Labor shortages are everywhere, hampering post-pandemic recovery in multiple industries and states. Millions of people have taken stock of their lives and decided to quit their jobs or take their time to find the next one.
This situation coincides with a surge in a renewed demand for goods and services, resulting in higher prices and inflation. In August, the U.S. government reported over 10 million new jobs open. This number is larger than the number of people who are between positions.
Here are some of the ways companies across the nation are tackling this issue. Perhaps one (or more!) of these methods can help you find the staff you need to get your company back on the playing field.
Holding Drive-Through Job Fairs
Although the business world has opened to a degree following the availability of vaccinations, some people are still hesitant about exposing themselves to risk. This concern, along with the chance of a breakthrough infection, is one of the prime factors driving the current labor shortage.
A drive-through hiring event or job fair is a non-contact adaptation of an on-site event. One or several companies in a similar industry offer information on employment opportunities to job seekers who stay in their cars for the duration of the event. This concept isn’t new, but it has grown in popularity in recent months as employers try to find convenient, alternative ways to connect with people ready to work.
We have seen a few different types of drive-through hiring events and job fairs. [quotesright]At “on-the-spot” events, candidates are interviewed in their cars, and offers are potentially made on the same day. [/quotesright]
In a “grab-and-go” event, job seekers pick up a bag filled with company information, employment opportunities, and application instructions they can review at home. These events are ideal for companies with several positions to fill.
Offering Sign-On Bonuses
In the past, this was common practice for executive candidates, but recently we’ve seen it trickle down to the level of servers at McDonald’s. Current recruitment ads offer bonuses of up to $1,000 for all staffing levels, with the average crew member getting $200. The first $100 is payable on sign-up, and the balance after the probationary period is complete. The bonuses are proving to be a popular idea, particularly in the hospitality industry, whose operations depend heavily on labor.
[quotes]The restaurant industry is having notable success using teenagers, who have become one of the largest segments of the working population.[/quotes] In May, workers aged 16 to 19 comprised 33.2 percent of the national workforce, the highest figure for teen workers since 2008’s Great Recession.
Sticking with Remote Work
If the past year and a half have proved anything, it’s that lots of work can be done from anywhere, without long commutes on crowded highways, buses, and trains. Some people have moved to quieter or rural areas, while others have changed cities, provinces, and even countries.
Most are still in the same jobs they held before the pandemic, and they want to stick with remote work. [quotesright]A Bloomberg survey showed 39 percent of all U.S. adults and 49 percent of Millennials would quit rather than go back to being in-office full-time. [/quotesright]
Employers are discovering they can embrace this viewpoint and reap the benefits of lower employee stress, better work-life balance, and financial savings. Alternatively, they can reject it and join the droves of companies trying to fill vacancies with people who happen to live in their vicinity.
[quotes]Research shows 72 percent of employers agree that remote work has a high impact on employee retention, while 90 percent feel flexible working arrangements increase morale.[/quotes]
Using Non-Permanent Workers
Contract staff, consultants, and freelancers are all noticing the current rise in demand for their services. The tight labor market has resulted in a strong need for qualified, professional remote workers specializing in specific fields. Some of the highest-demand jobs are in technology, such as front-end developers, user experience consultants, and digital marketing experts.
Companies can work with non-permanent individuals on a time or per-project basis, a fixed-term contract, or on-demand. [quotesright]However, companies that prefer to remain uncommitted risk losing their qualified independent workers to employers who are prepared to offer retainers. [/quotesright]
Other ways to get around the problem of needing full-time staff include using interns, call centers, or leveraging technology to replace some aspects of human work. Call centers can be located on foreign soil, for one thing, meaning most of the employees are non-U.S. citizens. In many instances, they can also work remotely from their homes using a dedicated telephone line to provide first-level technical support to multiple industries worldwide.
Outsourcing to Providers
Outsourcing is another option that has been popular in the past and could do so again. The challenge is that many providers are in the same position themselves, unable to give service because they lack the qualified staff to do the work. However, by leveraging economies of scale, outsource providers are in a unique position to pay top rates for the best talent because they can recoup the investment by serving a wider number of clients.
The Final Word
The best option for most small to mid-sized businesses is a combination of some or all of these strategies. Instead of laying down the law or trying to resurrect the way things were done in the past, now is a good time to speak with your top employees individually and find out how they see their future with your company.
[quotesright]Be open-minded and flexible and get everyone’s input before deciding on an approach. [/quotesright]
The chances are good that whatever your existing workers want to stay with you, replacing them will require agreeing to the same – or very similar – options. So unless you actively want someone to leave and open up a space for a replacement, we suggest being as open to possibilities as to your team’s requests.
Resources
- https://www.gartner.com/smarterwithgartner/9-future-of-work-trends-post-covid-19
- https://www.reuters.com/business/how-post-pandemic-labor-crunch-is-curbing-us-manufacturing-2021-05-21/
- https://hitconsultant.net/2021/09/17/optimize-staffing-shortages-post-pandemic/#.YWCcjy8r1O0
- https://commalert.com/resources/blog/call-centre-services-can-fill-the-gaps-of-post-pandemic-staff-shortages/
- https://www.ctvnews.ca/health/coronavirus/stress-staffing-shortages-brought-on-by-covid-19-causing-nurses-to-leave-the-front-lines-1.5582781
- https://www.usatoday.com/story/money/business/2021/07/24/teen-workers-businesses-staffing-shortage-labor/8080935002/
- https://www.wsj.com/articles/restaurants-serve-up-signing-bonuses-higher-pay-to-win-back-workers-11619359201
- https://www.forbes.com/sites/jackkelly/2021/08/10/a-record-setting-over-10-million-new-jobs-are-now-available/?sh=4da326091c17
- https://www.bloomberg.com/news/articles/2021-06-01/return-to-office-employees-are-quitting-instead-of-giving-up-work-from-home
- https://www.flexjobs.com/blog/post/benefits-of-remote-work/
- https://bhcagroup.com/remote-workforce#
- https://www.latimes.com/business/story/2021-10-03/tight-talent-market-spells-opportunity-for-skilled-freelancers
