The pandemic persists, of course, but business leaders must find ways to address another issue that’s affecting their companies’ long-term health: the sansdemic.
Sansdemic—a term coined by Moscow, Idaho-based research firm Emsi—means “without people” and refers to the shortage of workers to fill open positions. Many businesses know all too well about this problem. Workforce shortages and supply-chain issues couple for the most consistent chorus of concerns from employers these days.
While those two issues frequently are paired when bemoaning challenges in the current business climate, struggles to find quality employees started well before anybody had heard of COVID-19. One could argue the pandemic led to early retirements in some cases and prompted people to reevaluate priorities in other instances. But experts have been talking about a shortage of workers in the context of the expectations that baby boomers would retire en masse.
An international ManPower Group study released on the cusp of the pandemic’s onset, in February 2020, showed that just under seven in 10 employers reported a talent shortage. A similar ManPower report from this year’s third quarter shows nearly an identical number. For context, those numbers are more than double the number of employers reporting workforce shortages in 2015.
If anything, the pandemic prompted a pause in shortages for some industries, and that respite is now over. As Emsi says in a report titled The Demographic Drought, “This is history catching up with us.”
Regionally, the Washington state Employment Security Department released numbers earlier this week that showed the four-week moving average of regular, continued jobless claims had fallen to the lowest level since the start of the pandemic, and unemployment rates largely are back to pre-pandemic levels.
Employers that are struggling to fill positions should consider a multifaceted approach to addressing this issue and look to others for best practices.
Some companies are developing their own educational programs to train and develop both new and existing employees. Others are becoming more open to hiring part-time workers or those who would work remotely, where possible.
In this environment, employee retention becomes a greater focal point as well. Bank of America has announced plans to raise its companywide minimum wage to $25 an hour in the coming years, and Amazon.com Inc. has been ratcheting up its pay as well. Retention bonuses for long-time employees have become more commonplace.
A typical small business might not be able to take such measures, but it might need to look at well-being programs, improving cultures, and taking similar steps to show employees they are valued and encourage them to stay.
Clearly, approaches are going to have to be customized to individual companies and the types of workers they seek.
Inland Northwest employers always have been able to make a compelling quality-of-life pitch to prospective employers, and that remains the case. When there are more jobs than people to fill them, however, it might take more to secure the needed workforce for the desired growth. The time to start thinking about that is now.
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