How Your Business Can Make It Through the Labor Shortage

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Most people thought “The Great Resignation” and the labor crisis would be a temporary issue. But the situation has not only not recovered, but is getting worse.

Although 428,000 jobs were added in May 2022, according to the Bureau of Labor Statistics, labor force participation fell to 62.2% in April and 363,000 left the labor force. work, worsening the crisis of labor shortages.

Most people blame, at least in part, the global pandemic as the cause or at least a catalyst for mass exodus, but as a Harvard Business Review (HBR) noted in March 2022, a “record number of workers who left their jobs in 2021 … If you consider this figure in the context of total employment over the last twelve years .. You can see that what we are experiencing is not just short – term turmoil caused by the pandemic, but the continuation of a long – term trend. “

Related: How entrepreneurs can find great talent despite labor shortages

This is not a pandemic problem

The reality is that this is a problem that has been steadily worsening for more than a decade and disproportionate attention to the impact of the pandemic is not only wrong, but prevents employers from understanding the real reasons for these trends, reasons which, for the most part, are very much within their sphere of influence.

It is very easy to feel powerless in the face of a situation when it seems to have been caused by an international health crisis that you cannot influence, change or control. But when you realize the real reasons why this trend has not only been increasing, but has been gaining momentum in recent years, most of the reasons are aspects of work experience that employers can change.

If we look at the top 10 reasons why American workers left a job in 2021, as reported by the Pew Research Center (in order of priority): wages were too low, there were no opportunities for moving forward, he felt disrespectful at work for caring for children. , did not have enough flexibility to choose when to dedicate hours, the benefits were not good, he wanted to move to a different area, working too many hours, working too few hours and the employer required a vaccine against Covid-19.

Back in 2015, Business Magazines shared that five reasons why the research had shown that they made people leave were that they didn’t grow professionally, they weren’t happy with the work they were doing, they didn’t feel important, they didn’t have the support to do their job well and they didn’t they paid enough.

And looking back 10 years to 2012, Leader Chat shared that the top 10 reasons people left were limited career or promotion opportunities, the supervisor had no respect / support, compensation, boring / no challenge work, the supervisor he had no leadership skills, hours of work, inevitable motives. , supervisor bad relations with employees, supervisor showed favoritism and was not recognized for his contribution.

Related: How leaders can overcome the labor crisis

So what is the real cause?

When you look at the patterns and trends of the last decade, the big picture becomes clear: Employees have realized that they are no longer willing to work in positions and for employers who are constantly compromising their universal needs. They are no longer willing to do a job that is detrimental to their physical, mental and emotional well-being.

So what are just some of the universal needs that are at the root of this worsening labor crisis?

  • Need for the foundation / function: These are the needs that relate primarily to the things we need to be able to function in our society. Thus, when compensation issues arise (especially in the context of a decent wage), benefits such as health care, child care issues and excessive working hours, the foundation / function needs of your employees are affected.
  • Need for value: This is the need that connects with our sense of worth, importance and self-esteem. When you see people resign because they didn’t feel important, felt disrespect, lack of support, favoritism, and are not recognized for their contribution, your employee’s value needs are affected. Compensation and pay issues can also affect an employee’s need for value, as they are often an indicator that staff are not valued in a monetary way that reflects their contribution to the company.
  • Need for growth: This is the need that is linked to our growth and development. Thus, issues such as boring / challenging job tasks, not growing professionally, professional development and not opportunities for advancement, are a strong indicator that the need for growth of your employees is being negatively affected.

Related: Highest record: The United States now has 2 job offers for every unemployed person

What can I do to protect my organization?

All this means that tackling the labor crisis is not a matter of finding more people, but of creating a culture and an environment in which people really want to be a part. A work experience that not only does not negatively affect these needs, but actually supports your employees to meet them.

The reality is that right now there is no labor crisis if:

  1. You have happy, committed and loyal employees, whose experience is that working with your company not only does not sacrifice their universal needs, but helps them meet them.
  2. Other people really want to work for your organization (which happens when you gain a reputation for employees whose universal needs are supported by working with you).

An organization that fits these criteria is how we define a destination job, and is the most powerful antidote to the job crisis, both now and in the future.

When you start focusing there, it not only empowers you to do something to prevent your business from being affected by the short-term job crisis, but it also offers you the project to create an organization whose people want to be a part of it. of, which is the only thing that will protect your business from future job trends, which according to the figures will only get worse.

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