Where Are the Workers? Asked and...Answered.

Let's visit about the Labor Shortage.  A couple of weeks ago I was at an event organized by the Greater Des Moines Partnership. It is one of the largest business groups in the nation. The breakfast was designed to outline their legislative wish list for 2022.

During the Q & A session one business person asked this: “Everywhere you look there are businesses looking for workers but they are not there.  Where have these workers…gone?”

Well, the answer is complex but let’s take a shot but I can tell you it all starts with...money.

An MIT and CNBC analysis earlier this year found that even a $15 minimum wage wouldn't be a living wage for many families. Anecdotally, businesses paying higher wages haven't struggled as much with labor shortages and understaffing.

Show me the money…is what we’re hearing.

The love, hate your job issue is real. According to an Indeed survey of about 1,000 people who "voluntarily resigned from at least two jobs since March 2020," most of them (92%) said "the pandemic made them feel life is too short to stay in a job they weren't passionate about."

Flexibility is important:  One of the industries feeling the most pain is leisure and hospitality. Even if employers in that sector increase wages, they may have trouble finding workers because those jobs have to be done in person…and there isn’t much flexibility in scheduling.

According to one survey of 10,000 knowledge workers from Future Forum, workers want flexibility in both location and schedule.

Child care is an issue. First will the children be safe and secondly child care is so expensive that many parents have done the math and it makes more sense to stay home than  pay child care costs that may be more than their mortgage payment.

Fear of illness: As the pandemic stretches on…many workers just don’t want to chance getting sick. The Bureau of Labor Statistics said that, in November, 1.2 million people didn't look for work because of the pandemic. In addition, some workers may be quitting or staying out of work because they're hesitant to get the vaccine, as more businesses put requirements in place.

Early Retirement: More workers have…also…retired early…we covered that moments ago…and now some may want to come back into the workforce…time will tell.

Immigration is also a root cause of the shortage: There are about 1.2 million adult foreign workers or work-eligible immigrants who are just not here because of the restrictions that have been imposed during the pandemic.

Job Disconnect: There is also a job disconnect between available workers and the jobs that are open. 48% of jobseekers surveyed by FlexJob said that they're frustrated with the job search, because they weren't finding the right positions — and the ones that are open pay too low.  Back to pay again.

Job burnout is another factor: Some workers are resigning because of burnout, putting added stress on employers and the remaining employees. Workers are taking on extra duties as companies struggle to fill positions, leading these workers to also feel burned out.

Technology is also to blame:  Qualified workers might be applying for roles that fit them, but hiring managers don't even know. Some are getting filtered out by hiring software. As the Wall Street Journal first reported, a Harvard Business School study found that over 10 million workers are filtered out by hiring software.

Employers also filter out workers because of preexisting biases and inequities.

Roughly 70 million workers don't have a college degree, but are known as "STARS" — Skilled Through Alternative Routes. They account for two-thirds of American workers, but many may be filtered through educational requirements…that often really don’t match the real world job requirements.

Often felons are filtered out:  And there continues to be a big divide when it comes to white workers vs. black workers…with black unemployment still high.

Entrepreneurship:  Finally…people are done working for others and want to become their own boss.   According to Bloomberg's reporting on business applications from the Census Bureau, there have been a record number of applicants in the first nine months of 2021 compared to the first nine months in previous years.

The US reached its highest number of unincorporated self-employed workers during the pandemic so far in July 2021 — also the highest number since the last big crisis to hit our country in 2008.

So, where have all the workers gone…?  Lots of possibilities.

About Insight on Business the News Hour:

The award winning Insight on Business the News Hour with Michael Libbie is the only weekday business news podcast in the Midwest. The national, regional and some local business news along with long-form business interviews can be heard Monday - Friday. You can subscribe on PlayerFM, Podbean, iTunes, Spotify, Stitcher or TuneIn Radio. And you can catch The Business News Hour Week in Review each Sunday Noon on News/Talk 1540 KXEL. The Business News Hour is a production of Insight Advertising, Marketing & Communications. You can follow us on Twitter @IoB_NewsHour.

Staying Vital in Small Town Iowa

It's a return visit from Lyle Muller of Iowa Watch - The Iowa Center for Public Affairs Journalism. Today we're talking about the 1118 incorporated and unincorporated communities in Iowa and the success/failure of business, population growth and quality of life. How some small communities are doing when it comes to all manner of business issues. We'll also talk about broadband and how some towns have been able to go it alone. It's a fascinating conversation that is not unique to Iowa.  Here is that article and here is our conversation. 

Thanks for listening! 

The award winning Insight on Business the News Hour with Michael Libbie is the only weekday business news podcast in the Midwest. The national, regional and some local business news along with long-form business interviews can be heard Monday - Friday. You can subscribe on PlayerFM, Podbean, iTunes, Spotify, Stitcher or TuneIn Radio. And you can catch The Business News Hour Week in Review each Sunday Noon on News/Talk 1540 KXEL. The Business News Hour is a production of Insight Advertising, Marketing & Communications. You can follow us on Twitter @IoB_NewsHour.

Getting Stuff is Getting Harder

There are two signs Americans are seeing almost everywhere. The first are the "Help Wanted" signs or the "We're Hiring" flags posted in the hope that somebody...anybody will show up. The second most common sign is "Out of Order". Here it is on an ice machine at a very nice property at Lake Okoboji in Iowa. The staff told me it's been out of order for a couple of weeks. "We just can't get parts", she said before she took my ice bucket into the closed restaurant (COVID Hours) for a fill up.

Getting stuff is getting harder and it's no wonder. As I write this there are 125 cargo ships at anchor off the ports of Los Angeles and Long Beach in California. Two weeks ago there were 75. Some have been there for weeks waiting to dock. But there are fewer dock workers, fewer trucks, fewer drivers.

The trucking industry says it is anywhere from 50,000 to 75,000 truck drivers short. I spoke to one industry executive who told me they are no longer able to guarantee delivery on a specific date. His company recently had to settle with a customer who shipped a trade show booth by truck only to have it show up days late. 

Retail experts are saying that if you are planning on giving gifts this holiday season you might want to purchase them now because inventory is low and there isn't a light at the end of the supply chain tunnel. It's becoming more likely that what sits under the tree this year might be a picture of the gift...rather than the real thing.

All of this has a serious impact on price. If you remember your old Econ 101 class on supply and demand you get it. High demand and low supply means higher prices for consumers.

Maybe we're starting to get it. Retail sales numbers for August were up by .8%. Economists had predicted a drop of .7%. That is a major miss on the guess and should be a bright spot for the economy but what about the future?

I'm a journalist and a marketing/advertising professional. I don't have much of an answer other than to suggest that you shouldn't over promise, or perhaps even promise, delivery of your stuff by a date certain. Be honest with your customer. Let them know upfront that supplies are tight and that you'll do your best. 

Consumers have become conditioned to "one day shipping" so it's going to be tough for them to wait but, waiting is becoming the new reality.

One other point that makes a big difference is how you and your staff handle the supply chain crisis. The cheery woman at this property with the "Out of Order" sign told me there was another ice machine at the far side of the facility but then said, "Let me have your ice bucket, I'll fill it from our restaurant machine. It will only take me a minute."  Sure, I could have walked the hall but she made the effort, was honest and it was truly appreciated. And that little gesture boosted their brand and in the end that is what I'll remember.

The Business News Headlines 16 March 2020

Hi...and thanks for clicking through.  We're trying something different as we expand Insight on Business the News Hour now on seven outlets for the podcast and each week on News/Talk 1540 KXEL in Eastern Iowa. This is a quick test of loading the news here, right on the blog for you to click and hear.  On tap today:

• The Fed action on rates did nothing to calm the markets and why;
• Toilet Paper, Water, Guns and Ammo: "We've got to be ready.";
• New directives from the White House on crowds;
• Lenders and re-finance troubles;
• Oil and Gold take a beating;
• Airlines seek billions in assistance;
• Restaurant workers are on their own;
• The Wall Street Report;
• The NFL deal is in.

To hear these stories just click on the audio link below.

IOB 16 March 2020 News

Thanks for coming by! And:

You can subscribe and get this each day on Google Play, PlayerFM, Podbean, iTunes, Spotify, Stitcher or TuneIn Radio. And you can catch The Business News Hour Week in Review each Sunday at 2pm on News/Talk 1540 KXEL. The Business News Hour is a production of Insight Advertising, Marketing & Communications. You can follow us on Twitter @IoB_NewsHour. 

The Business News Headlines 13 March 2020

Those of you who know us know that we've been the engine behind Insight on Business the News Hour for the past ten years. Born out of a lack of anybody else doing it we created this platform to report on the major business news stories of the day and share it with thousands of people worldwide.

Today, we're trying something different and posting the newscast here as well as our Radio Blog. Just to see if you're interested.  Here is what you can expect today:

• While the markets rebounded there is that "testing" thing;
• Businesses are starting to trim staff;
• Movie theaters are getting creative;
• Bidet (What??) sales are shooting up;
• Fiat Chrysler shutters a plant;
• Small businesses are being impacted;
• The Wall Street Report
• Soccer and wages;
• Plus we usually have Jeff Pitts from Cityview with "Stuff to DO". Today that changed.

Thanks for listening!

Some Hiring Help

Last week on The Business News Hour we had a story about jobs. The Labor Department says there are now 1.5 million more open jobs then there are unemployed people. To put that in context let's say there are 6 million unemployed people in the U.S. yet there are 7.5 million open jobs.

Our business is based in the Des Moines, Iowa Metro where the current unemployment rate is hovering around 2.3%. I am told, by the folks at the Greater Des Moines Partnership, there are 17,000 open jobs in the Metro. Again, just not enough people...

Everywhere you look you see "Help Wanted" signs. HyVee, a chain of over 237 grocery stores in the Midwest, went out and bought flags to plant in their parking lot to announce the obvious. Over the past two years I've watched as B'Bops, a locally owned hamburger chain, has changed their help wanted sign to promote higher wages. Two years ago the sign said $8.00 an hour. Today the sign reads $10 an hour.

Last month there was a high-powered forum where experts weighed in on the employment troubles and offered up some suggestions regarding not only recruitment but also retention.

One of the things that is missing from the discussion is something called "passive recruitment". That's where you use media to target not only your "help wanted" message but also, at the same time, polish your brand. You can use a host of mediums radio, podcasting sponsorships, podcasting, video and social media to do the same thing. 

What is cool about passive recruiting is that word spreads. You may not hit the person who is actively looking for a job but your message may be heard or seen by a family member who then says, "Hey, did you see/hear that Weasels is looking for workers. Sounds/Looks like a great place to work."

Here's a sample, click to listen.

Recruitment Audio June 2019

It's really that easy but, does it work?  I have a friend who works in this field and he has been successful for years. The key is to let people know how really great your business is and then pitch the idea of working there.

Building your brand while building your bench is simply a good stratigity. 

 

 

 

 

Don't Be Scared

We just started the fourth year of Insight on Business the News Hour. For those of you who are not familiar with the concept it is the only daily (M-F), hour long business news broadcast in the Midwest. OK, WBBM in Chicago has a business broadcast but nobody else that we could find. We're on AM-940, FM-104.5 and in HD at 103.3 HD2 out of the Des Moines Radio Group.

The format pf the broadcast is pretty simple we offer up the daily business news from the nation, region and the Greater Des Moines Metro. We do the markets and then two long-form business interviews with established businesses to startups. Each interview segment runs 12 -15 minutes.

And, nope, we don't charge these businesses to come in and tell their story. Otherwise it wouldn't be...news.

The biggest obstacle we have is not finding sponsors. It's not writing and delivering the news. The biggest obstacle is getting guests to come on the broadcast to tell their story. No kidding. We give these businesses $1,000 worth of on-air broadcast time, social media boosts and give them the photos we take in studio along with the mp3 so they can use it in their marketing effort time. You would think that business people would grab the opportunity to share their story but, sadly it's like pulling teeth.

I moan about this from time to time and this week a client of our advertising agency said, "Michael, the reason they don't want to go on the air is because they are scared."

He's right. I get it that more people fear public speaking than death but really? We're offering an opportunity and so few take it.

I'm not complaining but I am hoping some of you will read this and consider that our goal is not to make you uncomfortable but to boost your brand and build awareness of what you do. It's called positive press.

So, when we call and leave a message...call us back? We would, honestly, love to help you tell your story.

 

Snap Out of It...We Have Business to Do

Let me share with you that there are not many people who are as interested in the world of politics more than I. Not the emotional side of politics (though I am) I'm talking about what makes the political world tick and how to better market those issue messages. We have been thorough a bruising primary season and general election season and emotions have been running high. I get that however, we've got work to do, business to accomplish and consumers to satisfy.

Snap out of it...

Since the election social media has been alive with political nasty. Turn on any talk radio station from NPR to your local News/Talk outlet and it is politics 24/7.  It is hard to focus on business, sales, marketing, advertising and a host of issues that truly impact our daily business life. Hard to focus is we get caught up in the messy business of gloating, blaming and anger management.

But we must move forward because so many people are counting on it.  How do I know you are not? I get to do this daily business news broadcast, Insight on Business the News Hour, and each day we feature two long-form business interviews. That's right, we don't do politics. I've watched the numbers, since the election, on the number of people who are downloading our podcast versions of those interviews and I can share with you they are minimal.

Prior to the election we were humming along with solid numbers of listeners who may have missed the live interview during the broadcast but catch up on them in the podcast. Those numbers are way down.  Because?

Because we are not focused on business. That is troubling. It's not to say that you can't be interested in politics but come on...let's do business. Let's get back to creating opportunity for our employees and our customers.

We've got business to do... 

Can Local Retail Compete with Amazon?

The information from the report is stunning. According to data compiled by Forrester Research…Amazon.com generated about 60% of total U.S. online sales growth in 2015 far outpacing the competition.

The report found that the retail giant tallied $23 billion more in U.S. e-commerce sales in 2015 than 2014. Twenty-Three billion...dollars more in sales in just one year.  And that's not all...Forrester forecasts that U.S. e-commerce sales will grow to more than $530 billion by 2020, with more than 206 million shoppers spending money online. 

Is it any wonder that mall anchor stores and big box stores are closing so quickly. We have entered into a new economic reality and one that sends shivers down to spine of every small business retailer in the nation. Or, should it?

You see the report also offers some hope. The report goes on to say more than three-quarters of consumers (78%) say shopping on mobile devices is still hindered by things like slow download times and screen size. Your brick and mortar does not have that issue...right? And your optimized retail website allows people to access YOU with a call or email...from the home screen...right?

And, the report has several other suggestions on how to stay relevant in this new retail economy: "Retailers should offer unique merchandise and seek out new ways to monetize the business."

Now, if you want a lesson in how to offer unique how to monetize your business to a broader audience go see my friend Chrissy (photo) at Domestica located in Des Moines East Village. In my mind she does this better than just about anybody. Honest...   

 

The Friday Wrap - Insight on Business the News Hour

Each Friday we offer up the Friday Wrap a review of our long-form broadcast interviews just in case you missed one.  The Business News Hour, a product of Insight Advertising, Marketing & Communications, is the only hour-long, M-F business news broadcast in the Midwest.  If you want to listen in, live, you can catch the broadcast at 5:05PM on AM-940, FM-104.5 or in HD at FM 103.3 HD2.

Here is a review of our guests this past week. You can click on the player or on the highlighted name of our guest to listen.

Over the past several months two local shopping malls, Merle Hay Mall in Des Moines and Valley West Mall in West Des Moines have requested that bus service be removed from their property. Here from DART is Amanda Wanke. We asked about that and more.

She joins us each Monday with her list of top networking events in the Des Moines Metro and Laura Kinnard has a bunch to share...

A month ago the INS Family of companies launched their new name and brand Aureon. At the time we talked about it with Ron Keller the President/CEO of Aureon. We caught up with Ned Flynn to check on the progress.

Our Small Business Spotlight shines on Jen Childress is the founder of JenSpiration a health and fitness studio and she makes house calls.

Our guest is one of the Tero International trainers, Trish Baumhover. She shares some thoughts about how sales people can really connect with customers and close a sale that makes both the buyer and seller pleased with the transaction. And, the best news this is all trainable.

Well over 400 people were in Des Moines for the Third Annual Global Insurance Symposium. To talk about the impact of insurance on Central Iowa we have Jay Byers of the Greater Des Moines Partnership break it down for us...

With us is international designer Annie Sloan who is the head-liner for the 6th Annual Spring Junk Jubilee. She is spending several days at the Iowa State Fair Grounds teaching and sharing chalk paint secrets.

We visit with Joy and Kevin Peterson from Peterson Holistic Services that celebrated their open house at their Windsor Heights location.  Holistic services are becoming more mainstream. We ask about that and more.

Our guest is Mike Fellers a friend of the Broadcast who counts on public transportation to get from one place to another. However the recent decision by Valley West Mall has put Mike and others who may be disabled in a bind. It's always somebody else...until it's somebody you know.

Thanks for reading and listening!  Catch the broadcast Weekdays at 5:05PM