Help Wanted: Five Ways to Overcome the Labor Shortage
In December, a National Federation of Independent Businesses (NFIB) report found that 35 of small business owners had unfilled job openings. This finding underscores small business owners' ongoing need for labor. In fact, each of the major employment sectors is feeling the pinch:
- Retailers are grappling with high turnover rates and an increasing need for skilled workers in e-commerce and customer service, among other areas.
- More than 1.9 million manufacturing jobs may be unfilled between now and 2033, according to a Deloitte report.
- The service sector The healthcare industry alone is projected to be short 100,000 workers by 2028, says Mercer.
Consider new hiring and management strategies
By engaging with the surrounding community, investing in training, leveraging technology, and fostering a positive work environment, small businesses can better navigate the labor market. The following strategies and tactics can attract and retain talent in an increasingly competitive environment:
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Expand recruitment programs
Small businesses can expand their recruitment efforts well beyond the typical go-to sources of online advertising, employment agencies, and job fairs. The U.S. Chamber of Commerce suggests creating career pathways for the following groups.
- Veterans
- Individuals with disabilities
- Formerly incarcerated individuals
- Gig-economy freelancers
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Invest in Training and Development
As technology advances, job requirements are becoming more complex. You can:
- Develop an apprenticeship program to build a skilled workforce.
- Partner with educational Institutions: Collaborate with local community colleges and vocational schools to develop tailored training programs meeting your industry's specific needs.
- Establishing "upskill initiatives": Train employees in new skills relevant to their existing roles, to promote productivity and job satisfaction.
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Leverage tech to the max.
Automation of all kinds, whether it's in manufacturing, inventory management, sales or customer service, can streamline operations and reduce the burden on employees, so they can lend their brains to more complex projects.
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Focus on employee well-being and better benefits
America's small businesses understand the value of their benefits packages in maintaining employee satisfaction and productivity. Reinforce this thinking by providing comprehensive benefits packages that include:
- Health insurance: Offering health coverage can enhance employee satisfaction and retention.
- Mental-health resources: Provide access to mental-health counselling, education, and wellness programs.
- Paid time off: Generous vacation and sick leave policies can improve work-life balance and boost employee morale.
- Employee-recognition programs: Acknowledge and reward employees for their contributions. This can motivate them, while also fostering a sense of belonging.
- Flexible work arrangements: Implement flexible shifts or remote work options if/when feasible. Many skilled workers value work-life balance.
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Build a strong employer brand
You've created a great place to work, so get the word out! When you celebrate your firm's culture and values on social media and job platforms, you're increasing your visibility to potential candidates.
Labor shortages remain a reality for small businesses, However, you can overcome some of the hurdles of getting and keeping great people by trying some of these ideas. In doing so, you'll be creating a smarter and more contented workplace.
Did you know?
41% of small business owners say they plan to increase hiring this year.
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