A few days ago, my team at Solutions 21 came across an article by Korn Ferry entitled, “Future of Work: The Global Talent Crunch,” and sent it my way. Given the nature of the article, I was intrigued.
I flipped through the first few pages and began reading…
“A major crisis is looming over organizations and economies throughout the world. By 2030, demand for skilled workers will outstrip supply, resulting in a global talent shortage of more than 85.2 million people.”
“Left unchecked, the financial impact of this talent shortage could reach $8.452 trillion in unrealized annual revenue by 2030.”
The article is 45 pages long. But after reading only the first two paragraphs, I felt… excited!
Not how you are feeling? Let me help calm your panic.
At Solutions 21, we have been in the forefront of this demographic shift for years. Our Founder and President, Buddy Hobart, has written five books on this very subject, highlighting the importance of organization’s developing their bench strength since we are entering an unprecedented time in history.
Here are the rough statistics:
There are 78 million Baby Boomers (1946-1964) in the world. According to the AARP, 10,000 Baby Boomers are turning 65 every single day, and this is expected to continue into the 2030s. This means that nearly seven baby boomers are reaching retirement age every minute.
There are 60 Million Gen Xers (1965-1979) in the world.
Quick math: 18 million person gap.
This gap is important.
First an foremost, the gap is important because the Boomers who are reitiring and vacating these roles are leaving with years of institutional capital and industry knowledge – something that cannot be replaced with a snap of the fingers. And while the modern workforce has always experienced turnover, today’s rate and numbers are unlike anything that the workforce has ever seen.
Let me give you an example.
A client of ours is going to be losing 65% of their sales team that makes up 80% of their book of business in less than 5 years.
Read that sentence again.
This situation, like many others we help organizations with, is complex. It is not something that can be solved by a solid internship program or stellar recruiting department alone. The solution must be more comprehensive and dynamic – think puzzle pieces – and it must provide insight into the day-to-day challenges that the organization is facing. Now.
Remember how I said I was excited before? Here’s why:
The rules of this game are pretty simple. The organizations who are adapting and developing their strategy to attract and develop their emerging workforce most efficiently are going to be better equipped to capture this “unrealized output” that the Korn Ferry study references. There is an unprecedented opportunity for every organization to attain a competitive advantage over those who choose to turn a blind eye to this research.