Employers everywhere are aware of the imminent demography changes about to occur in the workplace. With Generation Z knocking on the door, it’s time for companies to ready themselves for not only a new generation, but a new era.
The ageing of older generations we are now witnessing is likely to cause challenges for organizations as they try to retain employees’ skills and knowledge.
The number of employees older than 55 years old is increasing significantly, while the number of newborns is decreasing. Academy to Innovate HR (AIHR) shares that in the U.S. alone, 10,000 baby boomers turn 65 every day, and this will continue until 2030.
Data from the European Labour Force Survey shows that 16% of the total workforce in the European Union are aged over 55. In Germany, Finland, and Sweden, the number of mature workers is close to one in five.
Which Industries are Most Affected?
While the issue of an ageing workforce applies to every industry, some industries are more vulnerable than others. The financial sector, for example, is dealing with significant pension pay-outs.
Recruiting doctors in rural areas is another challenge while many doctors approaching retirement age are being enticed by employers to stay on in their positions since they offer knowledge and security. How else do companies retain knowledge?
Our advice? Don’t wait for tomorrow. There are several things you can do to attract Generation Z and be better prepared for the future.
7 Things You Can Today
1. Review current competencies
Evaluate each department to identify what skills are needed and what skills there will be a shortage of in the near future.
2. Complete a quick analysis of your current situation
Look at your workforce. How old are they? How will the situation look in a few years? Can you entice workers to stay longer? Use intelligence from your benefits administration platform to better understand and engage your workforce.
3. Offer training and development programs
What growth opportunities does your company offer? How can knowledge be shared? Can you develop your training programs further?
4. Localize potential capacity challenges
Identify the most significant capacity challenges your company is facing. Where are they? Which areas will be the most impacted?
5. Look abroad
The war of talent knows no boundaries. Look for talent abroad. After all, diversity introduces a wider range of skills and has been shown to increase productivity, creativity, company reputation and more.
6. Automate and Update Technology
What manual processes can be automated? A benefits platform allows you to automate tasks and streamline processes for HR, payroll and more. Use an employee engagement platform to reach and communicate with your workforce and to provide them with a self-service option.
7. Become a more attractive employer
How can you become a more attractive employer so that you can retain existing employees? What global benefits are you offering employees? How can you attract younger workers, specifically Generation Z, to your organization?
Having surpassed millennials in 2019 as the largest generation in the western world, Generation Z are entering the workforce at a rapid speed. Your company’s ability to attract and recruit them is crucial.
By being proactive and addressing issues head-on, you’ll be better prepared to combat a declining workforce and be in a better position to ensure that skills and knowledge are not lost.
Looking for more insights on Generation Z and how to best prepare for their arrival?
Download Generation Z – The Definitive Guide to The Future Workforce today!