JSG Blog

Keeping clients and candidates current.

Overtime is Not the Solution for the Labor Shortage

Overtime is Not the Solution for the Labor Shortage

There is one thing almost every employer can agree on – hiring qualified candidates in today’s labor market is like fighting an uphill battle. As the U.S. economy continues to recover, it has become increasingly challenging for companies to hire and retain workers. Companies like Amazon and Walmart have plans for significant hiring pushes and must be creative to fill those seats. A recent global survey of nearly 45,000 employers reports that 69% of them are struggling to fill vacancies. But with a lack of applicants, many companies are resulting to overtime to solve these shortages. However, this will lead to more labor shortages, and other issues down the road, and here is why.

Overworking your staff will make the situation worse

When there is a labor shortage at your company, work still needs to be done. So, while your internal recruiting team is diligently trying to fill those vacant positions, the obvious solution is having your staff work overtime. Some workers embrace this initiative with open arms because of those more lucrative paychecks. However, this excitement swiftly drifts away after weeks and weeks of being overworked. As this issue lingers, those long hours will eventually impact your staff’s mental health with the additional stress. The result of this extra stress is more resignations, which will only perpetuate your staffing shortage.

Also, when your staff is burnt out, the quality of their work and attention to detail starts to dwindle, resulting in quality issues, and ultimately, a hit to your bottom line. So, lots of overtime may be a quick fix to your production needs but will suddenly become detrimental to your team’s morale and productivity.

Attracting and retaining workers

So, with overworking your staff not a sound solution to your labor shortages, what can your team do to keep production on point? One way to attract and retain talent is to offer comprehensive training programs for your staff. The same survey above reveals that 40% of employers offer training and development to attract and retain talent. The Pule of the American Worker: Special Report also revealed that only 48% of workers have participated in employer-sponsored skills training in the past year. That is down 10% from August 2019. Therefore, employers need to actively offer skills training for workers to keep them engaged and help reinforce their toolbelts. By investing in your staff, you illustrate that you care about their development while helping them prepare to take on more responsibilities or even transition into new roles as demands change.

Partnering with a recruiting firm

Retooling your staff will only get you so far. Today’s labor shortage will be a thorn in most employer’s side throughout the fourth quarter and even into the new year. If your internal recruiting team is at its wits’ end, have you thought about partnering with a recruiting firm? At JSG, we can work with your hiring team to design a staffing solution specifically for your company’s needs. We work hard, we work together, and we work for you. Let’s have a conversation and see how we can impact your hiring efforts in this unprecedented market.

Share It

Facebook
Twitter
LinkedIn