One only needs to drive around their community and notice all the “Now Hiring” signs to understand how pervasive the labor shortage became across industries.
Restaurants and personal-services businesses have modified hours and even days of operation to ensure they have enough staff to meet demand. If you’re reading this article, you may be facing the same problem.
Research illustrated just how widespread the issue was:
- The National Federation of Independent Business reported that 42% of owners had job openings they could not fill, while 91% of those hiring reported few or no qualified applicants.
- Workstream surveyed more than 5,000 hiring managers and found the top challenges included sourcing hourly workers, conducting in-person interviews, and scheduling interviews.
- Another franchise-industry study found many operators believed labor constraints were preventing significantly faster growth in their existing markets.
10 Recruiting Approaches to Help Address a Worker Shortage
Labor challenges can be driven by many factors, including changing worker expectations, childcare constraints, health concerns, and wage pressure. Here are ten approaches that may improve recruiting effectiveness.
- Use an Applicant Tracking System. Mary Thompson, COO of Neighborly Brands, described applicant-tracking systems as one of the most effective tools used across its home-services brands. An ATS can centralize job distribution, applications, and recruiting activity for franchisees.
- Use social media as a recruiting channel. Platforms such as TikTok, Instagram, Facebook, and LinkedIn can help brands reach younger and more local candidates. Different platforms attract different audiences, so recruiting teams should test which channels produce qualified applicants.
- Consider bonuses and perks. Some employers have experimented with sign-on bonuses, referral incentives, text-to-apply options, and other programs designed to reduce friction and attract candidates.
- Host safe hiring events. Brands have used parking lots, patios, and other accessible spaces to hold hiring events while making the process easier for candidates.
- Evaluate pay rates. When labor shortages directly reduce revenue, some operators may need to evaluate whether wages are competitive enough to attract and retain staff.
- Get employees involved in recruiting. Employee referrals can produce strong candidates. Consider referral bonuses or recognition when current team members introduce quality hires.
- Invest in applicants with potential. Not every strong candidate will arrive with the exact background you want. Entry-level hiring combined with effective training and development can create a larger talent pool while strengthening retention.
- Be open to flexible hourly work. Flexible scheduling can make roles more attractive to people balancing multiple jobs, school, family responsibilities, or other commitments.
- Look beyond traditional recruiting channels. Suppliers, local staffing agencies, chambers of commerce, schools, trade programs, and community organizations can all become sources of candidates.
- Always keep your eyes open for talent. Strong potential employees can appear anywhere. If you meet someone who seems like a fit, create an appropriate way to continue the conversation.
Franchisors should also be mindful of joint-employer considerations. Sharing recruiting best practices can be valuable, but employment decisions and requirements should be structured carefully.
Focusing on Internal Growth Is Key
One of the most important recommendations is to focus on the talent you already have. Companies that invest in current employees can reduce costly turnover while making recruiting easier.
That investment often takes the form of education and training that helps people build new skills and advance their careers.
