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Articles
Future
Workforce
By Charles Shultz
American
industry is entering into uncharted ground with regard to workforce
availability. There are approximately 21 million workers eligible
for retirement in the United States and in 10 years another 31 million
workers will be over 55 years of age. Only 6million young people
are entering the workforce in the next 5 years. Any way you slice
it, these numbers equate to a shortage of workers in the not too
distant future. Employers will be looking for more employees from
a limited resource pool. Conventional employment wisdom will not
provide the workforce necessary for you and your business to remain
successful in the not too distant future.
The
severity of the shortage may depend on factors that we can't possibly
foresee. World and national events and economy, new industry and
enterprise will undoubtedly impact the availability of a qualified
workforce for American industry. We will no longer be able to wait
for someone to announce their retirement or to give notice of voluntary
termination before recruiting a replacement. Our changing environment
will require proactive, innovative solutions. Our new circumstances
will necessitate us to develop a Strategic Employment Plan based
on facts and statistical probability. Businesses, who fail to begin
to plan now, may be caught in a reactive circumstance, competing
with many other businesses for a limited number of people in the
labor market.
An
effective Strategic Employment Plan takes some time to develop and
longer to successfully implement. The plan should first be set on
a foundation of public perception. Your business must be considered
a "Preferred Employer" to potential employees. It is easier
to recruit employees who already want to work for you. Not just
find a job, but really want to work for you and your company. Your
organization should have a written Vision, Mission and Values and
the character and work ethic of your management team and employees
should reflect the standards set by the Vision, Mission & Values.
You should develop a Job Family Progression based on qualifications
that defines an employee's ladder of progression from the date of
hire until they leave your company at retirement. And finally, raise
the bar. By that I mean toughen the requirements of people coming
to work for you. You don't want just anyone as an employee, you
want the best. You only get the best by expecting the best.
The Strategic Employment Plan should include four categories: Workforce
Analysis, Recruiting, Hiring and Retention. Each category is as
important as the next. Workforce Analysis is simply determining
the number of people your business will need to hire in the future
to meet organizational growth or contraction, and attrition. Recruiting
is the business's ability to attract a pool of qualified applicants
to meet your business needs. Hiring will be defined as your ability
to close the deal and get the person in the door that you are proud
to have working for you. Retention is keeping the person once you
get them in the door. Your strategy must be written for Recruiting,
Hiring and Retention based on the data identified in your Workforce
Analysis. For the purpose of this article, we will explore the Workforce
Analysis and, in greater detail, the Recruiting process.
Your
Workforce Analysis will determine how many employees, with what
qualifications, you will need by when. There are multiple questions
you should answer to accurately determine your business's future
workforce needs. How much do you plan to grow or reduce in the next
five years? What classifications will be affected? How many current
employees in what classifications can statistically be expected
to leave due to retirement? What is your attrition rate? The answers
to these questions should result in your understanding of the number
people you will need with what qualifications month-by-month, year-by-year.
Understanding your employment need is first step to developing an
effective Strategic Employment Plan.
Traditional
recruiting processes are changing as I write this article. Some
of my colleagues are already developing partnerships with high schools
and community colleges in an effort to corner the local labor market.
An effective Intern program will become increasingly important also.
But before we dive headlong into the potential of Internships, lets
discuss high school and community college partnerships. The purpose
of the partnerships is two fold. The first may already be taking
place as a public relations strategy and that is providing annual
school presentations. A school presentation provides the students
with an overview of the company's contribution to the community
and an orientation of the company. Company's can provide Job Orientation
Fairs that inform the students of wages and benefits they can expect
in various functions of the organization and the qualifications
necessary for the student to earn those wages and benefits.
Community
Colleges Partnerships are more traditional. Businesses can provide
Internships for Community College engineers, mechanics, welders,
machinists, information technicians, and secretaries. Your organization
will benefit by getting additional work performed, evaluating performance
and begin tying up potential employees of the future. The final
piece of the Partnership puzzle includes working with the Community
College to ensure your future employees are learning the skills,
knowledge and competencies necessary to work in your organization.
Internships
from Universities are already pretty common place for many companies.
Most companies, however, limit their Intern recruiting to local
Colleges and Universities. By limiting your Recruiting venue, you
are also limiting your ability to recruit this nation's best and
brightest. If you and your company are shooting for world class,
then you need to recruit world class future employees. Identify
a few Universities and Colleges with good reputations and schedule
a recruiting trip. I have found Interns prefer performing meaningful
work. Assigning them to dig ditches by hand all summer may teach
them lessons in hard work but will most likely motivate that employee
to find another employer next year. The benefits of an effective
Intern program are numerous. The employer should get additional
work completed, will be able to evaluate the Intern as a future
employee, allows the Intern to evaluate if they want a career in
your company, orients the Intern into your business and improves
the potential of recruiting that student after graduation.
It
is naïve to think that your organization can prosper by recruiting
entry level type people only. You will need to recruit
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