Despite a tight local labor market and more jobs available than there are people to fill them, some staffing firms are busier than ever. “We’ve had the best year in the company so far,” says Rosanna Hayden, owner and CEO of Artizen, Inc., established in 1991 and based in Rohnert Park. “Our business is going gangbusters in every service area we provide. Everyone needs people, and if we can find them good people, we’re definitely worth our weight in gold to our client.”
And finding that golden candidate in a challenging labor market isn’t easy. The pandemic upended the way we do business on many levels, and the way companies hire and retain employees. Where once the employer called all the shots, job candidates are increasingly able to negotiate for more freedom to work remotely and other perks.
“The more progressive employers know that remote work works, and they are hiring that way,” adds Hayden. “Employers who aren’t leaning that way are not getting the same interest from job candidates, not as many responses. An employer who wants the best candidates has to put all its cards on the table.”
Ryan Buxbaum, president of Next One Staffing, says there’s been a major reshuffling in the staffing industry. “Most of what we do is finance and accounting placements, and those professionals who might not have been open to considering a new job are now wanting an employer who can give them a hybrid model of work––three days at home and two in the office, for instance––or an all-at-home opportunity.”
A major change in recruitment that’s a carryover from the pandemic is that first-round interviews are not conducted in person but via Zoom or other virtual technology. “That’s been good for our business and recruiting in general. We get the interview done quickly. It’s not like before when you had to arrange for two people to meet at a coffee shop,” he says.
Because unemployment is low, job candidates have more leverage than in the past, adds Buxbaum. “Just a few years ago, employers dictated all the terms of employment, told candidates what their day on the job would look like and what was expected of them each day. Now candidates can ask for more flexibility. So it’s a matter of matching those people with the companies that are open to that. We make sure the opportunities we present to candidates are ones that they are seeking.”
Remote work trumps commuting
A name change to Nelson Connects, formerly known as Nelson, was in the works for several years but was accelerated during the pandemic. “Our new tagline is ‘Connecting Jobs, People and Communities,’” explains Chandra Pappas, COO of Nelson Connects. “We are consistently improving the way we hire and retain employees, while becoming more specialized recruiters and teams.”
The pandemic created a challenging labor market across all business sectors, she says. “Some of the tightening was pre-pandemic, but it was heightened by COVID. In the leisure and hospitality industry, along with retail and food service industries, many employees left their jobs or were let-go. People began to re-evaluate what they wanted to do for a living resulting in many people not returning to those jobs.
A trend that’s not yet come to fruition on a grand scale is Baby Boomers returning to the workforce. “We are seeing an uptick of people who had retired now coming back as consultants,” says Pappas.
Leap Solutions Group, a business management consulting firm specializing in human resources, organizational development and executive search based in Santa Rosa, specializes in team strengthening and executive coaching. “One of the things we see more now than ever before is the option to work remote,” says Partner Chuck McPherson. “We have clients, big organizations, that are fully operational and there is no office. That’s the one big change we’ve seen since the pandemic. Client companies are accepting that remote work is a new way of working, and now it’s what fits their model, culture and environment.”
Job candidates are more discerning than before the pandemic, as well. “The freeways were empty during COVID. So now we’re seeing job candidates living in Petaluma who are offered a position in Santa Rosa saying that it’s too far to commute,” says McPherson. “Figure in the high price of gas, and distance to the workplace has become a major factor.”
He says if a company has hired Leap Solutions Group to search far and wide, and is willing to make a job offer to someone from outside California, there’s a specific process they undertake with the client. “Say the job candidate would need to move to Sonoma County from another state where the cost of living is much less. In that case, we have a deep discussion with the client about what that means––the difference in housing costs, the relocation costs and so forth. We have to talk through all that so they are willing to pay for it. For that reason, some companies want a job candidate who is already local.”
McPherson says his company is busier than last year, and 2021 was busier than 2019. “But 2020 affected everybody, and all of our clients have had to reevaluate work-from-home processes. And there are a variety of reasons why good candidates are hard to find right now. In most of our circumstances, the people we are recruiting are currently working, and we are posting and receiving plenty of applications. I don’t know if there are a million people sitting on their couches watching TV––I don’t think so––but the people we are recruiting, typically management level and above, are all working.”
Sign-on bonuses
Hayden’s staffing company searches for job candidates for clients “using every tool at our disposal,” she says. “An employer typically does a job posting on their own and then hopes someone responds. But these days it’s slim pickings. If you’re not partnering with a staffing firm, you may not find the people you’re looking for, and that can cost time and money.”
At the moment there is a shortage of people, not jobs, she adds. “The one sector of the job market I’ve seen struggling is accounting and financial pros. The younger generation––in mass quantities––are not studying in that area, so there are not enough of these workers to go around. And that’s driving up wages in that sector significantly.”
Large sign-on bonuses are also a newer trend in hiring, sometimes in the thousands of dollars. “In the past, bonuses wouldn’t have been extended except perhaps for an executive position,” says Hayden. “But now if it’s a valuable team member position, you have to offer something extra. Another way to find good candidates is to offer the remote working option. I see people negotiating for perks now that they maybe couldn’t do a few years ago.”
If the client wants a particular candidate, they will pay for relocation costs and extra compensation that allows that person to live in the North Bay, she adds. “There has to be a ‘what’s-in-it-for-them’ component. The No. 1 thing people are asking for is the ability to work from home. Retention should be a part of any employer’s agenda, and they should also consider wage increases.”
Buxbaum believes the 9-to-5 work week is a thing of the past. “I don’t think we’re ever going back to ‘normal’ work weeks, because employees can be just as productive at home as in the office. We are seeing some employers who traditionally followed the five-day work week trying to pull their employees back into the office. The ones who want to go back to the office are doing so, but those employers are starting to lose people who want the hybrid work schedule.”
From a practical standpoint, working from home saves on gas and time stuck in traffic. “If you can give people two hours of their life back every day because they are not commuting, that’s magical,” he says.
If employers found better ways of running their business during the pandemic, perhaps they are asking themselves, why didn’t we always do it this way? “Well, sometimes people don’t know what they don’t know,” McPherson says with a chuckle. “But we are finding that many people want to get back to being in offices, because there’s nothing that can take the place of being at the job in person. But video is a close second. Another thing we are seeing is not just the opportunities to work remotely but to gain work remotely. Companies are branching out into other states now because they can hire a remote person. We had an employee who moved to Texas during the pandemic, and we also hired an employee who lives in Washington state.”
Rethinking the four-year degree
Another trend changing the landscape of hiring is dropping the four-year college degree requirement for certain jobs. A recent Harvard Business School study shows that employers are rethinking the need for a degree in many middle-skill and some higher-skill roles. The study reveals that as many as 1.4 million jobs could open up within the next five years for the two-thirds of Americans without degrees.
“Locally, I’ve seen some entities change the education requirement,” says Hayden. “I recently received a controller position job description that didn’t require a degree, so some companies might be compromising on experience versus a degree.”
If the candidate lacks a four-year degree but their job experience is impressive, there’s room for negotiation. “We were working on a search for a human resources director, and the initial job description required a degree in HR,” says Buxbaum. “But we found a lot of great candidates who had lots of experience in HR, but their degree was in something else. Certainly, some of the higher-skill positions still require degrees, but the more companies are willing to look at other criteria when seeking candidates, the more diversity they will achieve within their company.”
“I don’t believe removing the degree requirement will be a big reset,” says Pappas. “It’s likely to be more of a trickle, not a tsunami. The fact is, we started seeing it before the pandemic, and we are seeing it even more now. It used to be that a college degree signaled emotional intelligence and critical thinking in the eyes of the potential employer, but life is very tough, and you can get all those skills in other ways.”
Make a Plan and Hire Smart
Leap Solutions Group, based in Santa Rosa, posts a periodic newsletter on its website that offers tips and strategies for employers to recruit employees. In its recent post “Missing Workers,” the first critical element the company suggests is for the employer to have a plan, not to simply advertise a job opportunity and wait for responses to roll in. Try some of the basic steps below to structure the components of your plan.
Treat candidates like customers by nurturing them.
Improve the candidate experience through proactive communication from start to finish.
Take time to brand your company. This is an excellent passive recruitment sourcing strategy. Use social media platforms––Facebook, LinkedIn, Instagram and Twitter––to post positions and engage with candidates. Passive recruitment targets potential candidates who aren’t necessarily looking for a new role, but they become enticed to apply based on your company website and social media branding.
Implement an employee referral program. These referrals can reduce your time to hire, improve your quality of hire and increase your retention rate.
Engage passive candidates, those who aren’t necessarily looking but can be found without posting traditional ads.
Include past applicants and former employees as potential candidates. Use the talent pipeline you worked hard to build the first time around.
Create compelling job postings that showcase dynamic summaries that get candidates excited about the role. Highlight your values and culture, which can be your most important assets.
Source laid-off workers. It’s important to gain an understanding of why these workers are hesitant about the future. Today’s candidates are focused on work/life balance, flexible working conditions, and mental wellness, and they desire transparency when it comes to potential salaries.
Focus on financial and physical wellness and company culture. Offer honesty and transparency throughout the hiring process. Candidates often turn down offers based on the company culture. They might initially take the offer, but continue to search for new opportunities.
Source: Leap Solutions
Tips for Getting Results
Whether you’re an employer or a potential employee, everyone can use a few tips to make the job recruitment or job search a better experience that gets results.
For job candidates:
Develop a partnership with a staffing recruiter before you even need it, says Chandra Pappas, COO of Nelson Connects. “Even though you may not be interested in looking or getting back into the workforce, it may be worth it to establish a partnership with a recruitment firm.”
Get to know the firm and thoroughly check it out. “Is their specialty aligned with your specialty?” asks Pappas.
Be visible and always network. “I tell people who may be thinking of looking for a job to get active on LinkedIn,” she adds. “If a recruiter calls you out of the blue, they have a specific need, and you want to keep them as a contact. They are career coaches, so be open with them. They can negotiate salary and help you navigate through a big challenge, such as a career change.”
For employers seeking candidates:
Knowing what you need before searching for candidates is crucial. “It’s extremely important for companies to be very detailed about the type of people they are looking for,” explains Ryan Buxbaum, president of Next One Staffing.
Know how to market to job candidates. “You have to position your company. State what makes your company different and why you want them to work for you.”
Choose a recruiting firm that is candid about how their pricing model works. “For instance, at Next One we set our pricing at the beginning of the search and we don’t change it.”
Kitchen Table Offices
When people first began working from home during the pandemic, most were not equipped with the best furniture for their ergonomic health, sitting at kitchen tables in uncomfortable chairs. Employers thought the remote work would last only a few weeks, but as the months dragged on there were concerns that their employees could end up with medical issues from using chairs not designed for performing hours of office work every day.
“Myself and some of my colleagues wondered if there might be a surge in workers’ compensation claims related to working remotely, but there’s been no uptick that I’ve seen,” says Chuck McPherson of Leap Solutions Group.
“I’ve heard of some people developing hip problems and knee problems [from months of remote work], but I don’t know of anyone who filed a workers’ comp claim as a result,” adds Rosanna Hayden of Artizen, Inc. “I believe many employees felt it wouldn’t be appropriate to file a claim because they had the privilege of working from home, which they did not have previously, and had the choice of work furniture, equipment and habits.”
