Overcoming Staff Shortage: A Practical Guide for Managers and Employers

In the latest report of the U.S. Bureau of Labor Statistics, labor force participation shows positive development, reaching 83.4% in May 2023; the last time it was this high was in January 2007. While this means that a larger percentage of the population is employed or actively seeking job opportunities, businesses remain susceptible to experiencing a staff shortage at some point. As a matter of fact, 87% of U.S. retailers cite talent shortages as a major challenge in 2023.

To learn more about staff shortage, make sure to read this article as we some share practical ways to mitigate it.

What Is Staff Shortage?

Staff shortage is a business phenomenon when there is an insufficient number of employees or workers on hand to fill necessary positions within an industry. There are many reasons why businesses experience staff shortages. These include unexpected employee resignations and increased demand for services or products. Businesses may also encounter staff shortages due to poor hiring and management practices. Another scenario that could cause staff shortages is when business owners try to boost profits by cutting labor costs. 

Effects of Staff Shortage 

Staff shortages can be inevitable and cause significant challenges in your business. Below, we tackle three of the common effects of staff shortage. 

1. Increased Stress in the Workplace

When a business is lacking staff, existing employees will have to take more workload than usual. This can cause them to feel overwhelmed by the increased responsibilities and deadlines. Consequently, stress levels will start to build up in the workplace, affecting not just individual workers but the entire workforce. 

2. Decreased Productivity 

In a workplace statistics report, over 50% of workers were said to experience disengagement at work because of stress, leading to a loss of productivity. The stress caused by the extra tasks and longer work hours in a workplace with insufficient staff can lead to lower motivation and engagement of employees. Eventually, their productivity will also be affected. 

3. Higher Employee Turnover

Besides impacting productivity, the stress from staff shortage may also push employees to leave. After all, stress is known to be a major contributing factor to burnout, which is a common reason why employees leave their jobs. As a survey finds, 70% of burnt-out employees leave their current jobs.

How to Deal With Staff Shortage

While a staff shortage may be a short-term issue for most organizations, some businesses may experience the same issue for an extended period of time. If you are currently facing a staff shortage right now, here are some tips to help you.

1. Reduce Services and Working Hours 

Reducing services and working hours may sound like a daunting idea, given the possible decrease in profits. However, this could be the best temporary solution during a staff shortage. By limiting certain types of appointments or services and reducing working hours, you can ensure that your remaining staff are not overworked and can provide quality customer service, which is essential for any growing business. As a Forbes report highlights, 58% of customers will pay more in exchange for better customer service. 

2. Hire Temporary Staff

Temporary staff can offer much-needed support amidst a staff shortage. Temporary staff are those employees hired for only a specific period of time, depending on the demand or arrangements. They typically already have experience in diverse work environments, which enables them to quickly adapt to your company culture and work with your existing employees.

To learn more about hiring temporary staff, check out this full guide on the do’s and don’ts when hiring temporary staff.

3. Take Advantage of Automation Technology

Adopting automation technology into your business could be the game-changer that you’ve been waiting for. Through automation, you can reduce your reliance on human labor for completing tasks such as sending messages or notifications, completing payrolls, processing data, and more. This not only helps mitigate the impact of staff shortages but may also boost your productivity and even reduce labor costs.

4. Offer Higher Compensation for Overtime Work

The cost of living is on the rise, and so as the need of workers for extra money to live by. By offering higher compensation for overtime work, you can give your existing staff the opportunity to earn more money. At the same time, this strategy can aid in driving up performance and results in your business. 

Just a quick reminder: if you opt to offer more work hours for your employees to deal with the lack of staff in your workplace, keep in mind that too much work could have a negative impact on their well-being. Hence, we recommend taking the time to think it through and ensuring that your employees are able to balance their work and personal lives and have enough time to rest. Additionally, it's important to make sure that your staff are fairly compensated for their hard work.

5. Expand Your Recruitment Pool 

If you are looking to fill the gaps in your workforce in a shorter span of time, broadening your recruitment and hiring could be key. Instead of only focusing on a certain demographic to hire, you may consider expanding your scope to more potential workers. For instance, you may consider those who are in another location or from a different industry.

6. Create Part-Time or Job Sharing Roles

Creating part-time or job-sharing positions may help address staffing issues faster. By offering flexible work arrangements, you can attract workers and retain existing staff members who may need more flexibility in their work schedules. Part-time and job-sharing positions can also be a practical solution, especially for small businesses, as they tend to be more cost-effective compared to hiring full-time employees.

7. Use Social Media for Recruitment

Social media platforms have become a strong recruitment tool nowadays, with many applicants utilizing them to look for jobs or recommendations. According to a report, 79% of job seekers are likely to utilize social media for their search. This makes it easier for you to connect with potential staff and share your job offers. Furthermore, social media can help you expand your professional network and reach a wider audience.

8. Improve Company Culture to Attract Applicants

If you are aiming to attract applicants to fill open roles in your business, improving company culture should be your priority. By cultivating a positive and supportive workplace, you can establish a positive reputation, which can draw the attention of applicants. As a Glassdoor Survey concluded, 77% of their respondents would consider a company’s culture before applying for a job in a company. 

Discover How StaffConnect’s Automation Technology Can Transform Your Business Amidst Staff Shortage 

As we have explained earlier, automation can play a role in overcoming staff shortages. An app that offers such functionality for businesses is StaffConnect. 

StaffConnect is a business management software complete with all the tools that can help boost productivity and save time and costs. It particularly boosts its automation capabilities that can handle repetitive routine tasks such as sending reminders to staff or clients and invitations to job applicants, deducting payments based on withholding and taxing requirements and processing data. StaffConnect also has other notable features, such as a centralized database, a communications hub, GPS Check-In and Out, Survey Data Collection, and Calendar Integration.

If you want to learn more about the complete features and functionalities of StaffConnect, feel free to book your complimentary demo here.