By 2023 and Beyond, we can overcome the labor shortage

Estimated read time 10 min read

More workers than jobs are available

This is the most basic definition of a labour shortage. We’ve heard it a lot over the last few years and we won’t stop hearing about it. You need assistance. You have the opportunity to grow. There is a lot of work to do. There doesn’t appear to be anyone who can help you.

The labor shortage has been a problem for many years, but it’s not the first time. It can be because workers retire in large numbers, creating a skill and worker gap. Future generations will eventually fill this gap. Localized shortages can be caused by demographic or geographic shifts. New types of jobs can require skills for which the existing pool of workers is not qualified or interested. Seasonal businesses may also experience labor shortages when they rely on workers who have other factors. The school year hasn’t ended yet, or foreign workers can’t enter the country.

We heard about businesses that were attempting to recover from the pandemic but, due to a labor shortage, had to cut back on hours and services. Things are different now. Employers are still dealing with a labor shortage that is still driven by health issues and caregiving duties, but now there is a new twist: a higher turnover rate as workers reevaluate their priorities. They take advantage of this to move to enticing jobs offering better benefits and pay.

We will take a closer look at the situation and give you some tips on how to attract workers to your business and bring it back to full staff.

What are the signs that we are currently experiencing a labor shortage in our country?

data from the U.S. Bureau of Labor Statistics show that unemployment has decreased since March 2023. It now stands at 3.4%. There are more people finding work, but not enough to fill the 9.5 million job openings.

This means that employers face two challenges at once – keeping their existing workers and finding new employees.

What is the impact of the shortage on those affected?

The service and hospitality industries are the ones that get the most attention in the media in relation to a labor shortfall. Particularly, the industry.

The U.S. Bureau of Labor Statistics predicts that the demand for chefs and other cooks will increase by 6 percent in the next decade. According to Federal Reserve other industries, including manufacturing and construction, are also feeling the pinch.

The demographic impact is also significant, and some workers are affected more than others. In April 2021, men accounted for the majority of job growth while women either lost their jobs or stopped searching for work.

Why do these workers not return to their former jobs?

  • Some workers have left the industry permanently due to changes over the last few years. They had to reevaluate their priorities during the lockdowns and were able to get enough support and time to train for a different career.
  • The employers are eager to hire, but the workers are not as quick to accept jobs. It’s a workers’ market and employers aren’t catching up with the fact that employees today want different benefits from before the pandemic.
  • Some businesses are facing a strange situation where they cannot meet demand because of bottlenecks in their supply chain. The supply chain isn’t able to meet demand, so they aren’t hiring.
  • Some workers find themselves in limbo when they are trying to provide care for children or the elderly.

Businesses are forced to change their operations when there aren’t sufficient workers. They may overwork their employees or reduce their ability to service customers. It may lead to negative effects on workers over time. Businesses may adjust to working with fewer employees, or they might expect too much from their current staff.

The new status quo

Workers today are looking for tangible benefits in addition to the obvious ones, such as better pay and healthcare. Flexible scheduling, on demand pay, and benefits that ease the lives of workers will give employers a competitive edge when it comes time to hire and retain employees. Employers who want to retain talent and win the war for talent should keep in mind the following benefits.

How do you remain competitive? Attract skilled shift workers

In order to close the gaps in labor, it is important to attract shift workers. There are many creative ways can attract new workers.

Offer benefits

It’s a market for workers when there’s a labor shortage. The job with the best benefits can be found by shopping around. Why would you work at a restaurant if the one across the street offers a better deal for the same salary?

You can offer benefits ranging from paid vacations to healthcare. You might want to offer bonuses for referring friends or hiring incentives. You are the best person to know what your employees need and want.

Benefits can also be less tangible, like a flexible schedule of work (which we will discuss in a moment). It’s important to provide something extra to employees, in addition to their hourly wages.

Pay well.

You’ll have to raise your wages. In recent years, there has been much discussion about the viability and fairness of the minimum wage. Many workers feel that they are underpaid for their work. Some states pay as little as $7.25 as a minimum wage. It’s difficult to survive on that.

Many reasons are behind the reluctance of businesses to raise wages. Supply cost increases, decreased or unpredictable demand from customers, and profit margins specific to the industry are all factors that can affect businesses’ willingness to increase wages. For example, restaurants are notorious for their tight profit margins.

There is also a problem with competition.

While restaurant workers’ pay is rising, warehouse workers also see a pay increase that exceeds that of the restaurant sector. is a tough industry to compete with when other industries pay more.

It is possible to increase pay. If you make adjustments elsewhere, it’s not necessary to close your business.

  • Reduce your expenses. Your budget will be under constant scrutiny. You should cut costs wherever you can. Look for ways to cut costs, whether it is in services, supplies or advertising.
  • Increase your prices. Your prices will rise when the cost of your supplies increases. It’s the same when payroll costs increase.
  • Adjust the hours you are open. You may be able to improve your bottom line if you adjust your opening times. You’ll need to adjust your operating hours if you are having trouble finding staff.
  • Trim away the extra. You may have provided a lot of services to your customers in a previous time. It’s the right time to streamline your business. It’s too expensive in terms of time and energy.
  • Discover new revenue streams. Try to find new revenue sources, especially passive income that does not require intensive labor.

Consider this an investment. This is an investment in the future of your company and its people.

Create an environment that is safe and respectful at work

After a pandemic, workers are still concerned about their safety. Find ways to demonstrate that you care. Some employees want to work for an employer who is concerned about safety. For example, requiring that workers be vaccinated.

It is important to feel valued and welcomed, as well as that their work is making a positive contribution.

In the past few years, there has been a lot of emotional stress, chaos, unease and fear. You’ll need to be respectful of others’ differences in order to achieve a harmonious work environment.

Your actions now in terms of safety will determine what your employees can expect in the future. You will need to update your employee handbook from the past few years.

Career growth opportunities

All of us want to feel a little bit of hope.

Shift workers had to take a break from work for a part of the year. This gave them time to reflect on their lives, their jobs, and their goals. Many people are looking for career opportunities, so focusing on these at your workplace is a great way to attract new employees.

Consider it part of your employee benefits. Paid training, certifications, conferences, a path to advancement, regular raises, etc., are all ways of showing that where you start is not where you will remain forever.

There are many ways to show that you value your employees and don’t view them as cogs. It doesn’t matter if you rotate them through different tasks and duties to give them a taste of other types of work. This will help break up what might otherwise seem like a “dead-end” job.

Easy job application

Reduce the barriers to entry and make it easier for candidates to apply for and find jobs.

It is important to provide clear information about the position, its duties and salary so that candidates can quickly understand what’s on offer. Do not make the candidates dig around for information, or force them to go through the entire process before they find out.

Create internships and apprenticeships that appeal to different types of employees.

Flexible scheduling and work environment

It is important to get your shift schedule right. The wages alone won’t be enough because quality of life is also a factor.

Re-entering workers have experienced the benefits of work-life harmony and are unlikely to abandon it. They want to have more flexibility in their jobs, and flexible schedule is one way to achieve that.

A shift scheduler such as When I Work can help you achieve this. You can easily create open shifts and let workers swap shifts or request shifts to fit their schedule. You can give your employees some control by making shifts more flexible. This allows them to have some control over their lives while still getting the coverage that you need.

It is not easy to transition from a pandemic to a new work environment with potential labor shortages.

Implement strategies to retain your new employees once you have hired them. Reset your business model with the goal of increasing wages and benefits. You’re already busy, so start by using a tool to schedule shifts that empowers employees while reducing your management burden.

Retain employees during a labor shortage

It’s just as important to keep your existing employees happy and part of the team as it is to hire new ones. You can offer them new benefits, such as pay-on-demand. This will increase employee satisfaction and engagement, and reduce turnover. You won’t have to hire people over and over again. In fact, on-demand payment has been shown to increase employee loyalty. 78% say that they are more loyal towards an employer who offers it.

You can take proactive measures to avoid a labor shortage. Concentrate on benefits that will keep your existing staff and attract new employees. When I Work is here to help. Your employees will be happy to have a single place to manage all their work and schedules.

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