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Orange County, CA Medical Device Industry Hiring Challenges

8/24/2022

 
Orange County unemployment rate is 2.9 percent as of July, 2022, as such the talent scarcity is creating gaps between the supply and demand of skilled MedTech professionals.  Given these challenges we’re all facing we recently asked the online community the following question:

Which part of your business has the hardest time finding and hiring talent?

I suppose EU MDR is to blame for this as the majority of respondents indicated RA QA personnel are the hardest to find.

There’s another distinction worth noting that’s adding fuel to the fire.  The cost of living (COLA) in Orange County is 54% higher than the national average.  As a result, this has a direct impact on the sheer number of people who can afford to live in OC, which decreases the size of the employment pool.  Add into the mix issues the overall State is experiencing like a 250k net migration loss along with relatively new industry regulations like EU MDR and you have a perfect storm where demand is grossly outpacing supply.
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Pete Nalbach, GM of SeaSpine in Irvine, CA shared some interesting insights about the present hiring, employment and talent situation:

​Pete indicated and I’m paraphrasing a bit “…candidates have options.  This means they only accept jobs they really want which in turn gets a higher engaged employee for the company in the long term”
 
What’s your solution to the talent shortage?

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How Your Competition is Hiring Great Employees in Todays Tough Labor Market

11/11/2021

 
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We’ve heard it a thousand times - the labor market is tight and only getting worse.  Unemployment for professionals is close to an all-time low while demand continues to skyrocket.  Frankly, this is nothing new, nor should this be news to most of us.
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What is rather striking are the number of companies who seem to have little plan in place for how they’re going to continue to hire new employees amidst one of the most competitive and challenging employment times in our nations’ history.  Where plans lack, so do results.  Long gone are the days where we can post a job online and get a slew of great applicants, especially in the technology sector.  Why?  Because everyone is working, which means those who aren’t, well there might be a reason for that. 

What this also tells us is in large part the people we all want to hire are gainfully employed elsewhere, to get their attention to come work for you you’ll need to have a plan in place to do so.  Before we can build a hiring plan we first need to understand what we’re up against.

Local Marketplace Dynamics – Orange County, CA:
·       Wages in OC are on average 17.3% higher than the national average and 21% higher than neighboring counties
  • OC unemployment in September 2021 was 5%, for professional workers it’s estimated to be under 2% (meaning more than 98% of professionals are gainfully employed right now)
  • Many industries are experiencing record growth including IOT, app developers, banking, services and healthcare
  • Supply vs. Demand - there are more than 3x the number of job opportunities available as there are people in professional roles to fill them; the supply and demand disparity is even worse in the technical sectors
  • Hiring for light industrial/ manufacturing personnel is incredibly challenging due to sheer demand coupled with the supply of personnel still artificially minimized due to geopolitical reasons
 
If your organization is hiring now or in the near future, especially for technologists, I strongly recommend you consider the following hiring and company operational best practices as these will set up both your organization to attract and retain the best people.

Remember, the ‘art of hiring’ isn’t a guessing game or round of blindfolded pin the tail on the doneky.  People work where they feel appreciated, respected, and compensated appropriately so your organization needs to be able to demonstrate that and then operate accordingly.
 
Hiring & Company Operations Best Practices:
  • Attraction – two of the best ways to get more eyeballs on your company organically is through your existing employees and social media.  If your existing employees like where they work they’ll tell others, simple as that.  Good people attract other good people.  Some companies offer referral bonuses to their employees for helping to fill key roles.  Secondarily, social media continues to reign supreme when it comes to getting the word out to a large audience.  The trick is to determine which platforms are the best then ensure your messaging is consistent and resonates with your audience.
 
  • Sell Your Story – process by which companies build out their sales pitch to attract better talent by using a story to describe the company’s ‘WHY’; it’s a marketing strategy based around the company’s vision and mission – your reason for existing as a company.  This approach is especially powerful with younger generations.
 
  • Fringe Benefits & Perks – this isn’t just for Silicon Valley companies any longer, if you aren’t offering some of these you’re automatically in 2nd or 3rd place as an employer:
    • Retirement plans with match
    • Additional compensation via bonuses
    • Work from home programs
    • Vacation for new employees starting at 3 weeks, a 2 week offering is becoming a thing of the past
    • Employee recognition programs
    • Sign on bonuses for new hires
    • Onsite barista/ drink and or snack stations
    • Medical/ dental/ vision plans 100% paid for by employer
    • Employee referral compensation programs
    • Free lunch for employees, or onsite cafeterias with subsidized meals
    • Company ownership incentives
    • Education reimbursement
    • Paid paternal leave for parents (including fathers) beyond FMLA offerings
    • Wellness programs
    • ‘Quiet Room’ spaces which allow employees to decompress
    • Commuter assistance
    • Childcare assistance
    • Car cleaning services

I’ll admit some of the above items seem a bit over the top yet in the same breath I must also admit many of these things are becoming common place.  It’s not to say you need to do them all, but to not offer any of these perks to current and or prospective employees means you may likely find yourself losing current employees to other companies who do have them, or not being able to hire at all.  SHRM estimates the cost to backfill an existing employee is 6-9 months of their annualized salary.  This offers a good moment of reflection – should you invest upfront (perks) or pay in the rears as you look to backfill and replace employees?

Additional Best Practices:

  • Employee Onboarding Program - new employees who experienced a well-structured onboarding orientation program were 69% more likely to remain at a company three plus years.  Learn more about onboarding programs at http://www.sqr1services.com/white-papers/why-your-new-employee-wants-to-quit-part-3-finale
 
  • Incentives to Stay - Hiring a new employee in today’s market is challenging, ensuring they’ll stay employed with you after the fact is another consideration altogether. Consider implementing or refreshing your programs in areas like on-the-job training, career growth development, mentoring and employee appreciation programs.  These programs showcase an employers’ desire to invest in their employees both for the present and future.
 
  • Shorten Your Hiring Process – long gone are the days of half a dozen interviews, followed by panel discussions and presentations.  The employers today who are scooping up the best employees on the market are doing so largely because they’re acting quickly.  In some cases I’ve heard of offer letters presented to prospective hires after just one interview.  Every time a candidate takes another job while they were in the middle of your hiring process that’s time you’ve spent you can’t get back.  Act quick and be decisive.
 
  • Use a Hiring Service – most of us are in the business to be good at our chosen professions, which for most doesn’t include acting in the role of HR/ recruiter.  If you can afford the extra cost it’s advisable to partner with someone who does candidate sourcing and hiring on a daily basis as their profession.  Recruiters and personnel in HR typically understand the market and hiring conditions for their local areas well and know how to target people who are gainfully employed – a tactic called ‘direct sourcing’.  In today’s employment market if your strategy is to post and coast (put a job up on an online job board and pray for good candidates) you’re already starting off at a deficit you’ll likely never climb out of.  All hiring strategies must include a direct sourcing component to be successful.
 
  • Get Active – not everyone can afford the cost associated with working with recruiters, which for professional hiring, especially in the technology sector commonly comes with a fee of 25% the candidates annual salary.  If you can’t afford a recruiter you’ll need to get active yourself, start by jumping on LinkedIn and reaching out to candidates directly using the messaging service.  Another good practice is to attend industry or trade events with the hopes of meeting good people who could be prospective future employees.  Remember, these approaches typically don’t produce results quickly so you’ll need to invest time and remain consistent at it.
 
To attract the best of the best we need to constantly review and optimize our strategies to ensure they are both keeping up with the current marketplace while producing the results we need.  Remember, continuing to do the same thing over and over again yet expecting different results isn’t a good recipe for hiring success, it’s corporate insanity. 

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Monday Quickie – 10 Reasons Your Company Sucks at Hiring Employees

10/21/2019

 
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​After more than a decade of hiring people on a daily basis I’ve seen a thing or two when it comes to good vs. bad practices relating to the process of hiring employees.  During that time I’ve also made my fair share of mistakes in the people I’ve hired which offered up a plethora of learning opportunities.  What I've learned over the years is that making a hiring mistake can be costly and most of the time it is the employers fault the hire doesn’t work out, not the new hire themselves.

Hiring an employee is an interesting and vital part of business.  Interesting in that the end result is bringing on a new person into your company with the idea that they will fulfill a role to help the company move forward.  Vital, because hiring really is one of the most important activities a business can do outside of generating revenue.  Without revenue streaming in there is no need for hiring and no company for that matter, which is why I’ve placed generating revenue a tier above hiring.

The act of hiring is often whimsical and mythical in nature, like a unicorn.  Everyone loves to say they’re great at interviewing as they enjoy saying “I know how to pick em”, or “I’m able to sniff out the best from the worst in five minutes”.  I always enjoy a good chuckle when I hear comments like this because the reality is that these words often stand on hollow ground.  While we love to think we’re great at the process of identifying, vetting and selecting the best people the facts tell a different story:
  1. HBR did a study that found 80% of turnover is due to poor hiring decisions
  2. More than 70% of companies don’t have a specific process they follow to ensure their hiring process is streamlined and effective

With stats like this you’d think companies would focus more on their hiring process and approach to improve this area of the business similarly to how they spend endless amounts of time and money on activities like kaizen events and lean initiatives in order to improve yields by a couple percentage points. 

In the end the numbers don’t lie as they tell us a sobering story – no one is perfect when it comes to hiring employees.  However the quicker we build awareness around our actual performance in the area of hiring the quicker we can begin to improve it. 
​
Below are the ten (10) most common hiring mistakes made in business.  As you read through these make a note of how frequent an offender you or your company is with each:
  1. Candidates are not respected going through the interview process (this happens all the time and is one of the quickest ways to lose a great candidate; disrespect comes in the form of wasting people’s time, not getting back to people, treating them poorly during the onsite interview, etc.)
  2. Hiring managers have unrealistic expectations and make hiring decisions based on being able to perform immediately rather than long term success
  3. Hiring managers don’t know what they’re looking for in a candidate so they interview dozens of people hoping to figure it out along the way (this often times is an unspoken action as few people will openly admit to their peers they don’t know what they’re doing)
  4. The job description used to search and vet candidates isn’t the same as the real job responsibilities
  5. Interviewing is based around job tasks, not the expected performance results
  6. The interview process is overly complex and lengthy (it goes on for months on end with weeks of down time in between interviews or discussions, or it involves several interviews with dozens of people)
  7. The interview process fails to connect what the company’s story and mission is with a candidates career motivations are (when this happens companies are hiring people to fill a job, not a career)
  8. The company’s sole source for hiring is technology (hint – only about 11% of people find their job on the internet so if your strategy is to solely to use technology – job boards, social media - you’re missing out on 89% of the rest of the workforce)
  9. The company is reactive, not proactive, in hiring and building out a candidate pool
  10. They have entire teams or departments involved the hiring decision (often times those people aren’t trained on how to interview and don’t understand the true needs of the job)
 
Key Take Away:
The current job market is one of the most competitive hiring landscapes we’ve ever seen.  Most of the people in the US workforce have never seen unemployment figures like we’re experiencing today.  Orange County, CA unemployment rate in September 2019 was a staggering 2.9%.  Meaning, 97.1% of people who are eligible and or able to work are in fact doing so.  The numbers nationally don’t get much better, or in favor of the employer, as we’re experiencing 3.5% unemployment nationally.  The last time the unemployment rate was this low was in 1969.  What does this all mean – it’s a candidates market, not an employers market.
 
Most, if not all, the good people and therefore candidates are gainfully employed.  If you want to improve your chances of landing great employees to help grow your company you need to ensure your hiring practices are addressing and or solving the 10 hiring issues mentioned above.
 
Action Item:
If you or your company struggle to hire great people one of the best things you can do to correct it is to seek advice and an alternate viewpoint.  Ask your employees why they were for your company, learn what matters to them most and why they stick around.  Another way to gain insight is to bring in an HR or recruiting consultant to review your current processes.  Outsiders can often times see things quicker and easier than you can as they aren’t coming from a lens that is within the company.  Their outsider perspective can provide unbiased feedback on the things you need to do to attract better talent.
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Monday Quickie: 8 Reasons Why Your Company Struggles to Hire Great People

12/3/2018

 
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​​It’s amazing to learn than an estimated 70% of companies don’t have a specific process they follow to ensure their hiring process is streamlined and effective.  As a result HBR identified that 80% of turnover is due to poor hiring decisions which can be directly correlated to a lack of planning and consistent processes along the way. 

While this sounds scary, we do know what it takes to be successful in the hiring process.  We know this because we can look at where company’s struggle in the hiring process and then use that information to improve our own processes. 

The eight reasons company’s struggle to hire great people are, in no particular order:
  1. The WHY Failure: the current market is a candidates market, not an employers market therefore employers need to be able to share their story and their WHY for being in business and how that translates into a successful career with their company
  2. Don’t Know What You’re Looking For: Company’s often use the interviewing process to help them figure out what they want in a candidate.  You should know this before you ever talk to a candidate about a job.
  3. Unrealistic Expectations: Hiring manager has unrealistic expectations and makes hiring decisions based on being able to perform immediately rather than long term success
  4. Everyone is Involved: the interviewing panel or team consists of 4+ people; most of the time each person is interviewing candidates for what’s important to them, not a common agreed upon pre-existing set of criteria
  5. Inexperienced Interviewers: often times people on the interviewing panel or team don’t know how to interview people correctly therefore they tend to make decision based on if they like the person or if the interview impressed them, not if they can do the job and help the company
  6. Job Discrepancy: The job description used to search and vet candidates isn’t the same as the real job responsibilities
  7. Interview Process: it’s horrificically long, requiring candidates to jump through hoops like a tiger at the circus
  8. Disrespect: Candidates are often disrespected going through the interview process (this happens all the time and is one of the quickest ways to lose a great candidate; disrespect comes in the form of wasting people’s time, not getting back to people, treating them poorly during the onsite interview, etc.)

Key Takeaway:  Be prepared to lead your hiring process with your company’s WHY and get a plan in place!

Action Item: Craft a specific plan for your hiring process including what you need in a new employee.  Get a couple key people involved, ensure they are trained on how to interview, while making sure everyone is on the same page with what the company needs in the new person before you start interviewing.  Everyone should be interviewing using the same criteria and scoring. Decision making should be left up to one or two people, not a kumbaya group agreement.
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    About the Author

    Travis Smith is the founder and managing director of Square-1 Engineering, a life sciences consulting firm, providing end to end technical project services to companies which design, develop and or manufacture products in Southern California.  He successfully served the life sciences marketplace in SoCal for over 15 years specializing in engineering services, consulting, project outsourcing and leadership development. In 2019 he was recognized as a ‘40 Under 40’ honoree by the Greater Irvine Chamber of Commerce as a top leader in Orange County, CA.

    Travis also serves as Chairman, Board of Directors for DeviceAlliance, the only Southern California based medical device non-profit professionals organization and member of the University of California Irvine's Division of Continuing Education Advisory Board for Medical Product Development.  He holds a business management degree from California State University Long Beach and is a graduate of the Southern California Entrepreneur Academy.

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