Right now, we’re living through one of the most extreme workforce shortages in recent history.
The “Great Resignation” drove 4.4 million Americans to quit their jobs in September alone.
Fifty percent of U.S. workers describe their company as “understaffed.”
One in three is seriously considering quitting.
And a quarter say they’re less loyal to their company now than they were before COVID-19.
It’s tricky to nail down a simple reason this is all happening. Maybe a deadly pandemic made people reevaluate what’s really important to them. Maybe some people saw the way their companies handled a crisis and were disappointed. No doubt some just got used to working from home and refuse to be forced back into the office.
The exact motivation varies from person to person, but the driving force behind all of them is known as “turnover shock.” That’s when a major life event causes someone to reevaluate their satisfaction with their lives, jobs, and relationships.
A global pandemic certainly qualifies – and it’s led a huge portion of the workforce to say, “enough is enough.”
The economic impacts of this mass exodus are massive. Unemployment and welfare expenditure is at an all-time high. Small businesses, already hit hard by the pandemic, are struggling to fill critical roles and stay afloat. And it’s a vicious cycle, too: employees who say their companies are understaffed are twice as likely to quit themselves.
The bottom line is that companies worldwide are looking for new ways to hire and retain key talent. Many have already lost some of their most valuable employees; and they’re desperate to make things work for the workforce they have left.
And any time you see a problem so severe that it makes Fortune 500 companies desperate, you’re also looking at a unicorn-level opportunity.
Startups that help alleviate the labor crisis are making a killing right now, with VCs dumping billions of dollars into “HR tech” companies. Startups in this category help companies optimize, manage, and communicate with their employees to ensure that business runs smoothly – in theory reducing churn.
Check out these HR tech startups raising money right now:
KarbonPay: A software startup that’s automating global payroll in the cloud
ProCanna: Easy, smart operations management for cannabis companies
Aspireship: A job placement platform that helps people find their fit in the tech industry
MotivateU: AI to enhance fitness professionals, not replace them
As always, make sure you do your own due diligence when assessing any startup investment opportunity. And stick around – because later this week, we’re going to share the three easiest ways to spot a market with billion-dollar potential.
Have a great Thanksgiving.
Until next time,