Bridging the Gap: How HR Can Overcome Labor Shortages with Training and Development

Bridging the Gap: How HR Can Overcome Labor Shortages with Training and Development

The Great Resignation was coined to describe the wave of employees leaving their jobs in 2021. Reports claim it isn't even over. Glum economic outlooks continue to encourage employees to find better work elsewhere. This unfortunate event has become a significant source of stress for many businesses and caused a global labor shortage.

The wave of resignations has forced companies to rethink how they work. Adapting your strategies to meet the expectations of this generation's employees is vital to keeping your positions filled. This article provides a few actions you can take to train and develop your team to keep turnover as low as possible.

9 Tips to Overcome Labor Shortages with Training and Development

Your employees are your most valuable company assets. As such, it’s worth investing in them in the following ways to succeed long-term.

1. Onboard new employees better

Effective onboarding is crucial for new employees to adapt and become productive team members. While it's best practice to introduce new hires to your processes and functions, it would also help to brief them on what your company stands for.

Let them know your company's mission, vision, and values. These can form their North Star early on and clarify their work. Consider assigning them a mentor to help them navigate their first few weeks.

2. Allow for flexible work arrangements

The modern workforce values flexibility; offering various work arrangements can attract more candidates to your organization. Consider options like remote work, flexible hours, or compressed work weeks. These might provide a solution to labor shortage and help employees be more satisfied at work.

For instance, you're running an IT company looking to hire a tech talent. Experienced developers might live in different parts of the country. Remote work allows you to break from your geographical constraints and reach them easily.

3. Improving company culture

Great company culture significantly impacts employee retention and attraction. Try fostering a supportive environment that values and appreciates each worker. Recognize achievements, and don't forget to celebrate birthdays. How you improve your company's culture will ultimately depend on your values.

Support you're running a restaurant business experiencing a labor shortage in the kitchen. To improve company culture, hold regular team-building activities, celebrate staff achievements, and create opportunities for employees to provide feedback and suggestions.

Additionally, performance-based rewards can encourage employees to bring their very best to work. These little additions turn your company into a desirable place to work.

4. Keep salaries competitive

Every business will make its offers more enticing when there's a labor shortage. Competitive salaries are vital in attracting and retaining skilled employees. Research industry salary benchmarks to ensure yours is on par—or even better—than your competitors.

You may have to spend more, but top talent in your company can bring far more results in the long term.

5. Provide benefits employees want

Besides competitive salaries, your benefits package can also sway employees. These can include health insurance, retirement plans, and professional development opportunities. Tailor your package based on your workforce's preferences and needs to catch their attention and attract them to your company.

6. Cultivate diversity

Diversity is more than just a trend. It allows your team to tap into different backgrounds and experiences to find fresh ideas and takes on old problems. A workplace that celebrates differences and ensures equal opportunities is attractive to this generation's job seekers, who are more in touch with sociopolitical and economic issues. 

Imagine you're the HR manager for a technology company struggling with a labor shortage in software engineering. To cultivate diversity, actively promote job openings in underrepresented communities in the tech industry. Collaborate with local organizations that focus on promoting diversity in tech.

7. Encourage employees to upskill

Technologies evolve at a rapid pace. Your workforce must be skilled enough to meet its changing demands. Offer continuous learning and professional development opportunities, such as workshops, webinars, and online courses. Investing in your employees' growth boosts their morale and equips them to handle new challenges effectively.

Suppose you manage a manufacturing company facing a labor shortage in the engineering department.

Encourage your existing engineers to upskill by providing access to industry-specific courses and certifications. Your company can stay competitive and solve complex engineering problems efficiently if your engineers gain expertise in emerging technologies or advanced manufacturing techniques.

8. Create leadership training programs

Developing leaders within your organization can be a valuable strategy in a labor shortage. Identify high-potential employees and offer leadership training programs to prepare them to take on more responsibilities. Influential leaders can engage employees and rally teams to bring your business closer to your objectives.

Say you run a financial services firm experiencing a labor shortage in mid-level management positions. Implementing a leadership development program that includes leadership workshops, one-on-one coaching sessions, and opportunities can give your employees opportunities to lead small projects.

By providing a clear path for career growth and investing in your employees' leadership skills, you'll fill critical management roles and foster a culture of internal promotion and employee loyalty.

9. Understand how your goals align

A survey found that 92% of job switchers resigned to find more fulfilling jobs. Attracting candidates who share your company's vision and values is crucial during a labor shortage.

One area where you can ensure alignment is in the first few interviews with candidates. Emphasize your company's mission and long-term goals to gauge how well potential employees' aspirations align with yours. Hiring individuals who believe in your organization's purpose can lead to a more dedicated and motivated workforce.

Cultivate a Team to Overcome Labor Shortages

Labor shortages are daunting challenges businesses must overcome. With a strategic approach, HR managers and business owners can build an adaptable team that carries them through the shortage.

Training and development are vital in bridging the gap and creating a workforce that meets current demands and is poised for future success. You can achieve that by improving your onboarding, offering competitive salaries, and enhancing your benefits package.

Moreover, encouraging employees to upskill and creating leadership training programs empower the workforce to adapt and grow.

Cultivating a positive work culture can encourage employees to stick with you. Through training and development, you address immediate workforce challenges and pave the way for a prosperous and resilient future.