The pandemic is the current measuring stick used to determine the U.S. labor shortage. Experts have classified the pandemic’s impact as the biggest employment catastrophe since the Great Depression. More than 30 million people were unemployed at the pandemic’s height, and more than 120,000 businesses closed temporarily. That statistic was followed in 2021 by a surge of 3.8 million new jobs, but the surge in jobs wasn’t enough to compensate for the number of lost employees. Approximately 60% of the jobs that disappeared during COVID came back, but the remaining 40% did not. The takeaway is simple: the U.S. currently has more jobs than it has people to fill them. And that’s a problem for every industry. Several factors are to blame. Baby boomers were well on their way to retirement before the pandemic hit, and many people chose to move up their retirement because they saw it as a great time to step away from work. However, some regretted that retirement decision, especially when it proved less fulfilling and they were not as financially secure as they had hoped. Many people looked at their lives and decided it was time to change directions. Also, don’t forget that over a million people have died from COVID and its variants. Regardless of the reasons behind the employee shortages, retaining employees has never been more important for any business. And dealerships are not exempt. According to WORQDRIVE CEO Tracy Parsons in an article dated June 14, 2022, the cost of losing employees was almost $2.4 trillion in 2021. That’s bad enough, but replacing qualified employees who leave your dealership may not be easy. Many companies have realized the importance of retaining committed employees who understand the work culture. As a result, reducing headcount and leveraging variable staffing models are probably not what should pull one’s focus right now. Mercer published a 2022 report called Rise of the Relatable Organization: Global Talent Trends. Almost 11,000 people in 16 different places and 13 industries took the survey. Of the respondents, 22% were C-suite executives from high-growth companies. Another 23% were HR leaders who spent the first part of their careers working on the business side; the move to HR was recent. The remainder were line employees, where approximately 24% worked on-site, 45% worked mostly remotely, and 30% had a hybrid work arrangement. If you are concerned about preventing high turnover, one approach is doing what you can to help employees feel happy enough in their work to stay, which raises an interesting question. Since competitive wages and good benefits are obviously important, assume you have that part covered. What else motivates people to stay working? Mercer’s introduction described the post-pandemic recovery as “fragile.” As they report, the labor market has changed. Everyone is still fresh from the effects of the last two years, and Re taining by Training 8
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