Staffworks Senior Vice President Karen Walser sums up what’s keeping the unemployed from seeking a job.
"They have a choice to stay home and almost make more staying home on unemployment than actively seeking work."
The stimulus money is also a contributing factor keeping people from seeking work. Robert Kuzdzal is the Vice President of Sales and Marketing at First Choice Staffing. He says employers are now faced with business decisions that have long-term consequences.
"A lot of the employers have to look at the fact…I have to raise wages to get someone in the door, but my people that I’ve had here to keep them loyal and not have them leave, I’m going to have to raise their wages, so it’s a snowball effect."
Bonide Products President and CEO Jim Van Handel just hired 18 employees and is seeking another 25. Van Handel says in order to fill his shelves with products you first need employees, but to get those employees you have to give them a good reason to come to work.
Bonide is offering incentives like signing, second-shift, and good attendance bonuses, plus career advancement opportunities. Those incentives along with a competitive wage is something the business has never had to offer in the past.
"Crazy. Maybe, but it works for us and it works for the employees. We were able to take our existing employee base, as well as new employee base and show them larger W-2’s than they’ve ever seen because they’re working hard to grow the business along with us."
Van Handel says what you lose by paying a little more to employees, is gained in productivity, and that levels out the margin of profit loss over time, but those incentives might not be there for those taking too long to get off the couch.
"Well don’t stay too long because the people with the motivation are coming in and getting jobs right now, and they’re going to be the ones in those jobs in 3, 4, 5 years from now."