As a business owner or manager, you may have noticed that it’s getting harder and harder to find skilled workers to fill vacant positions. You’re not alone—this is a trend that’s being seen across all industries. Here are five reasons why attracting skilled workers is becoming more challenging.
The Pool is Shrinking
One of the main reasons it’s hard to find skilled workers is that the pool of potential workers is shrinking. This is due to several factors, such as an aging population and declining birth rates. In addition, more people are staying in school longer, which means they’re not entering the workforce until later in life. There is also the ongoing labor shortage which is affecting many industries.
Widened Skill Gap
Another reason it’s hard to find skilled workers is the widening skills gap. This means that more jobs require specific skills than there are people who have those skills. This often happens because technology evolves faster than our ability to learn new skills. So, for example, while there has been an increase in the demand for web developers, there hasn’t been a corresponding increase in the number of people with the necessary skills to fill those positions.
Another reason it’s hard to find skilled workers is that there’s a lot of competition for them. This is especially true in industries with more job openings than people with the necessary skills to fill those positions. For example, according to recent data from the U.S. Bureau of Labor Statistics, there are more than twice as many job openings in computer and mathematical occupations than people with the necessary skills to fill those positions.
Another factor that makes it hard to find skilled workers is geographical location. This is because some areas have more skilled workers than others. For example, cities with large numbers of colleges and universities tend to have more people with the necessary skills for certain positions than other parts of the country.
Cost of Living
Finally, another factor that makes it hard to find skilled workers is the cost of living in certain areas. This is because some areas have a higher cost of living than others, making it difficult for businesses to attract and retain employees with the necessary skills for certain positions. For example, companies in expensive cities like San Francisco and New York often have difficulty attracting and retaining employees with the skills required for certain jobs because those employees can get paid more elsewhere.
As you can see, there are several reasons why it’s hard to find skilled workers these days. However, by understanding these reasons, you can take steps to make your business more attractive to potential employees with the necessary skills for your open positions. Additionally, if you want to get more skilled workers in your company, consider giving retirement benefits to your employees.
More and more people in the workforce are planning to retire early. If you want to get more skilled millennials, consider giving retirement benefits. Here are some of your best options.
If you want the best retirement benefit, start with the most common and reliable in the market: 401K. This retirement benefit has various advantages when compared to others. First, 401k limits the amount of money you can contribute annually, allowing for tax-deferred growth. Second, 401k offers an employer match program that provides additional contributions to your employee’s retirement savings. Lastly, 401K is portable, meaning employees can take it with them if they change jobs. If these look attractive to you, consider contacting a 401K provider for small businesses. These providers are often more affordable and specialized for small businesses, making 401K an excellent option for attracting skilled millennials.
Another option is a Roth IRA, which allows employees to contribute after-tax income into retirement savings that can be withdrawn tax-free. One advantage of a Roth IRA is that it offers more flexibility regarding contributions and withdrawals. Additionally, there’s no required minimum distribution at age 70 ½ like with a traditional IRA or 401K. However, one downside to consider is that the annual contribution limit for a Roth IRA is lower than that of a 401K.
Retirement Plan Consultant
Lastly, if you want to offer retirement benefits but aren’t sure where to start, consider hiring a retirement plan consultant. They can guide you through the process of setting up and maintaining retirement plans for your company, making it easier for you to attract skilled millennials.
Attracting and retaining skilled workers can be challenging in today’s job market. But by offering attractive retirement benefits and considering options like starting a 401K plan or hiring a retirement consultant, you can attract the skilled workers your business needs. This is something that every skilled worker is searching for, and this will give you leverage over the market.