Now is a great time to look back on the previous year and see how the economy did as a whole to help figure out what to expect in the New Year. As a business owner, it is important to know not only how your business did, but how it fits into the bigger picture of your local, regional and national economy. 2015 was a great year for businesses adding jobs and unemployment rates lowering. Is the economy affecting your hiring process?
The U.S. added 2.65 million jobs in 2015 with 292,000 jobs being added in just December. That’s 82,000 more than economists predicted. The unemployment rate is down by half (5%) since 2009 when it was close to 10%. Economists consider that close to full employment. Not only that but wages increased by 2.5% as well. You might be thinking, “That’s great, but what does that mean for me and my business?” Good question, let’s explore that.
1. It’s a Job Seeker’s market
In recent years, employers have had the upper hand. With tons of millennials entering the job market, employers have had the cream of the crop to choose from when hiring. It was an employer’s market. However, with the economy on the rise and more and more jobs being added, especially in larger companies, it leaves small businesses scrambling to compete with the wages and benefits a large company can offer.
2. Job Seekers are going to be picky
In the past, job seeker’s couldn’t be that picky. They were just lucky if they got a job, especially in small or rural towns where job opportunities were low. Many people had to move to the city to find work. Small start-ups begin to pop up when the economy picks up. This helps create jobs in those areas where people were forced to leave to find work. Job seekers are going to be picky where once they didn’t have that luxury.
3. You need to know what you are offering beyond the paycheck
Millennials are the youngest labor force in the market right now. They are motivated by very different things than the baby boomers were and the gen x’ers are. Millennials want something to believe in, something to fight for. They are highly motivated by social causes. If you want to hire someone, make sure you know what you are offering beyond the paycheck and benefits. Job seekers in today’s market want something fulfilling. If you can show off your company culture, show that it’s sustainable, environmentally friendly, cutting edge and going somewhere, you’ll have an easier time finding the best fit for your business. Make sure you also talk about advancement opportunities. These millennials want to grow with your company.
While the upturn in the economy means good things for everyone, make sure as a business owner you know what that means for your hiring process. You can still find the best employees, you just have to know what matters to them and present that in your hiring process.