Key Points

• Labor Shortage: A common recruitment challenge faced by enterprises, which affects business development.
• Business Outsourcing: Transferring some business functions to external suppliers to reduce costs and improve efficiency.
• Business Transformation: Enterprises adjust their business models to adapt to market changes and technological advancements.
• Employer Branding: The reputation and image of an enterprise in the talent market, which affects recruitment effectiveness.

Abstract

This issue of Business in Crisis focuses on the topic of labor shortage, which troubles many business operators. The guests pointed out that labor shortage has become a widespread phenomenon, and enterprises need to respond actively. Solutions include optimizing business processes, improving efficiency, and even transforming to business models with lower labor requirements. At the same time, enterprises should attach importance to employer branding to enhance their recruitment competitiveness. In addition, business outsourcing is also an effective way to alleviate labor shortage. Facing the increasingly fierce competition in the talent market, enterprises need to change their thinking and actively seek breakthroughs.

Insights

Facing the changing population structure and new trends in the labor market, enterprises need to re - evaluate their talent strategies. Relying solely on traditional recruitment methods is no longer sufficient to meet the demand. Enterprises need to be more flexible and innovative. By optimizing internal processes and adjusting business structures, enterprises can reduce their dependence on labor and maintain their advantages in the fierce market competition.

Views

01 "Business Transformation is the Key"

Facing the challenge of labor shortage, enterprises should consider transforming to business models with lower labor requirements, such as automation or platformization.

02 "Enhancing Employer Branding is a Long - term Solution"

Building a positive employer brand to enhance the enterprise's attractiveness in the talent market is the fundamental way to solve the problem of labor shortage.

03 "Business Outsourcing is an Effective Supplement"

By outsourcing some business to professional service providers, enterprises can relieve the pressure of labor shortage and improve operational efficiency at the same time.

In - depth Analysis

Labor Shortage: A Silent Pain for Business Operators

Labor shortage has become the Sword of Damocles hanging over the heads of many business operators. Today, with the gradual disappearance of the demographic dividend and profound changes in the labor structure, the phenomena of difficult recruitment and high labor costs for enterprises are becoming more and more common. In this issue of the Business in Crisis program, two guests delved into this topic and provided practical suggestions for business operators to deal with labor shortage.

Underlying Causes of Labor Shortage

Labor shortage is not caused by a single factor but is the result of the superposition of multiple factors.

1. Population Structure Change: The acceleration of population aging in China has led to a continuous decrease in the labor supply.
2. Structural Contradiction in Labor Demand: On the one hand, traditional manufacturing and other industries are facing difficulties in recruitment; on the other hand, emerging industries have an increasing demand for high - quality talents.
3. Value Transformation of New - Generation Job Seekers: New - generation job seekers pay more attention to the balance between work and life and have higher requirements for salary and benefits, career development, corporate culture, etc.
4. Impact of the Pandemic: The pandemic has led to a shrinking demand for labor in some industries, exacerbating the supply - demand contradiction in the labor market.

How Can Enterprises Deal with Labor Shortage?

Facing the challenge of labor shortage, enterprises should not sit idle but actively seek countermeasures.

1. Optimize Business Processes and Improve Efficiency Enterprises should optimize business processes and improve production efficiency through means such as lean production, automation, and digitization to reduce their dependence on labor. For example, introducing automated production lines to reduce manual operations; using big - data analysis to optimize resource allocation; implementing paperless office to improve office efficiency.
2. Transform to Business Models with Lower Labor Requirements Enterprises can consider transforming to business models with lower labor requirements, such as platformization, knowledge payment, and SaaS services. These business models are characterized by light assets and easy expansion, which can effectively reduce the enterprise's dependence on labor.
3. Business Outsourcing Outsourcing some business to professional service providers is an effective way to alleviate labor shortage. Enterprises can outsource non - core business, repetitive work, and seasonal demand to professional service providers, thereby reducing operating costs and improving operating efficiency.
4. Enhance Employer Branding to Attract Talents Enterprises should attach importance to employer branding to enhance their attractiveness in the talent market. Employer branding refers to the reputation and image of an enterprise in the talent market, including salary and benefits, career development, corporate culture, etc. Enterprises can enhance their employer brand in the following ways:
   • Provide competitive salary and benefits.
   • Provide good career development opportunities.
   • Create a positive corporate culture.
   • Strengthen corporate social responsibility.
   • Use social media for publicity.
5. Adjust Recruitment Strategies Facing the increasingly fierce market competition, enterprises need to adjust their recruitment strategies to be more flexible and innovative. For example, carry out campus recruitment, online recruitment, and head - hunting recruitment; use social media for recruitment; establish cooperative relationships with universities and vocational colleges; provide internship opportunities to attract outstanding talents.
6. Strengthen Employee Training to Improve Employee Quality Enterprises should strengthen employee training to improve employee quality, thereby improving production efficiency and reducing the demand for labor. Enterprises can carry out pre - job training, skills training, management training, etc.; encourage employees to participate in external training; establish an internal training system.
7. Improve the Working Environment to Increase Employee Satisfaction Enterprises should improve the working environment to increase employee satisfaction, thereby reducing employee turnover and stabilizing the labor force. Enterprises can improve the office environment, provide comfortable rest areas, organize employee activities, and provide psychological counseling services.

Conclusion and Outlook

Labor shortage is a common challenge faced by enterprises at present and will remain the norm for some time in the future. Enterprises should respond actively, change their thinking, and take multiple measures to resolve the crisis and achieve sustainable development. In the future, with the continuous development of technologies such as artificial intelligence and big data, the demand for labor in enterprises will further decrease. Enterprises should closely follow the technological development trends and actively embrace new technologies to maintain their advantages in the fierce market competition.