Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Labor shortage holding back e-commerce

Labor shortage holding back e-commerce

Labor shortages are holding back e-commerce, with many online shops having to stop advertising online because they cannot cope with the increased demand, according to a press release sent to the Budapest Business Journal.

Kristóf Gál, founder of Klikkmarketing, said that companies able provide good working conditions and salaries are still able to recruit skilled professionals. However, retaining workforce has become the new recruitment, he added.

Gál noted that recruitment has become more important than ever before, as most people don't realize how much work and expense it is to find a new person for a position.

According to research by GKI Digital, the turnover of online retail in Hungary was HUF 909 billion in 2020. The 45% increase compared to the previous year is largely due to the circumstances caused by the coronavirus epidemic, and the results are above average even by international standards.

"We know of several companies that have to scale back their marketing because they simply can't meet the demand. Some are even shutting down their online advertising at the weekend because by Monday they have so many orders piling up that they can't even meet their commitments in time. This is clearly due to a lack of staff in the business," Gál said.

30-40% of online shops are affected


The expert also said that companies are not recruiting well online and there is actually a shortage of good employers in the market.

"Any company that has values, a vision, can offer good pay and working conditions, and values its employees, is sure to find efficient and skilled people. In many companies, labor shortages are a symptom, but they are really just badly organized," he explained.

He estimates that 30-40% of online shops could be affected by this problem, as this year they are so buoyant that they could be doing twice as much business as they do at Christmas, even in the previously slowest months.

He also suggests that work organization needs to be thought through more strategically. It's not unusual for someone to have a very good first quarter of the year, but then see a drop in demand in the summer season. So sometimes you need 15 people, other times only 5, which has to be woven into the plans. The best way to do this is to work with non-fixed workers, possibly students.

"Labor costs go up, you have to adapt to that. The new recruitment is clearly retention, it's become much more important to keep the best people, to pay more attention to them. Another solution is to improve efficiency, because it's not inconceivable that you can do the same job with fewer people," he said.

He added that firms misjudge the time and cost of recruiting new staff. On Facebook, one may spend up to HUF 300,000 to find the right person, but most people are not willing to spend that much. And the more expensive an employee is, the more one has to spend to "hire" them.

Finally, he noted that customers also feel the effects of staff shortages, with slower customer service response times and delayed deliveries, which in the long run damage a company's reputation.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
Italy Faces Population Decline Amid Youth Emigration
Trump Accuses China of Violating Trade Agreement
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Russia Accuses Serbia of Supplying Arms to Ukraine
Gerry Adams Wins Libel Case Against BBC
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
EU Majority Demands Hungary Reverse Anti-LGBTQ+ Laws
Top Hotel Picks for 2025 Stays in Budapest Revealed
Iron Maiden Unveils 2025 Tour Setlist in Budapest
Chinese Film Week Opens in Budapest to Promote Cultural Exchange
Budapest Airport Launches Direct Flights to Shymkent
Von der Leyen Denies Urging EU Officials to Skip Budapest Pride
Alcaraz and Sinner Advance with Convincing Wins at Roland Garros
EU Ministers Lack Consensus on Sanctioning Hungary Over Rule of Law
EU Nations Urge Action Against Hungary's Pride Parade Ban
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
U.S. Considers Withdrawing Troops from Europe
Russia Deploys Motorbike Squads in Ukraine Conflict
Critics Accuse European Court of Human Rights of Overreach
Spain Proposes 100% Tax on Non-EU Holiday Home Purchases
German Intelligence Labels AfD as Far-Right Extremist
Geert Wilders Threatens Dutch Coalition Over Migration Policy
Hungary Faces Multiple Challenges Amid EU Tensions and Political Shifts
Denmark Increases Retirement Age to 70, Setting a European Precedent
Any trade deal with US must be based on respect not threats', says EU commissioner
UK Leads in Remote Work Adoption, Averaging 1.8 Days a Week
Thirteen Killed in Russian Attacks Across Ukraine
High-Profile Incidents and Political Developments Dominate Global News
Netanyahu Accuses Western Leaders of 'Emboldening Hamas'
Ukraine and Russia Conduct Largest Prisoner Exchange of the War
×