18 Oct 3 Realities of Today’s Workforce Affecting All Employers
Within recent years, we’ve seen some new workforce challenge take shape, affecting employers across virtually all industries. To create plans for addressing these challenges, it’s helpful to explore each workforce issue in greater detail. Here, we dig deeper into three realities of today’s workforce, along with some possible solutions for overcoming them.
It’s estimated that skill shortages will continue to plague the U.S. labor market for the next decade and a half, so now is the time to develop strategies for recruiting and retaining the skillsets that are most important to your organization’s success. In particular, healthcare and high tech may need to be more aggressive than other industries, as these fields are most likely to suffer ongoing skill shortages. In fact, the U.S. Bureau of Labor Statistics reports that nearly 25% of jobs created in 2016 were in the healthcare sector.
Adopting compensation strategies to accommodate for skill shortages can be tricky: raise base pay, and you may be forced to continue paying high rates even after the skill shortage passes. It might benefit you to avoid dramatically changing base pay for in-demand skills. Instead, keep pay within the normal range and utilize variable pay and incentives to attract and retain talent with the skills you’re seeking. You can always raise base pay as needed, but if you keep it within a normal range, you won’t be stuck paying outrageous rates after skill shortages have leveled out.
According to Pew Research Center, 10,000 Baby Boomers reach retirement age each day. This will be true for a 19-year period starting back in 2011 and continuing until 2030. With economic factors having negative effects on Boomer retirement funds, many will work during their retirement. The Bureau of Labor Statistics predicts Boomers will be the fastest growing segment of the workforce this decade. Consider attracting quality workers from this generation through offerings such as shortened shifts, abbreviated work schedules or job-sharing opportunities.
A noteworthy trend in the workplace is the sharp decline in employees’ loyalty to their organization. LinkedIn research indicates that while Gen Xers had two jobs on average within the first ten years of getting their degrees, Millennials hold twice that many jobs – at least four – within their first ten years out of college.
PriceWaterhouseCoopers research indicates that 54% of Millennials will have two to five employers in their lifetime, while 25% will have six or more. However, these are simply projections that represent current attitudes. It’s possible these figures will actually be higher if we don’t find ways to engage, and thus retain, Millennial workers.
A great place to start in retaining Millennials is by understanding their mentality. Many workers in this age group were brought up playing sports; thus, it’s no surprise they prefer “coaching” management styles to traditional approaches. Additionally, while you might think the sports-like mentality would make Millennials competitive by nature; they actually prefer to work in collaborative, team-like environments.
HRsoft is a leading provider of strategic talent management software that improves manager effectiveness and business results. Our full suite of cloud-based HR software solutions includes applicant tracking software, compensation planning software, total rewards software, stay interview software, performance management software, and content management software. To learn more about our Compensation Management Software, COMPview, click the button below!