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THE GLOBAL LABOR CRISIS
There are no quick and simple fixes to the labor shortage.
WILL ECONOMY KEEP GROWING
How will the economy effect employment in 1999?
THE LOST ART OF PLANNING
If managers can't forecast their staffing needs, what are recruiters expected to do?
THE RECIPE FOR RETENTION
Six key ingredients to a successful retention program.
Recruiters' Update is a monthly
newsletter published for
the general information of clients and friends of Cluff & Associates.
Monthly subscriptions are available for advanced copies at $78 per year.
Comments and suggestions are always welcome via email to:
info@cluffassociates.com. -- ©1999, Cluff & Associates
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While most of us are struggling to meet the demands of our employers for high
tech workers, the rest of the world commiserates. There is both truth and
pain in the statement, "It is going to get worse before it gets better."
According to the Information Technology Association of America, approximately
10 percent, or nearly 346,000, of all positions for programmers, systems analysts
and computer engineers in the U.S. are vacant. The Y2K problem, business startups,
and rapid technology advances have far outpaced the supply of new high tech
workers.
Before we get too excited about the possibilities of importing workers or
exporting work to other countries, we must take into account these other facts.
In Europe, 510,000 I. T. jobs are vacant currently, and according to the International
Data Corporation, that number will more than double by 2002. Why? For all
of the same reasons we are experiencing as well the conversion to the new
EMU, European Monetary Unit. And, in Australia, there is a shortfall of approximately
25,000 I. T. workers.
There are no quick and simple fixes to this labor shortage. The reality for
most of us, whether in the U.S. or other parts of the world, is that we must
reinvest in retraining our existing workers and provide education to potential
new workers. This, of course, has a price which, until now, many employers
wanted someone else to pay. But today, it is once again considered to be a
cost of doing business.
Many well known corporations have launched training programs and in-house
universities to help upgrade the skills of existing workers and retool surplus
non-technical workers with technical skill sets.
The labor shortage, however, can be overcome by a greater long term investment
in education targeting earlier age groups, perhaps as low as the grade school
level. Developing the skill sets, interest and awareness of high tech careers
will not happen if educators alone are held responsible. Businesses must become
involved in the classroom, in the development of curricula, and as mentors
of young people who could become the I. T. workers of tomorrow.
To become part of the solution, there are many things you or your organization
can do. Here are a few ideas to help you get started:
- Apprenticeship programs
- Cooperative education programs
- Internships
- School / Business partnerships
- Shadow programs
- High tech science fairs and competitions
- Mentoring programs
- Speakers in the classroom
- Case studies for high schools
- Research projects
We are rapidly recognizing that we cannot continue to steal each others workers
to solve our own staffing problems. Such short term solutions usually have
larger, long term consequences. "Pay me now, or pay me more later," certainly
applies here.
The wonderfully robust economy that has been steam rolling along for the last
seven and a half years has buoyed our confidence as consumers and is almost
too good to be true. Many of us who have been through other cycles of the
economy are wondering when it will end. Will it happen in 1999?
Throughout 1998, job growth in most sectors of the economy was strong enough
to offset the downsizing activities that set another annual record without
a great deal of hoopla. Fortunately, the 40 percent of displaced workers were
able to find new work in about 5 weeks and more than 60 percent within 14
weeks.
The primary concern for the economy is the fact that revenues are falling
behind the total costs of providing wages, salaries and benefits to employees.
Historically, companies have resorted to downsizing to restore profitability.
This may become more of a reality in 1999.
The workers who often suffer the most from downsizing efforts are those over
45. Workers under age 45 who were displaced in 1997-98 averaged a 2 percent
increase in wages upon reentry into the work force. On the other hand, workers
in the over 45 category suffered an average of a 10 percent decrease in real
earnings.
Predictions for the first half of 1999 call for continued strength in I. T.,
Telecom. Business Services and Construction, while other sectors slow or fall
back.
The Information Age brought with it a need for speed, world-wide access and,
unfortunately, just-in-time staffing. The job of the recruiter became more
difficult, adding accurate prognostication to the list of necessary skill
sets.
Daniel Webster says< "A plan by definition is ever subject to change." Perhaps
that's why managers don't bother to do it anymore. Once you do it, it changes!
So, what's the point?
The point, of course, is that we are not able to recruit several appropriately
qualified people without some kind of advanced notice. The average time to
fill most jobs is now 52 days. Why then do managers expect us to do it in
7 days or less? The answer is all too simple. Nobody ever told them what to
realistically expect.
Today, with so much emphasis upon the financial results of the last 30 days,
there is little wonder that managers are not looking far ahead. Their staffing
plan might include some new skill sets if they expect to win new business.
But how often do we as recruiters hear about these possibilities unless and
until they become urgent realities?
We cannot fault managers for not anticipating most of their voluntary quits
which lead to immediate replacement needs. But they are culpable if they haven't
done any succession planning.
We can help fill the planning gap with our client managers by becoming a part
of their work teams. We must find ways to get invited to staff meetings, proposal
sessions, and other department planning meetings so we can make appropriate
inquiries about the staffing implications of their day-to-day decision-making.
>BR> Our reputations as recruiters are often only as good as our last fills.
We can enhance our reputation and credibility with our clients if we educate
them about the realities of the competitive job market, and help them avoid
the costly, time-consuming, stressful problems of staffing critical positions
in their organizations.
The business world is calling us to become partners in staffing planning,
rather than whining victims due to the lack of it.
Keeping your employees these days is almost as difficult as finding them.
Here;s the secret recipe for retaining the talent that you have.
Talk to them often.
Let your people know where they fit in, how valued their personal contributions
are, and what is expected of them. Do this as often as possible - - daily
is great, weekly is acceptable, monthly is too little, yearly is too late.
Compensate competitively.
Stay abreast of your competition, their pay scales, their benefits, and new,
emerging trends.
Reward results, not tenure.
Recognize people for what they do, not for their longevity. Give special awards
for special contributions when they happen, not at the end of the year.
Offer T-L-C (Training, learning and career coaching)
Workers get bored when they stop learning. Invest in all of your resources
you wish to retain and you will reap the return.
Reveal growth opportunities.
Workers lose interest whenever they feel stymied in their careers. Show them
what jobs they can aspire to and how to prepare themselves.
Identify your stars and worship them.
If it seems you are always loosing the wrong people, perhaps you have forgotten
to let your keepers know just how important they are to the organization.
Wine, dine, recognize and reward them in every way you can.