As we emerge from pandemic-related shutdowns, it seems like almost everyone is hiring.
The hospitality industry has been one of the hardest hit by staff shortages; many restaurant owners report having to pick up serving and kitchen shifts themselves. Others have spent hundreds of dollars on advertising open positions, with minimal success. The signs in the window are getting worn, and social media ad budgets are wearing thin.
Finding people willing to work, especially at more entry-level jobs, is a huge challenge. As a result, some restaurants remain closed or only offer takeout due to a shortage of staff.
Ian Tostenson, President of the BC Restaurant and Food Services Association, has estimated that the restaurant industry has lost between over 40,000 of its approximately 190,000 staff during the last year and a half.
The hospitality sector certainly isn’t the only industry facing the challenge. BC Ferries has had to cancel sailings due to staff shortages - and they are now looking to hire for over 100 positions.
Anecdotally, many of those who have left have no plans to come back. Some have moved to more affordable locations further away, others sought work in other industries. Government assistance in the form of CERB and the expanded EI system is often cited as a disincentive for entry-level work.
There’s a fundamental shift that happens when the ball is in the employees’ court. Business owners are forced to accommodate the needs and whims of new hires, but sometimes put up with subpar performance. Otherwise risk losing them and having to start the process all over.
When businesses don’t have adequate staff, they can’t innovate or pivot – they’re just focusing on staying afloat.
The long-term ramifications here are serious. Businesses that can’t innovate shut down. With fewer available jobs, this trend will one day reverse.
The best thing business owners can do now? Get as lean as possible and focus on innovation. Automate as much as possible and refocus on your unique value proposition.
This is the time to nail down what you offer that’s different, and why. The more of a niche you carve out, the more exposure and credibility you gain, the better positioned you will be to face the future.
Ada Slivinski is the Founder & Principal of Jam PR, a boutique agency focused on helping small businesses get big exposure. You can reach her at [email protected]
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