Where are All the Workers?
by Mark E. Battersby Many ice cream and frozen yogurt business owners are finding themselves short of the one thing they need to thrive and grow: workers. The Bank of America recently estimated that 4.6 million workers exited the labor force during the pandemic, but only half are expected to rejoin by the end of the year. Because the labor woes are expected to continue into 2022, the question of how to coax those badly-needed workers off the sidelines remains a problem. One reason for the shortage may be that people were being paid not to work. Quite simply, for workers earning less than $32,000 annually, it was more financially lucrative to collect federal and state aid than taking a job. After all, with the added federal “bonus” unemployment, which may or may not be returning, benefits for nonworkers were averaging $16 per hour, more than twice the $7.25 hourly minimum wage.
The Cure Obviously, unemployment benefits are not the only reason workers are remaining on the sidelines. Among those reasons: Many parents are struggling to find child care with many schools remaining closed for in-person learning and child-care facilities experiencing the same worker shortages faced by many businesses. Some workers have said they’re reluctant to return to jobs out of concern they will contract COVID-19, or one of its more dangerous variants. Finding qualified workers remains the biggest challenge for ice cream and frozen dessert businesses and is slowing both their recovery and growth. Some employers are increasing compensation, offering bonuses and benefits to attract employees. Consider just a few strategies in play as businesses search for workers. Rewards for Workers Hiring Worker Imagine, offering a reward to current employees who bring another job candidate onboard. These recruiting bonuses, also known as employee re16
ferral programs, foster a sense of trust in existing employees to refer good people that they -– and everyone will work well with. Of course, in order for these bonuses to be most effective, there should be some requirements to determine the success of the referral before the bonus is paid. These requirements often include working a set length of time, meeting certain standards, sustaining growth over a certain period and more. So-called “signing bonuses,” just like those we’re familiar with in professional sports, are becoming more and more common in today’s economy. A signing bonus is money that an ice cream or frozen dessert business gives to an employee who has accepted their job offer. A signing bonus is offered to attract well-qualified employees and convince them to accept a job. That bonus is usually in addition to the employee’s salary, benefits and other bonus or commission opportunities. Bonuses and awards must, of course, be included in an employee’s taxable income. Should the bonus or award be in the form of goods or services, employees must include the fair market value of those goods or services in their income. The Battle of the Minimum Wage While thousands of jobs are available and businesses are continuing to find it increasingly difficult to find workers, many experts say that those “bonus” unemployment benefits were not the problem, instead pointing to low wages, specifically, the minimum wage. Senate Budget Committee Chairman Bernie Sanders has a simple solution to the problem of hiring lowwage workers: Raise wages and pay decent benefits. The main argument against a nationwide $15-per-hour minimum wage is that it would make labor too expensive for poorer areas, prompting employers in those areas to shed jobs. So far, a local approach to the minimum wage dilemma seems viable as many cities and states pass their own $15-per-hour minimum wage initiatives.
Despite the minimum wage stalemate in Congress, the government has employed a number of tactics to help struggling businesses and individuals cope with the economic fallout of the pandemic. These include payroll tax deferrals, forgivable loans and refundable tax credits to reimburse employers for costs incurred providing paid sick and family leave to their employees as a result of COVID-19. Benefits to Attract and Retain Surprisingly, survey after survey seems to show that it is not money alone that attracts new workers and keeps existing employees on the job. It is the benefits -– at least for key employees and other fulltime workers. Obviously, no ice cream or frozen yogurt operation can be an employer of choice without a good benefits package. Employees are looking for a sense of security in the form of good benefits and retirement packages (a 401(k) is the most common, but there are many other options). Helping employees maintain their health and build a stable retirement shows job applicants -– and existing workers – the business values them. Also currently treasured by job seekers -– and those currently employed by many frozen dessert businesses -– are flexibility and the opportunity to balance work with other life responsibilities, interests and issues. Job training, educational assistance, and employer-provided vehicles used for business are among popular -- and often necessary -- working-condition fringe benefits offered by many small businesses. Job Training and Educational Seeking workers “outside-thebox” often means job training and many employers are finding ways to use a job-seeker’s previous job experience to place them in new careers. One example given cites the customer service experience of hospitality and restaurant workers -- and their ability to stand on their feet during long shifts, as an excellent entry point for light industrial work -- or vice versa.
The National Dipper
November/December 2021
