With a steadily declining unemployment rate that's been south of 6 percent for several months now, the economy appears to be turning a corner, especially when the more than 60 consecutive months of private sector job growth is factored into the equation. Further proof that conditions are improving is the rate at which business owners are hiring. However, once workers are enticed to apply – whether through incentives like employee benefits or effective advertising – hiring managers are increasingly finding that the people being interviewed aren't the best fit for the job, newly released data suggests.
In February, job openings rose by 168,000 to a seasonally adjusted total of 5.1 million, according to data from the U.S. Department of Labor. That's the most recorded in a single month in more than a decade.
However, while recruitment activity was high, these endeavors didn't translate into hires. Reuters noted that 4.9 million people were appointed to new positions, keeping the hiring rate stable at 3.5 percent.
John Ryding, chief economist at RDQ Economics in New York, told the media agency that business owners seem to be having a hard time finding workers with the appropriate skill set.
"We interpret the combination of rising job openings and slower hiring as a potential sign of increased mismatch between the needs of employers and the skills of available workers," said Ryding.
Further evidence that business owners haven't found the ideal prototype for newly created or opening positions is the number of companies that expect to be hiring in the second quarter. Between April and June, roughly 1 in 4 companies with 50 or fewer workers expects to hire full-time staff, according to a separate survey from online job search engine CareerBuilder. That's up from 18 percent during the same three-month period in 2014.
The same is true for large companies. Among businesses with 500 employees or more, nearly 4 in 10 intend to add full-time workers to their staff in the second quarter, up from 32 percent versus year-ago levels.
In an effort to entice a greater number of workers to inquire about open positions – i.e. the theory being that the more choices companies have to choose from, the more likely it is that they'll find the right match – business owners may have to "sweeten the pot" by increasing compensation packages or employee benefits like health insurance. Reuters noted that wage growth has been fairly modest through the past several months, even though more companies seem to be hiring.
Personality mismatches common
Not only do business owners need to ensure that hires' skills match up with the job they'll be doing, but their social sensibilities have to harmonize with those of the staff. Nearly two-thirds of managers say they've hired someone who they eventually determined didn't blend with the work environment, according to a recent survey done by recruitment firm OfficeTeam.
"Employers often focus on ensuring a skills fit when recruiting, but a corporate culture fit is equally important and more challenging to gauge," said Robert Hosking, OfficeTeam executive director. "Both hiring managers and candidates can ask questions during the interview to check that their values align."
Human resources experts say that business owners can get a better idea of whether job seekers are a good fit with a good mix of close- and open-ended questions, as well as those that could be both. For example, asking about whether they like to mingle or go out with co-workers may trigger a simple yes or no reply, but they may also elaborate, explaining the venues in which they like to hang out with colleagues or under what circumstances.
