July 10th, 2018
Thriving in a Tight Labor Market
The job market has become increasingly tight over the past several months. Unemployment continues to dip further below 4 percent. I have read several articles where the labor market is near or even at full employment.
In our industry specifically, the labor market has gotten very tight, from window installers to factory assemblers to really any other position we need to hire. To use that old saying, “It’s a good challenge to have.” But it does not change the fact that it is still a challenge that needs creative solutions.
I have discussed the labor market with many dealers around the country. One of the newer strategies I see being implemented is becoming more strategic in recruitment. Most companies did not employ a recruiter to get employees. Now, with the labor market getting so competitive, most companies either have a full-time recruiter or are sharing one with similar companies. The use of personality profiles is also being incorporated into the hiring process. The strategy here is, if there is going to be an investment on recruitment, the personality profile helps put the right person in the right job.
Another question that is being volleyed around is “When will the labor market stabilize?” With anything like this, there are cycles that we go through. However, my opinion is this. The labor market is going to be increasingly competitive and remain tight for the foreseeable future. Depending on the company, there will be different ways to combat this. Automation will become important and relied upon. Higher wages and more creative benefits will help in recruitment and retainment.
Finally, it will be interesting to see how the labor market shakes out. I have a feeling the landscape will change dramatically. And we will no longer be able to say “This is the way we always do it.” This phrase will be replaced by “This is the new way we do it!”