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American companies now face the most significant labor shortage seen since World War II. Over the last couple of years, as many as 11.4 million unfilled job openings have dragged down productivity and disproportionately hurt SMBs in the manufacturing, distribution, retail, and construction industries. Because of the increased competition for skilled workers, average compensation in these industries has risen by an average of 4.5% for salaried workers and 5.7 to 6.9% for hourly workers. However, increased pay only accounts for a small fraction of the costs companies have incurred.
Other acute costs of the labor shortage
- Loss of revenue
- Supply chain issues
- Rising operating costs
- Declining customer service
- Lack of skilled workers
- Dwindling innovation
Because the limited labor pool has made competition for new workers so fierce, hiring additional staff can only go so far in helping to ease these issues. So, what is an SMB to do? One viable strategy is finding new ways to engage and keep employees you already have. Every time an employee resigns, the average company spends six to nine months searching for replacement, suffering thousands of dollars in lost productivity. Worse, turnover causes remaining staff to reevaluate their future with the company. To avoid this, there are a few things you can focus on:
- Instill a sense of purpose in your workers by leading with big picture goals.
- Provide the work-life balance and flexibility your busy employees need.
- Ensure managers lead with empathy and support.
- Offer professional development opportunities and career planning support.
- Encourage open communication at all levels.
Cloud ERP’s role in employee retention: Three Key Considerations
Real-Time data empowers productivity
With a cloud ERP, up-to-the-minute data is available to your employees anytime, anywhere. And not just any data, the data that matters to them. Modern cloud ERP solutions often offer customizable dashboards and no code or low code reporting tools that put the power to make smart decisions quickly in business leader’s hands.
Mobility promotes flexibility
The biggest differentiator between a cloud ERP and a traditional on-premises system of yesteryear is that being productive doesn’t mean being tethered to your desk. With a modern cloud ERP, all you need to access the system is an Internet connected device. So just because your day might take you away from the office, you don’t have to put your work on hold. Many modern cloud ERPs offer mobile apps, which allow users to handle common tasks like:
- Approving purchases.
- Identifying trends.
- Lifting or implementing credit holds.
- Digging deep into data to analyze problems and make informed decisions.
Intuitive, user-friendly technology makes work easier
Other key features many cloud ERPs offer to help empower and engage your workers are integration, automation, and an intuitive interface. When the systems your business counts on every day are all tied together, your employees can finally get a 360° view of the company’s health and performance. So, they can make smarter decisions faster. Additionally, integrated business processes and smart automation workflows eliminate redundancy and any accuracy while boosting productivity.
To learn more about cloud ERP’s role in employee retention, read Acumatica’s e-book, “Beat the Labor Shortage and Build a Better Future.”
And if you’re ready to explore your options and find out if a modern ERP system like Acumatica is what you need to reach your business goals, we can help. Tell us about your biggest challenges and we’ll show you how the right technology can help make them a thing of the past!
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