Many are throwing money at the problem by offering higher starting salaries, and in some cases cash just for applying.
At a time when prices are increasing just to cover higher costs of goods, a significant increase in labor is a model that can’t be sustained.
Actual studies have shown that while government assistance has been associated a bit with a reluctance to return to work, bigger issues include older workers withdrawing from the workforce, a mismatch between available job types and those willing to fill them, and childcare shortages.
What’s important for franchise owners to consider is that all of the above explanations are factors out of their control.
Gallup conducts an annual survey of workers throughout the world, and in 2019 reported that 52% of employed respondents described themselves as “not engaged” in their work, and 13% described themselves as “actively disengaged.” While these numbers were actually better than previous years, they still suggest a sad reality about life at work.
The time off afforded by the pandemic has allowed workers, from hourly to the C-suite, to reflect on their lifestyle and how their days are spent.
Those who value money the most will be the first to jump ship when a higher paying opportunity comes along.
I remember one franchise restaurant general manager who complained to me that he couldn’t motivate his team because the owner limited what he could pay in labor.
My work with his team revealed their dissatisfaction wasn’t a result of low wages, but low praise and recognition.
He just wanted to solve problems. I helped him understand that great leaders don’t just fight fires; they light fires.
Soon our team won our brand’s “Best Customer Service” award and my GM won “Manager of the Year.” I was eventually asked to speak at our brand’s franchise convention about how to build superstar teams. I explained it wasn’t about paying more money but paying more attention to what matters most — the same thing we should all be doing when trying to recruit and retain customers.
This shift is a new, collective sensibility among workers that while they’re willing to work, they refuse to suffer.
It just means extending the care you have for customers to the people you hire to serve them.