The Best Talent on the Market is Within Your Reach, If You’re Willing to Consider a Few Cost-Saving Options
The Impact of the Decline of the US Housing Market on Permanent Recruitment Efforts
by Brenda Witkemper, CPC
Senior Recruiter
The most popular suggestions include:
The most affordable option from above list is, by far, the institution of a work from home program. Within the healthcare IT industry, this arrangement is often quite feasible as well. It is one of the lowest-cost means of expanding your talent pool in any market, but appeal to both employer and employee increases in times of economic decline. If your facility is located in a high cost of living area or in an area where home values have remained relatively steady, you might find it even more difficult to fill vacancies with qualified resources, unless you explore such arrangements.
For the candidate, benefits might include:
Despite the benefits, remote work arrangements are not suitable for all people or for all situations. It’s essential that candidates present with strong work ethic and are self-motivated, organized, and structured in their approach to work. Furthermore, it’s vital that employers provide reliable technologies, software, and communication devices that allow workers access to information, shared documents, and to their fellow co-workers. Despite the distance that may separate one employee from another, team cohesion and a sense of belonging remain important contributors to employee satisfaction.
The Impact of the Decline of the US Housing Market on Permanent Recruitment Efforts
by Brenda Witkemper, CPC
Senior RecruiterIt’s 2011, four years since the decline in U.S. housing prices that hinted at a greater economic crisis. It’s been a long and painful battle since, but 2011 has managed to bring a brighter outlook to our doors. Thank goodness. While we’ve gained some footing following the worst recession since The Great Depression, we’re still a long way from economic health. As a nation, we’re still plagued by high unemployment rates (currently at 9.1%, according to the U.S. Bureau of Labor Statistics, Aug. 2011), low consumer confidence, and a crippled U.S. housing market. These realities have impacted recruiting efforts on many levels, but perhaps the greatest challenge in recruiting today is in the permanent placement sector.
As a recruiter in healthcare IT, I’m grateful for the growth that our industry is enjoying and for the demand spawned by Meaningful Use and ICD-10 initiatives. While jobs growth remains flat in other markets, we’re seeing ample opportunity in ours. The irony is that many full-time, salaried positions are sitting unfilled. I’m seeing hospitals struggle to entice, secure, and retain resources, despite a jobs-hungry climate.
There are many creative solutions to major roadblocks to permanent placement and cost-saving solutions that you may not be considering. I am neither an economist, nor an expert on employment trends, but I can share my experiences and those of the professionals I serve. In doing so, I hope to prompt new conversations (or re-energize old discussions) as you consider your organization’s employment strategies heading into the 4th quarter and beyond.
Let’s explore the housing market’s impact on our nation’s talent pool. Nearly a quarter of American homeowners currently owe more on their homes than what they’re presently valued. Of those remaining, 2.4 million borrowers have less than 5% equity in their homes and combined “negative equity and near-negative equity homes made-up 27.5 percent of all residential mortgages” in the 2nd quarter 2011 (reuters.com). And we haven’t even touched on foreclosure rates, which are staggering and expected to increase. What this means for you as an employer is that, while talent exists and interest thrives, millions are simply unable to contemplate relocation. Furthermore, of those willing to move for the right opportunity, the task of selling their homes may prove painfully difficult. So, unless you’re fortunate to have an endless pool of talent in your backyard, this is your crisis and mine. The conundrum here is that experts agree that employment is key to both organizational stability and economic recovery.
I couldn’t tell you how many times over the past thirty-six months I’ve heard variations of the following: “That sounds like the perfect opportunity for me, but I’m unable to relocate at this time” or “I need to be honest with you… I’m currently upside-down on my mortgage, so while I’d love to consider this position, I cannot sell my existing home.” This reality has become my nemesis when fielding permanent searches. However, when I probe deeper, candidates are quick to offer “carrots” that could make a change plausible for them despite their personal situations.
The most popular suggestions include:
- Option to work from home or telecommute
- Combination of travel and telecommuting, indefinitely or until home sells
- Monthly stipends to offset rental fees on a second residence
- Company-sponsored temporary housing
The most affordable option from above list is, by far, the institution of a work from home program. Within the healthcare IT industry, this arrangement is often quite feasible as well. It is one of the lowest-cost means of expanding your talent pool in any market, but appeal to both employer and employee increases in times of economic decline. If your facility is located in a high cost of living area or in an area where home values have remained relatively steady, you might find it even more difficult to fill vacancies with qualified resources, unless you explore such arrangements.
The idea of telecommuting, or working from a home office, is not new to most and is slowly gaining in acceptance. But it remains an undervalued and underutilized option for solving tough employment challenges. Many employers remain leery of remote work arrangements, despite consistently positive research findings. Let’s look at some of the most significant employer benefits of remote work arrangements:
- Significant reduction in relocation expenses
- Reduced office overhead and less congested work environments
- Quality skills acquisition due to a broadened talent pool
- Greater employee retention / less turnover. In my personal experience, some of the hardest candidates to recruit are those who work from home. They love their current work situations and are not generally motivated to make a change.
- Increased productivity due to fewer interruptions and elimination of daily commutes. Various studies show increase in productivity of 10-40 %.
- Technical and/or customer support coverage after hours, if needed
- Reduction in auto emissions, making for a cleaner environment
- Happier workforce
- Fewer work absences, due to mild illnesses and ailments
- Opens jobs to more disabled Americans, who are otherwise qualified
- Employers may be able to incent candidates to accept lower salaries in exchange for work-from-home option. In a recent study of 637 employees from a cross sampling of industries, 80% indicated that they would consider lesser earnings in exchange for the opportunity to work from home. (Work+Life Fit Reality Check Summary. Madison, NJ: Work+Life Fit, Inc., 2011)
For the candidate, benefits might include:
- Ability to consider employment opportunities despite economics
- Reduced travel to/from work
- More dedicated daily work time
- Ability to work unconventional hours, due to home office arrangement, if necessary
- A quiet work environment
- Work-life balance
Despite the benefits, remote work arrangements are not suitable for all people or for all situations. It’s essential that candidates present with strong work ethic and are self-motivated, organized, and structured in their approach to work. Furthermore, it’s vital that employers provide reliable technologies, software, and communication devices that allow workers access to information, shared documents, and to their fellow co-workers. Despite the distance that may separate one employee from another, team cohesion and a sense of belonging remain important contributors to employee satisfaction.
It’s worth repeating that jobs growth is vital to continued economic recovery. With this in mind, I implore you to identify creative solutions to filling your employment vacancies. I’ve started the conversation and Intellect Resources would love to hear your thoughts. Please, comment on this posting, write on our Facebook wall, Tweet us or send me an email.
It’s now 11:19 p.m., and as a dedicated resource working from the comfort of my home office, I think I’ll call it a day!