Why Showing Gratitude to Your Employees Can Lead to Higher Productivity

Most employees cite their income, work environment, and company culture as reasons why they enjoy their roles. However, how they feel about their positions matters as well.

Employees feel good when their employers appreciate them. These employees often share their positive emotions with colleagues and coworkers. The cycle of smiles, generosity, and random acts of kindness impacts others in the organization. This leads to greater feelings of employee appreciation.

As a manager, you influence how your employees feel when they are at work. This is why you should be giving praise for employee achievements.

Providing autonomy and constructive feedback shows your employees they are valued and respected. This promotes engagement, productivity, and retention.

Discover how showing gratitude for your employees can increase productivity and how you can attain this objective.

Attractive Company Culture

Employees who feel appreciated often express gratitude for their colleagues and coworkers. This promotes feelings of appreciation throughout the organization. Companies that emphasize employee appreciation have an attractive culture. This encourages job seekers to apply to the organization.

Increased Employee Engagement

Employees who feel appreciated typically have high job satisfaction. They are committed to performing their best and reaching business goals. This results in strong customer satisfaction and revenue for a healthy bottom line.

Elevated Employee Performance

Expressing gratitude to your employees shows you appreciate their contributions and results. This creates a source of pride in their work. Employees who are proud of their achievements typically put in their best effort.

Stronger Employee Retention

Expressing gratitude to your employees shows they are valued and respected members of your team. This encourages your employees to perform their best. Employees who enjoy their roles are likely to remain with your organization long-term. This reduces hiring costs.

Methods to Express Employee Appreciation

  • Publicly give thanks for each employee’s specific contributions, results, and impacts on the organization.
  • Provide a donation in the employee’s name to a charity they care about.
  • Create a reward system that provides points to redeem for a gift card, remote work day, vacation day, or other awards.
  • Provide a bonus, pay increase, or promotion when appropriate.
  • Publicly give thanks for each employee’s specific contributions, results, and impacts on the organization.

Frequency of Employee Appreciation

A survey by Authentic Recognition found the following:

  • 2% Received Daily recognition
  • 11% Received Weekly recognition
  • 20% Received Quarterly recognition
  • 17% Received Annual recognition
  • 29% Received No recognition of any kind.

Source: https://authenticrecognition.com/how-frequently-should-you-give-recognition/

Want to Increase Your Team’s Productivity?

Expressing gratitude to your employees helps them feel valued and respected. This encourages your employees to remain engaged, productive, and loyal to your organization.

Many HR managers and People leaders follow the R.I.S.E. method when implementing their recognition program. This concept highlights how employee appreciation should be regular, immediate, specific, and encouraging.

If you’re looking for other ideas to express employee appreciation, or you need to add employees to your team, include Casey Accounting & Finance Resources in your hiring process. Learn more today.

 

Up to 67% of US Employees Could Be Quiet Quitting. How They Impact Your Business?

Millions of employees are putting in minimal effort to keep their jobs. This mindset of “quiet quitting” is becoming more prevalent than ever before. It also is impacting businesses across the United States.

Source: https://teambuilding.com/blog/quiet-quitting-statistics

What Motivates Quiet Quitters?

Quiet quitters typically blame burnout for their lack of motivation to perform better. For instance, layoffs and staffing shortages often result in the remaining employees taking on more of the workload. However, most are not being compensated accordingly.

Many managers expect the same productivity levels with the increased workloads. These unreasonable expectations cause many employees to feel unappreciated.

As a result, quiet quitters are losing patience with their employers leading these employees to prioritize their personal lives over their professional responsibilities.

Why Are Many Remote Employees Quiet Quitters?

Remote employees often have an easier time not going above and beyond in their roles. Many of these employees feel less connected to and involved with their teams.

A lack of clear work hours encourages many remote employees to be quiet quitters. Not understanding how much should be accomplished each day increases stress. Ongoing exposure to elevated stress levels typically leads to burnout.

How Do Quiet Quitters Impact Companies?

Employees who do not remain engaged in their work and perform their best decrease productivity. This lowers employee morale and here’s why.

Better-performing employees often feel the need to pick up the slack caused by quiet quitters. This typically leads to frustration and resentment. These high-performing employees often end up leaving for other opportunities. As a result, turnover and hiring costs increase.

What Can Managers Do to Motivate Quiet Quitters?

Managers must understand what motivates each of their employees. Examples include verbal recognition, stretch assignments, and additional paid time off. Rewarding employees in the manner they desire promotes engagement and productivity.

Talking with each employee in one-on-one meetings, on a regular basis, helps uncover how they feel about their jobs. Managers can discuss each employee’s pain points and collaborate to find solutions. Making changes encourages employee engagement and productivity.

Providing constructive feedback encourages employees to improve their performance. Sharing what an employee did well, and specific steps to improve can promote desirable results.

Remaining empathetic during employee conversations is imperative. Many employees are facing personal challenges that are impacting their work. Providing support through increased work-life balance, access to therapy, or career advancement opportunities encourages employee engagement and productivity.

Need to Add Professionals to Your Team?

Quiet quitters put in minimal effort to meet their job requirements. This causes other employees to pick up the slack. When these better-performing employees become frustrated and resentful, many find opportunities elsewhere. As a result, turnover and hiring costs increase.

Managers should use customized tactics to help their employees stay engaged in their work. Managers also can talk privately with employees who are not performing their best to uncover the reasons, resolve the issues, and provide support.

For help adding professionals to your team, partner with Casey Accounting & Finance Resources. Find out more today.

 

How Will the Economic Downturn Affect Hiring?

Are you laying off or hoarding employees? Implementing hiring freezes? Considering salary transparency practices to fill critical positions?

Consider salary transparency as a recruiting strategy? Are we nuts? There’s a method to our madness and we’ll explain more below. As we continue to watch the economy and inflation, we’re also noticing the labor market slowing down – employers are adding fewer jobs, hesitant about hiring if we fall into a recession. On the other hand, employers are also hesitant to lay off employees as would traditionally happen with an economic downturn. Why? Because it continues to be difficult to fill already open positions. Employers are concerned that if they let people go, it may be twice as hard to fill the positions again. Confusing? That’s an understatement.
Overall, the job market is still strong. HR and staffing industry leaders will tell you that this has been the weirdest time in recruiting, and it doesn’t appear to be ending any time soon.

Labor Hoarding

With inflation still climbing, there are signs that companies may be “hoarding” employees. A recent report from Employ, Inc. suggested that some companies may be “labor hoarding” – choosing to keep workers rather than laying them off, hoping to save time and money overall. The report states that 52% of recruiters surveyed said their organizations were retaining employees, even those who might be underperforming or lacked a fit with the company culture. John G. Fernald, a senior research adviser at the Federal Reserve Bank of San Francisco, said that employers would be especially hesitant to lay off workers who would be difficult to rehire once the economy recovers from a downturn, such as those with specialized skills or higher levels of education. In an article published by Vox, economists say there are several reasons employers may be less likely to lay off workers if it is short-lived:
  • Dealing with labor shortages and finding it difficult to hire people.
  • It’s costly to offboard employees.
  • It’s costly to onboard and train workers.
According to Aaron Sojourner, a labor economist and senior researcher at W.E. Upjohn Institute for Employment Research, “You can’t count on a long line of job applicants to just show up whenever you post an opening. I think employers hadn’t felt that so acutely in a long time.” Diane Swonk, the chief economist at KPMG notes that companies are still understaffed. “Even as you scale back, you’re still understaffed, so you’re not going to be firing as many as you would have. There’s also a sense that, if you work so hard to get workers, you want to retain the workers you have.” Fernald also suggests that employers should be especially hesitant to let workers go who would be difficult to rehire. “If you lay off people with valuable skills, well, you’re not going to be able to recover production when demand picks up again,” he said. While layoffs will still happen, Allie Kelly, the chief marketing officer of Employ, said there has been a “clear, growing trend of more companies implementing hiring freezes, although they still largely aren’t laying off workers yet.”

Is There Hope to Fill Critical Open Positions?

Yes, there is. There has been plenty of talk about re-examining hiring processes, modernizing benefits to include things like mental health resources and caregiving leave, and more flexibility in work hours, to name a few. Would salary transparency help? More recently, we’re seeing articles about salary transparency in job postings. Once a taboo subject, research done by Adzuna, a search engine provider, reveals that an increasing number of job seekers want to know the salary attached to the job before they apply for it. 54% of jobseekers turned down a job offer when they finally learned the salary. So, what’s the big deal? Only 3% of U.S. job ads include a salary. And why wouldn’t you want to reveal salary? With more than half of jobseekers turning down job offers, Adzuna calculates that represents about 480 million hours of wasted time on vetting candidates, interviews, and negotiations. All for naught. Positions go unfilled, and the process of recruiting and interviewing starts all over again. Adzuna’s survey respondents also delivered this information:
  • 28% of people feel no salary or a lack of salary clarity on job ads is their biggest frustration when looking for a job.
  • 33% of job seekers would not attend a job interview before knowing the salary the employer is willing to offer.
  • 86% of U.S. employees would be open for their colleagues to know how much they earn
  • 73% think employers making salaries more transparent would make the workplace more fair.
So, is there a downside? Again, yes there is. But only if you ignore current employees’ salaries and needs. According to Harvard Business Review (HBR), there are consequences of salary transparency – fallout with disgruntled employees whose pay is not equal to a new colleague. But eventually, the consequences go away after pay equities are established therefore establishing more employer/employee trust, fairness, job satisfaction, and found to boost individual task performance by taking a more holistic approach to reward-related human resource practices. More information can be found here: https://hbr.org/2022/08/research-the-unintended-consequences-of-pay-transparency How can we help? Casey Accounting and Finance Resources is here for all your sourcing and outsourcing needs. If you’re struggling with your recruiting strategies, call us today!

How to Motivate Your Employees to Finish Strong in Q4

According to Gallup’s State of the Global Workplace: 2022 Report, approximately 65% of employees are not fully engaged in their work. This percentage likely increases during the holiday season.

Maintaining focus during Q4 can be difficult for employees. Most are thinking about their holiday plans rather than their work tasks.

Fortunately, there are steps you can take to motivate your employees to finish the year strong. These ideas can help.

Follow these guidelines to motivate your accounting and finance team to finish strong in Q4.

Revisit Goals

Review which goals were achieved during the year and which remain. Then, clarify the goals your employees should put in additional effort to attain. Include how the goals increase company success for the current year. This sets up a strong beginning to the new year.

Offer Incentives

Provide incentives to your employees who reach their goals for Q4. Examples include gift cards, bonuses, and additional paid time off in the new year. These incentives encourage your team to go above and beyond to increase their achievements for the year.

Encourage Autonomy

Let your employees work as independently as possible. This shows you trust, value, and respect them.

Since your team members are well-trained, they understand what to do and when to do it. Provide the necessary resources and be available for questions, then let your team work independently.

Recognize Achievements

Thank your employees for their contributions and results. Include the goals your team members reached, the steps taken to attain the goals, and the impact on the organization. This increases employee engagement and performance.

Lead by Example

Model the behavior you want to see from your employees. Examples include meeting milestones, communicating status updates and challenges, and asking for assistance. Your team is likely to follow your example as their leader.

Need Help Finishing Q4 Strong?

Revisiting goals lets your employees know what to work on during Q4. Offering incentives, encouraging autonomy, and recognizing achievements show you trust, value, and respect your team.

If you need temporary team members to help finish Q4 strong, talk with Casey Accounting & Finance Resources. Learn more today.

 

Becoming a Better Finance Manager: What to Do and What Not to Do

Everyone has room for improvement at work. This includes your role as a finance manager.

Becoming a better finance manager elevates your team’s performance. Your employees likely will stay engaged longer, perform better, and remain with your organization longer.

As a result, you must do what you can to become a better finance manager. The following tips can help.

Becoming a Better Finance Manager

Do: Remain Accessible

Make yourself available to your employees. Encourage them to talk with you about their needs and concerns.

Being accessible shows you value and respect your team. It also improves employee engagement, productivity, and morale.

Don’t: Micromanage

Your role is not to perform your employees’ work. This means you do not need to hover while your team members complete their tasks.

Keep in mind you hired the best talent and trust them to effectively complete their work. You are there to provide guidance, supervision, and mentorship. This includes giving your team the necessary resources, letting them work, and being available for questions and support.

Do: Provide Feedback

Regularly give each employee constructive feedback. Include what they are doing well, what they can do better, and specific ways they can improve.

Constructive feedback builds trust and respect among your employees. It also improves employee engagement, performance, and retention.

Don’t: Shame Your Employees

Publicly embarrassing your employees does not establish your authority. Rather, it undermines your credibility and turns your team against you.

Instead, privately suggest methods to improve an employee’s performance. Use the discussion to empower your team member with specific steps to more effectively perform their work.

Do: Celebrate Accomplishments

Acknowledge when your employees reach a target, finish a project, or attain a goal. Include what each team member accomplished, the steps they took, and their impact on the organization.

You may want to send your employee a congratulatory email or take your team to lunch. Also, let other managers, supervisors, and leaders know of your employee’s or team’s success. Plus, provide a bonus, raise, or promotion when appropriate.

Celebrating employee accomplishments encourages your team to repeat the behaviors that led to the results. This elevates employee engagement, performance, and job satisfaction.

Don’t: Ignore Your Employees’ Skill Development

Employee skill development is imperative for career progression. Not having opportunities for professional development means your team members cannot move up within the organization. Lack of advancement encourages your employees to look for jobs elsewhere.

Instead, delegate tasks to your employees to promote their skill development. Also, offer stretch assignments, job shadowing, and cross-training opportunities. Plus, let your team members lead meetings and represent the company at industry events. These actions promote employee longevity with your company.

Effective Leadership Means Hiring the Best

Understanding what to do and what not to do as a finance manager makes you a more effective leader. The more your employees feel valued and respected, the longer they will stay engaged, perform their best, and remain with your organization.

Free up the time needed to manage your team by making Casey Accounting & Finance Resources part of your recruiting process. Get started today.

Is the Workforce Shrinking Before Our Eyes?

In the second part of this two-part series, we share research from Emsi, the leading provider of labor market data, on the vanishing workforce.

In the first part of this two-part series, we shared insights from the National Bureau of Economic Research (NBER) on why the economic and labor numbers are unfamiliar with the ongoing talent shortage. You can find that article here. 

If you are in HR, a hiring manager, or running a business, you are not alone in your struggles to find workers. Wage inflation, the persistence of the Covid-19 pandemic, and workplace fatigue are all contributing to the challenge of hiring and retaining employees. In the past, when talent acquisition created anxiety among recruiters, we knew it was just a rough patch we’d all get through. Emsi’s research suggests that we’ve entered a “sansdemic” (without people), and the “hire more people” directive we’ve heard before isn’t going to help. Emsi reports the workforce is “vanishing” and will continue to disappear for decades to come. It’s not just a matter of a low labor force participation rate (LFPR), which measures people working or actively seeking work; it is a lack of available prime-age workers.

What’s Really Happening?

The last few years have been tumultuous with the pandemic. A February 2020 study by Manpower reported that a record 70% of US businesses reported a talent shortage – more than double the 32% who were having difficulty in 2015. With the Covid-19 shutdown, unemployment rates soared. In the past, when unemployment was high, talent was plentiful. But, in the frenzy of shutdowns and layoffs, and employees working from home, coupled with extended unemployment benefits and stimulus packages, workers didn’t jump back into the workforce pool. The result – millions of people not working and millions of open jobs unfilled. Esmi reports the LFPR has dropped to lows not seen since the recession of the mid-1970s.

Companies are trying to combat employee exoduses with strategies that include “internal mobility, reskilling and job redeployment…open to part-time workers, employees who live and work remotely, and workers who need training to perform…improving employee experiences with culture and wellbeing programs to make a company (and the job) more enjoyable and rewarding.”

But these tactics won’t be enough because there won’t be sufficient numbers of prime-age workers, and Covid-19 isn’t to blame. Emsi notes that this is “history catching up to us. We’ve been approaching this cliff for decades,” and there are a growing group of researchers and writers who are noticing this same trend.

In brief, Esmi reports that “there aren’t enough millennials and GenZers to fill baby boomers’ shoes”:

  • The mass exodus of boomers (workforce past)…The largest generation in US history remains a powerful cohort of key workers that still hold millions of roles. Their sudden departure from the labor force will gut the economy of crucial positions and decades of experience that will be hard to fill en masse.
  • Record-low labor force participation rate (LFPR) of prime-age workers (workforce present)…Thousands voluntarily opted out of looking for work. The children and grandchildren of baby boomers are not replacing the boomers who leave the workforce.
  • The lowest birth rates in US history (workforce future)…The national birth rate, already in decline, hit a 35-year low in 2019, and the relative size of the working-age population has been shrinking since 2008.

Where did the Prime-Age Workforce Go?

It might be easy to understand that, according to Emsi, 2.4 million women left the workforce from February 2020 to February 2021. Many stayed at home as their children attended school remotely. But Emsi tells us that this fact was overshadowed by another mass exodus – men have been disappearing from the workforce since the 1980s. Here are some additional takeaways from what Esmi is calling an “erosion of the prime-age male workforce:”

  • The prime-age male workforce (ages 25-54) plunged from 94% in 1980 to 89% in 2019. That five percentage-point drop represents over three million missing workers.
  • Millennials are expected to inherit an estimated $68 trillion from their boomer parents by 2030, making them the new, wealthiest generation in history…making millennials less motivated to seek careers of their own.
  • The opioid epidemic is a major culprit in siphoning prime-age men off the labor force.
  • The number of prime-age men willingly opting for a part-time job jumped from six million to nearly eight million in 2019.

Valuing What You Have

With the impending shortfalls, both near-term and in future decades, Emsi tells us that:

  • Education institutions and businesses will desperately compete for recruits who simply don’t exist.
  • The US stands to lose $162 billion annually due to talent shortages.

We need people. We won’t be able to “technology” ourselves out of this jam but recruiting and retention strategies can help slow the impending worker drought.

Conclusion

Emsi summarizes it by saying – “The sansdemic is going to make a tough situation tougher still. Fewer people means fewer new ideas. Fewer students. Fewer people in research and innovation. Fewer skills in the job market. Fewer employees. Fewer products and fewer goods. Fewer opportunities for growth.” Every person is going to be of value and will need to feel valued.

If you would like to receive a copy of Emsi’s research, email us at info@caseyresources.com. Let us help you develop effective retention strategies.

Prioritizing Mental Health in the Workplace

Many people still are dealing with the psychological and emotional effects of the coronavirus pandemic. Add to this discouraging news about the economy and other world issues, employees are experiencing instability in significant areas of their professional and personal lives like never before.

The Conference Board conducted a 2022 mental health survey of over 1,100 workers. Fifty percent of the respondents reported deteriorating mental health since the coronavirus pandemic began. Only 38% of the workers felt their manager adequately addressed their mental health concerns. Merely 29% of respondents whose companies offered mental health support found the resources helpful.

In response to what employers can do to help, 82% of the workers mentioned offering managers training on how to address mental health concerns. Sixty-one percent of respondents said increased manager trust would improve their mental health.

As a result, managers must actively listen to and provide support for their employees for their teams to succeed. This involves managers advocating for their employees’ needs to create caring, empathetic work cultures.

Follow these guidelines to prioritize mental health throughout your organization.

Embrace Change

Being comfortable with change positively impacts employee engagement, morale, and leadership styles. This includes modeling behavior that is open to and accepting of the transforming work world.

  • Regularly talk with your employees about what they need to feel safe at work and excel in their roles.
  • Determine how your team members feel about their workloads.
  • Talk about potential feelings of disengagement or burnout.
  • Find out how you can more effectively support your employees.
  • Ask for constructive feedback on how you handle situations.
  • Encourage your employees to ask for what they need.

Update Work Practices

Assess the policies, processes, and systems that no longer serve your employees. Examples include set work hours, limited leave policies, and not feeling comfortable providing or receiving feedback.

  • Educate your team on the resources available for mental health support.
  • Advocate for flexible work hours, more comprehensive leave policies, and psychological safety for employees to give and receive constructive feedback.
  • Actively seek new information on employee-first work cultures.
  • Use data to support your decisions.

Advocate for Mental Health Support

Talk with your employees about your own mental health issues. Include how you seek and receive support both inside and outside the organization.

  • Share your methods for coping with workplace stress.
  • Discuss your feelings of safety when sharing your thoughts with your team or manager.
  • Be honest about how you are feeling and when you are having a bad day.
  • Encourage your employees to take time for self-care throughout the day and at night.
  • Emphasize why building a culture of mental health support matters.
  • Demonstrate how everyone needs to be invested in building a culture of mental health support.

Need More Ideas?

Embracing change, updating your work practices, and advocating for mental health support are ways to prioritize mental wellness in your workplace. Modeling these behaviors helps reduce the risk of burnout. This increases employee engagement, productivity, and retention.

If you’d like other ideas, check out our previous blog from Mental Health Awareness Month in April.

We’re here to offer more support to your team. Make Casey Accounting & Finance Resources part of your talent acquisition process. Find out more today.

 

How to Get the Most Productivity Out of Your Meetings

A report by Harvard Business Review showed that more than 70% of the senior managers surveyed said most meetings are inefficient and unproductive. Among the top reasons were they keep managers from finishing their work, take away time for deep thinking, and result in lost opportunities to unite the team.

A study conducted by Beenote showed that 80% of the employees surveyed had problems in at least one stage of the meeting lifecycle. A lack of minute-keeping, participant preparation, team communication, follow-up tasks, and finishing on time made most meetings unproductive.

As a result, reducing the amount of time spent in meetings can increase employee satisfaction and productivity. You can use these tips to get started.

 

Follow these guidelines to increase productivity during meetings.

Limit the Number of Participants

Keep your meetings between seven and nine participants. Smaller numbers promote greater participation than larger numbers.

Invite only the necessary employees to participate. Smaller groups can make faster decisions and accomplish more than larger groups.

Advance the Agenda  

Send participants an agenda well before the meeting. Include the meeting goal and anticipated outcomes.

Limit the number of discussion topics. This helps the meeting stay on schedule and finish on time.

Begin on Time

Start the meeting at the designated time. Avoid recapping the discussion for latecomers. Do not let them in 15 minutes past the start time.

Beginning on time enforces the habit of employees showing up on time. This helps keep the meeting on track and within the timeframe.

Designate Action Items

Write down specific follow-up tasks according to the decisions made during the meeting. Include which employee is responsible for each task and what the deadline is.

These action items help prepare employees for the next meeting. They can more effectively report on their progress and results.

Enforce Time Limits

Keep each meeting at one hour or less. End the meeting on time, even if items are left on the agenda.

Enforcing meeting time limits lets employees more effectively plan their work day. It also encourages meeting planners to include only the necessary discussion topics.

Send Follow-Up Information

Let employees know whether you will send additional details about the topics discussed during the meeting. This encourages employees to participate more in the discussion and take fewer notes.

Ensure you send the information so employees can review it. This reinforces the discussion topics from the meeting.

 

Need to Hire HR Professionals?

Limiting the number of participants, advancing the agenda, and starting on time increase the productivity of meetings. Designating action items, finishing on time, and sending follow-up information increase the likelihood of implementing the decisions made during the meeting.

If you need to add HR professionals to your team, involve Arlington Resources in your hiring process. Find out more today.

 

When Will the Talent Shortage End? Maybe Never, and Here’s Why!

In the first part of this two-part series, we share insights from the National Bureau of Economic Research (NBER) on why the economic and labor numbers are unfamiliar with the ongoing talent shortage.

Even though there are plenty of predictors for employment and unemployment, most hiring managers rely on the unemployment rate to determine if their company will struggle to acquire talent. Since the pandemic began, the traditional indicators that usually moved together aren’t. Have they gone haywire? Are magnetic fields affecting the numbers? The answers are no and no.

How to Interpret the Conflicting Numbers

Alex Domash and Lawrence H. Summers, both from the Harvard Kennedy School of Government, have studied all the predictors and indicators and conclude, in their NBER working paper, that the “labor market tightness is likely to contribute significantly to inflationary [wage] pressure in the United States for some time to come.”

They note that, “Economists have typically turned to common slack measures, such as the unemployment rate or the job vacancy rate, to assess labor market tightness and predict nominal wage growth. Historically, measures of slack on the supply-side, like the unemployment rate and the prime-age (25-54) nonemployment rate[1], have moved in tandem with measures of slack on the demand-side, such as the job vacancy rate and the quits rate, meaning that different indicators gave broadly corroborative signals of labor market tightness. Since the beginning of the Covid-19 pandemic, however, the supply-side indicators and the demand-side indicators have diverged significantly. While the unemployment rate and prime-age nonemployment rate remain elevated at late-2017 levels and imply modest degrees of slack, the job vacancy rate and quits rate have surged to series highs[2] and imply a very tight labor market. The unemployment rate does not adequately capture all movements in the labor market that are significant for wage inflation.”

Federal Reserve Chairman Jerome Powell suggests looking at other indicators, like the prime-age employment- (25-54 years old) to-population ratio, to better understand the presumed lack of candidates every company is feeling. So, it’s not just a matter of how many people are employable, it’s a correlation between the population and those who want to work. More on this in a minute.

Does This Have Something to Do With Soaring Wages?

Quite simply, yes. Domash and Summers comment that, “A high vacancy rate signals a high demand for labor and puts upward pressure on wages as firms compete to attract workers. A high quit rate signals that workers are confident enough to leave their jobs to search for a better opportunity, and can put upward pressure on wages since job switchers drive up wages as they move up the job ladder.” Let’s see a show of hands from the hiring managers out there who can relate to this.

Domash and Summers note their research indicates that “estimated wage inflation in the fourth quarter of 2021 is the highest it’s been in the last 20 years.” They also “simulated wage growth in 2022 and 2023 under the assumption that the vacancy rate, the quits rate, and the inflation rate remain the same…nominal wage growth under these assumptions is projected to increase dramatically over the next two years, surpassing six percent wage inflation by 2023.”

Where are the Workers?

Understanding indicators and predictors is one thing, but we are all feeling the pain of finding workers. Here’s the reality. Domash and Summers outline six factors as to where the workers have gone, and chances are, they might never come back. Those factors are:

  • Shifts in demographic structures (population aging specifically) = 1.3 million workers;
  • Covid-19 health concerns = 1.5 million workers;
  • Immigration restrictions = 1.4 million workers;
  • Excess retirements = 1.3 million workers;
  • Reduced incentives to work = 1 million workers; and
  • Covid-19 vaccine mandates = 0.4 million workers.

At the same time, they “project demand-side indicators such as the vacancy to unemployment ratio to continue to be very high over the next year.”

Conclusion

Domash and Summers predict that “the majority of the employment shortfall will likely persist moving forward. Moreover, if employment were to increase due to an increase in labor force participation, it would be accompanied by increases in incomes, and therefore an increase in demand. We believe that labor markets will continue to be very tight unless there is a considerable slowdown in labor demands.” This all suggests that companies need to sharpen their talent acquisition strategies and stay on top of the numbers since the tight labor market is bound to continue for some time.

In the second part of this series, we’ll discuss the “demographic drought” associated with the labor force participation and how it may shrink the available labor pool going forward.

If you would like to receive a copy of Domash’s and Summer’s complete working paper, email us at info@caseyresources.com. Let us help you develop effective talent acquisition tactics.

 

[1] This is equivalent to one minus the prime-age employment-to-population ratio.

[2] As of December 2021, the BLS Job Openings and Labor Turnover Survey (JOLTS) reported a seasonally adjusted

job vacancy rate of 6.8% (a near-record high, and much higher than any vacancy rate before 2021) and a seasonally

adjusted quits rate of 2.9% (the second highest quits rate on record).

Interview Skills You Should Brush Up On to Succeed!

As companies move forward during The Great Resignation, they need to hire the right employees. This requires effective interview skills.

It takes a significant amount of time for a hiring manager and HR to discuss the job requirements, source and screen candidates, and conduct interviews. It also takes time to conduct background checks, finalize the candidate selections, and wait for candidates to accept offers and begin working.

As a result, hiring managers should participate in training now to refresh their interview skills. This helps build candidate pipelines for current and future hiring needs.

Discover some benefits of hiring managers brushing up on their interview skills and topics to discuss during training.

Advantages of Refreshing Interview Skills

Proving a refresher for hiring managers’ interview skills training lets them practice in a safe environment. Because these managers may not have conducted interviews for a significant time, a mini session would be advantageous.

Refresher training ensures hiring managers and HR are on the same page regarding interviewing. This increases success in hiring the best candidates.

Topics to Discuss When Refreshing Interview Skills

Intake meeting: Talk about the meeting between the hiring manager and HR to discuss the job requirements and sourcing strategy. For instance, emphasize the importance of the candidate experience throughout the hiring process. Also, discuss specific ways to show commitment to diversity and inclusion so candidates feel they are welcome and can be themselves at work.

Discussing the intake meeting ensures the hiring manager and HR are following the same policies and procedures for interviewing. This speeds up the hiring process, increasing the likelihood of hiring top candidates.

Interview questions: Emphasize the importance of asking effective, compliant behavioral interview questions. These questions provide insight into a candidate’s experience.

You may want to use the STAR method to create interview questions. This involves asking a candidate about a situation they encountered, the task they needed to accomplish, the action they took, and the results they attained.

Ensure the hiring manager asks follow-up questions to gather enough detail for a complete picture of the situation, task, action, and result. This helps provide the necessary information to make a hiring decision.

Candidate selection: Remind hiring managers to look past their unconscious biases when choosing the best candidate. This can be accomplished through an online training program that may be included in your diversity, equity, and inclusion (DEI) efforts.

Need Help with Hiring?

Refreshing hiring managers’ interview skills ensures managers and HR are on the same page throughout the hiring process. Sharing details about the intake meeting, interview questions, and the candidate selection process increases the likelihood of hiring the most qualified candidates.

For additional help with hiring, partner with Casey Accounting & Finance Resources. Get started today.