Kimberly Wilson
Jul 26, 20221 min
It’s the perfect storm!
Demand for goods and services has gone up, but supply hasn’t. The reasons are not enough workers, global wars, political unrest, concern about the virus, and more. So, inflation has set in.
Looking at the fact that there are not enough workers (and this is not just in the US) there is a lack of people. Baby Boomers are retiring. Birth rates have been down for years, which definitely affects supply and this will continue for some time.
https://www.cbc.ca/news/canada/ottawa/ottawa-workers-covid-retirements-1.6529325
Things like the viruses adaptation and concern for health. Companies require time in the office coupled with higher gas prices and high car prices. Safety. Being able to afford necessities or just being able to obtain them (i.e. baby formula, feminine products, bikes, and yes even sriracha).
And employees want higher salaries to afford their needs. As companies pay more the price of goods and services goes up to be able to sustain the business expenses, meaning the additional money gets diluted.
Engagement is also down and companies are trying to figure out the new normal.
Gen-Y and Gen-Z and some of Gen-X are wanting more purposeful work.
https://hbr.org/2022/07/3-ways-companies-make-work-purposeful
Starting a small business is easier than it has ever been and employees are considering their options, as they pick up the slack for understaffed companies. Especially those who are worried about hiring and not focused on the team running the show.
https://www.fastcompany.com/90771927/how-to-engage-your-employees-who-chose-not-to-quit