PsyMax Solutions Newsletter: Trend Watch
The Coming War for Talent
In This Issue:
- The Coming War for Talent
- Discovering What Makes CEOs Tick
- PsyMax On The Road
- PsyMax Opens Offices in Detroit & Boston
- PsyMax Solutions Adds SearchPath International as a Strategic Partner and Distributor
1. The Coming War for Talent
Off in the horizon there is a battle brewing. Soon a costly war will be waged in the search for talented people. And, just like any other competitive situation, those with the best strategy to find, develop and retain talent in their ranks will win in the long run. No combination of fringes, incentive programs or unique benefit packages can prevent the impact this new war will have on the business world.
This is a war about changing demographics.
For the next few years, there will be an unprecedented shortage of talented people who will be available to work in the United States. This problem is not going to go away any time soon. In fact it is only going to get worse according to demographic profilers. And, it has nothing to do with the out-sourcing, downsizing, importing or exporting of goods, fair trade agreements, migrant workers or any other reason that might be hotly debated on the nightly news talk shows or making headlines in local newspapers.
The age of the current "working" population is going through a historic and dramatic shift. The baby boomer generation which became famous for not trusting anyone over 30 in their youth are now themselves approaching 60 and quickly heading for the corporate pasture. They're hitting retirement age. The big problem is that there aren't enough young talented workers in the labor pool to fill all the positions boomers will be leaving. This is the new reality of the business world. The once endless supply of well-educated, dedicated young people willing to work is on the decline.
According to the U. S. Bureau of Labor Statistics:
- In 2006, the growth of the labor force will be less than 1 percent, down from 1.7 percent in the 1980s and 1.3 percent in the 1990s.
- In 2007, the number of younger workers entering the labor market will not replace the number of older workers leaving it.
- In 2007, for the first time in history, new entrants to the labor pool will not have more education than those leaving.
- By 2010, one-third of the U.S. work force will be older than 50.
- Also by 2010, 77 million baby boomers will retire.
- By 2019, 29% of the U.S. population will be over age 55.
- By 2025, people over age 55 will represent 20% of the labor force.
- By 2030, one in every five Americans is projected to be a senior citizen.
The aging baby boomer generation and the limited supply of replacements from younger generations are creating the largest supply and demand crises of human capital this country has ever seen. For any business the implications are enormous. Even with all the advances in technology in the workplace, it still takes people to drive a business and make it thrive. The better the people are in an organization, the more successful a company can become.
The battle for finding, training and keeping good people is getting tougher every day.
Smart business managers are already executing their battle plans to survive the demographic talent crunch. Better hiring, interviewing and employee development practices are quickly becoming part of their mainstream operating culture. Today, the selection and hiring of new employees is a sophisticated process. It has advanced well beyond the old-fashioned method of reviewing someone's resume, conducting a couple of interviews and checking out a few references before an offer is made. Now, more firms are calculating what their real cost is of employee hiring and turnover. They also can pinpoint the financial implications a "bad fit" can have on net profits.
The early adopters of today's new human resource technology are reaping the benefits of being able to identify the right people for positions within their companies. Behavioral profiling and cultural matching processes are gaining popularity because they accurately identify candidates with top performer potential. For these companies, the decision being made to hire someone based on first impressions in the first five minutes of an interview is a thing of the past.
The new standard is to pre-test potential applicants then conduct an interview with a behavioral work style questionnaire tailored specifically for each potential job candidate. The same caliber of attention to detail most companies put into the development of new products is now being channeled into the hiring process. In a tight labor pool market, being able to minimize hiring mistakes and select the right people the first time is a definite competitive and financial advantage.
And what else are some business people doing in this battle for talent? Once they find the right people and bring them on board, they are building their bench strength by providing on-going development and coaching. If you are interested in learning more about reducing turnover, increasing performance and improving profitability, contact PsyMax Solutions at info@psymaxsolutions.com or call us toll-free at 866-774-2273.
2. Discovering What Makes CEOs Tick
PsyMax Solutions recently completed a study of the behavioral profiles of 240 Presidents, CEOs and COOs. One of the most interesting facts to come out of this study was how high CEOs scored in the creative work style. The study confirmed previous suspicions about their creative thinking process and reinforced beliefs about their ability to be highly persuasive and tough minded.
We expect leaders to be tough-minded and able to make unpopular decisions. We also expect a CEO to be extremely persuasive. Some are smooth talkers and extremely outgoing in nature. Others are more reserved in their dealings with people. Personal style aside, the performance expectations for a CEO are extremely high. People depend on them to sell ideas to customers, make tough decisions, take risks and lead by their example.
As our study confirmed, one characteristic of CEOs is their ability to think creatively in their approach to finding solutions for problems. Although it may manifest itself differently with each individual, the creative work style behavior seems to be present most of the time.
In order to nurture and develop your own creative skills, the following ideas are suggested:
- Understand that everyone is born with creative ability - Every one has creative genes wired into their brains. Creative inspiration is hard to define. It's the light bulb that suddenly goes off in your brain when a great idea pops into it or the solution to a problem comes to you.
- Recognize creative idea killers - When fear takes over the creative juices stop flowing. Fear can kill a brilliant idea almost as quickly as it pops into your head. The most common idea killers are thoughts like: people might laugh at my ideas, I don't want to embarrass myself or this idea is exactly the opposite of how we always do things.
- Relax your mind and let ideas flow - Stumped for an idea? Relax. It's a natural progression for the creative process. Take the pressure off your brain and the ideas will start to move forward. Just when you think there's nothing left in your head, a solution will pop into your brain.
- Get out of your comfort zone - Creativity is all around us. We just have to start noticing it. Open yourself up to the possibility of seeing something new. Start by doing something as simple as taking a different route to work. Try to see what is new and different about your new way into the office. Then apply this same idea to your work environment.
- Train yourself to notice details - Highly successful CEOs catch every detail. They train their minds to see everything. Try to remember a detail about the next person that comes into your office. What color tie? Was she wearing a skirt and blouse or slacks and a sweater? See with your mind and not just your eyes.
- Juxtapose old ideas to get a new idea - New ideas are often just a different combination of old ideas. People have been taking correspondence mail courses at home for years to become motel managers or to improve their drawing skills. The concept of home study today has expanded to the point where you can earn a college degree from your own bedroom via the internet.
- See problems as opportunities - If you know how to apply the creative powers of your mind, there is almost nothing you can't achieve. That's the attitude CEOs take when they get embroiled in a pack of problems.
Somewhere along their career path today's most admired CEOs discovered the value of creative thinking. Many weren't CEOs when they first learned how to use their own creative abilities. But, most will admit it was a major factor in their rise to the top.
3. PsyMax On The Road
PsyMax is exhibiting at the following conferences and trade shows. If you plan on attending any of these events please stop by our booth to say hello.
April 28
EMA Conference
Cleveland, OH
May 4-7
SIOP
Dallas, TX
May 7-10
ASTD
Dallas, TX
October 4-5
HR Technology
Chicago, IL
4. PsyMax Opens Offices in Detroit & Boston
PsyMax Solutions is expanding to better serve our growing list of clients. The company recently opened offices in Detroit, Michigan and Boston, Massachusetts. Jeff Moore will be heading up the Boston office as our Director of Business Development in the eastern region. John Modes will have similar duties in Detroit as our Director of Business Development in the Midwest. Both Jeff and John have extensive experience working with clients to resolve their human capital needs. In Boston, Jeff Moore can be reached by phone at: 978-362-3280 or via email at jmoore@psymaxsolutions.com. To reach John Modes in Detroit, please call: 734-513-4113 or email John at jmodes@psymaxsolutions.com.
5. PsyMax Solutions Adds SearchPath International as a Strategic Partner and Distributor
An international search and recruiting firm with over 40 franchisees, SearchPath International will exclusively market and offer PsyMax Solutions' assessments to their clients. Each franchisee will also use PsyMax assessment tools for their internal hiring needs. Tom Johnston, President of SearchPath International stated, "As a recruiter and owner of a recruiting and search firm, I have witnessed the devastating effects a bad hire can have on the success of a business. That is exactly why I am proud to announce my strategic partnership with PsyMax Solutions. What I like most about their assessment tools are that companies can not only use them to improve their selection process, but also apply the same assessment data to enhance the onboard, development process. By adding PsyMax assessment products to our services we are significantly providing more value to our clients."
To learn more about this partnership, contact PsyMax Solutions at 866-774-2273 or Search Path International at 216-912-1500.
About PsyMax Solutions
PsyMax Solutions offers an on-demand and integrated Human Capital website that provides world class assessment, interviewing, development, coaching, career, and 360° reports and programs for employees and managers. The PsyMax Solutions product suite is based on the work of psychologists who have conducted and written reports for over 20,000 managers. Our product suite generates results equal in quality, but at a fraction of the cost.
The PsyMax Solutions product suite is ready for immediate use without time-consuming and expensive consulting and IT set-up costs. In minutes you can create your own customized Human Capital website and use our integrated product suite to align your recruitment and development processes. To learn more about PsyMax Solutions, please visit us on the web at www.psymaxsolutions.com, e-mail us at info@psymaxsolutions.com, or call us at 866.774.2273.
