Business Implications of the New Reality 2008: - Stanton Chase ...

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6 The New Reality The New Reality 2008 Economic trends and strong economic growth have led to this New Reality characterized by shorter job tenures, changing generational values, a surplus of vacant positions and scarce talent. With large numbers of baby boomers retiring around the same time and this trend accelerating rapidly in 2010, smaller, younger generations are unable to fill the amount of jobs left vacant. In addition, there is a shortage of skills and experience among younger generations, and for the first time ever, four generations comprise the workforce. With these different generations come varying values, work ethics, perceptions and priorities that, especially when combined with macroeconomic trends, produce startling changes in the workplace. Take, for example, the fact that the average tenure for baby boomer employees was 15 years in 1980 and 10 years in 2000. The average tenure for Generation X in 2000 was just five years. According to the U.S. Bureau of Labor Statistics, the average job tenure for employees today is just four years. These changes in job tenure can be attributed to both economic changes and differences among generations. Generation X and younger generations demand more from their employers. They require a reason to stay with their current employers (rather than leave), and they demand a work-life balance that allows them to pursue both professional and personal endeavors. Add to these statistics the prediction that there will be 11.5 million more jobs than workers by 2010, and it is obvious that organizations must face this New Reality now. Perceptions of the New Reality Almost 40 percent of business unit leaders, 52 percent of executives and 62 percent of CEOs understand the implications of the New Reality. More than half of respondents (54 percent) believe there is a current shortage of quality leadership talent in the workforce, while 40 percent believe there will be a shortage in the near future. Just 6 percent said there is not a shortage in the foreseeable future. Further, 90 percent of respondents believe that when it comes to qualified leadership talent, there is a perceptible gap between baby boomers and younger generations. Of those, 34 percent believe the gap is significant, and 46 percent believe it is moderate.
7 The New Reality 2008 How well does each of the following leadership areas of your organization understand the business implications of the talent shortage? Human resources have been tuned in to the talent shortage problem for many years now, and CEOs and executive committees are also very aware because the current health and future growth of the organization rests with them. Business unit leaders, however, are more tactical and not necessarily focused on the “big picture.”
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Business Implications of the New Reality 2008: - Stanton Chase ...

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