Many companies are staying put at their current employment levels (40%) or adding only 1-4 jobs (30%) in the last half of 2010, according to results of the Hiring 2010 HR Hero Line survey. Fewer than 15% of the respondents are planning to reduce staffs.
Companies that are adding jobs cited a variety of reasons, including the need to supplement current threadbare staffing (15%) and an uptick in their particular industry (also 15%). “Just need a few more people,” one HR pro wrote. “Growth in our community supported the additional hiring,” said another.
All isn’t hunky-dory, however, even when hiring is occurring. Surprisingly, some 30% of the respondents reported being unable to find qualified applicants for their open jobs. One hospital, for example, has a financial services manager position that has been open for more than eight months. Pay is in the $80,000 range with full benefits, but few have applied because they say no one wants to relocate.
Others, though, are enjoying the lingering surplus of candidates: “We have seen a large number of well-qualified applicants and can choose from the best.”
HR Guide to Employment Law: A practical compliance reference manual covering 14 topics, including hiring
Many Challenges for HR
The smaller percentage of companies that expect to reduce staffing place the blame on a variety of factors — from outsourcing to industry slowdowns to revenue shortfalls. Not surprisingly, many point to the simple fact that customers remain tight with their cash, which is creating an air of continued caution for hiring managers as the end of 2010 approaches. While 24% of respondents anticipate beginning to hire again in the third quarter of 2010, 20% don’t know when they will start hiring.
“We are filling positions now because we can no longer use temporary employees (per our collective bargaining agreements),” one survey respondent wrote. “However, our 2011/2012 budget is uncertain, and we may be forced to cut position in January 2011.”
When asked to pinpoint their biggest hiring challenge in the next six months, many said it would be finding the right balance between staffing and the work that needs to be done. Survey participants also voiced concern about maintaining employee morale and loyalty when workers haven’t had raises for at least one year — sometimes two or more years.
The salary lid creates challenges of its own. As one respondent explained it, “If we hire, [the challenge will be] trying to get the best qualified new hire at a salary level comparative to current employees who have had to endure no raises for two years and a salary reduction.”
Audit your hiring policies and practices with the Employment Practices Self-Audit Workbook
Other Survey Highlights
Companies with older workers confirmed what the national media have been suggesting: Many employees approaching retirement age are holding onto their jobs longer than usual — mostly because they can’t afford to retire. Some are waiting and hoping that their 401(k) funds will recover. For others, the big push is to hold onto their health insurance coverage.
“Yes, many employees are asking about their health care options if they retire early,” one HR pro wrote. “Since our group is small, our insurance company will not offer early retirement insurance. Many of our employees are delaying retirement until they can transition from COBRA to Medicare without paying the high cost of an interim conversion policy.”
When hiring does resume, HR pros overwhelmingly reported that they will be hiring full-time employees instead of part-time employees or temps. And they hope — and expect — that their current good employees will stick around. More than half of the respondents expressed confidence that their staffs will remain loyal and work hard even after the economy picks back up.
But that doesn’t mean hiring problems and warning signs are being ignored. Here are other big challenges that survey respondents foresee for at least the next six months:
- “Dealing with applicants who are significantly overqualified for the positions we need to staff.”
- “Keeping everyone else going when someone leaves and is not replaced.”
- “Selecting candidates for entry-level jobs who are likely to stay with us if/when local job prospects improve.”
- “Weeding through candidates.”
- “Coaching managers to make the best hiring decisions.”
- “Committing the time to train the new employees once they are hired.”