Chances are, if you’ve walked into a store or place of business recently, you’ve noticed a marked lack of employees. You may have seen fewer items on the shelves, had to wait long periods for service, or observed unexpected closures of your favorite shops. Why is all this happening? Businesses across the United States are struggling to find enough employees to run their businesses successfully. Covid-19 has affected the world in a variety of ways and one of the most impactful effects on businesses is the current labor shortage. This has created hardships for everyone involved, from business owners and the remaining employees, to customers and anyone else who deals with the business.
For business owners, this 2022 employee shortage is likely causing serious issues in your ability to function properly. You may be experiencing problems with production, deliveries, obtaining the supplies you need, serving your customers properly, and all this results in a tight bottom line. Feeling stressed and concerned about the future of your business and others in the United States? We get it. Nowell Agency is here to discuss the 2022 labor shortage and share tips on what insurance products best protect your business.
Reasons for the 2022 Labor Shortage
When the pandemic began and the world shut down, many people lost their jobs. During that time, people across the globe began to reassess their employment strategies and future plans. Many employees decided not to return to the workforce, others chose to continue working from home or cut back on hours, and still others simply haven’t decided if they’re going to return to work yet. Although the world is beginning to reopen, the United States had roughly 11 million positions that were unfilled at the end of 2021. The resulting strain and stress this has placed on remaining employees has caused many of them to quit their jobs. The impact of Covid and this “Great Resignation” is why we’re seeing the current workforce shortage.
Why are people not returning to the workforce in 2022?
Covid-19 risks: Many employees feared a higher exposure to Covid-19 in workplaces, especially those that have a higher number of people moving in and out of the workspace or where employees work in a confined space.
Early retirement: Many elderly employees felt more exposed to the risks of Covid-19 in the workplace. As a result, many who were close to retirement age decided to retire early.
Caregiving responsibilities: The pandemic caused many people to become primary caregivers for children or elderly relatives. This has largely fallen to females, which has caused over 3 million women to leave the labor pool.
New business ventures: Many people decided to take advantage of the pandemic to start their own business. Applications for new businesses in 2020 increased about 30%!
Stress and lack of support at work: Those who worked during all or parts of the pandemic experienced increased stress and decreased support from employers (in the form of poor benefits, lack of flexibility in the work schedule or the ability to work remotely, and excessive hours or increased responsibility without adequate compensation). Thus, many workforce participants experienced burnout and are now deciding to leave their positions.
How to Protect Your Business During the Employee Shortage
With the future of the economic market in the United States in a precarious position, it would be prudent to protect your business. There are several insurance products that are designed to do just that. Business Interruption Insurance protects you financially during times of low or non-production. With the high levels of burnout existing employees are often currently experiencing, avoid employment-related claims with the best Employment Practices Liability. Offering a great Employee Benefits package enables you to attract more candidates. Protect your business and contact Nowell Agency today! We’ll work with you to tailor a comprehensive insurance policy that covers your business for the unexpected during these trying times. Call us for a free quote or learn more about our business insurance products with a click!
GET A QUOTE
The Nowell Agency is committed to providing you with fast and efficient service. If you would like a quote on any of our products please complete the short form below and click submit.
Get A Quote Form
Insurance Ideas • Advice • Strategies
FROM OUR CLIENTS
The Nowell Agency has been my primary agent for many years and they are attentive, well-staffed, and easy to talk to. Their agency has helped me through state to state moves and career change and kept my assets covered.
My very first insurance experience was when I bought my first house and I called the Nowell agency for a quote. I had no idea what I needed or how much and they were so very kind and knowledgeable and explained everything to me in detail which I so much appreciated. That has been 4 years ago and im still a customer never plan to leave.
I have been very pleased with the quick and professional service by the Nowell agency. My agent was very efficient at locating a policy that met my needs and budget. Thank you to Kristy and the Nowell agency for providing me with fantastic customer service. I highly recommend this agency. You will not be disappointed.
The reality of doing business is that your organization is going to face risks. The dangers that threaten your livelihood can result in your business being held accountable for legal and financial responsibilities that can quickly become overwhelming. As a result, many business owners purchase insurance policies for protection against the fallout of such losses. […]