Today, many companies are struggling with a labor shortage. However, many are also a bit perplexed by the situation.
During the pandemic, unemployment skyrocketed. As a result, many businesses assumed that hiring talent wouldn’t be as difficult as reopening processes began. In reality, hiring challenges were shockingly common, with many companies being unable to fill their open positions.
There are several factors that have led to the hiring shortage. If you’re wondering why it is so hard to get workers right now, here’s what you need to know.
Why Hiring Is So Difficult Right Now
Hiring is challenging at the moment for several reasons. One, it’s important to understand that there were labor shortages before the pandemic; COVID-19 simply altered the landscape in a way that made it more pronounced.
Many members of the workforce were concerned about their safety during the pandemic, making them hesitant to seek out roles where they had to interact with others. In some cases, having to care for children who were learning remotely was a major contributor, causing some parents to exit the workforce and start functioning as full-time caregivers.
Augmented unemployment benefits may also have had a part to play. While many were eager to return to the workforce, others felt differently. At times, convincing workers to accept jobs that provide less compensation than they were receiving through the COVID-19 unemployment programs was difficult. Exactly how much of an impact this factor had on the broader picture is up for debate, but it did likely influence a portion of the unemployed.
While those employment programs have largely ended, their impact may be lasting. Many people reevaluated their definition of fair compensation, causing them to alter their salary target.
Additionally, it shifted how they viewed companies, particularly in regards to how they cared for their employees during the pandemic. As a result, some may have found their previous industry less enticing, causing them to switch gears and explore new fields, head back to school, or retire.
Awareness of a labor shortage has also made hiring harder. Candidates understand that companies are competing for their attention. As a result, they expect more from their employers and, if one fails to measure up, they’re broadly willing to seek out other opportunities.
Of course, other points may be impacting the landscape as well. Ultimately, what drives a person to enter or exit the workforce varies. However, each of the factors above is playing a role.
How to Overcome the Hiring Challenges
While hiring challenges may be pervasive, it is possible to achieve better outcomes. Offering candidates better compensation and benefits is a wise move, as well as having a robust onboarding process to set them up for success.
Cultivating a great culture is also vital. When your workplace is inclusive and welcoming, it’s more attractive to candidates.
Partnering with a staffing agency is an excellent decision. You’ll get access to a high-quality talent pool that’s actively seeking out opportunities.
If you’re struggling to find the talent you need, the team at GSG Talent Solutions can help. Contact us today!