Businesses across a wide swath of industries in Dallas, TX have been having trouble finding qualified employees for some time now. The “sansdemic” is still in full swing. (This term was coined by EMSI, a leading provider of labor market data.) Meaning “without people” or “without enough people,” it’s easy to think of the sansdemic as something very temporary, perhaps closely related to the COVID-19 pandemic. And while COVID is a part of this puzzle, it doesn’t explain the full picture.
So, what exactly is the sansdemic, and why is it happening? What is the impact on companies in Dallas, TX and around the state? Let’s take a closer look at this phenomenon, why it’s happening, and what can be done.
What is the Sansdemic?
The sansdemic is a growing demographic drought, and it’s projected to get worse before it gets better. In fact, experts predict it will worsen throughout the century, with the potential to impact nearly every business, college, and region.
What exactly is the sansdemic? It’s a lack of employees. To put it simply, there are more open jobs than there are people qualified – or willing – to fill them. Companies and businesses in Dallas are struggling to find people to fill open roles, either because those people simply aren’t there or because they aren’t willing to take the job.
The question is, why is the sansdemic happening?
Why is it Happening?
There is no one single cause of the Dallas sansdemic. It turns out that it’s caused by a perfect storm of factors, all converging at the same time to cause a serious people shortage. Those factors include:
- The enormous Baby Boomer population reaching retirement age
- A declining birth rate
- A shrinking labor participation rate – less people involved in the workforce overall
- The COVID-19 pandemic
Let’s take a closer look at each of these contributing factors.
Baby Boomer Retirement
In a normal year, about 2 million Baby Boomers retire. In 2020, that number jumped to more than three million. A big reason for that was the pandemic – Boomers who may have been waiting to retire decided to go ahead with it in the face of health-related concerns. Plus, Boomers who went into offices because they enjoyed the structure and camaraderie of the workplace saw little reason to continue working if they weren’t going to be leaving the house any longer. And some Boomers faced a decision on whether to continue working or help their grown children juggle childcare responsibilities, with many choosing their families over work.
Declining Birth Rates
Starting around the year 1970, fertility rates began to drop. Boomers averaged fewer than two children each per one woman, despite having been born into families with an average of four children each. To put it simply, people started having less children, and that has caught up with us over the past 50 years. Now, there are just fewer people at the right age with the right skill sets to fill the open jobs that companies have.
In addition to the declining birth rate itself, there is no sign of a positive population upswing. The latest census shows the second smallest decade-long growth in America’s history. In 2020, the birth rate fell for the sixth consecutive year, according to the CDC.
Shrinking Labor Participation in Dallas, TX
The Labor Force Participation Rate (LFPR) is at an all-time low right now. That means fewer Americans than ever before are actively looking for work. And it’s not expected to improve any time soon. The LFPR is expected to decline from 61.7 percent in 2020 to 60.4 percent in 2030. Part of the reason for this is people without a college degree who still live with their parents, and aren’t making employment a priority. Another reason is the number of prime-age men (ages 25 to 54) who are absent from the labor force because of health conditions. Nearly half of this demographic takes opioid pain medication regularly, for example, which can keep them from working or from doing certain jobs.
COVID-19
The COVID-19 pandemic is not the core reason the sansdemic is happening, but it certainly didn’t help matters. COVID came around at perhaps the most unideal time – right as Baby Boomer retirement rates were rising and birth rates declined, the pandemic started and caused many people to retire early, or take off work for a time, or switch careers entirely. It’s safe to say that COVID accelerated the progress of the sansdemic, even though it wasn’t the sole cause.
Note that the pandemic affected women in the workforce disproportionally as compared to men. From February 2020 to February 2021, 2.4 million women left the labor force compared to 1.8 million men. This is because of the inequitable weight of family obligations and the particular industries that were hurt worse by the pandemic.
How Can the Talent Shortage in Dallas Be Resolved?
There’s no question that there’s a talent shortage, or what’s causing it. And it’s important to realize that these factors converge together to create massive shortfalls not just in today’s workforce, but tomorrow’s as well. So, what can companies do to combat this?
Here are some sansdemic tips for companies around Dallas, TX to help resolve the talent shortage:
Create a Better Candidate Experience
For a job seeker, every interaction with your company serves as a preview of what it’s like to work for your Dallas company. Make it a good experience, and you’ve hooked the candidate. Make it a bad one, and you’ve likely lost them. Improve your candidate experience by:
- Auditing your candidate-facing technology and messaging to ensure you’re being welcoming, friendly, and helpful – project the impression you want to make.
- Using social media to showcase why your company is a great place to be.
- Creating a consistent hiring process for both virtual and in-person hirings.
- Making it easy to apply on desktop and mobile devices.
- Offering benefits that today’s talent wants, including health insurance, paid time off, parental leave, professional development opportunities, tuition assistance and student debt help, and schedule flexibility.
Create a Better Employee Experience
Don’t forget to make your company a great place to work for the people who already work there, too. Increase employee engagement by building your company culture, increasing your emphasis on values and social responsibility, and making the workplace safer. Other affordable but effective ways to contribute to employee satisfaction include:
- Wellness perks: Consider adding quiet rooms, fitness activities, clubs, standing desks, or other wellness perks to your office.
- Flexible work arrangements: Allow employees to make their own hours, work from home, or work a hybrid in-office/work-from-home schedule.
- Family-friendly perks: Allow employees to bring their children to work when it’s necessary, and provide lactation rooms for mothers. Choose insurance plans that cover domestic partners, not just spouses.
- Volunteer time off: Provide opportunities for employees to give back to the community and volunteer for causes that are important to them.
Improve Your Retention Tactics
Turnover is costly at any time, but it can be devastating during the sansdemic. Focusing on employee retention during every step of their tenure is paramount. Overhaul your onboarding process to get employees on solid footing from day one. Offer multiple training platforms and create clear 3- to 5-year career paths. Make sure supervisors are communicating with employees regularly, and conduct both stay and exit interviews to allow employees to share why they stay, or why they choose to leave. Retention tactics like these keep people around – and that’s more important now than it ever has been.
Recruit Beyond the Traditional Demographics
We’re seeing a push for Diversity, Equity, Inclusion, and Belonging (DEIB) programs in a way that we never have before. And being more diverse with your hiring in Dallas isn’t just the right thing to do – it’s a great way to solve hiring difficulties within your company. Tips include:
- Expand your definition of diversity. It’s not just about race, gender, ethnicity, nationality, and sexual orientation. It’s also about people with disabilities or those leaving incarceration or rehabilitation.
- Look for transferrable skills. No single candidate has every skill you’re looking for. Consider transferrable skills to broaden your talent pool. Remember to include military veterans, too, who have “soft” skills like leadership ability, loyalty, and a willingness to learn.
Find Great Talent With PrideStaff North Dallas
Another way for your company to beat the talent shortage that is plaguing so many industries? Work with a professional staffing and recruiting firm like PrideStaff North Dallas. We’re the strategic staffing agency partner you can rely on to build a comprehensive workforce plan to overcome the demographic drought.
From forecasting talent requirements and shortages to improving productivity, retention, and engagement, we can transform your hiring to stay effective and successful even in the face of the sansdemic. And our job headhunters can find you employees who don’t just check off a few boxes on paper, but align with your organizational and cultural values for the long-term.
Contact PrideStaff North Dallas today to learn more about how we can help you find qualified talent and build an engaged workforce. And if you would like to learn more about the sansdemic and its effect on Dallas companies, download our whitepaper here.
