Labor shortage: we hear about it all the time. In fact, it’s been a hot topic for so long (albeit even more so in the past 3 years) that we can become numb to it. There are countless factors at play amidst all the noise about worker shortages, but one topic isn’t discussed enough:
What is the role of leadership in navigating a labor shortage?
The Unavoidable Truth
Today, the reality of the labor shortage is undeniable:
- The U.S. labor market has a staggering 11 million job openings, a number that’s near historic highs
- The average duration of unemployment has fallen dramatically, with more than half of the jobless finding work within 5 weeks
- In response to the tight labor market, wages are rising fast, with some industries seeing over 5% year-over-year increases—one of the fastest rates of growth recorded since the 1980s
So what to do? In a labor market like this, employers need to appeal to candidates more than candidates need to appeal to employers.
This starts with vision, mission, and culture, none of which materialize out of thin air. Rather, they come from people—usually leaders.
As for the effective implementation of vision, mission, and culture? Yup, you’ll need great leaders for that as well.
In other words, in a competitive labor market, the secret to getting great people is to have great people leading the way.
Leadership Over Strategy
In the business days of old, strategy and operations often overshadowed the many so-called “soft skills” tied to effective people management. But these days, few great businesses hold firm to that old way of thinking.
Welcome to the new era—one where more and more of your competitors understand that how we manage people is not only more important than strategy decisions, but is in fact a major component of those decisions.
In other words, in this labor market, people management is
- More pressing for you and your role
- Of more immediate concern to your organization as a whole
People are your greatest asset, bar none. So bringing in the best people, then getting the best from them, is the smartest investment a company can make.
Which means that effective leadership and team management isn’t just an aspect of business strategy—it’s central to it.
Empowering Leaders for Tomorrow
It’s not enough to recognize the importance of managing people effectively; leaders must actively cultivate skills that foster a supportive and motivating work environment.
Which leads us to a delightful point for you leaders out there: in a labor market like this, it’s perhaps easier than ever to make a business case for investing in leadership development.
Here are 3 places to start:
Free Coaching Call
Schedule a free intro call with a veteran coach—either to discuss your options for leadership development, or to actually bring up an issue and experience coaching in real-time. (Or, better yet, both!)
DIY Leadership Development
The most effective program for improving your people management is available to learn as a book, or to learn-in-action as an online course. Dig in here:
Or schedule a call and I’ll give you the TLDR in real time.
Leadership Blog Binge
These posts will provide you with a fabulous (and free) launch point for your leadership development efforts:
- The 1 Trait 97% of Exceptional Leaders Share (Long Before They Lead Anything
- Characteristics of a Leader: 3 Pillars of Team Motivation
- Leadership in Difficult Times
- Toxic Leadership: Identify It, Remove It, Prevent It
- Catch Them Doing It Right: 3 Tips for Effective Encouragement
- Overcompensate Your People
- Blocking, Tackling, and the Long-Game Courage of Great Leaders
- Fear Kills Creativity: Leadership Lessons from Cavemen
- Is a Passive Leader an Oxymoron?
- Are You Blind to Your Biggest Source of Waste?
Now that you have your work cut out for you, dig in! I hope you come away with lots of ideas that will help you navigate this labor market—and that you’ll share your feedback with me.
– Bill
Bonus: Lead through the Labor Shortage with Worker-Focused Offerings
While you’re continuously developing your leadership skills and making strategic decisions with employee retention in mind, consider some factors that today’s workers may take into consideration when assessing your company as a potential employer—or deciding whether to stick around.
- Upskilling and Reskilling: As industries evolve, there is a greater need for ongoing employee development. And your people love to grow! Leaders who invest in training programs help workers adapt to new technologies and methodologies, ensuring that their skills remain relevant and that the company can keep pace with changes. Plus, such programs can boost employee loyalty in a big way!
- Flexible Work Arrangements: To address labor shortages, many organizations are becoming more flexible with work hours, job sharing, part-time positions, partial retirement, and much more. How open-minded are you to the wide range of options? Your company?
- Health and Well-being Initiatives: The pandemic highlighted the importance of employee health and well-being. And many strong leaders are increasingly proactive in providing support through mental health resources, better health benefits, policies that prioritize employee well-being, and creative well-being initiatives.
- Remote and Hybrid Work Models: Leaders are focusing on optimizing remote and hybrid work environments to attract and retain employees. This includes redefining work policies, investing in technology, and working to help teams remain productive and engaged from various locations.
How are you working to attract more and better employees amidst this staffing shortage?
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