The Impact of Labor Shortages on the Economy: Solutions and Strategies for Employers

In recent years, employers across many sectors have battled against a pervasive labor shortage. While companies were cautiously optimistic as the pandemic drew to a close, hoping professionals who left the workforce would return, that didn’t occur. Even if unemployment rates fell to zero, the current demand for workers would still outweigh the supply, and that challenge is likely to remain for the foreseeable future. The economy is also continuing to feel the impact of this labor shortage. Many companies are struggling to reach or maintain full productivity, leading to diminished outputs. In turn, profits are often declining, all while recruitment costs are rising. Additionally, the cost of increasing wages is putting a strain on operational budgets. Further, many organizations have to pay more for the materials or supplies they require to create goods or support service offerings, making budgets even harder to balance. Slower production across many sectors is even leading to material and supply shortages, creating a new challenge. Ultimately, companies need to adopt new strategies to overcome the difficulties created by a labor shortage. Here are some solutions and strategies for employers that make a difference.

How Improving the Onboarding Experience Makes a Difference

A company’s positive onboarding experience can make a lasting impression on a new hire. If it’s lackluster, incoming employees may struggle to gain their footing. That lack of support may also lead them to assume that the company isn’t going to meet their ongoing needs. Whether that translates into diminished confidence moving forward – which harms performance – or effectively encourages them to move on to other opportunities quickly, employers end up struggling. With an improved onboarding experience, new hires feel supported and set up for success. In turn, they’re typically more confident about the company and their ability to perform in the role. Reaching full productivity faster is also common when the onboarding experience is strong. Plus, it can generate positive word of mouth, allowing it to bolster future recruitment efforts, even during a labor shortage.

How to Improve Your Onboarding Experience to Boost Retention

First, it’s wise to view onboarding as a multi-stage process. Begin with preboarding, allowing more tedious tasks like paperwork completion to begin before the new hire arrives on their first day. It’s also wise to include some basic introductions early, allowing future managers and colleagues to welcome the new hire before they officially arrive. Additionally, share critical employee information – such as the handbook and dress code – to help incoming employees increase their familiarity. Next, create an orientation experience that handles critical training and facility tours. Follow that up with onboarding, where the new hire is introduced to their workspace, initial duties, and a training plan that outlines their ongoing development. You can also boost the onboarding experience by adding social elements. Pair new hires with buddies who will serve as touchstones and guides as they gain their footing. Make in-person introductions between them and other critical staff members, and make sure they have a meeting with their manager to discuss expectations. Additionally, build feedback into the process. Meet with new hires regularly to discuss their performance, offer guidance, and celebrate their victories. By doing so, the incoming employee feels more confident in their progress and supported by the organization, ensuring their first impressions are positive. Finally, make sure to have a robust onboarding solution in place. By using a technology-forward approach, it’s easier to manage communication, ensure critical steps are completed, provide new hires with essential information, and create a warm, welcoming, and supportive experience. If you want an onboarding solution that streamlines processes and reduces recruitment costs, all while increasing candidate engagement and simplifying compliance, Essium can help. Contact us to find out more about our industry-leading onboarding solutions and how we can help your staffing firm thrive.