Prepare for the Impending Labor Shortage

by Roberta Chinsky Matuson

If you want to add some spice to the conversation at a dinner party, mention the words "labor shortage." Chances are someone at the table knows someone who has been laid off, and on a daily basis, newspapers highlight organizations going through major staff reductions. With so many people out of work and companies struggling to hold their own, how can there possibly be an impending labor shortage?

The Future Is Near

Early indications are that this will be a mild recession and job growth will outpace population growth. This predicted labor shortage is rooted in demographics. Over the next few decades, we will have a growing class of retirees and a shrinking workforce. HR professionals will face the challenge of staffing their organizations while developing new approaches for organizing and managing the workflow.

Facing Tomorrow's Challenge Today

As an HR professional, you may feel like you're working both sides of the street. One week you're finalizing your company's reduction-in-force plan, and the next week you are creating a strategic plan to address future workforce needs.

Smart companies are being proactive. They know the coming labor shortage could be worse than the one we faced before the recession hit, so they are using this slowdown in the economy to get their human resources in order.

Constant Communication

Maria Ferrante Wilson, senior staffing specialist for Beckman Coulter Inc. of Miami, knows firsthand what it is like to lay people off while continuing to staff other parts of the company. She believes open communication between company and staff is key to fulfilling this dual role. Her company told employees why the restructuring was needed and the impact it would have on specific jobs. It also followed up with outplacement services to support those employees who lost their jobs. This approach helped keep morale up during difficult times.

Effective channels for employee feedback keep the lines of communication open, too. Employee surveys, weekly employee meetings and open-door policies foster communication. "In most situations, you won't find out what people are thinking unless you ask," says Sheree Ruland, HR manager of employment for TriPath Imaging Inc./TriPath Oncology of Burlington, North Carolina. If your employees feel their opinions matter, they are less likely to bolt for a better offer. Retention will become even more important as talent gets harder to find.

Strategic Plan

It's hard to help move your company ahead if you don't know your destination. Wilson suggests surveying managers for input regarding what type of talent they will need going forward and how much. Then, develop a staffing plan that includes strategies for finding appropriate people for your organization.

Branding Your Company

Just as companies brand products for consumer recognition, employers need to do the same with their employment image. "Our company is building an employment branding strategy aligned with our corporate marketing efforts. We want people to know who we are and what we're doing. We want them to get used to seeing us out there in business and technical publications, various other print media, on the Internet, at biotech job fairs, etc.," says Ruland.

Look in Your Own Backyard

"We have a new program to identify key skills, knowledge areas and competencies of Liberty Mutual employees that match our business needs," says Elizabeth Tyminski, director of employment, for Boston-based Liberty Mutual. "This will enable us to manage and develop [the] talent within our organization."

Plant Your Seedlings Today

Maintaining relationships with potential hiring partners is critical, even if you aren't currently in a hiring mode. "Work with local high schools to provide mentoring and job-shadowing opportunities for students early on to ensure they are enrolling in key educational programs to support your business (e.g., computer programming, engineering, etc.)," suggests Wilson.

College internships and co-op programs are also an excellent way to nurture your future workforce. Liberty Mutual offers people career opportunities, rather than jobs -- a big selling point when trying to attract talent.

Tops in the Field

"HR, and particularly staffing/employment, need to stay a few steps ahead of the crowd if they truly want to be the top in their field," Ruland says.