by agencies. This increase will raise the salary of a fulfillment center employee to approximately $30,000, which brings them 20% above the federal poverty level for a family of four. Amazon isn’t the only company increasing wages. Costco raised their starting wage by $1 per hour in June. In addition, Walmart boosted their hourly pay by $2 in the beginning of the year.
While salaries are important, company culture is becoming an increasingly determining factor when it comes to employee retention rates. A company with a great reputation creates a strong demand for capable employees. In addition, training programs, career advancement and benefits are strong factors that weigh in on the demand to work at your company. Author & Entrepreneurship Coach, Kevin Daum suggests, “The current labor market is a reminder that employees are really customers. Just because they’re internal doesn’t necessarily make them any less worthy of your best effort. Plus, if your internal customers aren’t happy, there’s a good chance your external customers won’t be happy either. Fortunately, Millennials are not solely motivated by dollars, and will look to other elements to determine where they want to work.”
With the tightening labor markets and the pressure of global competition, businesses are rethinking their workforce strategies. According to Rebecca L. Ray, co-author of C- Suite Challenge survey report, “nearly 80% of CHRO respondents foresee greater use of contingent non-traditional employees.”
One of the strengths of staffing and recruiting firms is their ability to source, screen and deploy both flexible and permanent talent quickly. Utilizing a staffing firm in a tight labor market helps ease the stress of the search. Companies need a resource beyond the myriad number of job boards out there that advertise “post your job and bingo – magical resumes will appear!” A well-established staffing and recruiting firm that understands the labor market in their community can find the “hidden talent” in the marketplace and source the top performers. Staffing firms take care of finding the best of the best. Regardless of the size of your company, a quality staffing firm will have the recruits that fit the employer’s workforce contingency needs while shortening the staffing process.
Frazee Recruiting Consultants, Inc. is here to assist Louisiana companies through this tight labor market. We invest the time and money into finding the most qualified, engaging candidates to join your team. We foster relationships with the best of the best to enhance your work environment, your company productivity and your company culture. When working alongside Frazee Recruiting Consultants, know that finding the best talent for your company is our primary goal.