On-The-Job Training Trend Takes Off As Employment Pool Shrinks

Employee retention, qualified applicants and specialized skills are motivating more in-house training and opportunity in the Sacramento area. Internships, probationary and apprenticeship programs are growing as the pool of skilled workers shrinks. For several Quarters an increasing number of Sacramento’s top regional companies have noted growing problems with finding enough qualified applicants, those with specific, often technical skills and keeping the employees currently on the job. Falling unemployment, recovery from recession years and an aging workforce are thinning the formerly large numbers applying. Pacific Staffing discovered a ‘back to the future’ approach when polling local companies, finding a vast majority, seventy-six percent (76%) report having existing or now using more O-J-T in meeting specific workforce needs in hiring.

When asked: “Is it time for (Sacramento regional) employers to open work to entry levels and train on the job for specific proprietary needs?”

Just twenty-three percent (23%) didn’t have or support on-the-job training, while one percent (1%) didn’t answer.  The apprentice, or ‘old school’ approach to filling employment needs has never gone completely out of style with Sacramento regional companies. As some HR contacts noted, when surveyed directly between May 19-June 19, 2015, a policy to recruit from local sources and train within the company for specific skills also reaps greater loyalty, individual company and geographic identity.

The Sacramento employment trend continues to rise in Q3 2015 with sixty-seven percent (67%) of companies planning to hire in July, August and September.  Seventeen percent (17%) of demand was attributed to seasonal needs in the next three months. Workforce expansion continues to rise with fifty-one percent (51%) of expected hires motivated by growth while thirty-eight percent (38%) was described as replacements for attrition over the next Quarter. No layoffs were noted.

While Federal changes in healthcare lead all complaints thru the last two years, now the most challenging issue for HR pros is California’s Sick Leave policy. Eighteen percent (18%) said they were struggling with implementation or compliance as their greatest workforce challenge in the next Quarter. Qualified applicants and retaining current employees were also noted as a continuing issue with thirteen percent (13%) of companies surveyed directly by phone.

Skills Demand?

The majority of Sacramento regional employers are seeking manufacturing/product assembly workers, sales and general office.

Challenges?

Biggest workforce challenge noted by regional employers is compliance with new CA sick leave policy, followed closely by finding qualified applicants and retaining current employees.

Sacramento Regional Top Companies Polled By Industry:  

• 37% Service
• 33% Manufacturers
• 19% Construction
• 11%Retail

=============Next Quarterly Projections: October 2015 =================

Media contact: Rick Reed 916-704-0080/ info@rickreedpr.com