5 Strategies to Recruit Employees in a Tight Labor Market
America is in the midst of the longest economic expansion on record — and for employers, this means the labor market is tight. Record low unemployment rates, increased job creation, and increased consumer confidence have created a situation where job creation has exceeded the number of available employees in many areas.
This marks a stark change from the labor situation a decade ago. In the midst of the Great Recession, American workers have had to compete for a limited number of jobs. Today, employers have to compete for the most eligible employees by offering higher wages, more attractive work conditions, and better benefits packages.
What a Tight Labor Market Means for American Workers
The main advantage of a tight labor market for workers is that job opportunities are abundant. If a person is looking for a job, the chances that they will find one are good. For people who are already employed, their bargaining power is increased, meaning that they will have a good chance of negotiating a higher wage and increased benefits.
Although a tight labor market cannot continue indefinitely, for the time being, employers need to consider how the market affects the hiring process. In an environment where many companies are competing to find the right people for the right positions, employers are going to have to adjust their approach not just when it comes to hiring new talent, but also regarding current employee retention.
The Importance of Recruiting the Right Employees
No matter what kind of industry you’re in, hiring the right employees for your company is crucial. If you don’t have a team of qualified and effective employees, there’s no way your business will stand apart from your competitors and develop a strong customer bond. Failing to hire the right employees will not only harm your ROI – because you end up having to hire different ones – but your productivity will slump, and your company culture will be threadbare.
Strategies to Attract and Recruit Top Talent
Here are some strategies you can implement to build your A-team.
1. Establish a Strong Company Culture
Your company culture defines the personality of your business and the environment of your workplace. To establish a healthy company culture, you need to begin with a solid goal and use a common language and set of goals and standards so that all your employees are on the same page. Don’t forget that your company culture is dependent upon how your company leaders behave, so reflecting your company’s values is key. This is important when you’re recruiting: 88% of employees believe that a well-developed company culture is crucial to business success.
2. Develop an Employee Referral Program
An employee referral program allows existing employees to recommend someone they know for an open position in your workplace. It saves you time because instead of searching for new hires, your employees can do this for you. This is a great boost for your recruiting processes; not only is it the number one way in which people discover a new job, but employee referrals can also help you increase your talent pool by up to ten times.
3. Invest in Employee Education and Career Development
Your employees are your most valuable assets, so investing in their education and development will provide a good ROI. It will also give you an edge over your competitors, increase your employee loyalty, and decrease your employee turnover. Studies show that up to 40% of employees who did not receive adequate job training leave their position within the first twelve months. Offering workplace training courses and seminars is a great way to improve employee education and development while making it easy for you to assess your employees’ performance.
4. Offer a Good Range of Voluntary Benefits
Offering voluntary benefits can help you attract and retain top talent for your workforce. Some of the most popular voluntary benefits include:
- Student loan repayment assistance
- Personal financial planning
- Supplemental healthcare programs
- Pre-paid legal plans
- Financial counseling
This is an important recruitment strategy – voluntary employee benefits improve your overall benefits package, which in turn makes your company more attractive to the top talent pool. Voluntary employee benefits programs also save you money by increasing retention rates. It’s worth bearing in mind that surveys show that 62% of employees under 50 years of age will not consider working for an employer that does not offer voluntary benefits.
5. Offer a Financial Wellness Program
Financial wellness programs are becoming increasingly popular and it’s easy to see why. They have the following advantages:
- Helping you attract and retain employees: Financial wellness programs help to combat some of the everyday financial stress that many employees deal with.
- Improving employee engagement: Employees who are burdened by debt and other financial worries find it difficult to concentrate at work, which translates to diminished health and a drop in productivity.
- Lowering healthcare premiums: Lowering your employees’ out-of-pocket insurance costs is a great way to improve financial health by reducing financial stress. Less financial stress means a healthier workforce, which translates to less absenteeism and lost work hours.
- Helping employees plan for retirement: When employees are under financial duress, it is very difficult for them to save for retirement and maintain health. Financial wellness programs can help them budget for the future.
Two of the most important financial wellness programs you can offer your employees are:
- Loan solutions: These are designed to offer employees a safe solution when they are struggling with a financial emergency, such as unexpected health debt issues or car repairs. Safe loan solutions also enable employees to avoid unscrupulous payday lenders.
- Financial counseling: Counseling programs offer educational incentives. They can help employees learn how to manage their income, improve budgeting, develop a financial safety net, and save for retirement.
How TrueConnect Can Help
TrueConnect is an established company that provides employees with safe and affordable loans, at no cost to the employer. Unlike many currently available employee loan solutions, which are risky and come with hidden fees and penalties, TrueConnect loans are safe and simple.
Employees do not have to undergo a credit check to be eligible for a TrueConnect loan. Instead, qualification is based on income and tenure with the employer.
As an employer, you can offer TrueConnect loan solutions to your employees as a voluntary benefit, which means you are already getting an edge on your competitors in this tight labor market.
Your employees will be able to borrow small amounts of money to help them relieve their financial stress and they will not need to worry about predatory lenders. Furthermore, TrueConnect also offers six free financial counseling sessions, which not only helps your employees get through their current financial problems but can also help them avoid debt in the future.
Contact TrueConnect today and let our financial loan solutions make it easier for you to recruit and retain top-level employees in this tight labor market.