The Jobs Churn Rate

Americans are quitting their jobs like crazy.

The latest monthly “Job Openings and Labor Turnover Survey” (JOLTS) showed that in December, the total number of quits was 3.1 million, the highest level in a decade, while the quits rate was 2.1%, the highest since April 2008. The rate takes the number of quits divided by the number of employees who worked or were paid for work.

If people are quitting their jobs, it may suggest that they are confident in the labor market and are receiving better-paying opportunities elsewhere. However, it may suggest a higher level of mismatch between opportunity and ability.

The report also showed that there were 5.6 million job openings during December, the second-highest ever, and more than the expectation for 5.41 million. The hires rate was 3.7%, and the layoffs and discharges rate was 1.1%.

Efficient vs. Effective Distribution of Advice

The recruiting and placement of ability must be improved for effectiveness, not only optimized for efficiency. By solely focusing on optimization past solutions are merely failing faster and faster to recruit and place ability at best-fit. Past results are horrible evidenced by the percentage (72% according to Gallup) of workers who are not engaged at work. Currently, in my opinion, there is not any leadership to improve recruiting and placement effectiveness in the long-tail of markets. So, we are going to be that leader.

A 2011 Harris Interactive poll commissioned by the National Career Development Association (NCDA) provides feedback that is very clear regarding those who provide career advice: career practitioners are a vital resource for the livelihood of workforces and are underutilized relative to their potential need and value. In the poll, 24% of adults report that they have visited a career practitioner and 86% of them found it to be helpful. However, there are not enough career practitioners, in the traditional sense, to cover the masses, and there never will be, in the traditional sense.

Instead, Placement Loop embraces the role of domain expert to deliver recruiting and placement advice that is “good enough” to serve the masses. Indeed we are architecting our technology to support a layer of domain expert networks that will serve the market. To that end, our placement ecosystem design is supportive and accepting of the shift away from control and coordination at the center towards collaboration and discovery at the edge. Our design is about participants over platforms and individuals over institutions.

In addition, Placement Loop views human capital like financial services companies view financial capital, that is, from a traditional brokerage and distribution perspective. We use proven advisory models that effectively distribute financial product to design solutions for the distribution of ability, as if it were product. Not only does this provide the insight to recruit and place permanent workers at best-fit but it also addresses the growing market of independent workers.

The solutions are simple although quite complex to execute. The good news is that technology and methodology have advanced and network effects are more understood to increase the confidence to deliver utility, that is, effectiveness.

Placement Loop intends to motivate the delivery of recruiting and placement advice from domain experts who are already embedded in talent-based communities. We intend to provide a platform for all recruiting and placement participants in those communities to save time in their quest to make better decisions quicker. Sound familiar? That’s the foundation of how the financial services industry works.

Placement Loop is designing a solution for domain experts to become network entrepreneurs in the industry or sector that they are passionate about.

How profitable will it be in the future to be a network entrepreneur in this space? Sign up at our website to learn more when we open up your sector or “loop”.

Blog Split into Referralution and Referralogic

This blog will stay directed towards

  1. human resources personnel, career services professionals, human capital and workforce thought leaders or influencers, and ability aggregators who are interested in being a change agent

Referralution posts are directed towards

  1. placement facilitators (some of which are full-time career agents, recruiters, and others who are only part-time referrers to help place people)

Referralogic posts are directed towards

  1. talent seekers (the opportunity providers) and
  2. candidates (those with ability)