Which of the following steps is most likely to be taken by an organization when faced with labor deficit?

11/6/2021

A labor shortage means there are more jobs available than people out of work, and global labor shortages, along with supply chain disruptions, have become an ongoing issue for businesses everywhere. According to the U.S. Bureau of Labor Statistics, there were millions of job openings in the past few months, while the number of people leaving their jobs rose to 4.3 million. This dichotomy between open positions and people leaving their places of work is only expected to increase. To combat the ongoing worker shortage, there are several areas that businesses can focus on to continue attracting and retaining talent during this challenging time.

1. Improve the recruiting process
Recruitment has become a large issue as a result of the labor shortage, therefore, it's more important than ever to hire efficiently and train new employees comprehensively. Keeping your company on the map through the use of strategic social media and job board posts will prove invaluable during this time.

2. Upgrade the training process
Training new employees efficiently is equally essential to retain new hires. Utilizing knowledgeable employees and regular training sessions is a great way to encourage workers while building their skill sets for the job. Research from Lorman affirms this by reporting that organizations with poor onboarding processes are twice as likely to experience employee turnover, while retention rates rise 30-50% for companies with considerable training and learning opportunities.

3. Re-examine your management style
One considerable reason workers are choosing to leave their job is because of the poor management style of their superiors. The wrong approach to management can easily lead to unhappy employees with no reason or inclination to stay at their current job.

4. Encourage and offer opportunities for development and growth
Along with quality leadership and training, workers value the opportunity to grow in their field as well. A report from TINYpulse states that workers who feel a progression in their career at work are 20% more likely to still be working there a year later.

5. Improve the work environment and offer superior benefits
Toxic work environments are one of the main reasons employees are unhappy, and, ultimately, leave their job. Creating a healthy workplace, along with offering quality benefits, not only shows a dedication to the well-being of workers but is also a significant way to stand out in the job market as it continues to expand. Forbes reports that 89% of workers at companies with well-being initiatives are more likely to recommend their company to others and that positive word-of-mouth could prove invaluable at this time.

6. Automate where you can
Another approach to overcome the labor shortage is to invest in technology that can help your company. Automation may not only decrease the amount of labor necessary to complete certain tasks but may also increase productivity within the company by assisting current employees with their undertakings as well.

While a variety of reasons have led to the ongoing labor shortage plaguing the workforce, it is up to individual businesses to re-examine and modify their approach to attracting and maintaining workers. At a time of constant instability, being considerate of employees and actively taking steps to improve your place of work will be your most beneficial line of defense against this issue.

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Today's post is courtesy of board member Bob Clements, President at Axsium Group,  a leading workforce management consulting firm.

Most organizations are experiencing a labor shortage. While pundits debate the causes (or if the shortage even exists), the problem is very real at many organizations and needs to be fixed.

Here are three ways to fix your organization's labor shortage:

Fix #1: Increase wages

The first solution is to increase wages. Companies like McDonalds, Under Armor and Bank of America have all announced wage increases to attract workers ”“ moves that have been well received by both employees and the public at large. In principle, it is easy to throw money at the problem, but in practice, it may not be possible. Higher wages cut into profits so you will need to make a strong case that wage increases will pay for themselves, and then some.

Another approach might be to examine the risk of not increasing wages by equating labor shortages to decreased customer service and, in turn, reduced sales. No matter what, you face an uphill battle to get the executive support needed to raise pay.

Fix #2: Increase hours

The second option is to ask your existing employees to work more hours. Giving more hours to your current workforce reduces the need to hire new workers, along with the training and onboarding expenses associated with hiring.

Two big hurdles need to be cleared for this solution to work:

1. Your employees need to be willing to pick up more hours. Some may be happy to do this others will not or cannot due to childcare, other commitments such as school, or lifestyle. Therefore, offering more hours can soften the labor shortage but may not fully eliminate it. It is helpful to provide your employees with technology that allows them to see what shifts are available and let them choose the shifts they want to work.
2. Those most likely to take the extra hours will do so to get paid overtime. For many organizations, overtime is a four-letter word and something to be avoided at all costs. The fact is that overtime can be less expensive than hiring new workers. This is due to recruiting costs, benefit costs, and the higher productivity of experienced workers. Fellow Workforce Institute advisory board member John Frehse talks about this in his white paper ”œThe Overtime Lie”. Organizations that are able to overcome their hang-ups with overtime will be well-positioned to keep operations running during a labor shortage.

Fix #3: Increase productivity

The third solution is to increase the productivity of your existing workforce. Increasing the output of workers already on staff reduces the need for more workers and the need for overtime.

There are two paths to improving productivity:

1. Productivity gains can come from big ideas like eliminating tasks, reducing the frequency with which certain tasks are performed, or redesigning tasks entirely. The bigger the idea, the more time it may take to implement. So, recognize that this path may not have an immediate impact on your labor shortage but should have a large, sustainable impact when implemented.
2. Big gains can come from small changes. Unlike the big ideas mentioned in the last point, small changes can often be implemented quickly. To find such opportunities, look for tasks that are performed frequently. Eliminating just one step in a frequently performed task or moving a piece of equipment closer to where the task is performed to reduce travel time can have an outsized impact on productivity. Saving a few seconds may not seem like much but when that savings happens thousands of times a day in each store across your entire portfolio, it begins to add up quite quickly.

One size does not fit all when addressing a labor shortage. Each organization and its workforce is different, and what works for one may work differently for another due to culture, demographics, geography, industry and more. The good news is that each of the solutions outlined above can be used alone or in combination with others. They can be implemented in parallel or sequentially. The important thing is to act because one thing is certain: You won't solve your labor shortage by waiting for more workers to appear.

Which of the following are the most widespread methods for eliminating labor shortages?

What strategy is often used by companies when there is a labor surplus?

Which type of training familiarizes new employees with their jobs work units and the organization in general?

Which of the following are strategies managers use to cope with high uncertainty and information demands?