BY WALT McFARLAND AND KATE MORSE


Facing a shortfall of as many as 10 million workers, the U.S. workforce will encounter a talent drought of epic proportions by the end of the decade, according to the Bureau of Labor Statistics and the Employment Policy Foundation. Social networking vehicles like MySpace, Facebook, LinkedIn, and even the virtual world Second Life are being used to provide recruitment and corporate information.

A recent survey of 150 Fortune 500 companies found an average expectation of 33 percent turnover of executives within the next five years, while one-third do not believe they will beable to find suitable replacements.

To address the problem, many organizations are focusing primarily on recruiting and retaining young talent, creating an influx of Generation X and Y employees in the workforce. With this new source of talent comes the challenge of managing a workplace with four distinctly different generations of employees--Traditionalists, Baby Boomers, Generation X, and Generation Y--each with unique characteristics and beliefs about work. As a sizeable population of senior leaders prepares to retire, organizations need to quickly develop new leaders to fill the gap. However, some traditional leadership development techniques are not sufficiently flexible or rapid to meet the needs of the diverse mix of employees within many organizations.

In order to remain competitive, companies must re-think the methodical and hierarchal progression of leadership development and find ways to accelerate the advancement of highpotential performers.

DEVELOPING THE NEXT GENERATION OF LEADERS
In organizations where top executives might be preparing to leave, there is a need to guard against a drought of suitable replacements. Focusing solely on the employee's current role--a practice that is commonplace in many companies--limits the ability of the employee to grow beyond the demands of the job at hand, and limits the development of key competencies thatcan be useful to both the employee and the organization as a whole. Leadership development and succession planning skills from the employee's point of entry are critical components to navigating change and require using rigorous methods to quickly accelerate the next
generation of senior management and C-level leaders.

Often, organizations trust that high-performing juniors will organically develop the new skills that they need after being promoted. But it is a mistake to assume that a whiz-kid technical expert is going to automatically know how to mediate a disagreement between two direct reports. Senior management should help junior employees succeed in leadership positions by assessing leadership competencies and helping employees develop the "soft skills" (e.g.,listening or providing feedback) required of successful leaders. While many high-performing employees have impressive resumes and education, many have not had the life experience that cultivates these leadership skills. This development needs to be ongoing through a series of formal sessions, structured mentoring, coaching, performance evaluations, and participation in decision-making situations--until the new manager is comfortable and competent enough to contribute effectively. Some companies have gathered 10 or 12 organizational leaders and as many young high-potential employees for 10- or 15-minute sessions in a format similar to speed dating. This gives the young employee broader access to senior leaders and establishes a network within the company of high-potential leaders at various levels.


FROM HIRE TO RE-HIRE
Traditionally, businesses have sought employees who would follow a "hire to retire" career trajectory, yet younger generations do not fit that mold. Generation X and Y employees are more likely to change jobs within a few years, especially if they do not feel as though they are being engaged, creating meaningful impact, and being challenged in their current positions.Instead of adopting a reactive stance when employees pose a flight risk--counter-offering or attempting to negotiate with a departing employee--organizations should actively develop relationships with junior employees much as colleges and universities do. Some companies involve parents in the interview process or hold "Parent Days," reasoning that it's easier to recruit talented young employees if family members are enthusiastic about the company. Developing peer groups and organizational alumni networks can also help maintain relationships with employees who have left the company. Not only does this bond the employee to the organization and leave the door open for return, it also maintains a positive image of the organization that increases the likelihood of referring friends and family.

PeopleSoft keeps in touch with its former employees through its Alumni Network program. The professional networking group was founded in 2004 and has over 1,500 members on LinkedIn and over 1,100 members on Yahoo! Groups. Former employees can log onto the alumni website and connect with a network of former PeopleSoft employees across the country.

TALKING THEIR WALK
Speaking the language of employees or candidates and reaching out to them in new and innovative ways can make these individuals feel engaged and understood. Generation X and Y employees and prospective hires aren't interested in mugs and stress balls with the organization's logo. Recognizing this, companies like J.P. Morgan are giving candidates a URL where they can go and vote on where to donate the $75,000 that would have been spent on such a program. Other organizations stress the importance of certain compensation, benefit, and cultural aspects, such as work-life balance, affinity groups, diversity, and sustainable practices. This reassures both new candidates and existing employees that the organization shares similar value systems.

Savvy organizations are also getting creative in their outreach. For example, Ernst & Young has opted out of paper brochures in favor of handing out flash drives that create a more exciting, multimedia experience. Entrance interviews can now be used for more than just sizing up a candidate--this channel is an opportunity for market research. Data about the employee, his or her goals, background, and affiliations can help companies tailor the messaging and focus of recruitment campaigns to find other similar employees. This information can also ensure that the company provides employees with the opportunities that may increase retention.

Technology has also created new recruitment and communication opportunities. Social networking vehicles like MySpace, Facebook, LinkedIn, and even the virtual world Second Life are being used to provide recruitment and corporate information. Companies like IBM areusing Second Life to host events for company alumni, allowing them to connect within the virtual interface. More static sites like MySpace, Facebook, and LinkedIn allow deep networks of contacts to connect and communicate with each other. Some companies also use YouTube to post training and recruitment videos. With MySpace page views reaching more than 64 million unique users logging on for 45 billion page views in mid-2007, sites like these are exceptionally low-cost ways to reach vast numbers of potential candidates.

TOOLS OF ENGAGEMENT
It's a mistake to marginalize Traditionalists and Baby Boomers, assuming that their contributions will end at retirement. Companies that move all of their communication to Facebook, YouTube, and text messaging will face resistance from seasoned employees who may not be comfortable with these tools. Keeping these experienced employees engaged could mean keeping their talents for years beyond traditional retirement age through continued full-time work, part-time work, or consulting arrangements.

The question is how to do so. While new recruitment and communication opportunities should not be ignored, companies also need to foster interaction between multiple generations and create inclusive environments. It requires regular interaction between employees and managers who have different communication styles. This also makes employees more effective when dealing with diverse customers, vendors, and colleagues.

Affinity groups and work teams should be multigenerational and have appeal to Baby Boomers and Traditionalists as well as younger generations. When more experienced team members feel like valued participants, they will be more likely to continue to contribute their expertise both formally--in the role of part-time worker or consultant--and informally, as advisors or
subject-matter experts.

For decades, research by David Sirota and others has shown that employees are consistently motivated by equity, achievement, and camaraderie, as well as influence and respect. Changes, however, are occurring in attitudes toward work, according to technology preferences and life stage. More than ever, employees have options to achieve their career goals and objectives. They are interacting and communicating in different ways and expect the companies for which they work to adapt to these changes. The key for organizational success in developing and retaining talented employees is to create a flexible collection of communication, development, and retention tools that work for multiple generations. MW


GenerationY Born: Between 1977 and 2002 or between 1978 and 1989, depending on the source
Traits: Focused, optimistic, and used to being heavily supervised. Extremely tolerant of differences. Team players.

Generation X Born: Between 1965 and 1981
Traits: Highly educated, smart, independent, entrepreneurial, but often feel misunderstood. Seeking an integrated approach to their lives.

Baby Boomers Born: Between 1946 and 1964.
Traits: Survivalists, cynical, hardworking. Typically the first to arrive at the office and the last to leave the office. What matters most to them is respect.

Traditionalists Born: Prior to 1946
Traits: Loyal, team player, respectful of authority. Follows established policies and procedures.Impatient with workers unwilling to make sacrifices. Needs "face time," less willing to rely on electronic modes of communication.

Walt McFarland is a vice president, human capital and learning practice, and Kate Morse is a senior consultant,
at global strategy and technology consulting firm Booz Allen Hamilton.