Despite the optimistic hiring outlook for the next year, 91% of U.S. companies expect to face challenges, including 45% of hiring managers who say they have open positions they cannot fill.
This is according to a survey from The Harris Poll commissioned by Express Employment Professionals, where the 45% reporting open jobs is the highest proportion since the study’s inception (42% first half of 2022, 43% second half of 2021, 40% first half of 2021, 41% second half of 2020 and 40% first half of 2020).
Those who have open positions still unfilled say it is due to a lack of applicants. This includes applicants with relevant experience (47%), hard skills (46%), applicants in general (40%) and/or soft skills (31%).
Beyond a lack of applicants, companies have been plagued with turnover. More than a third of U.S. hiring managers (35%) predict employee turnover at their company will increase this year—a precipitous drop from earlier this year and a proportion not seen since the spring of 2020.
Unfortunately, each year employee turnover costs companies an average of $62,542 (e.g., cost to rehire, lost productivity), and nearly a quarter (23%) say it costs their company $100,000 or more per year. In an effort to counteract this turnover, companies are planning to rehire (81%) —possibly for positions open due to turnover or those they have yet to fill.
Typically, companies are rehiring either to increase their overall employee count (36%) or to keep the same level of employees (35%).
Companies anticipating increased turnover in 2023 attribute these vacancies to employees resigning (35%), better pay/benefits offered elsewhere (35%), the competitive job market (34%) and increased workplace demands (32%). Around 3 in 10 believe it will be due in part to employee feelings of being overworked (31%) and retiring (28%).
Better perks (e.g., summer Fridays, unlimited vacation days) offered elsewhere (26%) and better company culture elsewhere (21%) are also thought to be contributing factors to increased turnover this year.
Other challenges employers are facing include finding qualified candidates (52%), increased competition in the job market (31%) and the available talent pool not matching the company’s needs (27%). Around 1 in 5 U.S. hiring managers report difficulty assessing candidates’ skills during the hiring process (22%), their pay not being competitive (21%) and reaching diverse candidates (20%).
“The lack of workers, particularly qualified workers, in America should raise red flags for everyone from the government and educators to businesses and parents,” Express Employment International CEO Bill Stoller said. “This is a crisis that has been building for years and the fallout is only just beginning if we don’t invest in creating more qualified employees through training and education.”
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