Hottest Beveridge Ever!

The Beveridge curve is an economic statistic that tracks the relationship between the unemployment rate and the number of job vacancies. It was developed in 1958 and we just hit an all-time high. There are many factors driving this, of course, but one factor that goes unmentioned is that hiring managers do not like what they see among the applicants.

 

Meanwhile, we’re in the midst of The Great Resignation. People are leaving their jobs in record numbers. To understand why, McKinsey’s did a survey last March. The number-one reason (41%) people gave for leaving their jobs was a “lack of career development and advancement.”

 

To the extent that persistent job openings are due to a lack of qualified people, the two statistics point in the same direction. There is a record shortage of people trained for the work the economy needs.

 

Statistically speaking, this moment is historic. We, as corporate trainers, may at last be in a position to deliver strategic impact. Most executives think of training as a “cost center,” a necessary evil. How often are we asked to present ROI versus more pointed questions such as, “How can we lower overall training costs?”

 

This historic moment enables us to step forward with the only viable means for filling job vacancies. Companies need to find promising people and train them. Hiring managers can pitch this idea to the 41% of people who left their jobs due to a lack of career development.

 

Programs can combine internal career advancement training with hiring and onboarding. Integrating a training plan into the hiring pipeline enables training managers to boost the ROI of training for internal up-skilling.