American Workforce

The US Bureau of Labor Statistics continues to report record numbers of US workers quitting. With 88% of executives saying they’re seeing higher turnover than normal, businesses are grappling to identify the underlying causes. One contributing factor to this wave of attrition is a shift in employees’ priorities. (pwc)

Next to rising costs, the biggest complaint from American businesses is the shortage of workers. According to surveys conducted regularly by the Institute of Supply Management, unmet labor needs have held back general growth prospects. Wage rates have risen, not enough to outpace inflation, but presumably enough to draw more people into the workforce or at least the search for work. They have done so, but still proportionately fewer Americans participate in paid work than historically. (forbes)

According to the U.S. Bureau of Labor Statistics, the average hourly wage of United States citizens as of December 2020 is $29.81, while the average weekly wage is $1034.41. This is a 4.8% increase in the average hourly wage from December 2019, which was $28.37, and a 5.9% increase from the average weekly wage in 2019, which was $973.09. (indeed)

Conclusion

Employee turnover at an all-time high means more time and resources exhausted by the contact hiring and training processes.

Wages are rising, but inflation is outpacing the rising wages. This deters people from entering the job market.

The shortage of workers means businesses will now have to be even more competitive in attracting new employees.

The demand businesses have from their customers is rising as wages rise and the American workforce is shrinking. Businesses can’t focus on growing their businesses when they are constantly understaffed. Understaffing can cause one of the biggest issues for any business: loss of revenue. Your business might be acquiring new customers, but as soon as you get them on board, with no care and attention given to them, they will quickly leave for one of your competitors.

Piling on the workload will not only decrease the quality of work, but it also puts an extreme amount of pressure on employees. Many may become overwhelmed with this extra work, struggling to get it all finished on time and due to this, will become stressed.

Why would anyone want to work for a business where they are being overworked, causing them to become stressed, as well as customers constantly complaining and leaving bad reviews? Well, the simple answer is, they wouldn’t.

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