What's Really Going On with the U.S. Labor Shortage? (Part 2)
After a first video was created about the labor shortage with a unique, casual approach, it was viewed over 8,000 times and a large number of comments were submitted, David Gilbertson and John Frehse knew there was significant interest. They also knew that people did not just want to discuss the problem – businesses already know there is a major problem. They wanted solutions. In Part 2 of this series, John Frehse and David Gilbertson tackle many of the solutions to the labor shortage and debate what is and is not a reality moving forward. Key Takeaways:
- The labor shortage is not a direct result of the pandemic and thinking it is will not allow businesses to think critically about solutions.
- Increased employee benefits are a reality and are not going away. To stay competitive, employers must think about compensation differently.
- Businesses must way revenue decisions with employee wellbeing. Great companies are “firing” customers to protect employee hours and reduce overtime to sustainable levels. Although some employees want every hour available, many employees are leaving jobs that will not allow them to have reasonable amounts of time off.
- Engaging the workforce regularly to show appreciate is critical. Many hourly employees feel isolated and unappreciated. This leads them to devalue the work and find more “important” work somewhere else.
- Shift schedules including alternatives that increase the number of days off are being used strategically by more progressive employers who need to find cost-free ways of hiring and retaining top talent.
The real work required to be more competitive and drive results is often ignored for other initiatives until a critical level of pain is achieved. Businesses operating in North America are almost universally feeling this pain. What they decide to do about it will write the next chapter of business growth or failure.
© Copyright 2022. The views expressed herein are those of the author(s) and not necessarily the views of Ankura Consulting Group, LLC., its management, its subsidiaries, its affiliates, or its other professionals. Ankura is not a law firm and cannot provide legal advice.