- Posted by Vidcruiter
- On September 19, 2012
- 0 Comments
- applicant hiring system, future of recruiting, online interview, talent hiring system
The effects of aging demographics on hiring are significant and organizations today must find ways to manage this impending HR problem. What can be done? What is the impact of this issue on the present direction of the company? How can the organization transition from the trusted and experienced baby boomers to younger talents? These are some of the key questions that need some answers. Although this concern has been raised before, its implications have never been as real and as alarming as today as baby boomers are preparing to retire and internal pool of people are not yet ready to assume leadership and get the organization moving forward.
Harder placement on technical jobs and functions
The engineering field is highly specialized making it one of the most affected industries as far as aging employees is concerned. People on top positions are simply packing up too much experience while their replacements severely lack that same experience to assume managerial and leadership positions. This gap in skill is instrumental to the red flags being raised by many engineering and even tech firms worldwide. With an expected cut on these jobs of up to 18% due to aging and/or retirement in the coming years, and 17% cut on jobs due to failure to source qualified people, hiring will be soon in crisis mode in this field.
What can be done? Many tech firms are pushing for automation. Technology is enabling many firms to offset the effects of retirement in the coming years. In fact demand for IT professionals decreased to 70% of surveyed firms because of automation.
Labor shortage and organizational growth
1/3 of the present workforce is baby boomers, and most of them will be retiring within the next few years. This will vacate a lot of positions that “new breeds” simply cannot cater to. There are just too many jobs for so few of qualified replacements. This can seriously hurt an organization’s drive for growth and expansion. With more and more people moving up the pipe of employment towards retirement, organizations might be forced to settle in low gear to cope up with this fast unfolding hiring issue. This can practically mean losing competitive advantage. This is a very high price to pay for some organizations with most of them not able to afford such operational setback.
What can be done? Organizations might need to re-think their hiring process allowing more mature people into the ranks. This can mean re-hiring retired people by offering limited benefits and no pension, or an integration plan of gray-haired people and young workers for effective age mix in the workforce. Retirees can also be asked to stay longer just to see through the transition or provide avenues for them to teach people next on the line to lead and manage seamlessly when the right time comes.
It takes three months or more to prepare qualified talent to hold leadership positions. It should take longer if there is no qualified pool to take over vacated high-level positions. This can make hiring very tricky. Analyzing the impact of this inevitable problem can provide lead time in planning what needs to be done and getting these plans on the way to get to the problem before it gets the organization.
Ask us how you can assure quality hiring with a proven world-class recruiting software today!
And don’t forget to enter your email address at the top right of this blog to receive our latest posts!