During periods of wage inflation, what used to be overpaid, becomes underpaid.

We haven’t seen significant wage inflation in quite a long time.

I believe we are starting to now.

If you can’t hire and believe you overpay, things may be changing.

Some businesses will need@to adapt other costs, use operational leverage, and build capacity in order to stay competitive.

Others will move to adjacent markets with higher margin.

Some will stick to previous wage levels as “market” and be under staffed.

2020 has caused a lot of shifts in consumer behavior, service expectations, inflation and shipping costs, and now wage expectations.

This shift happened much faster than normal.

Companies from major retail down to landscaping need to adapt.

If you believe you pay above market, and you can’t hire... the market moved.

Doesn’t mean you have to pay more, but you may need to rethink your labor strategy.

What can you outsource for lower costs?
What can you automate?
What can streamline?

What adjacent products or services can you sell without needed additional / local labor?

What different market can you target with higher margins?

What can you do to increased perceived quality?

Business is changing and those that stick to the way their industry was, will die

Many companies have started adapting in a major way about 5-8 years ago. I saw it happening as VC firms started investing in startups outside of traditional tech and into the traditional sectors.

These new firms forced incumbents to start adapting. Large incumbents.

The thing with technology and other similar investments, is the earlier you adapt, you accrue advantages and market share because of those advantages.

So the longer you wait, the harder it will be to catch up.

Some won’t be able to.

This is a very dynamic time for every sector of the economy.

It can be an exciting time of reinvention....

... for those willing to shed old methods, old labor structures, and old business models.