US labor market is going through a crunch these days. Hiring and retention of employees is always a challenge for employers as the candidate pool is shrinking. Recently, a new trend has emerged where the new hires work at a place for a few days and then move to another workplace for better paid wages. This phenomenon is termed as “ghosting coasting”.
How Does Ghosting Work:
There are around a million more positions in US right now than the applicants looking for jobs. The surplus supply of jobs gives more bargain power to potential candidates along with freedom to switch the job easily. The current trend of ghosting is currently prevailing in US service industry but is becoming a challenge for manufacturing and other sectors too.
Ghosting Coasting as a Challenge:
Ghosting is causing grave concerns for US employers. The severity of the issue can be identified through the fact that Federal Reserve Bank of Atlanta has mentioned it in the Fed’s latest round up. “Retention continued to be a growing problem for firms. Restauranteurs noted concerns over ‘ghosting coasting,’ where a new hire works for a few days. Then he/she moves on to the next restaurant without notice before they are let go due to lack of skills”, said the Atlanta Fed.
This practice is not new but is spreading rapidly as the job openings have outpaced job applicants. This has given the job seekers a certain measure of negotiating power. They find it easy to switch to another job. This is causing retention challenges for the employers. A food service recruiter claimed that she scheduled 58 interviews for jobs ranging from $14 to $20 and only 27 applicants showed up.
The Workers Stance:
The Fed’s linked the ghosting phenomena with workers being unqualified for the jobs. The workers claim that ghosting is occurring due to misleading job description, inadequate trainings, poor compensation plans and over burdening. Matt Murphey, an Oregon restaurant worker told an insider that “The main reason employees are ghosting employers is they simply no longer have to put up with horrible working conditions, terrible bosses, low pay, and being overworked”.
It appears that the food service industry is the biggest victim of ghosting and the trend is rising in other employment sectors as well.