Survey: Nearly 75% of businesses affected by labor shortage

Iselin-based Provident Bank is out with the results of its 2022 National Labor/Staffing Shortage Survey, which comes at a critical time as businesses face a number of challenges, especially on the hiring front.

The findings, released Oct. 20, reflect feedback from 1,000 hiring managers and department heads, small business owners, recruitment and talent acquisition specialists, and compensation and business managers to determine how businesses are dealing with the consequences of the labor shortage.

The topline and most notable figure shows that nearly 75% of American businesses have been affected by the staffing shortage, as companies big and small struggle to attract and retain talent in a very tight labor market.

Turning down business and cutting back operation hours were among the most cited ways that the trend has affected businesses. Those surveyed also noted that a high turnover rate and the inability to fill crucial roles added more stress to business operations.

Some of the common themes as to why employees were leaving their jobs included: low salary, the inability to work from home, uncompetitive benefits, child care issues and burnout.

More than 33% in the survey noted that, in an effort to retain or attract talent, their company revised perks and benefits — such as tuition assistance, enhanced paid time off, child care reimbursement, additional paid sick and holiday leave, 401(k) matching, and sign-on bonuses.

Other key findings include:

• 69% of businesses have had candidates decline opportunities because of better offers; 79% of that group have attempted to combat this issue and remain competitive by raising salary offerings by up to 20%.
• 40% of survey respondents were small business owners — of that group, 60% said their company has been impacted by staffing shortages.
• 85% of individuals employed by a business with more than 101 employees reported impacts due to labor shortages.
• The most common employee perks implemented to attract and retain employees included wellness stipends, casual dress code and extended maternity/paternity leave.
• The importance of hybrid and work from home options were a common theme among responses, with 57% reporting their company instated either or both options to attract and/or retain talent.

“Organizations that are placing the employee experience at the center of their business strategy are benefitting from improved retention rates and the ability to attract talent during the current job market,” said Provident Bank President and CEO Anthony Labozzetta.