Herman Trend Alert: The Global Problem of Short-Term Employee Turnover
A major personnel cost for employers is the turnover of employees with less than one year of service. Research conducted by a number of companies shows that if an employee stays for a year, there is a strong likelihood that the person will remain with the company for a much longer time. Unfortunately, many employers suffer from a costly churning in their new-hire labor force.
Herman Trend Alert: Employees More Valuable than Customers
Recently, we heard about an employer who is a forerunner of what we believe is to come. A 120-person advanced manufacturing organization in Browns Summit, NC, literally fired its biggest client — refusing additional work. Sales with this household name client had grown rapidly to the point where they had represented 60 percent of the company’s annual revenue. Nuts, you say? Not at all — in fact, it may turn out to be a brilliant move.
Herman Trend Alert: Women will be More Desirable in the Workplace
More women are pursuing careers than ever before in history. Throughout the world, women are gaining more education, deeper wisdom and higher effectiveness than in previous generations. They compete successfully with men and, in many cases, prove their superiority. Increasing demand for highly competent women — as leaders, as professionals who can be counted on to get things done — will drive significant changes. Gender compensation equity is the easy response. Other changes require more creativity.
Herman Trend Alert: The Great Mismatch
Higher education has become more accessible to students in developed countries around the world. A university degree has gained status as a means of entry into more highly regarded careers. Families at all socioeconomic levels now strongly encourage their youth to attend 4-year colleges and universities, as well as to pursue graduate degrees. In many cases, the parents sacrifice so their children can attain levels of education beyond what had been achieved in the family before.
Herman Trend Alert: Bonuses for New Hires
Employers are becoming more aggressive in their pursuit of highly talented employees. Recruiting efforts are being stepped up. Once again, bonuses are being paid to new employees, just for joining the company.
Herman Trend Alert: Demographic Train Wreck?
Commentators, consultants, politicians, and others are talking about a “demographic train wreck.” They warn that employers will run out of workers to serve customers and make money for their companies.
Herman Trend Alert: Cynicism
The events of 9/11 had a serious and permanent impact on the U.S. psyche, creating a level of cynicism not seen since the Depression. As we transition into a stronger economy, it is interesting to listen to cynics, disbelievers, doubters and pessimists. Even though the positive numbers are becoming stronger — even in manufacturing, there are people who still think — and act — like the economy is in trouble and will not improve.
Herman Trend Alert: Small Businesses Hiring College Grads
Over the years, research has proven that the greatest growth in the economy, including hiring, comes from small business rather than large organizations. As small and medium-size businesses grow in response to demand generated by an expanding economy, they will need more talented and energetic people to join their teams.
Herman Trend Alert: States Will Compete for Jobs…and Qualified Workers
State government economic engines have never stopped running. Attracting industry to build the tax base and employment opportunities is vitally important. With business expanding, we will see significantly more activity in this arena, with intensifying competition between states—and counties and cities—to build stronger economic environments.
Herman Trend Alert: Domestic Job Growth
With the political campaigns heating up, expect to hear more noise about jobs going to other countries. Even with all the movement, only a small percentage of jobs have gone overseas.