Connect with us

Economy

Worker Shortage Might Be Excellent News For The Economy

Published

on

Staffing Shortages Find New Employees | Worker Shortage Might Be Excellent News For The Economy | featured

A worker shortage might be excellent news for the economy! Maybe, just maybe, firms will awake and see workers’ substantial contribution to their success.

Some CEOs take unconscionable sums and destroy their firm’s value, unlike many frontline workers who create value.

During the pandemic, CEOs took vast sums as they laid-off workers. Some firms sought bankruptcy protection, but that didn’t stop their greedy CEOs from snatching hefty bonuses.

We have a worker shortage and firms are scrambling to hire whoever is willing. Some firms, like McDonald’s, have paid signing bonuses.

Canada’s Loblaw and its competitors paid a bonus to frontline workers when the pandemic began. They stopped it after three months in unison with their competitors.

When the government confronted them about this collusion, they claimed it happened independently. Go figure! It’s like you caught your three-year-old with her hand in the cookie jar and she said, Mom, “Cookie Monster did it!”

RELATED: Sick American Workers with COVID Won’t Qualify For Jobless Benefits

Worker Shortage Might Be Excellent News For The Economy

Help wanted sign in farm field | Worker Shortage

Worker Shortage Inevitable With Shoddy Treatment

Loblaw’s behavior disturbs me. During the bonus period, profits soared. Per se, that’s no problem. I favor firms making profits. To be sure, I am against government taxing profits.

But paying workers the bonus during the pandemic shouldn’t hinge on profits. It was just right. Meanwhile, my wife and I shopped at a Loblaw store and workers continued their excellent service despite Loblaw’s slight.

Leaders must realize frontline workers are the firm’s foundation and treat them well, not as cogs turning out CEOs’ bonuses! When employers treat workers like machines, they disengage.

Gallup said, over several decades, they and other researchers found a strong link between employees’ workplace engagement and the company’s overall performance.

Yet employers refuse to accept this. But there is good news: surveys show some firms break the mold and treat workers with respect: Cisco, Apple, Accenture, IBM, FedEx are a few.

Next Quarter’s Earnings Drives Businesses

Companies see next quarter as the prize, so they exploit workers and fudge next quarter’s numbers. I repeat: I am against government taxing business.

However, I favor the Biden Build Back Better provision to tax share buybacks that the House passed, and it is before the Senate, even if it might have only a modest effect on share buybacks.

Companies shouldn’t be spending billions buying back shares while exploiting workers.

Firms should present to shareholder meetings options to use buyback funds. Choices might include the effects of paying bonuses to frontline workers with buyback funds.

Shareholders should hear about potential strategic investments, too. Another option is stopping buy-backs for five years after layoffs.

Executives, too, shouldn’t get bonuses within five years of layoffs. We must get rid of worker exploitation that enhances CEO bonuses.

The Business Roundtable Stakeholder Capitalism Disappeared

The Business Round Table (BRT) had a revelation in 2019 and decided maximizing shareholder value is not a corporation’s sole purpose. That metrics from the 1980s is wrong, it said.

I wrote then that the BRT “… came up with lovely platitudes about looking after stakeholders and quickly ditched it and returned to their greedy practices… ” They continued to move away from those bromides during the pandemic.

Let the worker shortage continue! It might be the force to rid firms of myopic, greedy incompetent CEOs. To be sure, the scarcity will cause disruptions in supply chains and elsewhere, but workers’ creativity, if allowed, will solve these challenges.

Here is the million-dollar question: Will enough firms decide to scrap the quarterly rat race and concentrate on building robust businesses for the long term?

Michel A. Bell is the author of six books including Business Simplified, speaker, adjunct professor of business administration at Briercrest College and Seminary, and founder and president of Managing God’s Money, a mission devoted to providing free Christian financial and biblical stewardship advice. For information, visit https://managinggodsmoney.com.

Article Source: https://EzineArticles.com/expert/Michel_A._Bell/762062

You Might Also Like:

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published.

SIGN UP FOR BNA NEWSLETTERS

Free Come and Take It Hat
President Trump Playing Cards offer

Copyright © 2022 Breaking News Alerts. This copyrighted material may not be republished without express permission. The information presented here is for general educational purposes only. MATERIAL CONNECTION DISCLOSURE: You should assume that this website has an affiliate relationship and/or another material connection to the persons or businesses mentioned in or linked to from this page and may receive commissions from purchases you make on subsequent web sites. You should not rely solely on information contained in this email to evaluate the product or service being endorsed. Always exercise due diligence before purchasing any product or service. This website contains advertisements.