Monday, January 19, 2009
By Gary Forger, Senior Vice President of Professional Development
Material Handling Industry of America
In all likelihood, you’ve heard some rumblings about how much the workforce is changing in ways that have nothing to do with the current economic downturn. And when you start to delve into the facts and figures, it immediately becomes clear that this change is profound in so many ways. And there is no one who will go unaffected by it.
At first, it’s the numbers that get your attention
• Between now and 2015, the population of people 65 and older will in - crease by more than 20%
• Meanwhile, 40 to 54 year olds will shrink by 5% as
• People 25 to 39 years old will grow by 6%.
Then somebody brings up skill sets:
• For Boomers (born 1945 to 1964), half of their knowledge/skill sets have traditionally become obsolete in 12-15 years.
• For Busters (born 1965 to 1984), half of their knowledge/skill sets become obsolete in 30 to 36 months.
• It is estimated that 39% of the current workforce and 26% of new hires will have basic skill deficiencies.
Take the two of those together, and the workforce of the future is not only going to be younger but learning new skills far more frequently than ever before. A bit daunting, some will say. But that doesn’t even take into account the generational differences.
• For Boomers, “live to work” and a will- ingness to go the extra mile sharply contrasts with
• Busters and their “work to live” orien- tation, little loyalty to employers and their reputation as the highest mainte- nance generation ever.
“How the heck did this happen, and why didn’t anyone tell us about it,” asked Kevin Smith, senior vice president of supply chain and logistics for CVS, in a CSCMP talk recently. His answer – “it snuck up on us.” As he pointed out, evolutionary change is not always apparent.
So the $64,000 question (this is obviously being written by a boomer) is: what are you going to do about this. Or better yet, what can you do about this? Good question, and one with layers of answers.
In Smith’s view, recognizing the issue gets you halfway to the solution. Then you can break it down into the various segments and consider their distinguishing characteristics.
For instance, hot buttons for young workers are instant rewards and time off, according to the publication “Workforce Crisis.” Meanwhile, people at mid-career are especially interested in healthcare as well as financial management and wealth accumulation tools. And mature workers want affordable, age relevant healthcare, insurance benefits and time to pursue personal interests.
In addition, there are opportunities to use the differences in age to develop new skill sets for all involved. For instance, younger workers can train older workers in the use of information technologies. Meanwhile, older workers can offer their work knowledge and experience to those newer to the workforce.
Material handling technology also has a place in this discussion at warehouses, distribution centers, and manufacturing locations. As Smith points out, CVS has turned to automation and advanced information technologies as well as ergonomic equipment to accommodate older workers. The end result, he says, is process change and new flexibility across the board.
But all of that is for people already on the job. There is also the issue of recruitment. Smith recommends looking in places that you might not have in the past. He suggests various civic organizations of both broad appeal and more specific focus, Hispanic women reentering the workforce, for example.
Bringing in multi-cultural and multi-lingual workers who were not previously part of your workforce will require additional effort to meet their specific needs and expectations. But once you have established a process for dealing with these issues due to generational differences, this will not be the obstacle it may initially appear to be.
Following recruitment, there is also the issue of retention. That goes directly to understanding the work/life balance for the various groups, not to mention the individuals themselves. Beyond basic pay, there are issues of advancement, employee satisfaction, and responsibilities, to name three.
In the end, the workforce of the future is all about opportunity. But it is opportunity in what might be unexpected places. As Smith said, we all need to exhibit flexibility to preserve productivity and performance in the workplace. It is our future.
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