How Business Leaders Can Navigate Labor Shortage

Do you know that workforce participation remains lower than it was before the pandemic? That’s according to the findings of the U.S. Chamber of Commerce. The workforce remains over one million people short compared to pre-pandemic levels in February 2020. This ongoing gap has contributed to a persistent labor shortage, making it harder for many businesses to find and keep qualified workers.

As a business leader, chances are you’re feeling the impact. Open roles sit there for weeks, team members are stretched thin, and the same job ad is getting fewer and fewer bites.

Honestly, this talent shortage is frustrating. While you can’t control the labor market, you can control how you respond to it.

Here are a few practical ways you can navigate the labor shortage and build a strong, thriving team.

#1 Get Creative With Where You Find Talent

Are you always hiring from the same sources? It’s time for a change.

Don’t chase perfect candidates with picture-perfect resumes. Look for folks with potential, grit, and the right attitude, even if their background differs from the typical candidate. These often outperform those who tick all the boxes on paper.

Talent knows no boundaries, so expand your hiring efforts beyond national limits. Countries like Japan, India, the UAE, Germany, and Portugal have a deep reservoir of ambitious and highly motivated individuals eager to contribute to global organizations.

Sure, there are payroll challenges. But global payroll management solutions handle compliance, taxes, benefits, and currency conversions. That way, your international team gets paid accurately, legally, and on time without you worrying about exchange rates or local tax laws.

When choosing a global payroll management software, go for the one that offers value-added payroll services such as off-cycle payroll runs and built-in year-end processing.

“These services help reduce overhead, simplify compliance across borders, and give your team greater flexibility in managing complex payroll scenarios—all backed by the same powerful infrastructure and local expertise you trust,” notes Remote, a global HR and payroll platform.

#2 Rethink Your Job Perks

Offering just a basic salary and health insurance may not be enough these days.

Employees are looking for more than just a paycheck. For many employees, especially Gen Z, having a good balance between their work and personal life is important. Around 32% consider it the most important aspect of a job.

Flexibility in work arrangements is a highly valued benefit that can help attract and keep employees happy while reducing turnover. Nearly 93% of employees in roles that can be done remotely desire to work remotely for at least a portion of their week.

This means businesses need to focus on perks and benefits that support employees’ lives outside of work and give them more control over their schedules and where they work.

Flexibility in work arrangements is a highly valued benefit that can really help attract and keep employees happy, and reduce turnover. Try offering remote work, flexible hours, or compressed work weeks.

Don’t forget the perks that support your employees’ physical and mental health. This could include gym memberships, wellness programs, resources for mental health, and a healthy work environment.

#3 Think Beyond Full-Time

The traditional model of a nine-to-five, full-time job isn’t the only way to run a business anymore. There are many other options to consider that can help you meet your staffing needs.

Part-time work is an alternative employment model you can consider. The proportion of part-time job advertisements has increased since 2022. It can offer you access to a wider range of talent and potentially reduce your labor costs.

For specific projects or short-term needs, hire contract workers. It can provide you with specialized skills without the long-term commitment of a full-time employee. This can be especially useful in industries that change quickly and where you need specific expertise for a limited amount of time.

The gig economy is a significant and growing part of the U.S. workforce. It offers businesses access to a flexible pool of workers with diverse skills for project-based or short-term needs.

Job sharing is another option. This involves two people sharing the responsibilities of one full-time role. It can give you the skills and experience of two individuals while offering greater flexibility to your employees. Though valuable, it’s an underutilized option.

Be Flexible and Proactive

Dealing with the labor shortage in the U.S. is definitely a challenge, but it’s not impossible. If you’re willing to think differently, you absolutely can find the people you need to succeed.

So, take a fresh look at your strategies, be open to new ideas, and remember that your employees are your most valuable asset. With a little innovation and effort, you can build a strong and adaptable workforce that will help your business thrive, even in these challenging times.

Career Reload Team

We’re a team of writers dedicated to providing insights and tips for navigating the professional world. With a collective wealth of experience across various industries and roles, our team understands the challenges and opportunities that come with seeking meaningful work and advancing your career. We help job seekers to better their careers by offering career advice & free resources. Download free Word resume templates and resume templates for Google Docs.