As business owners look back on the previous year – and look ahead to 2015 – a substantial number of companies intend to do more hiring, which should further improve the nation's unemployment rate.
In the first six months of 2015, entrepreneurs and hiring managers expect to add more professionals to their ranks, according to a new study performed by Dice Holdings. Specifically, 60 percent anticipate doing more recruitment activity, up from 56 percent when a similar poll was done in June and 55 percent in November of last year.
For the first time in more than six years, the nation's unemployment rate dropped below 6 percent this year, doing so in September, according to statistics from the Labor Department. As of October, the latest month for which data is available, the jobless rate was 5.8 percent.
Still, while hiring is expected to ramp up, finding the right person for specific positions has proven challenging, employers say. More than 40 percent of respondents in the survey said that open positions are staying that way a good deal longer this year compared to last, largely due to their inability to find people with the proper qualifications. It may also have something to do with candidates not jumping at the opportunity to take employers up on their offers, believing they're in a good position to bargain for better earnings or employee benefits.
"The data from our Dice Hiring Indicators report shows average job vacancy durations in the U.S. continue to climb to new peaks, and it's clear America's companies are feeling the pressure, with a record number of hiring managers observing positions take longer to fill," said Michael Durney, president and CEO of the New York City-based financial services firm. "Competition for talent is heating up, and as highly skilled professionals become more coveted, companies will need to create an action plan for when the perfect candidate chooses another job or ups the stakes and requests a higher salary before accepting the position."
Employees feel they have more leverage
When the unemployment rate was in the 9 percent to 10 percent range – peaking at 10 percent in October 2009, according to Labor Department numbers – employers were in the driver's seat, meaning they had the upper hand in establishing what the terms were for job seekers to be hired. This latest poll suggests the tables have turned, however. Nearly 30 percent of managers have had prospective employees turn down their offer, up from 26 percent in November of last year.
Retention has also proven to be more challenging for employers, based on polling data. Roughly 40 percent of companies say they've seen a higher number of workers voluntarily decide to leave their current job post in order to pursue something else. In June, slightly more than one-third cited retention as being an issue.
Offering quality employee benefits may be the catalyst business owners need to encourage workers to stick around. In a separate poll, nearly three-quarters of workers said the quality of benefits offered would be a major consideration when deciding between two potential employers, according to primary care provider One Medical Group.
