Raising wages to make jobs more attractive
The United Kingdom, the United States, Australia and Kuwait have recently increased wages in sectors with skills shortages. Governments believe that this is the first step to attracting skilled foreign professionals. In addition to the salary increase, the United Kingdom is also focusing on continuous training, especially in the transport sector) to boost the local workforce. In Kuwait, the salaries of skilled employees in the catering sector have increased from 400 Kuwaiti dinars (about 1,230 euros) to 1,000 Kuwaiti dinars per month (about 3,040 euros).
In France, the gradual lifting of Covid-related restrictions led to a 16% rise in employment in 2021. But according to Pôle Emploi, the public employment agency, 7 out of 10 recruiters still found it difficult to find suitable profiles. This is why sectors facing the most significant labor shortages chose to raise salaries. In the trade and automotive sectors, nearly half of recruiters chose to raise salaries. In the restaurant and hotel industry, 45% of employers did the same. Of all the sectors under pressure, 33% of employers opted for a raise.
The United States sees salary raises as the best option to prevent the creation of unions. Apple is the latest example as the country continues to face the "Great Resignation". At the beginning of May, Apple tried to get all its employees back to the office, but 3000 of them refused and threatened to syndicate. So Apple decided to increase salaries by 45% in July compared to 2018, even for newcomers. However, salary raise remains controversial, especially in times of inflation, due to the risk of transforming one-off inflation into an inflationary spiral, as even companies suffer from inflation.
Enhancing working conditions to attract qualified profiles
For other companies, improving working conditions seemed a better option. In the tertiary sector, for example, open spaces are giving way to more soothing and partitioned spaces, and employees are involved in the reorganization of work and the workspace. Other benefits include stress management, well-being and personal development programs. Some companies are even providing space for relaxation, micro-naps, and even massage areas.
In France, for instance, half of the IT and communication companies have improved working conditions. Nearly 80% of the administrative sector is now more flexible, allowing work-life balance. But this doesn't mean that everything has been solved. The "Time off Task", one of Amazon's latest proposals, is controversial. This tool, which is supposed to measure workers' productivity, has unfortunately increased stress levels at work and the risk of accidents. So on June 1, Amazon had to cancel this policy due to fear of unionization among its employees.
Lowering requirement thresholds to attract more talents
According to a survey by Pôle Emploi last year, 63% of French companies facing skilled labor shortages chose to lower their requirement thresholds. This means hiring candidates with lower skills and providing in-house training to help them acquire the required skills. This practice is the most widespread in the administrative (76%) and agri-food sectors (70%), followed by transport (67%), mechanics (67%) and real estate (66%).
In Quebec, child labor has increased. In fact, 50% of Quebec of children aged under 18 are of working age since there's no minimum age limit in this province. Children aged under 14 only need written permission from their parents to join the workforce. Overall, Canada is facing labor shortages in various sectors. However, children are only allowed to work in sectors that don't require specific skills, such as food, fast food and retail. Still, competition is high among Quebec children and teenagers. Add to that pressure, versatility, and accidents. It's worth noting that the number of occupational accidents for children went from 85 to 203 between 2018 and 2021. In addition, studies show that working children are more likely to drop out of school and suffer psychological distress. However, not much is done to address this issue.
Improving entry conditions and visa regulations
On June 11, Kuwait announced that 3 sites would be allocated for the construction of properties intended for expat workers. In fact, these complexes will comprise commercial spaces (cafes, restaurants, etc.) and services (such as banks). However, there's a risk that this ambitious project sections expat communities in the country. The Kuwait City plan is a response to the request of the Council of Ministers on July 20, 2020, but at that time, Kuwait had already embarked on a vast jobs nationalization program called "Kuwaitization". Indeed, 70% of the population is of foreign origin; figures that the Kuwaiti Prime Minister wants to reduce by at least 40%. At the end of May, Kuwait Airways announced laying off 1,500 expatriate employees, i.e., a quarter of its staff. A month later, the Ministry of Petroleum announced that foreign talents would not be recruited in 2020-2021.
Many foreigners in Kuwei felt stigmatized as the local media portrayed them as being transmitters of Covid. Over the past years, expatriates have been associated with many crises hitting Kuwait. As a result, more than 200,000 foreign workers have left the country since the beginning of the pandemic, and even the relaxation of visa rules doesn't seem enough to convince them to return or attract new foreign workers. In September 2020, the Public Authority for Manpower (PAM) announced its plans to facilitate the transition from a business visa to a work visa. However, Kuwaitization remains a considerable barrier.
