Worker Shortage Set to Continue as the ‘Great Resignation’ Continues
2 min read
The ‘Great Resignation’, which we discussed from a Canadian perspective in our blog ‘Canada’s Worker Shortage: Everything You Need to Know’, is set to continue. A new report has found that most Americans expect to look for a new job as the pandemic continues. According to Bankrate’s August jobseeker survey, Some 55 percent of people in the workforce (meaning that they’re currently working or actively looking for employment) said they are likely to look for a new job in the next 12 months.
The survey of 2,452 adults, conducted by YouGov Plc, confirms trends seen in the workforce across North America in recent months. Despite millions of workers remaining unemployed, a variety of industries are struggling to find workers to fill positions.
Even though the US unemployment rate fell slightly to 5.4 percent in July, it still remains higher than pre-pandemic levels. Yet at the same time, job openings surged to an all-time high of 10.1 million at the end of June, according to the Bureau of Labor Statistics.
Why are people looking to leave their jobs?
The survey found a variety of reasons that Americans are looking to find new work, with flexible working conditions a priority.
Some 56 percent of those surveyed said that flexibility was their primary reason to look for a new job, topping higher pay and job security. This trend was the same even for the lowest-paid workers - 52 percent of those making $30,000 or less still put flexibility as their top reason to look for a new job, over higher pay
Mark Hamrick, Senior Economic Analyst at Bankrate, commented: “There have been a lot of epiphanies and reckonings that have occurred during the time with respect to how we’re ultimately prioritizing our values, and of course how work fits into that.”
How can businesses fill open positions in such a competitive environment?
This workforce shortage has made it extremely difficult for many organizations to fill open positions. Businesses are competing fiercely with one another and workers have more leverage to negotiate than they have had in previous years.
So, how can your business overcome the workforce shortage and achieve its workforce targets without either overpaying for workers or waiting months to fill open positions?
The contingent workforce, temporary workers and staffing agencies are key.
With freelancers, consultants, contractors, temporary workers and permanent employees (sourced through a staffing agency) your business is able to fill gaps in your workforce both cost-effectively and quickly.
That’s why the contingent workforce and the use of staffing agencies has grown exponentially in the past few years. In fact, according to Gartner, 32 percent of organizations are now replacing full-time employees with contingent workers.
Contingent workers give your organization access to on-demand expertise, fast availability, flexibility and the option to fill workforce requirements as-and-when they are needed.
When managed properly, your organization’s contingent workforce management program will deliver cost savings, help you access top talent, improve your internal processes and many other benefits that boost the profitability of your company.
Are you interested in learning more? Get a free assessment from Contrax today. We have years’ of industry experience and expertise building customized contingent workforce solutions that help businesses gain control and visibility over their non-employee workforce.