3 strategies companies struggling with labor shortage should adopt
Here are three strategies businesses should implement to meet their hiring goals and empower potential employees to get back into work.
Bloomberg reported recently that the term “labor shortage” was Googled more times in May than in the entirety of the search engine’s history. This issue is dominating US headlines at the moment, and there is rightly a cause for concern.
The unemployment rate is still at a high rate of 5.8%, yet the Bureau of Labor Statistics’ most recent study revealed that there were 9.3 million job positions unfilled in May, revealing a troubling disconnect between job seekers and employers. This crisis is experienced across a diverse range of employers, from huge multinationals to small businesses, and from white-collar companies, such as banks, to blue-collar industries like manufacturing, hospitality, and retail.
One of the main reasons experts have cited is the government’s $300-per-week unemployment benefits that Americans have been receiving to weather the financial storm during the COVID-19 pandemic, which some politicians and business leaders have criticized as disincentivizing people to get back into work. Other likely contributing factors are increased health and safety concerns among frontline workers and issues surrounding childcare.
Related: 4 employee benefits that can make employers stand out in the talent recruiting game
On top of this, there has been a significant boost in consumer spending, particularly in e-commerce, which has grown over three times faster than pre-pandemic in the US. Companies such as Amazon and Uber are in desperate need of workers to fulfill this spike in demand but are struggling to fill job posts.
So, amid this labor shortage, what strategies can businesses implement to meet their hiring goals and empower potential employees to get back into work?
1. Offer enticing employee benefits
Perhaps the most obvious way to attract potential candidates is to increase salaries, and this strategy has been adopted by huge companies such as McDonald’s, Chipotle, and Amazon. Under Armour announced in May that it would raise its minimum wage from $10 to $15 per hour, whilst Bank of America also declared salary hikes, from $20 to $25 per hour by 2025, CNN reported.
Another possible incentive is a hiring bonus that some companies have offered to new employees. These bonuses were previously only reserved for top-tier jobs like CEOs, but they are now frequently being used to attract entry-level workers in manufacturing and the fast-food industry. Some experts have suggested this is a potential silver lining of the labor shortage, as it seems to be triggering organizations to pay fairer wages and empower workers.
However, for the many companies that are not in a position to offer competitive salaries, many other benefits are worth investing in. One way is through rewarding employees a bonus on their monthly paycheck for referring other qualified candidates to join their company. It is also advisable for organizations to review their benefits packages, including compensation, health and life insurance, and paid annual and sick leave. Since the pandemic, workers have been more health and safety-conscious than ever, and providing these benefits could give them the reassurance they need to start working again.
Likewise, a generous child-care plan could attract parents who have had to pick between childcare and work amidst school and day-care closures. According to the Bureau for Labor Statistics, there are 8.1 million women out of work in the US, and experts predict that in many cases, this could be due to childcare-related issues.
2. Promote company culture
While wage incentives and benefits are a clear way to help meet hiring goals, these are proving to not be enough by themselves. Attitudes are shifting when it comes to what people want out of work, with newfound importance being placed on purpose, balance, and flexibility. This could be one indicator of why so many are staying voluntarily unemployed.
A survey carried out by employment marketplace ZipRecruiter in April found that job seekers have become more selective when job hunting and less pressured to take the first job offered to them, in comparison to the same survey conducted in 2018. HR departments should respond to this by ascertaining whether there are appealing reward and recognition schemes in place, clear career progression, and flexibility of hours or a work-from-home arrangement.
Mental health is also a rapidly growing concern for many workers. With stress, burn-out, and social isolation at the forefront of public discussion, candidates are searching for companies that make work-life balance a priority. Adopting workplace wellbeing and wellness programs that offer a range of emotional and practical support and facilitate exercise and social interaction can put a company head and shoulders above the rest.
All of these elements form part and parcel of a company’s culture, which can be potentially one of its strongest assets. The best way to promote an organization’s values to job seekers is through social media channels, as organizations can come into direct contact with potential candidates through the platforms they use every day.
Businesses should create compelling content through videos, social media posts, and more, all offering a sneak peek behind the scenes into the company’s daily happenings. This could show glimpses of the workplace, team activities, or educational workshops. Whether the company particularly focuses on sustainability, has a small family business feel, or prides itself on its creative edge, these are competitive advantages that can be showcased to strengthen an employer’s brand.
It’s crucial that company culture does not become a staged marketing exercise in order to meet hiring goals but that businesses really do embody the values they are espousing. The current crisis is as much about a labor shortage as it is about employee retention. Not only does that aspect make an employee happier, more productive, and more likely to stay, but it also makes them more likely to recommend the organization to others.
3. Provide a stellar candidate experience
With many apprehensive about getting job hunting, a great candidate experience can be a deal-breaker. First impressions matter, as they set the tone for what an applicant might expect working for the company. In fact, nearly one out of every two candidates will turn down jobs due to a poor recruiting experience, according to a 2019 survey conducted by PwC.
One of the most critical aspects is transparent, consistent, and clear communication from the outset. This includes quick response times and easily accessible information for candidates. The best way to do this is through embracing high-tech tools and software in the recruitment process.
AI recruitment tools can help automate and streamline many of the mundane and taxing tasks such as screening, scheduling, and data entry, which create hiring lags and may cause applicants to look elsewhere. Recruiters can utilize AI chatbots to increase candidate engagement and help guide applicants through the process, giving them a better overall experience and allow time for recruiters to focus on elements of the process that require more expertise.
Remote hiring, in the form of proctored online assessments and on-demand video interviews, can save candidates the time, money, and effort spent traveling to and from in-person locations. This can also encompass realistic job previews (RJPs) such as online situational judgment tests or virtual job try-outs, enabling candidates to set their expectations of the work culture and the role.
Technology can also help to efficiently store and reuse candidate data in a centralized database for when a new role comes up that aligns perfectly with a former applicant’s attributes and experience. This can make life a lot easier for both parties, as a repeat candidate can get fast-tracked to the later stages, without having to redo the whole process again, which can be frustrating and disheartening.
Finally, AI technology can dramatically reduce bias in the recruitment process, which may have hindered certain people from entering previously, despite being suitable for the job. This equates to a larger and more diverse talent pool to select from.
Although the economic and cultural factors that have contributed to the US labor shortage are numerous and complex, there are many strategies businesses of all sizes can do to meet their hiring goals and become an employer of choice. This includes reconsidering wages and employee benefits for bigger organizations, particularly as the power seems to be shifting into the workers’ hands.
What’s more, organizations that provide applicants with high-tech and social media savvy recruitment experiences demonstrate that the business is modern and able to adapt to changing employment trends. Ultimately, the companies which learn to respond to the shifting needs and attitudes of job seekers’ will be the ones that come out on top.
Sanjoe Jose is CEO of Talview, an end-to-end, AI powered hiring & proctoring solution that enable thousands of recruiters and educators discover a world of untapped talent.
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