It's possible that the shortage of workers is great news for the economy


  • With poor treatment, there will be a shortage of workers
  • Business is driven by the coming quarter's earnings
  • Stakeholder capitalism according to the Business Roundtable

A labour scarcity might be great for the economy! Maybe, just maybe, businesses will realise how important employees are to their success. Contrary to many frontline employees who provide value, some CEOs accept outrageous amounts of money and ruin the value of their companies. When employees were put off during the epidemic, Executives collected enormous amounts of money. Even when several businesses filed bankruptcy protection, their avaricious CEOs continued to pocket large bonuses.

Because of the labour scarcity, businesses are vying for the services of everyone who is available. Various companies have given signing bonuses, including McDonald's. As the epidemic started, Canadian companies Loblaw and its rivals gave bonuses to front-line employees. After three months, they discontinued it in line with their rivals. When the authorities questioned them about the collaboration, they said it occurred on its own. Why, yes! As when your three-year-old was found with her hand in the cookie jar and informed you that "Cookie Monster did it,"

With poor treatment, there will be a shortage of workers.

I find Loblaw's actions disturbing. The bonus period saw a huge increase in earnings. It itself is not an issue. I support profitable companies. Yes, I oppose the government taxing businesses' earnings. Paying bonuses to employees during the epidemic shouldn't depend on business success, however. That was perfect. As we were shopping, the employees at a Loblaw store continued to provide us with wonderful service despite Loblaw's affront.

Frontline employees are the backbone of the company, therefore managers must treat them appropriately rather than as machines that produce CEO compensation. Workers get disengaged when their bosses treat them like machines. It was discovered that there was a considerable correlation between the workers' job satisfaction and the company's overall success. Employers, however, do not accept this. The good news is that certain businesses, like Cisco, Apple, Accenture, IBM, and FedEx, are breaking the stereotype and treating employees with respect, according to polls.

Business is driven by the coming quarter's earnings

Businesses manipulate figures for the next quarter because they see it as the prize. I'll say it again: I oppose corporate taxes. Even though it may only have a little impact on share buybacks, I support the Biden Build Back Better provision to tax share buybacks that the House approved and is now before the Senate. Corporations shouldn't be spending billions buying back shares while abusing employees.

Companies should provide choices for using repurchase cash at shareholder meetings. Options might include the results of giving frontline employees incentives using repurchase money. Investors should also be informed about prospective strategic investments. An other option is to halt buybacks for five years after layoffs. Bonuses for executives should also not be given out within five years after layoffs. Worker abuse must end since it increases CEO pay.

Stakeholder capitalism according to the Business Roundtable

The Business Round Table (BRT) came to the realisation that a corporation's primary goal is not to maximise shareholder value in 2019. It claimed that the 1980s' measurements were incorrect. "...those who came up with the platitudes and those who went about with greed.

Let the labour scarcity persist! It may have the power to remove CEOs from businesses that are narrow-minded, avaricious, and inept. Some supply chain disruptions will result from the shortage, but if employees are given the freedom to be creative, these problems will be resolved. Would enough businesses choose to give up the quarterly rat race and focus instead on creating strong companies for the long term?


Previous Post Next Post