As businesses head into the home stretch of 2021, attracting and hiring great employees remains the most pressing challenge they face. This won’t come as a surprise, but flipping the calendar to 2022 won’t change that; the labor shortage, and its impact on corporate productivity and profitability, will continue to be a significant issue.
What’s behind it? It’s easy to put all the blame on the pandemic – and there’s no question that’s accelerated the current environment – but the shifting in the workplace has been underway for some time. Here are some of the major factors contributing to the limited supply of employees.
Changing demographics
We’ve been hearing about the pending wave of retirements among baby boomers for years. Now, it’s happening, and at a pace faster than expected. The pandemic has certainly expedited that process. Employees nearing the end of their careers are resigning in droves – the so-called “Retirement Tsunami.” Some see this as the right time to move on, while others are getting out rather than face potential health risks in the office. Whatever the case, the departure of those seasoned professionals is hitting the labor market hard.
Shifting priorities
Over the past few years, we’ve seen more people decide to re-assess their careers and lives. The pandemic has put that phenomenon on warp speed. With new challenges related to child care, elder care, or perhaps their own health concerns, many employees are shifting their priorities. Those concerns are taking precedence over work obligations and, as a result, people who might be pursuing new opportunities have decided to stay where they are, or get out of the grind altogether.
Pursuing dreams
Who hasn’t dreamed of ditching the 9-to-5 and starting their own business? Since the pandemic took hold, many have done just that, with applications for new small businesses setting records. There are a number of contributing factors, from the rise of technology to various impacts of the pandemic, but the bottom line is when people leave the corporate world to go off on their own, that removes potential employees from the labor market.
The ‘new normal’ of the workplace
Savvy employers trying to navigate the hiring challenge understand they’re not alone. It cuts across nearly every business and industry, and the finish line is nowhere in sight. But there are two important things to keep in mind: the talent pool may be smaller, but there are still good employees out there (they’re likely working for someone else). And, there are solutions to help companies get the people they need.
The experts at Alaant know the same old, same old methods of recruiting won’t work in the current environment. We help companies implement innovative approaches every day to overcome the obstacles. How can we help your organization build the team you need to be successful? Contact us today and let’s get the conversation started!
