23 August 2016

Ummm ……… the Solution Here Is Straightforward. Better Pay and Benefits.

Over at Aviation Week, there is much hand wringing over the fact that their workers are retiring, and they can't find replacements:
There are two statistics that haunt the U.S. aerospace and defense (A&D) industry when it comes to its workforce: 10% and 2.6%.

The first, according to Aviation Week’s 2016 Workforce Study, is the percentage of the overall workforce who were qualified to retire in the past year. The second is the percentage that actually did.

Industry faces a potential crisis in its workforce, just not the one that formerly predominated. For sure, defense prime contractors, OEMs and top-tier suppliers continue to fear the mass departures possible as the baby-boom generation begins reaching the traditional retirement age—65—en masse. At the same time, employers would like a little more actual turnover because they are eager to staff their companies with the new and younger talent offered by technology-oriented “millennials” because they fear losing those Gen Y workers to the lure of Silicon Valley.

“While retirements are of concern, so too is attrition,” the study says. “As the industry comparison illustrates, the attrition rate for A&D is low, with only the chemical industry coming close to a comparable rate.”


But the business risk of seeing so many skilled, experienced workers leave in a relatively short time remains a deep concern, and for good reasons that have been widely documented. According to a National Bureau of Economic Research July working paper by Nicole Maestas, Kathleen J. Mullen and David Powell, economies face a double whammy of lost productivity and lost labor capacity as working populations exceed 60 years old.
Gee you need something in short supply, if only there were some medium of exchange that would allow you to adjust the value that you assign to it based on that scarcity.

If you are losing skilled staff, then you need to set pay or benefits or job security at a level that will attract a sufficient number of skilled replacements.


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