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When Will Aviation Companies Start Hiring Again?
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When Will Aviation Companies Start Hiring Again?
By Chris Myers
“When will aviation businesses start hiring again?” is a question on the forefront of nearly everyone’s mind these days as, let’s face it, everyone’s life is deeply affected by the uncertainty surrounding the economy. From my vantage point, as the long-time aviation employment counselor, the real question is, “When will the aviation sector feel SAFE enough to hire again?” Through formal and informal discussions — in corporate offices as well as the personnel on the flight line— the collective answer couldn’t be more clear: “When the financial impact of the health care reform bill is known.”
On Sept. 23, 2010, the first component of health care reform, the Patient Protection and Affordable Care Act, also known as ACA, went into effect. In theory, the reforms are intended to help small businesses – defined by the Small Business Association as an independent business having fewer than 500 employees. Considered the “engine that moves America,” small businesses represent a whopping 99.7 percent of all firms, employ over half of the private sector, pay 44 percent of the total U.S. private payroll and have generated 64 percent of net new jobs over the past 15 years.
There’s no denying that small businesses are the backbone of our local and national economies. Additionally, there’s no denying that high health care costs have hindered both small business owners and large aviation contractors for more than a decade. The average annual family premium for workers at small aviation firms increased by 123 percent from 1999 to 2009. Employers just don’t know how they will play out, and that uncertainty has caused them to become cautious in a number of ways, particularly when it comes to hiring.
As employers wait out the effects of the new provisions, those who have tapped out their unemployment benefits — are desperate for work, and many are taking jobs with lower wages. That reality has lowered workers’ expectations when it comes to wages, and employers have quickly become aware of that expectation. In fact, a large portion of positions are now being filled by employers' second or third prospect. Many applicants find a 25% reduction in salary or a lesser job title too much to swallow.
Do I think the majority of aviation employers will ease off the brake and hire again? Most definitely. In 22 years of aviation related experience, I have seen many employment cycles. However, this one has been a real whopper. The cycles of hiring and job freezes I’ve seen over the years haven’t endured an economic downturn quite like the one our country is currently experiencing.
I predict that between now and 2014, as we witness the good intentions and theories behind health reform play out, aviation firms will see their roles increase as negotiators of mutually beneficial relationships between employers and employees.
Chris Myers, is a former air traffic controller and holds licenses and certification as a commercial pilot, flight instructor, instrument instructor, tower operator. He currently manages Career Transition workshops for military personnel across the country.
Posted On November 02, 2010
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