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HR trends you should know about

PBN Staff

09/16/2007

Dear Dan: We’re not a big company, but we’re definitely finding it harder these days to hire and keep employees. What’s going on out there? – Hiring Flop

Dear Hiring Flop: Finding, hiring and keeping good employees is always a challenge for small businesses. And with competition for talented and reliable employees expected to intensify, keeping up with the latest trends and practices is key. Here are four major trends:
1. Internet reliance. For most businesses, the Web is the best tool for finding employees. Businesses that seek out “passive” job candidates (those not actively looking, but who’d consider a change) use three main Web-related tactics: a) viewing association and trade group membership directories; b) scanning social networking sites such as MySpace and LinkedIn; and c) mining industry-specific blogs, discussion forums and news groups.
Employers surveyed by the Society for Human Resource Management say their most reliable sources for quality job candidates are employee referrals, national Web-based job sites such as CareerBuilder.com, Monster.com and HotJobs.com, and Internet job postings.
2. Buddies at work. In the past, some businesses have avoided having friends work together, fearing a higher goof-off factor. But new surveys show it actually boosts productivity. “Colleagues who are friends are more likely to support one another when presented with challenges or new responsibilities,” says Max Messmer, chairman of Accountemps.
3. Job satisfaction factors. The key to employee job satisfaction differs by age and size of the business. Employees at big companies say health care benefits are most important to job satisfaction, according to a new SHRM survey. But employees at small businesses say that feeling safe in the work environment is paramount.
4. Shifting benefits array. Beyond health insurance, which ranks as the No. 1 benefit employees want and businesses offer, there’s a shifting array of other benefits being offered, according to the SHRM 2007 Benefits Survey.
The most commonly offered benefits are direct deposit, paid holidays, training opportunities, payroll deductions, prescription drug coverage and dental insurance. A few benefits on the rise include cell phones or PDAs for personal use, vision insurance and transit subsidies.
Benefits being cut back by many companies include car allowances, health club memberships, traditional defined benefit pension plans and full flexible benefits plans.
Businesses that offer a wide array of benefits report spending an average of 38 percent of payroll on total benefit costs – 20 percent for mandatory benefits and 18 percent for voluntary offerings.
Daniel Kehrer can be reached at
editor@business.com.