The United States is currently facing a labor shortage crisis. At the end of 2021, 11 million workplace positions were unfilled in the U.S. alone. You’ve probably faced the consequences of this low workforce whether you’re an employee, customer, or business owner. Lack of production, long waits and delivery times, limited goods, haphazard service, and overworked employees make for a difficult business environment for everyone involved. As a business owner, you face even greater challenges with struggling to stay open, searching desperately for employees, and worrying about risks your business faces during the 2022 labor shortage.
You’re most likely thinking a lot about your bottom line and creatively seeking ways to stay productive as a business with fewer employees. What you may not have considered is that your shortage of employees may also be creating liability risks for your business. Business Insurance Center experts are here to break down the unique liability risks your business faces during this labor shortage crisis. We’ll discuss how employee shortages impact business liability exposures in 2022 and the steps you can take to minimize these workforce concerns.
Labor Shortages Affect Liability Risks
Your shortage of employees may be creating liability risks for your business. What does that mean and what risks do businesses face in 2022 due to the labor shortage?
Your business faces a number of issues due to staff shortages:
- You are forced to schedule fewer employees for each shift, leaving existing employees spread thin, stressed out, and downright grumpy!
- Lower production, service delays, or missed deadlines due to fewer workers
- Overworked staff are less likely to be high producers
- Employees are more likely to find fault with your leadership practices, opening you up to more costly Employment Liability claims
- Lesser-skilled or unqualified employees may be hired to fill job openings
- Increased workplace accidents – underqualified workers increase the risk of employees skipping safety steps or making careless errors and resulting in liability risks
- Unhappy customers mean increased liability risks or lawsuits
Minimize Liability Risks Due to Labor Shortages
There are a few steps you can take as a business owner to attract new employees and minimize the business risks associated with staff shortages.
Tips for attracting new employees and keeping your current staff:
- Offer more pay to potential employees
- Increase your Employee Benefits package with a customized policy
- Provide incentives for existing employees
- Limit business hours so your staff is not overworked
- Schedule check-ins and reviews with employees to ensure communication and employee satisfaction
How to decrease business liability risks caused by the labor shortage:
- Ensure effective employee onboarding practices
- Provide adequate training for new employees
- Review training and safety procedures consistently
- Get Employment Practices Liability insurance to protect against employment-related claims
- Increase your Workers Comp insurance with Business Insurance Center to cover liabilities
- Add a measure of quality control to ensure your products are satisfactory
Business Insurance Center offers a variety of customized business insurance packages for a wide range of industries. All it takes to protect your business during the labor shortage crisis is a click to get a free business insurance quote! We’re here for you!