There is a major staffing shortage across the country. According to Forbes, nearly half of all small businesses are experiencing severe staffing issues. I spoke to several local business owners recently. They have good jobs to offer, but no one is willing to work.
Most of the eligible workers are still on extended unemployment benefits provided by the CARES Act. The extra unemployment compensation provided by the CARES Act, combined with federal stimulus payments, pays potential employees more to stay home. They would lose money if they accepted a job. There is no incentive for them to return to work.
One clever business owner offered a $50 incentive for anyone willing to apply for his medical assistant positions. That seemed to work well.
βI had eight people scheduled for interviews last week. I was surprised when none of them showed up.β He did some research and learned to remain eligible for unemployment benefits, βthey have to apply for jobs, but they do not have to go to the interview.β
Another business owner mentioned some applicants are now asking if they offer any βsigning bonuses.β She is considering that as a solution. βTo do that, I have to raise my prices and might lose customers.β
In select industries, the staffing issues may cause businesses to close. One restaurant owner mentioned βCOVID-19 restrictions shut us down and then limited our capacity to 25%. We were forced to lay people off. We only survived because of large federal grants we were given. Now the restrictions are lifted, and demand is high. Our former employees are making too much money sitting at home and are not ready to come back to work yet. Meanwhile, we are turning away customers and may have to close our doors.β
These business owners were desperate for a solution.
Be sure to read next weekβs Biz Tips article. We will discuss a few options to solve the current staffing shortages.
