Manpower was very much an issue at the World Economic Forum in January, where delegates from around the world pointed to a variety of demographic factors that will challenge businesses to find the skilled workers they need. Among those holding forth on the topic were executives from the company that is literally synonymous with the issue, Milwaukee-based Manpower Inc. CFO Michael Van Handel has seen plenty of changes in the labor market since he ascended to the C-suite in 1998, following stints as the company’s internal auditor and treasurer, among other roles. Given that he oversees the finance function at a business with 4,400 offices in 73 countries, and that will place more than 4 million people in a variety of temporary, contract, and permanent positions this year alone, he seems the ideal person to comment on the looming “war on talent” and its global implications.
Much has been written about the impending retirement of the baby boomers and the impact that will have on the labor force. Has it been overhyped?
No, it’s a real issue for companies because it comes in combination with an increasing demand for many different types of professional workers. We did a survey recently that found that almost 30 percent of companies would have hired additional workers in the preceding six months, if they could have found qualified candidates. We feel it ourselves internally, on the finance side. It’s not easy to fill positions.
How long do you see this tight market lasting?
Talent shortages, both in the United States and abroad, will continue for the next several decades. In fact, they will likely get worse as we see the demographic shifts continue to reduce the number of people willing and able to participate in the workforce, not just in the United States but in many other countries.
Seems a good time to be a skilled professional.
Employees are now in the driver’s seat in many occupations. Companies that want to retain people are going to have to address career-development issues, almost on an employee-by-employee basis. Employees really want to feel like they’re contributing to the company’s goals, and at the same time they want a stronger sense of their own career paths.
What has the impact of this talent shortage been on companies?
Our clients tell us all the time, “If I had more people I could take advantage of this opportunity, or I could grow the company faster.” One of the biggest shortages is in sales professionals. That’s clearly a revenue driver for most companies.
What are some steps companies can take?
Build more flexibility into jobs. If you can accommodate part-time schedules, remote workers, job sharing, and similar nontraditional work arrangements, you stand a better chance of retaining older workers or attracting retirees back into the workforce. It puts additional pressure on managers to oversee such arrangements, but that’s part of dealing with the talent crunch. Companies should also involve their human-resources departments in strategy sessions, and invest in training and internal development.