Let’s face facts — Wisconsin is enjoying some pretty ridiculously low unemployment numbers right now, and that’s coming from a state that typically trends better than the national average in unemployment.
According to the Wisconsin Department of Workforce Development and the U.S. Bureau of Labor Statistics, Wisconsin’s seasonally adjusted unemployment rate for May was 3.1%, down from 3.2% in April and down from 4.1% in May 2016. In comparison, the U.S. seasonally adjusted unemployment rate for May was 4.3%, down from 4.4% in April and down from 4.7% in May 2016.
Unemployment is even lower in Dane County — 2.2% in May, tied for lowest in the state.
That’s wonderful news, until you realize many companies have more open roles than ever but are struggling to fill them. BLS data shows there were 6 million job openings nationwide at the end of April, the highest since the government started tracking in 2000. However, hires were down to 5.1 million during April, and separations — quits, layoffs, and discharges — were down to 5 million.
One of the downsides of low unemployment — as much as that sounds counterintuitive — is that it creates a shortage of qualified, available workers to fill positions when they open up. The reason the target range for unemployment is considered 5% is because it’s low enough that the majority of workers are employed but still just high enough that it allows for fluidity in the workforce. In other words, one worker can drop out, ideally to pursue an even better opportunity, and there will be a small supply of available workers who are ready and capable to step in and fill the open position.
So, are employers moving too slowly, being too picky, or is there a legitimate skills mismatch that’s only getting worse?
Sasha Truckenbrod, branch manager for staffing firm Robert Half and Accountemps in Madison, says oftentimes it can be all of the above.
“Employers don’t want to make costly hiring mistakes, so they may be taking their time to ensure they find the right person for the job,” Truckenbrod notes. “However, the longer a job stays open, the higher the risk of lost productivity. The difficulty in finding talented candidates often lies in a mismatch of required skills, especially for certain roles. Here in Madison, some of those positions we see in high demand but low supply include human resources, payroll, and customer service roles. With a particularly low 2.2% unemployment rate, Madison job seekers may also feel they can be pickier with job offers, which could be contributing to slowing number of hires.”
Hiring managers also have other business priorities competing for their time, explains Truckenbrod. They typically aren’t able to devote time and resources solely to the hiring process.
“Time-to-hire is just one challenge facing businesses today. Companies are experiencing difficulty finding skilled candidates for in-demand positions and facing increased competition for top performers, who may have multiple employment offers to choose from.”
Still, the No. 1 mistake employers make in the hiring process is taking too long to make hiring decisions, says Truckenbrod. “Employers need to move fast to secure the best available talent — and it’s important to recognize when they may be waiting too long for the perfect candidate who may not exist. Top performers are in demand. When strong applicants are identified, don’t procrastinate. By moving too slowly, employers risk losing their first choice — and extending the hiring process.”
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According to Ross McCammon in a 2016 article from Entrepreneur magazine, there are some things the majority of interviewees want out of the interview process — besides a job, obviously — that if the hiring manager does right can yield a new hire quickly and painlessly.
Have a conversation, not an interview. That might mean going so far as sitting next to the interviewee rather than across a desk of conference table, but actually sitting as equals with a prospective employee can really start things off on the right foot.
Don’t fire your questions out of a machine gun. After the candidate finishes answering a question, take a moment and pause before asking the next question. A wonderful thing often happens in that brief silence — the candidate offers a more candid and honest answer than the highly practiced and polished first response he or she gave.
Don’t waste time on throwaway questions. Almost every candidate is asked “Where do you see yourself in five years?” And almost every candidate gives the same canned answer about wanting to grow with the company for many years to come. If there’s almost no way of knowing if the answer you’re getting is remotely genuine, get rid of the question.
Give interviewees feedback. If they take a test, tell them how they did. If you ask them to review the company’s latest product or campaign, let them know if they’re on the right track — and maybe saw something you didn’t. You wouldn’t like it if you asked an interviewee a question and he or she just gave you silence. That’s how the interviewee feels when they don’t get feedback.
Similarly, don’t string interviewees along. Yes, Tom Petty, the waiting really is the hardest part. You took the time to interview a candidate, so do them a favor and take a little extra time to keep them in the loop. If you said you’d make a decision within a week and you find you need more time, then communicate that. If you’ve decided a candidate isn’t the right fit, just let them know. Rejection is hard, but worse than that is waiting to get rejected — or waiting to hear nothing at all. Ghosting isn’t cool in dating, and it should be even less acceptable in interviewing.
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