Hiring employees tends to become more difficult in a tight labor market. Two years from the onset of the so-called Great Resignation, the labor shortage still persists. This is making it much more difficult for employers across all industries to find qualified talent.
Fortunately, there are things you can do as a business owner or hiring manager to help mitigate the complications. From taking your hiring efforts abroad to attracting talent with new work arrangements, here are three ways to make hiring easier.
1. Hiring From Overseas
If your favorite clothing store stopped selling your size, would you continue shopping there? If you have any sense at all, the answer should be “no.” And yet, many companies continue to prod a tapped-out domestic labor market hoping they’ll find some straggler who’s desperate for employment. If you take this hiring approach, it may not end well for your company.
Though you may be frantic to find someone — anyone — who will accept the job, it’s important to take a step back. Don’t settle for employees who aren’t a good fit just because your selection is limited. Doing so will likely lead to a high turnover rate, which means you’ll soon be back in the dreaded hiring game. When there aren’t enough local employees to meet demand, it’s time to search elsewhere.
Hiring remote workers from overseas is an oft-overlooked possibility that can help you quickly find qualified professionals for your team. If the thought of juggling various international employment regulations makes you sweat, don’t worry. Partnering with an employer of record is a convenient option that can reduce your overseas hiring stresses and liabilities. In this arrangement, the EOR hires foreign employees on your behalf in compliance with applicable laws.
2. Consider Flexible Work Arrangements
During the global Covid-19 pandemic, many corporations allowed employees to temporarily work from home. Though the biggest threat from the pandemic is over, some employees continue to work remotely on a full- or part-time basis. Many professionals prefer a flexible work arrangement that eliminates or reduces their weekly commute times. If you’re struggling to hire employees because good candidates keep choosing competitors, consider offering greater flexibility.
Depending on the position you’re trying to fill, you may not be able to provide a fully remote working situation. In that case, it may be reasonable to offer a hybrid schedule so employees can work remotely part of the time. For example, you might allow team members to work two days from home and three in the office. Or you could structure shifts into a four-day workweek with 10 scheduled work hours daily and an extra day off.
If you’re in an industry that requires workers to be on-site at all times, you may be unable to offer flexible work arrangements. In that case, there may be other things you can do to make your company appealing to top-tier job seekers. For example, you might consider providing mileage reimbursements for long commutes or a generous paid time off benefit. These actions may help you land on-the-fence individuals who are debating between choosing your business or a competitor’s.
3. Adjust Your Salaries
If you’re offering the same salaries you did five to 10 years ago, that could be why you’re struggling to hire people. The cost of living has gone up notably in the past decade, and the dollar’s buying power is diminished. The cost of goods today is approximately 1.23 times the average cost of goods back in 2017. If you’re still paying your employees outdated salaries, you don’t just need to worry about hiring new talent. You also need to worry about how you’ll hang onto the talent you’ve already got.
Salaries throughout much of the nation have not increased on par with the inflation rate. To maintain a good standard of living, many workers are forced to become pickier about the salaries they’ll accept. You may continuously struggle to fill available positions if you aren’t offering competitive salaries. To rectify that, your compensation should be at least equal to the average prevailing salary for comparable jobs. If possible, go a little higher than the average so you can compete for top talent more effectively.
Once you’ve established a good salary, make sure you include it in your job listing so potential hires can see it. In a tight labor market, salary information is one of the most important things you can include in your job posting. Your list of employee benefits isn’t far behind in terms of its persuasive powers. So if you offer great health insurance, retirement plan matching, and bonus structures, make sure applicants know about them.
Attempting to hire in a tight labor market can force companies to run lean because they can’t fill available positions. If you’re finding that it’s more difficult than ever to attract new talent, you’re not alone. Fortunately, there are things you can do to make your company more appealing and compete with similar businesses. Consider hiring overseas, offering greater scheduling flexibility, and increasing salaries. As you do, you’ll most likely find it easier to find and retain qualified talent.
