How your business can make it through the labor shortage

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Most thought the “great resignation” and the labor crisis would be a temporary issue. But the situation has not only improved, but is getting worse.

Although 428,000 jobs 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 workforce, worsening the labor shortage crisis.

Most people blame, at least partly, the global pandemic as a cause or at least a catalyst for mass migration, but as Harvard Business Review (HBR) noted “record number of workers” in March 2022 quit his job in 2021 … If you consider that number in terms of total employment during the last dozen years… you can see that what we are going through is not just a short-term turmoil caused by the pandemic, but a long-term one. To continue till the time – term trend.”

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This is not a pandemic issue

The reality is that this is an issue that has been steadily worsening for more than a decade, and that over-focusing on the impact of the pandemic is not only wrong, but also prevents employers from understanding the true causes of these trends – the causes that are for the most part. much within their sphere of influence.

It’s all too easy to feel helpless about a situation when it feels like it’s caused by an international health crisis that you couldn’t affect, change, or control. But when you realize the real reasons that this trend is not only increasing but gaining momentum in recent years, most of the reason is aspects of work experience that employers can turn to.

if you see Top 10 reasons US workers are leaving their jobs in 2021As the Pew Research Center reports they are (in priority order): pay was too low, there were no opportunities for advancement, disrespect was felt at work, because of child care issues, enough to choose Didn’t have flexibility when to work, benefits weren’t good, wanted to move to a different area, worked too many hours, worked too few hours and the employer needed a COVID-19 vaccine.

Going back to 2015, The Business Journals shared that five reasons Research has shown the reason people leave was that they weren’t growing professionally, weren’t happy with the work they were doing, didn’t feel important, they lacked the support to do their jobs well, and They weren’t paid enough.

And looking back 10 years to 2012, LeaderChat shared that Top 10 Reasons People Quit had limited career/promotion opportunities, supervisor had respect/support, compensation, job duties boring/no challenge, supervisor lacked leadership skills, working hours, unavoidable reasons, supervisor poor employee relations, supervisor displayed favoritism and was not recognized for his contribution.

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So what is the real reason?

When you look at the patterns and trends of the past decade, the bigger picture becomes clear – employees who have realized they are no longer willing to work in roles and employers who continually compromise their universal needs. They are no longer willing to do work that is injurious to their physical, mental and emotional well-being.

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

  • Foundation/Work Required: These are needs that are primarily related to the things that we need to be able to function in our society. So when it comes to benefits such as compensation issues (especially in the context of a living wage), health care, child care issues and working too many hours, the foundation/work needs of your employees are being affected .
  • Price Required: It is this need that ties in with our sense of worth, importance and self-esteem. When you see people leaving because they don’t feel important, they feel humiliated, lack of support, favoritism and not recognized for their contributions, your employee’s value needs are being affected. Used to be. Compensation and salary issues can also affect an employee’s value requirement, as they are often an indicator that employees are not being valued in a monetary way that reflects their contribution to the company.
  • Development needs: This is the need that is linked to our growth and development. So job duties like boring/no challenge, not growing professionally, not having opportunities for career growth and advancement are a strong indicator that the growth needs of your employees are being negatively affected.

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What can I do to protect my organization?

This means that addressing the labor crisis is not a question of finding more people, but it is a question of creating a culture and environment that people really want to be a part of. A work experience that not only negatively affects these needs but actually helps your employees meet them.

The reality is that there is no such thing as a labor crisis right now if:

  1. You have employees who are happy, engaged and loyal, whose experience is that working with your company not only sacrifices their universal needs but supports them in actually meeting them.
  2. Others really want to work for your organization (which is when you gain a reputation for having employees whose universal needs are supported by working with you).

An organization that meets these criteria is how we define a destination workplace, and it is the most powerful antidote to the labor crisis, both present and future.

When you start putting your focus there, it not only empowers you to do something to prevent your business from getting hit by the labor crisis in the short term, but it gives you the blueprint to build an organization whose people want to be a part. of, which is the only thing that will protect your business from future labor trends, which are only getting worse by the numbers.

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