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A tightening labor market

marcusmac99

LawnSite Senior Member
Location
Sarasota FL
From today's WSJ.

A tightening labor market is putting broader pressure on wages as U.S. firms increasingly report trouble filling low-skilled jobs, according to a new Federal Reserve report.

This type of business does require less skills to do the basic labor. I think people can be found, but it will take higher wages. Higher wages will eventually push rates to go up on the end customer.Or the owners take less profits.
 

PDLlandscaping

LawnSite Member
Location
NEPA
There are 100 different takes on the labor shortage. I think the labor shortage is a result of the growing green industry. I read a benchmark report that mentioned 80% of the respondants from the green industry saw growth in 2016, similar to growth in 2015. To me this means there is a lot of competition between people looking for good help. Also, ive found many of the good workers with the knowledge we as employers are looking for decide to start their own ventures.

Starting this season I want to begin hiring all the time, all year rather than when I'm in a situation where Imy forced to. I'd rather have an over flow then a shortage. I'm thinking of getting some lettering on my truck mentioning that we'really always seeking quality workers.
 

snomaha

LawnSite Bronze Member
Location
midwest
We reorganized our office org chart recently. Moved the office manager into a new position that 50% of her time is spent on HR and recruiting. Several years back we took the stance of always be hiring - cant count how many times you think you are fully staffed only to have 2-3 no show the next day.

Was just discussing this with another LS member - had our biggest payroll in 26 years today - direct labor is our biggest expense - couldn't afford not to have someone own that position...
 

Efficiency

Banned
Location
zone 6
Not to be or just to be and azz, Im happy businesses who have prospered with low wage employees will soon get there behinds kicked.
Our lawn techs start around $35k a year. that's not low wages. But we are having a hell of a time finding drug free employees who our insurance will cover. We are 2 employees short right now and are actually taking cancels because we can't get to new sales quickly enough. Sure, we could take a druggie with a bad driving record but our screening process is pretty tough and most people who want to work here can't even pass our 2 test system. There have been 2 drug screened and insurance approved candidates that took other jobs literally less than 24 hours before their 2nd interview with us where they would have had a nice offer from us. It sucks, but what can you do?
 

snomaha

LawnSite Bronze Member
Location
midwest
Your going to hear this all the time now that immagration laws are being enforced. We have a long ways too go to reach full employment.

Not to be or just to be and azz, Im happy businesses who have prospered with low wage employess will soon get there behinds kicked.
Larry - interested to know what you think a low wage employee makes?
 

larryinalabama

LawnSite Fanatic
Location
Ragland Al
Our lawn techs start around $35k a year. that's not low wages. But we are having a hell of a time finding drug free employees who our insurance will cover. We are 2 employees short right now and are actually taking cancels because we can't get to new sales quickly enough. Sure, we could take a druggie with a bad driving record but our screening process is pretty tough and most people who want to work here can't even pass our 2 test system. There have been 2 drug screened and insurance approved candidates that took other jobs literally less than 24 hours before their 2nd interview with us where they would have had a nice offer from us. It sucks, but what can you do?

Hope you have a great year.

I suppose you could make a job offer "pending" a drug and background test. Back in my mechanic days I alaways got a "offer" and then the applacation and drug test was done. Something too think about.

I will say its fellers like you that are bringing the image of this business up. Its a huge benefit to the industry, even too us solo guys.

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Then on a different note I get people all the time wanting too come work for me, but I have no interest in hiring anyone. My boy is 12 so I may have him work for me a little, buts thats more of a father son deal.
 
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