Alison Schuch, owner of Fells Point Surf Company.
Courtesy: Alison Schuch
As summer approaches, Alison Schuch, owner of Fells Point Surf Co., is shedding about 10 workers at her two beachfront retail locations as a perfect storm of reasons leads to post-pandemic hiring.
A lack of affordable summer housing, insufficient availability of childcare, inflation and work-life balance in recent years have caused the applicant pool to differ from what it once was.
“It was hard to balance the expectations of the team and the needs of the business and the needs on both sides,” Schuch said, “and then also the expectations of the customers — because, you know, having to close early because we don’t have enough people.”
“Customers want what they want. Convenience has become a huge factor because you can go online and get anything you want,” said Schuch, who owns Fell’s Point Surf Co. stores. in the Fells Point area of Baltimore, Maryland and Dewey. Beach, Delaware, as well as sister store Tangerine Goods in Bethany Beach, Delaware.
With the summer hiring season in full swing, small business owners like Schuch have lingering concerns about filling roles to meet consumer demand. Job quality was the most important issue for nearly a quarter of National Federation of Independent Business, or NFIB, members surveyed in May, according to the small business advocacy organization.
The quality of work has ranged between the No. 1 and No. 2 most important topic for NFIB members in recent months. Industries where businesses are experiencing labor shortages construction, transport and manufacturing are among the most pressing, but retail and restaurant owners are also reporting problems.
In May, 44% of owners reported vacancies they could not fill, while 38% said they were looking for qualified workers, the NFIB said. While owners are worried about future business conditions and a potential recession, they are still trying to hire and raise wages to lure workers.
Brendan McCluskey said he’s experiencing a lack of talent to hire at his Baltimore construction company, Trident Builders. He says finding skilled workers is one of the biggest challenges he faces in today’s competitive environment, and the shortage is driving up wages.
“We’re on the precipice of having any real opportunities for growth and [the concern is] can I fill it?” McCluskey said. “I’m trying to get to the next level and almost like the next weight class, which would allow us to stabilize our revenue, grow, invest in people, invest in systems, frankly, make more money.”
Comprehensive immigration reform would also help close the gap, according to some industry advocates such as the National Restaurant Association. The group urged Congress to take action to strengthen visa policies and the Deferred Action for Childhood Arrivals program, reduce wait times for asylum seekers, and create the Essential Workers for Economic Advancement program. Introduced in a House bill last month, EWEA would allow workers to come to the U.S. to fill “market-driven” roles on three-year nonimmigrant visas.
“There is no silver bullet to solve the industry’s hiring problem, but even incremental changes in immigration policy would be a significant step forward,” Sean Kennedy, executive vice president of public affairs at the National Restaurant Association, said in a statement.
“The restaurant industry is growing its workforce at a faster rate than the rest of the economy,” he added. “We expect to add another 500,000 jobs by the end of the year, but with one job applicant for every two job openings, operators are scrambling to fill positions. Adding legal foreign workers to the workforce would be a win for employers in a desperate situation.” the need for employees and individuals seeking training and opportunities.”
Returning to beach stores, Schuch said she’s noticed a slight drop in consumer spending as shoppers seem to be watching spending more closely. But he hopes to continue to operate with a long-term mindset, even in the face of staffing challenges.
Keeping employees happy is the most important thing.
“We’re only as strong as our weakest link, and I want us all to be strong, and I want people to enjoy going to work,” she said. “I think people are probably the number one thing that keeps me up at night right now.