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There is a Storm Brewing - A Labor Storm
by Robin Throckmorton, M.A., SPHR

How long will this storm last? Have you prepared? Do you have an umbrella? Are you ready to head for the basement when the sirens roar?

We never know how long or how intense a storm will be but generally have a little bit of warning. We may get caught once without an umbrella or ignore the sounds of the siren. But, after getting drenched or seeing the devastation of the storm, we will always be prepared and astutely respond to the siren warnings.

On that note, you should be hearing the sirens roar and the wind picking up as the labor storm is quickly approaching. You've read the articles and you've heard the statements from the futurists:

• According to a study done by AOL, 58% of 5,000 respondents said they may or definitely will start a job search if the economy improves.
  (The sky is becoming dark).
• A study by futurist Roger Herman showed that 30 - 40 % of the workers in most organizations have already checked out and are just waiting for this storm to arrive to jump ship.
  (The rain has started to trickle and the wind is picking up).
• According to the Bureau of Labor Statistics, by the year 2010, it is estimated that we will be short 10 million workers in the US alone.
  (The thunder is rumbling).

Is your organization prepared? Let me warn you, this labor storm is going to be like no other you have ever seen or even read about. And to ride out the storm, your organization needs to be grabbing umbrellas, filling the sandbags, and preparing because this storm is just on the horizon for many and already here for some metropolitan areas (i.e. East Coast US) and industries (i.e. healthcare).

To prepare for this storm we need to realize the workforce that we are going to be trying to attract and retain has changed a great deal during the past 3 - 4 years while the economy has been recessed. We won't be able to use our traditional strategies to recruit and keep our workforce, but rather we will need to incorporate the numerous changes our workforce has taken to successfully survive the storm.

Our last big labor storm was in the late 90's. You remember when unemployment dipped to 3.8% and we were paying ridiculous signing bonuses and doing all types of tricks to attract and retain workers. During this storm, we were only short 3 - 4 million workers but now we are going to be short 10 million. We made many mistakes during this storm including a great deal of hiring "any" warm body we could find. We will drown in this storm if we don't learn from these mistakes.

Some things we will need to consider as we develop our recruitment and retention plans for this labor storm include:

• The increase in worry people have to their personal safety as a result of the terrorist attacks including bombings and anthrax scares.
• The lack of job security many workers experienced the last 3 - 4 years leaving them with the impression that employers don't care.
• The fact that many organizations have had no compensation increases and in a number of cases decreases during the recession. Are your employees ready for a raise?
• The increase in the number of women entering and staying in the workforce.
• The demand by both men and women of all ages for more balance between work and life.
• Priority of loyalties has shifted to the family and community and put the company and supervisor at the bottom of the list.
• More individuals are deciding to employ themselves and more employers are going after a contingent workforce rather than a permanent one to avoid future reductions.
• There are now four generations in the workforce with very different wants and needs from employers that will impact how you recruit and retain them.
• More workers are delaying retirement for financial and personal reasons creating a larger older workforce that we are not use to attracting and retaining.
• To top this all off, technology has and continues to evolve at a pace that many organizations can hardly maintain. As a result, we are creating entirely new skill sets that we need in our organizations that our current and future staff may not have.

1. Ask employees for input and involvement in creating your plan. For example, why do they stay with your organization? What would make your organization more appealing to others?
2. Conduct a demographic evaluation of your workforce and pay particular attention to how your workforce breaks down by ages. Do you have a large group of retiring workers? Is there a great deal of disparity between the ages?
3. What can you do to attract and retain the retiring / retired workforce?
4. Analyze the operations of your organization and determine ways to improve the productivity of the organization to minimize the amount of additional staff that will need to be added.
5. Conduct a manpower assessment to determine what staff you have, what competencies they possess, and what competencies and skills do you need for the near and distant future. What will you do to attract and retain those skills?
6. Conduct an analysis of your turnover. What is it? Why is it happening? Who is leaving? Are you losing you're A players but retaining your C players?
7. What can you do to improve communications and ensure you have constant two-way communications between staff and management at all times?
8. How can you reward and recognize you're A and B players to improve retention and motivate the C players for improved performance?
9. Do your supervisors have the right skills, knowledge, and attitude to manage this new workforce? What can you do to identify who does and who doesn't and help them demonstrate it in the workplace?

Again, the sirens are roaring and the signs are evident. Be sure your organization is taking the necessary steps to prepare for the upcoming labor storm.

If you have questions or comments on this article, I'd love to hear from you! You can contact me at Robin@StrategicHRinc.com. Also, feel free to visit our websites at Strategic Human Resources, Inc. and e-HResources.com for more resources and information.

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