What do today’s workers really want? What the Labour Shortage is telling employers

For anyone in the business of hiring, the data is fairly clear: employers looking to hire are struggling. By the end of April 2021, job openings in the US rose to an unprecedented 9.3 million, according to the Bureau of Labour Statistics, with Irish companies pulling workers out of retirement and double-jobbing to keep things afloat. 

As the world reopened and more people got vaccinated, many economists predicted that people would quickly return to work. But things haven’t turned out that way, and consumers are feeling the pinch. Restaurants and cafés have resorted to limited menus and hairdressers remain closed half the week. In Ireland, many blame the Pandemic Unemployment Payment (PUP), claiming that the temptation to earn free money rather than work for it is too high. The primary belief then, is that reducing the PUP will return everything to where it was in pre-pandemic times. But that’s just too simplistic. Will giving unemployed individuals less money fix this worker shortage? Hardly. 

What are workers looking for

Perhaps the answer to this question is less about worker pay and more about worker rights and desires. Workers today, still fighting through a pandemic, have gained perspective and are hungry to make this time count. Like everyone else, they’re looking for work that suits them as much as they suit it. And as for what they’re looking for while doing this work, it really couldn’t be easier:

1. The same benefits as before

The pandemic did all but sever the relationship between employers and employees. For the employees who were let go as opposed to furloughed, wishing for a return to the same job has never gone away. When they finally got the call, their previous job might not have been what they were offered; part-time roles instead of full-time, some without health insurance and so on. 

What is desired by employees today is a direct match to their job before, and workers want employers to know that. So, when hiring, consider the needs of the applicant, and meet halfway when it comes to compromisation. 

2. Empathy

The COVID-19 pandemic has resulted in a huge shift in how we care for families. Some people have moved across the world to take care of relatives, some are chipping in to look after the children of those suffering, and others have realised that life is short and are trying for children of their own. Many people want to return to the workforce, but can’t because they have a child or family member to care for. They want a job that allows them the flexibility to take time away from work to care for a child or family member. And if this isn’t possible, they need schools or daycares to open so they can go to work while their children are properly supervised. 

With the myriad of ways COVID-19 has infiltrated the home, those affected have had to pick up the slack. This may very well affect their workability, but flexibility and empathy right now is key. 

3. A better work/life balance

Thanks to COVID-19 forcing many businesses to offer telecommuting, remote workers are starting to realise that having greater work flexibility is possible – meaning that workers are starting to desire, and even expect, the option for remote work.

Before the pandemic, many employers would tell their workers that they had to come into the office. Now, it’s much harder for employers to justify an office presence when their workers have been doing a fine job working from home. This doesn’t mean there will be a complete shift from office work to remote work, but maybe employees feel that coming into the office only three or four times a week is necessary and they can use their extra day or two working from home to achieve the work-life balance they’ve always wanted. 

A smaller office presence also allows for extra parking spaces, a potential to downsize office space and happier workers overall. 

4. Non-stagnant wages

Stagnant wages have been a major problem for decades. According to a study by the Economic and Social Research Institute (ESRI), research found that earnings have flat-lined for young people entering the Irish labour market and that workers in their 20s are – in real terms – earning less than they did in the 1990s and 2000s. This means that they’re financially worse off than their parents. And it’s not just in Ireland. In 1968 America, the federal minimum wage was $1.60 an hour.  In 2021 dollars, the equivalent federal minimum wage would need to be $12.38. But instead, it’s only $7.25. So even before the coronavirus hit, workers were already being underpaid. Yet they had little leverage to demand higher wages.

As a result, millennials in their 20s and 30s are likely to be the first generation in Ireland to have lower living standards than the previous one. Historically, every generation has enjoyed a higher standard of living than the one before. That being said, most employers can’t afford material wage inflation – but a consideration into the struggles workers have to put up with in an inflation-heavy world, especially after the two years we’ve just had, goes a long way.

5. A safe place to work

Tipped workers across the world are among the worst affected by way of the pandemic, with restaurant servers and baristas being among the first to go as these professions usually rely on face-to-face contact. Coincidentally, tipped workers are sexually harassed at far higher rates than non-tipped workers, with more than 70% of female restaurant employees stating that they have been sexually harassed, according to a piece in NPR. With dependance on tipped wages, comes an eagerness to remain quiet and please; a ‘service with a smile’ attitude that can cost much more than their weekly wage. Workers who are keen to return to the café/spa/salon want to do so safely, especially given the two years that’s in it. 

Team effort is the only way forward.

Before COVID-19 ravaged the economy, few workers resided within the position of demanding benefits they wanted or leaving a job that didn’t live up to them. Now, workers possess more bargaining power to get what they want, not to mention the motivation to do so. Employers should be aware of this when it comes to hiring new staff, and should use it as a tool to treat employees fairer, better and with more respect than ever before. The COVID-19 pandemic has allowed us to really realise that a team effort is the only way forward.

The leading financial advisor to the SME sector in Ireland. 

We at Fitzgerald Power want to help you add real value to your business. We are as much a team of creative entrepreneurs as we are accountants. And we are passionate about supporting those of you driving innovation – empowering you to convert your ideas into realities. We want to see you succeed because it matters. For those looking to explore their options and find out more about what we do, contact our specialist team of Noel Winters and Johnny O’Sullivan today. 

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