As worldwide economic and political conditions continue to concern business leaders, their attention turns to the various levers that can foster success in uncertain times. Employee salaries make up close to half of many organizations’ operating expenses and can be even higher in some industries such as financial services, so the contribution of the workforce to organization success is perhaps the most important lever to competitive advantage. In fact, the challenge of containing costs while developing a high-performing workforce is a primary challenge facing most companies today. But, do organizations know enough about their workforce to optimize the workforce lever?
We all know the US workforce is aging, with the number of people 55 and older holding jobs hitting a record 28 million in 2010. At the same time, the portion of people ages 16-24 in the labor market was at the lowest level since the government began tracking in 1948, falling from 66% in 2000 to 55%, just 17 million of the overall employment base1. Leaving aside the obvious issue of where we get replacement workers for the retiring workforce, these two employee cohorts are quite different. The ways organizations will hire and retain these workers going forward must be different as well. Retaining older workers requires retention programs that include part-time or project-based work. Hiring Gen-Xers and Gen-Yers requires new approaches and retention programs that must provide them with career development and choices about where, when, and even how long to work each day. The older cohort is not yet as enamored with emerging social technologies that are becoming the primary means of communication and collaboration for the younger workforce. The older cohort has a wealth of priceless intellectual capital that organizations cannot afford to lose. The younger group offers innovative and creative ideas that are essential to navigate today’s technologies and economic challenges and we must understand how best to tap their contributions. But, do organizations even know, at a glance, how their workforce is comprised?
