July 17, 2007

The War for Talent

Fewer Employable People To Replace Aging Baby Boomers

2000 2025

35-54

0-34

55+

0-34

35-54

55+

New Generations Will Have Different Expectations

Generation X•1965 – late 1970’s

•Demand family-friendly workplace

•Paid time off

•Increased focus on balancing work life issues by men

•More concern with compensation/pay than job security

Generation Y•Late 1970’s – early 1990’s

•Grew up with technology

•Communication – chat rooms and cell phones

•Diverse generation

•Family important

•Fickle loyalty

•Prefer working in teams

Baby Boomer’s•1946 – 1965

•Least diverse generation (race and culture)

•Working beyond “normal” retirement age

•Sandwich Generation

•Job security and feeling safe

New Generations Will Be More Diverse

Labor Force Will Grow At Slightly Slower Rate Between 2004 - 2010

Cities with Highest Projected Job Growth

Metro AreaJob Growth 2003-2013

Las Vegas, NV 47.7%

Orlando, FL 31.9%

West Palm Beach, FL 28.7%

Ft. Lauderdale, FL 25.7%

Riverside, CA 25.6%

Phoenix, AZ 25.3%

Jacksonville, FL 24.8%

Tampa, FL 24.4%

Raleigh-Durham, NC 24.0%

Sacramento, CA 23.7%

Austin, TX 22.9%

Charlotte, NC 20.4%

Atlanta, GA 19.8%

San Diego, CA 19.2%

Washington, DC 18.5%

Dallas, TX 17.4%

Oakland, CA 17.3%

Miami, FL 16.5%

Denver, CO 16.5%

Orange County, CA 16.4%

Job Growth/Workforce Pool 2006

Bureau of Labor Statistics projects a 10 million person deficit in available workers by 2006

Job Availability 151 millionWorkforce Pool 141 million

Greater Demand for High Tech Skills

Brain Drain

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

1 2 3

Percent of total job growth, 1988 - 2008

1988 1998 2008

3.5%

4.5%

11.4%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

1 2 3

Percent of total job growth, 1988 - 2008

1988 1998 2008

3.5%

4.5%

11.4%

Greater Employee Demands

Flexible work hours Customized employment relationships More time off

Top Five "Very Important" Job Satisfaction Aspects for Employees by Age

Includes Generations X & Y

Includes Gen X & Baby Boomers

Includes Baby Boomers

35 and younger 36 to 55 56 and olderFirst Benefits 71% Benefits 69% Benefits 58%Second Compensation/pay 69% Compensation/pay 64% Feeling safe 58%Third Feeling safe 63% Feeling safe 62% Job security 55%Fourth Work/Life balance 62% Work/Life balance 61% Communication 49%Fifth Job security 62% Job security 61% Compensation/pay 48%

Source: SHRM/CNN Job Satisfaction Survey Report 2004

Increased Costs to Employers

Recruiting expenses

Benefit costs

Higher skill/Higher pay

Major Not Important

Specifically, employees in business, service industry, or other unspecified occupations (43–53 percent) were less likely than others to say their major field was very important 10 years later, while workers in education, health occupations, research or other professional or technical jobs, and engineering, architecture, or computer science (59–69 percent) were more likely to report this influence.

Conclusion: Employers can seek entrants from various

majors.

Some Universities Retreat

Seven state universities have eliminatedtheir risk management programs:

Utah, Michigan State, Arizona, ArizonaState, Oregon, Iowa and North Carolina

Student Perception

Student Perceptions of the InsuranceProfessional

Cory/Kerr/Todd

Spring 2007 – Risk Management & Insurance Review – Vol 10 Issue 1

Perception Issues

H.S students viewed insurance agentsas less intelligent than engineers,accountants and computer specialists.

College students attitudes were similarexcept insurance agents were on par with accountants.

What Can be Done?

Action Recommendation: Encourage field trips, conferences, the use of casestudies in business classes and coursestaken by business students in high school and college.

InVEST can help…..

www.investprogram.org