Perfect Labor Storm 2.0

Gray ceiling disrupts succession plans for Gen Xers

     While some organizations are focusing on recruiting new and replacement workers, many others are urging and enticing older workers to stay longer. This is creating a new form of discrimination called the “gray ceiling.”  Unlike the more common cases involving discrimination such as gender, age, and sexual preference, the gray ceiling isn’t necessarilty protecting a protected class. The implications for ignoring the gray ceiling won’t likely result in an employee filing a discrimination claim. But this isn’t necessarily a time to celebrate.  The consequences may be much worse!

     Generation X, the former youngest generation in the workplace, are now the middle children at work.  They’ve been patiently – or at least reluctantly - waiting for a boomer to get out of the way so they can finally move up the career ladder.  But those aging, baby boomers just don’t seem to want to move on with their lives.  Whether it’s their workaholic nature or the need for money, they are not leaving the workplace as quickly as anticipated.

     While that might generate a sigh of relief for many executives and business owners, I’ll suggest you take a deep breath and …..ponder this.

    

     The most highly skilled Generation X workers are no longer waiting around.  They are leaving the workforce in record numbers. Their skill sets make them hot property. Their age (roughly late 20s to early 40s) offers another organization immediate talent and future capacity.

This exodus of Gen X skilled workers is not only the fault of gray-haired boomers staying longer.  It’s also the result of the newest generation, the Millennials, arriving on the scene.  Bright, ambitious, collaborative and technically advanced, this youngest cohort is catching the eye of the workplace elders and the wrath of the Xers. In fact, it’s not the Boomers who are complaining the most of these “irritating rug rats.”  It’s the Xers!

     

     What is beginning to happen in many workplaces is that the Millennials are leapfrogging the Xers into lead roles and projects.  Even more insulting, Millennials are like heat seeking missiles for knowledge.  Why waste no time going to his or her Gen X boss when they have a question.  They just go straight to the best source by sending an email or knocking on the door of the President.  This group is used to quick access to information. Why go to the library and borrow the book when you can "google" just about anything?  Playing politics to them is just like playing games.  You outmaneuver your opponents to get to the next level.  Gen Xers are just another level on the way to the top and these game-playing Millennials are smart and savvy. 

     

     The Xers, on the other hand, are restless and aren’t taking this lying down. Remember these kids grew up with latch-keys and learned to fend for themselves.  Ignore them and they’ll go away without anyone really noticing.  But when the boomers finally do decide to call it a career, a gaping talent hole will be discovered by those businesses who don't consider the consequences and don’t plan ahead.

     Succession used to be so much easier!  What’s a business to do? 

1.  First things first.   Assess the demography of your workforce today. How many older workers are just biding time until retirement?  How soon will be they leaving?  Who is in line to replace them?  How many younger workers are at risk to be picked off by a competitor?

2. What is the capability of the younger workers?  Will they be prepared to move up into management and leadership position when the time comes?  What additional training will they need?

3. How prepared are your managers to deal with the wants and demands of four generations working side-by-side?  How prepared is your organization to squelch the workplace warfare between the Geeks, Geezers and other generations? What can you do to slow the boomer brain drain, retain the Gen Xers and recruit the Millennials all at the same time?

Nuclear industry experiencing worker meltdown

In the next five years, just as the nuclear industry hopes to launch a renaissance, up to 19,600 nuclear workers-35 percent of the workforce-will reach retirement age.

Big energy construction will be booming in the next decade, concentrated in the South-not only nuclear generators but coal plants, liquefied natural gas terminals, oil refineries, and electricity transmission lines. All projects need skilled craft workers, and they are in drastically short supply. The utility Southern Co. estimates that existing energy facilities already are short 20,000 workers in the Southeast. That shortfall will balloon to 40,000 by 2011 because of the new construction.

Read More: Worker Shortage in Nuclear Industry

Over 1/5 of U.S. employers have difficulty filling positions

According to the 2008 Talent Shortage Survey conducted by Manpower, 22% of the 2,000 employers participating in the survey indicated they were having difficulty filling positions even in a slowing economy. On a brighter note, this is less than the 41 percentage of U.S. firms having difficulty filling positions in 2007.  Nevertheless unfilled positions in key roles are de-railing the business plans of many organizations.  For instance, energy industry can't keep up with demand. Backlogs for drilling rigs are out 3 to 5 years because the companies can't find enough qualified people.  Machinery is breaking down for longer periods of time in manufacturing because employers can't find enough maintenance technicians.

The hardest to fill positions are:

1. Engineers
2. Machinests/Machine Operators
3. Skilled Manual Trades (welders, carpenters)
4. Technicians
5. Sales Reps
6. Accounting and Finance Staff
7. Mechanics
8. Laborers
9. IT Staff
10. Production Operators

The U.S. isn't alone. Over 73% of employers reported having a difficult time finding the right people.  In Japan 63% of employers can't find skilled workers. In Hong Kong, it's 61% and Australia, 52%.

On a worldwide basis, shortages of skilled manual labors dominate the list with nearly one-third of employers reporting hard-to-fill positions.

Source: Manpower "2008 Talent Shortage Survey"

One fifth of workers completely disengaged!

Employees who'd rather tune into their iPod than the needs of your customers are nothing new. But is the problem getting worse? As they text and instant message friends about their discontent, or walk the length of the hallway just to gaze longingly at the parking lot, that's not a bad question to consider. A new report, "The State of Employee Engagement 2008," issued by global consultant BlessingWhite, reveals that fewer than one in three North American workers are fully engaged. Moreover, 19 percent are completely disengaged, and a further 13 percent are disillusioned and at risk for becoming disengaged. The study, based on a survey of more than 7,500 employees and interviews with 40 human resource and line managers on four continents, identified five levels of employee engagement in North America:

Engaged: 29 percent. These employees are contributing fully to the success of the organization and find great satisfaction in their work. They bring discretionary effort and initiative.

Almost Engaged: 27 percent. A critical group, these employees are among the high performers and are reasonably satisfied with their job. Organizations, BlessingWhite recommends, should invest in them because they are highly employable and have the shortest distance to travel to reach full engagement.

Honeymooners or Hamsters: 12 percent. Honeymooners are new to the organization or their role and have yet to become fully productive. Hamsters may be working hard, but are, in effect, spinning their wheels, focused on the wrong things, and contributing little to the success of the organization.

Crash and Burners: 13 percent. "Crash and Burners" are disillusioned and potentially exhausted. They are top producers who are not satisfying their personal definition of success and satisfaction. Sometimes bitterly vocal, these workers, if left alone, may slip into disengagement and bring down those around them.

Disengaged: 19 percent. Disengaged employees are the most disconnected to organizational priorities and are not getting what they need from work. If left alone, people in this group are likely to collect a paycheck and enjoy favorable job conditions but contribute minimally. Some disengaged employees will leave, but more likely they will just talk about leaving. "While organizations are keen to maximize the contribution of each individual toward corporate imperatives and the metrics," says BlessingWhite CEO Christopher Rice, "individual employees need to find purpose and satisfaction in their work."

Source: Inside Training Newsletter, May 07, 2008

The "Hole" Story

The story wasn't new - a perfect labor storm is brewing.  But the title caught my eye.

The headline in today's (May 4, 2008) Atlanta Journal Constitution stated the problem quite simply:

Hole story: Georgia work force faces gaps as boomers retire

The article begins with "the percentage of the state's population ages 55 to 64 is growing (from 8.6 percent in 1998 to 12.2 percent in 2007), while the percentage of people younger than 24 is shrinking. At the same time, Georgia's economy is expanding. This means there will be fewer entrants into the job market at the same time that older workers will be retiring."

That's not big or new news unless you've just awakened from a 20 year sleep.  It's significant in that still another state is realizing the gaping hole opening up in its workforce. 

The author does a good job of pointing out that shortages are imminent in management, leadership, healthcare, education, child care and the trades - electricians, plumbers and welders to name a few.

I've said it before-I'll say it again:  the Perfect Labor Storm is not something that will happen to everyone else.  It's a global-wide phenomenon and change the way every organizations does business.

Read the rest of the Hole Story.

Read more about the Perfect Labor Storm.

And still another state (Maine) reports skilled worker shortages

Maine businesses may have trouble filling positions in the future, according to a study from the state’s labor department.

The study, conducted by the Center for Workforce Research and Information at the Maine Department of Labor, projected that there will be a high demand for skilled and unskilled workers in a variety of occupations throughout a broad spectrum of Maine’s economy in the coming years.

There is some question whether there will be enough workers to meet those needs. The study projected high-demand and high-wage jobs through 2014. In the study, high demand indicates that an occupation is expected to have at least 20 openings per year through 2014.

Read more about skilled worker shortages in Maine.