Workforce Dynamics 3

To date we have looked at four significant areas of Workforce Dynamics that will have a major impact on companies whose very survival depends on a stable and efficient workforce to achieve profitability. The first four areas we examined were workforce fluidity, Generation Y, employee perks and older workers. This month we will look at three key areas that have a great deal of overlap and interdependence; technology, globalization and skills gap.

Technology

No employer needs to be told that the emergence of technology is having an impact on the workplace. Although it would come as a total shock to your children it wasn't all that long ago that email and the internet did not exist. Today most businesses are dependent on that relatively new technology to perform the most basic tasks. Just look around any office when the computer systems are down to witness employees who can barely function without their computers for even a few minutes. This is an amazing impact for a technology that did not even exist when most of the workforce began their careers.

The implications of technology reach far beyond just email and the internet. The explosion of high tech is a double edged sword for employers and employees. For employees it increasingly means they can physically work anywhere and stay connected to the workplace. But this new freedom to roam changes all the rules of the traditional business office. Everything from how to measure productivity to labor law issues arise when employees no longer need to be physically present in an office to accomplish work tasks. As new workers enter the workplace the old rules requiring 8 to 5 office face time will no longer make sense to a generation that cannot remember not being able to communicate instantly with the entire world. Just watch the ease with which teenagers send text messages and you will see how rapidly new technology becomes integrated into our most basic daily activities.

The speed with which information flows can also be overwhelming to employees. Inbox fatigue can quickly set in when communication is instantaneous. Employers and clients may develop unrealistic expectations of how much work a single individual can accomplish in a reasonable work day. Quality may be sacrificed for quantity resulting in employee burnout, stress related illness and high turnover. As new technologies emerge companies must not only pay for the hardware and software to keep pace, they must also constantly train and retrain workers to keep up.

Employers trying to stay competitive with a lean workforce utilizing high tech solutions can find themselves coping with employees who feel isolated, alienated and overwhelmed by the very technology that was expected to solve problems not create new ones.

People and technology will need to be integrated in ways that offer employees the tools to make work more productive while maintaining a healthy work and life balance. Emerging software technologies will bring ever more sophisticated web based intranet and project management applications to the market. These new applications will enable employees to bring the scattered pieces of clients, projects and resources together for faster and more effective collaboration. The ability to manage email, fax, phone and mobile messaging with one integrated message system will soon be the norm. Recent developments such as the popular IPHONE show the market already exists for the next generation of communication devices.

Globalization

Technology has made dramatic changes in the workplace and more than ever before that workplace is global. Technology has not only given us the tools we need to communicate locally. We can now find anything we want anywhere in the world with the click of a few keystrokes. This means not only new market opportunities for many businesses but also the need to think and act with a global view. It may seem challenging to manage your own office team working collaboratively on a project. That challenge is exponentially multiplied if the team is scattered throughout the world. Factor in different time zones, different cultures, different languages and different laws and regulatory environments and you have a completely new respect for multi-national corporations. The Society for Human Resource Management, The 2007-2008 Workplace Trends List states it this way,

"Domestic is global and global is domestic."

The global business model will increasingly impact every employee and business, even those who only see themselves as local. Outsourcing and off shoring have become household words and the shrinking world isn't going to return to pre-technology business norms.

Skills Gap

Business will need a leadership seat at the education table to help plan and implement the training students will need to enter the workforce prepared to face the challenges of a different workplace than their grandparents or parents could foresee. Even jobs that were traditionally low tech have been touched by the technology revolution. Just ask a cross country truck driver about the high tech communications and navigation systems they employ to stay competitive.

A Princeton Brookings journal article on Economic and Labor Market Trends points to an ever increasing demand for high-skilled workers but points out that even traditionally lower skilled positions will require a higher level of technical skill than in previous generations. The US Department of Labor publication "America's dynamic workforce: 2007" has this to say, "Today, and increasingly in the future, a solid education foundation, including completion of post-secondary courses or degrees is needed to compete successfully in the job market."

Another real social impact will be the increasing gap between the wages of the shrinking pool of educated and highly skilled workers as compared to those who lack skills and education. According to the US Census Bureau, one of the largest and fastest-growing groups of young people in the United States are dropouts, rising to almost one out of three Americans in their mid 20's. This trend must be reversed because it cannot deliver the trained and motivated workforce necessary to compete in the global marketplace.

YPP will bring business owners and executives together on May 9 to further explore and discuss the changing dynamics of today's workforce and ways that businesses can adapt to maintain competitiveness.

Workforce Dynamics Part 2

Last month we began the Workforce Dynamics series with two major workforce trends, workforce fluidity and Generation Y. This month we will take a look at two additional trends. Employee perks and the significant role they play in capturing and retaining talent in a competitive job market and a Workforce Dynamic that has grabbed media headlines, older workers and the vital resource they represent in our economy.

In the Spring of 2008 YPP will bring business owners, CEO's and top level managers together to further analyze and explore Workforce Dynamics and provide participants with practical tools to better understand and capitalize on these challenges and opportunities.

Employee Perks

There was a time when we thought of employee perks in the context of the rarified atmosphere of the Fortune 500 executive suite. To borrow a line from an old Dylan tune, times they are a-changing. In today's competition to hire and keep top talent virtually every employer regardless of size is expected to offer some level of perks.

Of course the spectrum is broad. At the top of the "Perks Peak" you have companies like Google where the sheer number and variety of perks are legendary. In an attempt to get an idea of how high Google has set the bar I googled "Google employee perks" and got 29,300 hits. No question there is a hyper-media buzz here but if you look deeper you will find some important lessons and employment trend information.

Our goal is to help employers better understand and effectively utilize employee perks as a recruiting and retention tool in the real world. The traditional purpose of perks is to make employees feel appreciated and increase their motivation to perform for the company. This remains the fundamental purpose although some companies, like Google, have made perks integral to the corporate culture as a means of building a work environment that blurs the lines between personal time and work time.

As an employer you need to look beyond the old standards of health benefits and pension plans. While these remain critical to most employees the increased competition for talent, especially for small businesses, means finding creative ways to reward your valuable workforce without breaking the bank.

The good news is most employees, when asked about the perks that matter most, are realistic in their expectations. One of the most significant trends is an increasing desire to achieve work/life balance. For instance some bonus time off after a big push to complete a demanding project would be a valued perk for many employees.

It is important that at least some of the perks you offer be rewards to recognize individuals rather that just the group. For instance buying lunch for everyone is appreciated but isn't necessarily a personal enough reward. Look at more creative options, such as letting employees work from home and skip the commute on certain days, a couple of family days to use when kids or aging parents have demands without eating into regular vacation time, flexible hours (within applicable wage & hour guidelines) if the standard 8 to 5 is more habit than necessity in your industry are just a few work/life balance perks that can pay off big in employee job satisfaction. On a lighter note some companies have instituted bring your dog to work days, employee car washes, health club memberships, group or individual outings to the movies or other entertainment venues.

The culture of your business, the make-up of your workforce and your specific industry will all be factors to consider in establishing employee perks. As an employer a fresh look at employee perks may give you a big payoff in loyalty and job performance and help cut down on the high cost of recruiting and training in a competitive market.

Older Workers

The Baby Boomers have made history from the beginning, first flooding schools, next making the 1960's a legendary decade of social and political change and later becoming the majority of the American workforce. The Boomer generation broadly encompasses people born between 1946 and 1964, roughly 76 million people. As this generation reaches retirement age it will mean a drastic shift in workforce demographics. In 1950 there were approximately 7 workers for every elderly person in the United States but by 2030 it is estimated there will be only 3.

Like many significant trends this one will present challenges and opportunities. The biggest challenge will be redefining the workplace and developing strategies to integrate older workers into the workforce as a means of expanding the pool of available workers and limiting the impact of what has been described as the single biggest brain drain to ever to hit the American economy.

Jeri Sedlar, the Senior Advisor to The Conference Board on mature workforce issues make it clear that this is a serious issue in a report on America's aging workforce. "...organizations that fail to understand the complexities or recognize the opportunities associated with an aging workforce may risk their ability to stay competitive. As more companies feel the pain of knowledge losses caused by retirements in key businesses or functions, those not planning ahead or leveraging their mature workforce will be scrambling."

The good news is that many baby boomers are willing and able to continue working and do not see age 65 as an automatic signal to stop working completely. Their reasons for wanting to continue participating workforce are often financial but many also just are too healthy and active to see themselves as retired in the traditional sense. What this means for employers is finding creative ways to utilize older workers as a valuable resource and develop jobs that will afford older workers scheduling flexibility, new learning challenges and the opportunity to continue making meaningful contributions. Companies that plan for this drastic shift in the workforce demographics will have a strategic advantage over competitors caught unaware and unprepared.

New business opportunities will also emerge as the aging population continues to need goods and services that address their specific needs. Once again the Boomers will be trend setters and challenge the status quo as they redefine retirement.

YPP looks forward to our Workforce Dynamics Seminar scheduled for Spring 2008 where we will work with business owners, CEOs and top level managers to map workforce trends and explore the important questions and strategies needed to stay competitive. As these trends ripple through the labor force it is critical that employers be prepared not just to cope with new challenges but seize the opportunity to capitalize on emerging opportunities.

Workforce Dynamics

The one constant in human resources is constant change. Employers and their human resources managers are continually challenged to respond to changes in what we call workforce dynamics. Gone are the days when people made permanent career choices at an early age and stuck with them until they received their guaranteed pension at 65. Just as businesses have been carried into the technology revolution they will also be swept into the workforce revolution.

Your People Professionals is in a unique position to track and evaluate the emergence of workforce trends and challenges. Serving as the human resource partner for hundreds of businesses and their employees over more than 20 years has given us the opportunity to constantly monitor changes in workforce dynamics and the impact on employers and employees.

This is the first in a series of articles on some of the most significant trends we see affecting workforce dynamics. Over the next several months we will give you brief summaries of some of the most compelling issues being evaluated by YPP's team of HR professionals. These brief issue introductions will culminate in the spring 2008 when YPP will host a Workforce Dynamics Seminar. We will bring business owners, CEO's and top level managers together to explore Workforce Dynamics and provide practical tools to better understand and capitalize on these challenges and opportunities.

We will begin the series with two of the major trends confronting managers, workforce fluidity and Generation Y.

Fluidity

If you are an employer dealing with workforce fluidity it may feel more like a very bumpy ride than a manageable employment trend. There was a time when employees were cautioned employers would view too many jobs or too many career changes on a resume as a serious negative. Often employees stayed at jobs just because they were afraid of looking like a job hopper.

Faced with the power of the Internet, fast-paced changes in technology, overseas outsourcing and a shrinking workforce, employees found themselves in uncharted territory. Many employees began viewing their careers from a new perspective. Not as a static choice to ride out to retirement but rather as a fluid ebb and flow with the opportunity to make adjustments as needed to best suit an employee's personal needs at different phases of their careers. These employee choices can leave employers coping with employees who do not hesitate to move on at the slightest provocation or when presented with even a marginally "better" opportunity. The advent of the internet means there is instant information access and entrepreneurial opportunities abound. Want to know what your counterpart in another city makes, or what benefits the company across town offers? Log on and chances are the information can be easily obtained.

Gone is the fear that too many jobs on a resume will doom employees to failure. On the contrary, some recruiters may view loyal and stable employees as too risk averse or likely to have dated skills. Every internet job search site abounds with articles encouraging employees to take charge of their careers and move on to better opportunities. Employees can even quit their jobs electronically, just go to http://www.iquit.com/ and someone will handle your resignation for you.

Challenging workforce dynamic for employers? Of course, but with some management savvy, employers can get ahead of the curve.

First, the obvious: make sure you offer salary and benefits in line with your local area and industry. Nothing guarantees constant turnover like below market wages and sub par benefits. It can be hard for employers to measure the real cost of high employee turnover, but factor in training time, customer service challenges, and recruiting expense and you will start to see your "salary savings" evaporate.

Second, no matter what the size, every business has a corporate culture. Make sure that you utilize every available tool to ensure that the employees you hire are a good "fit" for both the job and your organization. YPP recently introduced our innovative SmartSource Recruiting System to respond to marketplace conditions and employer needs. If you want improve your workforce stability you need to make the pre-hire investment to make sure the "fit" is right.

Over the next several newsletters leading to the Workforce Dynamics Seminar we will also explore some of the more creative employee perks and management strategies that can help stabilize your workforce.

Generation Y

We have all read the headlines about Generation Y moving into the workforce and the changes they will bring. Who are Gen Y workers? Definitions vary but essentially they are the more than 70 million Americans born from 1977 to 2002 and according to a recent USA Today article they are the fastest growing segment of the American workforce at nearly 32 million workers.

Watch out employers, Gen Y is rocking the workplace. These employees are often tech savvy, high performance and high maintenance. Often the product of a child centered household, they have a strong sense of their own self-worth and little tolerance for the status quo of business as usual. High tech isn't something new or challenging; it has always been part of their lives.

Y-ers are the first generation raised with the positive reinforcement and self-esteem building that became popular in parenting during their formative years. "Generation Y may need help with accepting constructive criticism and managing conflict," says Linda Gravett, senior partner of Cincinnati, OH-based HR consulting firm Gravett & Associates and co-author of "Bridging the Generation Gap" (Career Press, 2007).

Bruce Tulgan, of RainmakerThinking, considered one of the leading experts on Gen Y summarizes Gen Y workers as follows:
High Expectations of self: They aim to work faster and better than other workers.
High Expectations of Employers: They want fair and direct managers who are highly engaged in their professional development.
Ongoing Learning: They seek out creative challenges and view colleagues as vast resources form whom to gain knowledge.
Immediate Responsibility: They want to make an important impact on Day 1.
Goal-Oriented: They want small goals with tight deadlines so they can build ownership of tasks.

A recent survey conducted by careerbuilder.com in June of 2007, titled "Gen Y at Work", identified real generational gaps in communication styles and job expectations when they gathered data from more than 2,500 hiring managers and HR professionals across all industries. A startling 87% of all hiring managers and HR professionals say some or most Gen Y workers feels more entitled in terms of compensation, benefits and career advancement than older generations.

Another critical issue employers need to address when managing Gen Y workers is the concept of work-life balance. There is a much higher value placed on self-fulfillment. Corporate success at the expense of health, relationships, and quality of life just isn't their idea of what matters most. Career may be important but it does not define them or their self-worth.

There are a number of excellent books on emerging generational management issues. Managing Generation Y by Bruck Tulgan and Carolyn Martin is a good place to start if you are interested in a more in-depth exploration of this workforce dynamic. Gen Y will be a feature topic of YPP's Worforce Dynamics seminar next spring.

Next month we will discuss creative employee perks, sometimes called Lollipops, that employers are utilizing to help keep the talent they need to compete. We will also examine the other end of the employee spectrum, Older Workers and the expanded role they will play in the American workforce.