U.S. Labor Shortage

The U.S. labor shortage is an issue that that continues to affect businesses of every size, industry and geographic area.  According to the most recent  Labor Department’s Job Openings and Labor Turnover Summary issued on April 4, 2023, the number of workers quitting their job edged up to 4.0 million in February with quits reportedly increasing in professional and business services, accommodation and food services; wholesale trade; and educational services.  See https://www.bls.gov/news.release/jolts.nr0.htm (accessed April 6, 2023).

Studies report that the labor shortage is due to a decrease in the population of working aged people as well as lingering pandemic-related trends.  Whatever the underlying reason, many employers are considering implementing various incentives and strategies such as the following to attract new employees and keep talented staff from seeking employment elsewhere:

• Increase pay: Showing current employees their work is valued by giving them a raise makes sense for some employers. Many employees want to be shown appreciation by their current employer rather a new one.
• Flexible Work: Allowing flexible schedules and/or remote or hybrid work arrangements may help employees with work-life balance. Some employers modify operating hours to reduce strain on employees.
• Extra Perks: Providing more benefits to employees—such as free meals, fitness stipends, opportunities or competitions to earn prizes, an extra day off, etc.–can increase employee morale.
• Training: Providing management with the appropriate training to actively listen to and respond to employee complaints and concerns may reduce quitting.
• Support: Management stepping in to help employees during a business “rush” sends a message that the employer is willing to “get their hands dirty,” which promotes teamwork and also builds morale.

These are just a few examples of workplace incentives that employers can offer to retain and attract employees.  Prior to rolling out a new benefit or perk, however, employers should review and update policies and handbooks to ensure new benefits and perks are implemented effectively–in compliance with existing laws and policies–to prevent HR risks that can result from the haphazard implementation of new perks.

The information contained herein is provided for general informational purposes only and may not reflect the current law in your jurisdiction. No information contained in this blog should be construed as legal advice from Shumaker Williams P.C. or the individual author, nor is it intended to be a substitute for legal counsel on any subject matter. This blog is current as of the date of original publication.