As
the term implies, labor-dependent industries, like manufacturing or
construction, require lots of skilled personnel. Once a primary choice of employment for a
large percentage of entry-level workers, experience shows these critical
sectors are now struggling to maintain minimum essential staffing. The challenges faced in recruiting and
retaining employees are both complex and ever evolving. At a point in time with near historic-low
unemployment and a steadily declining workforce participation rate, the balance
of power has shifted. The emerging
workforce is highly educated and has an unprecedented number of options
involving career opportunities. For
those concerned about the labor-related headwinds currently faced, the sentiment
is warranted. The factors responsible
for the labor market are deeply rooted and far from being behind us.
A Workplace in Transition
As it specifically relates to
recruiting and retaining skilled labor, organizations now face a set of
circumstances unlike anything experienced in the past. At this very moment,
11,000
Baby Boomers in the U.S., are retiring - daily. As this senior-most segment of the workforce
transitions out, they take with them a wealth of experience and a host of
traits employers are struggling to replace.
On the other end of the spectrum, Gen Z has and continues to enter the
workforce with an entirely different set of values and beliefs. What employers have intuitively learned
through this process is that what once worked, no longer does. Autocratic or authoritative management
systems, still prominent across many sectors, are the incoming generations
least preferred style. So much so, few
will work where it exists. The purpose
of this blog is to help organizations attract and retain employees more
effectively. To achieve this desired
outcome requires focused attention on the things that matter most to the
emerging workforce.
Over the past 20 years, Microlearning
for Managers (MfM) has worked with hundreds of labor-dependent companies and
thousands of supervisors. Throughout this
period of time, we’ve run countless surveys and engaged with employees from a
wide range of sectors to understand points of frustration. Our conclusion? The #1 reason employees leave an organization
is pay. As one client recently shared, they
had a 25-year-old lineman (working for a rural electric coop) who resigned to
accept an offer from a contractor that provides services to the utility. His decision was prompted by a $4 dollar per
hour increase in pay, routine overtime, and a liberal per diem package. In exchange for the near-term boost in pay,
the young worker walked away from a far superior long-term benefits package
that included a pension. For anyone
wanting to increase recruitment and retention rates, we strongly suggest offering
competitive pay. To eliminate
compensation as an obstacle, we recommend positioning yourself in the top
one-third for hourly rates or base salaries among those you compete with.
First
impressions are lasting impressions.
As such, your onboarding and orientation process either works for you or
against you. This underappreciated
opportunity to attract and retain top talent is a perennial top-five
recommendation for those wanting to become and remain an employer of
choice. Making new hires feel welcomed,
conveying a sense of belonging, and helping them connect with the
organization’s mission and purpose are objectives well worth pursuing. In addition, providing post-orientation
support to help employees successfully integrate into their roles throughout
the first year or so is a practice easily implemented and often overlooked.
As previously stated, traditional
management practices that once worked, no longer do.
Gen
Z employees prefer team-based structures and collaborative
environments. They want to work for coaching-oriented
leaders they know and trust and prefer mentorship over management. They want to be involved and have input into
decisions that impact them. They migrate
toward workplaces where these cultural attributes exist and avoid those where
they don’t. Organizations wanting to
improve recruitment and retainment of the next generation of workers must adapt
to these preferences and adopt an entirely new set of people-centric skills to
practice. In labor-dependent industries,
this translates to redefining how frontline resources are prepared and equipped
to lead the next generation of workers.
Employees working in skilled trades
require tools, equipment, and materials to perform their jobs. Recognized as ‘basic needs’, these items
should be maintained in good repair and be readily accessible when needed. A dichotomy exists of profound significance
relative to this topic. While subpar
employees might migrate towards an inefficient workplace, that’s not the case
for high performers. Employees exhibiting independent or interdependent work
ethics, characteristics employers value most, are the ones most frustrated by
breakdowns in basic needs. They want to
work and have little to no value for sitting around waiting on tools or
equipment. Where this environment
perpetually exists, top-tier workers seek employment elsewhere. Recognize the importance of providing for
your employee’s basic needs and make sure they are consistently being met.
Gen Z has an affinity for
learning. More so than any previous
generation. As digital natives, they’re
adept at learning new skills when confronted with a recognized need to do so. Whether it’s removing wallpaper, repairing a
dripping faucet, or wanting to impress a special someone by making an authentic
chicken cacciatore dish – they readily seek answers to questions and lean on
the internet to find them. For those
wanting to attract and retain the incoming generation, offering continuous
growth and development opportunities is not only important – it is essential. In practice, this involves
learning
in the flow of work. Simply
stated, it’s a process whereby collaboration, coaching, and mentoring are used
when learning opportunities arise.
Information sharing is valued and appreciated, not as a means of finding
fault, but in offering multiple perspectives needed to enhance understanding. Where learning opportunities are integrated
into daily routines, performance outcomes improve. In addition, levels of engagement from the emerging
workforce rise. This subtle, but
important, point provides a profound opportunity to attract and retain the next
generation of workers.
Organizations serving
labor-dependent industries face an undeniable reality involving the availability
of needed personnel. Long gone are the
days of sorting through the stacks of highly qualified applicants ready,
willing, and able to fulfill open jobs.
A new era has emerged, and the long-term forecast shows little to no relief
for the foreseeable future. Staffing
personnel must find ways to distinguish job opportunities from competitors in
meaningful and sustainable ways. The
challenge, while formidable, is not insurmountable. It requires a change in mindset and a
willingness to shift operational practices.
Most importantly, it requires creating a culture that better aligns with
the preferences of those needed to maintain required staffing going forward.
Microlearning for Managers is a learning & development organization
dedicated to the 21st century needs of people leaders. Specializing in the qualities of effective frontline
leadership, we focus on providing the skills needed to achieve operational
objectives through influence. For additional
information or to learn more about our course offerings, please check out our website or contact us at Information About Microlearning for Managers.