Peter Landesman, Senior Business Development Manager, JVS Career Services
A recent article in the Cincinnati Business Courier advised employers that a tight job market with low unemployment coupled with employers’ difficulty filling jobs will prompt wage hikes that could average 3.5 percent.
In an article titled, Inside the Hottest Job Market in Half a Century, The Wall Street Journal reports that the US economy has added jobs for 100 consecutive months and unemployment has dipped to its lowest level in 49 years. Further, workers with less education and people working with in the lowest-paying jobs are getting bigger pay raises.
This tight job market is but one factor in positions going unfilled as employers are struggling to recruit qualified candidates for all their open opportunities. Millennials now comprise the greatest percentage of workers and they tend to average a job change every two years.
Frequent, voluntary employee turnover can be a hidden expense for some employers – especially those that monitor spending on advertising, hardware, and workspaces, but do not grasp the cost of replacing those lost workers.
Consider the following costs in terms of resources, time and cash outlays:
- Posting jobs
- Interviewing candidates
- Offering referral or sign-on bonuses
- Training & onboarding new hires
Don’t forget that employers also are incurring costs whenever employees leave in payouts for unused vacation and unused sick time.
According to Society for Human Resource Management (SHRM), the cost to replace an employee can average between six and eight months of that employee’s salary.
And, costs don’t end there. Employee turnover adds to decreased productivity and morale as the work is spread to current employees while a position is being filled. Workers that leave also take with them intimate institutional knowledge that can take a new employee months or years to accrue.
Voluntary employee turnover along with economic growth is creating seemingly more jobs than candidates which places undue stress on an employer’s HR and Talent Acquisition Departments.
Many employers are now engaging professional recruiting organizations to close these employment gaps after finding limited success with posting their open positions on a variety of job boards or through social media channels. Recruiters make the process to recruit and hire qualified candidates more efficient for employers. For example, recruiters take over the time-intensive tasks of posting jobs and screening for finalists.
Recruiters can dramatically reduce the time-to-hire which helps employers reduce costs and avoid further employee defections.
Consider engaging JVS Career Services as an additional talent acquisition resource to assist with your recruiting needs. We have the experience and have been a cost-effective solution for local employers. Give us a call to learn more.
Peter Landesman, Senior Business Development Manager and Career Coach, comes to JVS Career Services after 40 years as a marketing and marketing communications professional. Peter has worked in a wide variety of industries that include consumer packaged goods, retail, publishing, healthcare, information technology, private aviation, professional services, and employee benefits. He has worked for well-known companies such as World Book Encyclopedia, JCPenney, American Heart Association, NCR, and NetJets.
To contact Peter Landesman, please call (513) 745-2905, or email email@example.com.