If you feel like it’s getting more and more challenging to find qualified employees to fill your positions, you’re right. New evidence from the Deutsche Bank indicates that the length of time a vacancy lays open has increased overall since 2010. Open positions are increasingly difficult to fill due to several trends within the current labor market. However, there are several actions you can take as a business leader to improve your ability to hire and retain a quality workforce.
Finding and keeping the top-talent your business needs is about to get tougher.
Open Positions Are Staying Vacant Longer
Currently, according to economist Torsten Sløk with the Deutsche Bank, positions are open on average 31 days before being filled. That’s significantly higher than the 24-day average in prerecession 2007, which was the longest span positions stayed vacant since 2001. Job vacancies were filled in about 15 days in 2009, and the length of time it has taken to fill open positions has increased steadily in the eight years since.
Many Business Struggle to Find and Keep Qualified Workers
What does this mean for business leaders? That finding the right worker has become increasingly challenging. The Federal Reserve’s recently released Beige Book notes tightening in labor markets nationwide.
In Pennsylvania, for example, “staffing contacts reported spending more time and money on recruiting labor and refilling positions after the initial hire quit, sometimes after just a few days.”
Additionally, the Federal Reserve’s contacts across the nation and in a variety of industries reported that hiring was limited because there were not enough qualified workers available.
Labor Trends Influencing This Challenge
Some of the reasons cited by the Beige Book included job hopping and a disconnect between companies and job candidates on compensation. Federal Reserve contacts noted “rising wage pressures” in both high- and low-skilled positions. Some also mentioned that the costs of benefits and variable pay were increasing.
Another possible reason employers struggle to find the right people to fill their positions is a growing gap between the skills needed in the workplace and the skills that are available among the workforce. In fact, according to SHRM, we are currently facing “the most acute talent shortage since the Great Recession.”
What It Means For You
It’s now more important than ever to retain your star employees, and attract candidates like them. Having competitive compensation and a culture that appeals to the job seeker can give you an edge in this job market. Consider implementing more in-depth, on-the-job training to address the skills gap, and ensure that you have efficient hiring processes in place to eliminate any wasted time, money and energy.
If you’d like to learn more about current labor trends and what they mean for your business, you can find a wealth of information in our on-demand webinar on current labor trends.
