While the economy continues its long uphill battle into recovery, companies continue to hit the brakes on hiring. There are several contributing factors to employers' trepidation, including insecurity of the economic recovery, lack of growth, and the fact that companies are still waiting for consumer demand to return. So while hiring is needed to heal our economy, companies continue to use their empty chairs to sit on their cash.
In order to improve the economy, consumers need to have more income and less debt. Most companies say their problem is poor demand. But without consumers having money to spend, they cannot stimulate the economy. Once companies feel confident enough to hire, consumers will begin to eliminate their debt. It's a system, and it works, but employers have to stop hoarding and start hiring.
One thing's for sure -- the majority of companies that are hiring are taking their sweet time to hit the hire button. Several factors contribute to the snail's pace that has become the status quo: stretching budget dollars, uncertainty of financial stability, waiting for Mr. or Mrs. Right, and quite commonly, the attitude that the market is slow.
Managers are inclined to sit and wait for the perfect candidate (and often times, a fictional one) while leaving a chair empty. Though this tactic might save some dollars and perhaps peace of mind up front, in the end, it can be costly.
Companies need to weigh the cost of an empty seat with the cost of making the hire, including the long-term effect. For instance, how is not having someone in that seat slowing or stopping production or innovation? Demand might be weak now, but without continuing to innovate, create, and deliver products, companies won't be positioned to be competitive as economic conditions improve.
Bottom line: The faster employers hire, the quicker consumers will climb out of debt, which will put more money into the economy, which will create jobs, which will allow companies to hire more people, which will put more money into the economy, which will create jobs, which will ... well, you get the idea.