Despite economic downturn Washoe County businesses still struggle to find talent
In an AARP survey, Washoe County businesses identify finding employees with the right skills and qualifications to be their biggest worry when it comes to workforce concerns, with 58 percent suggesting it had been their top challenge over the last five years. Eighty-six percent (86%) said that they believed it is highly likely that they will experience problems finding qualified workers over the next five years. These were the top workforce challenges identified by employers, despite the current economic climate in the county and across the state according to the survey, The Boomer Factor: Rethinking an Underutilized Workforce in Nevada.
Remarkably, though finding qualified workers is of paramount importance, employer interest in retaining existing workers with the bulk of organizational knowledge is split with 50 percent surveyed viewing it as not important. Only 47 percent of all companies surveyed have any process in place to transfer worker knowledge when employees leave the company.
Additionally, more than two thirds (62%) of respondents said that their organization does not factor turnover into their employment costs at all. This despite the fact that when employees leave an organization, not only do they take with them the skills and knowledge that contributed to the operations, goals, profits and successes, their departure will cost the organization in replacement hiring, training new hires and lost productivity.
In a 2005 Towers Perrin report, turnover costs of average employees can be 50 percent of that employee’s annual salary. According to the Washoe County survey 38 percent of employers were not sure what percentage of human resource costs could be attributed to employee turnover.
“The AARP survey gives clear input to Nevadaworks that workforce training is critical to all individuals in today’s work environment,” said Tom Fitzgerald, Nevadaworks CEO. “Older employees with upgraded skills will continue to benefit any organization for many years to come. Nevadaworks encourages all employers to continue supporting training for their older workforce.”
As baby boomers leave the workforce, “brain drain” has the potential to become a serious problem for business. Worker shortages and challenges with retaining organization knowledge are already negatively impacting such industries as healthcare, engineering and teaching. The current recession gives business an opportunity to rethink their hiring strategies to gain a competitive edge in the future.
“Whether the economy is good or bad, employee retention is one of the most effective ways to keep the talent, skills, and experience in companies and organizations,” says Mike Rainey, Director of the Nevada Society of Human Resource Managers. “Today, employers have a "wider" selection of prospective employees, but the question remains are they skilled enough for today's jobs. Forward looking companies see the value of the 50+ worker and create innovative employment practices designed not only to attract but more importantly retain them.”