Overcome A Talent Shortage:

The 75 million baby boomers that make up 45 percent of the workforce are starting to retire—with a projected rate of 3 million retirees by the end of 2007. The mass exodus of boomers from the workforce only will continue to increase over the next 10 years. So, who will replace these retiring workers?

Logic would dictate that the next generation (Generation X, as they’re called) will simply step in and fill the newly vacant role but that is simply impossible. Why? Because the Gen X population—those individuals born between 1964 and 1977—totals a mere 45 million people. That’s a deficit of 30 million workers. As one economist from the Office of Labor Statistics notes, “more than 500 occupations will be adversely affected by the boomers’ departure.” It doesn’t take a rocket scientist to figure out that a worker shortage is on the horizon.

To make matters worse, retaining Gen X employees is a challenge that plagues many companies—including tanning salons. Research studies suggest that one in five Gen- Xers is preparing to leave their current job. In addition, Gen-Xers are leaving big corporations in droves to be entrepreneurs or to join smaller companies—even if it means taking a pay cut.

Statistics from LOOKING FIT magazine support the fact that many Gen-Xers are entering the indoor tanning industry—either as owners, franchisees or managers. According to exit polls and research studies, Gen-Xers are fed up with the mismanagement of top corporate officials, hierarchical politics, corporate ladders and the lack of job satisfaction and job fulfillment.

Gen-Xers nationwide echo the same message: They want a Gen-X friendly workplace. In fact, that is the key to retaining these skilled workers in your salon so you’re not left in the cold when the labor shortage hits. Following are four strategies that will enable you to attract the Gen-X talent you will need to stay successful and competitive in the years to come.

Focus On Collaborative Relationships

Gen-Xers grew up in social conditions that were very different from previous generations. Many were latchkey children and 50 percent were raised in single-parent homes. They often spent an excessive amount of time alone.

As a result, today’s Gen-Xers are relationship builders. In fact, this need for strong relationships touches every aspect of their lives—at home, at work and as consumers. Therefore, companies need to develop new communication models that include strategies for teamwork.

Unfortunately, many managers still don’t use their workforce to collaborate on projects, goals or the development of ideas. Instead, they use coercion or they dictate what is going to be done. However, that approach won’t cut it for the Gen-X workforce. Companies that retain these workers for the long haul need to take a collaborative approach to decision-making, problem-solving and product development. Gen- Xers want the company to do well, but they also want to be a strong voice in taking the company where it needs to go.

So rather than tell your Gen-X employees what steps to take to solve a problem, allow them to brainstorm with you to generate ideas. When you need to decide on a course of action, get their feedback on which option to pursue. Listen to what they offer and act on their input. Be open to what they say; often their insights will amaze you.

In the past, the boomers were interested in job status and climbing the corporate ladder. In contrast, Gen-Xers are interested in equality, flexibility and a lattice corporate structure. The Gen-Xer is not impressed with status symbols like title or position; rather, they want an uncensored corporate structure coupled with opportunities to learn new skills.

Therefore, rather than restrict your Gen-X workers from trying new things, encourage it. Offer them opportunities to learn new skills, to job-share and to assist in projects in other areas of the salon. Gen-Xers yearn for increased intellectual stimulation. If you keep them “in a rut,” doing the same thing day in and day out, they’ll quickly get bored. That’s when they start cyber-loafing and looking for employment elsewhere—or mapping out their own entrepreneurial vision, which could be in direct competition with yours.

Additionally, since Gen-Xers were raised in the information age, they expect to have the latest technology and tools to do their jobs. Remember, this group was the first to do its high-school papers on the computer, and it is technologically-savvy. Not providing the latest and greatest technology is equivalent to handing them the “want ads”.

Teamwork and the ability to bond with others is core to the Gen-X work ethic. While many organizations give lip service to team-building training and activities, most companies are rigidly bureaucratic and employees do not feel valued as a person. In fact, the “good old boys”, “bureaucratic cultures” and the “double standard” of yesteryear are seen as draining, egocentric and childish to Gen-Xers.

That’s why companies need to focus on creating a truly team-focused environment to keep these much-needed workers. For example, when it comes to leading Gen-X workers, managers need to do more than just manage; they need to work alongside the employees doing the daily activities. Assign teams within the salon to complete projects. For each new task or project, rotate the team leader so everyone has the opportunity to develop his or her leadership skills.

Additionally, have people work in dyads, where one team member helps another on a project to build internal working relationships. Allow the teams to self-manage. After all, you hired them because of their expertise, so let them put that expertise to work and see the project through from beginning to end. The more you allow your Gen-X employees to be a part of the team and to participate as equals, the more likely they’ll be to stay at your salon.

In most companies there’s no open debate, and employees always are “watching their backs.” They know that if they say something out of turn, they’re likely going to get projects they don’t want or they’ll get dinged on their performance reviews. Granted, some companies have attempted to create an environment of open communication; unfortunately, when employees do speak their mind, those companies still don’t listen.

Gen-Xers refuse to tolerate such an environment. They know it’s hard to be productive and motivated when trying to always “watch your back.” While previous generations tolerated office politics and egocentric executives, Gen-Xers respond by sending out resumes and seeking employment elsewhere.

To keep Gen-Xers on staff, you need to encourage debate and opposing views. Get people to open up, discuss problems and express opinions. Then, make sure the ideas and opinions are acted upon.

Of equal importance is the creation of an environment of instant feedback. Rather than force people to wait for feedback for days, weeks or until the yearly performance review, communicate regularly. Give updates on ideas that were generated, projects that were worked on and anything else that impacts the company or employee.

According to the U.S. Census Bureau, the number of small businesses is growing. Gen-Xers are starting to realize that smaller industries, such as the indoor tanning industry, offer more in the way of opportunity, job fulfillment and job satisfaction. As such, Gen-Xers are giving up the bigger paychecks that large companies offer for a smaller company that is Gen-Xer friendly and more aligned with their values.

The world is changing at warp speed, and Gen-Xers are at the soul of that change. So if your salon is to survive long-term and avoid extinction, you should become Gen-Xer friendly. 

Deanne DeMarco is an author of four books, a speaker and a corporate trainer. Her successful training programs are nationally recognized and utilize a set of strategies aligned with her GenXer Factor© Management Model in creating corporate cultures where people like to work. She can be reached at (866) 91-COACH or www.DeanneDeMarco.com.