Brain Drain Essay -- essays papers

Brain Drain One of the major concerns of today's companies is the shortage of labor, especially in management. The baby boomers are nearing retirement age in the United States and the birth rate is dropping. These circumstances, coupled with the booming economy are the main causes of the labor shortage. There is a high demand for labor but the once seemingly bottomless pool of employees and managers that companies drew from has started to dry up. What are the factors that contributed to the problem and how are today's corporations going to handle this problem? The type of labor needed in today's society has been undergoing a constant change. There is an increase in demand for workers but there is a much greater demand for educated white-collar workers, especially management material. Projections state that the growth in managerial positions will increase 20% by the year 2010 yet the population aged 35-50 will decrease nearly 10%. What these figures say is the already diminishing supply of executives is going to dwindle even more over the next 10 years. There is a shortage of blue-collar workers now and there will also be an even greater shortage of them in the future. In order for employers to find people who are willing to perform unskilled, repetitive jobs they are going to have to be willing to raise the level of compensation offered to employees. If McDonalds needs someone to flip hamburgers they better be prepared to pay double to triple minimum wage. There are a wide variety of employment opportunities and today's workforce can afford to be selective when choosing a job. The demand for employees is high while the supply is low. The figures on the change in average population ages and growth in industrialized nations is beginning to make the corporate world stand up and take notice. If the trends continue as they have been for the past thirty years, the shortage of labor is going to continually get worse with each year that passes. The predictions from the United States Census Bureau state that between 1990 and 2000 the increase of the American population over 60 will be 10.5% but in 2010 to 2020, the increase will be 32.5%. The change in the 60 plus population in the United States is projected to nearly triple in thirty years. Compare these figures to the increase in under sixty-year-old population. From 1990 to 2000, t... ... the economic obstacles caused by an aging workforce. The companies of today are aware of the constantly growing problem and are working towards a solution. I think that they are moving in the right direction. Offering flexibility in what was once a very rigid structured hierarchy is certainly a step in the right direction. People in today's world lead very different lives than they did 4o years ago. A rewarding profession is not exclusively defined by the income generated anymore, rewarding can also mean personally rewarding. A good employee doesn't necessarily work 40 hours each and every week, some work part time or are involved in a job-sharing program. In order to keep the workforce meeting the needs of the economy, the employer must continue to become more flexible and remain open to suggestions. Today's companies are on the right track. I believe that with proper management and forward thinking, we will be able to cope with the ever-increasing shortage of labor. Bibliography: Center for Strategic and International Studies Newsweek magazine Business Week magazine The Economist magazine St Petersburg Times Newspaper The United States Census Bureau