National Survey Finds Nearly 75% of U.S. Businesses Have Been Affected by the Labor Shortage

57% of professionals surveyed said their company has instated a work from home or
hybrid work option to attract or retain talent.

ISELIN, N.J. (October 20, 2022) - Provident Bank, a leading New Jersey-based financial institution, has released the results of its 2022 National Labor/Staffing Shortage Survey. The survey includes insights from 1,000 hiring managers and department heads, small business owners, recruitment and talent acquisition specialists, and compensation and/or business managers, and explores how businesses are dealing with the effects of the labor shortage.

As companies nationwide struggle to attract and retain talent, both small businesses and larger organizations reported feeling impacts from the staffing shortage; Provident’s survey found that nearly 75% of American businesses have been affected.

Turning down business and cutting back operating hours were cited among the most common ways the labor shortage has affected businesses. Professionals also noted that inability to fill crucial roles and high employee turnover rates added additional stressors to their business operations.

The most common reasons employees gave for leaving their jobs included low salary, inability to work from home, and uncompetitive benefits. Additionally, childcare issues and burnout were common themes.

More than 33% of respondents said their company had revised perks and/or benefits to retain employees and/or attract talent. The most common additions included tuition assistance, enhanced paid time off, and childcare reimbursement, while the most popular added benefits were additional paid sick and holiday leave, 401k matching, and sign-on bonuses.

“Organizations that are placing the employee experience at the center of their business strategy are benefitting from improved retention rates and the ability to attract talent during the current job market,” said Anthony Labozzetta, President and CEO, Provident Bank.

Among those surveyed, 69% of businesses have had candidates decline opportunities because of better offers. 79% of that group have attempted to combat this issue and remain competitive by raising salary offerings by up to 20%.

Additional Survey Findings:         

• 40% of survey respondents were small business owners, and of that group, 60% said their company has been impacted by staffing shortages.
• 85% of individuals employed by a business with over 101 employees reported impacts due to the labor shortages.
• The most common employee perks implemented to attract and retain employees included: wellness stipends, casual dress code, and extended maternity/paternity leave.
• The importance of hybrid and work from home options were a common theme among responses – 57% reported their company has instated a work from home and/or hybrid option to attract and/or retain talent.

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About Provident Bank

Provident Bank, a community-oriented financial institution offering “Commitment you can count on” since 1839, is the wholly owned subsidiary of Provident Financial Services, Inc. (NYSE:PFS), which reported assets of $13.72 billion as of June 30, 2022. With $10.87 billion in deposits, Provident Bank provides a comprehensive suite of financial products and services through its network of branches throughout northern and central New Jersey, as well as Bucks, Lehigh and Northampton counties in Pennsylvania and Nassau and Queens Counties in New York.  The Bank also provides fiduciary and wealth management services through its wholly owned subsidiary, Beacon Trust Company and insurance services through its wholly owned subsidiary, Provident Protection Plus. For more information about Provident Bank, visit www.provident.bank or join the conversations on Facebook (ProvidentBank) and Twitter (@ProvidentBank).