Nobody likes hiring delays even though they remain a big part of the hiring process. One of the reasons that it takes employers so long to fill their open positions is the “skills gap” with available workers lacking the specific skills needed. This is true within certain industries and for a number of positions. So while a skills shortage may be impacting certain sectors, it appears that 3 other factors are also at play.
#1—Economic uncertainty
Sure, the Great Recession seems like a distant memory and the Stock Market has broken through all-time highs lately. However, there is still plenty of turbulence in the economy. In fact, there are some economic analysts who believe that the Stock Market is overvalued and is primed for a drop. After all, this is the second-longest bull market in the history of the United States. If there’s one thing for sure, every bull market in this country has ended . . . eventually.
#2—Increased regulations
Employment legislation in general has increased on every level, not just the federal level. Take, for example, paid sick leave (PSL) laws. These laws are being passed on the state and local level, and they all have their own provisions. Employers have to figure out how/if to comply with any PSL law that may exist in the areas where they have employees. Besides the costs of providing the leave, the administration and tracking can be a nightmare. The additional cost and administrative burden each employee represents as a result of these employment laws is a factor employers consider anytime they think about adding staff.
#3—Insistence on the “perfect” candidate
Employers want to make the right hire but sometimes this desire leads to long delays in hiring. Usually, it is much more productive to move quickly the hiring process and select the ‘best’ candidate available for a prompt hire. The loss of revenue from a key position going unfilled far outweighs the problems that ‘may’ exist from a ‘good’ hire -- even if not the ‘perfect’ candidate. In other words, waiting for the proverbial “purple squirrel” is usually not a good hiring practice. Candidates are being disqualified simply because they don’t have 100% of the qualifications the company is seeking. They often have to endure several interviews before being told that the employer has decided to hold off on making a decision.
The anecdote for hiring delays
Hiring delays can cause a lot of undue stress. Fortunately, there is a way to help clients make decisions more quickly by hiring candidates on a contract basis. In other words, contract staffing services is a viable solution.
Contract staffing solves a number of the factors mentioned above. Employers concerned about the cost and administrative burden tied to employees can instead utilize contractors. These contractors are the legal employees of a third party acting as the ‘employer of record’. In this situation, the third party is responsible for legal compliance. To combat economic uncertainty, they can use the person on a contract basis and convert them to a direct hire when they feel more secure.
In the absence of the “purple squirrel,” contract-to-direct arrangements are a great option. They allow the client to evaluate the worker’s performance, work ethic, and fit with the corporate culture on the job. They can then decide whether or not to extend the direct hire offer to the candidate. Some clients are evaluating most of their new hires in this manner.
Excerpts thanks to: Debbie Fledderjohann and CONTRACT STAFFING; | THE PINNACLE