Quick look: Employers focus primarily on growth strategies for their companies. Therefore, unexpected challenges like the Great Resignation aren’t typically on their radar until faced head-on with the problem. Now, maintaining a steady pipeline of talent is an integral part of strategic growth and business leaders are looking at ways they can benefit from the help of a PEO.
The dip in employee availability took quite the turn post-pandemic as a perfect storm of scenarios began to take shape. Baby boomers began reaching retirement age, meaning a whole generation exited the workforce at once. Approximately 28.6 million boomers retired earlier than expected in 2020, reflecting an increase of over three million compared to the year before. This gap leaves room for the younger generation to step into these vacant roles… except Gen Z isn’t interested in the jobs being left behind.
There’s also a serious shortage of accountants, as well as finance professionals, and those in construction, manufacturing, and food services industries. Per CNBC, these positions have historically been filled by employees who are no longer able to work due to constricted immigration policies. Meanwhile, mothers continue to struggle with reentry into the workforce due to a lack of affordable childcare.
The scarcity of talent among so many demographics means there are fewer workers available for the increased number of jobs the economy has produced. With the rapidly changing landscape, it’s difficult for employers to keep up. So, how can they ensure they have the talent they need without slowing down their efforts in other areas of growth?
The pursuit of a pipeline of job candidates
Rather than practice a wait-and-see approach, it’s imperative for employers to implement an ongoing recruiting and retention strategy. Every unfulfilled role means an extra workload for current employees, which often exacerbates increased turnover and low morale. Also, without a proactive approach, employers often don’t have the luxury of time to vet the most top-tier candidates for their open positions. Therefore, overall productivity and quality decline.
To tackle the employee shortage, there are several ways for employers to set themselves up for success starting with a consideration of the internal team. Preparing for when, not if, the need to secure strong talent arises will ensure there’s a list of qualified candidates always at the ready.
Invest in the current team
Many employers need to look no further than their own in-house teams. Rather than immediately consider outside hires for senior-level roles, identify areas where current employees can advance. When employees know their companies are invested in their professional development, it instills a sense of loyalty, purpose, and drive.
It also provides automatic in-house training opportunities to fill the recently vacated roles. Plus, even with new promotions and subsequent pay raises, salary budgets will be more cost-effective when hiring for entry-level or mid-level hires.
Draw from a wider selection of candidates
The adoption of remote working has widened the hiring pool for employers. Recruiting outside of the base geographical region and conventional work experience can open the door to a whole new selection of candidates. While there are non-negotiable skills and experience required for certain positions, determine the essentials versus nice-to-haves.
The past few years have led to unconventional resumes with career pivots and unemployment gaps. At first glance, there are some qualifications which may not be an immediate match for a job description. Yet, determining what’s truly necessary to fulfill the role and what can be taught with training over time expands the talent base and may uncover hidden potential otherwise overlooked.
Keep the pipeline full
Even with ongoing economic ebbs and flows, it’s safe to assume the shortage of workers is a long-term challenge. It’s worthwhile for employers to backfill their pipeline, keep resumes in reserve, and continuously promote the company and open positions on various hiring boards. Having a reserve in place reduces panic over being short-staffed.
For instance, when qualified candidates interview but don’t take an offer, it’s a good idea to keep their resumes on file. Job situations change, and sometimes the only thing prohibiting a perfect hiring fit is timing.
One of the best ways to maintain a steady stream of talent is to protect the ones already in place. It costs more money to hire new employees than it costs to retain the current ones. Building from within is a benefit for all.
Professional development, relevant, affordable benefits, and a sense of autonomy are among the many factors satisfied employees list as what keeps them happy. To fully understand what they value most and what entices them to stay, companies can conduct employee surveys, one-to-one meetings, and exit interviews to gather feedback. This data can guide benefits programs and help to build and sustain a strong company culture.
How can a PEO solve the talent shortage problem?
A professional employer organization (PEO) is equipped with the experience, expertise, and technology to assist employers with all their HR administrative responsibilities. And by offering companies premium benefits at affordable rates, it gives employers an edge over the competition. However, not all PEOs offer the same level of service.
When implementing a PEO solution through ExtensisHR, business leaders receive a person-to-person experience tailored to their unique needs. Full-service recruiting is available at no extra cost as part of the comprehensive list of benefits which include HR guidance and support, benefit and risk and compliance services, and implementation of HR technology.
Employers have access to a dedicated team of HR experts who provide full-cycle recruiting for most staff-level positions, interview assistance, offer letter consultations, and more. Plus, the PEO partnership keeps companies at the forefront of work trends to adapt strategies accordingly. All of this allows employers to continue accelerating company growth without disruptions to their supply chain of talent.
A company is only as good as its people, and a PEO solution through ExtensisHR gives employers the edge they need to succeed. Keep the momentum going with the support of our HR experts. Contact ExtensisHR today.