How Employers Can Attract and Retain New Employees in Today’s Landscape
Finding qualified workers has become a major hurdle for employers across various industries and company sizes. According to a recent survey by the National Federation of Independent Business, 91% of small businesses that posted jobs in April 2024 reported having few or no qualified applicants. The Conference Board also highlighted in April that labor market tightness remains a significant issue, with the national unemployment rate to be at 3.9%.
What started as a temporary challenge during the COVID-19 pandemic has evolved into a persistent labor shortage. Despite rising wages and the end of expanded unemployment benefits, the availability of workers remains a concern. Factors like retiring baby boomers, declining birth rates, and a shrinking workforce indicate that the situation may worsen before it improves.
While broader policy changes are essential, employers can’t afford to wait idly for solutions. Instead, shifting from frustration to proactive strategies in recruitment, training, and retention is key. Here are some effective approaches to tackle the labor shortage:
- Focus on Trainable Talent
Rather than focusing on finding fully qualified candidates, consider hiring individuals with basic skills and training them for specific roles. This strategy can mitigate the risks associated with hiring candidates who may not show up on Day 1 or engage in problematic behaviors.
Reach out to local nonprofits or schools that offer soft skills training programs. For instance, New York City’s CareerReady Work, Learn and Grow program equips young graduates with job readiness training and internship experience. Similar initiatives across the country can help you find motivated, trainable applicants.
- Build Relationships with Trade Schools
Forge partnerships with trade schools, community colleges, and industry associations. Simply expressing interest in hiring graduates is no longer sufficient; take active steps to engage with these institutions. Offer to provide job shadowing, on-site training, mock interviews, or sponsor networking events. These long-term relationships can yield valuable talent while others focus solely on immediate needs.
- Create a Teaching Culture
To implement these strategies successfully, fostering a teaching culture within your organization is essential. Start by discussing market trends and the importance of new approaches with your team. Identify employees willing and able to take on training responsibilities, this can be appealing for long-term staff. Consider offering title changes, bonuses, or training programs to equip trainers with additional skills. Appointing a dedicated leader to oversee this initiative can also help streamline accountability.
- Address Rapid Employee Turnover
According to a Franklin Templeton survey, over 90% report turnover exceeding 10% of their headcount in 2023. Rapid turnover rates are another pressing issue for employers
Non-monetary recognition, increased employee input in operations, and flexible work arrangements can also enhance retention. Don’t overlook the value of learning and development opportunities for long-tenured employees, whether on-site or through local colleges.
Some statistics about remote workers that will surprise you though; more than 4.7 million people work remotely at least half the time in the United States. About 44% of companies do not allow remote work and only 16% of companies hire remote only workers. According to Forbes, one in five workers are working remotely and by 2025, 32.6 millions Americans will be working remotely.
Data was collected from Forbes, Apollo Technical, and U.S. News.
https://www.forbes.com/advisor/business/remote-work-statistics/