The Great Resignation — Staffing for Success
Authored by Joey Desiderio
Hiring the right person is and always has been difficult. Between figuring out where to find talent, how to attract the right candidates to your business, and ultimately convincing a candidate to come work with you, recruiting is a highly involved and difficult process. According to Abe Eshkenazi, CEO of the Association for Supply Chain Management, “There was a talent gap before the pandemic; so it wasn’t like this [labor market] occurred because of COVID-19.”
Enter COVID and the talent gap is only widening. Recruiting and hiring is a different ballgame than it was even 18 months ago. Recent statistics from Axios state that between 25% and 40% of individuals are looking to make a career change, a movement that is being called “The Great Resignation.” Why is this? Well, many people put their job search on hold when the pandemic began, others are not happy about having to return to their office, and a large subset of individuals decided to completely change careers in the last year.
In addition to possibly losing existing workers, the shift in shopping trends from in-person retail to online services only exacerbates the need for great talent in the transportation and logistics space. Many companies are expanding and must hire the right people in the right places to meet their demand. Whether these are truck drivers, logistics coordinators, back office support, or other areas of the business, the need to hire great people is that much more important in 2021 and 2022.
When we see statistics that 25% – 40% of people are looking to quit their jobs, the first thought is, “Great! More talent will be available!” Unfortunately, while people may be looking for new jobs, these candidates are being more selective than ever, and companies are bending over backwards to hire them. Competition for candidates means that companies with better benefits, flexible work environments, or higher compensation will be the top choice for anyone seeking new employment.
Regardless of the reason as to why, the result of the drive for talent is leading to an increased demand for recruiting support. Posting an ad online may yield candidates, but are they the right candidates? Are you hiring the best person available or are you hiring the only person you can find? Staffing agencies know they are in demand and while a typical pre-COVID staffing agency fee was ~25% of a candidate’s base salary, increased demand is pushing these fees closer to 30% – 35%. Moreover, retention guarantees are shrinking from the industry average of 90 days to closer to 30-60 days. These numbers may even be less favorable for employers depending on the specific role and their location.
The best way to prepare for this is to retain the people you have and have a plan for when you need to hire. Meet with your team. Ask them how they are doing and how you can do better. Find out if they are being approached by other employers. Now might be the time that you conduct an in-depth compensation analysis to ensure that you haven’t fallen behind market trends. Furthermore, offering a flexible environment for people with families or other obligations will help keep employees happy. But no matter what you do, sometimes it is out of your control and someone will leave for reasons that have nothing to do with you or your business. When that time comes, CLA can help.
At CLA, our Talent Solutions/CLA Search Team works with transportation and logistics companies to hire driver recruiters, driver managers, logistics coordinators, freight brokers, or any other administrative type role (Accounting, Human Resources, etc). CLA Search utilizes a passive recruiting approach, ensuring that we identify and hire the best candidates possible on the market, not just those who apply. Finally, we offer competitive pricing, longer guarantees, and a unique perspective because of our industry knowledge and client relationships.
For any questions or comment about this blog, please contact Joey Desiderio at Joey.Desiderio@CLAConnect.com. Joey manages CLA’s Transportation/Logistics and Agribusiness Professional Search teams and has 8 years of passive recruitment experience on a national scale, hiring everything from Accountants to Sales Professionals (Brokers) to Human Resources and even Operations Management.
Brandon is a CPA and trusted advisor with providing accounting, assurance, tax, and consulting services to transportation & logistics industry companies and their owners. Brandon is also the Managing Principal of the Transportation & Logistics Industry Group at CLA.
Comments are closed.