Preparing for Your Upcoming Shortage of Key People

Did you know that the cost of replacing retiring or departing employees
in your business could be in the millions of dollars over the coming
decade? And while hiring retirees as contractors can fill the skills
gap, it will also slow your corporate adaptation efforts.

Key Personnel

With the looming retirement of Baby Boomers, many companies are ill
prepared for the accelerating talent shortage to follow. They haven't
done enough to improve their hiring and employee retention practices,
or establish succession programs. Consequently, they will struggle in
attracting needed talent and sector skills in the competitive future.
They will not stand out in comparison amongst employers and will find
themselves unable to afford the replacement cost for comparable skills.

The time to act is now, since your hiring competitors may have already
taken significant steps to position themselves as an attractive
employer – an "Employer of Choice."

It's critical to recognize both the attraction and retention issues
faced. Changing your internal practices to become a competitive
employer will be a significant undertaking. Board members and
shareholders must be alerted to the issues and make the choice to
enable you to successfully compete for talent and retain proprietary
information.

The first step is generally to craft the business case which highlights
the risk to the company and proposes an action plan to make your
business a desirable employer – which boards and shareholders

must consider seriously. Backed up by research and best practices,
identify what your company needs competitively to be a more attractive
employer, together with an appropriate budget for this effort.

Here are some of the areas such a presentation might address (customized to your business, its location and priorities):

• The cost profile of replacing retirements/departures
• The upcoming labor force demographics in Canada and specifically your region
• The folly of relying on contracted retirees as a stop gap
• What today's employees are looking for
• What other similar or competitive businesses are doing to attract and retain employees
• Human resource costs – direct and indirect
• The training costs of training up internal and external candidates
based on the difficulty in replacing critical skills in a more
competitive marketplace
• Financial and other implications arising from inability to service your customers until internal knowledge base is replace
• A plan for transitioning your business to becoming a more competitive employer
• Proposed budget and how to pay for the transition
• Measurable success criteria

Everyone knows that a few key people can make a huge difference to your
business. If you have those people now – it's important to ensure that
you don't lose them. If you need to add those people, you need to be
their most attractive option.

David BoyleAbout the Author:
David
Boyle, president of HR-on-Demand, has over 30 years experience in
designing and implementing strategies and tactics for outsourced human
resources expertise.

 

Share this

Latest Insights

Recent posts from our blog

How to plan for seasonal variances in your cash flow

Have you noticed unexpected seasonal variances in your company’s cash flow? If your business is seasonally-based (a lawn care or snow removal company, for example), it’s normal for your cash flow to vary depending on the time of year. Unfortunately, many companies who shouldn’t be affected by the seasons still experience peaks and valleys in […]

Organizational growth and restructuring: Is your business ready to take the next steps?

Are you planning to take your business to the next level? Before you start growing your company, you need to ensure that your organizational structure is prepped for this major shift. Don’t just jump in head first – make sure you follow our key prep tips to keep your growth sustainable and successful.   3 […]

Do you have a file you need to send to us? Would you like to make a payement?