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4 Ways to Prepare for a Labor Shortage

Updated: Jan 23


Ways to Prepare for a Labor Shortage

You Can Predict a Labor Shortage


If you can predict something is about to happen, you can better prepare for it. There are a few red flags to look out for when predicting a labor shortage. Depending on the strength of the economy, the labor force fluctuates. If the economy is strong, the labor force is strong, and vice versa. Whenever there is a high cost of food, shipping, fuel, etc., that dictates a future labor shortage. As government handouts increase, labor shortages increase. Sometimes, bad employee/supervisor relationships can cause a mass number of co-workers to quit. Look out for these things!


Hire Quickly


Be quick to hire because most likely the candidate has applied for multiple jobs. Assume that if you are experiencing a labor shortage, all other businesses are as well. Be sure to communicate and hire quickly. With that being said, you should also make sure the candidate is the right fit for your company. Try to screen applicants as they walk in. This will speed up the process and help identify if they are a right fit faster. Hiring quickly is one of many ways to prepare for a labor shortage.


Utilize the Staff You Have


Cross-training is a great tool! If your employees are cross-trained throughout multiple departments, their skills can be utilized where needed. Also, utilize seasoned workers to train those less skilled. Make sure you allow flexible work schedules. Work with your employees the best you can, so the job can be done. Evaluate your rate of pay and check the benefits offered. This will help with retaining the employees you have.


Use Your Resources


Get creative with how you are advertising job postings. Use an Employee Referral Program where employees are rewarded for referring a friend to work. Post your job openings on social media. Utilize temp agencies. Sign up for career fairs at your local colleges and universities. Invest in internships that could potentially lead to a full-time position.


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