There’s a labor crisis that, as Forbes reports, may be here to stay. Many are quick to point the finger at the broad availability of unemployment benefits since the start of the pandemic as the problem’s culprit, but it’s a problem that well predates COVID–19. “Comparing Labor Department data on the number of available workers with the number of job openings, there are now 1.4 available workers per job. This, according to the Chamber, is insufficient. But notice a couple of things,” says Patrick W. Watson, the article’s author. “First, the ratio was even lower before the pandemic—around 1.0 in 2018–2019. Worker availability is actually higher now,” he explains. “Second, the ratio has been falling for years. What’s different now is it has reached a point where workers and jobs are roughly in balance.”
Watson believes that much of this may be attributable to the fact that Americans are having fewer kids. Indeed, the St. Louis Federal Reserve has collected data showing that the availability of working-age Americans (ages 15–64) has plateaued and now may be in decline. “This is a big reason employers can’t fill jobs,” surmises Watson. “In many cases, the workers they want simply don’t exist.”
Worse still, the Society for Human Resource Management (SHRM) conducted a survey a couple of years ago that showed a marked decline in the quality of job applicants. According to the president and CEO of SHRM, “A majority of Americans (63 percent) believe what employers facing difficulty in recruiting have known for some time—there is a skill shortage in the workforce.” This includes “trades, middle-skilled positions and highly skilled STEM positions.” This, combined with the flat population growth in America, has led to many H.R. professionals recruiting international candidates. But that’s not a great option outside of a handful of specific industries. Businesses in hospitality or retail, for example, are not likely to have the resources necessary to sponsor work visas.
Given the situation, it’s critical that businesses keep the good employees they have. But, as the Global Talent Monitor reports, “the lack of future career development remains a key driver of employee attrition—cited by 40% of departing employees as a dissatisfying factor in their job. At the same time,” the report adds, “28% of employees are actively seeking a job and 42% are passively open to new opportunities.” That’s brutal.
But career advancement isn’t always obvious in some industries. In restaurants, for example, there is a track that might eventually lead a person from bussing, to waiting, to ultimately management, but the majority of servers won’t become managers. The best ones may even prefer to remain servers, given the amount of money they can make from tips. —If anything, many great servers advance their careers by accumulating experience in casual dining establishments before ultimately ascending into the lucrative world of fine dining. Indeed, Global Talent Monitor mentions this tidbit: “Although career development is top of mind for employees, compensation remains an important factor for leaving a job. Last quarter, nearly 37% of the global labor force reported leaving their previous employers due to their compensation.” How big of a jump in compensation is tempting employees away from their existing jobs? Fifteen percent. All told, that’s not even that large of a jump, considering the median American income is $31,000.
While you might not be able to ultimately prevent a rock star in your sales department from chasing the brass ring elsewhere, employee development and rewards programs can go a long way towards retaining the talent you already have. In hospitality, especially businesses that involve tips or commissions, additional training will have an obvious impact on employee income simply from more sales. But even for industries that don’t have those opportunities, a program that celebrates the hard work your employees put in at their jobs can make them feel a much higher level of job satisfaction. Making employees feel appreciated will make them feel respected. That means a lot.
One great way to accomplish this is through mystery shopping. What a mystery shopping program can do for your business is help train your employees to offer the best sales and service support possible to your customers. The net effect of a great customer experience is increased profit and long-term loyalty from your clientele. A positive work environment complete with employee incentives is a natural consequence of employing a mystery-shopping program.
Keep your employees longer by keeping them happier through training and recognition. Increase profits through a refined sales process that you regularly measure through auditing. Ensure long-term loyalty from both employees and customers alike. All of these how you leverage mystery shopping. So what are you waiting for? Let’s get started now!
