Tag: labor shortage

Posted on

The staffing shortage will be permanent

Most hourly staff businesses have struggled with labor shortages since the pandemic. Government restrictions, initial mass layoffs, and a shift in consumer preferences have all been touted as the underlying cause of the pandemic-induced staffing shortage.

Except the pandemic wasn’t the main cause, the staffing shortage was already underway.

Prior to the pandemic, unemployment was already at record lows at 3.5%.

The actual cause is America’s changing demographics. Its aging workforce has caused a collapse in the US labor force participation rate, dropping from 67% at the turn of the millennium to 63.3% in February 2020. A 2019 study by the Brookings Institution estimated that the labor force participation rate would decrease to 58% by 2050 due to the aging workforce. However, because of the pandemic, we’re already four years ahead of schedule. The pandemic simply accelerated the staffing shortage timeline.

While the severity of staffing shortages will rise and fall with the business cycle, it will continue to worsen. Every business will have to pick how they adjust to the shortage:

  1. Pay higher salaries to attract staff from a shrinking talent pool
  2. Reduce the operations and revenue of your business
  3. Schedule smarter and become more efficient with your staffing levels

If you’re not actively pursuing (3), you’re accepting the first two by proxy. It might not occur in the next three months, but it will happen. The inertia of our aging workforce is half a century in the making.

The path to avoiding higher wages and reduced operations requires you to fine-tune the way you run your workforce. 

How to staff more efficiently 

Use precise labor forecasts

Choosing staffing levels based on manager intuition has been the default for most companies. This approach may prevent egregious over and understaffing, but it misses the small shift details that add up. Staffing based on a “busy lunch rush and a quiet afternoon” isn’t specific enough and will create many instances of overstaffing, even if it’s only 15 minutes of someone’s shift. 

Across a whole team, these 15 minutes per worker can result in your needing multiple extra staff over a day. To thrive, you must know your demand indicators, create staffing ratio to demand units, and then ensure all your managers are building schedules according to this demand. 

Adjust staffing levels during shifts

Another outdated concept is the belief that a schedule is finished once it’s published; this assumes that nothing changes once a schedule is created and staff are working their shift. The problem is that call-outs, no-shows, and random downturns in demand are almost inevitable. Your managers must be prepared to anticipate and react to these challenges during shifts, adjusting labor accordingly. 

Enable your managers to make the right decisions

You can’t leave staffing levels to chance. Your managers need the right tools to support them so they can optimize their schedules to customer demand. Beyond this, you need to have complete visibility into when, where, and how managers are actively adjusting their labor – this is the only way to know for certain that you are staffing efficiently.

Many businesses won’t do this. They will continue on their current path of paying higher labor costs to attract a shrinking talent pool, as well as reducing their operations and losing customers because they don’t have enough staff. 

You need to make the choice not to be left behind.

Posted on

Labor Shortage Statistics & Trends (2023)

A small worker reading a big newspaper

Summary

  • If all the unemployed people in the United States of America were to find a job right now, there would still be over 4 million jobs left to fill. — More

  • Labor force participation is 1% lower than pre-pandemic levels or about 2.9 million fewer workers. — More

  • Lower-paid industries — like wholesale and retail — have been most affected by the labor shortage crisis. — More

  • You can use a workforce management solution to make your organization more agile in times of worker shortages. It can be used for things like labor forecasting, scheduling, employee engagement, and cross-training. — More

Last year, an impressive 3.8 million new jobs were added to the American market as businesses started to recover from the effects of the COVID-19 pandemic. Despite this, labor force participation remains below pre-pandemic levels. There are nearly 3.4 million fewer American workers now than in February 2020 in an epoch that has been dubbed The Great Resignation. 

According to the latest information from the U.S. Bureau of Labor Statistics (BLS), the total number of nonfarm payroll employment increased last month by 263,000. The unemployment rate also decreased to 3.5% as 5.8 million workers were registered as being out of the labor market in September. 

When companies better understand the current statistics surrounding the labor market, they can adapt to stay afloat during the labor shortage. With workforce management tools like smarter scheduling and labor forecasting, companies can find smarter ways of working around short-staffing situations.

Here’s what the latest stats tell us about the labor shortage crisis

There’s a higher number of job openings than there are people in the job market

Even if all unemployed people in the United States were to find a job today, there would still be over 4 million jobs to fill. The U.S. Chamber of Commerce highlighted that there are currently 10 million unfilled jobs but only 5.8 million people unemployed. 

By comparison, in February 2020, there were also 5.8 million unemployed workers and 6.9 million job openings. 

Labor force participation is lower than pre-pandemic levels

Currently, labor participation in the United States is at 62.3%, which is 1% lower than it was in February 2020. Labor force participation refers to anyone who is currently working or actively looking for work. The 1% decrease in participation rate amounts to 2.9 million fewer workers contributing to the US economy. 

According to research by the U.S. Chamber of Commerce, there are different reasons for this drop in participation:

  1. More women are staying home to take care of dependents.
  2. There’s a lack of “good jobs.”
  3. There are remaining safety concerns linked with COVID-19.
  4. Salaries are considered to be too low. 
  5. People are focusing on acquiring new skills or education before re-entering the job market.
  6. People have more money saved since the pandemic and can afford to stay out of work a bit longer.
  7. The pandemic drove a lot of people into early retirement – over 3 million older workers as of October 2021.
  8. More people have started their own businesses. In 2021, a record high 5.4 million new businesses were opened. 

The labor shortage has affected different industries differently

Lower-paid industries have historically been most affected by the labor shortage crisis. The most affected industries are wholesale and retail trade, durable goods and manufacturing, and leisure and hospitality. 

According to the September 2022 BLS employment situation:

  • The leisure and hospitality sector added 83,000 jobs. Employment rose in food services and drinking places by 60,000. The sector is still experiencing a labor supply below pre-pandemic levels by 1.1 million or 6.7%.
  • The healthcare industry welcomed 60,000 new workers last month, finally returning to its pre-pandemic level last seen in February 2020.
  • Professional and business services are experiencing an upward trend in hiring rates. The sector currently has an average job growth of 72,000 per month this year.
  • Other industries experiencing upward trends include manufacturing (22,000), construction (19,000), and wholesale trade (11,000).

How to stay ahead during a labor shortage

There are many ways to utilize workforce and scheduling software to make your operations run smoothly during a labor shortage. 

1. Utilize labor forecasting

Labor forecasting helps you estimate consumer demand, allowing you to schedule shifts to match it. With demand-based scheduling, you avoid under or overstaffing. Your employees are also less likely to burn out and, ultimately, quit. 

Luckily there is an easy way for businesses to schedule like this. 

Labor forecasting software allows you to look at historical sales, foot traffic, weather, and economic trends to better determine the amount of labor you’ll need to schedule to meet upcoming demand. This leads to smarter scheduling, such as utilizing your most experienced employees during busier periods for increased efficiency. 

2. Stay ahead of your scheduling

Scheduling your shifts in advance allows you to be more agile and adaptable. It gives your employees enough time to review and make any changes needed without causing any major, last-minute disruptions. In turn, they have a better work-life balance and can fully focus on the job when they’re on the clock.

Employee scheduling software centralizes scheduling and provides standardized methods for shift swaps and replacements, increasing administrative efficiency and staff agility. It also helps you manage time off requests in a way that ensures you have enough employees to cover demand. 

Workforce.com’s scheduling software also incorporates breaks into work schedules. This way, you make sure your staff is taking the breaks they need to remain engaged and productive. Breaks are also automatically included to remain legally compliant with federal and state laws.  

Webinar: How to Schedule While Understaffed

3. Keep your employees engaged 

Happy and engaged employees are less likely to leave. Use communication and feedback tools to boost engagement, retention rates, and healthy production levels. 

Communication tools allow for quicker and more transparent updates and make it easier to share important company announcements. This way, employees feel valued, and it helps to bridge the gap between them and management. 

Feedback is an essential part of making your employees feel more appreciated. You can use shift feedback tools to cover various aspects of shift performance. Shift feedback tools work both ways – employees receive valuable feedback from management, but they are also able to provide feedback on things like staffing-level issues. 

Webinar: How to Retain Hourly Employees

4. Cross-train your staff

Cross-training ensures that your employees can deal better with short-staffing challenges. Your staff can handle a wider range of tasks and are therefore more adaptable. By encouraging your staff to mentor and train each other, you also create more cohesion across the company. 

To start, create a list of all your team members and the skills they currently have. From there, build a cross-training program that incentivizes staff members to learn from each other and progress as individuals. 

Employees who are cross-trained can fill in for each other during times of short-staffing and emergencies. 

See how Workforce.com can help you adapt to labor shortages

Workforce.com can better equip your organization to deal with the ongoing country-wide labor shortages. Features like labor forecasting, smart employee scheduling, and shift feedback tools will not only help you handle short-staffing situations but will also improve your operations long term.

To learn more about how Workforce.com can help you stay ahead during labor shortages, schedule a call or start a free trial today. 

Posted on

Employee Retention Strategies in a Tight Labor Market

Summary:

  • Effective employee retention strategies are crucial in today’s labor market, where there are more available jobs than job seekers.
  • Flexibility is a primary factor in retaining current employees, but it can mean different things for employees, depending on the industry and roles
  • Technology plays a vital role in gathering data and feedback that can help measure employee satisfaction and spot potential issues that trigger employees to quit.

The COVID-19 pandemic. The Great Resignation. Quiet Quitting.  

All of this has created a much tighter job market with low labor participation. Currently, there are around 10 million vacancies for just 5.7 million unemployed workers. The labor participation rate is at 62.6%, down from 63.3% in February 2020. This is the equivalent of 1.8 million fewer workers.     

All of this has made it trickier as well as vital for HR professionals to keep positive employee retention rates and hold on to their top talent, particularly since remote work has become more commonplace and sought after. Employees now have a much larger job market to find new opportunities, which, in turn, means tighter competition for talent. 

Webinar: How to Retain Hourly Employees

With more jobs and a smaller talent pool, how do you retain top talent and increase your chances of attracting new employees? There are several ways to boost employee retention, but what’s challenging is implementing a strategy that makes the most sense for your organization and people. We spoke with Jack Light, a labor economics Ph.D. candidate at the University of Chicago, to provide us with more insight.

Understand why good employees quit and why they stay

It’s impossible to identify the best employee retention strategies for your specific circumstance without finding out what causes attrition. According to the Work Institute’s 2022 Retention Report, over 47 million employees voluntarily quit their job in 2021. This is the highest turnover rate since 2001 — when the Bureau of Labor Statistics began measuring this metric

According to the report, some of the most common reasons why people quit their jobs include:

  • A lack of career development opportunities
  • Stress due to a lack of resources or training
  • Prioritizing health and/or family – caring for dependents, personal health reasons, or health-related issues due to work
  • Searching for different opportunities that will give them a better work-life balance
  • Issues with their current work environment

These areas are well within leadership’s control, and they can quickly improve these conditions by implementing changes and using the right tools.  

It’s always easy to assume that compensation is the main motivation for employees to stay at a company. However, that’s not always the case. What’s valuable to your team is not always as apparent as you think. Beyond a competitive salary and benefits package, there are other areas that can be equally valuable to employees.

  • Fulfillment or finding purpose in a role
  • Job satisfaction
  • Workplace culture
  • Relationships with bosses and colleagues and teamwork
  • Company values
  • Processes such as onboarding
  • Flexibility

Once you understand what your employees value most, you’ll be more equipped to make changes and create programs that compel them to stay. 

Watch: How to Predict an Employee Flight Risk

Establish a feedback system

There are two sides to feedback that are crucial to employee retention. The first is feedback from employers about job performance. The second is feedback from employees regarding operations, policies, and colleagues. Both are key to creating a culture of employee appreciation.

And both are important and should be gathered and addressed promptly.

Employees value feedback that’s immediate and clear. It helps them improve their work, makes them feel appreciated, and shows how valuable their contribution is to the organization. 

Meanwhile, encouraging employees to provide feedback about the company and their tasks helps with retention, too. When employees are comfortable enough to share their thoughts on what works and what needs improvement, you’ll have a goldmine of insights on how to keep your best talent.

“The goal of gathering employee feedback is to try and surface low-hanging fruits that you can be actioning on that you may not otherwise be aware of,” says Light. “So it might actually turn out that a lot of your employees are struggling to get to work, for example, because there’s a bus route that’s been canceled. Or maybe you have a particular manager who many people are struggling to work with. Those are the sorts of things that are valuable from the perspective of an employee but can be quite difficult to find out.” 

That’s why having a healthy company culture that embraces feedback is crucial. And it shouldn’t stop at gathering employee sentiments. Another equally important part of the equation is the mechanism to act on them.

“If you don’t do anything with that data and that feedback, you’re probably going to get less and less of it as time goes on,” says Beau Grzanich, head of solutions at Workforce.com. Transparency is key here. You need to inform your employees about the actions you’ve taken based on feedback they’ve provided. Doing so will incentivize people to provide more information that can drive more results and benefits in terms of employee retention. 

The frequency of feedback is also important. Typically, companies do it regularly — quarterly, semi-annually, or annually. While this provides some structure, feedback tends to be more effective when it’s fluid and immediate. Moreover, it doesn’t always have to be in a formal setting. It can be casual, during quick catch-ups, or through automated tools like Workforce.com’s Shift Feedback and Rating feature. 

Engage your managers, and they’ll engage their teams

People leave managers, not companies. This popular phrase regarding employee engagement and retention is supported by data from Gallup that shows that “it takes more than a 20% pay raise to lure most employees away from a manager who engages them”. And it takes almost nothing to poach disengaged employees.

Empower your managers to engage their teams effectively. One way to do this is to take administrative and repetitive tasks off their plate. This makes it easier for them to focus on the people-centric aspects of their work.

Implementing the right technology can help managers work smarter and spend less time on tasks like scheduling, time tracking, labor forecasting, and payroll. As a result, they focus more on coaching their employees and understanding and addressing potential issues.

Offer flexibility

Employees tend to stay with a company that offers flexibility. Research has shown that flexibility at work is becoming increasingly important for job seekers, particularly among younger employees. But before you think about implementing policies around it, you first need to understand what flexibility actually means for your employees. 

Typically, people view flexibility as being able to control their work arrangements. This means having the option to work outside of the typical office setting and set hours, enjoying a flexible schedule, or being able to attend to important matters that typically warrant PTO or waiting until the weekend.

“An important thing to remember is that flexibility is often quite loosely defined. It’s much harder if you’ve got regular opening hours or you’re a retail store, and there are fixed tasks that need to be done and planned in advance,” explains Light. If that’s the case, how do you create a certain level of flexibility for hourly workers? 

Light says that offering a certain level of predictability is important for hourly workers. This means providing their schedules ahead of time, so they can plan their activities outside of work accordingly. In fact, data shows that employees who get their schedules a couple of days before their shift are more likely to quit compared to staff who receive their schedule at least 10 days in advance.

Create programs and perks that are valuable to your employees

Competitive benefits, incentives, and perks can compel employees to stay with you. But again, the key here is to know what types of benefits they find valuable. Game rooms, free meals, and company-sponsored gym memberships are all nice to have, but those perks are not always good enough reasons to keep employees from looking elsewhere. 

Get to know your employees to understand what matters to them. Consider that you have employees who are probably in different life stages. Looking at your workforce’s demographics is a good first step in determining what programs you can devise that will make the most impact. 

Your employees’ age group, seniority level, gender, as well as their personal circumstances will all dictate what they deem important. Some perks and incentives to consider:

  • Professional development. Opportunities for employees to learn new skills, such as training programs or attendance at industry-specific conferences
  • Health and wellness stipends or reimbursement. To cover costs of things like sports activities, healthcare, and mental health programs
  • Company culture. Activities, such as team-building games, that help establish a stronger company culture

Whether it’s additional time-off benefits, family activities, upskilling, professional development opportunities, or employee recognition programs, make sure that your benefits package includes items that make the most sense for your operations and where your employees are — both in tenure and life in general.  

While it’s not easy to figure this out, you can always drill down on data and employee feedback to determine the specific types of programs you should implement within the organization.

Enrich your onboarding process

Convincing and attracting new hires is just half the battle. The other half is making sure they stay. Employee onboarding sets the tone for a new hire, and you need to make it count to retain them. According to Gallup, 70% of employees who had a positive onboarding experience say that they have “the best possible job.” 

Employee onboarding is a crucial process where companies must deliver on what’s promised during the hiring process and integrate new hires into their role and the organization. Successful onboarding is not attained overnight. It is a process that can last through a new hire’s first year with the company. 

Here are some of the ways human resources teams can make employee onboarding successful:

  • Create a clear and intuitive onboarding roadmap. Define where you want your new hires to be at specific time frames, whether monthly or quarterly or what makes sense for your organization. Gather feedback about the process and iterate your roadmap and programs as you go along.
  • Incorporate onboarding programs that will help employees build initial rapport and cultivate healthy working relationships with other team members. It’s vital for new hires to feel included and part of a group.
  • Equip new hires with mentorship and training. New employees become more productive faster when they have the tools to learn and carry out their responsibilities.
  • Provide clarity when it comes to expectations and goals. Employees, especially new hires, become more efficient when they clearly understand their roles, career paths, and how they directly contribute to the organization’s overall success.
  • Use technology to organize onboarding files, keep track of employee details, and streamline new hire paperwork. This frees up time for more critical parts of onboarding. Besides, no new hire would want to deal with a pile of documents to sign and information overload on their first day of work. 

A well-structured onboarding process not only gives new employees a good first impression of the company but also plays a big part in reducing employee turnover. 

Maximize the offboarding process to benchmark market trends

On the other end of the employee life cycle, you must also pay attention to your offboarding process. While it is the stage where an employee transitions out of the company, it can still help with your employee retention strategy. 

You should ensure that any employee leaving the company has a smooth exit. So maximize exit interviews and use them to gather feedback on what you can improve and what departing employees think will make current staff stay. Use this opportunity to understand their motivation for leaving. Is it career advancement, a more competitive salary, or burnout?

You can also use the exit interview to gain insight into their new job and what other companies are doing to attract and retain employees. Inquire about what compelled them to move. Is it a generous sign-on bonus, more comprehensive learning and development, or the promise of a healthy work-life balance? 

“Exit interviews, in particular, are beneficial for benchmarking where people are going and what the wages and working conditions are gonna be like in the firms that they’re moving to,” says Light. 

With this information, you can create benchmarks on how the market is, compare it to where you stand, and strengthen your programs and processes accordingly.

Harness technology to boost employee retention

Data and feedback are crucial in strengthening your programs for retaining your employees.

“Something that’s particularly interesting at the moment is that the data is getting increasingly available in real time” remarks Light.

For instance, when an employee is coming in late more often, the right tool can help you identify this and address it before it becomes a real issue.

“Moving from the sort of survey done at fixed points in time to more proactively identifying when you need to be stepping in and checking in if everything is okay is super exciting,” says Light.

Furthermore, technology significantly contributes to the employee experience. It helps organizations streamline administrative processes so that managers can focus more on being on the ground with their teams and coaching their staff. It also helps employees perform their tasks better and more efficiently, allowing more opportunities for innovation or additional time for training and development.

Streamline workflows and improve the employee experience with Workforce.com

Workforce.com provides efficiencies around demand-based employee scheduling, time and attendance, and labor forecasting. It helps improve the employee experience by providing staff with a straightforward way of clocking in, accessing their schedules, and filing leave requests. It has real-time insights, shift rating and feedback, and an in-depth reporting functionality that can provide managers with actionable insights on key metrics. 

Book a call today if you want to know how Workforce.com can improve your workforce management and employee retention. 

Posted on

How short-staffed resorts can optimize scheduling

We live in the time of “The Great American Labor Shortage.” The leisure and hospitality industry faced a high unemployment rate of 39.3% in 2020, which, combined with the high number of job openings, reveals just how understaffed the sector is.

The World Travel & Tourism Council estimated a labor shortfall of 690,000 workers in the tourism and travel industries in 2021. Vail Resorts is one of many resort companies facing this problem. A shortage of chairlift operators, lift engineers, and snowcat drivers has delayed the resort’s ability to open doors to its skiing visitors.

Why has COVID led to a shortage of talent?

According to the Colorado Sun, lots of resorts in the country are in the same predicament as Vail Resorts. This widespread lack of active workers in the industry can be attributed to several reasons — all tied to the COVID-19 pandemic:

  • COVID fears: Staff doesn’t want to return to work because they’re scared of catching the virus.
  • Poor management: Resort management let go of many people last year, and one of the possible reasons they may not be hiring anyone back is to help recover from the profit lost during shutdowns.
  • Parental caregiving during the pandemic: The COVID-19 pandemic led a number of schools across the country to shut down. Parents without access to childcare are forced to remain home and are unable to rejoin the workforce.

In order to prevent the loss of customers whose needs are unmet, resort managers must optimize their scheduling while short-staffed.

To optimize scheduling while being short-staffed, you need to:

1. Use labor forecasting

Estimate sales demand by using labor forecasting software to look at historical sales data and then schedule shifts accordingly. You’ll be able to schedule your scarce labor smartly to meet sales demand. For instance, you might be able to schedule more experienced employees when the sales demand is high.

Sales demand is likely to fluctuate post-pandemic, and managers need to ensure that worker scheduling can adapt easily to meet sudden demand shifts.

You can also forecast labor demand by individual departments and monitor whether, say, more employees need to be scheduled in mountain operations versus lodging at a ski resort. For instance, a lot of people may be coming to ski for the day but not booking rooms for the weekend, meaning the level of scheduled labor needed will vary between the two departments.

2. Make schedules agile and adaptable

Prepare schedules in advance, two weeks at a minimum, to give employees the ability to communicate their need for coverage in the event of unforeseen scheduling conflicts.

Use hospitality employee scheduling software to centralize scheduling and increase your staff’s commitment to shift adherence. By using mobile technology like shift swaps and replacements, you minimize any last-minute scheduling changes, increasing both administrative adaptability and staff agility.

You must also manage leave requests in a timely manner to avoid being short-staffed. You don’t want too many employees taking leave at the same time. Discuss leave requests with each staff member to avoid any scheduling surprises down the road. Staff members should be encouraged to put in leave requests by giving at least a few days’ notice, so you can plan schedules in a timely manner.

3. Increase employee engagement

Focus on improving your overall staff experience. If your employees feel engaged, they are more likely to show up and do their best work and provide the best service.

With a centralized communication tool, it’s possible to quickly notify staff of timely updates or important company announcements. Getting your message out there efficiently on a unified system properly engages staff, makes them feel valued, and solves issues in disconnected communication with management.

Another way to increase employee engagement is to open up more avenues for staff to provide shift feedback. Employees may feel inclined to report on how various aspects of their shifts, from coworker cooperation to issues in staffing levels. Having the ability to give management feedback like this empowers employees, making them feel more valued. This leads to engaged and productive resort staff, even in the face of a shortage in labor.

You should also offer incentives to engage employees and boost their morale. Workers are happier when they’re well compensated. A lot of restaurant and hotel owners are offering higher wages to attract and retain employees. For instance, an ice cream parlor raised wages to $15 an hour and filled all of their 15 open positions immediately. As per Hotel Tech Report, higher pay rates can decrease absenteeism and control employee turnover, which is good news for short-staffed hotels and resorts.

Replicate these successes and improve employee motivation by offering a higher pay rate during busier shifts and during peak season.

4. Automate breaks

Employees need breaks so they don’t feel stressed or overworked, factors that often lead to staff attrition.

Between multiple departments with varying needs, resort management already spends too much time preparing employee schedules manually — up to 12 hours a week. Short staffing levels only add to this time, causing even more headaches for management. In the midst of all these hurdles, scheduling and enforcing breaks might slip between the cracks.

Solve this by implementing employee scheduling software that automatically applies legally compliant breaks to every employee’s schedule. These breaks should be easily monitorable by both employees and managers alike, ensuring short-staffed teams stay well-rested and productive. Leadership should receive notifications when employees miss breaks, and they should be able to track a live timeclock feed to know when and where workers are taking their breaks.

5. Cross-train employees

Train employees to handle a broad range of tasks so they’re more well-rounded and well-equipped to deal with short-staffing challenges. The best way to do this is to encourage your staff members to mentor and train each other.

Start by making a list of everyone on your team and include their job descriptions. Think about the expertise each role requires and then pair positions that share similar skill sets. For instance, you can pair up wait staff with those working in the front office team, both client-facing roles. The wait staff team members would learn how to perform check-ins, check-outs, and make reservations, and the front office team members would learn how to serve customers at the restaurant.

If all of your staff are cross-trained and multi-functional, they’ll be able to fill in for each other. It will become possible for you to rotate your staff across different departments to meet varying customer needs.

Proper WFM practices mitigate short-staffing pains

Workforce management can be quite complex for individual departments to handle, especially while short-staffed. By uniting staff on one platform and deploying the tips above, it’s possible to have executive oversight on staffing needs. If you’d like to overcome the challenges of the short-staffing problem at your resort, get in touch with us today!

Posted on

Practical tips for better employee experience going into 2022

Summary

  • “Antiwork” culture is fueling the labor shortage.

  • To attract workers again, employee experience needs to be improved.

  • Addressing the fundamentals of workforce management can make employees happier, engaged, and productive. 

Most people at some point have felt the urge to pull a Christopher McCandless. The notion of dropping everything and running away to the Alaskan wilderness in an old van is a refreshingly romantic one, especially for the unfulfilled employee. Who needs overbearing managers, rude customers, and exhausting overtime hours anyways, right?

“Antiwork” and the American labor shortage

Rejecting the status quo in favor of pursuing unconventional lifestyles and career paths is back in vogue now, thanks to an existential crisis sweeping the workforce. Spurred by the pandemic, disillusioned people everywhere are questioning what it means to be happy in their work.

These sentiments are in large part felt by young people part of the “antiwork” movement. They are tired of the structure behind traditional work-life – all the clock-ins, deadlines, barely livable wages, and whatnot. 

As a result, America is facing an unprecedented shortage in labor. According to a Peterson Institute for International Economics report, the country still needs 6.2 million jobs filled. Even still, many are choosing to opt out of the workforce. 

Perhaps it is time employers take a look inward for a moment to reevaluate how employees feel about their jobs. A report from Gallup measuring factors like employee stress, anger, sadness, and worry says that overall employee engagement is down 2% globally, with only 23% of people saying they are very happy working for their employer. In America and Canada, only 34% of employees said they felt engaged in their work. 

So, workers are angry and worried in the workplace; that isn’t great. And it certainly isn’t helping the labor shortage. Heading into 2022, businesses should seek to reevaluate their understanding of employee experience and strive to improve it. 

Of course, this is not all about the worker; poor employee experience translates to both time and monetary costs for businesses. Frustrated and disengaged employees usually take longer to complete tasks, and their work is often below standard. This can all lead to higher employee turnover, which is very costly to businesses. Sometimes, replacing a worker can cost nearly 20% of what they make annually. 

Improving employee experience

There are many informative lists out there regarding how to improve employee experience, with most suggesting things like team bonding events and haphazard appreciation gestures. While useful at times, these tend to be very vague attempts at solving the issue. Instead, it is worth tackling employee experience from a workforce management perspective. Many issues in employee experience stem from improper scheduling and attendance practices. Solving these problems will not only improve how employees feel about their jobs, but will also help businesses retain employees, attract new hires, and control labor costs. 

So, here’s what you can do:

Raise wages

This may seem obvious and overly simplistic. However, it is often because of this simplicity that managers overlook raising wages.

In these times, workers want to be recognized as human beings, and as such, be compensated accordingly. They want living wages more than they want 90-day bonuses. Some businesses already recognize this, choosing to adopt “pro-employee” mentalities and accept short-term increases in labor costs.

“There are a number of ways you can attract folks,” says Andy Cole of Elite Staffing during a Nov. 8 Workforce.com webinar. “But what we feel right now is that wages are by far the number one reason as to how you get people in the door.” As COO of a staffing agency covering 2,000 locations, Cole understands well what workers value most right now and going forward into 2022. 

Offer opportunities for shift feedback

Employees like to be heard, especially when it comes to how they feel about their shifts. Providing them with a tool to automatically rate shifts every time they clock out will give managers valuable insight into how satisfied employees are with their hours, coworkers, and environment.  

It is important to receive feedback on a regular basis. Doing this helps managers identify and resolve underlying issues employees may have early on before things get out of hand. 

Utilize shift swapping functionality

Sometimes, life happens. And when life decides to happen, rigid schedules can become a nightmare. Offering flexible technology that lets employees easily find shift coverage can go a long way in improving employee experience. 

“I think [my employees] being able to select the position or the shift for that day is really helpful because they feel like they’re helping the team,” says Katie Strehlow, an HR generalist for a baseball team in California. “They come in with a positive attitude, which always leads to a better work performance.” Her employees use shift swapping technology on their phones; she says it has led to an increase in engagement, satisfaction, and performance. 

Clean up your leave management

Recently it was discovered that Amazon has been incorrectly handling paid and unpaid leave for employees due to flaws in their time and attendance software. Many of these employees were wrongfully fired after the software marked them as “no shows” while on leave. If Jeff Bezos’ empire gets leave management wrong, so can any business. 

Employees must have proper visibility into their paid and unpaid leave. They also need to know that it will never be mishandled or miscalculated. Leave management systems that cater to employee experience should be accurate, transparent, and easy to use; ensuring these things helps employers build trust with their workers. Leave management should also integrate with scheduling systems, so as to easily avoid accidentally scheduling people when they are away. 

Enhance scheduling visibility

With fair workweek laws popping up across the country, it is becoming apparent that employees highly value predictive scheduling practices. Employers should make sure they send out schedules far in advance so as not to surprise their workers. 

In addition, schedules should be published onto a single live platform for all employees to view anytime, anywhere – this eliminates the confusion and frustration that comes from repeatedly sending out different schedules across an entire workforce. 

Personalize with granular employee data

It is helpful to have an in-depth workforce management system that provides data down to the individual. Understanding employee preferences through metrics like where and when they consistently show up late, or for what shifts they usually request a swap, helps managers address underlying experience issues. 

Granular employee data also helps managers equitably distribute shifts. For instance, managers can actively see while scheduling which employees have been given the fewest hours, and then react accordingly. Segmenting data in a personalized way like this also provides insight into sales vs labor hour metrics; managers can use this information to recognize and help out employees who might be struggling with productivity. 

Automate time tracking

According to a recent article from Forbes, outdated legacy systems are often unable to efficiently automate time tracking; the inconvenience of this harms employee experience and increases administrative costs. 

Hourly employees want their lives to be easy, especially when it comes to monotonous tasks like clocking in and out and filling in timesheets. They also want peace of mind regarding the timeliness and accuracy of their paychecks. Automating time and attendance guarantees employees are paid correctly every time, eliminating the headaches of variables like overtime and pay differentials. An automated system like this also serves to make your employees’ jobs easier, improving their overall experience. 

Slick and easy UX

If employees are unable to navigate basic tools for their jobs, their experience is undoubtedly going to get really sour, really fast. Complicated and broken UX can cause anger and stress for employees and its something businesses should seek to eliminate. 

UX experts note easy logins, straightforward interfaces, consistent styles, and easy to find policies/contact info as several principles that should be considered when designing systems to maximize employee experience.

It comes down to the basics

To improve employee experience, you first need to solve workforce management. Scheduling and timekeeping are the fundamentals of how a business, and its staff, operate on a day-to-day basis. Streamlining these areas always results in higher employee motivation, engagement, and happiness. 

Want to get started? Hop on a call with us today. We’ll talk you through it.