employment – C-VILLE Weekly

For nearly a year, a “now hiring” sign hung at the entrance to Baggby’s on the Downtown Mall. With the arrival of the coronavirus vaccine, owners Jon and Erin LaPanta hoped that applicants would start rolling in—but none came.

“Now that business is coming back, we’ve had to turn business away,” says Jon LaPanta, who has operated the sandwich shop with his wife entirely on their own throughout the pandemic. “We’ve had 15- to 20-minute waits…and I’ve had to turn down catering, because I just don’t have the staff.”

Across the country, many businesses, particularly in the service industry, are also struggling to find workers. Though around 10 million Americans are currently unemployed, massive numbers of jobs at restaurants and retail stores remain unfilled, sparking debate over the impact of expanded unemployment benefits.

Thanks to the American Rescue Plan, qualifying workers can receive $300 per week on top of state unemployment insurance through September 6, adding up to $600 per week—or nearly $16 an hour. In Virginia, the minimum wage for restaurant workers is $2.13 an hour before tips.

At his array of local eateries, restaurateur Will Richey says it’s been “astonishingly hard” to bring in new employees as the economy has opened back up.

“Just nobody was looking for work [and] replying to the ads at all,” says Richey, who manages The Bebedero, Brasserie Saison, Revolutionary Soup, and other Charlottesville restaurants. “I’ve heard rumors that it’s just people sitting and still collecting unemployment, but I don’t know what it is. It almost seems like there aren’t people to take the jobs.”

Some business owners blame this staffing crisis on the extra unemployment benefits.

“We have employees who refuse to go back to work because they are getting more money collecting unemployment, but I don’t think they realize some of those jobs are going to disappear,” says Rebecca Haydock, director of the Central Virginia Small Business Development Center. “We have seen businesses that have had to close their doors because employees won’t come back to work.”

But according to University of Virginia economist Leora Friedberg, “there are many factors” contributing to the current situation. Friedberg points to the range of health risks service workers must consider before taking on a job. “Some of it is related to government payments, but that part of it is largely going to be temporary,” she says.

Friedberg also says childcare is a big factor keeping people from returning to work. Though schools in Charlottesville and Albemarle County currently offer in-person learning, students still learn from home at least once a week. And next month, schools will be closing again for summer break.

To bring back employees, businesses must guarantee safe working conditions and offer incentives that make it worth working there, including a living wage, flexible schedule, and competitive benefits, explains Friedberg.

“Wages are going to go up, and that means prices will have to go up also. The restaurants and stores…can’t just take the money out of pocket,” she says. “Ultimately consumers, who to some extent do have extra cash right now, are going to end up paying for all of that.”

In a Monday press conference, President Biden pushed back on the narrative that unemployment benefits were keeping people from working. “My expectation is that as the economy comes back, these companies will provide fair wages and safe work environments, and if they do, they’ll find plenty of workers,” said Biden. “We’re not going to turn our backs on our fellow Americans.”

Some area businesses have tried attracting employees with increased wages. Bodo’s co-owner Scott Smith says the restaurant had trouble finding workers this year. The bagel chain raised its starting salary to $13 an hour, and by keeping its dining room closed, Bodo’s has aimed to keep staff safe from infectious customers, says Smith. (Since the pandemic started, two Bodo’s employees have tested positive for COVID, but Smith says they did not catch the virus while at work.)

“The applicant pool is getting a little bit better now…especially as vaccines are kind of penetrating,” he says. “But boy in January and February, it was just really hard to find people.”

To attract applicants for his latest venture, the steakhouse South and Central, Richey realized he would have to sweeten the deal. Last month, he offered a signing bonus—those who kept the job for three months would receive an extra $500. But that only brought in a few more applications.

Through social media, Richey was able to find a demographic willing to take the job: high schoolers. This week, South and Central will open at Dairy Market with a “very large team of teenagers,” he says.

Across his restaurants, Richey says he has also upped the pay to encourage people to apply and stay on the team. A lot more positions are making at least $15 per hour, plus tips.

“We’re not [at $15] across the board, and still rely very heavily on the tip situation,” Richey says. “A 16-year-old coming on to take a job with us, we may start them at $10 or $12 an hour…but they’re getting closer to $14 or $15 an hour with tips.”

“The best thing that businesses can do is to create support and safety for people,” says Smith.

Inside job: Charlottesville’s rosy employment outlook

2020 will be a prosperous time for area job-seekers, says Juandiego Wade, coordinator of Albemarle County’s Career Center, thanks to a low 2.5 percent unemployment rate propelled by strong local business growth. “If you’re looking for a job and you have skills, you have buying power right now.”

But where to start? A job search can be a bewildering exercise—whether looking for a first job, a better job, or employment to make ends meet. Luckily, knowledgeable counselors in career resource centers abound in both the city and county, and they’re ready to help. “I might see someone here that just got out of prison after 12 years, or I might see a nurse who is completely stressed out from her job and needs a career change,” says Wade. “I encourage everyone to think about their transferable skills, and to learn to decode fancy job titles into what that job truly entails. People are often surprised by the range of options they have.”

The Career Center, Charlottesville’s Downtown Job Center, and Virginia Career Works all have dedicated staff who can help job seekers create and update resumes, draft cover letters, and participate in mock interviews. Wade walks candidates through several online search engines such as Monticello Avenue and Indeed to jumpstart the process, and advises them on how to self-promote. “You’ve got to develop good social skills and eye contact, and you should assess how your social media presence reflects on you, because employers will look at that.”

Local career counselors predict there will be plenty of opportunities for prospective employees, many at increased wage rates. “We are seeing a strong demand for health care workers, particularly certified nursing assistants, patient care assistants, and other critical positions,” says Tom Gillette, Virginia Career Works center manager, “as well as many openings in hotels, restaurants, and the catering business.” Prior expertise can come in handy as well. “Commercial drivers are in high demand, as are workers in skilled trades— electricians, pipe-fitters, HVAC technicians, and welders,” he says.

UVA, the area’s largest employer, increased its base hourly wage for all full-time and contract employees to $15 per hour in 2019, generating an uptick in pay rates county-wide as other employers vie for workers. Free or reduced-cost training courses such as Fast Forward at PVCC, Goodwill youth and adult programs, Job Corps, and the city’s Growing Opportunities program can set job seekers on a path to earn even higher wages.

“Over the last five years we’ve trained over 200 people into high-demand, mid-level jobs that pay a self-sufficient wage,” says Holli Lee, chief of workforce development strategies in Charlottesville’s Office of Economic Development. “Our flagship program is GO Driver, where we partner with Charlottesville Area Transit to train people to become bus drivers. We incorporate workplace readiness training into these programs as well, to teach soft skills like showing up to work on time and dealing with conflicts in a professional situation.”

The OED pushes available job notices out to anyone who has registered at the Job Center by posting on social media sites such as Facebook, and by handing out fliers in local neighborhoods. Lee says job fairs are a great way to see a lot of opportunities at once.

“We recently held a targeted hiring event for Aramark, who will be staffing six new restaurants in 5th Street Station over the next few months,” she says. “We had 100 people come through and fill out applications and do interviews, and 32 people were offered employment on the spot at wages starting at $11.40 per hour.”

In this job-rich environment, employers must up their game to compete. “We are inundated with companies offering retail and food service jobs right now and they just can’t find enough people,” says Lee. “I tell them, if you’re trying to pay someone only $9 per hour in this environment, good luck to you.” Lee notes that Tiger Fuel recently increased wages and added to their benefits package to try to stay competitive.

“My advice to employers is—adjust your old-school approach to getting new people,” says Gillette. “Be friendly (and maybe a little aggressive) in talking to potential candidates. And, once you have them, do everything you can to help them survive and succeed. For dissatisfied employees, there are plenty of other options.”

Senior-level employees are in demand as well, and networking is the key to finding those positions. Elizabeth Cromwell, CEO of Charlottesville’s Chamber of Commerce, says she’s noticed “a lot of fairly senior-level positions such as CFO and COO opening up lately, perhaps as more people are retiring or moving on into consulting gigs or more flexible options.” The Chamber enables connections through its website jobs board and social media. “Many sole proprietorships or small companies are able to leverage the networking opportunities at the Chamber to reach a larger audience.”

Carolyn Kalantari and Heather Newton, who coordinate UVA’s Dual Career program for accompanying partners of UVA new hires, recently launched Embark, a community resource that showcases highly skilled jobs and job-related events in Charlottesville. “It’s a shared platform that everybody can access, particularly those highly educated, mid-career professionals that local businesses are trying to find,” says Kalantari.

Newton notes that smaller firms, like startups moving to the next phase, are often growing quickly and need managers before they know it, and points to Embark’s collaboration with Suntribe Solar as a recent example. “We have a newsletter and Twitter feed on our website, and job boards with postings and information for both employees and employers,” says Newton. The pair encourage job seekers to think of networking in the broadest sense, where neighbors, friends, or fellow parents can provide informal connections.

Charlottesville’s OED also coordinates GO Connect, a modern networking conduit that organizes speakers and meet-ups for professionals in casual settings. “Even if you’re not looking right now, you should still be putting yourself out there,” says Lee. “The person you met a month ago might have some job leads for you.” Lee’s advice for both employers and employees: “Don’t be your own island—reach out and find what’s out there and how we can work together.”