The employee shortage that is! We are embarking on what will be the largest shortage of skilled workers that this country has ever seen. Between now and 2020, the US will see a major decrease in the amount of skilled employees and experience more turnover than in any of the past generations.
This is being caused by some major factors:
- Retirement of the Baby boomers
- Less loyalty from Gen X and Gen Y workers
- More graduates lacking essential skills
What will this do to your business (besides cause perpetual turmoil)? It will greatly affect your bottom line. Unemployment costs (for those employees that were hired in haste and didn’t work out, or those that just couldn’t conform to the responsibilities of the job) can quickly escalate so that you are paying higher rates for ALL of your employees. Firing can also result in legal issues that can cost 5-6 times the amount of hiring costs.
If you experience high turnover, your current and potential employees may feel that your company is not a good one to work for, so retention and recruitment becomes more of a struggle.
The cost of having one less ‘ramped up’ staff member is costing you money. You may be paying for office space, phones, equipment, etc. that are not paying for themselves.
What can you do now to help make your company escape these issues? Plan for these issues. Review your hiring practices and ask current staff what they like and don’t like about your company. Probe on what is important to the workers of tomorrow and start strategizing how you can set your company up to attract and retain the workers that YOU want.
Work with a staffing specialist to make sure you have a strategy that will work and grow. Work on building a strong reputation as a ‘good place to work.’
Get used the idea that your staff may be with you for only a few years at the most. Put a training program in place so that you have other workers to step up and take over for those who depart. Keep a solid relationship with those that leave as you may have an opportunity to lure them back with even more skills than which they left with!
Face the facts – hiring and keeping staff IS changing. The rules of yesterday will not work. Be open, implement new practices and you will be the company that is staffed to perfection!
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