Hiring and holding onto good workers can be challenging, especially right now. Businesses across many industries have jobs to fill, seemingly lacking enough candidates to fill them.
According to the Federal Reserve Bank of St Louis, U.S. unemployment is at one of the lowest points it’s ever been. Additionally, the percentage of people working or actively seeking work – known as the labor force participation rate – is lower than it’s been since the mid 1970s.
Why Is There a Labor Shortage?
There isn’t just one factor causing the current labor shortage, though many of the major influences relate to the COVID-19 pandemic.
The global pandemic gave many people time to reflect on their life and career goals. Many people have come to feel life is too short to spend time in a job that lacks excitement. The ability to work from home also made many people question whether going to work in an office was right for them. Others took advantage of downtime during the pandemic to learn new skills and try different careers.
As a result, for many small-businesses owners, it's become much harder to hold onto or hire new workers than before.
5 Ways to Attract and Retain Employees During a Labor Shortage
To attract and retain an engaged, productive workforce, think beyond the basics and pay attention to the details that can make a big difference for many employees.
1. Consider More Than Compensation
It’s a given that salaries need to be competitive to retain workers or to attract the best candidates. But even if you're offering competitive pay, a holistic benefits package can also be crucial.
Besides standard medical and life insurance plans, programs that focus on overall employee well-being, both mental and physical, are becoming key. Flexible Fridays, no meeting Mondays, and work from home allowances or reimbursements are the types of offerings that can make a company’s benefits package stand out and attract new employees.
To attract and retain an engaged, productive workforce, think beyond the basics and pay attention to the details that can make a big difference for many employees.
One popular benefit is a well-being stipend. This is an extra amount of money that can be used on any type of wellness, learning, or a self-development app or program. This stipend gives employees options for what they deem helpful, from joining a nutrition program to subscribing to a meditation app.
The best way to be sure the benefits package meets your employees’ needs is to ask them. Employee surveys are a great tool to find out what your employees want – and to let them know their opinion is important. There are also companies that will help small and midsize businesses develop benefits packages and track employee engagement.
2. Recognize Employee Achievement
It can be crucial to honor employee achievements. Encourage loyalty by rolling out an employee-nominated quarterly recognition program. Recognition for a job well done can be very rewarding, and a small gift card can go a long way to motivate and uplift your employees. Spot bonuses to reward goal attainment can be a great way to support a “pay for performance culture” and reinforce new processes and procedures.
An employee referral program can be a rewarding initiative as well. Maybe your employees know someone from school or a prior job they would want to work with. Offering a small bonus if a candidate they refer is hired and works for a certain amount of time can be a mutually beneficial recruiting tool, especially during a labor shortage.
3. Prioritize Diversity and Inclusion
Respecting employees by treating them fairly and inclusively can create a strong employee culture and can go a long way toward employee engagement and retention. If employees feel respected and valued, they will be less likely to leave. Having a diverse workforce can benefit your company in many ways.
Prioritizing diversity and inclusion can be essential to recruiting high-quality candidates. Think about where to find candidates from sources never used before. In addition to the colleges where you typically recruit, reach out to the job center at the local community or junior college.
4. Make the Internet Work for You
Most job searches happen online, so make sure your company’s online presence is strong. Be sure the company website has a careers page. Use this to not only highlight open jobs, but to also show other aspects of the company culture that make your business a great place to work. Showing pictures of employees in their work environment or having fun at team gatherings can help attract candidates.
Social media can be used to advertise open positions – and so much more. It can be a way to consistently highlight your company culture and tell the story of why your business is a great place to work. For example, did you sponsor a local sports team or event? Post a picture online and be sure to include a link to your open jobs.
5. Reduce Application Hurdles
Another approach to recruiting during a U.S. labor shortage is to lower job application requirements. Most employers need workers who are honest, hardworking, and can solve problems. Some candidates will take any listed 'Requirements' very seriously, so only list absolute must-haves there. You can list other things under 'Nice to Have.' If you eliminate some requirements for relevant job experience and offer on-the-job training, you can greatly increase your candidate pool.
The Takeaway
Maintaining your workforce during a labor market shortage can be challenging. But with a creative approach to benefits, re-evaluating current processes, and a few adjustments to practices like employee recognition and job role descriptions, many businesses can attract high-quality candidates.
Photo: Getty Images
