The recent Wall Street Journal Article – ‘Tight Labor Market Returns the Upper Hand to American Workers‘ reports what all of us have seen and experienced in the labor market – it is hard to get ANY employee, and especially difficult to find people at a reasonable wage.
Causes of Labor Shortage
Today all throughout the country there are a huge number of businesses that are struggling to hire the desired number of skilled employees, be it restaurants, resorts, accounting firms, companies in the healthcare industry, property industry, and many more. There are an array of factors that are causing loss of labor as per the economists. A few of them are:
- Child-care responsibilities
- COVID
- Ongoing health risks
- Early retirements
- Change in Career
- The expectation of furloughed employees to be called back by their previous employer
The unintended consequence of this is even more pressure and stress on your current team.
Consequences of Labor Shortage
The labor shortage however has a big impact on organizations. A few of them are listed below.
- Overtime Hours
Manufacturers generally increase production when the demand goes up. But when there are no laborers to fulfill the increased production job, it leads to the overtime of the existing laborers.
This eventually leads to frustration among the workers and a strained lifestyle which further impacts productivity. Not to mention paying 1.5x a typical wage for an employee that is likely LESS productive when working so many hours.
- Lower-Quality Applicants
Due to the competitive and thin labor market, the hiring team is often left with very few options to choose from. This may cause the hiring departments to hire people with less talent just to fill a role. Thus accumulating a group of applicants with lower quality skills.
- Higher Turnover and Frequent Re-training
There are situations where the employer has invested time, money, and knowledge into training new employees. Yet, their tenure is extremely short – often as little as a week or so. This again becomes a huge burden on the existing employees as they continuously are forced to shift responsibilities and train new people.
How to deal with Labor Shortage?
If you’re facing a labor shortage in your business, one of the best solutions to support your team is to utilize a combination of RPA (Robotic Process Automation) and smart BPO outsourcing to remove tasks of current employees.
Outsourcing is the best and most important strategy to solve labor shortages. Whether this is transaction support (data transfer, moving information between systems) or delivering a solution related to information management, we, here at Process-Smart are ready to help.
Check out our business use cases and services, including:
- Accounts Payable Support
Process-Smart is able to handle a portion of the A/P process or the entire function. Completing data entry or management of invoices, and reconciling the three way match.
- Payroll Management
Any kind of payroll-related functions that include processing, attendance, time, and all kinds of tax services of your company will be managed by us.
- Customer Service Support (Text and Voice)
Even Disney is reporting extremely long handle times for customer service issues. Utilizing Process-Smart we can ensure text and voice responses to customers happen in minutes, not days. We can make your customer service a differentiator and at a significantly lower cost than domestic outsourcing.
- Quality Assurance
We have the expertise to provide best in class, cost-effective, and efficient quality control services to provide insights about your customer, product, and processes.
- Digital Marketing
At Process-Smart we are well experienced in providing effective, engaging, result-oriented SEO, SEM, SMM services with complete transparency in reporting and analysis.
- General Back Office Support
Thorough back office support to free up time for client facing tasks.
Business Process Outsourcing can seem risky, and it is if you do not have the right partner. With collectively decades of experience in understanding client needs we at Process-Smart have the experience and competence to ease your labor burden and provide additional capabilities.