7 Issues That Impact Staffing 2015

April 10, 2015 – Small and large businesses all plan to step up hiring activity in the second quarter, according to CareerBuilder’s latest forecast.

Twenty-three percent of companies with 50 or fewer employees expect to add full-time, permanent staff over the next three months, up from 18 percent last year. Among employers of all sizes, the number planning to hire in the second quarter is up six percentage points over last year.

Which leads many of Signature Source’s clients to ask the perennial question: What are the issues that will impact staffing this year?

1. Regulations

The U.S. Affordable Care Act (ACA), more commonly called Obamacare, has dominated our headlines for two years. But it wasn’t until Jan. 1 that the new regulations began affecting business. ACA requires employers with 50 more full-time employees to provide affordable healthcare insurance, while companies with more than 100 employees will be penalized this year if insurance is not provided. In 2016, the penalties expand to companies employing between 50 and 99 full-time employees.

2. Blended workforces

In a blended workforce, a company maintains a core of full-time employees that are supported by contract employees, a force that can be adjusted to meet specific needs and projects. This is a trend that has been growing over the past decade, and will continue to increase this year. Some experts are predicting that companies about to reach the 50-employee threshold will turn to contract employees to fill spots, rather than increase their full-time employee headcount that can lead to penalties if insurance is not provided.

3. Generational shift

Retiring baby boomers, who comprise the largest generation to ever hit the workplace, are being replaced by Generation Xers and Ys, also called millennials. According to a survey by The Intelligence Group of the Creative Artists Agency, 74 percent of millennials want flexible work schedules and 88 percent want work-life integration not work-life balance. The challenge for employers is developing talent retention strategies and career development tactics to attract and retain a competent workforce of younger workers.

4. Rebounding boomers

Baby boomers might be retiring, however in many cases their leaving creates a knowledge deficit in the workforce. Some companies are bringing them back as consultants on a contract basis, thereby retaining their knowledge and skills without adding to a company’s workforce. It also gives the boomer a chance to supplement a retirement income in a flexible environment.

5. Technology

Over the past decade, the growth of the Internet, mobile devices, social media platforms and video/audio conferencing has changed the way we conduct business. According to Fast Company, (http://www.fastcompany.com/3038990/how-i-get-it-done/how-to-manage-remote-workers-like-theyre-right-in-the-office) the number of people working from home at least one day a week increased 80 percent between 2005 and 2012.
The Workforce Institute forecasts that as technology grows, workforce management software suites and mobile platforms will integrate features from consumer software, and employers must be willing to incorporate these changes into their business to attract computer-savvy younger talent.

6. Company assets

The greatest asset in any company is the staff, according to The Workforce Institute, which says that excellent financial returns do not have to come at the expense of employees. In fact, the Institute reports that successful businesses invest more in their workforces in times of competition, thereby increasing employee engagement and attracting top talent.

7. Mobility

The Randstad Sourceright 2015 Talent Trends Report finds that companies are adopting redeployment and workforce mobility to achieve higher productivity and efficiency through a structured approach. The report states: “As globalisation continues to make the world smaller, careers are becoming more varied, and skilled professionals are increasingly more willing and better equipped to take up international opportunities.” The task for companies is to understand what motivates top talent to relocate – no matter where they are located.

As our labor pools continue to shrink, competition for skilled talent will continue to escalate. In fact, according to CareerBuilder, 43 percent of employers have job vacancies that stay open for 12 weeks or longer. Understanding what impacts staffing is the first step in developing a plan for attracting and retaining a competent workforce.