Unemployment in America hit an all-time high in April of 2020, reaching a staggering 14.7 percent according to the Bureau of Labor and Statistics. The pandemic was hard on everyone, especially small businesses.
While giants like Wal-Mart and Amazon were hiring, many small businesses were forced to downsize. However, gradually the economy began to improve, and businesses found the unexpected happened when they started recruiting for job openings.
Employees who kept their jobs were reluctant to make changes, even if they weren’t happy where they were. Applications dropped across industries. You would think small businesses would have a huge pool of hungry candidates to choose from, but instead, they reported one of their biggest problems was finding qualified applicants.
The hiring landscape has changed, possibly forever. Here’s what we’re hearing from Texas small businesses looking to hire in the months ahead.
One thing hasn’t changed – how job candidates think about your organization has a direct connection to the size of your candidate pool. A LinkedIn survey found 49 percent of small businesses use referrals from current or former employees to fill openings. That number is even higher in our part of Texas.
When job seekers perceive your company as an attractive place to work, the cost per hire is more than two times lower. Companies that invest in employer brands also have 28 percent less turnover than companies that have weak employer brands.
Great employer brands are built by focusing on the people. They know who they are and what they want to accomplish and they communicate that message clearly. Then they hire people who feel the same and empower them to accomplish mutual goals.
Skills Testing is More Important Than Ever
Well-designed skills testing gives small businesses quantifiable insights. They might also help you hire a diverse workforce because they’re based solely on job-related criteria. Everyone gets the same evaluation on the same skills, so they have equal opportunity to succeed.
Resumes can be misleading. Skill assessments weed out applicants who claim more skills and abilities than they actually possess. It’s possible to be confident and engaging on the phone when you do a pre-interview screening and not be a good match for your opening. Skills assessments can tell you more about their ability to perform well at your workplace and whether or not they have qualities that make them a cultural fit.
These Recruiting Activities are Huge Time Sinks
Large corporations have staff members, sometimes even whole departments dedicated to recruiting and hiring, but that’s not typically the case with small businesses. Nine out of ten small business owners say they’ve been directly involved with the hiring process, and it’s enormously time-consuming. They report these tasks take hours out of their already busy work weeks:
- Searching for candidates – 84 percent of SMBs say they have a hard time finding qualified talent even though they spend a huge amount of time searching. They feel like they spend time on recruiting, then lose top picks to larger competitors.
- Interviewing candidates – SMB owners struggle with uncertainty over whether candidates will be successful. After time spent interviewing, 77 percent of recruiters say they go back and hire candidates who didn’t seem to be a good fit. Once they make a job offer, 75 percent of them say they have experienced candidates changing their minds.
- Vetting candidates – Checking references, conducting background checks is essential, but being thorough takes time.
Our Staffing Agency Can Handle It For You
Businesses that work with Brelsford Personnel experience huge savings when it comes to advertising vacancies, skills testing, pre-employment and background testing, interviewing and onboarding. We already have a huge, quality talent pool with candidates looking for work right now. Send us an email and let’s talk about how we can make hiring easier for your business.