All articles written by John Howard, Ph.D., except where noted.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Three and a Half Trillion Reasons to Prepare for theUpcoming Workforce Crisis
From Jim Sirbasku’s Desk

Over the last three years, the executive team here at Profiles International has had the unique opportunity to partner with industry leaders to investigate a critical subject — how demographic changes to the world’s workforce are leading to a workforce crisis and what companies can do now to survive and thrive.

To better understand the impact of the workforce crisis, Profiles International partnered with The Concours Group, Harris Interactive and AgeWave to assess how 24 leading global companies are preparing for this crisis. The results of this collaboration served as the basis for the new book, “Workforce Crisis.” The research gathered has also been instrumental in driving product strategy for Profiles. Simply put, we are committed to providing solutions to help our customers address the upcoming workforce crisis.

The workforce crisis is being driven into a “perfect storm” of catastrophic proportions by…

• A significant drop in the growth rate of the labor force.

• The impending retirement of Baby Boomers.

• A continuing paradigm shift from physical labor to a knowledge worker economy.

Soon, the worldwide demand for labor will outstrip supply by 35 million jobs essentially draining $3.5 trillion in annual output from the global economy — an impact sure to be felt worldwide.

The workforce shortage will result in incredibly stiff competition for top performers. Those companies capable of attracting and keeping top performers will thrive, while those that are not will fail.

Given this situation, what is the secret to effectively competing for top talent? It is very simple: optimizing employee engagement.

Companies that have a high percentage of engaged employees experience tremendous return on investment. For example, research found companies with a high percentage of engaged employees enjoy these clear competitive advantages:

• Higher customer loyalty (86 percent higher)

• Success in lowering turnover and increased productivity

• Higher profitability (44 percent higher)

• Better safety records

• A 27 percent increase in earnings per share

It is obvious optimizing workforce engagement is a key business strategy that yields high results. Unfortunately, our research found that over 60 percent of current employees are not engaged in their current roles.

Therefore the question remains, “How do you make sure your employees are engaged, especially through the changing dynamics of the workforce?”

Some solutions include making sure the job matches a person’s thinking and cultural styles in addition to their previous background and skills, and tailoring the right combination of compensation, benefits and work/management “climates” to match the characteristics of your workforce. This issue of The Profiles Advantage focuses on all those resources and strategies you and your organization will need in dealing with the workforce crisis!

Again, Profiles International is committed to providing solutions that will help you win the battle for talent in the upcoming workforce crisis. Our integrated portfolio of solutions provide you with tools to optimize employee engagement throughout the employee life cycle, from hiring to motivation and retention through succession planning. Our goal is to help you avoid the $3.5 trillion drain to your bottom lines.

We invite you to learn more about our continuously expanding family of solutions and we look forward to ongoing and future partnerships.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Ten Ways to Engage Employees

A new manager went to work in a department of a retail store that seemed to have lost its way. Sales were down and so were energy levels. Displays were stale, and several areas needed cleaning. Worse, several employees seemed to spend most of their time on cell phones — and the conversations were not about work.

The manager immediately recognized the problem. She had seen it before. About a third of her employees were new, and they were the only ones who accomplished anything. Their expectations were high, and so were their sales. They stayed busy doing worthwhile tasks even when they did not have customers. More than half of her employees stood around looking bored and tried to appear busy when the boss was nearby.

Finally, another group of employees came in late, left early, took long lunches, avoided helping customers and, as near as the manager could tell, did not make any sales or even try to do so. She wondered what had happened to make them so disenchanted.

Through research, she found that the most disengaged group of employees included the ones who had been there the longest. Studies bear this out. Look at your own workers and see who is productive and who is not. Likely you will see employees who have been on the job several years, see no change coming and no room to grow. They are not interested in the work, their customers or their colleagues.

“Engaged employees are not clock-watchers,” says Jim Sirbasku, CEO of Profiles International. “They are productive, creative and will be the first to volunteer for your most difficult assignments. When you learn how to keep your employees engaged, you will have less turnover and more productivity.”

Here are 10 strategies you can implement today to re-engage your employees and increase productivity:

1. Ask employees for suggestions. Let them comment anonymously through a suggestion box. Read employee suggestions regularly, and implement any ideas the company can afford and that actually might work.

2. Cross-train. This develops the skills of all employees. Disengaged workers may become excited about work again, or they may take their new skills to a job that fits them better.

3. Find ways to reward employees through recognition. Make this meaningful by adding an extra day off, a gift certificate or another inexpensive gift.

4. Listen to employees. Have regular feedback meetings if possible, in addition to the suggestion box. Again, use as many ideas as are possible, especially when they are easy and free.

5. Seek out workers who will motivate others via their job knowledge, enthusiasm or both.

6. Give workers the freedom of making their own decisions, especially when dealing with customers.

7. Present company challenges publicly when possible. Let employees help solve them.

8. Give employees the resources they need to do their jobs.

9. Make sure your managers are engaged. If they are not, they will not engage others.

10. Provide all employees regular feedback about their job performance.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Taming Turnover and Retaining Your Brightest Stars

Employee turnover is a big issue facing many of today’s organizations, making employee retention and motivation an ongoing challenge. Yet this is an issue which can be controlled by hiring the right people for the job and by being creative in the way you manage, train and reward your people.

It is estimated that organizations spend somewhere between $4,000 and $40,000 in recruiting and replacing an employee. This is quite a large range and probably exists because many employers have come to accept turnover as a normal business practice. It is true turnover will occur in any given situation, but those organizations taking the issue seriously and investing in their people are more likely to thrive in an environment soon to be short on skilled and experienced workers.

Given these circumstances, where do you start in recruiting and retaining the best and brightest stars? Below are a few strategies to help in that quest:

• Get it right the first time. Hire the right person for the right job. Good managers identify, hire and keep talent. Use tools to aid in identifying those characteristics which are desired for certain jobs. “Identifying accurate job characteristics may seem like a daunting task, but it is actually quite straight-forward when you have the right tools at your disposal,” explains Jim Sirbasku, CEO of Profiles International. It is important to look at recruiting and identifying the right person for the job as more than just a function of human resources, but as an opportunity for future success.

• Money is not the only thing. Money is just one component of employment value. In addition, businesses can offer a great workplace, life balance, quality leadership, career development and work flexibility. Benefits can add to the employment value and range from a great financial package to employee appreciation and recognition programs.

• Create a caring work environment. Salaries may keep people on the job, but it will not motivate them to produce. A genuine, warm and caring workplace impacts staff directly and adds quality to products and services. The philosophy behind this is simple: give and you will get back tenfold. How employees and applicants are treated indicates an organization’s passion for the business they are in.

• Promote from within. Giving employees an opportunity to advance perpetuates company culture and creates a sustainable advantage. “Knowing your employees’ strengths, weaknesses and what makes them productive gives employers a distinct advantage in retaining and developing their workers,” says Bud Haney, Profiles International President. Treat employees with dignity, nurture those who want to move ahead and create a climate in which they can excel.

• Build your reputation. Everyone wants to believe in something and feel a part of something important. Employees and applicants are no different. They gravitate toward and align themselves with those organizations wielding strong reputations. Given this, due process should be paid to an organization’s reputation, brand and image within the marketplace.

Planning effective strategies is a key component in attracting and retaining good workers. However, it is important to create plans that are easily understood by employees and communicate the advantages of what exactly they will be receiving.

It has been well documented that our workforce will be facing severe shortages in the near future. In fact, the U.S. Census Bureau indicates this issue will be a serious deficit by the year 2010. Because of this impending issue it will become almost imperative that organizations plan recruiting and retention strategies now. According to Gregory P. Smith, international business consultant and author, “High turnover organizations spend disproportionate amounts of resources on recruiting and replacing their workforce, while smart organizations [plan for and] invest in retention.”

In the end, remember to plan — plan to survive the future and plan to succeed!

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .