Blog: Todd Palmer

Todd Palmer is our guest blogger this week. Todd founded Diversified Industrial Staffing, a company that provides staffing for manufacturing, construction and logistics businesses, and Diversified PEOple, a professional employer organization for small businesses. He sits on the board of directors for the Detroit Chapter of Entrepreneur’s Organization, and is a recent graduate of the Birthing of Giants class held at MIT. 

Check back each week day to read Todd's thoughts on keeping, identifying and attracting talent.

Post No. 4

With how lay offs are being heavily touted in Michigan, it seems like there's no sign of things improving anytime soon. That's not true. In fact, all signs point to, believe it or not, a shortage of employee talent in the upcoming years. Instead of no jobs, we will have a major labor shortage on our hands. Why?

Generation X and Generation Y do not have a great interest in working with their hands, like the baby boomers did, and the baby boomer generation is getting ready to retire. Furthermore, Job candidates become confused when they hear about the outsourcing of labor jobs. Companies still need the skilled trade's people here in the USA. Companies are outsourcing the low skilled/semi skilled jobs, not the higher skilled, higher paying jobs.

Already I am seeing the effects of this generational gap in my work. I search daily to fill openings in several areas, including skilled trade's machinists, machine repair people, and machine builders, because the older workers are retiring and there are very few young workers available to replace them.  

Conversely, even when the young skilled-labor workers are available, some companies might be hesitant to bring them on. Hiring managers are often reluctant to recognize that employees aren't going to only work for 1 or 2 companies over the course of their career.  Many clients we work with feel that someone should be "loyal to the company".  That is completely outdated thinking. Generation's X & Y think its normal to move jobs every 3 years, or so.

These companies will have to change their mindset when their standards make it impossible to find good candidates over the upcoming years. But by then, it may be too late, as the companies reputation is sullied by their unreasonable standards. Nothing attracts talent as well as word of mouth from satisfied employees.