Why is there the potential for workers to dictate terms?
The labour market shortage creates workers to dictate terms.
The labour market shortage is set to worsen in the next 10 years – giving workers even more powers.
Employees who want to attract or keep staff will have to offer something that sets them apart from their competitors.
With the exiting from the workplace of the Baby Boomer generation threatening to take the gloss off the good times for businesses that don’t have enough skilled employees to operate to capacity.
The best strategy for dealing with a labour market shortage is to develop a flexible working environment that is filled with competent and committed people. If not, there is the potential for workers to dictate terms.
The interesting prospect about an economy with fewer workers is that they will choose where they want to work. Some will force companies to offer much higher salaries and wages. Others will challenge their companies to manage them well, both to increase production and to keep them from leaving.
Turning Lemons into Lemonade
The cracks in the corporate pavement are quickly starting to appear. The best strategy for dealing with a labour market shortage is to develop a flexible working environment that is filled with competent and committed people.
It is absolutely critical that today’s managers develop their up-and-coming leaders and teams to champion innovation. Especially, if your organisation has an already ageing workplace population
The labour market shortage is like stubbing your big toe on the pavement. It is not only painful, you also quickly realize you take your big toe granted. It is from these painful lessons that we often vow never to make the same mistake again, except some business are. All this adds up to the risk of workers to dictate terms of their employment.
Moving forward over the next 10 years, many businesses will struggle to keep enough staff. The next decade holds one certainty for corporate organisations – there will not be enough workers.
Workplace baby boomers are gearing up to retire and this will create a natural labour market shortage in the next 5 to 10 years. It is because of shifts such as this that we are finding that workers now wield the power, both locally and overseas.
Optimistically, the effective workplace leader will create the time and space to develop strategies to turn this lemon into lemonade by developing an innovative workplace the competence of their workforce, especially their Gen Y’s.
The interesting prospect about an economy with fewer workers is that they will choose where they will work. Some will force companies to offer much higher salaries and wages. Others will challenge their companies to manage them well, both to increase production and to keep from leaving.
