Small business owners across the United States face talent shortage

After 1 year and counting, challenges brought on by the pandemic continue to rattle small business owners.

Who knew a global pandemic would emerge and send the world into a tailspin. It’s nearly 16 months since the first lockdown in the United States in which many small business owners unfortunately had to shutter their doors because of government mandates.

Some SMBs did not survive despite the two rounds of PPP forgivable loans that the federal government handed out to help save jobs and the keep the economy going.

Strict restrictions and shutdowns led to challenges for SMBs

In some states with strict government restrictions, mandated shutdowns to the public were too lengthy to survive. Not only that but the unemployment monies people were able to receive ended up prompting the perfect storm — a shortage of workers.

While the issue is complicated, SMBs need people to fulfill their job duties. With the labor shortage, some SMBs have to close their doors or limit their hours of operation because they simply do not have the staff to support consumer demands.

Take a walk along main street in any city or small town, and you’ll see signs asking for help plastered across storefronts. Some seem to beg, offering sign-on bonuses. Yet jobs go unfulfilled. Entrepreneurs and business owners still can’t find people to hire, to show up on time. It is outrageous.

Shortages, shortages, everywhere

Also, the disruption to supply chain brought on (yes, you’ve guessed it!) by the pandemic, left shop owners with limited stock. There’s a lumber shortage. There’s a labor shortage.

In addition to these issues, we are seeing a shift in an unprecedented number resignations as people reflect their own career trajectories. The pandemic, it seems, has prompted a massive change in how and where people want to work. The pandemic taught us to consume less and that for certain occupations all one needs is a laptop and a wi-fi connection.

Welcome the work-from-home economy

The work from home phenomenon happened over night, out of sheer desperation as companies closed their offices, allowing employees to stay home. Now the whole return to office idea reportedly isn’t sitting too well with those who prefer the a short commute to the couch. The WFH economy has present its own set of problems. Cyber security breaches. And well, a wave of resignations and folks fleeing urban centers for a more modest, and adventurous, off-the-grid lifestyle now fondly called “Zoom” towns.

Be a leader promoting a positive culture to retain your best people

So back to the labor shortage. What the heck are small business owners to do? Well, first off, it is important to assess your salary and benefit offerings and compare them to the market rate. Are you paying what the competition pays? How about company culture? Do you foster an environment that is friendly or toxic? Would you work for you?

Take this time to evaluate your company culture and compensation. Do the best you can for your company, your employees and, especially the employees who have worked for you for a long time. Ask for their input on how you can do better.

Your employees are your most valuable asset. Without them, you company cannot grow at scale. In addition, your employees will see and hear things that you may have missed so getting their feedback on labor relations, hiring and training will be invaluable.