So many business owners are wondering when the production shortage will end to keep up with demand. There are overwhelmed professionals in just about every industry, causing some people to turn away jobs, clients, or customers. The labor shortage is a serious issue that must be treated as such. The first step to navigate the labor shortage is to understand it better.
Hiring Challenges
With the lockdown restrictions being lifted and the federal stimulus payments going out, there is a market where people want to spend more on goods and services, and many employers feel as if they need to hire immediately to keep up with the increasing business demands. Job openings in the U.S. have nearly doubled since last year, and it is projected to continue to grow. However, employers are finding it very difficult to fill roles because many people cannot or do not want to go back to work. Candidates’ health and safety are still employers’ top factors impacting their hiring processes. No one is sure when the labor shortage will end, but economists suspect it will dwindle as stimulus expires. Although, unless employers establish more effective changes, it is reasonable to believe that the shortage may last longer. Consider the employees who have already left previous jobs to pursue new jobs where they feel more secure and valued. The importance of staffing liability insurance cannot be stressed enough, as this can be the safety net for a business to continue to thrive. Hiring managers may need to consider widening their talent pool to attract more candidates right now.
Pay Raises
A tight labor market is directly associated with wage growth as so many businesses seek workers. The money offered to candidates will certainly make a difference as companies compete for talent. In fact, more and more candidates consider their wage as the ultimate deciding factor when deciding on a position. Whereas in the current status, a job change can even mean collecting or not collecting an unemployment payment. The labor shortage is pushing many employers to increase wages. There is an increase in the average hourly earnings, and at the same companies, what they consider minimum wage has increased to attract more workers.
Advancement Opportunities
Employers need to consider the youngest generation hitting the job market, Gen Z, as they represent over a quarter of the population. There are many new graduates ready to work and hoping to start off their careers. Gen Z individuals are known to certainly want more than a dead-end job and seek a clear career path. It is helpful for recruiters to market positions as one with job training and growth potential. Even offering a title of where they can go from there and what that promotion would include can make a huge difference.
Cross-training
Solving labor shortage issues does not necessarily have to be as difficult as it may sound. Since the skills gap continues to widen, investing in learning and development programs for your employees may be how talent is retained. Cross-training is highly recommended to manage risk and promote productivity even when staff is short. Cross-training employees can help create a flexible workplace and more predictable schedules.
About World Wide Specialty Programs
For the last 50 years, World Wide Specialty Programs has dedicated itself to providing the optimal products and solutions for the staffing industry. As the only insurance firm to be an ASA commercial liability partner, we are committed to that partnership and committed to using our knowledge of the industry to provide staffing firms with the best possible coverage. For more information about Staffing Professional Liability Insurance or any other coverage, we have available to protect your staffing business, give us a call at (877) 256-0468 to speak with one of our representatives.