Companies are not hiring to fill new jobs these days. Instead, they’re mostly looking to backfill existing positions that people have vacated.

    There is a persistent myth in the press and, as a result, in popular opinion, that the number of new jobs is growing so fast that it has become difficult for employers to hire. The latest use of the phrase “skill gap” is that there is just no one for employers to hire.

    That is simply not true. Employers do face a big challenge in hiring, but it is not because of the number of new jobs.

    I recently noted that February had been a banner month for new jobs, revised now to 326,000. Yet the unemployment rate did not fall and indeed still hasn’t budged since November 2017. That had something to do with the fact that 800,000 new people entered the labor force that same month, a fact that did not make the news. There are also 600,000 to 700,000 new entrants to the labor market—aka school leavers—who are searching for a job and can’t find one in any given month. This doesn’t include the approximately 450,000 discouraged workers who want a job but have given up looking.

    New jobs still don’t outnumber those looking for jobs, but the real story is that job creation is just a drop in the hiring bucket, almost a rounding error. In January 2018, U.S. employers hired 5.6 million people. That is a ton of recruiting and hiring activity. How is that possible? Because at the same time, 5.4 million people left their jobs.

    Hiring in the U.S., therefore, is not about filling new jobs. That’s only about 3.5 percent of hiring. It is about backfilling existing jobs because people have left. Most of that backfilling is due to high voluntary turnover. The remainder is almost all layoffs, cutting workers here but adding them back over there.

    Employers aren’t very interested in hiring people without jobs, especially new entrants to the workforce who have no work experience. We know from prior research that there is considerable stigma against hiring workers who are currently unemployed, and we also know from employers that virtually all their hiring is aimed at experienced candidates.

    When there is a vacancy, therefore, employers try to fill it by hiring from other employers, often their competitors. That is why we can have employers complaining about the difficulty in hiring at the same time we have new entrants and others who cannot get hired. When employers succeed in hiring someone from another employer, that creates a vacancy at that other employer, who then in turn tries to fill it by hiring from their competitors, and so forth.

    A single vacancy can therefore set off a chain of hiring and quits, so even a small number of net new jobs in the economy can lead to enormous amounts of hiring and churning.

    Yes, I believe employers are having a hard time filling jobs. The reason for that is primarily because they have so many to fill, and unlike a generation ago (when hiring was focused on a small number of entry-level jobs for which it was relatively simple to understand the recruiting issues) hiring happens now up and down the organizational chart, spread out across virtually every job in an organization. The amount of resources and effort required to do all that hiring, especially if we try to do it well, is enormous.

    Why do organizations have so many jobs to fill? Because employers can’t keep their own workers. In the 1990s, when we had exactly the same situation, I used to tell managers to watch the labor market, and as soon as it started to tighten, go to your CEO and say, “Boss, we are going to have a retention problem.” Within a few months, you will look like a forecasting genius.

    Why can’t we keep our workers? Well, this is the challenge of retention. By the time the job market got tight during the economic expansion of the 1990s, the topic of retention was top-of-mind for HR. It’s not now. Everything is about hiring. If we said, “I can cut your hiring costs,” we’d be swamped with attention, but if we said, “I can improve your retention,” we’d get a “Ho-hum.”

    We can’t keep our employees because we stopped trying. We cut back on promotion from within. We don’t try very hard to fill vacancies from within. We don’t train people for new or better jobs, and people who want to advance must leave for opportunities elsewhere. In jobs that don’t have real advancement opportunities, such as front-line, customer-service jobs and, frankly, even some manufacturing jobs, we got rid of practices that retained people, such as higher pay with experience. There is nothing to keep someone in place if another employer offers a few cents more.

    Why aren’t we paying attention to retention? Because it’s easy to see the costs of training and of paying more for experience, and we haven’t done much to call out the costs of hiring for our bean counter colleagues. Instead, we’re spending all our time worrying about how to hire millennials, even though we don’t actually do anything about that.

    Peter Cappelli  is the George W. Taylor Professor of Management and director of the Center for Human Resources a The Wharton School of the University of Pennsylvania . His latest book is " Will College Pay Off? A Guide to the Most Important Financial Decision You'll Ever Make ."

    This article originally ran i Human Resource Executive Online .

    Why is there a hiring crisis?
    Immigration policies, child care needs and retirement are all contributing to the hiring crisis, experts say. 2021 has been called the year of “The Great Resignation,” since millions of Americans left their jobs. more
    Does Goldman hire CFA?
    38 Goldman Sachs Cfa Jobs in India. more
    Does Amazon hire diabetes?
    March 7, 2019. All active Amazon employees and their dependents are eligible to enroll in the Livongo program to help them better manage their diabetes. more
    Does Netflix hire remote?
    Despite the CEO's statements, and well past the period that vaccines have become available, Netflix continues to allow workers to work remotely due to ongoing concerns with COVID. more
    Does DoorDash hire everyone?
    We may receive a commission for referring you to them. DoorDash is a food delivery app in the US and Canada that allows anyone with a vehicle to become an on-demand delivery driver. more
    What countries hire mercenaries?
    Recent years have seen major mercenary activity in Yemen, Nigeria, Ukraine, Syria, and Iraq. Many of these for-profit warriors outclass local militaries, and a few can even stand up to America's most elite forces, as the battle in Syria shows. more
    Do banks hire MBA?
    Some of the most desirable businesses that MBA graduates aim for, fall in the banking and finance sector. Top investment firms like Morgan Stanley, JP Morgan, etc. and banks like HDFC, Bank of America, Wells & Fargo Co., etc. are popular choices among business graduates for a shining career. more
    Does Facebook hire MBAs?
    Numbers show Facebook looks for three times as many MBAs as Goldman Sachs. While hiring managers in Silicon Valley—and more specifically Facebook—are clearly looking for fresh MBA talent, recent grads are also excited to enter the tech sector. According to CNN, almost 10 percent of MBAs want to work for Facebook. more
    Does Amazon hire anybody?
    Even though Amazon has thousands of job positions available, it is a competitive company to land a job at. However, if you can pass the rounds of rigorous interviews and assessments, you will be able to reap the benefits of being an Amazon employee. more
    Do Google hire accountants?
    The Google is hiring for the post of Financial Accountants. Google accountants are a savvy bunch who handle the core accounting responsibilities at Google. You know your accounting principles and the full accounting process from end to end. more
    Does Amazon hire MBA?
    Amazon is a behemoth when it comes to MBA recruiting. The company is one of the biggest MBA employers, hiring around 1,000 MBAs each year. Amazon is especially active in Europe, recruiting MBAs from top-ranked European business schools like HEC Paris, LBS, INSEAD, and IESE. more

    Source: www.linkedin.com

    You may be interested in...

    Do Ragdoll cats teeth?

    Why are you not supposed to cut lettuce?

    What GPU is best for Ryzen 5 5600X?

    What is my MetaMask private key?

    Can I turn my PayPal money into cash?

    Can you calculate A1C from average blood sugar?

    Does Solana pay dividends?

    Which of the following is not a technique of financial statement analysis?

    How much do female WWE wrestlers make?

    What is in Chinese chili paste?

    Are ivory bills extinct?

    What can I use if I don't have a cast iron skillet for cornbread?

    What is difference between Bitcoin and crypto?

    Does ginger make you poop a lot?

    Why do you water cactus at night?

    About Privacy Contact
    ©2022 REPOKIT