Delving into the intricate issue of the labour shortage, we dive into the challenges organisations face, strategies for attracting and retaining talent, and essential measures to maintain competitiveness
CREDIT: This is an edited version of an article that originally appeared on When I Work
Labour shortages arise from various factors such as generational workforce turnovers, demographic shifts, and localised imbalances. New job demands requiring specific skills can further exacerbate the gap.
Why do workers refrain from returning to their previous roles?
Industry exodus: The pandemic prompted some workers to exit industries permanently, re-evaluating priorities during lockdowns and exploring new career paths.
Mismatched expectations: Employers eager to hire may find a slow response from the workforce. Today’s employees seek different benefits, and some employers lag in adapting to these evolving expectations.
Supply chain bottlenecks: Despite high demand, businesses facing supply chain challenges delay hiring until operational capacity aligns.
Personal challenges: Workers grappling with childcare or eldercare responsibilities find themselves in a state of limbo, affecting their ability to return to work.
Strategies for Talent Attraction
Offer comprehensive benefits
In a labour market where workers can choose the best deal, providing diverse benefits is crucial. From healthcare to paid vacation and childcare assistance, or even hiring incentives and referral bonuses—tailor benefits to meet your workforce’s needs.
Competitive compensation
Recognising the need to adjust wages, businesses can increase pay while managing potential challenges:
Cost management: Vigilant budget oversight helps identify areas for cost reduction without compromising essential services.
Price adjustments: Reflect increases in supply costs through proportional adjustments in product or service prices.
Operational flexibility: Reconsider operating hours to align with staffing constraints.
Streamlining operations: Focus on core business offerings to reduce unnecessary complexity.
New revenue streams: Explore passive revenue sources that contribute to overall profitability.
Safe and respectful work environment
Addressing post-pandemic safety concerns is pivotal. Demonstrate a commitment to worker safety through vaccination requirements and fostering a welcoming atmosphere. Consider revisiting and updating employee handbooks to align with evolving safety expectations.
Focus on career growth
Highlighting career growth opportunities attracts potential employees. Whether through paid training, industry certifications, conferences, clear promotion paths, or regular raises—communicate a commitment to employee development and progression.
Streamlined job application process
Ensure transparency in job information, duties, and pay to simplify the application process. Facilitate access to crucial details without making candidates navigate a complex application journey.
Embrace flexible scheduling
Recognise the importance of work-life balance. Offering flexible scheduling addresses a quality-of-life issue, meeting the demand for increased flexibility in post-pandemic work expectations.
On-demand pay
Introduce innovative benefits like on-demand pay, a proven tool for increasing employee loyalty. As 78% of workers express greater loyalty to employers offering on-demand pay, incorporating this perk can enhance engagement, satisfaction, and reduce turnover.
As organisations grapple with the labour shortage challenge, these strategies serve as a roadmap for attracting and retaining talent. Adapting to the evolving expectations of today’s workforce is not just a necessity; it is an investment in the growth and resilience of your organisation.
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