Employment Is on the Upswing, but at a Decidedly Deliberate Rate
The economy is improving, and local businesses are beginning to hire again, rather than only filling positions critical to their operation. Some large firms are pursuing growth strategies, but small to mid-sized companies are likely to proceed with caution until they are
convinced the economy has,
indeed, stabilized.
Kevin Lynn says the employment picture in Western Mass. is percolating.
“We’re starting to see more hiring, and job seekers are telling us they are getting jobs in increasing numbers,” said the manager of business and youth services for the FutureWorks career center in Springfield.
Local statistics mirror a report issued in January by the Bureau of Labor Statistics that shows 257,000 people were hired by the private sector during the month, marking the largest gain since April 2011.
“A total of 317 FutureWorks members reported finding work in January; that was a 30% increase over the 244 who found jobs in January 2011,” Lynn said. “In addition, employers in the Greater Springfield area posted 410 openings, which is a 16% increase from 354 jobs that were posted a year ago. If this continues at a rate of 5% to 10% a month, I will be happy.”
But many business owners are still not ready to expand their payrolls. “An employer told me business is good, and he feels like he should be hiring, but he is not sure the recovery is real,” said Lynn. “Employers don’t want to hire and then have to lay people off. It’s a dilemma people are facing because many still don’t think we are quite over the hump. They are not seeing a blue sky — there are still clouds, so they are not going to hire unless they absolutely have to.”

Kevin Lynn says there is often a gap between the hard and soft skills employers desire and what applicants actually possess.
Bud Delphin, director of programs and services at CareerPoint in Holyoke, agrees that the employment picture is improving. “We are seeing a slow, steady increase in job offerings. It’s certainly not a swell, but it’s a definite improvement over the last few years,” he said.
Delphin has noticed a significant decrease in the number of people lined up in the morning to speak to the CareerPoint employment specialist, which is a sign of improvement. “The numbers have clearly declined in the last month or so,” he said.
But, like Lynn, he has talked to employers who are skittish about creating new jobs. “They’re hedging their bets. They want to be sure the economy is on the upswing. Once they become more confident, they will be more apt to hire.”
He added that many companies are not rushing to fill or create new positions because they don’t see a need to do so. “They managed to survive with a smaller workforce, so they won’t bring back the positions they eliminated,” Delphin said. “Companies want to grow, but they want to do so in a sensible way. It has to be financially feasible.”
Moving Forward
Several large firms say they have continued to grow throughout the recession. Kathleen McCormack-Batterson, vice president of executive recruiting at MassMutual, describes their hiring outlook as “very strong.”
“We are continuing to recruit skills and talents to fill needs for strategic areas, and right now we have 167 positions open,” she said, adding that the company filled 600 positions last year, and 60% of those were external hires. “We are constantly hiring in our three call centers to support our businesses; last year we had more than 200 entry-level positions.”
MassMutual is also expanding its information-technology department and seeking applicants skilled in innovative technology, as well as those with more typical backgrounds, such as software and application developers.
Two months ago, the company launched a new initiative to add lean-technology methodology. It plans to hire two assistant vice presidents as well as 11 change agents whose roles will depend on their credentials in this field.
“It gives us an opportunity to hire people from manufacturing and the consumer-goods area, and allows us to bring in people with diverse thinking and new industry experience,” said McCormack-Batterson. “It’s an exciting time for the company. We are also training staff who will take on some of these roles. We are fiscally sound and strong and are consistently hiring in order to support the growth of business across the board.”
Yankee Candle, another of the region’s largest employers, has also been hiring consistently.
“We are fortunate that we have a brand that resonates with the consumer,” said Jason Chateauneuf, director of Corporate Staffing and Administrative Services, as he discussed the company’s 43-year history in the Pioneer Valley. “We have a great brand which has helped us retain and attract qualified employees. We have added more than 100 new positions in the last year at our corporate facilities, as well as hiring people for seasonal positions. We are cautiously optimistic about 2012, will continue to pursue our growth strategy, and hope the economy will continue to rebound.”
Smith & Wesson in Springfield has also experienced a noteworthy increase in business. “We have been very busy in the last year and a half,” said Bill Lachenmeyer, vice president of Human Resources.
The company added 220 jobs in the past year, and he expects hiring will continue if the demand for its product remains at its current level, he said, adding that some hires received training through a Massachusetts Manufacturing Extension Partnership that provided the company with resources to train people in an on-site mobile facility.
“We are also doing a lot of preparation work to introduce a training program for our hourly workforce,” Lachenmeyer said, explaining that the education will focus on technical skills.
Lynn expects this may become a trend, especially in precision manufacturing. “You may see smaller employers banding together to provide training,” he noted. “They are looking at the labor market and saying they really need to grow their own pool of employees or they will be in peril, because there are waves of retirement coming.”
Skills Gap
Health care accounts for the largest number of jobs in the area, but Lynn said the industry is in transition due to uncertainty related to reimbursement from the federal government.
Many facilities are laying people off, including UMass Medical Center, which will affect Wing Memorial Hospital in Palmer. “Large [health care] organizations are struggling with cash flow and being forced to make decisions,” Lynn said.
There is also a skills gap that prevents many people from getting jobs.

Jean Jackson says Baystate Health has jobs available, but most require advanced education and training.
However, 250 people have been hired to staff Baystate’s Hospital of the Future expansion, scheduled to open March 2. “About one-third of these were entry-level positions, and we worked with the local one-stop career centers to recruit individuals who were unemployed,” Jackson said, adding that Baystate wants its workforce to reflect the communities its serves, and bilingual applicants have a decided advantage.
The majority of the 350 positions that Baystate has open at present are for nurse practitioners, surgical nurses, physical therapists, and related fields, in which experience is a key qualification. “We are not hiring a lot of new graduates,” said Jackson. “We have been thoughtful about our hiring and will continue to be, as health care reform is driving some significant change. Organizations are trying to figure out what the new health care reform and delivery model will involve.”
Still, the system anticipates a significant number of positions will open up within the next 10 years as Baby Boomers make the decision to retire. Thus, it has formed partnerships with local high schools and colleges to bridge the gap.
In addition to experience and education, there is another roadblock in the way of hiring: the number of job applicants who lack soft skills. In fact, the gap is so pronounced that Delphin said a large part of his agency’s work-readiness program is devoted to understanding workplace expectations.
McCormack-Batterson said it’s always a challenge to find people with good soft skills for both senior and entry-level positions. “Young people haven’t had exposure to business, so we look for potential. Our goal is to train and educate people to work effectively in an organization.”
Lynn said larger companies like MassMutual have the resources to groom people, but small to mid-sized companies don’t have that luxury.
“They need someone who can get the job done now; his was a trend prior to the recession, but it may have been exacerbated by the changing nature of the employer-employee relationship,” he told BusinessWest, explaining that new employees often lack confidence that their positions will be permanent, and, as a result, are less inclined to give their all to a job.
“They feel if things change, they will be gone, so they have become more self-centered. They are no longer asking ‘what can I do for my employer?’” Lynn said. “And this is not just an issue for young people.”
Positive Outlook
Still, overall, the employment picture is becoming brighter.
“A year ago we were up and down,” Lynn said. “But we are moving in the right direction; job seekers report they are finding more work, and employers are posting more jobs. January was a really good month, and a 30% increase in the number of people who found jobs was phenomenal.”
So, although the economic forecast may still be cloudy, light is beginning to shine through.
“It’s not significant,” Delphin said, “but the trend is changing.”























