Workforce and Staffing

This past weekend, my wife and I traveled over two hours north to meet family for an apple-picking trip (perhaps the best of the fall activities? A debate for another day.). On the way there, my two kids asked for a quick lunch. Our chicken-nugget-obsessed five-year-old insisted we hit the Wendy’s drive-through on the edges of our town.

After waiting in the drive-through lane for around 15 minutes, we ordered our lunch and again waited in line. When we finally made it to the window, I noticed something stunning: the manager of the restaurant was taking orders, filling those orders, passing the orders through the window, and also taking care of the kitchen. That’s one managerial position, with possibly a cook hidden where we could not see, handling what nine or ten employees (or more!) would cover during a typical weekend lunch rush at a popular fast-food spot.

Similar staffing shortages are happening all across industries and sectors, some facing severe coverage crisis issues that threaten to undermine revenue, customer satisfaction, and how internal operations are run. The gaps in today’s workforce are caused by a combination of several factors, including compensation standoffs, a refusal from workers to return to unsafe conditions, uncertainty about career paths, etc. The end of federally-augmented unemployment benefits have frequently been blamed for staff shortages, however, this is only one sliver of many issues that are happening right now in the world of work. The hard truth is that there is no single solution for global shortages, and, considering the complexities of specific verticals, there may be several ways that things ultimately take a better turn in the remaining months of 2021.

And to add to these challenges, there are cascading effects from certain industries that impact others: if daycare facilities have to turn away new registrations (or cut back on existing numbers of children) due to shortages in staff, then that makes it incredibly difficult for large pockets of workers to find roles in traditionally-9-to-5 businesses. Too, many restaurants, retail shops, and similar businesses in accommodations and food service find that the combination of lack of childcare and standoffs regarding wages and working conditions are leading to millions of unfilled jobs.

The pandemic’s continued case impact is also a factor, as well: hospitals and healthcare facilities are certainly strained by overfilled ICUs, but employee burnout has been a major contributor to shortages within those industries. Eighteen straight months of critical care pressure, 60- and 70-hour workweeks, and concerns over falling ill have driven healthcare staff to the brink of complete burnout. Veterinary medicine facilities may not have to deal with human COVID patients, however, the rise in pet adoption in conjunction with severe staff shortages of specially-trained technicians and other roles are leading these units to defer emergency care during overnight hours and asking veteran and trained staff to perform multiple tasks (as well as putting in the same ridiculous hours that nurses are currently supporting in human medicine).

So, when does the deadlock break? When do businesses get back to a steady state of employment? When do these staff shortages end? Well, there is no easy answer, as there are myriad issues that must be addressed, such as:

• Worker safety and health concerns. “Hot Vax Summer” turned into a “Delta Variant Summer” pretty quickly and will continue into the fall months, considering that kids are back in school, many states and countries are relaxing guidelines, and one-in-four Americans still haven’t received a single vaccine dose. Workers are hesitant to return to conditions that endanger their health; in addition, public-facing employees do not want to contend with customers that flout mask mandates and put others at risk. This is a perfect public health storm that cascades into the business realm…and if this issue isn’t addressed, these jobs are going to stay open.
• Pay disparities. Much like the real estate market traverses between the power of the “seller” versus the power of the “buyer,” employers and workers are in a standoff over wage disparities. Much to the chagrin of businesses, it’s a job candidate’s market at the moment, which many hourly workers fighting for higher living wages and better working conditions. This is essentially what is happening in retail, food service, and similar sectors that survive on the hourly, shift-based workforce. Who “blinks” here? When does one side cave to the other? Well, it’s more than just increasing hourly pay, because workers desire other, non-compensatory benefits, such as…
• The flexibility factor. Many industries were thrust into remote and virtual work environments out of necessity and haven’t looked back. Others are beginning to implement rigid workplace structures that are reminiscent of pre-pandemic times and workers want nothing of the sort. Working parents desire flexibility to handle childcare issues and school after-care, while other workers want to be able to mix in remote days with in-office/in-person days. These are items that are just as, if not more, important than wage issues.
• The childcare domino effect. If daycare facilities are facing staff shortages and shrink their headcount, that means significant numbers of working parents have to choose between a job and a stay-at-home mom/dad position. The childcare domino effect is a very, very critical piece of the staff shortages occurring today. Pumping more federal dollars into this sector could be helpful (which is why the Biden Administration is allocating so much of its American Families Plan to shoring up these issues), but there is always a fundamental challenge for countless other industries if childcare staffing continues its incredible shortage.
• Evolving candidate career paths. The pandemic caused many, many professionals to reevaluate their positions and question their career choices. Millions of workers realized that engagement was a key piece of their careers and will accept nothing less in future positions. Those that are still straddling the sidelines and searching for new opportunities are looking at workplace culture, leadership opportunities, reskilling and upskilling opportunities, and flexibility as equally as important as compensation for open positions. It’s not just a one-size-fits-all game anymore for the labor market; higher wages aren’t going to cut it for talent that wants so much more of their next role.

Much like “The Great Resignation” is still a recurring theme in the world of work, “The Great Staff Shortage” is going to continue making headlines over the next several months. Whether or not there is a true breaking point will be the difference in a 2022 that sees both businesses and its workers on steady ground and engaged with each other, or, a continuation of the continued workforce challenges of the past nine months.