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Major change ahead for work forceBy Kay Plantes
Owing to the rapid decline in birth rates following the 1946-1964 baby boom, older workers will be retiring in droves, while the number of workers in prime development years (35-44) will be shrinking. These demographic changes will revolutionize the balance of power between employers and employees. Manpower is positioned to know about these trends. The staffing company annually sees more than 10 million candidates in more than 4,300 offices worldwide. Jonas Prising, president of North American operations, and Rick Davidson, chief information officer, spoke at Wisconsin Technology Network's Fusion 2007 conference in February. Manpower's clients are seeing as much as 20 to 30 percent of their work forces retiring in the next five years. Furthermore, 45 percent of its North American clients (29 percent worldwide) would have hired additional professional staff had qualified candidates been available. Demand for many occupations, like IT specialists, will soon outstrip supply, even when taking into account Asian outsourcing of work. With talent key to any organization's success, companies will need a talent strategy that parallels competitive strategy. Confront brutal facts: Identify the age distribution of your work force, current and anticipated turnover in each group, and reasons for turnover. Measure current and anticipated skill shortages over the next decade. Know target markets: The Manpower executives identified three broadly defined groups of American workers: young (25-35), mid-career (36-55), and mature (55+). Design employment policies to attract and retain each segment, each with different needs driven by age and their cohort's cultural experiences. Today's youth want accelerated achievement, frequent and open two-way communications and wide latitude to "do it my way." Flexible schedules and opportunities to learn and contribute right away are critical to this group. In response to this generation changing jobs frequently, form an alumni group of ex-employees to stay connected, should they want to return. Frustrated idealists fill the mid-career group (a.k.a. baby boomers); their drive to be true to boomer ideals leads them to seek work-life balance. If upward mobility paths are not feasible, give them a diversity of opportunities to make their desired impact. The mature segment, consisting of early boomers and the "Schwarzkopf" generation, measures success in wealth and status terms. The most loyal of all segments, it's advisable to extend their working years by offering flexible work schedules, benefits and opportunities to exercise their talents. Expand your market: Re-skill and tool-up your work force, improve retention and reach into nontraditional labor markets such as re-entering moms, disabled workers and retirees. Organizations that embrace and celebrate diversity will win the war for talent. Manpower executives also recommend outsourcing noncore functions and automating processes to mitigate labor needs. Define your value: Why will candidates select your firm? Why will employees stay? Davidson recommends engaging employees in defining your value proposition. I'd also advise studying practices of the eclectic "Best 100 Companies to Work for in America." Build success today: In Davidson's words: "Get started - this is an issue that will not solve itself." For decades, companies enjoyed the upper hand in the employer-employee balance of power, with professional jobs requiring full-time, full-year commitments. While Dane County's population growth mitigates our issues, the intensified global war for talent demands you pull out a blank sheet of paper and redesign your company's human resources policies. Anything less may be too little, too late. Kay Plantes is a Madison economist, strategy consultant and executive educator. You can reach her at plantes@execpc.com with your best practice or question. plantes@execpc.com madison.com ©2009 Capital Newspapers. All rights reserved. |
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