Seismic changes in the racial makeup of the U.S. population have led to the American labor force’s incoming generation being the most diverse in history, while at the same time being the least educated, leading to a dire forecast for the nation’s global competitiveness. A group of panelists discussed this and other related issues at “The New America Policy Summit on the Changing Demographics of a New Generation,” sponsored by the National Journal Group in association with the Society for Human Resource Management (SHRM) June 17, 2010, in Washington, D.C. Pointing out that two-fifths of the Millennial generation, or Gen Y—the generation currently entering the workforce—is non-white, according to 2009 statistics, SHRM President and CEO Laurence G. O’Neil stated that the demographic change will “have huge implications for our workforce, our education system and our domestic policy.” He added that “SHRM’s 250,000 members, HR professionals from every industry, are on the front line of this change every day.” The panel exchange that followed included a presentation by William H. Frey, demographer and senior fellow for the Metropolitan Policy Program at the Brookings Institution, and lively discussion about education reform, workforce training initiatives and racial inequality in American society. Based on the 2000 census, the U.S. workforce (generally ages 25 to 64) is in the midst of a sweeping demographic transformation. From 1980 to 2020, the white working-age population is projected to decline from 82 percent to 63 percent. During the same period, the minority portion of the workforce is projected to double from 18 percent to 37 percent, and the Hispanic portion is projected to almost triple from 6 percent to 17 percent. By 2042, the U.S. population will be more non-white than white, making it a majority minority population. This demographic shift can be traced to two primary engines: Larger numbers of younger Americans are ethnic minorities, and increasing numbers of white workers are reaching retirement age, together making up the so-called “browning” and “graying” of the population. The aging of the Baby Boomers, who are beginning to enter retirement, and the influx of immigrants, mostly from Latin America and Asia, will generate major change ramifications to the labor force for years to come. “As these largely white Boomers retire, the working-age population will decline by about 5 million whites, and the rest of the working-age population will gain about 15 million minorities, 90 percent of which in the next decade will be Hispanics,” Frey said. The educational attainment of the fastest growing segments of the new labor force is especially startling. Just 39 percent of Hispanics in America in 2010 have a high school education, and only 13 percent are college graduates, with dropout rates in the Hispanic population particularly high. Substantial increases in those segments of America’s young population with the lowest level of education, combined with the coming retirements of the Baby Boomers—the most highly educated generation in U.S. history—are projected to lead to a drop in the average level of education of the U.S. workforce over the next two decades unless the educational level of all racial and ethnic groups is improved. The projected decline in educational levels coincides with the growth of a knowledge-based economy that requires most workers to have high levels of education. At the same time, the expansion of a global economy allows industries increased flexibility in hiring workers overseas. As other developed nations continue to improve the education of their workforces, the United States and its workers will increasingly find themselves at a competitive disadvantage, the panelists said. Businesses “are looking down the pipeline to see where they’re going to get their workforce, the skills that those individuals are going to have, what their success rates are going to be in post-secondary education, and they’re very concerned, because they do see the changing demographics,” said Karen Elzey, vice president and executive director of the Institute for a Competitive Workforce at the U.S. Chamber of Commerce. “The question is, What role can [businesses] play in being able to support effective policies that allow them to get their workforce here? If they can’t get their workforce here, they’ll go [elsewhere] and get it,” she said. Larger corporations are embracing the demographic changes, Elzey said. “They see the need to have a more diverse workforce and the value that a diverse workforce will bring to them in terms of the clients and vendors they are going to work with,” she said. Corporate America has begun to adjust to labor force changes with an increased use of contingent workers, telecommuting, and workplace flexibility and diversity initiatives, she said. On the other hand, American companies are struggling to find native-born workers with an expertise in science, engineering and math and “will look for the best and the brightest from wherever they can find them,” she added. Roberto Rodriguez, special assistant to the president for education on the White House Domestic Policy Council, addressed the Obama administration’s education and workforce reform goals, including pushing for 60 percent of the population to hold college degrees by 2020, a 20-point uptick from 2009 rates. “We clearly must do better,” Rodriguez said, by raising the bar of the quality of the workforce through strengthening workforce training and remediation for displaced workers and shoring up the nation’s community college system. |
With the rise of green consumers, many businesses have turned their attention to communicating their eco-virtues to these customers.
However, as companies vie for "greenness" among external stakeholders, they must not forget their most important audience -- their own employees.
It is well known that happy employees make for happy customers, because satisfied workers turn out the best product.
Companies compete on many factors to attract and retain employees, from salary, benefits, vacation, culture, etc. Today, the eco-friendliness of employers is increasingly impacting job satisfaction and employee recruitment.
More than ever, current and prospective employees are placing greater emphasis on how green their employers are, and companies that respond to this trend stand to attract and retain the best talent.
According to research by Harris Interactive, 36% of American workers would be more inclined to work for a green company, while 59% believe their companies aren't doing enough to improve environmental performance.
Research by the Kenexa Research Institute found that companies supporting sustainability initiatives increase employee engagement levels. These initiatives increase employee pride, overall job satisfaction, and willingness to recommend their employer as a good place to work. Another report from Brockmann and Company shows that companies with sustainability programs have higher customer satisfaction, higher employee satisfaction and higher revenues per employee.
Perhaps most importantly, research finds that younger employees are the most eager to work for eco-friendly companies. As our nation's demographics quickly change, companies will come under intense pressure to compete for these younger workers.
While the Harris Interactive report showed that 52% of baby boomers would like their employers to be eco-friendly, greater than 67% of Generation Y workers wanted the same. A MonsterTRAK survey showed an astounding 92% of young workers would choose to work for an environmentally responsible company.
As baby boomers phase out of the workplace, more and more workers will seek out green employers, giving these companies a competitive hiring advantage over their non-green competitors.
Moreover, the Harris Interactive report showed that nearly a third of workers would be willing to sacrifice salary for the satisfaction of working for a green company. Again, Gen Y workers align much more strongly on this point than baby boomers, with Gen Y workers willing to sacrifice 6.2% of salary, as opposed to only 2.5% for baby boomers.
This evidence makes it clear that companies must take their green marketing beyond their external audience and engage their own employees and potential employees. By extending green marketing beyond PR and into HR (human resources), companies will attract better staff, achieve greater worker satisfaction, and increase profitability.
To do so, companies must implement strategic communications plans for their HR audience, just as they would for customers. Effective worker-oriented green communications plans must provide clear direction, explain the personal stake each employee has in the program, make employees part of the process, and establish recognizable goals that can be rewarded.
By targeting workers with a green message, a business will attain the highest possible level of engagement among staff, earn a reputation as a green (and great) place to work, and achieve the strongest competitive position when recruiting the next generation of talent.
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