Why is There a Labor Shortage and What to Do About It

I am frustrated by people saying the stimulus dollars people received smothered their motivation to work. The message is that people are lazy. It is the same argument made by those who don’t believe in Welfare. “Give people a check and they will lie on the couch and watch TV.”

PLEASE STOP SAYING THIS!

This may be true of some people, but most people want to feel significant. They want to be challenged to experience their best. And they want to be paid a fair wage for their work, which I believe they deserve.

People may reach a point of desperation if they don’t believe they can get what they need. They don’t lie on the couch because they have so much money they don’t need to work. Their depression makes it difficult to get up and keep trying.

During the pandemic, the people furloughed or laid off were given a moment to examine their lives. They found they could survive without being treated like a machine for poverty-level pay. With the fear of losing a job removed, they could more objectively examine their choices.

In the month of April alone, 4 million US workers quit their jobs; 650,000 had worked in the historically low-paying world of retail.

Now there is a shortages of truck drivers, heating and air conditioning technicians, healthcare professionals, retail associates, and hospitality professionals in a world coming back to life after the pandemic.

This is a global problem, not one caused by the US stimulus package.

Employers throughout the world are facing a similar crisis. Across the European Union and the United Kingdom, hotels and restaurants are struggling to staff up. The research group IHS Markit ?reports that companies throughout the European Union are suffering staff shortages, while business activity is growing at the fastest pace in 15 years.1 Employers everywhere are struggling to recruit workers to serve customers and make products.

Employees want a fair wage AND a safe, comfortable environment

People are raising their toleration level of how they will be treated at work. They are also articulating what they want more of. They want less tension and hostility, more acknowledgment for their contributions, harmony and a feeling of inclusion in their teams, and many would like to have fun! Employees have always wanted this, but they didn’t expect or demand their work environment to offer these “perks.” Now they do.

Essential Leadership Practices Now

Be curious and care about what they are feeling

Instead of assuming people are happy to have a job, asks employees how they are feeling and what they need to feel safe, fulfilled, and happy to be working with you and the company. Then take steps to meet their needs, or at least explain why a delay is necessary so they at least feel heard.

Don’t be a jerk

When I am frustrated, under pressure or running late, I masterfully rationalize my bad behavior. I act as if my needs are more important than anyone else and I am the only one who is aware of what is going on around me. Does this happen to you?

Your inner jerk can be triggered when you are so stressed that you have used up your reserve of adrenaline and are running on cortisol, making your anger “trigger happy.” There are stressed out, crabby people running around everywhere we turn.

The truth is, if you want happy and engaged employees, you need to catch when you are being a jerk. Once you catch yourself, here are some practices to follow:

• Don’t yell, snap, bark, or back someone down with your eyes. When you feel your anger rise up, take a breath and shift your emotions before you open your mouth. If you can’t feel patience and compassion, go outside for a breath of fresh air or call a friend to vent to calm down.
• Don’t belittle “the help.” Don’t act as if you are somebody and the clerks, assistants, employees, and other people who walk into your path are nobody special. You will lose your best employees with this attitude. You might also gain a reputation that stops people from seeking employment with you.
• Don’t act as if you are doing anyone a favor. I remember a CEO I worked for wondering why the employees weren’t happy after receiving a bonus. The culture was toxic and he was the biggest jerk. Money can’t fix that. The true gift you give to others is acknowledging how valuable they are and showing gratitude for the specific things they do. Innovation consultant Deborah Mills-Scofield says many leaders treat their employees nicely and kindly, even generously, but not as humans. Her boss made it clear that she mattered not just for what she could do, but also for who she was. Her boss genuinely showed he cared about her well-being and he trusted her choices.

Remember, we are all on this life-boat together. Trust people are doing their best to survive and find meaning in their lives. Care about what they are feeling, treat them fairly and humanely, provide a safe working environment, and see them as equals. A true human connection is both humbling and uplifting.

1 Joyce L. Gioia, Unprecedented Churning in the Labor Marketplace , The Herman Trend Alert, June 30, 2021

2 Deborah Mills-Scofield, Four Lessons From the Best Bosses I Ever Had , Harvard Business Review, Sept 04, 2012.

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