When I talk with business leaders, particularly small to medium sized businesses, a tight labor puts one thought in their mind. Increased labor costs. Particularly, having to pay people more. It makes sense, employees are more valuable because of the scarcity.
The problem is that they think of salary as the only expense that matters. They don't realize that there are other ways to keep people - less expensive and more effective ways.
Younger people in the workforce, in particular, have indicated that chances to grow and develop are more likely to engage them than salary or bonuses. They not only enjoy getting development opportunities, they see it as an investment in their future.
Want to differentiate yourself and get the best employees? Focus on the developmental opportunities you offer.