February job growth posted its biggest monthly gain since last July. The unemployment rate is at 3.8%, its lowest level since before the pandemic. 6.665 million jobs were added in the U.S. in 2021, the largest single-year gain in American history. With the bounce back, the job market is about one million employed workers short of where it was pre-pandemic, but there is still a large gap in filling open positions.5 #hiringtips for #SMB during economic turmoil from @RevealGlobal: Click to Tweet
That gap is the widest for small businesses.
During the month of February, companies with 500 or more workers added 552,000 positions. However, companies with fewer than 50 employees recorded a loss of 96,000 employees during the month. That's why it's more important than ever for small businesses to make sure they are attracting the best candidates for their open positions.
- The job market is rebounding and this is good news for small businesses.
- Small businesses should offer competitive salaries and benefits packages to attract the best candidates. Use tools like www.comparably.com or www.salary.com or www.payscale.com to compare your pay to the market.
- Offering a clear path for career growth will also attract top talent to your company.
- With the job market becoming increasingly competitive, it is more important than ever for small businesses to stand out.
The Effect of World Events on Small Businesses
The pandemic resulted in the permanent closure of roughly 200,000 U.S. businesses during the first year of the viral outbreak. Many of those who stayed open did so by the skin of their teeth. But as the vaccines roll out and the economy begins to rebound, small businesses are starting to hire again.
Just when the nation appeared to recover from the Coronavirus pandemic, we all stepped out our front doors to discover the world had changed. The return to work brought the onslaught of resignations as job seekers moved on to greener pastures and found more money doing so.
Combine this with the economic slowdown in China, the Ukraine crisis, unpredictable supply chain disruption, and textbook stagflation in the US and Europe. Every organization in this economy will be severely tested.
Larger corporations may have the leverage to ride out yet another storm, but small businesses have barely cleared the first.Did you know that the job market is about one million (1.14 million) employed workers short of where it was pre-pandemic? Here’s how to overcome the recent crisis as a #SMB. #HiringTips Click to Tweet
Struggles to Find Top Talent
The hiring market is a struggle for all right now, but in particular, it’s difficult for small businesses to keep up. As inflation soars and the unemployment rate drops, many smaller organizations struggle to keep up with salary demands. As larger corporations can increase their salaries to attract that top talent, small businesses can rarely do so without significant detriment to their bottom line.
On top of the wage war, it’s also difficult to meet the demands of remote work availability, which is rising in popularity after Covid-19 forced many businesses to make the switch. The realities for a small business, which often relies on weekend hours and in-person shifts, aren’t high on the list for job seekers at the moment.
While many business owners are working to increase benefits and wages to attract top talent, another rising concern for all businesses is the cost and timeliness of the supply chain.
When talent has the upper hand, how do small businesses compete?
Companies Who Fail to Adapt Recruiting and Work Strategies Will Lose Out Post-COVID
5 Hiring Tips for Small Businesses During Economic Turmoil
Create a well-defined hiring process and prepare for the interview. It’s not a good time for businesses to try flying by the seat of their pants. Rapid hiring seems like a great idea until you realize it’s a bad fit for you and for the candidate. Get organized as best you can, define a process, and stick to it. You’ll feel more comfortable in the hiring seat, and it will likely yield better results.
Provide a delightful candidate experience. Between a lack of candidates and an uptick in no-show interviews, we understand this difficulty. However, even the applicants you pass on can become brand ambassadors when they have a positive experience. And the applicants you do choose to move forward with? They’re more likely to want to work for you if the interview process was pleasant.
Look for diversity in hiring. We can’t stress enough how often an unconscious bias can slip into a hiring process. Review your job postings to reduce your risk of selection bias or discrimination to see who might unintentionally be discouraged from applying. Consider that perspective for race, gender, age, of course. But also from career level and education. Does someone need a college degree or five years of experience for every role? Or is it possible that someone with no experience but is a quick study, could learn the role?
Build your employer branding. Ask former employees to post on your behalf on employer review sites or refer their friends and contacts to your company. Get vocal about the culture you provide and talk about the great employees you already have on your team. If your company looks like a great place to work, more people will want to work for you.
Have a solid onboarding plan once employees are hired. Even better if you can explain what that will look like during the interview process. Ensuring they understand what to expect in the first few weeks will help prevent the quick turnover many small businesses are experiencing with new hires. Laying out that timeline also provides more structure to your existing employees, who then know what to expect when training or helping out in the interim.
Eliminate Further Tole On Your Team
Scaling your in-house recruiting team to deal with the onslaught of global events can be expensive and time-consuming. Focus on scaling your business and outsource some or all of your recruiting efforts to Reveal Global. We have weathered hiring crunches and talent wars for over 20 years, and we bring a wealth of experience and knowledge to your sourcing, recruiting and hiring processes.
We fill your hiring pipeline affordably and continuously — even during global economic turmoil. Contact Reveal Global today to get started.