Demographic shifts

The recession may have overshadowed the war for talent, but the battle is still on.

While it may not be apparent at this moment of high worldwide unemployment, the next decade will continue to be distinguished by a pitched battle for good people. In spite of dire warnings by economists for several years, only 1% of North American organizations report they are prepared for this challenge. So just at a time when highly skilled workers will be needed the most, the talent pool will be at its lowest — placing organizations at risk for reduced innovation, reduced productivity, reduced market share and reduced growth.

Case in point: right now in the United States, despite 14.9 million unemployed workers, there are still approximately 2.5 million jobs for which employers are actively recruiting, but have been unable to fill. This skills gap — the gap between job-seeking workers and jobs that go unfilled — is only going to widen over the next decade, despite a re-energized economy.

For the last decade business leaders have been warned about the imminent departure of the Baby Boomers (those born between 1947 and 1964) from the workforce. But this issue seemed to disappear during the economic meltdown as Boomer retirement investments tanked and many shelved plans for early retirement. Now, as the economy picks up speed, so will the rate of retirements.

This enormous generation peaked in 1959, so the real crisis will be felt over the next 10 years when literally millions of highly skilled, highly experienced workers — many of them in senior, and/or critical positions — leave the North American workforce. The Conference Board of Canada predicts a shortage of one million skilled workers by 2020.

Over the next decade in the US, the rate of Boomer retirements will be one every eight seconds! (American Association of Retired Persons, AARP)

And, as we know, those workers in their late 30s and 40s — Generation X — who should be stepping into the vacancies left by departing Boomers, are a small demographic. Right behind Gen Xers are the children of the Boomers — Generation Y. While this is an enormous demographic, they are just beginning their careers and it will be years before they have accumulated the necessary experience and wisdom or risen through the ranks of the corporate world. It’s simple math. There are just not enough qualified people available to fill senior and/or experienced shoes.

But Boomers aren’t the only ones leaving. Now that the recession is over, younger employees will also be looking to greener pastures. According to a July 2009 Deloitte survey, about one in five surveyed Generation X employees (22%) have been actively job hunting over the last year and only 37% plan to remain with their current employers. Members of Generation Y also have their sights set on better opportunities, with less than half of those surveyed (44%) reporting they plan to stick with their jobs.

During times of downsizings, cutbacks and closures, highly skilled workers with good jobs tolerated 24/7 workweeks and work overload. But according to Deloitte’s 2010 global survey with more than 22,000 recession-weary workers, there is a new deal afoot now that the implied “work hard and we’ll take care of you” contract has been dissolved. Those same workers who’ve been feeling overworked and undercompensated will walk — usually to a competitor.

What organizations can do to retain top performers

To prevent the bleeding of top performers, Deloitte’s Global Workforce study recommends that employers seize the opportunity to forge a new deal that responds to the employee value proposition that workers say connects most with them postrecession—favourable pay, flexibility in work arrangements, and support.

The talent market has changed significantly since the end of the last recession in 2001-2002 and now demands new approaches and focus. Has the great recession changed the talent game? Deloitte. April 2010

To attract and retain the best and the brightest, organizations should:

Assess their cultures and contribute to their strength — by asking employees what matters to them.

Develop corporate strategies that are congruent with a strong and clear vision.

Demonstrate to employees how their work connects into the big picture.

Offer outstanding compensation and benefits, flexible working arrangements.

Train managers to be excellent people managers.

Take from: WORKFORCE RISKS, Part ONE of a three-part series. Sponsored by: Ceridian Canada, 2010. Pg 4-6

Beat performance (review) anxiety

New managers need to thoroughly prepare and show respect for employees

BY CAITLIN CRAWSHAW, FREELANCESEPTEMBER 24, 2009

It's that time of year again -- but this time, you won't be the nervous employee sweating bullets and chewing his nails in the boss's office.

Nope, it's even worse. As a new manager, you'll be on the other side of the table, assessing each and every one of the employees you oversee. It's a new responsibility that may be keeping you up nights, anticipating hostile reactions from defensive staffers who, in some cases, may once have been your peers.

There's a simple reason that new managers dread this process, says Angela Merriott, human resources leader at Edmonton firm Shaw Pipe Protection.

"People struggle with taking constructive criticism, which is where I think the root (of this anxiety) comes from," she says. "When you struggle with taking it, it's really hard to give it to someone else."

This discomfort causes many new managers to skip the tough conversation in favour of a watered-down, friendlier version, says Merriott. "It's easier for people to say, 'Hey, you did a great job!' whether it's based in reality or not."

But even the best worker has something they need to improve on and that's the entire point of a performance review -- to address weak spots and create a plan for professional growth. It's good for the team, the company and even the employee, who need to know what's expected of them and how they can succeed.

A successful performance review starts with good preparation. You, as the manager, need to thoughtfully assess the employee's strengths and weaknesses. Many companies have employees fill out their performance appraisals ahead of time and present them to the manager a week before their meeting.

It's a good practice that allows the manager to identify gaps in communication and involves the employee in the process, she says.

Andreas Hesse, an HR consultant based in Vancouver, says it's crucial that performance reviews be treated as a two-sided conversation.

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"There shouldn't be a drastic change in tone from how you've been interacting with your employee to now," says Hesse, adding that this will only create stress on both sides.

At the meeting, managers should allow employees to talk about their own performance, set goals for the year and help decide professional development plans.

It's also a great opportunity to get an insider's view on what the company could be doing better. "Often managers only ask at an exit interview, when the employee already has one foot out of the door. But, if you're having these conversations regularly, the employees and manager can make improvements."

Treating this conversation as a "two-way street" makes employees feel respected and can help a new manager earn respect, in turn.

"That really improves the working relationship between a manager and staff," he says.

While these strategies can help the conversation go smoothly, there's always a chance an employee will become emotional if they hear something they don't like. When this happens, the best course of action isn't to ignore the reaction, but to talk about it, says Hesse.

"It's important to understand the reason for the emotional outburst, to deal with it and acknowledge it ... and bring it back to the manager's agenda," he says.

If this doesn't work, plan to finish the meeting after the employee has had a chance to cool down. Make sure that you follow up with the employee the next day to see how they're doing. If you don't deal with it, they may start gossiping with their colleagues about the experience, which can create anxiety among those who haven't had their performance review yet, says Merriott.

Both experts agree that conducting a performance review is easier when the manager has given feedback throughout the year -- both informally and formally. In fact, many companies now provide more than one performance appraisal during the year, Merriott says. "Companies are going towards a formal twice-a-year process and having informal discussions on a monthly basis."

She adds that this is a great way to retain "A-people" who may leave a company if they aren't getting consistent feedback. It also makes performance evaluations less stressful for both employees and managers.

"If you're consistently providing feedback, correcting behaviours when you see them and providing positive feedback when there's change, there shouldn't be nerves going into (a performance appraisal)."

Souce: http://www.timescolonist.com/business/Beat+performance+review+anxiety/1356773/story.html

Monetary gain and high-risk tactics stimulate activity in the brain

Milan, Italy, 17 November 2009 - Monetary gain stimulates activity in the brain. Even the mere possibility of receiving a reward is known to activate an area of the brain called the striatum. A team of Japanese researchers report in the January 2010 issue of Cortex, published by Elsevier, the results of a study in which they measured striatum activation in volunteers performing a monetary task and found high-risk/high-gain options to cause higher levels of activation than more conservative options. They also found levels of activation to increase with the amount of money owned.

Dr. Tadashi Ino and colleagues, from the Department of Neurology at the Rakuwakai-Otowa Hospital and the Research Center for Nano Medical Engineering at Kyoto University, used functional magnetic resonance imaging (fMRI) to study hemodynamic changes in the brains of 17 healthy volunteers performing a monetary task. The volunteers were given an initial stock of money and then required repetitively to press one of two buttons, which resulted in either an increase or decrease of the money stock, depending on whether their choice agreed or disagreed with a number that appeared randomly after the button had been pressed. One button was a low-risk option and the other involved high-risk, so that more money was gained or lost when choosing the high-risk option. The volunteers were also able to keep track of the total money stock throughout the task.

They found higher levels of activation in volunteers when choosing high-risk/high-gain options, compared to low-risk/low-gain, and when gaining money, compared to losing money. It did not matter how much money was gained, since small gains stimulated the volunteers’ striatum as much as large gains. They also found that overall striatum activity increased with the total amount of money in stock.

According to the authors, these results show that “risky tactics and pleasure of monetary gain are correlated with activation of the striatum” and that this finding demonstrates “the concept of the striatum as a major reward-related brain structure”.

Source: http://www.elsevier.com/wps/find/authored_newsitem.cws_home/companynews05_01363