How Does the Tight Labor Market Impact Your Business?

There are labor shortages in every sector. For more than a year, the number of open jobs has been higher than the volume of people looking for work. In January 2019, there were 7.6 million unfilled jobs but just 6.5 million people were looking for work. The shortages continue to heavily impact everything from technology to hospitality—and everything in between. How will this tight labor market likely impact your business next year? 


Raise Wages to Increase Hiring 

The most obvious impact that the labor shortage will have on your business next year is in your payroll. The labor shortage means that employers may need to increase wages and benefits to attract top talent next year. These perks will make your business more attractive to employees looking for the best packages.  


Lower Your Standards 

Companies can no longer afford to hold out to look for the “perfect” candidate (if they were ever real in the first place). Instead, consider finding a great candidate that you can spend more time training. Or, pull from a labor force category that you don’t normally tap, such as retirees or interns. Some companies are even loosening their restrictions for workers that have jail time on their credentials. 


Work Harder to Retain Employees 

This kind of labor market exposes the necessity of employee retention. Retaining and engaging your employees is more important than ever before. To do this, consider offering more schedule flexibility in addition to more competitive wages and benefits. 


Change Onboarding 

Retention starts on day one; so many companies will change their onboarding next year. They may spend more time just on onboarding new employees, or increase the budget to provide additional training. They may also increase the educational benefit so employees could seek more credentialing later on. Generally, watch for employers to invest in people the moment they enter the building. 


Get Creative with Recruitment 

Companies struggling in the current employment climate will have to be more creative in their approach to recruiting. Attending job fairs, writing better ads, and pursuing passive candidates are all ways to increase your efforts to find talent. Companies should make use of social media to share attractive details about the work environment and corporate culture to attract a wider audience. Try partnering with local colleges or high schools to attract new graduates. Or, try marketing and public relations to get your company out there so potential candidates can take notice of your company. 


Partner with a Staffing Agency

Organizations seeking competitive advantage in a tight labor market next year should consider partnering up with a staffing agency. Recruiting firms typically come with a ready-made network of passive candidates. Many don’t require an up-front fee; you pay if you hire the right candidate. These companies can help you staff up during times of need to help you lessen the impact of a staffing shortage. 


Staffing agencies have become the best methodology for staffing up during times of high unemployment. 


Blackstone is waiting on your call. We can help your organization find the best candidates—especially when the labor pool is thin. Contact us to find out more. 

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