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How to Manage a Staffing Shortage: A Guide for Employers

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Indeed’s Employer Resource Library helps businesses grow and manage their workforce. With over 15,000 articles in 6 languages, we offer tactical advice, how-tos and best practices to help businesses hire and retain great employees.

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Staff shortages might put increased pressure on your staff and management team. Whether you’re dealing with a long-term staffing shortage or frequent shortages due to employee absenteeism, leading your team effectively through the situation can help minimize the impact.

Learn more about shortness of staff and how to navigate it.

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How staffing shortages affect your team

You likely understand how staffing shortages affect your organization’s financial health and productivity. However, knowing how it impacts your employees can help you support them where it’s needed most.

A staff shortage could affect your employees in the following ways:

  • Increased workload: Staff shortages tend to create more work for your team. For example, your current team may have to handle the extra workload or responsibilities outside of their daily tasks when there aren’t enough employees.

  • Inefficiency: Employees who take on extra duties or multitask at work may experience increased stress. Staffing shortages may also interrupt processes that aren’t being completed due to a lack of employees.

  • Decreased performance: Your employees may show a decline in their work performance due to handling extra duties or the decreased morale of being short on staff. If customers notice a change in performance or quality, it could affect your sales.

  • Employee burnout: Long-term staffing shortages could increase employee burnout rates because of increased expectations or longer work hours. Burnout can lead to higher turnover rates.

  • Safety concerns: In some industries, inadequate staffing puts employees at a higher risk for safety issues. In a warehouse setting, workers may attempt to offer support to those in other specialties without having the proper warehouse-specific training. In the case of nursing shortages, you could also increase safety risks for patients.

Challenges of managing through a staffing shortage

You may have to make difficult decisions during staff shortages. This could include scaling down your business by decreasing production, stopping new product development and reducing hours or services.

You may also have to decide if a labor shortage hiring strategy is right for your situation. While hiring candidates quickly is important, it’s also essential to make smart hiring decisions to ensure your new hires stay with your company long-term, easing your short-staffing situation.

How to manage your team effectively when you’re short-staffed

The following strategies for handling the experience can improve the outcomes of staffing shortages.

1. Communicate clearly

Clear, transparent communication about your staffing shortage, such as how you plan to resolve it and any changes in policies and procedures during that time, may ease employee concerns and encourage productivity.

2. Focus on morale

Boosting employee morale can help offset the effects of not having enough employees on staff. Valuing the employees you have on your team encourages them to stay with your company through difficult times and potentially reduce turnover.

Try increasing the amount of recognition you give your employees to raise morale. Formal employee recognition programs offer a structured way to encourage more feedback and recognition for your team.

3. Improve the job perks

By providing employees with additional job perks, you can show you appreciate their hard work. It may also be an incentive for them to stay with the company.

The types of perks you offer depend on your budget. If money is limited, you might choose perks such as no meetings on certain days, a pet-friendly work environment, flexible working hours or the opportunity to work from home. If you have a sizable budget for extra perks, consider offering bonuses, wellness stipends, catered meals or group outings to local events.

4. Listen to feedback from your team

You likely have some idea of how the staffing shortage is affecting your employees, and asking for their feedback helps you better understand the impact. This insight can help you determine how to help your team and produce more positive outcomes for them.

Consider scheduling one-on-ones with your team members regularly to assess how they’re handling the workload and if there are any concerns or satisfaction issues.

You may also conduct a stay interview, in which you ask employees questions regarding job satisfaction while they’re still working at your company. This may be an effective method of understanding employee retention during staff shortages.

5. Provide the support your team needs

Your team’s feedback can provide ideas for how to better support them. Helping with the workload, being empathetic and contributing to productivity can make a positive impression on your team and ease their workload.

Support might also mean offering additional software programs, automation options or training. Look for tools and resources that better equip your team to complete their work.

6. Encourage cross-functional collaboration

Cross-functional collaboration can make work more efficient, but it can be particularly helpful during a staffing shortage. Identify how employees in different departments can cross-collaborate to ease the workload.

7. Emphasize self-care and stress management

It’s also important to encourage stress management and self-care methods during high-pressure periods. Offering self-care tips via email newsletters, encouraging employees to take breaks, adding natural light and plants to your office space and implementing noise-reduction strategies can help improve the work environment.

Another way to help employees deal with stress at work is by offering programs and perks, such as:

  • Healthy snacks in the breakroom

  • Group exercise or walks

  • Daily meditation

  • Weekly chair massages

  • Virtual book clubs for remote employees

  • Online wellness programs, such as yoga classes or counseling

Frequently asked questions about staffing shortages

What causes staffing shortages?

Staffing shortages happen for a number of reasons that can start internally or on a larger scale throughout the job market. Competitive job markets make it challenging to fill vacancies on your team. Some industries, such as healthcare and hospitality, tend to have more issues with staffing.

Your company may have difficulty keeping positions full if low morale and employee satisfaction lead to high turnover. Identifying why you’re not fully staffed can help you overcome the issues.

How can you avoid a staffing shortage?

A positive work environment may improve your retention rates and reduce the number of job vacancies you have. Positive employee experiences might also help improve attendance to prevent occasional short-staffing.

Strategic staffing also helps you anticipate job openings and create a pipeline of talent to make hiring faster when you need new team members. You can attract more applicants when you need to hire by building a positive reputation and offering a competitive compensation package.

Should you focus on hiring new employees or supporting your current staff during a labor shortage?

Both strategies help you work through the situation effectively. Hiring new employees relieves the extra stress and labor put on your current team. However, they also need to feel valued. Share your attention between both tasks and delegate duties for recruiting and employee support to help you balance the workload.

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Indeed’s Employer Resource Library helps businesses grow and manage their workforce. With over 15,000 articles in 6 languages, we offer tactical advice, how-tos and best practices to help businesses hire and retain great employees.