Tightening Employment Market
 Are you looking harder for the same talent?
 -by Kevin Franks

A recent survey is reflecting what employers have been seeing which is, it is a job seeker market rather than employers. Interestingly though as employers strive to attract and retain workers, workers still feel cautious about the current job market.

The survey last week of “Employment Dynamics and Growth Expectations Report,” developed by staffing firm Robert Half International and Chicago-based online job site CareerBuilder.com. Conducted in July, the survey polled more than 3,000 workers, including more than 1,000 hiring managers, from companies of all sizes.

Though a tight labor market is nothing new to employers, 81 percent of hiring managers now find it equally or more challenging to meet qualified candidates vs. a year ago, according to the survey. “When we get ready to expand we are totally unable find qualified candidates” is a reaction by many hiring managers.

These challenges are common to many professional industries and are especially pronounced in accounting and finance, where corporate governance mandates have resulted in the creation of accounting jobs that did not exist five years ago.  Another hard hit field is sales and account development where many veteran producers were lost in the downsizing after 2000.

The study also indicates an escalating rate of employee turnover. It is higher than it was a year ago, and is expected to continue to increase in the next year. Employers are trying to reverse that trend by concentrating harder on retention.  In many markets that is complicated by high cost of living, long commutes, reduction or lack of health benefits and other non-salary related issues. Employers that feel they can keep replenishing the herd and buy themselves out of the crisis may face an uncertain future.

Only by making your companies into desirable workplaces will you truly enhance hiring and retention.  Luckily this is the one area that is definitely under your control.  Many employers are looking at increasing starting salaries as well as across the board compensation reviews.  While health benefits plans is a complicated and expensive issue. Many employers are now taking an involved approach in working with employees, insurers and medical providers to provide answers and new options.  Telecommuting is again emerging as popular option as is job sharing.

Companies that offer interesting work, recognition and rewards and opportunities for fast career growth are preferred by job-seekers, according to a separate study released last week by Accenture, a global management consultant firm with offices in New York. Conducted last winter, the Accenture survey polled 4,100 job-seekers in 21 different countries.

Keeping in mind the shrinking talent pool the labor department has been predicting what we are seeing now is just the beginning. The best advice is to make sure your company is offering what job seekers are looking for. You have to be a leader not a follower as those who delay too long will be unable to compete.