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One of the biggest problems companies face, in particular middle market companies, is a lack of available talent or a lack of the right talent to fill vacant roles. In fact, the National Center for the Middle Market has reported that 44% of middle market firms indicate that a top recruiting challenge is finding candidates with the required skills for a position. Additionally, J.P. Morgan has recently reported that this problem is growing, increasing 25% over last year.
There are a number of external and internal factors contributing to this problem. A low unemployment rate of 4% as well as the related heavy competition for talent creates a small pool of qualified candidates. Sometimes there are the right people within the region, however an inadequate public transportation system can make a commute difficult or even impossible.
Companies may also have internal deficiencies contributing to these recruiting and retention problems. For instance, the company may not have a strong training and development program to prepare employees for future roles or growth opportunities. This, coupled with the fact that workers are changing jobs more frequently than in the past often leads to a successor not being developed or even identified upon a sudden employee departure. In fact, Career Builder recently reported that 40% of workers plan to change jobs during 2019,–a statistic that companies would be well served to address before vacancies of key positions become a detriment to company performance and growth.
So what can companies do about this problem?
Retain Employees
It is certainly better to prevent good employees from leaving in the first place than trying to replace them. The Society for Human Resource Management states that the cost of hiring is $4,129 per employee. If you factor in lost productivity and ramp up time, that number is undoubtedly much larger. So what steps should companies take to retain and attract good employees?
Recruit Smarter
Recruiting has certainly changed. The days of posting a job and waiting for resumes to come in are gone. Employers should leverage the technology and recruiting resources available to streamline recruiting and succession planning.
Be Open to New Ideas
In this highly competitive market for talent, it is important to be open minded in order to cast the widest possible net. Companies that invest in brainstorming and thinking outside the box when it comes to employee sources and work arrangements may see strong human capital returns.
In a challenging market for talent it is important for employers to know their current and desired employees and be open to a new way of thinking regarding recruiting, employee benefits and work arrangements. The rewards could be huge by way of a consistent and motivated workforce.
Kevin Krese, CFA, CPA, is Buckingham‘s chief financial officer. He is a strategically-driven and analytically-focused financial and operational leader with public multinational and private company experience. He is a change driver and team builder with a focus on development. He can be reached at 330.643.0288 or [email protected].
Buckingham is a corporate law firm that counsels Middle Market executives and business leaders all over Ohio and beyond. With offices in Canton, Akron, and Cleveland, Buckingham offers clients Business Law Reimagined through sophisticated and practical legal services. Serving the region for over 100 years with nearly 70 attorneys, Buckingham’s mission is to deliver meaningful experiences through the practice of law, exceed expectations in terms of service, counsel and business sense, and to offer continuous value to the industries, communities and clients they serve. See all of our news and updates by visiting our website.
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