In the last several years, Denver’s population growth has exploded and several things are still falling into place as adjustments are being made. Some of those include housing, transportation, and jobs. Employees relocating from other states hear our job economy is strong, and it is. However, in April 2017, according to the Bureau of Labor Statistics, a mere 2.1 percent unemployment rate was reported. This means nearly everyone who wants to be working is, and yet, employers are having a hard time finding quality candidates to fill additional vacancies. Denver staffing agencies are working hard to make the match. Why the gap? We think it has a lot to do with expectations.
Wages Are Changing
Due to the passing of 2016’s Amendment 70, which increased Colorado’s minimum wage, many employers, especially those with a bulk of employees earning under that amount, are having to make changes. These changes can including passing on price increases to consumers, reducing staff, or finding more effective employees. These can lead to wage changes overall as the price of living increases. The measure began taking effect in January 2017 and will continue to increase to $12 per hour by 2020.
Many Denver staffing agencies are finding employers wanting employees at this rate are having a difficult time filling vacancies due to the cost of living currently in Denver.
Wages Are Different Than You Expect
With relocated workers from every part of the country, wage expectations between the employer and employee often don’t match. For example, a Texan who was earning $50,000 a year will need to make nearly $60,000 here to maintain their same cost of living, according to Bank Rate’s Cost of Living Calculator. On the other hand, a New York City resident earning $50,000 would only need about half of that to maintain their lifestyle. However, employees aren’t likely to take a 50 percent pay cut, regardless of how realistic it is.
Denver employers need to take into consideration both cost of living and understand and listen to the potential candidate’s expectations in order to come to a win-win situation. Understanding the reasonable rate of pay for a specific job is important in employee attraction. Denver staffing agencies are equipped to know the going rate for job titles and responsibility, and they can support the employer in finding a qualified candidate at the fair price.
Denver’s Unique Culture
Another factor Denver staffing agencies are contending with is Denver’s unique culture. Denver (and even Colorado more broadly), ranks high among college-educated workers. Energy and technology jobs have been an important part of our employment force, making the need for highly trained and educated workers in demand. Westword Magazine cites several factors, including the age of our population, a strong housing market, and the building and/or relocation of businesses to Denver as factors in our culture that affect unemployment rates.
Overall, this means employers are looking for strong, qualified candidates to fill numerous positions. They are looking for you!
Colorado Network Staffing (CNS) is a leader in staffing, staff augmentation, and contract management by acting as a sole human resource provider for our clients. Let us support your staffing needs and find the best mutual fit between you and our dynamic employer clients. CNS has the experience, resources, and top-level management expertise to pair the best a brightest job seekers with top-notch employers. Contact us at 303-430-1441 to get started.