Posts

Overtime is Not the Solution for the Labor Shortage

Overtime is Not the Solution for the Labor Shortage

There is one thing almost every employer can agree on – hiring qualified candidates in today’s labor market is like fighting an uphill battle. As the U.S. economy continues to recover, it has become increasingly challenging for companies to hire and retain workers. Companies like Amazon and Walmart have plans for significant hiring pushes and must be creative to fill those seats. A recent global survey of nearly 45,000 employers reports that 69% of them are struggling to fill vacancies. But with a lack of applicants, many companies are resulting to overtime to solve these shortages. However, this will lead to more labor shortages, and other issues down the road, and here is why.

Overworking your staff will make the situation worse

When there is a labor shortage at your company, work still needs to be done. So, while your internal recruiting team is diligently trying to fill those vacant positions, the obvious solution is having your staff work overtime. Some workers embrace this initiative with open arms because of those more lucrative paychecks. However, this excitement swiftly drifts away after weeks and weeks of being overworked. As this issue lingers, those long hours will eventually impact your staff’s mental health with the additional stress. The result of this extra stress is more resignations, which will only perpetuate your staffing shortage.

Also, when your staff is burnt out, the quality of their work and attention to detail starts to dwindle, resulting in quality issues, and ultimately, a hit to your bottom line. So, lots of overtime may be a quick fix to your production needs but will suddenly become detrimental to your team’s morale and productivity.

Attracting and retaining workers

So, with overworking your staff not a sound solution to your labor shortages, what can your team do to keep production on point? One way to attract and retain talent is to offer comprehensive training programs for your staff. The same survey above reveals that 40% of employers offer training and development to attract and retain talent. The Pule of the American Worker: Special Report also revealed that only 48% of workers have participated in employer-sponsored skills training in the past year. That is down 10% from August 2019. Therefore, employers need to actively offer skills training for workers to keep them engaged and help reinforce their toolbelts. By investing in your staff, you illustrate that you care about their development while helping them prepare to take on more responsibilities or even transition into new roles as demands change.

Partnering with a recruiting firm

Retooling your staff will only get you so far. Today’s labor shortage will be a thorn in most employer’s side throughout the fourth quarter and even into the new year. If your internal recruiting team is at its wits’ end, have you thought about partnering with a recruiting firm? At JSG, we can work with your hiring team to design a staffing solution specifically for your company’s needs. We work hard, we work together, and we work for you. Let’s have a conversation and see how we can impact your hiring efforts in this unprecedented market.

2018 Hiring & Staffing Trends

6 Hiring & Staffing Trends On The Rise In 2018

2018 Hiring & Staffing Trends

We’re in a new year which means new goals for candidates and companies alike. Many organizations are desperate to boost their talent by hiring employees poised for growth and advancement. Candidates, however, have a wealth of options in today’s candidate-driven market. Here’s a look at the staffing and hiring trends that will drive the job market in 2018.

Hiring Will Increase

Hiring was strong in 2017, the year ending with around a 4% unemployment rate. This push for hiring will continue to grow into 2018, with 61% of companies expecting to hire more talent in 2018 than the year previous. The best part? Companies are hiring to support growth – with 56% of employers aiming to use fresh talent to push growth agendas, and only 13% hiring to backfill open positions. (Source: Indeed)

Competition Is Hot

With the unemployment rate being so low, competition for hiring top talent is at an all-time high. 42% of employers are concerned about finding the candidate’s they need to fill new and existing positions.

The U.S. Tax Reform Bill

Whether you are for it or against it, the U.S. Tax Reform Bill was signed into law by President Trump on December 22. The tax reform will provide a whopping $1.5 trillion in tax cuts to corporations and businesses. These reductions in taxes may result in a boom in the economy and companies may look to create more jobs with their tax savings.

Increase In Contract Work

“In 2018 we expect to see a continued imbalance between a tight labor supply and fairly robust demand,” says Patrick Beharelle, CEO of TrueBlue. “And with such low unemployment, you tend to see more churn.” (Source: Monster) Rapid turnover in a candidate-driven market often increases the demand for temporary or temp-to-perm hiring. In 2018, employers will be eager to hire employees and train as they go in an effort to fill critical needs quickly.

Tech & STEM Will Lead The Way

2018 will continue to be a year of technological advancement and companies who want to stay competitive will be looking to hire top tech talent. Other STEM positions will also be in high demand as drones, streamlined product development, and data analysis become more and more prevalent in business operations. Between now and 2022, over one million new STEM jobs are expected to be created, with about half not even requiring a Bachelor’s degree. Additionally, 93% of STEM occupations boast wages above the national average and these numbers are expected to continue rising as competition for this skilled talent increases.

Healthcare is Now the U.S.’s Largest Employer

Due to the escalation of medical spending and the inevitable aging of the U.S. population, the Healthcare industry just surpassed the manufacturing and retail markets as the largest source of jobs in the United States.

Award-Winning, Customizable Approach to Staffing

 

Unique value starts with having an experienced team then combining that with an understanding of how to effectively apply that expertise. Johnson Service Group (JSG) is a privately held organization, with the scale that allows us to provide a unique value to our client partners. It is our priority to understand our partners strategy and needs to fully customize a workforce solution specifically designed with the team and culture in mind.

Our flexible staffing approach has a proven value and with great success, comes tremendous growth. We are pleased to be named to the following prestigious lists by Staffing Industry Analyst (SIA): 2017 Largest Staffing Firms in the U.S., 2017 Fastest Growing Staffing Firms in the U.S., and the 2017 Largest Engineering Staffing Firms in the U.S. for the last four years.

SIA is the global advisor on staffing and workforce solutions. The list of Largest Staffing Firms was comprised of 144 companies that generated at least $100 million in U.S. staffing revenue in 2016. The 110 companies named to the Fastest-Growing Staffing Firms list experienced at least 15% compound annual growth in revenue from 2012 through 2016. The Largest Engineering Staffing Firms list focused on the top 25 firms who account for 67% of the market, by SIA estimates.

Our growth comes from approaching relationships with flexibility and transparency. Allow us to find the right people for the team, so leadership can focus on growing business.

Learn more about JSG services and review a full list of industries we serve.

 

Minimum Wage Increase In Northeast - And How Staffing Agencies Can Help, Johnson Service Group, Johnson Search Group, jobs, hire, wages, staffing agencies, JSG, minimum wage, northeast

Minimum Wage Increase In The Northeast – And How Staffing Agencies Can Help

With 19 states having raised the minimum wage level, which went into effect at the onset of 2017, many large companies have been left grappling with huge increases in labor costs. The northeast particularly is being hit hard as most of the states in the region are on the increase list: New York (+.70 hrly), Massachusetts (+$1.00 hrly), Vermont (+.40 hrly), Connecticut (+.50 hrly), Maine (+$1.50 hrly) and New Jersey(+.06 hrly). Additionally, in 2016 New York state lawmakers approved measures which will set the NYS minimum hourly wage to $15.00 by 2019, almost a full $4 hourly increase per head.

For many companies, this cost does not come easily and the talk of layoffs is in the air. For some workers, this will even mean being reduced to part-time to minimize company spending on employee benefits. No matter how companies are coping, the issue of how to manage with the new costs weigh heavily.

Minimum Wage Increase In The Northeast And How Staffing Agencies Can Help

Image c/o New York Times

Luckily, staffing firms are coming to the rescue. The method of coping with the issue comes in revisiting how companies hire. Instead of worrying about how to pay a larger group of minimally qualified employees a higher salary, companies are reaching out to staffing agencies to hire more qualified employees with salaries they deserve.  A single vetted and qualified $12.00 an hour laborer can possibly do the same quality job as 3 unqualified laborers, previously being paid less.

Furthermore, many companies are reportedly finding that when they have more qualified people, they spend less on training overheads. Without the fruitless lay time that occurs when training new laborers, there is a significant increase in production. This is especially true for factory and manufacturing workers for whom costly special training staff is often needed.