More Power to the workers

I was introduced to some research that was published through the Society for Human Resource management that should provide perhaps some good news for those of us who are actively working and wish our contributions were recognized and rewarded in a manner commiserate with what we believe they are worth.  The new research points out five reasons for concern about the amount of talent available to fill the positions that will be created in the next five to ten years.

There are five reasons for concern about the number of people who can fill the growing number of high tech, high knowledge jobs.  They are:

1. In most developed countries, the birth rate has screeched to a halt.  In many places in Europe, the birth rate is below replacement level.  In the US the birthrate is just above replacement level.  Add to that the boomers are retiring and the generations after them aren't as big, so there aren't as many people entering the workforce.
2. The workforce is getting older.  See above, but there are fewer young people entering the workforce and many older workers staying in the workforce.  Now, you can teach an "old dog" new tricks, but many older workers aren't as comfortable or as familiar with new technology and new methods of work.
3. Mismatch of skills.  According to the research, less than 30% of 21 year olds will obtain a college degree, when the minimum expectation for many jobs is college degree.  We'll have to import smart labor in the US or double up responsibilities on those with the necessary level of education.  Additionally, where do these other folks work, if most jobs will require a college degree?
4. Diversity in the workforce.  Not too long ago, the workforce was predominantly white and male.  Today, the workforce is highly distributed across age lines, racial lines and the sexes.  The management issues and challenges have probably grown dramatically as the diversity of the workforce has changed.  Additionally, different generations bring different attitudes about work and their contribution.  The boomers were comfortable with letting their work define them, while the general consensus is that Gen X and Gen Y are more interested in obtaining a work-life balance.
5. Less desire for responsibility.  It seems there is an increasing desire among many people to balance their work and their life, and who don't feel the need for increasing responsibility or stress.  Who manages the workers if no one wants to be a manager or executive?  Or is it possible they simply don't need management?

If all these trends are accurate, those of us in the knowledge worker industry can expect our salaries to rise if we are willing to continue working, since the pool of applications is growing smaller and less interested.  However, we'll probably need to continue to import smart, acclimated individuals from other countries to fill the difference between the number of jobs we have that require degrees and the number of people who actually have a degree.  If you think there is an immigration crisis now, wait until businesses are lobbying to bring in thousands of engineers, scientists, software developers and so forth, while lobbying to block immigration for low wage or manual laborers.  I know - it's already happening.

These trends could call into question how we organize to work, and our expectations.  It may be that a flatter, more self-organized team structure is required, where more emphasis is placed on outcomes and less on structure.  We'll also have to become more flexible about working with third parties or members of the supply chain, since a lot of Gen X and Gen Y want to create their own firms, rather than join the corporate rat race.

We shouldn't be surprised.  The corporate model that we have in place now has only really existed broadly for about 120 years.  As incomes and education levels have changed, and scarcity has given way to broad availability of goods and services in most developed countries, the compact between employer and employee may need to change, which will affect how we organize and operate.

Comments

[Craig Klein]

Society is entering a change cycle that will be dramatic.

More focus on ourselves and quality of life might end up being a good thing even for we old fuddy duddies...