There are several signs indicating the U.S. economy is improving: the unemployment rate is falling, unemployment insurance claims are dropping, and construction spending is on the rise. One of the top indicators is the national quits rate, which the Bureau of Labor Statistics (BLS) defines as “voluntary separations initiated by the employee.” They go on to explain that the quits rate can “serve as a measure of workers’ willingness or ability to leave jobs.” At the height of the Great Recession, the quits rate was low. Companies were laying off employees and the economy was hurting, so naturally workers who had jobs held on for dear life. As the economy has improved, however, the quits rate has increased.
What does this mean?
The quits rate has increased 46% since the Great Recession: in February, the quits rate was 1.9%. The increasing quits rate coincides with an increasing number of job openings and hires since the Recession (see above). Taken together, these metrics show it’s a candidate-driven market today. More companies are hiring, giving employees more opportunities to find a job they enjoy that pays well… even if they’re already employed somewhere else. Top talent has options, and companies are struggling to keep them.
Closer look: Accounting & finance
Financial industries have always been competitive for top talent, but as the number of job openings increase, many accounting and finance companies, big and small, are also struggling to retain talent. A recent study from the AICPA revealed financial business leaders have consistently ranked the shortage of skilled personnel as one of their top five challenges in 2015.
What can these companies do?
Job security and fair compensation are a good place to start, but these are no longer the only factors that will make a great employee stay. Companies need to hire talent strategically in order to find people who are the right fit, and they need to develop a culture of engagement and retention to keep talent happy and productive.
I want to know more!
To find out how companies can hire and retain their highest performers, join our webinar, “How to Hire and Retain Top Accounting Talent” on May 13th, 2015 at 12:00 pm CST. Tom Gimbel, founder & CEO of LaSalle Network, will be sharing advice for companies to help them retain their talent.
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