FEATURED ARTICLE

Photo illustration by Deb Cram

Job growth gets the flashy headlines, touted as harbinger of better economic times. But there could be a catch in tomorrow's labor market: Securing good workers. "Our labor pool isn't necessarily shrinking, but it's not keeping up with employment," said Jim Roche, president of the New Hampshire Business & Industry Association. Even at executive-level positions, companies can find it a challenge to find the right person for the job, Roche said. Part of the trouble, he said, is the high cost of housing and a lack of work-force housing.

For businesses, the competitive market means a renewed focus on enticements and benefits as ways to attract and retain workers. Industry professionals and researchers say the wooing has already begun. Good pay, flex time, and a positive work environment can help companies achieve results. Statistics from the federal government indicate the challenge of finding good help could soon be more imposing. Roger E. Herman, CEO of The Herman Group, warns of the tight labor market in his book, "Impending Crisis: Too Many Jobs, Too Few People." Citing data from the U.S. Bureau of Labor Statistics, he writes that the country will be about 10 million people shy of job projections by 2010. The projection is more than 4.7 million today, but the shortage will be felt when the economy picks up, according to Herman. The trend means it is more important than ever for companies to find and keep their skilled workers, Herman says in position papers on his Web site, www.hermangroup.com.

Herman, an employee retention specialist, writes that companies do not have to spend a lot of money to be unique or creative in their goals for work force stability. He says companies successful in employee retention have used at-work laundry services, child care services, and wellness programs. The other challenge Herman underscores is the trend of workers wanting more time for their personal lives, even if that means a drop in total pay. The "quality of life" issue is changing how human resource professionals and researchers talk, and has led to the coinage of phrases such as "work-life balance." Such terms came about as more Americans complained about being overworked and stressed out. One in three U.S. employees is chronically overworked, while 54 percent have felt overwhelmed at some point in the past month by how much work they had to complete, according to a 2005 study by the Families and Work Institute.

New Hampshire continues to compete with neighboring states for employees as well as businesses. Richard S. Brothers, commissioner of New Hampshire Employment Security, said nearly a quarter of health care workers recruited in New Hampshire each year come from another state. Given the job projections, recruitment is increasingly important as companies search for talent.

"It's highly competitive in the financial sector in the state right now," Brothers said. "Professional recruiters are trying to recruit professional recruiters - whatever area is in demand, so are the recruiters for that industry." Brothers said the demand creates opportunities for younger and older, more experienced professionals. As attractive as the various benefits packages can be, nothing really beats a good paycheck, according to Brothers, who is quick to add that New Hampshire's lack of a state income tax should be seen as a 5 percent to 7 percent pay raise. "Money is the big thing," he said. He noted his niece was recently recruited to New Hampshire, attracted by a good salary offered by Fidelity.

David Juvet, vice president of the Concord-based BIA, said several businesses responded at his group's series of summer roundtables that New Hampshire and vicinity was experiencing a tight job market. Engineers and high-tech workers are among those in demand, he said.

"Different companies are handling it different ways," Juvet said. "Some are working closer with the university system for internships, others rely on executive recruiters or headhunters."