According to the U.S. Bureau of Labor Statistics, national unemployment is the lowest it’s been in half a century, with the jobless rate dropping to just 3.7 percent. That’s fantastic news for job seekers looking to make their next big career move, but for companies of all sizes, it’s another story entirely.
Today’s tight labor market is forcing large businesses to increase wages at the expense of other benefits, while smaller businesses are feeling the pressure to keep up. In fact, according to a survey of 1,437 people, 28 percent of companies plan to bump up employee salaries in 2019.
So, what can companies do to attract and retain talent in today’s mega-tight labor market?
Today, big companies are coming out on top compared to the competition. Many can afford to hike up wages to respond to a decreased talent pool. And even though salary increases might force them to drop other benefits, job seekers seem to be okay with that. In fact, 65 percent of job seekers would rather see a larger paycheck with less benefits, than vice-versa, according to Nexxt’s survey data.
Still, even with the upper hand, big companies are seeing a drop in the number of quality resumes they receive. If this sounds like your company, it’s time to expand your recruitment tool box to target passive candidates – the group of job seekers who already have a job and aren’t actively seeking a new opportunity, but would jump ship if the right one came around. Through targeted email and text message campaigns, big companies can reach and communicate with candidates in the way that’s most comfortable for them – through their smart phones. And it works. Candidates open text messages from recruiters and employers 97 percent of the time! And once you have your foot in the door, you can woo prospective candidates with your impressive brand name and higher salaries than the mom-and-pop down the street.
Small and Medium-Sized Businesses
If you’re a smaller shop, it’s not always possible for you to compete with the big dogs on salary. But we have three words for you: work-life balance. Does your company have an upbeat, tight-knit culture? Do you give employees off between Christmas and New Year’s Day? Do you offer performance benefits for a job well-done or a great health insurance package? Well, shout it from the rooftops! Where SMBs can’t compete on wages, they can tout their company culture and benefits to attract quality applicants.
Sure, the majority of job seekers would prefer a higher salary over anything else, but there are many of candidates that value (or need) a 40-hour work-week and flexibility for their lifestyles. Whatever your strength is, be sure to play it up in job listings, candidate communications and everywhere your company’s brand has a presence.
While today’s tight labor market is an early holiday gift for job seekers, it’s making recruitment much more complicated for companies of every size. If you’re a big business, you need to get creative. Expand your recruitment toolbox to attract high-quality passive candidates. If you’re a small- or medium-sized business, flaunt what makes you unique to job seekers – whether that’s a benefit or a great working environment – and you’ll be sure to have top candidates knocking at your door.
Want to get in front of the millions of qualified professionals? Visit hiring.nexxt.com to learn how we can introduce you to your Nexxt great hire.
Nexxt is a recruitment media company that uses today’s most effective marketing tactics to reach the full spectrum of talent – from active to passive, and everything in between. Learn more about hiring with Nexxt.