Employers need to be proactive to keep top talent in full labor market
“Milestone for U.S. job market: More openings than unemployed.”
That was the headline on a news story in my Associated Press feed that quickly caught my eye Tuesday.
For the first time on record, the number of job openings in the U.S. exceeds the number of unemployed Americans — a trend that experts say may soon give workers more leverage for pay raises.
The number of available jobs in April rose 1 percent to 6.7 million from 6.6 million in March, the U.S. Labor Department said Tuesday. That’s the most since records began in December 2000.
The number of people quitting their jobs rose to a record high of 3.4 million in March, suggesting workers are leaving jobs for new, probably higher-paying, positions. Job openings rose in professional and business services, including accountants, architects and engineers; in manufacturing; and in hotels and restaurants.
To be sure, some of those numbers might seem counterintuitive to plenty of folks, as U.S. household incomes have remained stagnant relative to inflation for at least a couple of decades.
But here’s the bottom line: For all practical purposes, the U.S. economy is at full employment. People who want jobs have jobs. And people who don’t like their jobs are increasingly leaving for better jobs.
So, what is your company doing to establish itself in the market as a preferred employer … an organization that lures talent away from the competition and keeps the top performers it already has?
“The job market has been really tight,” said Aaron Jagdfeld, chief executive officer of Generac Power Systems in Waukesha, “This is the most difficulty we have had filling positions in my 24 years with the company. We have over 200 openings right now — positions in our factories, as well as office professional and technical roles. We have had to get very cre-
ative to try and recruit in this market.”
Jagdfeld said Generac has deployed the following 10 tactics to recruit and retain top talent:
1. Raised starting wages nearly 15 percent over the past six months across all facilities for entry level positions.
2. Instituted weekly “Walk in Wednesdays,” allowing applicants to come in at any point on a Wednesday and interview for a job without an appointment.
3. Invested in advertising to promote hiring, including social media, print, billboards, television and radio.
4. Attended community job fairs across the region.
5. Added local sponsorships to inSue crease the company’s presence as an employer in the community.
6. Dropped fliers and leaflets about the company’s openings at churches, colleges, technical schools, etc.
7. Heavily promoted referral bonuses for existing employees.
8. Hired additional recruiting resources in every plant.
9. Added trainers to improve onboarding for new hires.
10. Launched a new partnership with the Waukesha County Business Alliance called the Employee Resource Network, which is a free service for employees to access a “success coach” to assist with work, home or life issues.
Marks, founder and CEO of Cielo, a Brookfield-based staffing firm, says employers need not overthink this unprecedented help wanted crisis.
“What’s love got to do with it? Everything. Candidates and employees need to know you care. Help your employees see themselves in the purpose of your organization and communicate it widely both internally and externally,” Marks said. “Let’s be honest, money matters. If you’re not paying competitively, you will lose talent. Competitors are happy to pay more to lure your top talent away from you.”
Jessica Ollenburg, CEO of Human Resource Services Inc., a Brookfieldbased business consulting company, concurs.
“With the crunch specifically in manufacturing and skilled trades, cash is still king for those making less than $45k,” Ollenburg said. “Other priorities creep into the picture once basic food, shelter, care and lifestyle needs are reliably met. We can reliably state to any employer that if competitive, living wages are not offered, the rest of this discussion becomes moot. I would argue with any employer who thinks living wages are ‘creative.’ Living wages are critical to a company’s success.”
The takeaway: If you’re not paying your people a competitive, living wage, with a path for additional growth, you are forewarned. You’re on the clock.
In next week’s column, we’ll cast a broader net and report on an array of tactics and strategies thriving employers are deploying to recruit and retain top talent. This challenge is not going away anytime soon.
Steve Jagler is the business editor of the Milwaukee Journal Sentinel. C-Level stands for high-ranking executives, typically those with “chief” in their titles. Send C-Level column ideas to him at steve.jagler@journalsentinel.com.