For over two years, sustained low employment rates in many parts of Maine have given workers more leverage in the job market and forced employers to consider aggressive strategies to recruit ¡V and more importantly retain ¡V key employees.  While Maine employers have, in general, resisted the urge to lure new workers with increased wages, many have implemented creative recruitment and retention programs.

Dilbert¡¦s Revenge
For employers faced with a labor crunch, the hiring process is fraught with peril.  Those who drag out the process frequently lose candidates to competitors who are more aggressive and flexible in the recruitment efforts.  Yet when hiring is streamlined, marginal candidates are most likely to slip through interviews and receive offers.
Employers can speed the hiring process while protecting its integrity by: (1) checking references promptly after interviewing prospects, (2) conducting employment testing and interviews on the same day, (3) scheduling interviews with various employer representatives as close together as possible, (4) including the candidates¡¦ immediate supervisor in the first round of interviews and (5) being prepared to hire qualified candidates on the spot.
Special problems arise when a labor crunch forces employers to consider underqualified candidates or those with tarnished employment histories.  So-called ¡§job-hoppers¡¨ can usually be screened out by checking references thoroughly and by analyzing the employment history typically included in a resume.  Employers should also review their application forms to make sure they include language that expressly reserves the right to terminate new hires who are found to have lied or omitted key information in their applications.  In addition, applications should include authorization to obtain information from all former employers, educational institutions and other potential sources of employment-related information, as well as a waiver of liability for any claims or damages arising out of such inquiries.
Addressing the Supply Side
Even if an employer¡¦s recruitment process has been tailored to the demands of a tight labor market, problems will remain if the employer simply cannot find enough qualified applicants. Expanded use of communications tools such as the Internet and toll-free telephone services can broaden access to candidates, particularly in the high-tech, retail and financial sectors.

In other fields, employers are finding that their existing workforce is a valuable source of referrals about potential job candidates.  Where demand for workers far outstrips supply, as in Maine¡¦s home health care and telemarketing sectors, employers may find that they get more bang for their recruitment buck by offering bonuses to employees who bring in qualified new hires, rather than by allocating those funds to more advertising space, participation in job fairs or greater reliance on placement agencies.
Employers should also consider ¡§relationship recruiting¡¨ and the possibility of tapping alternative populations for potential job candidates.  In other regions of the country, employers are increasingly cultivating relationships with local high schools and technical college placement offices, senior citizen residential centers, social services agencies in rural areas with higher unemployment rates and even religious congregations in an attempt to identify labor pools that have been insulated from the effects of high labor demand.  Typically, once these ¡§workers pipelines¡¨ have been identified, employers then develop the necessary institutional links (transportation, training, counseling) to ¡§capture¡¨ the labor pool, ensuring a source of qualified candidates over time.
Closing the Revolving Door
Successful retention is as important as effective recruiting.  In many cases, retention does not depend on above-average wage scales but on a combination of non-cash incentives and subtle adjustments to existing compensation and benefit structures. For example, employers may wish to:

„h Opt for retention (i.e., service time) bonuses rather than hiring bonuses as incentives for employees to remain with the company;

„h Drop waiting periods for participation in company profit-sharing and retirement programs;
„h Develop a program of motivational awards, using employee recognition certificates, gifts and spot cash payment;

„h Explore non-cash perks such as casual wear options, flextime and in-house training programs.
To the extent that employers introduce new bonus or cash award programs to their compensation structures, they would be wise to ascertain, in advance, the impact that such programs will have on their compliance with Federal and State wage and hour requirements.

Exit interviews are another important consideration for employers suffering from high staff turnover.  Employers who fear that their losses are due to aggressive recruitment or ¡§poaching¡¨ by competitors should use the exit interview to learn why employees are leaving, determine where they are going and design a retention program to curtail losses.