The labour shortage is hitting businesses hard – particularly those in the hospitality and healthcare sectors – with businesses having to pay well above minimum wage to secure in-demand workers. Wages in almost every industry have increased due to labour shortages but some are more severely impacted than others.
Over the past year, we’ve seen businesses increasingly offering our casual workers rates more than five per cent above the minimum wage, on average. In particular, the hospitality and healthcare sectors have increased their casual rates significantly, rising between 15-25 per cent and even beyond 30 per cent for certain roles compared to six months ago.
Typically the hardest-to-fill roles have also seen the largest increases, such as chefs, baristas, and registered nurses. The industries that have seen the weakest growth include retail and warehousing and logistics.
Raising the minimum wage will be a welcome relief for workers, but for many businesses that employ temporary and casual workers, the rate rise has already happened. So, in a market where employees have all the choices, how can businesses attract the best staff?
1. Build a great employer brand
With pandemic work-from-home, the Great Resignation and the growing #antiwork movement, people are increasingly disinclined to give up their time for employers they dislike and work they find meaningless. Casual workers have a lot of options and can pick and choose. They may also have friends looking for work: employee referrals can be a cost-effective and fast way to get more staff. Employer brand is vital here.
2. Ensure positive working conditions
Better workplace conditions and work-life balance benefit everyone, leading to happier and more productive workers, with higher retention rates. Make sure staff get breaks and have a decent “chill-out” area to do this. Team bonding exercises can be particularly important for casual staff, making them feel fully included as part of the workforce.
3. Offer flexibility
A recent study found that 64 per cent of jobseekers would settle for less money to work remotely. Another survey found that 54 per cent of recruiters have seen candidates turn down interviews and reject job offers due to a lack of flexibility and remote options. While work-from-home may not be possible for many casual positions, flexible shifts should be an option. Think out of the box with split shifts and job shares.
4. Invest in people
Even if an employee isn’t permanent, it still benefits everyone to train them properly and make them feel valued. Offer them career development opportunities: a former temp may be the perfect hire when a permanent staff member moves on. Ensure, where possible, that they have the same access to benefits as regular staff. Stress is rising for all kinds of employees, so extend health and wellness programs to all staff, part and full-time, permanents and casuals.
5. Nurture seasonal workers
Seasonal staff who’ve worked for you previously are very valuable future hires. They’re tried and tested, they know your business, and will have been through onboarding and training. Consider ways to keep in touch and encourage them to return next time you need them. Communicate with them early what jobs will be available next season, invite them to company events and training in the off-season, and ensure you’re matching or beating competitor offers.
Casual and temporary workers offer much more agility and flexibility for seasonal businesses and in volatile times. They add diversity and new energy and ideas to workforces. But in the current environment, businesses offering the best remuneration and working conditions will be those that attract the best people.
