How Smart Entrepreneurs Plan to Survive the Manpower Crunch Situation

With the current manpower crunch situation in the United States of America, entrepreneurs are expected to devise different ways to cater to labor shortages in their companies. The “big quits” is an economic trend where different employees voluntarily resign from their jobs.

This has turned the tables, and the CEOs of different companies in the U.S. are cowering in fear. Consequently, smart entrepreneurs are continuously developing disparate plans to survive the manpower crunch situation in the following ways.

Automating existing operations

With automation, all you need is supervision in the company. Research shows that every robot used in automation per 1,000 workers in the United States reduces wages by about 0.42%, and the employment-to-population ratio decreases by about 0.2%. These statistics clearly show that automating existing operations can help solve the manpower crunch situation.

Smart entrepreneurs incorporate Lean Six Sigma methodologies to reduce the wastages faced in the automation process. With it, the entrepreneurs can reduce the costs and maximize the business profits. According to Peter Peterka of 6Sigma.us, many companies have leveraged the benefits of these methodologies to increase their productivity and cut down on waste.

Opening up to different people

Smart entrepreneurs actively recruit seniors, veterans and other related employees that they didn’t consider before. Most employees retire at 60 years, but they actively look for different ways to keep themselves busy.

They consist primarily of experienced labor that is not utilizing its skills effectively. At this age, most of them, especially the veterans, are very healthy and can still function more effectively than a fresh graduate.

Research shows that by 2023 there shall be about 3.5 million military veterans in the workforce, and that is set to increase to 12.5 million by 2046. Smart entrepreneurs are finding the best possible way to have flexible schedules that can accommodate these veterans in their companies to solve the issue of the labor shortage.

Outsourcing employees

With the many job openings, the employees have realized better ways to work more flexibly than just working for years in a single company. Those that used to work in senior management do not feel the urge to work anymore in a controlled environment with the option of making millions while working remotely. 

Through contract-based employment, the outsourced employees perform as per the signed agreements. Some employees who quit their jobs formed different organizations to seek contracts. Instead of hiring all through the year, most business owners consider having contracts with outsource agencies to do away with the recruitment challenges.

Cross-training employees

For the processes of the business operations to remain running, entrepreneurs had to cross-train their employees on a variety of skills. Even the training doesn’t increase the headcount of the employees; it provides the company with well-prepared labor that can perform various functions of the organization. 

With dedicated cross-training, the entrepreneurs are also able to cater to the changes with the customer’s tastes and preferences. The cross-trained employed can then be shifted from one line to the other with flexible schedules to meet the target output of the company.

Continuous innovative thinking

No entrepreneur can claim that they are the best in business. Even well-established firms are being surpassed by their competitors in a matter of a few years. That’s because new problems are being discovered in various aspects of business, and the employees are not willing to stop leaving their jobs.

As a result, most smart entrepreneurs continuously develop innovative ideas to solve the manpower shortage situation. These creative ideas are meant to understand the primary reasons why most employees are quitting their jobs to get employment somewhere else. Some of the innovative ideas being applied involve better compensation package structures, employee engagement plans and providing a hybrid work environment.

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