How U.S. Small Businesses Are Responding To The Labor Shortage And What MSCI Doing To Help

According to the latest data from the Bureau of Labor Statistics, there were 11.3 million jobs left unfilled in the United States in February, but only 6.3 million unemployed workers. How are small businesses staying competitive in the tight talent market? By focusing on flexibility, wages, and training.

The first quarter MetLife/U.S. Chamber of Commerce Small Business Index (SBI) found that, of firms with fewer than 500 employees:

• 37 percent are increasing work schedule flexibility;
• 31 percent are raising wages; and
• 29 percent are providing employees with more opportunities to learn and grow.

According to the survey, more than half of small businesses (56 percent) are concerned about recruiting enough new employees to fill open positions and 57 percent are concerned about employee retention. Read the full results here.

The National Federation of Independent Business announced a similar finding last week as well. According to its data, a near-record 49 percent of U.S. small-business owners said they raised worker compensation in March.

To help address the worker shortage, MSCI is partnering with Texas A&M Professor Dr. Jia Wang on a new Human Capital Management Series that will bring our members best practices and information to help tackle human capital challenges. Dr. Wang’s series is part of a larger effort by MSCI to provide leadership development programs, industry intelligence and data, and thought leadership webinars to aid industrial metals companies with employee recruitment and retention.

Read Dr. Wang’s first column here. Dr. Wang advised, “A compelling employee value proposition can serve as your company brand to attract and retain the right talent you need. So, carve out some time in your busy schedule and make human capital development your priority.”