Perfect Labor Storm 2.0

Accounting and finance professionals still in short supply

Even though the economy is tanking and unemployment is rising, finding qualified accounting and finance professionals is more difficult for the second year in a row, according to a recent survey by Robert Half International.

Fifty six percent of finance and human resource managers surveyed reported shortages in those fields.
A greater number of those surveyed -- 73 percent versus 46 percent in 2007 -- said they're concerned about losing top performers to other opportunities.

More than 4,000 finance and human resources managers in 20 countries participated in the survey.
The survey also found that an average of three candidates are interviewed for these positions, compared to only two interviews per position last year.

The Dumbest Generation?

The generation that is most comfortable with digital technology, which gives them unprecedented access to all of the world's knowledge, knows less than the previous generation that lacked this advantage. In other words, the generations whose thumbs do most of their talking can't express themselves beyond the level of a text message. Could the vast majority of people under the age of 30 (Gen Y and the youngest Gen Xers) be so clueless?

Regrettably the answer is yes.  According to a recent Pew Research Center study, 74 percent of 18 to 29 year-olds did not know that Condolezza Rice was the U.S. Secretary of State.  Six times more of these young adults were more likely to identify the latest winner of American Idol than the Speaker of the House of Representatives.   Another 60 percent did not know the Civil War took place in the second half of the 19th century.

This is a generation who grew up reading blogs instead of books. They read updates about friends on MySpace instead of reading current events in newspapers.  They know more about World of Warcraft than they do about World War II.

The result is that just one-third of high school seniors graduated with the ability to read proficiently.  Just one-fourth could write a basic paragraph.

The problem is that many young adults are using technology to communicate rather than to learn.  In effect by using shorthand texting, they are reinforcing their own illiteracy every time they send and receive a text message. 

What's this mean for employers:

1. In a world of scarce talent, employers will need to transform themselves to make effective use of a generation that isn't ready to contribute to the traditional workplace.  As a result, companies will have to invest in training programs that offer a crash course in the basic skills these workers lack. These programs will need to be tailored so that they are relevant to the actual work the employee will perform.

2. The small percentage of well-educated, high achieving college students will have their choice of employers and competition for them will be fierce. While this isn't new news, what's different this time around is that the gap between the-best-and-the-brightest and the average graduate is much wider. Because the return on investment is so much greater for these star performers, employers can be certain that the competition for talent will only be getting more intense.

Source: Trends E-Magazine, July 2008

Read more about the Silent Epidemic of high school dropouts.
http://www.super-solutions.com/Highdropoutratesareasilentepidemic.asp

Free Generation IQ Quiz

With four generations co-mingling in the workplace, dozens of potential clashpoints exist. Myths and misplaced stereotypes abound. At times these multi-generational co-workers seem to be worlds apart in their attitudes and values. As a result, conflicts between the generations are distracting co-workers and diverting the attention of managers.  What is the truth about the generations? How accurate are your perceptions?

Success Performance Solutions just released its first Generation IQ Quiz.  It's free! It's easy. It's fast. Click here to take the Generation IQ Quiz...and watch for future announcements for more quizes to test your knowledge about the Generations, workforce trends, interview do's and don'ts, and more.

Enterprise of the Future

A new report just released by IBM titled Enterprise of the Future cites "in 2008 eight out of ten CEOs are expecting substantial or very substantial change."

This rising challenge may be difficult for companies to meet.  CEOs rate their ability to manage change 22 percent lower than their expected need for it – a change gap that has nearly tripled since 2006.  The number reporting limited or no success has risen by 60 percent.

CEOs are most concerned about the impact of external forces: market factors, people skills and technology.  CEOs rated insufficient talent as the top barrier to integration.  “We are making acquisitions for the people, not the assets,” says one CEO in the financial industry.

This is consistent with 2007 CEO Conference Board report that finding qualified managerial talent and top management succession ranked in the top 10 CEO challenges, right after execution.

The report states that "the successful organization sees change within the business as a permanent state.  The leader of the successful organization defines and manages change as robust programs." It highlighted a few differences between the top performing companies and those that fell short:

• Financial outperformers anticipate more change, and manage it better.
• Instead of merely responding to trends, outperformers shape and lead them.
• Outperformers surprise customers with innovations
• Outperformers disrupt the basis of competition.
• Outperformers go beyond philanthropy and compliance; they show a genuine concern in all actions and decisions.
• Outperformers connect everyone to the customer from the warehouse to the C-suite.
• Outperformers recognize the value of the information it collects and actively mines it for insights and fast feedback cycles.
• Outperformers create first-of-a-kind products, services and experiences that were never asked for – but are precisely what customers desire.

No clear answer for nuclear industry's succession plans

The utility industry is in crisis mode due to its rapidly aging workforce.  Utilities are trying to replace a workforce that could shrink by half through retirements over the next decade. 

The Nuclear Energy Institute did a survey of the nuclear workforce in 2007. The nuclear workforce age distribution has two peaks. The highest peak occurs for workers between the ages of 45 and 65. A smaller peak exists for workers between the ages of 20 and 32.  In between there is a valley of workers between the ages of 32 and 45, the prime ages for workers to move up into management roles.

What this means is that as the boomers retire and the Gen Xers move up the career ladder, the utility industry will hear a big sucking sound creating a huge void in the workforce. Between 2007 and 2012 about 35 percent or 19,600 current nuclear utility workers will be eligible to retire. Over the same five-year period it is projected that an additional 11 percent or 6,300 workers will leave the workforce due to attrition.

The unique demands of utility work, which include the basics of electronics, math, hydraulics, engineering, working outdoors in all kinds of weather, and climbing poles and towers (often exceeding 200 feet) presents a daunting challenge to even the most gifted recruiters. At risk, in addition to helping solve the world’s energy needs is security. The U.S. and other developed countries count on nuclear engineers in shaping the military have and defense structures contributions to national security.

The problem facing the utility and in particular the nuclear industry isn’t going away anytime soon. In fact efforts to recruit more young workers aren’t even a reasonable solution: not many universities in the world offer degree programs in nuclear engineering.   That makes this shortage much more threatening than what occurred with technology workers during the dot-com boom in the late 1990s. Back then, the shortage of computer science graduates was localized to the United States while India and China were pumping out computer scientists, feeding the world’s appetite. 

Today, the world’s educational and training institutions do not have the capacity or resources to keep up with the current demand much less projected future demand.  New degree programs will not be able to start up quickly because of a shortage of qualified faculty and the cost of the infrastructure required to start a program.

Brazil: Perfect Labor Storm strikes another emerging country

For almost any nation other than China or India, achieving more than 5 percent growth a year is hard. Doing it without skilled labor is even harder.

But that is the challenge facing Brazil, the B in the BRIC economies — Brazil, Russia, India and China — today’s version of economic tigers.

Brazil is projecting a period of sustained growth, with the gross domestic product increasing 5 percent a year, from now to 2010, and about 3 and 4 percent annually for the decade after. But many companies and economists, including some inside the government, say the dearth of highly skilled labor, particularly engineers and tradesmen, will jeopardize those goals, and Brazil’s economic and political rise.

The engineering shortage is spreading across industries. The lack of civil and construction engineers threatens infrastructure projects; areas like banking, aircraft manufacture, petrochemicals and metals are all competing for the same top graduates. In the booming oil and gas industries, companies are turning to foreign labor because there are not enough qualified Brazilians to go around.

A study by the National Confederation of Industry last September found that more than half the 1,715 industrial firms polled could not find the skilled workers they needed. Of those, 69 percent said the lack of a qualified work force resulted in inefficiency; 36 percent said it led to lower quality goods; and 25 percent said it made acquiring or assimilating new technologies more difficult.

Read more.

Employers Can't Ignore Workplace Bullies

It’s been over 30 years ago since I first stepped foot in an operating room. (Well, that’s not completely true.  It was just the first time I walked in wearing scrubs and not lying prone on a table being wheeled in!) What I witnessed that day always stuck in my mind. It wasn’t the surgical procedure that created this lasting impression but the attitude of the surgeon toward his residents and particularly the nurses.  And when I say attitude, I mean ATTITUDE. 

The scrub nurse was ridiculed, berated, defamed, and nearly injured as her quick reflexes saved her from being the bulls-eye for a flying forceps.  Over the course of the next few months, I saw this scene repeated time and time again. The only thing that changed was the surgeon who played the bully and the recipient of his/her tirades.

I later discovered that bullying was not an art practiced only by surgeons, nor were hospitals the exclusive stadium in which these events were staged.  Bullying in the workplace for many salespeople, managers and executives and even executive assistants became a sport with bragging rights going to the individual who put down and ran off the most employees.

Despite all the warnings and legal rhetoric (hostile work environment) to protect workers from bullying and jerk bosses, not much has improved in 30 years. In a recent survey, workers reported that in 62% of the cases employers worsened the problem or simply did nothing when made aware of bullying, despite losing an estimated 21-28 million workers as a direct result. There seems to be an ample supply of excuses to give the bully another chance especially if he/she is the surgeon bringing in millions of dollars to the hospital, the salesperson who accounts for 50 percent of company sales, or the executive whose company stock is reaching new highs every day.

The survey sponsored by Workplace Bullying Institute also revealed that Workplace Bullying is an Epidemic:

• 37% of American workers, an estimated 54 million people, have been bullied at work. It affects half (49%) of American workers, 71.5 million workers, when witnesses are included.

• 72% of bullies are bosses. 55% of those bullied are rank-and-file workers.

• Bullying is 4 times more prevalent than illegal forms of "harassment."

• For 45% of bullied targets, stress affects their health. 33% suffer for more than one year.

• Only 3% of bullied targets file lawsuits. 40% never complain.

• Targets have to stop the vast majority of bullying (77%) by losing their jobs despite being the ones harmed.

All that however may be about to change. In a ruling this past Spring, the Indiana Supreme Court ruled in favor of a hospital employee who sued a surgeon for emotional distress and assault based on his treatment of the person at work. That’s good news for the victims of bullying and an overdue wake-up call for employers of bullies. 

What implications does the Indiana ruling have for small-business owners nationwide?

It suggests that there could be a trend of these kinds of decisions and small business should adopt a policy on proper conduct in the workplace. Model policies are available online and even very small employers would benefit from adopting one. Click here to read more recommendations.

Related articles: Snakes in Suits: The High Cost of Workplace Jerks

Leaderships Lessons We Learned from Tim Russert

Within minutes after the unexpected death of Tim Russert was announced, the story took on a complete life of its own. While at first I admit I was just curious to find out what happened, I was soon humbled by the sudden outpouring of shock and the impact that Russert had on so many people.  Not since the passing of JFK, Martin Luther King, Bobby Kennedy, and Princess Diana do I recall seeing so many people stunned by a death.  Wherever I stopped over the weekend, people were staring at the television, glued to the radio, or talking with complete strangers about his death.  Why was the death of this journalist and host of Meet the Press so meaningful? We've lost celebrities in the past but the public response for them paled in comparison to what I saw and heard over this past weekend.  Why did the passing of this one man have such a profound effect on so many people?   

As I began to watch and listen to the stories about Russert be recounted during the day-long tributes and remembrances, I realized that Russert exemplified the virtues of a great leader. Nearly everyone, from politicians, colleagues, and even his competitors, lauded Russert's prowess as a journalist and as an interviewer. But these were just roles he filled. What is more important is that while he held no official leadership position other than Washington Bureau Chief for NBC, his life encapsulated the behavior that anyone who finds him- or herself in a leadership or management role must strive to emulate.

I must admit that I always enjoyed listening to Tim Russert but was not a loyal watcher of Meet the Press nor his other shows.  But when channel surfing, my fingers stopped clicking the channel changer if Tim was a guest or host.  I admired his quick wit, his humility, his curiosity, his persistence, his direct but fair questioning.

Despite his enormous success and recognition as one of the world's leading political analysts, Russert remained just a common guy.  He seemed like the kind of guy you'd trust with your darkest and deepest secret even if you only met him minutes ago. He seemed like the guy you'd strike up a conversation at the corner bar about what was happening in the neighborhood and just stay there talking for hours. 

Tim Russert never forgot where he came from.   He never forgot his roots coming from Buffalo, the son of a blue collar worker who worked two jobs for thirty years to support his family.  He had a humble beginning and remained humble right up until his untimely death.  He was not embarrassed by his father's occupation as a trash hauler. Instead he was so proud that he made him a national hero.

There is no greater legacy that Tim Russert leaves to both current and up and coming leaders than how critical humility is in becoming an effective leader.  Too often these days people start life on third base and then think they hit a triple. Russert never took his success for granted and always remained thankful to those who helped him become the person he became. Russert told Larry King the three lessons he taught his son, "you're always, always loved but you are never entitled."
Russert loved what he did and it always showed.  I thought it odd that in the days that followed his death, not a single picture was shown that didn't show him with that huge smile or devilish twinkle in his eyes ---or both.  And then I heard Tom Brokaw tell us why that was so: "it was tough to find a picture of my friend Tim when he wasn't smiling."

But the smiles weren't about him but the success of others.  In spite of the high, high standards Russert set for himself, success was never about him.  He enjoyed everyone's success even more than his own.

Story after story has came out from family, friends, interns to politicians about lives that Russert touched.  He was the ultimate mentor and cheerleader.  He had this missionary zeal for lifting people up, for wanting to make everyone around him better. This doesn't mean he ignored flaws in people but recognized them as human beings.  He once said that the "best exercise for the human heart is to pick someone up and hold them up."

His interviewing style was described as tough but fair, direct but never condescending, persistent but civilized. Russert was always challenging, but never hostile. He never intended to embarrass anyone but to understand what they were thinking. He set a high standard that others only wanted to emulate which elevated everyone's performance.

James Carville, Democratic strategist and good friend of Russert, was asked "if he [Russert] was really as good as he seemed?"  Carville replied, "he was better."

Eleanor Roosevelt once said about Franklin Roosevelt and Winston Churchill that "the best men always had a lot of the little boy in them." What made Russert great was that he never lost "the little boy" inside.  Despite meeting and interviewing Presidents, world leaders, and several Popes, he never lost his innocence.   Until his death he took the most complex and polarizing topic and spun it down to its simplest form.  He put "legal-eze" and political-speak in terms that even the most common man could understand. He didn't try to impress us, not even with designer suits that he could well afford. Tom Brokaw said, despite Tim's success, he still relied on his "three tailors - L., L. & Bean."

Driving Russert was a passion for the truth and integrity/ He was genuinely curious, always wondering what you were thinking and who you were.   He rarely fought for a cause other than plain old human decency. What you saw was what you got.

Russert was a superb role model.  His passion for life and for his work gushed from his heart.   He had this Walter Cronkite-type of integrity. He lived his life in a way that others only dream about living. He was passionately enthusiastic.  He wanted everyone to be an A player, not just himself.  He revered his father, his wife and his son. He believed in God, his country and fellow man.

What I learned over these past days from Tim Russert was what leadership is all about. I learned more about leadership from hearing and observing how he lived his life than I did from reading hundreds of leadership books, spending dozens of hours in workshops and class, and writing too many columns and term papers. 

The leadership lessons of Tim Russert are simple but so true:
1. Never forget where you came from.
2. Never forget who helped you get you where you are.
3. Always be tough but fair.
4. Never stop challenging others to seek the truth.
5. Prepare, prepare, prepare.
6. Help everyone become an A player.
7. Have fun doing whatever you do.
8. Do what you do with a missionary zeal.
9. Keep the little boy alive inside you.
10.Keep faith, families, and friends in the forefront.

Or to sum it up all up in Tim Russert's words: "Work hard, laugh often and keep your honor."

Pulbic schools "lose" 6,829 students every day

The world of work is a great place to be if you can’t stand the excitement!

I just completed reading through two new studies: 2008 World of Work and Diplomas Count 2008.  Like I’ve been touting for years, employers and employees will feel they are living through a Perfect Labor Storm. If figuring out where to find the right people with the right skills isn’t hard enough, getting older and younger employees to share what they know seems to be a real problem that is getting worse.

For instance, the 2008 World of Work report, published each year by Ranstad, found that employees and employers agree on at least one thing:  hiring the right people with the right skills is the most important workplace challenge. This contrasts with last year’s report when employees saw retaining and motivating employees as the number one issue.

But the report also redefined the message about worker shortages:  “we’re not facing a talent shortage. We’re facing a knowledge gap.”  After speaking with thousands of workers from all the generations, the study deduced that “cross generational interaction is rare.” In fact, the report states “the transfer of knowledge between retiring generations of veteran workers and newer entrants to the workforce is unlikely.”  It goes on to say that “each generation sees itself as bringing different strengths to the workplace that don’t enhance or expand the strengths of those older or younger.”

If these workplace challenges weren’t enough, wait until you read this.  According to study released by the EPE Research Center 1.23 million high school students will fail to graduate in 2008.  That’s 6,829 students every day leave U.S. Public High Schools. That amounts to 3 out of every 10 students who enter 9^th grade does NOT complete high school. As reported in earlier studies, that number gets even worse in certain areas where the graduation rate is less than 50%!!  Even in my home state of Pennsylvania, which has one of the highest graduation rates in the country, schools lose 170 students per day.

Based on just the information in these two reports alone, the war for qualified workers has only just begun.  From the graduation rates, it’s obvious that the pool of skilled workers will only shrink while the knowledge transfer gap between generations widens.

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?