With the unemployment rate hovering around four percent, Texas stands proud with one of the lowest rates in the nation. Workers all over the state, from permanent to contract employees, are seeing the benefits. While we all know that low unemployment is better for the economy, these rates can have complex side effects for businesses. Just how exactly does unemployment affect your business?
Top Three Ways Low Unemployment Impacts Businesses
- Higher demand for services. Since most people are gainfully employed, they aren’t as cautious with their spending money. If you’re in accounting or human resources, the demand for your services might start to soar.
- Recruitment requires better compensation packages. In a low-unemployment economy, candidates will likely expect larger salaries and better compensation packages. If you want to attract the best, be prepared to offer them the best.
- Stronger sense of security. With a smooth economy, your staff may feel more secure in their positions. This type of workforce environment is more positive and less stressed, meaning your employees could be more motivated to boost success.
So, what happens if one of these side effects begins to alter your business? Taking a moment to examine your needs and reevaluate your workforce management might just reveal more options than you think.
- How do you meet a higher demand for services? Your staff is on the verge of working overtime, but the hiring process takes time. A few contract employees can help bridge the gap between increasing inventory and increasing profits. If you’re looking to expand a department or two, contract positions can help you test drive candidates until you find the right fit.
- How do you offer better packages? When potential candidates demand better packages, you have more than one option. You can offer to meet one or two demands with a promise to fulfill others after a probationary period. You can also use contract employees on a project-by-project basis, possibly eliminating the need to recruit full-time staff altogether.
- How can you take advantage of job security? When your employees are less stressed, they are more productive. This is a great time to initiate some professional development opportunities. You can also use a staffing service to provide contractors to take on the day-to-day tasks so your current employees can make time for priority projects.
Need help meeting your staffing needs? Trust a staffing agency leader right in your own backyard – High Profile Staffing. We’ve supported Dallas Fort Worth business success by providing proven staffing solutions. We use an extensive evaluation process to examine talent, allowing us to solve our clients’ staffing needs, so they can get back to business.