Hiring Mistakes During the Great Resignation

On Behalf of | Oct 26, 2021 | Employment Law

In recent months, millions of people have voluntarily left their jobs. As a result, employers are scrambling to fill empty positions and stay operational. However, with more opportunities available, employees may have the upper hand.

If your business is ready to start rehiring or filling new positions, you can take steps to avoid the obstacles other employers have faced when attracting new employees during this unprecedented time, dubbed The Great Resignation.

Looking to Attract New Employees? Avoid These 4 Missteps

Certain mistakes in your hiring practices can make it more difficult to attract qualified candidates. These mistakes include:

  1. Not paying enough: As a threshold issue, businesses must comply with wage laws. This means paying at least minimum wage and giving overtime to eligible workers. It also means accurately tracking workers’ hours to compensate them for all hours worked. Beyond those basic requirements, businesses can struggle with hiring if the wages and salaries they offer are not competitive. As with any supply and demand problem, you may need to pay more to attract quality employees.
  2. Hiring the wrong category of workers: There are differences between full-time employees, part-time employees, contractors, and freelancers. Misclassifying workers can trigger legal disputes and create fines and penalties most employers would generally prefer to avoid. Thus, if you plan to hire contractors versus employees, be sure you understand the distinction.
  3. Making unnecessary demands: In times of job shortages, it is easier for businesses to make demands of their workers, from requiring non-competition agreements to making employees work on holidays. Now that workers have more jobs and companies to choose from, businesses that require employees to agree to unnecessary restrictions could find it harder to attract workers.
  4. Overextending your business: On the other hand, making too many promises could also be a mistake. Companies might offer higher pay, better benefits, and valuable perks to get people to apply. However, if an employer makes promises they cannot fulfill, they could wind up creating a host of new problems, including litigation.

Short-term solutions can create long-term problems

In an effort to fill positions and stay open in this climate, businesses may pursue policies or strategies they never considered before. Thinking “outside the box” can be a good thing, so long as employers also consider the long-term consequences of their short-term solutions. With guidance and responsible hiring practices, Minnesota employers can have a better chance at navigating this challenging time.