When the conversation turns to employment, the bottom line remains as frustratingly consistent as the supply chain situation…which is to say, the news remains the same. But given the shifting tides of the economy and rising inflation, it will be interesting to see the impact on job-hopping moving forward.
With national unemployment still enjoying record-low figures, the needle hasn’t moved significantly during 2022. In June, according to the most recent available figures from the U.S. Bureau of Labor Statistics (BLS), the ratio of unemployed people to available jobs stood at .6. It bottomed out at .5 from March through May.
As for Americans who are active in the workforce, the quit rate has hovered in the 2.8% to 2.9% range in 2022, and the four-plus million resignations per month have held steady throughout the year, according to the BLS. The rate topped out at 3.0% in November and December of last year.
The latest inflation figures released recently by the BLS show an 8.5% increase for the trailing 12 months. Its impact on employment attitudes is readily apparent. As the price of goods increases, prospective employees seek higher compensation, thus employers must increase the prices of their goods even more to counterbalance increased wages, perpetuating a vicious cycle.
The en masse musical chairs is not without consequence to the employee. According to a Joblist survey of 15,000 workers, 26% of those who changed jobs reported they regretted leaving their previous employer. That increases the incidence of employees returning to their previous employer, which (anecdotally) is willing to forgive and forget since it is certainly more costly to train a new hire than it is to reintroduce a boomerang employee.
All these numbers only scratch the surface of the Great Resignation. As we conclude this month’s State of the Industry report on hiring and retaining employees, we asked our panel of dealers to reveal what changes, if any, they have implemented in their hiring practices during this period.
Wider Net
Cincinnati-based Prosource has long stressed team fit, attitude and work ethic in its recruitment process. According to Brad Cates, president and CEO, the biggest adjustments have been in the scope of its search.
“We’ve been casting a wider net through more active involvement at local colleges and universities to bring on fresh talent,” he said. “We hire them for their character and their drive and then provide them with a world-class training program to help them get where they need to be.”
Wisconsin Document Imaging (WDI) has benefitted from an all-hands-on-deck approach. Despite having several retiring employees to replace, the incumbents were gracious enough to stick around with the Green Bay dealer to help train the newbies. In fact, Cory Spice, WDI president, notes his entire workforce has stepped up to not only help train newcomers but also redesign positions and shift responsibilities—critical to addressing the dealer’s growth.
“Cultural fit is a must for working at WDI,” Spice said. “Every company wants to have talented employees who are easy to work with and great with customers. I believe our WDI roster is full of them. However, I would choose the candidate with the right attitude every time over a talented candidate with experience who would be toxic in our environment.
“We look for individuals who have the service mindset and are willing to pitch in however they can,” he added. “I think our leaders set a great example of living that, whether it’s our service manager, our IT director or our HR/accounting manager. Everyone is willing to help unload a truck, take out the garbage or answer a customer call. Now, we might not all know how to answer the front desk phone and transfer someone. But we are willing to try.”
Finding Potential
In the eyes of Joe Blatchford, CEO of Valencia, California-based Image 2000, the existing skillset is equally important as a potential skillset. In order to shape the dealer’s future success, it’s incumbent upon the dealer to invest in candidates who show great potential but lack relevant experience.
To that end, Blatchford encourages managers who see potential in an applicant to pull the trigger and make the hire. From there, training and mentoring can help mold the highly touted prospect into a star.
“We recently partnered with Kate Kingston to elevate the level of training we offer to new hires as well as existing sales reps,” Blatchford said. “Those who have been with us for a while get to learn new and valuable approaches to the sales process, while rookies are afforded a level of high-intensity training they can’t find in other entry-level sales positions.”
Skills and experience have long taken a back seat at Pearson-Kelly Technology (PKT) to identifying candidates who are a cultural fit. CEO Chelsey Bode sees greater harm in the long run when skills and experience are prioritized over culture, with a toxic work environment developing in a worst-case scenario.
Bode notes PKT has chosen to restructure through attrition and not replace certain roles. Other functions, such as some HR and marketing, have or may be outsourced.
“Attrition is not always a bad thing,” she said. “We’ve tried to focus on the opportunity at hand: can other positions absorb additional work and make more money? We’ve put some of these decisions back on the department to answer. Oftentimes, they decide to take the stipend and additional workload until we hit capacity.”
