There have been a litany of ripple effect consequences triggered by the COVID-19 pandemic, but one of the most urgent is the widespread labor shortage. This problem can be attributed to many different phenomena, but the result is clear — employers need to start doing something differently if they want to attract and retain high-quality employees. This is especially true in the staffing industry, which relies on the availability of workers to effectively serve clients. If you’re wondering how to solve labor shortage problems, consider the following four strategies to deal with staffing shortages.
Redefine Recruiting
Recruiting is one of the most crucial steps in the staffing process, but it’s also one of the most stressful. Recruiters must balance their responsibilities with general risk awareness that includes familiarity with common employment liabilities. These liabilities may be covered by a staffing business insurance policy, but the fact remains that recruiters must be proactive. In light of the labor shortage, it may be time to redefine what recruiting entails and shift the focus towards talent management. The best recruiters don’t simply seek candidates to fill jobs — they scope out talent to utilize for promising opportunities. This shift in focus can set a new tone and yield better results.
Invest in Retention
Many companies have invested all of their resources and efforts into recruiting efforts with little time spent on retention strategies. Indeed, this is one of the biggest contributing factors in the labor shortage. Many businesses succeed in hiring new employees, but those employees may leave the position within a few months of being hired — and thus the process starts all over again. How can a company prevent this and improve retention rates? One of the best strategies is the implementation of continuous training opportunities.
Cultivate a Community
It seems increasingly common that new hires depart from a job only a few months after being hired. One of the biggest reasons why this is happening may be a lack of community within the workplace. For staffing companies that place workers in temporary positions, it may be difficult to sell a sense of community — but community isn’t necessarily about permanence. Community is about continually investing in the talent of your staff. This is key for staffing companies that need to recruit and retain talent for a range of different positions.
Prepare for Wage Inflation
One of the consequences of the labor shortage is the impending inflation of wages. The law of supply and demand dictates that as demand for workers increases, so will the wages that employers must pay. It’s imperative, then, that staffing companies anticipate this change and prepare to devote more funding towards workers’ pay. Low wages is yet another likely culprit fueling the labor shortage, so boosting pay is an effective antidote.
About World Wide Specialty Programs
For the last 50 years, World Wide Specialty Programs has dedicated itself to providing the optimal products and solutions for the staffing industry. As the only insurance firm to be an ASA commercial liability partner, we are committed to that partnership and committed to using our knowledge of the industry to provide staffing firms with the best possible coverage. For more information about Staffing Professional Liability Insurance or any other coverage, we have available to protect your staffing business, give us a call at (877) 256-0468 to speak with one of our representatives.