The Biden administration wants every large business to require Covid vaccinations for their workers. A mandatory rule could make that federal by next year. Some big companies, such as Goldman Sachs and United Airlines, aren t waiting, with vaccine requirements in place now for all workers or those who enter a company work site.
But many companies don t require their workers to get vaccinated — and there s a surprising connection to the labor shortage that makes it very difficult for many companies to find workers. At the recent Milken Institute Global Conference, I moderated a panel discussion on the evolving workplace with five business leaders in different fields. I asked each whether their companies require employees to get Covid vaccine. The main reason is that some employees would probably leave if forced to get vaccinated, and the labor shortage might make it difficult or impossible to replace them. If you require vaccination, I think we could lose 10%, 20% of the workforce, said Scott Myers, CEO of packaging firm Advanced Converting Works, during the panel discussion. It s a huge percentage. David Dill, CEO of hospital chain LifePoint Health, says he might lose 2% to 3% of his workforce if the firm required vaccines. That would be enough to cause stress at 89 regional hospitals that already struggle to find enough workers. LifePoint s hospitals are typically the only large medical facility in the regions they serve, but their employees still have other options. We re the only hospital in town in most of our communities, but we re not the only health-care provider in town, Dill said. Nurses or technicians, say, could leave the hospital to work in a doctor's office.
All CEOs on the Milken panel said they re trying to raise vaccination rates through education and persuasion efforts. In some instances, employees have to be vaccinated because local regulations or client policies require it. Officially, we do not mandate a vaccine but it sure feels like it, said Scott Hisey, CEO of Qualtek, an infrastructure firm. As each state that we work in and our customers are requiring it, we re slowly connecting the dots to a mandate. The Biden administration said in early September it would draft new rules requiring all employees at businesses with more than 100 workers to get vaccinated. That would cover about 100 million workers, including many already vaccinated and ratchet up the nation s overall vaccination rate. But the Labor Department hasn t yet issued a final rule and it may not do so until next year.
Many CEOs favor a government mandate because it would require all businesses to abide by the same rules instead of letting some lure workers with looser workplace standards. If there are broad national or state mandates, they give us cover that all health care providers are treated the same way, Dill said. I m 100% supportive of that. Since many workers have moved from office settings to remote locations, some companies don t really need to worry about employees being vaccinated unless they show up at group functions or interact with other employees, or customers. During the Covid pandemic, clothing reseller Tradesy moved to an all-remote workforce, except for a group that works at a fulfillment center.
Vaccinations aren t required for most of the staff, but there are reasons to get vaccinated anyway. We just did our first all-company off-site and we required our employees to be vaccinated to attend that, Tradesy CEO Tracy DiNunzio said. Any other off-site or group activity, they have to share proof of vaccination and go through multiple rounds of testing. Some employers think aggressive persuasion is the best approach. We do not mandate the vaccine, but educate heavily, said Lord Abbett, managing partner of New Jersey investing firm Doug Sieg. People have a lot of personal reasons as to why they may not. They re nervous about it. They re scared. They ve been through a global pandemic. I think over time we re going to get there, but it s got to come through education and it s got to be their choice. Until the government says otherwise.
Rick Newman is the author of four books, including Rebounders: How Winners Pivot from Setback to Success. Here's when the IRS can inspect my bank account information.
None It's way too easy to get a fake Covid vaccine card.