The recent labor shortage that began in 2021 and has continued into 2022 may have started because of Covid-19, but its momentum has been in large part due to an increasingly skeptical view of modern wages and wealth equality. Workers these days have begun to notice a large gap existing between the pace of wage growth versus productivity output.

Combined with rising prices on just about everything and inflation looming large, more and more workers have simply walked away from jobs, and in some cases, the labor market altogether. While some of these workers have moved to different jobs, others have decided to make a hobby a career or have started their own businesses.

How This Affects Employers

Employers are feeling the effects of the labor shortage, especially when it comes to productivity. Without qualified employees, it can be more difficult to get work done. This means delays in getting goods and services to customers amid an already stressful supply chain environment.

You may also be facing tough decisions about pay and employment benefits. As you may be generating less revenue because you don’t have employees to produce and provide goods and services, employees are asking for higher wages and more benefits. This can be a catch-22 situation where you’re going to have to make some difficult decisions regarding your operational scale. For more information about employment benefits, visit the website.

What Can You Do?

For employers, a labor shortage means a lot of things. First and foremost, it means that you have fewer workers available to staff open positions, so you need to be doing everything possible to attract the right talent. Second, it means you may need to re-evaluate your pay and employment benefits offerings to attract and retain talent. Once again, this may require some changes to your organization's management strategy and your operational scale.

This may also be a good time to take a closer look at your company culture and take stock in the human capital you currently have in order to do more with less. It’s a challenging task to be sure as you don’t want to add more work to an already short-staffed workplace, but if you’re going to make it through these difficult times, some reassessment is in order.

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