In recent months, the unemployment rate has steadily experienced a decline. For instance, in November 2019, the unemployment rate in Atlanta had dropped to an all-time low of 3.0% (Click here to see previous article). The unemployment rate across major business-inclined towns in Atlanta, such as Buckhead and Midtown have also experienced a reduction in the rate of unemployment.
There are implications for whichever direction the rate of unemployment tilts. These implications are felt across the economy, individuals, workers, and hiring firms. In this article, we would be beaming light on the impact rate of unemployment has on the hiring process.
* Quality of Workers
The percentage of unemployment has a direct effect on the quality of workers who are available for hire. With a reduced rate of unemployment, you get fewer qualified individuals to fill open roles. Whereas, a high rate of unemployment will mean there are more highly qualified individuals in the pool of job seekers. Highly skilled people are like hotcakes, they are highly sort after. With a low unemployment rate, they are mostly already employed or having a stiff competition with several jobs offer open to them.
* Speed of Recruitment Process
You can afford to waste time when you have an array of overqualified CVs waiting for your approval. When there is a high rate of unemployment, more people who are qualified or even overqualified lose their jobs, and they seek new ones. These people can afford to wait for tedious recruitment processes that take up so much time because their options are limited.
However, in a time where there is a low employment rate, prospective recruits have choices, and you can’t afford to take up time deciding if you want to hire them or not. Several other firms are hustling for the same recruit and will not spend weeks deciding if they want them in their employ. You don’t want to be the firm that loses potentially excellent hires because of a slow recruitment process.
* Meeting Stakeholders
Some companies believe that job seekers should pass through different levels of interviews before they get hired. For instance, a firm wants to fill the position of a front desk or an executive assistant. The prospects have to pass a written test, pass through an HR team interview, and then a final meeting. The interviews could be set on different days, costing the recruit valuable resources.
The above could be the standard when there is a high rate of unemployment; jobseekers have limited choices in times like that and will be willing to go through extreme amounts of stress to land a job. However, given the low unemployment rates currently experienced in Atlanta and the USA, as business owners and executives, you have to tweak your processes to suit the situation. You can conclude your interview process in one day and have the prospect meet stakeholders involved in a lot shorter time.
* Compensation and Benefits
Everybody has a price; you only have to find out what they are charging. Many individuals in the medical field have reported an attractive salary, bonuses, and better working conditions are mostly what they want in a job. If you can provide that, you could land quality recruits from competing firms.
The unemployment rate, whether low or high, does not have to affect your company. At RG Staffing Resources, we can help you implement these steps to recruit the best talents for your company.