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
UK Drought Cuts Harvests and Raises Food-Security Fears
UFO: Pentagon Releases Video of Unidentified Object Tracked Over Middle East
Ukraine Tells Senate Republicans Its Drone War Offers a Blueprint for America
Weight-Loss Drug Boom Tests the Limits of Prescription Advertising Rules
Senate Scrutinises AI-Driven Personalised Pricing
Spain Seeks Mainland Transfers for 1,100 Children Stranded in Ceuta
Spain and Morocco Trade Blame After 72,000 Migrants Enter Ceuta
AI Is Remaking the US Economy, From GDP Growth to iPhone Prices
Europe’s Heat and Drought Are Now Disrupting Power, Shipping and Tourism
Europe’s Drying Rivers Trigger Power Cuts, Factory Shutdowns and Wildfire Emergencies
Record-Low Danube Forces Nuclear Cuts and Emergency Power Curbs
Danube Drought Forces Hungary’s Paks Nuclear Plant Into Full Shutdown
Ceuta Death Toll Rises as Spain and Europe Clash Over Border Response
Valued at $109 Million: F-35B Fighter Jet Crashes in Southern California
Record-Low Danube Exposes Probable Mammoth Remains in Bulgaria
US Says It Has Carried Out Heavy Strikes on Iran After Attempted Attacks on Its Forces
The AI User Nightmare: Private Claude Conversations Leaked to the Internet
Over 24 Hours in the Air: Qantas Airbus Completes Record-Breaking Test Flight
Massive Wildfires Ravage Southern Europe: Fatalities in Greece and Evacuations Across France, Spain, and Turkey
Nvidia Reportedly Takes Vast Texas Data-Centre Lease to Underwrite AI Expansion
FIFA’s Private-Investment Plan for World Cup Rights Draws European Revolt
Apple Briefly Crosses Five Trillion Dollar Valuation as Investors Retreat From AI Bets
Fresh Heatwave Threatens to Rekindle France’s Historic Wildfire Crisis
Following OpenAI's Cyberattack: 'Most Companies Still Do Not Understand What Is Coming'
OpenAI Sued After ChatGPT Allegedly Discouraged Emergency Care Before Near-Fatal Embolism
Miliband Sets Climate and International Law at Centre of UK Diplomacy
Czech Central Bank Governor Rejects Early Euro Entry and Rate-Cut Pressure
Trump Readies New Tariffs as Temporary Global Levy Nears Expiry
Vivienne Westwood Casts Cicciolina, 74, in Its New Autumn Campaign
Dejavu: Germany’s Military Expansion Reshapes Europe’s Strategic Balance With France
Morgan Stanley Builds a Wall Street Lead in AI Infrastructure Finance
High Prices Push Coffee Drinkers Toward Whole Beans and Home Brewing
Trump Draws Boos and Podium Scrutiny at Spain’s World Cup Triumph
Brilliant move: Péter Magyar Moves to Nominate Chess Grandmaster Judit Polgár as Hungary’s President
Spain Defeats Argentina in Extra Time to Win Second World Cup
Current AI Seeks to Build an Open Global AI Infrastructure Outside Big Tech Control
Germany’s Economic Malaise Reopens the Sunday Shopping Debate
Proposed U.S.-Saudi Nuclear Pact Could Permit Limited Uranium Enrichment Under International Safeguards
Netherlands Declares Water Shortage Emergency After Drought Pushes Rivers to Historic Lows
Why Kentucky Fried Chicken Became KFC—and Why the False Explanations Persist
Ukrainian Drones Strike Wildberries Warehouses Deep Inside Russia
Reported CIA Mission Helped Clear the UAE’s Path to Advanced US AI Chips
Artificial Intelligence Capital Fuels Markets While Governments and Regulators Face Mounting Strategic Tests
China’s Moonshot’s Kimi K3 Narrows the Gap With Anthropic Through Scale, Openness and Lower Cost
The Ledger Will Not Trust on Faith
Trump Administration Pressures Banks to Restrict Financial Access for Undocumented Immigrants
Passenger Bound for Germany Refused to Sit Beside a Woman on a Plane — Then Slapped a Flight Attendant
Ukraine’s Leadership Rift Spills Into the Streets as Protesters Target Army Chief
Ukrainian Drone Barrage Kills Eight and Strikes Russian Logistics Network
The Ten World Cup Finals That Defined Football History
×