Big Business Employment Struggles of 2019
Big business employment struggles of 2019 look quite different from those of only a decade ago. Understanding important trends is the best defense when handling them.
Big Business Employment Shortage
Despite declines in unemployment, strength in the US labor market beginning the 2019 year, has disappeared. Lack of qualified labor is not helping the matter.
In January, openings exceeded hires by a record 1.78 million individuals, according to Econoday: “Job openings keep rising and employers are increasingly scrambling to fill them.” Gregory A. Antonioli, the President of Out of the Woods Construction said:
“We are experiencing an extremely acute labor shortage in the trades while at the same time seeing more consumer demand than I’ve ever seen in my 26 years since founding this business.”
Big Business Struggles: Outsourcing and Remote Employees
The big business struggle for local talent means hiring remote employees and outsourcing. Michael Sims, founder and CEO of ThinkLions explained,
“After many local interviews, we still haven’t been able to find the level of quality talent that we need… This year, we’ve decided to hire a remote team to address this issue.”
Demographic Shifts Big Business Employment
National demographic changes force big businesses to modify employment strategies. Generation Z, seniors, and rising diversity all contribute.
Generation Z
Gen Z will comprise 36% of the 2020 workforce, says Entrepeneur. Big businesses are responding with better benefits, perks, and social missions.
Seniors Retire Later
1995 Americans anticipated retiring at age 60. Today retirees shoot for 66, wrote Gallup. Higher seniority pay and health and disability claims force big businesses to hold off on promotions for younger employees.
Corporate Businesses and Diversity
The human resources experts observe: “Today, the number of people living outside their country of birth is larger than at any other time in history.” Diversity adds to a large company’s human assets, but adaptation can be difficult. Diversity-focused communication, education, or a diversity facilitator can help.
Big Business Employment Turnover
Accuchex reports that employee turnover is costing U.S. companies over $160 billion a year. “Employers from healthcare to logistics to manufacturing are all complaining about the same thing: The inability to hire and retain qualified employees. … The current state could and should be labeled a crisis,” according to the Workforce Institute, especially with turnover at 10.8 to 13.2% annually in …
- Technology and software
- Retail and consumer products
- Media and entertainment
- Professional services
- Financial services and insurance
- Telecommunications
Big Business Struggles: Compliance and Liability
High turnover has always been expensive. Today, however, regulatory compliance and liability training raise the cost.
Big Business Employment Security Problems
Good employee relations and a guard to watch the door no longer keep employees safe. Data analytics and complicated security protocols help keep a handle on their data and performance.
Cyber Security and Big Business Struggles
Preventing security breaches has become an important expense. “The ‘2017 Cost of Data Breach Study’ put the average cost of a breach at $3.6 million, or $141 per data record.”
Even Today Big Business Struggles with Traditional Crime
Offline crime and social issues have made workforce management more expensive. Here are a few examples:
- Bullying has become a household word, and big businesses must deal with it.
- Workplace violence and active shooters in the media have placed the nation’s workforce on alert.
- Substance abuse has increased in populations that provide strength in the workforce.
- Theft of “non-cash” property … jumped from 10.6 percent of corporate-theft losses in 2002 to 21 percent in 2018.”
Big business struggles in 2019 stem largely from globalization, changing labor forces, and changing attitudes. Successful big businesses employment means adaptation in a fast-moving world.