Shifting Nature of Today's Workforce

Today, more than ever, there are several forces at work that are changing the composition of the labour market and the very nature of how HR managers staff their organisations. Job life cycles have shortened dramatically in the last decade and gone are the days of retiring from one company with 35 or more years. Research indicates that people are routinely changing jobs as frequently as 13 or even 15 times in the course of their working life.

Some forces are taking shape by choice, while others are a natural occurrence. One of the most significant changes is that the labour force is becoming increasingly comprised of workers with a free agent mindset. A recent study of American workers points to a developing trend in which traditional employment – defined as being directly employed by a company or firm – appears to be increasingly sharing the workplace spotlight with the flexibility, personal convenience and personal satisfaction offered by free agent and entrepreneurial lifestyles. These free agents are temporary or contract employees, freelancers and independent consultants who span all professions, age groups, income and education.

Free agents now account for 22% of the total US workforce, a share likely to rise to 40% by 2014. “The combination of several workplace trends – including shortened job cycles, the increase of project work, the acceptance of a new lifestyle and the emergence of the Internet and other technology – points to the free agent movement becoming much more prevalent and more of an employment norm in the coming years,” notes Teresa Carroll, Vice President, Product Management/Recruiting and Retention at Kelly Services. “This trend will have profound consequences for how businesses will need to recruit and retain talent in the next few years,” says Carroll.

Another labour trend companies need to take into consideration is the impending retirement of the Baby Boomers, in which the economy is facing a 40% drop in the growth of its prime working population. The loss of their skills is compounded by college enrollment running basically flat – no new influx of critical skills. There is a critical need to retain these mature workers now to help close the upcoming skills shortage. When these factors are coupled with the intensity of the growing global business world, you’ve got forces that could send the average HR professional into orbit trying to find staffing solutions. The good news is you don’t have to go quite that far. But you may have to go farther than you’ve gone before.

It’s clear with these kinds of employment dynamics, workers will be demanding more from their employers and asking “What can your company do for me?” and “Why should I choose to work for you or continue to work for you?” “Companies should be aware that employees are increasingly moving into the driver’s seat and taking greater control for managing their own career paths,” says Carroll. Employers need to be prepared for this challenge. Nearly 40% of US workers say they are likely to look for a new job in the next 12 months. Are you prepared to retain your top employees and also attract new qualified employees?

Carroll shares some tips below that can help companies maintain a high retention rate and recruit qualified candidates.

• Make opportunities available within the company for career progression. Employees like to know that they have room for career movement.
  
• Provide the opportunity for career and personal growth through training and education, challenging assignments, and more.
  
• Enable employees to balance work and life. Allow flexible starting times, core business hours and flexible ending times.
  
• Offer performance feedback and praise good efforts and results.
  
• Recognise excellent performance, and especially, link pay to performance.
  
• Involve employees in decisions that affect their jobs and the overall direction of the company whenever possible.
  
• Communicate goals, roles and responsibilities so employees know what is expected and feel like part of the team.
  
• Offer department interaction for employees to share their knowledge via training sessions, presentations, mentoring others and team assignments.
  
• Employees want to enjoy their work. Make work fun. Engage and employ the special talents of each individual.
  
• Nurture and celebrate organisation traditions. Run a food collection drive every November. Pick a monthly charity to help. Have an annual company get-together.
  
• Demonstrate respect for employees at all times. Really listen to them; use their ideas.
  
• Staff adequately so overtime is minimised for those who don't want it and employees don't wear themselves out.
  
• Offer an attractive, competitive, benefits package.
  
• Use screening and testing assessments to help select the most qualified employees. This will focus the search to those that specifically meet the required qualifications.
  

Adapted from GL Now