The blue-collar workforce is one of the most rapidly shrinking sectors in the United States. This is due to a number of factors, including automation and outsourcing. With the increased use of robotics, many blue-collar jobs are being replaced by machines. In addition, many companies have started to outsource their work to countries with lower labor costs, such as China and India.
For these reasons, it has become increasingly difficult for companies in this sector to find qualified workers and retain them once they are hired. The best way for these companies to improve their employee retention rates is by offering more benefits that will appeal to their workers and make them feel more valued.
Why Is There a Shortage of Blue-Collar Workers?
The shortage of blue-collar workers is a result of the increase in automation. The need for manual labor has been decreasing steadily due to the rise in automation.
The increase in automation is one of the major factors that led to the decrease in demand for blue-collar workers. Machines have replaced many jobs that were previously done by humans, such as manufacturing and construction. This leads to an overall decline in demand for those jobs and therefore, fewer people are needed to do them.
Plus, what is being called “The Great Reshuffle” has resulted in workers migrating to jobs they feel are a better match for their lifestyles and needs.
This Creates a Dwindling Spiral
As the demand for blue-collar workers decreases, fewer individuals are entering the workforce in those occupations. This creates a decrease in supply. Changes in employment due to the recent pandemic exacerbated the situation.
Even though the labor force is nearly at its pre-pandemic levels for most demographics, there’s a high demand for labor workers. Finding qualified and skilled employees has never been more difficult for businesses large and small.
With the heightened demand for skilled workers, companies are faced with the challenge of how to retain quality employees and how to attract more talented applicants. This can be a daunting task for any business.
What Can Companies Do to Retain Blue-Collar Workers?
To improve a company’s employee retention rates, it is vital that companies provide their employees with a living wage so they are able to afford their everyday needs. In industries like construction, retail, and warehousing, offering benefits and perks can create an incentive that may result in greater employee retention.
Companies can make their employees feel valued by giving them a sense of purpose. They can also provide employees with the opportunity to learn and grow.
An employee’s sense of purpose is what drives them to be successful in their job and the company. It is important for companies to know what drives each individual employee to help them find what they are passionate about within the company. This will not only make them more productive, but it will also help them stay at their jobs for longer periods of time.
Some ways that companies can provide employees with opportunities to learn and grow is by providing training programs or certifications for specific skill sets that are needed in the company.
Compensate Blue-Collar Workers for a Job Well-Done
Employee benefits have long been used as a method for enticing quality employees to a position without offering them elevated salaries. When a company is striving to retain its existing workforce, this can be a mutually-beneficial strategy.
Offering premium benefits not only compensates workers for a job well done but also motivates them to continue working hard for the company. Since it is easier, and less costly, to retain and even retrain existing employees than it is to hire new ones, this makes sense on multiple levels.