Why Frontline Worker Shortages Are About Pay, According to Suzanne Lucas

In a recent LinkedIn post, Suzanne Lucas discusses the persistent challenge many businesses face in hiring frontline workers, particularly in roles often perceived as “unskilled.” Lucas, writing from her perspective as a business journalist and commentator, addresses a common lament among employers struggling to fill essential positions despite offering benefits and competitive wages.

She opens by highlighting a quote from a report detailing a business’s struggles:

“Unskilled labor is very tough to find! […] Other businesses would like to contract us (they can’t find people, so we get more work). However, we have to turn work away due to not being able to hire anyone! Yes, it’s ‘just’ a cleaning job – but we pay competitive rates, offer paid vacation, paid holidays, insurance, retirement plan, etc. – and still can’t find anyone!”

Lucas directly challenges the assertion that current pay rates are competitive enough, arguing that the definition of competition in the labor market extends beyond direct business rivals.

The True Meaning of Competitive Pay

According to Suzanne Lucas, many businesses misunderstand what constitutes truly competitive compensation. While a business owner might believe they are paying on par with other companies in their specific industry, Lucas points out that the real competition for employees comes from a broader spectrum of employers.

As Suzanne Lucas notes, “your employment competitors are different than your business competitors.” This means that a cleaning company, for instance, isn’t just competing with other cleaning companies; it’s also competing with retail stores, restaurants, and any other business that hires individuals for similar skill levels and pays competitively within that broader market.

Defining “Competitive” in Today’s Market

Lucas elaborates on the difficulty business owners face in reconciling what customers are willing to pay with what employees are willing to accept. She acknowledges the financial pressures:

Now, as a business owner myself, I know that what your customers are willing to pay may not be enough to hire people at what they are willing to work for. This is a serious issue.

Despite this acknowledged difficulty, Suzanne Lucas remains firm in her core argument. She posits that the inability to hire is fundamentally a compensation issue.

The Unwavering Link Between Pay and Hiring

Suzanne Lucas asserts that regardless of other benefits offered, the primary driver for attracting and retaining frontline workers is the wage itself. She emphasizes this point with a direct and unambiguous statement:

But if you can’t hire people, it’s your pay. It’s always your pay.

In her analysis, Lucas suggests that businesses experiencing hiring difficulties, especially for roles requiring less formal training, should re-evaluate their compensation structures. While factors like benefits, work-life balance, and company culture are important, Lucas argues that without a truly competitive salary that aligns with the broader labor market, attracting sufficient talent will remain an uphill battle. Her insights underscore the need for employers to look beyond their immediate industry peers when setting wages for frontline positions.