8 minute read
Job Market Shifts
GuestColumn What’s Driving the Current Talent Shortage?
By Kevin Loux, Chief Impact Officer, Charlotte Works and
Raquel Lynch, Chief Program Officer, Goodwill Industries of the Southern Piedmont
With over 43 million Americans quitting their job in 2021, the “Great Resignation” is no longer a trend, but a paradigm shift. Many employers lament this as a signal that no one wants to work. The recent narrative has focused on unemployment benefits replacing wages and portrayed this as a matter of “lazy and entitled” workers, when in fact, the behavior of today’s workers is not caused by laziness but by rational decision-making. While employers are used to having leverage, the reality is that the same market forces driving the success of a business’s product or service are now impacting their ability to secure talent.
Businesses are familiar with the impacts of economic globalization through e-commerce but are now seeing these same forces impact their workforce. With the increased availability of remote work, the demand for talent isn’t geographically limited, meaning employers have more competition. Just as e-commerce has benefited adaptable companies and put others out of business, the shift in the job market has the same power. Even companies without remote positions must consider that someone with the skills to work remotely may do so, reducing the supply of local talent. This is also complicated because the labor market has a backward bending supply curve, which means that beyond a certain level of pay, most workers will value increased leisure time over increased wages. This effect also extends to the quality of position in terms
Kevin Loux, Chief Impact Officer at Charlotte Works
Raquel Lynch, Chief Program Officer at Goodwill Industries of the Southern Piedmont
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of flexibility and culture, where individuals may take pay cuts for companies that provide a better lifestyle.
While this is an overly simplistic analysis, it is illustrative of today’s labor market. The reality is that the talent shortage is disproportionately affecting employers with lower-quality positions. This could mean low wages, difficult working conditions, a toxic company culture, or all of the above. Many employers were quick to increase wages, but still struggle as they overlook other factors. Workers have more options now, and attracting and retaining talent is about more than just pay and location. A recent talent survey by Charlotte Works and Goodwill of over 200 local individuals found that while wage was important, an opportunity for career advancement was more critical. Even 58 percent of currently employed individuals were actively looking to leave their job. Many see the talent shortage as an opportunity, leaving lowerpaying jobs for higher-paying careers.
With quit rates at a recent high, how do you retain talent? The top factors from our survey were flexibility, culture, and workload balance. Embracing remote work when possible, looking at preventing burnout, and keeping workers safe are all critical parts of a multi-pronged talent retention strategy, validated by our findings.
What does this mean for employers struggling to attract or retain talent? Almost a century ago, Henry Ford faced similar issues, cut his workweek in half, and doubled his workers’ pay, improving productivity and setting a new standard. Today increased pay, and shorter workweeks are also being revisited and yielding similar results. Instead of competing in today’s red ocean of talent poaching, maybe it is time to find a blue ocean of talent. A recent study from Harvard University found there are 27 million latent workers nationally. This is a talent pool that wants to work, but they are currently not able to. This includes part-time workers that want full-time work and workers that have stopped looking for work, even if they want to work. If they want to work more, why are these latent workers not applying? In the study, 84 percent found the application process too difficult, and many had to submit 20 to 40 job applications to get a single offer. Employers willing to rethink job descriptions, streamline their applicant tracking system, and remove excessive experience requirements will have a competitive advantage. Removing unnecessary barriers helps employers tap into the talent Charlotte Works and Goodwill work to upskill and prepare for careers.
As an employer seeking commitment from job seekers, what are you willing to commit to in return for loyalty and productivity? We invite you to look at your talent development and recruitment efforts, but most of all, look at your core values. Those lived values will drive job seekers to you and to stay. Money is an essential factor initially, but culture and a commitment to your workers are equally important. Before you renew your employee-focused efforts, take time to analyze the number of quality jobs you offer, consider updating your staffing plan, but most of all, don’t be a “lazy and entitled” employer in the eyes of job seekers. P
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The Charlotte Area Transit System (CATS) is looking for minority-owned, women-owned, socially and economically disadvantage businesses to become certified Disadvantage Business Enterprise (DBE) firms. We are encouraging business in the following areas to consider becoming DBE certified: • Engineering • Legal • Structural Steel • Electrical
The Charlotte Area Transit System (CATS) is looking for minority-owned, women-owned, socially and economically disadvantage businesses to become certified Disadvantage Business Enterprise (DBE) firms. We are encouraging business in the following areas to consider becoming DBE certified: • Engineering • Bridge Painting • Legal • Security Services • Structural Steel • Construction Paving • Electrical • Surveying
The Charlotte Area Transit System (CATS) is looking for minority-owned, women-owned, socially and economically disadvantage businesses to become certified Disadvantage Business Enterprise (DBE) firms. We are encouraging business in the following areas to consider becoming DBE certified: • Engineering • Bridge Painting • Legal • Security Services • Structural Steel • Construction Paving • Electrical • Surveying
The Charlotte Area Transit System (CATS) is looking for minority-owned, women-owned, socially and economically disadvantage businesses to become certified Disadvantage Business Enterprise (DBE) firms. We are encouraging business in the following areas to consider becoming DBE certified: • Bridge Painting • Engineering • Security Services • Legal • Construction Paving • Structural Steel • Surveying • Electrical
The Charlotte Area Transit System (CATS) is looking for minority-owned, women-owned, socially and economically disadvantage businesses to become certified Disadvantage Business Enterprise (DBE) firms. We are encouraging business in the following areas to consider becoming DBE certified: • Engineering • Legal • Bridge Painting • Structural Steel • Security Services • Electrical • Construction Paving • Surveying
The Charlotte Area Transit System (CATS) is looking for minority-owned, women-owned, socially and economically disadvantage businesses to become certified Disadvantage Business Enterprise (DBE) firms. We are encouraging business in the following areas to consider becoming DBE certified: • Engineering • Bridge Painting • Legal • Security Services • Structural Steel • Construction Paving • Electrical • Surveying
• Geotechnical • Interior Finishes • Landscape Architecture • Welding • Bridge Painting • Security Services • Construction Paving • Surveying
What This Means For Your Business • Opportunities to compete for federally assisted transportation, aviation, and highway contracts • Become an integral part of enhancing the community one project at a time What This Means For Your Business • Opportunities to compete for federally assisted transportation, aviation, and highway contracts • Become an integral part of enhancing the community one project at a time What This Means For Your Business • Opportunities to compete for federally assisted transportation, aviation, and highway contracts • Become an integral part of enhancing the community one project at a time What This Means For Your Business • Opportunities to compete for federally assisted transportation, aviation, and highway contracts • Become an integral part of enhancing the community one project at a time What This Means For Your Business • Opportunities to compete for federally assisted transportation, aviation, and highway contracts • Become an integral part of enhancing the community one project at a time What This Means For Your Business • Opportunities to compete for federally assisted transportation, aviation, and highway contracts • Become an integral part of enhancing the community one project at a time
Visit ridetransit.org and click on “Civil Rights” to learn more about the DBE program. Scan the QR code to see all available contract opportunities with the City of Charlotte. Visit ridetransit.org and click on “Civil Rights” to learn more about the DBE program. Scan the QR code to see all available contract opportunities with the City of Charlotte. Visit ridetransit.org and click on “Civil Rights” to learn more about the DBE program. Scan the QR code to see all available contract opportunities with the City of Charlotte. Visit ridetransit.org and click on “Civil Rights” to learn more about the DBE program. Scan the QR code to see all available contract opportunities with the City of Charlotte. Visit ridetransit.org and click on “Civil Rights” to learn more about the DBE program. Scan the QR code to see all available contract opportunities with the City of Charlotte. Visit ridetransit.org and click on “Civil Rights” to learn more about the DBE program. Scan the QR code to see all available contract opportunities with the City of Charlotte.
