March 11, 2015
U.S. Market Tightening is relevant news to all as business owners, employees and active job seekers. The small business owners are not only having a hard time finding great talent but building good long-term business. “The survey of 716 small business owners found 53 percent reported hiring or trying to hire, up 5 percentage points, but 47 percent reported few or no qualified applicants for the positions they were trying to fill. Twenty-nine percent could not fill open positions, the highest level since April 2006.”
Consider the hiring models using online solutions that cast a wide net. The strategic resume constructionist stands a better chance against the experienced. Further companies are reluctant to pay for the experienced while seeking Millennials with less work capacity and tenacity but fit the pay scale requirements. Companies large and small must be willing to pay for experience that is packed considerably different than the models prescribe.
“About 14 percent cited the shortage of skilled labor as their top problem, the highest since September 2007.” “This is a clear signal that many small businesses are having a hard time finding qualified people for their job openings,” said Chris Christopher, an economist at IHS Global Insight in Lexington, Massachusetts.
The drive to have small businesses compete for labor is ridiculous. Google grabs Yahoo’s people and so on. The cycle continues under the grab and get solution. When companies can afford to offer great packages and wages or offer a position that are resume builders small businesses do not stand a chance. Sexy can demand attention and gain attraction. So when it is stated that, “In addition, many small businesses may need to increase their wage and salary offerings. This is further evidence that some labor market tightening is happening.” The result is small businesses have to be supported and become the new-sexy to compete. Further, small business has to compete with what I call the grey collar workforce– Government which now is good opportunity for pay and longevity. The “mechanical workforce” is on the rise made up of robots and tech. Peter Thiel, co-fonder of PayPal states robots will replace middle calls jobs. The cost is high but the they offer longevity and low maintenance but are free from vacations or illness. The “mechanical workforce” is another threat to small business. Small business cannot compete against the cost of acquisition in the short-or-long-term.
Moreover, small business cannot afford the R&D required to produce extended innovation to compete against the world stage. Consider research is cost that bears fruit as intellectual property and an intellectual asset.
“A separate report from the Labor Department showed job openings increased to 5 million in January, the highest reading in 14 years, from 4.9 million in December. With January’s report, the government revised the data back to 2010.” This is great news! The job market is opening but a gap exists. The economy must engage in the “Knowledge Economy” versus the Industrial Age. The Knowledge or Intellectual Age requires education and training to be key to support the jobs required. This is a radical period of change and shifting organizational development that is untapped. The drivers for gaining a workforce is to develop a process for gaining the knowledge needed through hire, outsource or partnerships. Maybe its time to visit an inclusive workforce to gain the intelligence needed.