Businesses
gripe about labor shortage, yet fail to act, survey shows
Small to mid-sized businesses cite labor shortages as one of their most critical problems, yet few have taken steps to improve the situation, according to the Roster Network, an alliance of Indiana professional-services companies. Nationally, unemployment this year hit its lowest level since 1970, and Indiana's rate hovers just over 3%, remaining below the unemployment rates in surrounding states. According to American City Business Journals' latest nationwide survey of 800 companies with under 100 employees, 50% said they had difficulty hiring qualified workers. Of those mentioning difficulties in hiring, 40% said they had not taken steps to fix the problem. Roughly 10% said they had increased pay or benefits to attract workers. Another 8% have tried conventional advertising. "Because of increased mobility and the tight labor market, hiring and retaining the right person for the job is crucial," said John King, president of the Roster Network. The network's Position Matrix® process reduces hiring costs and provides fail-safe methods of conducting interviews. The process helps a company systematically identify its precise needs for a position. The process then systematically links those needs with performance characteristics likely to lead to success on the job. The result, King said, is improved retention and enhanced recruiting.