Small Business Job Openings Hit Record High Driving Need For Alternative Staffing Solutions

The National Federation of Independent Business (NFIB) recently reported that 49% of small business owners could not fill job openings in July 2021. Historically, the rate is 22%. 

This has impacted business activity in the summer months and forced owners to raise compensation and adopt new hiring practices, just to meet demand. Alternative Staffing Models, such as OPARASA’s goal to leverage capitalism to help people build worth in their Recovery, offer a solution to this critical economic crisis. 

Breaking Down The Current Situation

Many business owners have reported they are having a hard time competing with the federal government's supplemental unemployment benefit program, which pays $300 a week on top of state benefits. A recent survey from Morning Consult found that 1.8 million Americans have turned down jobs even though they were unemployed saying, "I receive enough unemployment benefits without having to work."

Small Business Owners Still Plan to Create More Jobs in The Next 3 Months

Despite the compensation pressures and competitive landscape for workers, 27% plan to create new jobs in the next three months to meet business obligations.

Finding qualified employees remains a problem

Labor quality remains a significant problem. 31% of owners reported few qualified applicants for their open positions and 26% reported none, a 48-year record high for the NFIB report.

Compensation and Recruiting Changes

38% percent reported raising compensation. 27% percent shared that they plan to raise compensation in the next three months. 

In the July MetLife & U.S. Chamber of Commerce Special Report on the State of the Workforce, 72% of Small Business Owners report they have changed their hiring practices to attract new talent. Of those responding to the Chamber’s poll, 21% of small business owners said they are offering a hybrid or remote work environment, while 22% said they are giving employees more flexible hours and 24% are also offering increased pay.

In addition, the NFIB’s report continued to cite that 9% cited labor costs as their top business problem and 26 % shared that labor quality continued to be a challenge, unchanged from June but remaining the top overall concern.

What are Alternative Staffing Models?

The Alternative Staffing Alliance describes the sector as “An employment strategy that combines a staffing business model with supportive services to help job seekers with obstacles to employment enter and advance in the workforce. Alternative staffing organizations (ASOs) act as intermediaries between employers and job seekers, helping employers attract and retain reliable, motivated workers and linking job seekers to competitive employment, opportunities for skills development and pathways to hire by employer customers. While ASOs vary in their organizational structures and the populations they seek to recruit and support, they have two common characteristics. All share a market-driven approach to delivering staffing services, and all are deeply rooted in their respective communities, giving them a keen understanding of local industries and the human services ecosystem and enabling them to leverage local connections and resources.”

What Makes OPARASA’s Approach Unique?

OPARASA is a social impact enterprise that purchases small to mid-sized businesses from owners looking to retire with unrealized growth potential. We then scale those businesses by staffing with and supporting people in long-term Recovery. Those employees earn a portion of ownership as part of their compensation. This leads to higher retention, higher margins for the business, and improved recovery outcomes.

Ultimately, rather than exclusively relying on employment partners, OPARASA’s approach to owning the businesses creates a direct path to success for program participants while providing a pipeline of well-trained, motivated young people to energize and staff portfolio businesses.. This reduces the impact of staffing shortages that other small businesses are experiencing.

How OPARASA’s Staffing Model Works

We begin by sourcing candidates and begin with a 60-day probationary period. They then become paid apprentices. During this time, we gradually increase their responsibilities and work with nationally-certified aftercare providers to ensure all workers are meeting their Recovery goals during their participation in our program.

Our Business Acquisition Criteria

OPARASA’s acquisition profile typically consists of:

• Businesses that require some employee technological aptitude, but low barriers to entry

• Hyperlocal / Community Focused

• Stable top line revenue and cash flow

• $1m to $10m in annual revenue, though we can be flexible for the right deal

• Owner discretionary income ranges between 10-20%

For Socially Responsible Investors

Socially responsible investing (SRI) is an investing strategy that aims to generate both social change and financial returns for an investor. OPARASA’s mission directly addresses the impact of the Opioid Epidemic:

• People in Recovery are marginalized and struggle with reintegrating into mainstream society 

• Traditional treatment programs expect them to transition to sober living within 6 to 9 months

• Those in Recovery are stigmatized and often struggle with basic life needs and adapting to modern office culture and etiquette

What We Offer Our Investors

• An Ongoing Focus on Social Impact.

• A Leadership Team dedicated to making responsible investments.

• Fair returns

If you are a business owner or are interested in learning more about our investment opportunities, please contact our CEO Stephen Deason at stephen@oparasa.com.

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Stephen Deason is founder and Chief Executive Officer of The OPARASA Group, a Social Enterprise helping people build worth in Recovery. He is the previous CEO of GRYYT, a Socially Conscious MarTech firm and has a history of applying his compassionate and effective management style to a diverse employee demographic. Stephen is also an active volunteer who sits on four nonprofit boards and the advisory boards of two startup technology and telecommunications firms.