44% of employers plan to hire this year
February 3, 2018
By Heather Nezich, courtesy of SBAM Approved Partner ASE
CareerBuilder’s annual forecast shows that 44% of employers plan to hire full-time, permanent employees in 2018 and half (51%) will hire temporary employees. But the most pressing question remains: how quickly can they fill those roles, if at all?
45% of HR managers currently have jobs they cannot fill because they can’t find qualified talent, and 58% report that they have jobs that stay open for 12 weeks or longer. Adding to the issue, employers will have a harder time holding on to current employees with 40% of workers planning to change jobs this year.
“More job creation, higher voluntary employee turnover and intensified competition for talent will be the main themes surrounding employment in 2018,” said Matt Ferguson, CEO of CareerBuilder and co-author of The Talent Equation. “There is a perfect storm happening in the U.S. labor market. Low unemployment paired with lagging labor force participation and a growing skills gap is making it very difficult for businesses to find qualified candidates – and this is for all types of roles. If employers want to remain competitive, they are going to have to look to new talent pools and significantly increase their investment in training workers to build up the skills they require.”
Five Employer Trends to Watch in 2018
With companies struggling to get new employees in the door, they are exploring various sources for job candidates and increasing compensation in 2018:
- Capturing New Talent Early – Employers will start courting college students early – 64% plan to hire recent college graduates this year.
- Importing Talent – Employers will be looking beyond borders to find talent with 23% planning to hire workers from other countries to work in the U.S.
- Re-engaging Past Employees – Employers will increase outreach to workers who know their business and have a history with them – 39% plan to hire former employees in 2018.
- Hiring for Potential – 66% of employers said they will train and hire workers who may not have all the skills they need, but have potential; 44% of all employers plan to train low-skill workers who don’t have experience in their field and hire them for higher-skill jobs.
- Boosting Compensation – While wage gains have not reached desired levels, employers will become more aggressive with compensation levels for in-demand workers – 30% plan to increase starting salaries for new employees by 5% or more while 36% will do the same for existing staff.
Full-time, Permanent Hiring
The amount of employers planning to hire full-time, permanent staff in the New Year was similar to last year, increasing four percentage points from 40% in 2017 to 44% in 2018. 6% of employers expect a decline in staff levels in 2018, an improvement from 8% last year.
Temporary and Contract Hiring
The increased reliance on temporary labor will carry over in 2018 as companies work to maintain flexibility in their workforce and test drive candidates for permanent roles. 51% of employers plan to hire temporary or contract workers in 2018. 64% of these employers plan to transition some temporary or contract workers into permanent roles in 2018.
The demand for talent continues, and employers are starting to get creative in where they find new talent and how they develop that talent.