1. The Labor Market Is Frozen—And That’s a Big Deal 

The U.S. is at near full employment, with many states reporting unemployment rates below 4%. Businesses aren’t hiring or laying off, and employees aren’t quitting. This “frozen labor market” is driven by demographic shifts, including declining birth rates and limited immigration—creating a long-term labor scarcity that demands strategic workforce planning. 

2. Retention Is the New Recruitment 

With fewer workers available, retaining talent is more critical than ever. Claudia emphasized that businesses must shift focus from just hiring to keeping employees engaged and motivated. Retention strategies rooted in leadership, culture, and employee development are essential to staying competitive. 

3. Five Leadership Skills That Drive Engagement 

Claudia outlined five leadership practices proven to create high-performing workplaces: 

• Strategic Workforce Planning: Use data to anticipate labor needs and retention gaps. 

• Understanding Employee Needs: Flexibility, fair compensation, meaningful work, growth opportunities, and well-being matter most. 

• Emotional Intelligence: Leaders must develop self-awareness, empathy, and relationship management to foster trust and resilience. 

• Intentional Communication: Transparent, consistent messaging builds psychological safety and alignment. 

• Frontline Manager Development: Invest in soft skills training for supervisors—the key influencers of employee experience. 

4. Flexibility and Meaningful Work Are Top Priorities 

Employees increasingly value flexible schedules and purpose-driven roles. In manufacturing environments, technology and creative scheduling can help meet these expectations. Businesses that align work with employee values and life needs will win the talent war. 

5. Leadership Excellence Starts with Mindset 

Claudia closed with a call to action: shift your mindset to see employees as a scarce and valuable resource. Investing in leadership development, emotional intelligence, and workplace culture doesn’t require massive budgets—just intention and commitment. 

About the Author

 

Claudia St. John, SHRM-SCP, SPHR, is a keynote speaker, bestselling author and the Founder and CEO of The Workplace Advisors, a leading HR consulting, recruiting and training firm specializing in equipping businesses with the consulting support and people skills they need to grow. The Workplace Advisors is the North American Wholesale Lumber Association's endorsed HR and workplace resource. Claudia is an SHRM Certified Senior HR Professional and a Certified Professional Behavioral Analyst who empowers organizations with evidence-backed insights, so they can navigate the evolving landscape of talent acquisition, engagement and retention with confidence and foresight. Known as The Workplace Advisor, she helps organizations zoom out, shift their mindset and build businesses that lead their industry.