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26 Jul

Hiring Problems? Here’s a Solution

  • By Jill Christensen
Hiring Problems? Here’s a Solution

Businesses in all industries are struggling to attract and hire good workers.  While the reasons behind this issue are vast, a pizza chain owner in America thinks he has the solution.  Michael Lastoria’s 51 locations are fully staffed thanks to the fact that he is paying staff a proper wage.

Lastoria has opened 12 new locations this year and says he receives more than 100 applications for each job.  He credits dodging the labor shortage by leveraging an employee-centric business model, which involves paying staff $16 an hour on average, and benefits such as paid leave for activism and healthcare.

“We are living proof that the claims business owners make about the impossibility of paying people enough money to live on are false,” Lastoria says.  “Those claims were designed to protect the old corporate mindset that permits shockingly high executive pay and staff exploitation.  There isn’t a labor shortage, there is a shortage of business owners willing to pay a living wage.”

I have always contended that people primarily don’t work for money; they work because they have needs they want fulfilled, such as human connection, the ability to make a difference, collaboration, two-way communication, and recognition.  However, I think Lastoria may be on to something here, as I agree that the old corporate mindset of ‘profit over people’ still exists in many businesses today.  Additionally, inflation is rampant and wages simply are not keeping up.

Jill, What Can I Do?  All organizations should conduct an annual salary review process to ensure employees are being paid fairly relative to local market or even more than local market.  The process is outlined here.  While salary does not account for everything, it’s becoming clear that workers are flexing their muscles more than ever.  If you do not meet their needs, don’t expect them to sign on the bottom line.

Tags:employee engagementHiring ProblemsQualified Workersworkers
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