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Old 11-02-2013, 06:28 PM
 
Location: Metro Detroit, Michigan
29,837 posts, read 24,942,627 times
Reputation: 28541

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If unemployment is high, it should be easy to find workers. Why is it that companies make every excuse not to hire, while expecting employees to work more hours? Well, I pretty well know many of the reasons, but just curious what others have to say on the subject, as well as the experiences of others.

Personally, I've noticed how difficult it is to find a decent worker. Most of the ones hired where I work don't last. The core group has been their for 5 years or more. 40% has been there for 15 years or more. Finding people who fit in isn't a very easy undertaking, even if the owner does want to expand. It's just easier to ask current employees to work more hours.

I work 40 hours many, if not most weeks. I've got side projects that keep me busy, so I'm pretty well satisfied with that as well as the income. What I've noticed is many others jump for joy when they get more hours though. I did enough OT when I started working years ago. Not really interested in trading all of my waking hours for work though

What say you? What has to change so it's convenient, or even optimal, for companies to hire more people?
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Old 11-02-2013, 06:50 PM
 
13,395 posts, read 13,523,253 times
Reputation: 35712
The answer to your question is not as simple as some of the answers you're going to get here. It's not about the politicians in office.
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Old 11-02-2013, 07:11 PM
 
2,633 posts, read 6,402,765 times
Reputation: 2887
It is ridiculously hard for me to find ground level workers. I want someone with a good attitude, no criminal background, no bad debt (write offs >$10K) that's it. I'll pay and train the rest. No degree, really don't care if they've graduated HS.

Costs me about $20 per résumé.
$100 per phone screen
$500 per interview
$1500-2500 per hire.

After training, minimum $15,000 per person.

Have 3 openings right now.

Oh. My problem is I only guarantee $20K. The rest is commission.
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Old 11-02-2013, 07:26 PM
 
13,011 posts, read 13,062,783 times
Reputation: 21914
I almost hate to give this answer because of the inevitable political discussion that will follow.

There are several reasons why companies are slow to hire. Some of it has to do with convincing the appropriate people that control the purse strings.

A big reason is this country's insane linkage of health insurance to employment. Hiring an employee does not simply commit a company to $20/hour (or whatever), it also commits an employer to health insurance premiums. When you think about it, it is cheaper to work your current employees at OT rates than to hire a new person, because the variable cost 50% premium you pay for OT is less than the fixed cost of health.

Add to this UI hitting employers if they lay off people and adding a position is much more costly than simply working your current employees to death.

The concept of exempt employees makes this even worse. Why hire when you can work some poor slob 75 hours?

I would change all of these things. Socialize the health care system. Charge a flat rate for UI that doesn't change for all employers, and dramatically limit the types of positions that qualify as exempt. These actions will all make hiring less risky/costly for employers.

Let the political controversy begin...
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Old 11-02-2013, 07:42 PM
 
Location: Metro Detroit, Michigan
29,837 posts, read 24,942,627 times
Reputation: 28541
Quote:
Originally Posted by fishbrains View Post
I almost hate to give this answer because of the inevitable political discussion that will follow.

There are several reasons why companies are slow to hire. Some of it has to do with convincing the appropriate people that control the purse strings.

A big reason is this country's insane linkage of health insurance to employment. Hiring an employee does not simply commit a company to $20/hour (or whatever), it also commits an employer to health insurance premiums. When you think about it, it is cheaper to work your current employees at OT rates than to hire a new person, because the variable cost 50% premium you pay for OT is less than the fixed cost of health.

Add to this UI hitting employers if they lay off people and adding a position is much more costly than simply working your current employees to death.

The concept of exempt employees makes this even worse. Why hire when you can work some poor slob 75 hours?

I would change all of these things. Socialize the health care system. Charge a flat rate for UI that doesn't change for all employers, and dramatically limit the types of positions that qualify as exempt. These actions will all make hiring less risky/costly for employers.

Let the political controversy begin...
I agree that politics has something to do with it. Since arguing politics is something of a past time, I don't mind

I personally feel we need to separate employers from health insurance. Of course, I would also expect a higher wage/salary as part of the deal. Most people do not factor in the cost of health insurance when they consider an offer. In that sense, the debacle that is our current health care situation in this country is out of sight, out of mind. If everyone was paying for it themselves though, I guarantee the issue would be front and center in the minds of everyone though.
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Old 11-02-2013, 07:52 PM
 
Location: NJ
18,665 posts, read 19,987,405 times
Reputation: 7315
The OP said on on a different thread his company has just 7 employees. Adding one more is a 14% increase. That would be the same as a 250 employee company adding 35 employees. That doesn't happen in one quick swoop-if at all.

So when you have just enough business for 7, you lack the backlog long-term to insure adding 14% more is a good business decision.
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Old 11-02-2013, 07:57 PM
 
Location: Metro Detroit, Michigan
29,837 posts, read 24,942,627 times
Reputation: 28541
Quote:
Originally Posted by bobtn View Post
The OP said on on a different thread his company has just 7 employees. Adding one more is a 14% increase. That would be the same as a 250 employee company adding 35 employees. That doesn't happen in one quick swoop-if at all.

So when you have just enough business for 7, you lack the backlog long-term to insure adding 14% more is a good business decision.
We have 7 tradesman, 1 shipping/receiving, and 2 office workers/admin/whatever you call them. Hiring one worker should be considerably easier than hiring 35. Why would the size of the operation influence the ease of hiring to such a degree?

The business has hired, the workers just don't last. Usually they are unqualified or simply difficult to work with. We usually have backlogs lasting 6-7 months. Security doesn't seem to be an issue at all. And money shouldn't be an issue either. Pay scales are pretty healthy and above average for the work. Of course, we expect somewhat of an above average worker in the exchange. What I've always said about high employment though... That doesn't mean good workers are crawling on their hands and knees begging for a job.
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Old 11-02-2013, 08:04 PM
 
Location: midtown mile area, Atlanta GA
1,228 posts, read 2,390,859 times
Reputation: 1792
Quote:
Originally Posted by andywire View Post
If unemployment is high, it should be easy to find workers. Why is it that companies make every excuse not to hire, while expecting employees to work more hours? Well, I pretty well know many of the reasons, but just curious what others have to say on the subject, as well as the experiences of others.

Personally, I've noticed how difficult it is to find a decent worker. Most of the ones hired where I work don't last. The core group has been their for 5 years or more. 40% has been there for 15 years or more. Finding people who fit in isn't a very easy undertaking, even if the owner does want to expand. It's just easier to ask current employees to work more hours.

I work 40 hours many, if not most weeks. I've got side projects that keep me busy, so I'm pretty well satisfied with that as well as the income. What I've noticed is many others jump for joy when they get more hours though. I did enough OT when I started working years ago. Not really interested in trading all of my waking hours for work though

What say you? What has to change so it's convenient, or even optimal, for companies to hire more people?
It sounds like there is some kind of disconnect with the hiring process, or your group is not receptive to new people.
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Old 11-02-2013, 08:07 PM
 
Location: NJ
18,665 posts, read 19,987,405 times
Reputation: 7315
If operations is where OT is required, it is 14%, 1 over 7. 1 more on top of 7 is a huge increase, and yes, money is always an issue. You are adding in not just the gross payroll cost but all the benefits, too. I'd jack up the OT before hiring under those circumstances.
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Old 11-02-2013, 08:25 PM
 
Location: Metro Detroit, Michigan
29,837 posts, read 24,942,627 times
Reputation: 28541
Quote:
Originally Posted by midtown mile girl View Post
It sounds like there is some kind of disconnect with the hiring process, or your group is not receptive to new people.
Well, if the new hire is not well liked, there is a good chance that the other workers will "chase" the new hire out. But really, the issue goes well beyond just the company I work for. Most of the companies I have worked for would rather hire fewer people while having current hires work more OT. It does give the company more flexibility if and when things slow down. Namely, you don't have to lay many people off.
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