Employers Report Difficulty Recruiting

A net of 17.8% of manufacturing respondents had more difficulty with recruiting in August 2011. This is a sharp net increase of 15.6 points from August 2010, and the highest net of recruiting difficulty in four years. 

A net of 11.5% of service-sector HR professionals also reported having more difficulty recruiting in August 2011—a jump of 14.1 points from August 2010 and also the highest net in four years. With the exception of March 2011, recruiting difficulty has risen on an annual basis in both sectors for every month since December 2009, SHRM said in a news report. 

The survey also found new-hire compensation is now beginning to rise, albeit slightly. The rate of increase for new employees’ wages and benefits rose in August 2011, marking the 11th consecutive month of increases according to LINE. 

In the manufacturing sector, a net total of 8.5% of respondents reported increasing new-hire compensation in August 2011. That is an increase of 3.1 points from August 2010. In the service sector, a net total of 10.9% of companies increased new-hire compensation in August 2011; that represents a 9.2-point increase from August 2010. Overall, the rate of new-hire compensation has risen in small increments on an annual basis in both sectors for every month except September 2010 since February 2010. 

“Rising recruiting difficulty may be why slightly more HR professionals are reporting increased compensation packages for new hires in August 2011,” said Jennifer Schramm, GPHR, SHRM’s manager of workplace trends and forecasting, in the news report.