Article from Greg Smith

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The Perfect Storm:
The Impending Workforce Crisis

In the movie, Perfect Storm, a small fishing vessel has the misfortune of encountering the worst Mother Nature has to offer.  Just like this boat, today’s employers are facing a combination of conditions just as threatening as this boat faced on the high seas. If businesses don’t prepare today they could face a similar misfortune.  

Over the next decade the leadership talent pool (35-44) will be reduced by 9%. That number will further shrink to 10% by 2020 according to the U.S. Census Bureau, International Database.

Tamara J. Erickson, co-author of Workforce Crisis delivered a thought provoking presentation at the recent Society of Human Resource Management (SHRM) conference in June.  In her presentation, "New Models of Work: Avoiding the Coming Crisis of the Changing Workforce," she points to five issues all employers should be concerned with:

Issue One: Not enough bodies. The growth in the working-age population is �screeching to a halt.�

Issue Two: The workforce is getting older. The U.S. population 2000-2010 shows a rapid growth in the over-55 workforce. This means the leadership pool is shrinking.

Issue Three: Inappropriately skilled workers. Over the next decade only 30% of the 21-year-olds will obtain a college degree, while over 90% of the new jobs created in the U.S. will require a college degree.

Issue Four: A highly diverse workforce. The emerging workforce has diverse values across the following generational groups: Traditionalist; Leading-edge Boomer; Trailing-edge Boomer; Generation X and Generation Y. 

Issue Five: Less desire for a leg up. All groups are showing a decline in their desire for greater responsibility. 

Some Perspective

With a pattern of declining birthrates, skill shortages, and an increasingly older population, we see a common pattern affecting the workforce of the industrialized world.  In the U.S., we have the added situation of �boomers� and �echo-boomers� which indicates changes in the workforce are not going away in this century.

Compounding the issue during the next decade only 30% of twenty-year-olds will obtain a college degree. The bottom line is HR will have to change the �requirements� of job descriptions to �desires,� and employers will need to spend more time educating and training their workforce. That is according to Tamara J. Erickson, co-author of Workforce Crisis.

Additionally, organizations face increased ethnic, generational, and racial diversity.  These diverse values and generational differences place greater demand on managers and leaders. They need to be managed and led in a different manner. Sadly, the educational system is not prepared for a knowledge economy needed to produce high-performance in organizations.  Employers will have to fill the gap. They also need to be looking at ways to converge HR and training as a standard practice to keep pace in a highly complex labor market. Organizations need to be gearing up for this now.

Are your managers and leaders able to cultivate the diverse talents of diversity, generational differences, and shifting talents?

Will they be able to lead teams to increased productivity and high-performance?

Have you put plans in place to increase professional development in your organization? If your answer is no, or you are not sure, you may have a greater reason to be concerned. 

A Solution

Cultivate the potential of each person. Build greater flexibility in your work hours. Discover what satisfies and dissatisfies each generation. I assured a client recently that engaging in a retention plan to address this issue would put her organization in a better position to gain than lose her workforce to retirement or the competition. Her organization is already seeing the boomers looking for greater flexibility in taking time off for leisure. But, at the same time, they want to stay employed. Meanwhile, the 35-45 year olds are looking for more family time and are less willing to take on greater responsibility.

I recommended a plan that combines the following:

1. Start with a sound hiring strategy for the best talent that meets or exceeds current and future needs.

2. Create a plan for retaining new and identified existing talent in the organization.

3.Examine workplace dimensions such as leadership, communication, training, and recognition.

4. Examine, train, and coach with a leadership style for existing managers and for up-and-coming leaders in the 25-34 year-old group that focuses on:

–Maintaining and enhancing team member self- esteem.
–Focusing on behavior (what team members do rather than their attitudes or personal characteristics).
–Encourage team member participation in decision making and problem solving.

Fortunately, there is still time to act in putting your organizational plan in place.

Recognize the world around you is changing. It includes the new millennium workforce that has totally different needs and expectations. It is about adapting. Prepare now and avoid being caught in the storm.

Greg Smith shows executives and business owners how to reduce employee turnover and build high retention workplaces. He has written seven books and more than 300 articles on business management.  He speaks at conferences, conducts management training, and is the President of a management consulting firm, Chart Your Course International located in Atlanta, Georgia. Phone him at (770) 860-9464 or send an email to greg@chartcourse.com. More information and articles are available at www.ChartCourse.com and www.HighRetention.com.

==========================
Gregory P. Smith
President
Chart Your Course International
Examiner, Malcolm Baldrige National Quality Award

"We show managers how to create high performance
organizations that attract, keep, and motivate their workforce"

Author of:
Here Today Here Tomorrow: How to Transform Your
Organization from High Turnover to High Retention

Phone: (770) 860-9464
http://www.ChartCourse.com
http://www.HighRetention.com
http://www.BehaviorProfile.com

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FW: Google Alert – employee turnover

Kronos Buys Two Companies, Warns of Revenue Dip in Q3 IT Jungle – New
York,NY,USA … with its Talent Management System and, through analysis
of employee applications using Unicru’s Employee Selection Tools, cut
down employee turnover by 10 to …
http://www.itjungle.com/tfh/tfh072406-story08.html>

Domino’s CEO delivers stores around globe Louisville Courier-Journal –
Louisville,KY,USA … giant. Among them: Cutting employee turnover,
retaining more managers and being named one of the top 100 companies to
work for. …
http://www.courier-journal.com/apps/pbcs.dll/article?AID=/20060724/BUSINESS
/607240326/1003>

Radford Surveys + Consulting’s Q2 Quarterly Trend Report Reveals …
Yahoo! News (press release) – USA
… “The perception of higher voluntary turnover may be due …
“Globally, nearly half of tech companies in the QSIT predict up to 15
percent employee growth in their …
http://biz.yahoo.com/prnews/060724/cgm037.html?.v=59>

Overtime fattens paychecks of state workers San Francisco Chronicle – CA,
USA … And a 1999 state audit noted, “Overtime can also lead to
increased use of employee sick time, greater employee turnover, more
workplace injuries, added …
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2006/07/24/BAG6GK49J61.DTL
>

Employee Retention: What Employee Turnover Really Costs Your …
WebProNews – Lexington,KY,USA
It’s employee turnover. … This amounts to $30,000 per month, or
$1,000.00 in employee turnover costs every day of the month! Annually,
this totals $360,000.00. …
http://www.webpronews.com/expertarticles/expertarticles/wpn-62-20060724EmployeeRetentionWhatEmployeeTurnoverReallyCostsYourCompany.html>

Protecting benefits of present, future retirees Saipan Tribune –
Saipan,Northern Mariana Islands,Micronesia … the number of persons in
the plan, their ages and years of service, salary increases, plan
expenses, mortality, rates of employee turnover, retirement age, and …
http://www.saipantribune.com/newsstory.aspx?cat=3&newsID=59652>

Beleaguered GTSI sheds reseller model
FCW.com – Falls Church,VA,USA
… storm,” Leto said. The confluence of factors led to a backup of
10,000 orders, angry customers and high employee turnover. He said the

http://www.fcw.com/article95377-07-24-06-Print>

Indian Outsourcer WNS Readies IPO
eWeek – Woburn,MA,USA
… Employee turnover and upwardly spiraling wages are listed as risk
factors in the company’s SEC filing. Those twin perils have bedeviled …
http://www.eweek.com/article2/0,1895,1993543,00.asp>

Water, sewer rate increases likely with budget proposal News Journal –
Longview,TX,USA … six police officers, adopting the battalion chief
staffing plan that’s been recommended by the fire chief, preparing to
address employee turnover by reviewing …
http://www.news-journal.com/news/content/news/stories/07232006Budget_Advances.html>

FW: Google Alert – employee retention

Is data retention secure?
FCW.com – Falls Church,VA,USA
… Department of Veterans Affairs employee has re-emphasized the message
that inadvertent, large breaches will occur. In response, data-retention
proposals should …
“>http://www.fcw.com/article94772-06-12-06-Print>

Learn Fast What Works
Wall Street Journal (subscription) – New York,NY,USA … treatments per
day, labor hours per treatment, and the retention of employees … Thiry
believes that just having executives stay informed can reduce employee
angst …
“>http://online.wsj.com/article/SB115007194651277439.html?mod=googlenews_wsj>

Information Privacy, Retention and Other Necessary Evils Computerworld –
USA … goes far beyond the legal concerns of having your employee’s
information exposed … went awry though was when it started discussing
records retention, and made the …
“>http://computerworld.com/blogs/node/2741>

IDC Study Analyzes Cost Savings and Efficiencies Resulting from …
PR Newswire (press release) – New York,NY,USA … It is a key tool in our
talent retention efforts,” said Lowell Richardson … Halogen’s EPM
solution to improve the speed and quality of employee appraisals, as …
“>http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/06-12-2006/0004378651&EDATE=>

Kaiser adds healthy dose of fresh-food commerce MSNBC – USA … Every
dollar spent on keeping people healthy is a threefold investment:
in reduced absenteeismemployee satisfaction and employee retention,
Halprin said. …
“>http://msnbc.msn.com/id/13269207/>

Grow Smart Retaining through Training
Area Developer – San Jose,CA,USA
… Next time: Employee training for retention for the next milestones
through 36 months. Thom Winninger has been referred to as America’s
Market Strategist. …
“>http://www.areadeveloper.us/article.php?id=119>

The Manager Minute
TMCnet – USA
… Employee retention tip: It’s about the way you manage. Benefits are
important, but it’s the relationships you build that are critical. …
“>http://www.tmcnet.com/usubmit/-manager-minute-/2006/06/12/1677361.htm>