Workforce shortage in Australia
Labour shortage stems from the effects of COVID-19. Reasons for wanting to quit include a lack of personal fulfilment, purpose or meaning, career limitations, mental health concerns, and poor pay and benefits, according to research.
Other key drivers for wanting to change jobs included poor work-life balance, burnout and needing a fresh start.
Labour Shortage Solutions For Small Business
Replacing employees who have left their jobs is challenging for many small business owners. In fact, according to research from ELMO Software and the Australian Human Resources Institute (AHRI), one in four (24%) of survey respondents said their top challenge in 2022 would be recruitment.
The report shows that the cost of hiring has climbed to $23,860 per candidate - doubling from $10,500 in the previous year. Given that hiring is a challenge, here are some ways SBOs are doing their best to retain employees.
1. Embracing remote and hybrid work.
Many employees experienced a better work-life balance over the pandemic due to working from home, and they want to continue along this vein.
2. Updating and enhancing the company pay and rewards system.
Rewarding employees beyond competitive salaries and benefits are now a necessity. Many businesses are waking up to the new rules, which require critical foundational pieces of the employee experience, including investment in the total employee experience, such as better pay and benefits, tools and policies supporting workers’ mental health, and learning and development programs for workers.
Home office stipends, mental health benefits, and internet subsidies are just a few benefits employees now expect for their loyal service.
Now is also the time to consider how your company’s salaries compare to competitors and ensure employees use the benefits.
3. Spotting and encouraging struggling or disengaged employees.
On a global scale, 2021 research from Gallup estimates that 80% of the workforce is not engaged or actively disengaged. Gallup further estimates that a disengaged employee costs a business an average of 34% of their salary.
Besides the quantifiable cost of lost productivity, disengaged employees also negatively impact innovation and morale and can potentially undermine the work of their colleagues. It can damage relationships with clients and harm the brand’s reputation inthe marketplace.
4. Offering employees support.
By providing access to a robust support system in the workplace, you let your employees know they are valued. Make mental health resources available by including them in the overall health care plan. At the same time, setting up an employee assistance program that includes motivational and mental health support gives employees confidential access to professionals.
5. Providing for upskilling.
Employees may leave positions for more challenging and empowering work when they feel they’ve reached a ceiling in their current jobs. By providing upskilling opportunities that can lead to promotion, such as further training and development, you show employees the company cares about their long-term growth. Encourage an ongoing open dialogue focused on meeting employee career goals.
Skilled Labour Shortage – How to Fill the Gaps?
Many business owners are finding that they must redistribute responsibilities to get the job done. This includes owners taking on responsibilities until new employees start. In the interim, many small business owners are also hiring contractors and freelancers to pick up the slack. Many companies have also become more open to part-time and contract work, even if it means redesigning traditional positions.