Solutions for Your Workforce Challenges

• January 17, 2022
• Carey M. Heyman, CPA

Throughout the COVID-19 pandemic, small- and mid-market companies faced increased financial and operational concerns that have ranged from liquidity needs, compliance, and debt obligations to loss of production and supply chain disruption. However, when addressing workforce concerns, organizations that offer their employees the following have consistently emerged as better prepared to weather the uncertainty of the pandemic and the troublesome times that might still be ahead.

Market-based compensation structure

Employers can incur only so much in payroll costs, but talented employees expect to be compensated at market rates. When the workforce first became disrupted by COVID-19 pandemic, many employees left to pursue jobs with higher compensation, taking advantage of the competitive and ever-changing job market. As the pandemic persisted, employers who were able to maintain employee salaries at pre-COVID levels, generally retained their talent and experienced less workforce disruption. 

Flexibility and competitive wages

Job flexibility was important even before the pandemic, because we live in a busy world filled with people juggling countless responsibilities. The flexibility that employers were forced to provide to employees during the COVID-19 pandemic has come to be expected as part of a permanent work arrangement. Whether you allow alternative hours or the ability to work from home, offering some type of flexible schedule can give employers a better chance of retaining and attracting talented workers.

Employees who aren’t providing a more flexible or hybrid work arrangement are voting with their feet. The recent 39-year high inflation reporting is compounding the issue; alongside workplace flexibility, compensation became one of the top-three reasons for quitting a job. In the fall of 2021, these catalysts fed into voluntary resignation rates 50% higher than the past 10-year average and represent Job Openings and Labor Turnover Survey all-time highs.

If employers do not adequately address workplace flexibility and market competitiveness, employees may continue to perpetuate the “Great Resignation” far into 2022.

Stability

The COVID-19 pandemic brought an incredible amount of uncertainty to people’s lives – both at home and in the workforce. This uncertainty increased employees’ desire for more stability in their jobs. If a talented employee didn’t know whether their position was secure, they were more likely to look elsewhere for work. Employers who conveyed a sense of stability throughout the pandemic were more likely to reassure and retain their talented employees.

Family culture

Small- to mid-market companies are like a family – tight-knit, close and diverse. A strong family is caring and supportive of one another. Companies that provide a safe and compassionate environment for employees may discover their workforce is more adaptable to situations similar to the COVID-19 pandemic.

Additionally, talented employees continue to show a preference for working in organizations that promote diversity, equity, and inclusion (DEI). Building a strong culture centered around DEI enables employees to bring their different beliefs and perspective to the table, which translates to happy employees and customers.

Challenges 

Many talented workers find a challenging job appealing because they can learn new things and collaborate with others. Companies that offer new challenges and diverse opportunities are more likely to keep their employees interested and engaged, which can in turn, lead to increased productivity. Providing employees the autonomy to problem-solve can also help cultivate self-assured and competent employees.

How we can help

At CLA, we are here to help you overcome workforce challenges by providing Human Resources consulting and outsourcing, outsourced CFO-level services, search services, and real-time scenario modeling. We can help you navigate today’s competitive labor market so you can attract talented and loyal people that fit your company’s culture and vision.

Thanks to Kevin Mullin for authoring this blog post!

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