Strategies to Attract Talent in Challenging Times
By Patty McDonald
If you are getting back to being “out and about” in Frederick County, you’ve probably noticed “Now Hiring” signs all around town. It’s clear that businesses in Frederick are hiring!
FAST FACTS: In April 2019, there were approximately 8,763 job openings in Frederick County. During the beginning phase of the pandemic in early 2020, that number fell to 6,844. In April of this year, that number was higher than the pre-pandemic year, with 9,759 job openings posted in Frederick County - an increase of almost 1,000 positions!
Unfortunately, many of the companies that are trying to hire are having difficulty finding candidates. There’s a lot of speculation about why candidates seem to be in short supply right now. Many theories implicate the availability of generous Unemployment Insurance benefits; however, it’s likely that there are a number of factors impacting the availability of the workforce.
The status of vaccination and safety concerns around return to work, concerns about childcare with schools still largely virtual, and availability of livable wages are all factors contributing to the fact that employers nationwide are struggling to fill open positions. The bottom line is that labor force participation is down. That’s not a new phenomenon though. According to EMSI, even as the number of jobs increased in Frederick County, the labor force participation rate decreased from 65.0% to 60.4% between 2015 and 2020. The pandemic pushed that rate even lower.
Even before the pandemic, the labor market was tight (for different reasons) and businesses were getting creative with recruitment and retention programming to attract and retain talent.
Here are three things that companies doing right now to attract talent:
Improving Compensation
Overall, there is an effort to make vacancies more appealing. Many companies are reviewing compensation packages and ensuring that they can attract talent at the right price point. Paying below the “going rate” will prove to be a deterrent to increasing an applicant pool. Not only are wages increasing, there also seems to be a rise in other perks such as sign-on, referral, and retention bonuses, and profit-sharing options.
Increasing flexibility and telework options
Whether it’s the “new normal” or a product of the situations created by the pandemic, many companies and workers have realized that productivity can happen from home offices. Workplace flexibility can give parents the ability to navigate back to in-person school transitions, allow workers to care for a sick or elderly relative, and as we return to normalcy, participate in activities that can provide a sense of well-being.
Employer branding and experience
Access to information has increased transparency dramatically, and savvy candidates are doing their research before applying to a particular business. Also, as candidates move through the application process, positive experiences say a lot about the culture – and so do negative ones. Positive reviews about workplace culture can go a long way to making an employer a “workplace of choice.” Creating an environment that people want to join and telling that story will help in attracting good candidates.
CASE STUDY: CANAM STEEL CORPORATION
Canam Steel Corporation (CSC) is a good example of a local company that is adapting to growing demand and labor force shortages. CSC is a major US manufacturer of open web steel joists and steel deck. The company participates in thousands of projects each year, ranging from large distribution centers and high-rise projects to small retail centers. The steel joist business in the US dates back to 1986 as a partnership with Canam Group and the steel deck business was launched by an acquisition of the United Steel Deck brand in 2010. The corporation currently operates six fabrication facilities, several sales and engineering offices, and employs approximately 900 people across the United States.
Although they have all been dealing with a global pandemic over the past year, as a critical infrastructure employer, CSC continued to operate following strict COVID 19 guidelines. The company is seeing extremely high demand in the current construction market environment for the steel joist products that they produce. These conditions have allowed them to book one of the strongest backlogs in the history of the facility in Point of Rocks, Maryland, and they are steadily growing our production capabilities.
If you ask anyone at CSC, in order to meet the growing demand, the three things they require are people, material, and equipment. They are currently investing in each of these areas, by adding new and upgrading existing equipment, increasing safety devices on all machinery, improving processes, and expanding the benefits offered to employees. In the first quarter of 2021, CSC installed an additional production line, adding 24 new positions in their shop.
Here’s what the company has done to attract talent for their increasing demand:
Increased the hourly wage for all employees.
Added a sign-on bonus and increased the amount paid for employee referrals.
Introduced a new and improved Profit Sharing Program with three separate payouts: weekly, monthly, and quarterly.
Hired a dedicated trainer to support the onboarding process and to help team members become fully acclimated to Canam’s culture of teamwork.
This past year has been difficult for everyone, but CSC has chosen to reinvest in its people and the organization.
To learn more about Canam Steel Corporation, visit their website: https://cscsteelusa.com/
FINAL THOUGHTS: Economists are predicting that we are already at the beginning of a strong growth period. Undoubtedly, access to the workforce will impact a business’s ability to grow. Now is the time to ensure that compensation packages are competitive, and your company is an appealing place to work.