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The U.S. Labor Shortage & How Employers Can Keep Work staff Around Without Reducing Profits

If you’re like many employers around the U.S., you’re facing a labor shortage that’s leaving you desperate
with angry customers and difficult conversations with upper management. In this blog post,
entrepreneurs Colton Ward of Bespoke Media and Parmi Cheema of Jobility ( study the
market effects of the labor shortage, and what employers can do to surmount their employment scarcity
obstacles. To begin with, let’s try to answer several questions Hirers undoubtedly have, such as:

Why aren’t we getting candidates for our positions like we used to?

Where are these candidates now?

What can I do to get new employees to work for my company, and retain them?

Turns out, according to this thought piece from NYTimes– we’re not necessarily facing a labor quantity
issue, but rather a labor quality issue. Workers are getting burned out, particularly in service and
hospitality positions, and stress levels during a pandemic are at near record highs. Couple mask
mandates, long working hours with particularly unruly customers, low wages and job uncertainty, and
you’ve created a widespread walk-out maelstrom. It’s no wonder employees are quitting in droves, but
now we’ve reached a critical point for employers- facing the decision to either find unskilled workers to
train and pray that they don’t abandon their posts, pick up the slack themselves or simply pay employees
a higher wage. Let’s assume employers aren’t going to flip burgers for 16 hours a day, nor would they
prefer hiring workers with zero experience, leaving the only feasible options to increase wages or try
something different- like leveraging the gig economy.

But if I pay my workers more, that means my company’s profits will dip, right?

While it’s not universally the case, numerous studies indicate that when managers pay employees more,
workers are more productive, stick around more, and generally increase profits relative to pre-wage
hikes. Let us dispel certain preconceived notions regarding increasing employee wages:

If I give my workers raises, won’t I have to reduce my work staff?

Standard economic models would indicate that as wages increase, employment decreases, however one
found that, in fact companies that raised wages saw little to no reduction in employment. Let’s try
and qualify these findings: why wouldn’t employers need to reduce their staff if they’re paying workers
more? One possible explanation is what psychologists call a reciprocity effect; basically when workers get
paid more, they tend to return higher earnings in-kind by being more productive, providing better service
to customers/clientele, and helping build better brand equity for their employer.

But if I raise wages, won’t I have to raise the prices of my products/services?

One empirical study observing wage increases in over 400 fast food restaurants in New Jersey and
Pennsylvania yielded mixed results in their findings after increasing the minimum wage for their various
locations. This blog post won’t attempt to generalize the effects of wage hikes on the price of goods and
services; however the salient point is that increases in wages don’t necessarily indicate a direct
correlation between the two. Still unconvinced? This study found that the marginal benefit of adding
labor to stores actually exceeds that of the marginal cost. Basically, for all intents and purposes, your
company will make more money when you increase employee wages.

In closing, a labor shortage presents an opportunity to provide employees better benefits and quality of
life, which could catalyze your workforce to provide quality, productive work. During a labor shortage,
companies are taking advantage by providing more training to employees, which will make them feel
more purposeful, happier, stay at their positions longer, and most importantly will have a greater net
effect on your bottom line.

One of the quickest and most impactful solutions involves making changes to the recruitment process,
using Temp Agencies and Gig platforms is also another way to find short term workers quick. Gig
platforms like Jobility – allow employers to get matched with shift workers that are readily available and
fill those shifts when they have a high demand and can reduce the fill time by getting workers that are
available and make it easy to onboard and paying those temp workers with ease. To sum things up, pay
your workers more and try temp or gig workers to fill openings fast and save on operational costs.

As the a forementioned studies repeatedly manifest, it’s time to take the big leap and pay real wages to
your employees. And if not… well, those burgers aren’t going to flip themselves.


Colton Ward, CEO. Bespoke Media (

Parmi Cheema, CEO Jobility Inc (

Nov-11-21 a las 10:26 pm Uncategorized. Sin Comentarios

The Current State of the Food and Beverage and Light Industrial Economies

Wages are rising, people are going back to work, and talent is still hard to find.

America is getting back to work. Unemployment trends show a noticeable decline, from 6.1% in April 2021 to 5.5% in May 2021. Part of this trend is believed to be spurred by a number of states ending federal unemployment benefits as a way to woo workers back into gainful employment. Other symptoms could be the overall improvement of pandemic conditions, relaxed social distancing guidelines, and the availability of vaccines.

But now, many companies in the food and beverage and light industrial sectors are experiencing new challenges: attracting their share of a dwindling talent pool.

Here’s a peek at the current state of the economy for food, beverage, and light industrial sectors and what organizations can do to fill the gaps.

Talent Shortages Abound for Restaurants, Manufacturing, and Hospitality

While nearly 71% of employees were working from home (at least part time) during the pandemic, employees in industries like food, beverage, hospitality, and manufacturing weren’t offered that luxury. Instead, they faced a choice: continue working in person or find a new line of work.

Many restaurants saw their employees choose the latter. The State of the Restaurant Industry report notes that restaurants ended 2020 with 2.5 million fewer jobs compared to pre-COVID levels. Restaurants were harder hit than any other industry during the pandemic, and the majority report having staffing levels at more than 20% below normal levels.

Manufacturing companies are facing similar challenges, with projections that 2.1 million positions could go unfilled by 2030. About 1.4 million positions were lost in the early days of the pandemic.

Hotels are also having to stretch their workforce thing. It’s not uncommon for the person checking in guests at the front desk to also be the person cleaning the rooms. In some cases, hotels have to deny guests an available room simply because they don’t have the available staff to clean them.

Competition Leads to Higher Wages

For the past several years, lower-wage workers have been chanting for a $15 per hour minimum wage law change. Given the ongoing worker shortage, they might just get it without an official law.

Many companies are raising the stakes when it comes to hiring in an effort to attract quality talent. For example, fast food giant Jack in the Box reported that wages grew 5% in Q1 of 2021. Retailers like Advanced Auto Parts are also raising their wages just to be competitive. Basic laws of “supply and demand” are driving up wages, despite 58 Senators rejecting the chance to add a $15 minimum wage to the $1.9 trillion coronavirus spending package.

Filling the Gaps with Ready-Made Staffing

Even with wage increases, staffing is still a challenge for industries that rely on lower-skilled, on-site workers. In response, many companies are turning to creative problem solving by thinking beyond the typical staffing agency.

Jobility’s platform connects companies in food, beverage, and light industrial with vetted contractors and W2 workers. Companies of any size can get staffed quickly with pre-vetted candidates. Jobility removes many of the traditional risks of hiring, such as skills matching, background checks, and paperwork.

Explore the Jobility platform today to find your perfect match!


Aug-09-21 a las 1:17 pm Uncategorized. Sin Comentarios

When does it make sense to hire a regular employee instead of a temporary contractor?

In case you missed our last blog, we took a dive into the pros and cons of hiring a contract worker compared to a full-time employee. The benefits are attractive, but it’s clear that contract work isn’t always a perfect solution.

For comparison, let’s look at some of the pros and cons of hiring a regular employee. 

Pro: Greater Sense of Company Pride

Employees who are integrated with your culture and overall mission tend to feel more at home. They enjoy job security (something that contractors don’t always have) and may feel more inclined to represent the company well. They’re engaged in your mission every day, understand your long-term vision for the future, and can feel more like part of the team.

This level of engagement and consistency for a portion of your staff may be critical to reducing staff turnover, maintaining high employee morale, and growing your business.

Pro: Consistency and Control

©Wavebreakmedia via

Regular employees work for the company, not for themselves. This gives you more control over how, when, and where your employees work, which can build more predictability into your business. Should business pick up or slow down, you can adjust your employees’ duties and schedules as needed to focus on the most important tasks at the moment.

In addition, many business owners prefer the consistency of teams that work together regularly. You already know their strengths and weaknesses and can feel confident in delegating new tasks to them. Teams build a sense of camaraderie and trust and can work off each other’s energy. This isn’t always possible when your teams are constantly changing.

Con: Greater Long-Term Financial Impact

If you have short-term hiring needs, then hiring a regular employee might not make financial sense. The SBA says that a full-time employee actually costs 1.25-1.4 times their salary when you consider all the added benefits. Some of these extra costs, like employment taxes, are unavoidable. Others, such as training and equipment, are variable.

What’s more, when that employee leaves the company, you have to start your employee search over. SHRM notes the average cost-per-hire for companies is $4,129, and the average time to fill a position is 42 days. These figures don’t account for the cost of lost productivity and its impact on your customers.

Whether you decide long term or contract employees make more sense for your business now, Jobility can help find qualified, vetted workers to meet your needs. With competitive pricing and the added value of a dedicated support team and workers that have been background checked and available for your position, Jobility can be a great partner. Create a free account today at


Jun-30-21 a las 9:44 am Uncategorized. Sin Comentarios
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