A new year is always regarded as an opportunity to do things better and to evolve. 2016 could also be an ideal year for the growth of our company, if we manage to properly tackle the challenges in store.
Before we start talking about next year's specifics though, let's review the general context our world is currently facing1:
A new talent crisis will emerge, due to aging population and outdated educational standards
Until 2020 more people will retire than those who will start working
Europe will need 45 million more workers by 2030 than in 2010, in order to maintain its economic growth; while the United States of America will need 25 million more
Despite the fact at there is still time until then and we may feel that the situation is not at bleak, the truth of the matter is that the first signs of this crisis are beginning to show. Already several sectors of the workforce market in Romania are beginning to show a dire need of adequate candidates to fill in open roles, which recruiters are having a hard time finding.
Only by becoming informed and by starting to act now can we avert sinking deeper into this crisis. Let's begin to analyze the dangers of 2016, and try to come up with solutions for avoiding them.
Up to this point, the workforce market was typically made up of Traditionalists (those born before 1945), Baby Boomers (1945-1964), the X Generation (1964-1980), the Millennials, or the Y Generation (1980-1994). 2016 will bring several new elements into the equation. The first one is that a new generation will hit the workforce market - Generation Z. This generation is made up of individuals born between 1995 and 2010, and revolves around several traits2 such as an increased entrepreneurship sense, increased loyalty, better flexibility, and are more realistic when setting career goals compared to the Y Generation. Almost a third of them aim to become managers in the next 5 years, and 45% of them claim that it will be a challenge to work with the ones from the Baby Boomer generation.
What can we do in this context? Well, first we must understand that this generation is more prone to picking personal development opportunities and a job that offers a better balance between work and life, than a higher salary paying job. Knowing this, we will be able to better position ourselves on the job market as a company, and we will know how to approach these new managers or colleagues.
About 3.6 million Baby Boomers will retire next year3, leaving behind a significant leadership gap. About a quarter of the millennials will become managers. However, while capable, these individuals still lack the technical expertise and influence of the previous generation.
To mend this, we need to focus our attention towards our current employees, offer constructive feedback as much as possible instead of an annual review, invest in a transition plan, and invest in technical trainings and on-line courses.
A boomerang employe is one who leaves a company, only to come back later attracted by the prospect of bonuses, opportunities or familiar surroundings. Because of the current talent crisis, more and more companies are inclined to use this solution in order to cover the company's needs. The benefits of this compromise include: less training required, since the employee is mostly familiar with the work, a better familiarization with the company and its work environment, and the added benefit of a fresh employee perspective, gained from his or her time spent outside the company.
The challenge here is to find strategies for a smooth reintegration of the employee in the company, and on client projects.
We live in a dynamic era and 2016 will only add new challenges. Are we ready to face them? Now that we have a general overview on things, will we, as employers and employees, act in order to benefit, or at least not suffer, from these challenges? If the answer is yes, what will we do specifically? It all depends on us!
Source: Oxford Economics, Workforce 2020: The Looming Talent Crisis ↩
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