This year has been defined by uncertainty. Labor shortages, as well as supply chain issues, have only complicated the outlook of many critical industries. While companies have made strides to improve it, many measures cannot be successful without the appropriately skilled talent behind them.
BLS data shows that there were 10.9 million open positions as of the end of July 2021, yet only 6.7 million hires were reported. Reports as recent as July indicated that this disparity is compounded by an increasing number of voluntary separations, which reached 930,000 in July alone.
At its core, the problem plaguing nearly every disruption along the globally interconnected supply chain network is a lack of labor, which ultimately halts output and increases inflation in the economy. More than ten million job vacancies are spread across all sectors, and the larger the labor shortage gets, the worse supply chain issues become.
Every unfulfilled job has the potential to increase uncertainty (and costs) in the supply chain, potentially leading to disruptions that would not have otherwise occurred with a fully staffed and operational workforce. These expensive disruptions could make it difficult for manufacturers and businesses to operate without incurring significant financial losses. Without proper staffing levels, factories are unable to ship packages, and trucks are sidelined due to a lack of drivers.
More than one-quarter of small employers surveyed in a recent CNBC poll are currently experiencing a significant staffing shortage, and another 18% are currently experiencing a moderate staffing shortage. A record number of companies are even trying to raise salary and hourly pay to attract staff.
Half of the small business owners surveyed reported that supply chain disruptions significantly impact their business, up from 32% two months ago. More than half (55%) of affected owners report that the supply chain disruption is worse than three months ago.
To retain current employees, company leaders must focus on providing appropriate salaries and worthwhile opportunity and growth initiatives within the company. In order to retain employees, companies need to consider how to maintain their company culture and help employees feel connected in a remote environment while also letting them keep some of that flexibility. Now is most certainly the time to keep employees happy and engaged because, at the current point in history, supply chain issues are not going anywhere fast.
Connecting Top Talent to the Best Industries and Companies
TRC has partnered with businesses and talented individuals for 40 years. Whether you’re looking for highly skilled professional solutions or need assistance in recruitment, TRC has the nationwide network required to meet or exceed your needs. From providing resources on how to onboard remote teams, hiring remotely, or working with your employees to transition back into the office, TRC Staffing can help you. Contact us today to learn more about our staffing solutions.
