Top 10 Hiring Strategies For Overcoming The Labor Shortage

The current labor shortage has become a significant challenge for businesses as they find it increasingly difficult to fill open positions due to factors such as an aging workforce, lower birth rates, and changes in how people work. There is increased competition among companies to attract and retain top talent.

In this highly competitive hiring market, businesses must have effective hiring strategies to help them overcome labor shortages and attract the best candidates. A well-planned hiring strategy can assist businesses in not only finding the right people for open positions but also developing a strong employer brand, increasing employee retention, and improving overall business success.

Today’s post presents the top ten hiring strategies to combat the labor shortage. It covers all the essential strategies to help businesses find and retain the best talent. Let’s find out these strategies you can implement to stay ahead of the competition.

10 Strategies to Combat Labor Shortage

Here’s a list of all the effective strategies that help you find and retain the best talent:

1. Develop a Strong Employer Brand

Creating a strong employer brand is an important strategy for overcoming workforce shortages. Businesses must identify their unique selling points to build a strong employer brand. What distinguishes the company from others? What are its guiding principles? These messages should be delivered consistently across all channels, including the company’s website, social media, job descriptions, and recruitment materials.

Promote company culture through employee testimonials, office images, and social activities, as it can help candidates understand the company’s culture. A pleasant and inclusive business culture can significantly impact a potential candidate’s decision to join the company.

A good candidate experience is also essential from the initial job posting to the interview and onboarding. It can boost your company’s reputation and get candidates to refer you.

2. Leverage Technology

Technology usage can also solve the labor problem by helping firms acquire more people, streamline processes, and improve candidate experience. Here’s how technology helps with the hiring process:

– Recruitment software automates and streamlines the hiring process. They can manage job ads, applications, and resumes.

– Social media can reach more candidates. Businesses may recruit better prospects by posting job openings and contacting candidates on these networks.

– Video interviews are increasingly becoming more popular, especially among remote job applicants. Video interviews are faster and easier for candidates and can save time and money.

– Online assessments enable companies swiftly and objectively assess individuals’ abilities and certifications. They may screen candidates before interviewing them, saving time and money.

– Remote work has made virtual onboarding more vital. Video conferencing and online technologies help welcome and prepare new hires.

3. Make Application Easier 

People want to avoid the hassle of applying for jobs with complex processes and requirements. Employ a simplified procedure since completing and inquiring about the most relevant information takes less time. Let applicants upload their resumes as part of the application process rather than requiring them to list their employment history on the application itself to simplify matters for everyone.

4. Tap into Previous Connections 

Skim through the record of your previous applications. If you examine previous applications, you may identify a candidate who is a good fit for a job opportunity, even if they were not a good fit for the position previously. When there is a workforce shortage, reaching out to former employees is also beneficial. Call former employees who performed well and left on good terms to determine if they are interested in returning.

Read also: Dealing With Labor Shortage In Finance: Offshore Staff Augmentation Vs. Transformational Outsourcing

5. Expand the Talent Pool

Expanding the talent pool is another crucial labor shortage solution. Businesses should consider non-traditional aspects due to a limited candidate pool. You can increase the talent pool by:

– Offering remote work as it attracts candidates from around the world

– Fostering an inclusive culture and actively hiring underrepresented groups

– Leveraging employee referrals since they can yield high-quality, culture-fit candidates

– Organizing job fairs, industry events, and trade shows to find people who may not have applied

– Considering retirees and part-time workers as they can also cover workforce shortfalls

6. Referral Programs

Referral programs encourage employees to refer friends, family, and previous coworkers to open positions. This can assist companies in attracting high-quality, culture-fit personnel. They speed up hiring and can boost staff retention. Referral schemes can also reduce recruitment costs. For a successful referral program, you should consider the following:

– Incentives – Bonuses and awards might motivate employees to refer

– Communication – Clear communication can help employees understand how to join

– Tracking – Monitoring success can help businesses improve and adjust

– Follow-up – Keeping the candidates informed can boost their experience and hire success

7. Offer Competitive Compensation and Benefits

Competitive pay attracts top professionals. You should research your competitors’ salaries and perks. This helps ensure a competitive package that attracts top employees. Other hiring strategies include:

– Transparency – Disclose salary and benefits to assist candidates in comprehending the package’s value and boost hiring success.

– Non-Monetary Benefits – To boost retention, offer perks, including flexible work schedules, professional development, and wellness programs.

– Assess Performance – Analyze employee performance and adjust remuneration and benefits to reward top performers and retain them.

8. Improve the Hiring Process

Firms can swiftly find and employ top talent with a good hiring procedure. You can improve the hiring process by following these tips:

– Specify job requirements to avoid confusion

– Simplify the application process through clear instructions

– Leverage technology to enhance hiring processes

– Clearly define the brand in job postings

– Create a favorable candidate experience through feedback

– Assess and improve the process regularly

9. Maintain Diversity and Inclusion

Diverse and inclusive workplaces attract more applicants and retain more staff. Businesses seeking diversity and inclusion should consider the below strategies:

– Prioritize diversity when hiring, set diversity targets, target underrepresented groups, and use blind hiring techniques.

– Foster inclusion through training, cultural celebrations, and open communication.

– Assess and address bias through diversity audits and train managers on unconscious prejudice.

10. Monitor and Analyze Hiring Metrics

Tracking key indicators helps firms improve their hiring process, make data-driven decisions, and evaluate recruitment methods. Businesses should track and analyze the below hiring metrics:

– Time to Fill: Help you find hiring bottlenecks and cut hiring time

– Cost per Hire: Help you cut hiring costs and boost efficiency

– Quality of Hire: Help you assess recruit performance and retention

– Candidate Experience: Help you attract top talent

– Source of Hire: Help you determine which channels attract top talent

– Diversity Metrics: Help you assess diversity and inclusion progress


The labor shortage poses a substantial obstacle for many firms. You can, however, overcome this obstacle and attract talent by using successful hiring strategies. Leveraging technology, expanding the talent pool, implementing referral programs, offering competitive compensation and benefits, improving the hiring process, maintaining diversity and inclusion, and monitoring and analyzing hiring metrics are all effective strategies that may help you hire staff for your firm.

Arthur Lawrence can also assist you if you need help overcoming the labor shortage. Our talent services, such as Recruiter on Demand, recruitment process outsourcing, and Specialized Staffing, assist you in attracting and retaining outstanding personnel. Our experts can assist you in developing a hiring plan that is tailored to your specific needs and helps you overcome the labor shortage. Get in touch to learn how we can assist you in reaching your hiring goals.