What is Keeping Employers Awake at Night?
Do You Know What’s Keeping Employers Awake at Night?
No, it’s not what you’d think…
Surprisingly, it's not money. Increasing revenue is number two on the list. The number-one biggest concern for Canadian businesses is hiring and retaining good employees.
The Boomer Crisis
As of December 2017, the unemployment rate for Canada fell to 5.7 percent, its lowest level in over 40 years. This is good news for those looking for a job; however, for employers this means fewer candidates are available to fill positions. Unfortunately for businesses, this is only going to get worse as the Boomer Crisis gets rolling.
“The what crisis?”
As baby boomers retire from the workforce, they leave behind vacancies that are difficult to fill. Known as the Boomer Crisis, the event started in January 2011 when 170,000 Canadians per year started to retire. That trend now has grown to about 400,000 per year, and will continue for the next 17 years.
What does this mean for employers?
In a nutshell, there are going to be significantly more jobs than people to fill them. As most employers are finding now, hiring the right people is getting harder by the day and will only get worse as baby boomers continue to leave the workforce.
The top four professions most affected by the Boomer Crisis
Generally speaking the Boomer Crisis will affect all positions in every industry. However, here is a quick list of the top four most impacted areas.
Sales and Service
Business, Finance, and Admin
Trades, Transportation, and Equipment
Management (All Levels)
Four ways to prepare for the Boomer Crisis
Most people are already aware or have heard of the Boomer Crisis. But this is no longer a distant future event: it is happening now. Being proactive is the only way to keep up with the coming changes. Here are four ways in which you can start to prepare for the waves of workers leaving the workforce and the difficulty in finding qualified employees:
1. Be aware of what is happening now and what is coming. Businesses have already closed due to not being able to find any qualified people. Burying your head in the sand will be the death of your business.
2. Understand you're in a talent war. Well over 70 percent of possible candidates looking for jobs are currently employed. You will have to market job positions in the style you would to attract new customers, selling your business and the position to potential candidates.
3. Be proactive. Inventory your current positions and identify your organization's most vulnerable areas. Who is set to retire in the next few years? Who will fill those spots? Start succession planning now! Look for ways to use technology to your advantage and streamline your operation.
4. Always be on the lookout for potential candidates. Stay in recruitment mode. Ensure your managers are well trained and have the resources available to effectively manage their team with respect and professionalism.
The new currency of business
In the very near future, businesses will no longer succeed based on how good their products or services are, or how effective your marketing is. Instead, what sets a business apart will be its people. If you don’t have the right people to run your organization, it will die.
Good news: there’s still time
Smart companies have seen this coming for years and have been quietly strategically planning and hiring for this time. The good news for you is there is still time. However, that window is closing more each day. Take advantage of this time while you still can.
Do not bury your head in the sand and try to ignore what’s happening. Like it or not, the Boomer Crisis is upon us, and it will affect your business and ability to hire qualified employees. There are ways to minimize its impact: be proactive, start succession planning now, and always be on the hunt for great talent. Also, keep in mind that your employees are being hunted as well, so keep them engaged and manage their talents.
If you embrace the Boomer Crisis and face it head-on, your business will have opportunities like never before.