Dallas, Texas, USA, January 16, 2008
By 2010 there will be 11.5 million more jobs than workers. It's called the "new reality" and it's happening now as baby boomers retire, leaving a drastically smaller employee pool to fill their jobs. These individuals lack the boomers' skills and experience and bring different work ethics, expectations and loyalties to the workplace.
In a recent survey conducted by leading executive search firm Stanton Chase International and Birkman International, 94.1% of respondents report current or impending shortages of quality leadership talent. Furthermore, 90.4% perceive a gap in talent between baby boomers (current corporate leaders) and younger generations.
Nearly half (48%) say this shortage critically or significantly affects their organizations' senior management level.
"These numbers indicate a critical need for talent that's forcing organizations to rethink their hiring and retention practices-or suffer the consequences," said Steve Watson, international chairman of Stanton Chase, which has 57 offices in 35 countries and is a top 10-ranked global retained search firm.
Most organizations are preparing for the talent search. Two-thirds (67%) are concerned about the situation and two-thirds are at least moderately prepared (64%), meaning they are planning and implementing strategies to address the shortage.
Slightly more than a third (36%) reported that their organizations are doing little or nothing about it.
Interestingly, only 55% said the CEOs of their organizations are very or completely willing to embrace strategies necessary to attract, assess and retain new generations of employees.
Baby boomers have been the most stable and loyal workforce in history with average employee tenure 15 years in 1980 and 10 years in 2000. In 2000, average tenure for Generation X (born 1965-1977) was five years. Average job tenure today is four years, according to the U.S. Bureau of Labor Statistics.
"This lack of skilled and experienced workers combined with a multigenerational work force with varying values, work ethics and priorities plus economic changes are what the new reality is all about," Watson said. "Organizations that do nothing about it have the most to lose."
Survey Methodology
The survey was conducted among executives in the United States and Canada by Stanton Chase International and Birkman International. With a sample size of 560, they estimate with a 99% probability that results have a sampling error of +/- 5.5%. For full survey results, visit Business Implications of the New Reality 2008.
Contact
Nick Wylde
Chairman, Global Marketing and Business Development
Office: +44 207 930 6314
n.wylde@stantonchase.com
