The word “crisis” isn’t really appropriate.
> crisis (noun)
> 1. A crucial or decisive point or situation, especially a difficult or unstable situation involving an impending change.
-- American Heritage Dictionary, 5th Ed.
Sure there is. There are companies that are going to go out of business if they can't hire.
> ... just offer higher compensation or better working conditions
Not if they are a startup and simply can't. They only have so much funding. And besides that, it's not even a question of offering more. It's a classic low supply and high demand situation. Only those with the most are going to win the bid in the end.
The rest will go out of business for failure to hire. That's the crisis.
While I'm not currently a hiring manager, I've done plenty of software developer hiring in recent years. It's not that hard. I always found candidates who could do adequate work. The managers and founders complaining about the difficulty of hiring either have unrealistic expectations, or they're just incompetent and don't know how to do it well. There's no limit to supply as long as you're willing to hire people with potential and invest in training them.
Funding isn't fixed. For startups there is effectively infinite investment capital available. You can always do another funding round if investors like your story.
Work location is part of the total effective compensation plan. Employers have always been able to pay people less and have a wider pool of candidates by offering remote work.