30 Nov Current Insights from BizBuySell Regarding the Labor Shortage
In this article, we will take a look at facts presented by Doug Whitmire and Adam Debussy from BizBuySell during our last webinar, which centered on their quarterly Insight Report. Their Quarterly Report is filled with key statistics and information on a range of topics, including the labor shortage and hiring problems that many businesses currently face. Visit BizBuySell for more information about the findings that they recently reported for the third quarter of 2021. This website also offers an archive of past quarterly reports dating back to 2013.
The pandemic has “reshuffled the deck,” causing many to reassess their positions in corporate America. At this point in 2021 businesses are recovering, but the pandemic continues to play a role in business operations. 71% of business owners surveyed noted that they are facing higher costs than before the pandemic. Most respondents indicated that labor shortages have been having a significant impact on their businesses. There are problems both in hiring and retaining employees.
Some of the issues and problems related to the labor shortage are not immediately obvious. As it has become common knowledge that employers are having trouble filing positions and are having to increase pay in order to attract new employees, existing employees are taking note. Since existing employees realize that new hires are being hired at higher wages, they are themselves often expecting raises. In turn, operational costs are going up for many businesses.
The fact is that the business owners are still selling and for a variety of reasons. BizBuySell’s statistics also indicate that of buyers who are planning to sell, 20% cite retirement as their main reason for selling, whereas 38% cite burnout as the primary reason.
According to the data collected by BizBuySell, transactions are up 17% over the last quarter, but are still 7% below pre-pandemic levels. However, it is expected that the number of transactions will grow to be well above their pre-pandemic levels in 2022.
Buyers and sellers alike should remember that the pandemic has changed business and will continue to do so in the near future. Many buyers are those who have left corporate America, and sellers are now faced with rising operation costs as well as hiring problems and dilemmas.
In short, the business landscape continues to evolve. BizBuySell stands as a leading source for buyers, sellers, entrepreneurs and brokerage professionals who are looking for a way quickly aggregate and process critical business information.
