Recruiting qualified workers is a daunting task for businesses today. There is a shortage of highly qualified workers and studies project that this shortage will grow. The Recovery 2020 report from Georgetown University Center on Education and the Workforce shows that very soon:
- 65% of job vacancies will require some post-secondary education and training
- 6 million jobs will require a graduate degree.
- 13 million jobs will require a baccalaureate degree.
- 7 million jobs will require an associate’s degree.
- 5 million jobs will require a post-secondary certificate.
At present graduation rates, U.S. businesses will fall short millions of workers now and in the near future. This will create a competitive labor market, and the competition won’t come only from U.S. businesses trying to hire qualified workers. There is competition for qualified workers across the globe. By 2020, there will be 38 to 40 million fewer workers globally with the skills and higher education that employers need. All this creates a competitive labor market, and creates challenges for employers to attract the right employees.
Recruit qualified workers
Attracting the quality and quantity of workers that businesses need requires innovative recruiting practices. To recruit workers who will contribute the skills a business needs, the business must offer the job prospects what they need. For today’s graduates just entering the workforce, that means offering student loan repayment assistance. However, just 4% of businesses offer this benefit.
Companies that are on the cutting edge of providing value for their employees are the ones that will be able to attract top workers. For job seekers, benefits can be just as important as salary, and student loan repayment can be one of the most important.
The highly skilled top workers that are in demand globally are often burdened by large amounts of student debt. The average 2016 college graduate had more than $37,172 in loan debt, up 6% from last year.
The February 2017 American Student Assistance Young Workers and Student Debt Survey showed how millennials think about student loan repayment and other benefits:
- 94% of young workers think employers need to consider more than just health insurance and compensation to retain good employees,
- 93% say they would take advantage of a sign-on bonus to specifically help with student loans,
- 86% would commit to their employer for five years if they received loan repayment assistance,
- 59% say paying students loans is a higher priority than saving for retirement later.
As the supply of qualified workers becomes tighter, employers will need to look beyond the standard practice of offering tuition assistance and other basic benefits. Edcor realizes the need for businesses to respond to employee needs by taking their tuition programs to a higher level. By making student loan repayment assistance an integral part of their benefits, companies signal that they are at the forefront of employee benefits.