COVID-19 has shifted the power dynamics between employers and employees. Many employers are desperate for employees, but many employees will not come back unless there is more money and better working conditions.

My friend, in the construction business, has placed many ads to recruit employees, but with little luck.

He said to me: No one wants to work anymore.
My answer was: no one wants to work for the rate you are offering.

For the first time since I can remember, workers have gained the upper hand.

The change is broader than the pandemic-related signing bonuses at fast-food places. Up and down the wage scale, companies are becoming more willing to pay a little more, to train workers, to take chances on people without traditional qualifications, and to show greater flexibility in where and how people work.

I see all these changes as a good thing. At one time in my life, I worked as a janitor for minimum wage. One day, I decided that I wanted more of my life, so I went to the next thing and eventually landing on entrepreneurship.

The erosion of employer power began during the low-unemployment years leading up to the pandemic and, given demographic trends, could persist for years.

In an effort to get some employees, employers are posting “no experience necessary,” or offering sign-on bonuses.

This change of power dynamics between worker and employer partly reflects a strange moment: The economy is reopening, but many would-be workers are not ready to return to the job.

Yet in key respects, the shift builds on changes already underway in the tight labor market preceding the pandemic, when the unemployment rate was already very low.

That follows decades in which union power declined, unemployment was frequently high and employers made an art out of shifting work toward contract and gig arrangements that favored their interests over those of their employees. It would take years of change to undo those cumulative effects.

An important question for the overall economy is whether employers will be able to create conditions attractive enough to attract back in people who are not currently part of the labor force.

But wages alone aren’t enough, and firms seem to be finding it in their own best interest to seek out workers across all levels of society, to the benefit of people who have missed out on the opportunity in the last few decades.

Employees are also asking for more flexibility. For example, many workers have embraced the working from home lifestyle and are unwilling to return to the drudgery of a morning commute to go back to the office. If those conditions are not met, workers are feeling emboldened to leave and look for a more flexible employer.

Whereas at one time employees with little work experience had a hard time finding a job, now employers are rolling out the red carpet and offering on-the-job training.

Finally, if an employee can show that they have the skills to complete a task, they don’t have to show a degree from educational institutions. This is more common in the area of computer programing, where many programmers are self-taught.

Any job involves much more than a paycheck. Some good jobs don’t pay much, and some bad jobs pay a lot. Ultimately, every position is a bundle of things: a salary, yes, but also a benefits package; a work environment that may or may not be pleasant; opportunities to advance (or not); flexible hours (or not).

Whether it’s a bigger paycheck, more manageable hours, or a training opportunity offered to a person with few formal credentials, the benefits of a tight labor market and shifting leverage can take many forms.

What they have in common — no matter how long this shift toward workers lasts, or how powerful a force it turns out to be — is that it puts the employee in the position that matters most: the driver’s seat.