The Great Resignation is taking place while there is a labor shortage, making it difficult for employers to fill positions. People have been willingly leaving their employment for several months, and despite there being over 10 million available vacancies, recruiters have had little success filling them. Why is there a labor shortage? Why can’t businesses hire even with so many unfilled positions?
Some of the causes typically cited by economists for the labor shortage are health and safety issues, the need for at-home care, benefit and flexibility demands, career change, rethinking life, and bargaining for higher compensation.
Main causes of Labor Shortage
The Retirement Generation’s Loss
The labor force participation rate was substantially higher before the pandemic than it is now, with a sizable portion of the workforce having retired. COVID-19 has significantly impacted older workers’ involvement and recuperation, whether they took early retirement voluntarily or were compelled to do so after being furloughed or laid off. After the pandemic, there has been a sudden vacuum in the labor market as the Boomer generation has become less willing to work due to health hazards and other reasons.
The Lack of Skills and Job Mismatch
The younger generation lacks the essential experience businesses require in today’s evolving labor market, since the older generation is retiring. Employers who are actively seeking candidates report difficulty finding the appropriate fit due to a lack of skills and a talent gap that is at a 15-year high. If companies are unable to discover the candidates they are seeking, the available positions are probably going to remain empty, therefore widening the gap.
Employers desire on-site staff who can work without them having to train them in person and who have the necessary years of experience for the position. The working generation, primarily millennials, wants flexible work schedules and remote work so they can avoid returning to their jobs full-time. Younger generations are prepared to keep looking for jobs online until they find something satisfying or a position that supports their financial and mental health.
Burnout is increasing.
Existing employees are becoming severely burned out as a result of employers’ desire for the 9–5 grind. Employees are unhappy and overworked as a result of taking on more tasks to keep services running while attempting to strike a balance between work and home. The current employees are already looking to change jobs or resign from their current positions in order to relieve tension and explore better opportunities. The future labor shortage would be worse if this situation is not resolved.
How Can the Labor Shortage Be Solved?
Outsourcing partners have access to offshore resources that provide low-cost, high-quality services. A provider of outsourced services like EmpireOne Contact Center can fill your open positions in a couple of weeks, especially during a labor shortage when talent is in short supply. With us, you won’t experience the consequences of the labor shortage; turnover won’t be a concern, and we employ people for tasks that require their unique skill sets and high levels of specialization. So, if you’re looking to hire customer service employees, you should choose us. To find out more about our fantastic services, contact us today.
