Planning for Tomorrow's Talent

By Kevie Mikus, vice president client services, The HR Group

In just two short years, companies can expect to face a critical shortage of their most vital resource -- employees. Workforce projections indicate that by 2010, there will be 10 million more jobs than qualified workers. Potentially, there will be only two employees to replace every retiree, as opposed to four replacement employees in previous generations. Some have called this impending talent shortage the "2010 crisis."

Too few companies are prepared for this reality. As with all looming crises, companies that take steps early to manage the situation will be ahead of their competition in the future.

The Problem
As the first Baby Boomers near retirement, there are fewer competent young professionals entering the workforce to replace them. Companies will face increasingly fierce competition for talent from a shrinking pool of skilled, educated workers.

Companies that proactively include human resource initiatives in their strategic planning will be better positioned to compete for talent as the market tightens. There are several recommended strategies companies can employ immediately to avoid a workforce shortage crisis in 2010 and beyond, ranging from developing the skills of younger employees to prolonging the careers of older ones.

Succession Planning
With the impending talent shortages, companies should consider adding more levels to their succession planning process to include employees in middle management and non-management positions.

A first step in succession planning is to inventory current talent and define the future needs of the company. To do this, organizational leaders will need to thoughtfully determine what kind of talent they will need in the next five to 10 years and then look at how current employees can develop and progress to meet these needs. This planning is a critical process that needs continuous consideration.

Preserving Institutional Knowledge
As Baby Boomers begin to retire, companies must ensure that their knowledge does not walk out the door with them. Establishing mentoring relationships between young up-and-coming professionals and soon-to-be retirees is a great way to pass along internal best practices and preserve intellectual capital. Knowledge-management programs can heighten efficiency as newer workers benefit from transferable knowledge, which helps them avoid repeating mistakes or reinventing the wheel.

Motivating and Rewarding Four Generations of Workers
For the first time in history, companies are managing a workforce comprised of four generations of workers, each with a unique set of characteristics, skills and needs. Employers need to be much more creative when developing strategies to recruit, retain, motivate and reward this increasingly diverse workforce.

Companies can take advantage of Baby Boomer sustainability by developing more flexible compensation and work arrangements. A recent AARP survey found that 79 percent of Baby Boomers plan to work in some capacity during their retirement years. Boomers are healthier than previous generations and able to work past age 65. If offered the right benefits and working arrangements, they may be more willing to stay with a company long past the traditional retirement age.

Conclusion
It is easy for companies to put off these measures in favor of focusing on more immediate needs. However, keep in mind that organizations that take positive steps now will have a competitive advantage in the future. Those who anticipate the impending talent crisis by taking steps to acquire the right talent today, develop current talent and retain a diverse workforce comprised of a wide range of valuable skills sets will do more than simply avoid a crisis. They will ensure stability and continued success.