40 Percent of the Fortune 500 Won’t Exist in 10 Years Due to Gen YJanuary 13th, 2012
Okay…so for over 5 years companies have been hiring me to conduct presentations about how to manage, recruit and retain Millennials (aka: Generation Y). And, as an expert, they also hire me to conduct training workshops for Millennial employees that cover leadership, business etiquette, generations at work, communication and personal branding for career success. BUT, according to an article I came across yesterday, it looks like I might see an uptick of even more Fortune 500 companies contacting me.
Why? Well, according to the article entitled, “Gen Y Traits in the Workplace Unveiled” by Kristin Burnham, she shares:
Millennial Branding together with Identified.com, studied 4 million Gen Y Facebook profiles to obtain better insight into how members of this generation operate professionally-a topic of increasing importance as they are projected to make up 75 percent of the workforce by 2025.
According to the study, only 7 percent of Gen Y reports working for a Fortune 500 company-a statistic in line with another report that predicts that 40 percent of the Fortune 500 will no longer exist 10 years from now.
So, where are they going to work? The article states:
Instead, Gen Y workers are turning to startups in which the hiring process tends to be much quicker than that of the Fortune 500, and where Dan Schawbel says Gen Yers feel they can make more of an immediate impact.
While Gen Yers are turning more to startups for employment, they’re also branching out on their own in what Schawbel calls an “unprecedented entrepreneurial spirit.” “Owner” is the fifth most-popular job title, trumped by “server” (No. 1), “manager” (No. 2), “intern” (No. 3) and “sales associate (No. 4).
Retention is also a challenge with Gen Y because according to the report, they only average 2 years at their first job.
These are serious statistics and facts that large companies need to be aware of. If 75% of our workforce is going to made up of Millennials by 2025 (that’s only about 10 years away!!) companies need to start preparing NOW for a solid recruitment and retention plan of talent. I’ve been preaching this for a long time and the smart companies are already doing everything they can to retain their younger talent because they know their companies’ future well being NEEDS younger talent now, and they need to groom them for future leadership positions.
On average, 1 Boomer is retiring every 8 seconds, so companies are also scrambling to retain their employees who are 55+, too. NOT every Boomer was affected by the economic downturn so we have millions of them who CAN retire comfortably at 60-65 years old but companies need their expertise and knowledge to help the younger employees grow.
I’ve written TONS of articles, and have been interviewed by countless media, about these topics because it’s ALL true. But I also find many companies still have their head in the sand and suffer from denial. I have endless research material on the labor shortage the US is facing, and it’s based on the perfect storm of birth rates, Boomers retiring, etc. The numbers don’t lie, people!
Sure, because of the current economy it’s still an “employers” market…however I’ve been warning executives in my seminars that it will change soon, and the competition for talent is going to re-ignite and then it will turn into an “employee” market again and employers will be begging for top talent…and employees will be in control of the whole enchilada.
EMPLOYERS: Start planning NOW and get ahead of the curve…and if you’re a Fortune 500 company, as many of my clients are, YOU really need to take all of this seriously!
Bye for now,
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