In today’s job market, it may seem like companies should have no trouble finding qualified employees to hire. After all, with high unemployment rates, there are plenty of people looking for work. However, the reality is that the increase in job seekers has made the hiring process more competitive and difficult.
There are a number of factors that contribute to the current difficulty in hiring, even during high unemployment.
There are quite a few reasons why hiring is more difficult during high unemployment, let’s explore each one in more depth.
1. Unemployed people are not actively looking for work
First, many of the unemployed are not actively looking for work. They may have given up hope of finding a job or may be content with their current situation. Some people have relied solely on pandemic relief payments and have not been looking for work at all. This means that the number of job seekers is actually lower than the unemployment rate would suggest.
2. The unemployed are less qualified
Unemployed people may have become less qualified than they were before. They may have lost their previous job due to a downsizing or be working in a completely different field. As a result, they may not have the skills or experience that employers are looking for today. If you were working in a position for 20 or 30 years and let go due to the pandemic, it can be difficult to re-educate yourself and upgrade your skills to be competitive in today’s job market with younger workers applying for the same positions who have been taught about and attended college for these new job skill requirements.
3. The unemployed are less likely to relocate
Another factor that makes hiring during high unemployment more difficult is that the unemployed are less likely to relocate. Those who are out of work recently and have been working in the same company for over a decade have a lot of ties to their current location. They may have a family, own a home, and have other reasons that make it difficult to move. As a result, employers may have trouble finding workers who are willing to relocate for a new job.
4. The unemployed are less likely to take risks
The unemployed are generally less likely to take risks. They are not as likely to quit their current job, even if it is a dead-end position, because they need the income. They are also less likely to take a pay cut or accept a lower salary than they were making previously. As a result, employers may have trouble finding workers who are willing to accept a lower salary.
5. Too Many Applicants
With so many people out of work, companies are receiving an overwhelming number of job applications. This makes it hard to weed through all the applications and find qualified candidates. It takes a lot of time and effort to interview each candidate, and many companies simply do not have the resources to do this.
This is where a staffing agency can be a powerful advantage to a company that doesn’t have the resources to filter through applications when looking to hire for a position in their workforce.
Have a Staffing Need or project in mind? Don’t hesitate, Contact us today!
6. Unemployment Benefits May Hinder Hiring
While unemployment benefits provide much-needed financial assistance to those who have lost their jobs, they can also act as a deterrent to hiring. This is because unemployment benefits can sometimes be more than what a person would make if they were working. As a result, some people are content to collect unemployment benefits rather than looking for a job. This can make it difficult for companies to find workers, even when there are plenty of unemployed people.
7. Laying off current temporary or contract workers
In some cases, companies may be hesitant to hire new employees because they are in the process of laying off current employees. This is especially true for companies that have been affected by the pandemic. While it may seem counterintuitive, laying off current employees can make it more difficult to hire new employees. This is because laid-off workers often have negative things to say about their former employer, which can dissuade other potential employees from applying for a job with the company.
8. The business environment is unpredictable right now
The job market is constantly changing, and it can be difficult to keep up with the latest trends. This is especially true during times of high unemployment when the job market is more volatile. When the business environment is volatile, it can be difficult to predict when or where the next job will be available. As a result, employers may be hesitant to hire new employees because they are not sure when their business will rebound.
9. Hiring is expensive
Hiring new employees is not cheap. There are a lot of costs associated with recruiting, interviewing, and training new employees. These costs can be a deterrent for companies, especially during times of high unemployment when budgets are tight.
10. There is a lot of competition for jobs
With so many people out of work, there is a lot of competition for jobs. This can make it difficult for employers to find qualified candidates. It can also make it difficult for employees to stand out from the crowd. As a result, employers may have trouble finding workers and workers may have trouble finding jobs.
What’s the solution?
The current situation might make it seem like it’s impossible to find qualified candidates, but there are still ways to find the right employees for your company. Look to partner with a staffing agency that specializes in on-demand hiring. These agencies can provide you with qualified candidates when you need them, and they can also help you find the right candidate for the job. With so many people out of work, it’s important to take advantage of all the resources available to you. Contact a staffing agency today to learn more about how they can help you find the right employees for your company.
What are staffing agencies?
Staffing agencies are companies that provide employees to businesses on a temporary or permanent basis. These agencies will find, interview, and screen candidates for you, then send a qualified candidate for your business to fulfill the role. They make the hiring process extremely easy for businesses, and they can be a valuable resource during times of high unemployment.
How can staffing agencies help during high unemployment?
Staffing agencies can help businesses in several ways, here are some of the main ones:
1. Staffing agencies can provide you with qualified candidates
Staffing agencies have access to top candidates who can add great value to your businesses. They can help you find the right person for the job quickly and efficiently. Staffing agencies also have access to temporary and contractual workers who can be hired on a short-term basis.
2. Staffing agencies can help you save time and money
Hiring is a long and costly process. Staffing agencies can help you save time and money by doing the legwork for you. They can screen candidates, conduct interviews, and reference checks. This takes the burden off of you and your team so that you can focus on running your business.
3. Staffing agencies can help you manage your workload
If your business is experiencing a surge in demand, staffing agencies can help you meet your deadlines. They can provide you with the extra staff you need to get the job done. They work as an HR department for your business, so you can focus on what you do best. In addition, staffing agencies can help you with your long-term staffing needs. They can develop a customized solution that meets the unique needs of your business.
4. Staffings agencies can fill spots fast
When you have an open position and you need to fill it fast, staffing agencies can help. They have a large pool of candidates to choose from and they can fill the position quickly. This is especially helpful when you have an urgent need or you’re short-staffed.
As you can see, hiring in today’s market can be difficult. Because of the pandemic, many businesses are struggling to find the right employees. Staffing agencies can be a valuable resource during these times. They can provide you with qualified candidates quickly and efficiently. They can also help you save time and money. If you’re looking for help with your staffing needs, contact MGR Workforce today.