How Will Low Unemployment Impact Your Business?

The economy has been booming for some time and unemployment has been at historically low levels. That’s great news for individuals, but it does have a noticeable impact on business. Here’s what you need to know about low unemployment and what you should do to ensure you can continue to build a productive and profitable team while the talent market is tight.

It Becomes Difficult to Hire

Low unemployment means the most talented people in the business are currently working – and are likely satisfied with where they are. It becomes increasingly difficult to attract the right caliber of applicants and time-to-hire ticks upward significantly. Low unemployment has also led to “ghosting,” the phenomenon of candidates accepting a job, and then not showing up or disappearing after a day or two, putting employers at a distinct disadvantage.

Productivity Can Suffer

When we think of a booming economy and low unemployment rates, it’s easy to assume that productivity must be off the charts. However, this is not the case. When unemployment is low, many employers have to settle for candidates who lack a few technical or soft skills. These employees reduce productivity and create an output gap, which reduces overall productivity for the organization.

Stress Can Increase

If everyone is working at great jobs, what’s to be stressed about? If employers have to hire less talented candidates, or if they can’t fill open jobs, stress mounts on the existing team. During low unemployment, it is not uncommon for great employees to feel overworked and overwhelmed – feelings that can ultimately lead to turnover.

What Can Your Business Do?

It’s not all doom and gloom for business, but it is important to recognize the reality of the situation. Low unemployment does lead to challenges for employers and it is necessary to develop new strategies for dealing with those challenges.

  • Focus on stress reduction: You can ease stress on your team by looking for ways to help them achieve better balance.
  • Invest in great tools: Now is a great time to look at updating software and tools to provide employees with as much automation as possible. By reducing tedious and redundant tasks and giving them state-of-the-art tech, it will help boost productivity.
  • Focus on passive recruiting: Reactionary, transactional recruiting is not effective during periods of low unemployment. It is necessary to develop an effective passive recruitment strategies to forge relationships with talented pros who would make a change for the right opportunity.

Is Low Unemployment Impacting Your Business

If you are looking for top sales and marketing talent for your ag business and you want to connect with top passive candidates, contact the expert recruiters at Morris Bixby today. Our process is designed to help you improve productivity, increase long-term retention and boost your bottom line.

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