Quickly rising and about to strike, the tidal wave of demographic pressure in the United States is a formidable threat to the health of American business. Employers are already passing up opportunities to expand their businesses because they do not have, and cannot find, workers who can handle what is required. Although this demographic tidal wave has been stirring for some time, few employers have strategies to deal with it. Not surprising when Wharton's Director of Human Resources Peter Cappelli points out that about two-thirds of companies do no planning for work force issues at all.
There is a decreasing number of available fit, educated, trained employees with a strong work ethic. While knowing how to attract, manage and retain employees has always been a key component of sustaining growth and high productivity, this is the only way to grow profitably in times of scarcity.
A good example is automobile technicians, a job that will never be outsourced. The rapidly changing nature of the job, coupled with the need for highly technical skills and a negative stigma associated with this career choice have resulted in a shortage of 35,000 to 60,000 technicians per year, according to Richard White, senior vice president, marketing and member relations for the Automotive Aftermarket Industry Association (AAIA). The situation will only be exacerbated in the next decade when boomer-generation technicians enter retirement, with over one-half of the top technicians expected to retire in the next 10 years.
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Employers need to ask themselves some serious questions. Are they the employer of choice in their area – the one that everyone wants to work for? Do their top employees regularly refer qualified candidates for hire? With rigorous hiring standards and high performance expectations, can they select and retain the best employees for the job? Which employees do they want to attract and retain, and how are they going to develop them?
While the parameters defining "employer of choice" will vary by industry and location, there are commonalities. Attractive salaries and wages, job security, advancement opportunities, rich benefits, flexibility, desirable perks, managers who treat their employees well and ethical practices are all on the list.
Taking steps, such as employee surveys and exit interviews, to understand what motivates and drives employees is key to becoming an employer of choice. For two consecutive years, Google has topped the list of large employers, and while financial security and flexibility are key attractions, the "opportunity to get things done" is at the top of the list as well.
Many companies might respond, indicating they cannot afford to be among this group; but, in truth, they need to recognize that they must structure their budgets, priorities and cultures so they become an employer of choice. They cannot afford the alternative – it is only those employers that can be very selective and attract, retain and motivate the best employees that will grow profitably.
An engaged employee has a vested interest in an employer's success; creating career paths is often identified as a way to keep people interested in their jobs. While younger employees with high potential are the focus of career development opportunities, extending and redefining career paths to all employees enhances retention strategies and strengthens productivity. For example, the older automobile technician may move on to service writing or be paired with new employees as a mentor.
Employers need to be agile and responsive as they face the challenge of maintaining a healthy, trained, productive workforce. As workers' comp professionals, we often see workers' compensation used as an "exit strategy." Pushing their physical capabilities, some older workers are injured, take longer to recover and many never return to the work force. Not only does this drive up an employer's workers' compensation costs, but it also leads to a loss of capable employees with critical legacy knowledge.
Constantly threatened with a double-edged sword – younger employees entering the workforce are less healthy than previous generations and older employees are often working beyond their physical abilities to perform their jobs – employers need a strategy. While EAP and wellness programs are valuable and necessary tools, the best solution is to be the employer of the choice. With ample job applicants and rigorous hiring practices, employers can hire the best and secure a lasting competitive advantage.
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