Managing Your Team During a Labor Shortage

"What is the average expected pay increase in 2023?"

C. 4.6%

Most employers find themselves in a tough position with concerns about inflation and the cost of living nationwide. While a sales staffing agency can help combat turnover, it’s still preferable to retain employees to the best of your abilities. RPO can then be used to scale your business.

But even with a planned bump in salaries of 4.6% - the most since 2007, according to a new Willis Tower Watson (WTW) survey of over 1,500 U.S. companies - many leaders are still worried about engaging their employees and preventing unnecessary turnover.

Will the salary bump be enough to keep your team happy and motivated?

The disconnect between employers and employees still exists, despite the many strides made during the Covid years. Clearly, companies are not able to commit to 10% pay raises year over year, so let’s examine some other strategies to level the playing field.  

Labor Shortage


Undoubtedly the best approach during a labor shortage is managing retention, something easier said than done when the demand for skilled people is high, and the temptation to accept other offers is great. But all is not lost.

Many people who jumped ship simply for the increase are learning the tough lesson that the grass is not always greener. And with an uncertain economy, being the “new guy” may also mean being the first to be let go if companies implement a reduction in workforce.  

Is Money the Only Answer?

To retain talent, organizations need a multi-faceted approach to keep their employees. Money is a good motivator but typically not sustainable, and if there are other issues troubling employees, it’s only a matter of time before they triumph over the pay increase.  

Leaders who are engaged with their workforce clearly see other opportunities to enhance the employee experience. And while a more targeted approach to retain specific groups of employees may still be required, such as bonuses or spot awards/recognition benefits, most of your organization may well be motivated by other factors.  


Flexibility in the workplace has risen to the top for many people. Whether it’s “work from home” options or a less rigid schedule, it has now become important to more than 67% of employees.

Looming on the horizon may also be the advent of a 4-day work week, something that will ultimately be very attractive to a significant part of the employee population as we grapple with work/life balance.

Getting in front of these options will have a profound impact on retaining your team.  


Likewise, companies continue to wrap their arms around organizational culture. According to the society SHRM, understanding and developing organizational culture is based on a widely held set of beliefs supported by strategy and structure.

These values are not focused on individuals but rather on organizational goals. Leaders must live this culture every day and communicate their values consistently.  

Why Employee Engagement Matters

It’s widely understood that the employee experience impacts performance and retention. Everyone can provide a positive work environment regardless of company size, never taking your people for granted. Respect should be at the forefront of all your actions.  

Conversely, an ineffective culture can bring down the organization and its leadership. Disengaged employees, high turnover, and poor customer relations are all examples of how the wrong culture can negatively impact the bottom line.  

Considering how much the working world has changed, employees are demanding much more from employers. There’s never been a more critical time for companies to redefine their attraction and retention motivators while building a value proposition that leads an employee down the path of a fulfilling experience.

Looking for a Sales Staffing Agency?

At ACA Talent, we’re committed to Bridging the Gap between People and Opportunity. Whether you’re looking for talent or you’re looking for a career change, please don’t hesitate to contact us.

December 12, 2022

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