If you’ve recently felt the decrease of available talent when hiring, you’re not alone. The U.S. unemployment rate is currently hovering below four percent (it came in at 3.8 percent in March 2019 according to the U.S. Bureau of Labor Statistics).
According to Glassdoor’s 2019 employment trend report, the supply of talent in many fields will be stagnant to growing slowly despite rising consumption and spending from retiring Baby Boomers. The combination of rising consumer demand and a slower-growing labor force, are the main reasons the tight U.S. labor market is expected to continue for the next couple of decades (barring market corrections).
In addition to the disruption in workplace productivity, the financial cost to replace an employee may be more than employers previously thought. According to a 2016 Society for Human Resource Management’s (SHRM’s) Human Capital Benchmarking Report, the average cost-per-hire is $4,129, while the average time it takes to fill a given position is 42 days.
So, how does a small to medium-sized business stay competitive in a tightening labor market?
Offering a high-quality 401(k) plan ranked in the top five of the most requested benefits by in a recent Glassdoor survey. While competitive salaries are critically important, most employees feel unprepared or nervous about their retirement. According to a Gallup report, 51 percent of non-retirees believe Social Security will not be available to them when they retire.
- Arm your recruiters, stay competitive
Job seekers value employers who value their employees. Arm your recruiters with the tools that can help them make a strong case for your company over your competition. Recruits will research your company’s benefits package and likely field multiple interviews and job offers. Level or advance the playing field with a quality 401(k) plan that reinforces your company culture of caring for its team.
- Attract high performers
Appeal to job seekers by demonstrating your company is committed to their well-being for the long-term. Including meaningful retirement benefits reinforces your company’s caring culture, your commitment to your employees and your company’s credibility.
- Engage employees, increase retention
Tight labor markets increase the potential of your key employees being approached by other companies. Employees who feel their employer is invested in them are more likely to be engaged in their workplace and stay with your company longer, which in turn improves productivity while reducing your cost of employee turnover. Your commitment to your company’s culture and 401(k) benefits will go a long way to keep them with you.
- Onboarding assistance and ongoing education
Retirement benefits can be confusing. Leverage financial experts who can help onboard new team members, clearly explain the options and provide ongoing support and assistance to your employees. At RWA Advisors, we work closely with you to ensure that your employees receive top-notch education and care during the onboarding process and throughout the enrollment year. To learn more about our services or to discuss your company’s unique 401(k) needs, email us or call us at (561) 288-1111 today.