Talent Management - November 2008 - (Page 17)

The world population growth rate peaked in the early 1960s at about 2 percent annually but has been steadily declining ever since. Today, the rate stands at a little above 1 percent and is projected to decrease to 0.5 percent by the year 2050. Figure 2 shows the end of this century’s ﬁrst decade — fewer than 15 months away — will see a domestic labor shortage of 10 million workers. The current economic downturn, brought about in part by the mortgage lending crisis and energy inﬂation, may alter these projections in the near term, but the trend toward labor shortage is clear, inevitable and global in geographic sector terms. The precise transition to a state of talent shortage is difﬁcult to determine, but it is clear a number of U.S. industry sectors are already feeling the effects of talent shortage. Global Economic Growth To gain the most beneﬁt from this kind of demographic data, talent managers have to understand the ramiﬁcations of the global spread of economic growth. Economic growth in the Southern Hemisphere, nonJapanese Asia and Central Europe signiﬁcantly outpaced the developed world. And the past two decades have seen unparalleled growth in the Second and Third World nations. Figure 1: Forces Creating a Shortage of Qualified Talent 2 The 21stcentury worker 3 Emerging global economies Finite future talent pool 1 Changing workforce demographics Figure 2: Projected U.S. Labor Shortage by 2030 210 200 190 180 Millions Labor needed Labor available 170 160 150 140 130 2002 2006 2010 2014 2018 2022 2026 2030 A projected shortage of 10 million workers by the end of the decade Strong global economies translate to increased competition for talent, Source: Employment Policy Foundation analysis and projections of and fewer workers are motivated Census/BLB and BEA data, American Workplace Report 2008 to migrate. Then, where the Western World once represented the best opportunity for skilled workers, today’s qualiﬁed workers in India and China, for instance, MySpace to make connections and obtain information are more likely to be solicited for domestic employment in a way that was previously not possible. opportunities than their American counterparts. Progressive companies looking to recruit these job seekers and their skills understand that using modern technology is a critical piece of the hiring process. Google, for The 21st-Century Worker instance, attracts workers via sophisticated InternetCompounding the challenge of demographics and lim- based videos. IBM now employs Second Life avatars to ited worker migration, today’s companies are con- sell prospects on the merits of working at Big Blue. fronted with the need to attract a new type of employee: the Generation Y worker, or Millennial. Today’s younger workers, dubbed the Internet generation, are Become a Talent Organization the most educated in history. Further, they have been The interplay of these multiple forces means organiraised and coached to act like entrepreneurs when zations can no longer assume they will attract talent managing their careers. — let alone the best talent. That’s where predictive hirGone are the days when information about job oppor- ing plays a signiﬁcant role. tunities was solely found in the Sunday newspaper’s classiﬁeds listings. Now young workers use online social networking sites such as LinkedIn, ZoomInfo and Organizations capable of effective human capital planning need to transform themselves into talent-acquiring entities. The same discipline and sophistication November 2008 talent management magazine www.talentmgt.com 17 http://www.talentmgt.com

Table of Contents Feed for the Digital Edition of Talent Management - November 2008

Talent Management - November 2008 Editor’s Letter Contents Human Performance Leading Edge Learning Connections Recruitment & Retention Assessment & Evaluation Compensation & Benefits Performance Management Learning & Development Succession Planning Insight Dashboard Application Advertisers’ Index Editorial Resources Full Potential

Talent Management - November 2008

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