Low Unemployment Rates present an opportunity for Hiring Managers
It's 2019. The staffing industry has dawned on a new era. The unemployment rate as of September of 2019 still hovers around 3.7%. The demand for skill sets in IT are at an all time high! Good news for those who are on the market looking for your next job, be patient, be picky. This is the best market we have seen in over 50 years.
Now for the employers and hiring managers out there. It's time to use this market as an opportunity to hone in on talent strategy and workforce management. It's time to understand and respect the value of all employees including both permanent employees and the contingent workforce. If this isn't at the fore front of leaderships conversations, know that it is with your competitors. With unemployment rates where they are, this is an opportune time for companies and leaders to do some self reflection and re-define the values they bring to their workforce. Employers may not have the liberty to draw a candidate out of a hat like we used to. With an effective strategy and a touch of authenticity, HR leaders and Hiring Managers can begin to take pride in their message to qualified candidates.
Here are three steps towards improving your workforce plans and strategy:
Your Story. What is your story? Why should someone want to be a part of your company's journey? Even better, why should someone want to work on your team? People love hearing an inspiring story. Yes, we all have access to those job descriptions that have been stashed in an internal library the last five years and have a nice three sentence summary of "why us" as a company. Focus on what separates your team or company from others and get creative on building your own inspirational story.
Team Culture. I have been apart of losing teams and championship teams. The one common denominator for both is that your team is as strong as your weakest player. This doesn't apply to specific skill sets, it applies to the general attitude of each member and the commitment to a common goal. How are you building an environment that represents effective collaboration? Whether your team is primarily full time employees or mixed with contractors, you want to establish environment full of passionate employees who wake up every day with a purpose.
Employee Referrals. I will quote arguable one of the greatest movies of all time, Field of Dreams. "If you build it, they will come." Build a passionate team and then work with that team to bring in referrals. Employee referrals reduce time to hire by 55% according to HR Technologies. Retention of referred employees after two years stands at 45% compared to 20% of job boards. Employee referrals have the highest applicant to hire conversion rate – only 7% apply but this accounts for 40% of all hires. Work with your HR partners or staffing firms as needed and bring this discussion to your next meeting in order to establish a process that allows you to leverage referrals.
To conclude, the current market is a blessing in disguise. I would advise to use this time to evaluate your own hiring strategy and make any necessary changes to improve it through storytelling, team culture, and candidate referrals. If you are looking for a firm or HR partner to support you, use some of this criteria to establish a relationship and build trust. There is always a growing fear of market corrections, but the power of a strong hiring strategy will remain a core value to you and your company moving forward.
