Expert Advice - June 2004

On Your Mark, Get Set, Change!

Are You Ready for Tomorrow?

by Bonnie M. Houldsworth

Today’s business environment isn’t what it used to be, but it would be cliché to say that the only constant is – change. Regardless of how you slice it, two factors are unshakably certain: the landscape of business will never be the same again, and the same tried-and-true methods of getting your product or service to market will be unreliable.

The next decade will bring dramatic change to all aspects of the workplace, including: the demographics of the workplace and income distribution; white- and blue-collar jobs; and products and services. Furthermore, as we become even more technologically astute, methods for creating and increasing productivity also will become different.

How do you begin to change? Start by understanding your clients, customers, employees and the changing face of the workforce.

The Bureau of Labor Statistics indicates there are about 127 million working Americans, but in just four years, this number increases to 133 million. While the 25-to-35 age group decreases about 10 percent, the group composed of those 45 to 55 years old will be about 50 percent larger. Americans over age 50 will be among the wealthiest we have ever seen, controlling more than $87 trillion, or nearly 70 percent of the U.S. household net worth. White-collar jobs will comprise more than 60 percent of the workforce, significantly reducing the traditional importance of blue-collar jobs in the economy, and almost half of white-collar jobs will pay more than $40,000 annually.

According to the World Future Society, there has been a shift of 25 million workers from manufacturing and production jobs into service and information industries. At the same time, generational groups like Generation X and the Echo Boom have changing priorities in the workplace. As more firms and organizations strive to recruit younger employees, comprehending these two sectors is key.

Generation X (born 1965 to 1976), for example, came of age in times of recession, and experienced job restructuring and job scarcity before they even turned 30. Being the first technologically proficient, online and techno-savvy generation, they exude entrepreneurism as the American dream. The youngest work group – the Echo Boom – was born from 1977 to 1994, so this group’s eligible workers are now in their mid-20s. The Echo Boom generation is more relaxed about the corporate world than their Gen-X counterparts, but they will shape the workforce on their own terms and enter it with high expectations.

While this information probably comes as no great surprise, it does prompt the business professional to reconsider and redefine the way his or her company or organization recruits and retains employees. Some of the changes employers may soon face include:

More emphasis on job performance and less on college education.

Career paths will be less predictable and jumps within companies will be the norm.

More fluidity in assignments and less written job descriptions.

Praise and reward will be mandatory and immediate.

Fewer regulations like dress codes and a set start- and quit-time.

Moreover, managers will coach, motivate and empower. They will direct less and less. "Bosses" will become team leaders of self-directed teams. To lead, they will need a blend of instinct, on-the-job learning and patience.

While these observations may sound good on paper, reality is a different animal. To anticipate change, begin by assessing your company’s ways of conducting business, then determine how your management style might mesh with the changing workforce. Write down ideas about how you can change for the short- and long term, and ask each of your key managers and employees to do the same.

Anticipating – even embracing – change will help you make the most of it.

Bonnie M. Houldsworth
Bonnie M. Houldsworth is the founding partner of Houldsworth, Russo & Co., a Las Vegas-based firm that provides accounting services to clients.