THOSE LEADERS WHO SOLVE THE LABOR PROBLEM WIN!!!

Tell me what year this was…

• The number one complaint amongst all companies across the country was labor, they can’t find people who are qualified, who want to work.?
• Companies are focused on creating the best working environment.
• Help wanted signs up everywhere.
• Companies are adjusting their hiring criteria.
• Companies increasing pay and benefits to attract new employees.
• Companies invest in technology to solve labor shortage.

1929

1943

1944

1945

1946

1947

1951

1952

1966

1967

1968

1969

2000

2018

2019

The answer is?ALL OF THEM!

Today we are facing labor shortages. It may be for other reasons than the economy is heated up. When unemployment is low it is generally because there are not enough workers for the jobs open.

What we are experiencing in 2021 feels the same in the sense that every company throughout the US is frustrated with the lack of labor. But this time it’s not due to a shortage of jobs, but rather a shortage of those who want to work or are encumbered not to work related to the pandemic. (i.e., parents who are still wrestling with homeschooling vs. opening schools).

Companies are growing, sales are up, and they are trying to meet increased customer demand but are held back to reach their full potential due to a labor problem.

First, the backdrop. In good times and bad, there is always a chorus of employers who claim they can’t find the employees they need. Sometimes that chorus is louder, sometimes softer, but it’s always there. One reason is that in a system as large and complex as the U.S. labor market there will always be pockets of bona fide labor shortages at any given time.

Whether you need one employee or 75,000 such as Amazon is looking for, you need to understand one key important differentiator amongst the successful companies.

It’s their?MINDSET.

I had a client who was the CFO of one of the world’s largest senior care providers with over 50,000 employees, where 80% were at just above minimum wage. (High demand demographic). When I asked him how he is dealing with the labor issue he said it was a matter of?having the right mindset. He knows his business has a 75% turnover rate – that’s right, 75%! The mindset was that they always have to be interviewing. For those employees they hire, they need to do their very best to create a great working environment to retain them as long as possible. They were investing in technology where possible. Lastly, they have to provide exceptional customer service so they can keep up the demand for their services. They found if they focus on these three things in a positive way, they will be a step ahead of their competition.

I had another client who owns multiple restaurants and when I asked him how he is solving the labor problem, he said he is paying people more. When he did the math, he determined that by raising wages 30% it had a trickle-down effect equating to an 8-10% increase on his sandwiches, which was a reasonable and acceptable price increase to his customers. Furthermore, his ability to maintain a high level of customer service has allowed him to capture more of the market.

Those who solve the people problem?WIN?the game!!!

Ask yourself this question.

Can I still go out to dinner, get my car fixed, have my haircut, buy clothes for my family, school supplies for my kids, get my AC fixed, house painted etc.????

The answer is yes.?Why is that? It’s because owners of companies, although frustrated with the shortage of labor, adopted the?mindset?that they?want?to win the game and will find ways to solve the labor problem.

The right mindset!

What are these owners doing today to solve their labor problem? The same thing they did back in 1929.

• Put Help wanted signs up everywhere
• Create the best working environment?
• Adjust hiring criteria
• Increase wages and benefits to attract new employees
• Invest in technology to solve labor shortage

If you want to avoid labor problems, don’t be a business owner, however, if you want to join the millions of businesses who are finding ways to deliver their services and products to you, then change your?mindset, get in the game and WIN!!?Win big! The consumer demand is strong and you can capture as much of it you want if you invest in the solution rather than run from the problem.

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About the Author

Rich LeBrun CFB, CCIM has over his thirty-years helping his clients reach their financial freedom, build wealth and secure their future through business ownership. Contact Rich at?[email protected] ?or at 847-912-4310.