In a recent series of discussions that were on LinkedIn a group was discussing the difficulties of hiring qualified mechanical engineers. There were interesting thoughts about why that is and some potential solutions.
In order to weigh in on the discussions and hopefully provide some insights I had to write a response that is about twice as long as is permitted for a response. Therefore, I have responded on my blog so if anyone that is interested in the reality of the situation, they can read it here.
The comment that there are not enough mechanical engineers is interesting. I would be interested in knowing how the writer of that comment arrived at that conclusion.
There are some interesting facts that have impacted what all of you are discussing. It is not only impacting your industries and companies but it is impacting almost every industry and company. The place to start is to define the problem properly.
Many of the Baby Boomers are retiring. They are leaving their careers at approximately 11,000 per day. There were 76 million Baby Boomers born. In the following generation there were only 38 million born. There is a shortage of experienced people in almost every industry and company that is either static or growing as a result of these demographic dynamics. The Department of Labor has been and still is predicting that by 2013 there will be approximately 6-8 million open professional positions in the U.S. without enough people to fill those positions.
This is leaving a void in positions where experience is required. The latest generation has many more people but they are 8-10 years away from possessing the kind of experience and extent of experience demanded for many positions. This adds to the confusion and frustration of the situation.
Most feel that because there are approximately 20 million unemployed people and another 10 million underemployed that the answer is to simply post a job somewhere and when the resumes come in the right person has to be there somewhere. For professional positions such a ME position, that is a false assumption.
The most recent numbers from the Bureau of Labor Statistics is that the unemployment rate for those 25 years old possessing at least a 4 year degree, is only 3.9 percent. That means the talent pool is almost non-existent.
The comment about receiving many resumes with none qualified is a common response we receive from companies on a daily basis. It is not unusual to be told that a client received 400-500 resumes for one position they posted and yet, there was no one in the group qualified. It is not surprising.
The other comment about the too narrow a criteria by HR is another problem in itself. The comment begs the question, why is HR determining the criteria for a position to begin with? That type of situation is a result of not solving the right problem.
For a manger or beyond they are engaged in achieving a specific set of goals for their area, department, division, and so on. All these add up to achieving the company’s goals and objectives. When there is a vacant position achievement of those goals and objectives are hindered, thus a problem. What is the solution to the problem? It is not taking a relatively generic job description and either running a posting or working with a search firm that will only take the job description and try to find in a data base or a job board someone that sort of meets that weak criteria. Again, we hear on a daily basis the frustrations and complaints that results are not there from many different avenues pursued to find the right person.
Let’s add on other piece to the puzzle that is critical. In the past number of years as companies have downsized, right-sized or re-engineered themselves, areas of companies are doing the same or more with less people. That means that those left have taken on new duties and responsibilities they did not have in the past. This has organically changed the positions in companies so they are more custom than ever. No two organizations are alike. As a result companies are having a hard time finding someone that can do all the things required in their unique organization.
Quite frankly, the former hiring practices of companies are no longer effective. There are several steps that companies have to take if they do not want to be one of the companies that are included in the ones that cannot find qualified people for their open positions. The comment I agree wholeheartedly with is the one about the slowing of growth and innovation. We are already having those discussions routinely with companies. However, that has to be taken one step further. The situation will eventually be that it may even be the difference between a company surviving or going under because of a lack of talent they need.
Some of the steps are that a vacant position has to be recognized for what it truly is, a problem to be solved not a vacancy to be filled with a warm body. Therefore, the solution to the problem has to be defined. The best person to define it is the hiring manager. First, they have the responsibilities to their area’s goals and objectives. They also are close to the position and know all the intricacies of the three dimensions of any position. They are the position which can be described as the basics such as the type of degree required, years of experience, etc., what would typically be found in the job description. The position challenges or the project challenges. What will this person have to face and be able to solve on a routine basis or assignment by assignment? Finally, what type of person will thrive in the culture? There are many, many more questions that have to be asked and answered to help the hiring manager articulate what is required in order to find the solution (the right person).
Second, knowing where to find and how to find the type of person in the position prescription is extremely important. To allow the hiring manager to do their job effectively the qualifying of the candidates has to be done effectively and to the point that only a couple of qualified people will be interviewed by the hiring manager. They all should be qualified so any will satisfy the need, but the hiring manager only has to determine which is the best fit for the position. All should be qualified to the point that it is known they will accept a fair and reasonable offer. Finally, if it is a relocation situation, it should already be known by the time the hiring manager interviews, they will relocate. These are basics and there are many, many details in between in order for this to be effective to the point of providing the right solution to the right problem. In a combined 50 years of experience, we have not spoken to many companies that are capable of accomplishing that effectively and consistently.
Third, companies have to change their hiring practices to make the second step happen on a consistent basis. The qualified candidates are not going to be coming from job postings and job boards. Qualified candidates are going to be coming from other industries with similar processes, technologies, and systems, etc.. They are also going to come from the company’s competitors.
In a burgeoning industry and startups the problem will be even more accentuated as they are growing fast and/or are an unknown quantity to a job seeker compared to established and well-known companies.
We are very comfortable with these facts as we do extensive research on the hiring environment in specific industries and the overall economy. On a daily basis we solve our clients’ problems of finding the right solution for the right problem. On a daily basis we have companies contacting us to discuss their difficult situations and seeking suggestions or solutions to the problems of finding qualified talent. We are also asked to help in transforming their organizations from a hiring organization with ineffective practices in to a recruiting organization able to attract and retain the vast majority of the talent they need.
I hope this provides some insight into one of the most serious problems facing companies and our economy today. Many are choosing to ignore this situation and continue to follow their same practices hoping for different results.
Please accept my apology for such a lengthy response but is it a very real problem that few are addressing with real solutions.
