Why It’s Tough to Fill Good Positions
May 10th, 2021
We’re all seeing it. The economy is improving, and companies are hiring but positions aren’t getting filled. Good candidates are not seeking employment. Even those that do not have a job currently. Why is that?
Well, as our Director of Sales, Ken Kleinschmidt says, it’s “a perfect storm, a trifecta of financial stimulus” that may be helping to keep people out of the job market. This perfect storm has created an environment where some potential candidates make more money by staying at home than they do by going back to work. What makes up this trifecta?
- State unemployment benefits + $300 in federal employment – the average state unemployment benefit is $320 per week. That’s $620 per week which is the equivalent to making $15.50 an hour.
- COVID Stimulus checks – The amount of the stimulus check varies by income and marital status. But if an individual makes less than $75,000 per year, over the course of three stimulus payments, the single individual was given up to $3,200.
- 2021 Child Tax Credits – The 2021 child tax credit has been increased from $2,000 to $3,000 - $3,600 depending on the age of the child and will now be available for taxpayers to receive in monthly increments starting mid-2021. This means taxpayers do not have to wait until they file their 2021 return to receive the benefits. Monthly checks for children will be around $300 per child and are expected to start going out in July.
As you can see there are a lot of financial stimulus that may be contributing to people choosing not to go back to work.
There are some strategies that, as an employer, you can do to help counter this storm.
- Pay competitive wages – increase your minimum to a rate that is competitive with what they could receive on unemployment
- Offer benefits and other perks – offer all your full-time employees health benefits, retirement or even corporate discounts on goods and services like child day-care
- Encourage a healthy work/life balance – if you’re able to, make remote work a possibility for those that cannot send their children to school or do not feel comfortable working in an office environment
Fortunately, working with a partner like EverStaff, can make finding these candidates easier. We have the expertise and resources to find candidates that may not already be looking for a job. We also offer all our client customizable payment solutions to fit your needs. Want to learn more? Contact us today.