Currently, “baby boomers” make up
one-third of the work force. Assuming
most of them retire at age 65, the first set of boomers will reach this milestone in
2010. Moreover, if the U.S. economy continues to grow at a 3 percent rate per year,
which has been the average since the late
1940s, the work force will need to increase
by 58 million over the next 30 years to maintain the same level of productivity. If the
present population trend continues, the
number of workers will increase by only 23
million. That leaves a shortage of 35 million
workers. Employers have to take steps now
to be able to compete with other companies
for the talent that will be available in the
years ahead. It’s time to shift the perception
and think of ways to attract and retain the
coming generations.
Smart Business spoke with Mimi Braziel,
vice president, accounting division, Delta
Dallas to learn how to do this.
How do companies safeguard themselves
from this shortage?
One way is to pay higher salaries, including bonus incentives. As with any aspect of
business, employers get what they pay for.
A second way is to assess the organization’s demographics and plan accordingly.
Assess how many employees will reach
retirement age in the next 10 years.
Once this information is obtained, it is
important to discuss the plan one to two
years before they intend to leave. Pair the
‘boomer’ with a junior person to mentor so
his or her legacy is passed down prior to
his or her departure. Boomers have been
around for a while, and their knowledge
and wisdom must be captured. At times, it
may be possible to retain the boomer on a
consulting or a part-time/flexible basis.
Finally, look into outsourcing parts of the
business to save costs and implementing
systems that will streamline processes to
run more efficiently and effectively with
fewer employees. Constantly re-evaluate
the organization and adapt as needed.
What are the primary differences between baby boomers, Generation X and Generation Y?
Baby boomers did not go through the
Depression, as their parents did. So, saving
for a rainy day isn’t the norm for them.
They have grown accustomed to a certain
standard of living, and many of them will
admit they have learned to live beyond
their means. So assuming a large portion of
them will need to work past retirement
because of this, the consensus is also that
they will not want to work a full load.
Flexibility will be the key with them.
Generation X trusts themselves more than
institutions of any kind, and they recognize
results versus tenure. They have to be managed accordingly rather than changed.
Regarding Generation Y, employers may
have to learn to deal with pink and blue
hair, tattoos and a few piercings, worry less
about rules, and place their focus on the
quality of the work performed, rather than
employees’ characteristics.
How can recruiting firms help in this
process?
As the market continues to tighten, it is in
employers’ best interests to partner with
recruiters when they need to hire talent.
Recruiters keep up with market trends, so
they can be valuable sources of information, especially when it comes to questions
regarding market salary ranges. Those
recruiting firms that have some tenure in
their recruiting staff have an incredible network of candidates from which to select.
Effective recruiters have great relationships with companies. They are best suited
to match talent to cultures and opportunities that are in line with employers’ core
values and desires and to advise them on
how to maintain a flexible environment for
employees.
What advantage does a company gain by
being flexible?
Start with the premise that if employees
are dependable and honest, they will do
what is in the best interest of themselves
and the company. Establish a friendly
working environment that promotes a
work-life balance. For example, establish a
vacation policy that allows people to take
off as much time as they need for vacation
and personal matters as long as deadlines
are met and their work is quality. Expand
the fringe benefits program to include non-monetary, morale-building activities. Offer
health club memberships, themed ‘happy
hours’ on selected workdays, or cater
breakfast and/or lunch at least occasionally, whatever works well for employee
morale. Perks like those mentioned above
present a ‘win-win’ for employees and
employers. They keep employees working
in the office during the workday, but they
also get their work done and get out on
time. More importantly, from an employer’s perspective, expanded fringe benefits
help attract and retain the best qualified
people.
MIMI BRAZIEL is vice president, accounting division with Delta
Dallas. Reach her at (972) 788-2300 or
[email protected].