Governors in 26 states have already eliminated the federal $300 unemployment benefit. For the other 24 states, roughly 10 million people who rely on jobless benefits will lose them on September 6th if Congress allows the Federal Pandemic Unemployment Compensation program to expire.
Jobless claims fell to a new pandemic low the week ending August 14, suggesting the labor market continues to heal even as the Delta variant causes uncertainty. Treasury Secretary Janet Yellen and Labor Secretary Marty Walsh said that while the extra weekly payments should expire in September, states that want to continue other pandemic benefit programs may use state aid they received as part of the $1.9 trillion Covid-19 relief package Congress enacted in March. If this happens in your state, this may not be good news for employers who are having a hard time getting candidates to apply.
Many retailers and other businesses are struggling to find candidates. When this occurs, hiring managers and everyone involved can get frustrated. We’ve been through times like this before, and we’ll get through this time as well. Cool heads prevail. One of the conundrums is, do you hire mediocre and risky candidates, or do you patiently and painfully wait to pursue candidates that are a better fit with better odds of exceeding your expectations? Many who are hiring hastily have regretted these decisions. In the long run, it’s expensive to hire poorly and months later you’re in the same place as you were to start with.
I recently went to a well-known chain restaurant that I used to like. The evening was a mess of bad hires with cold food. The manager came over making excuses about not having enough employees. Then, why did she book her restaurant full? She asked us to refer her candidates for hire, which is a good proactive idea. Meanwhile there are other restaurants we have visited that are on their game. Hasty hiring equals lost customers and revenue as well.
Fast food worker “Help Wanted” signs are abundant. In a recent article in USA Today regarding a study into the issues plaguing the restaurant world, they are facing a labor shortage despite a 10 percent increase in hourly wages. The study cited a few reasons for staffing issues including lack of childcare, mental health issues, and opportunities in other industries. Restaurant employers can overcome this by making employment offers that counteract the reasons that they are losing workers. Meanwhile the building, garden, courier, and warehouse segments have gained workers. If you’re losing workers to other positions or industries, you have no choice but to find alternative strategies so you can get these workers back.
For those who are staying patient with your hiring process, your strategy will pay off. Shortcuts are typically problematic with many processes. Let your competitors hire the bottom performers.
Hiring is challenging and there is a light at the end of the tunnel. Be patient and pragmatic. Please contact us if you want to schedule a call to discuss any of these topics.
