Adecco Talks: Common mistakes made when managing temporary workers and the big changes since Boomers began working

What’s changed since Baby Boomers first entered the workforce?

When Baby Boomers joined the workforce in the 1970s and 1980s, they faced a much different labor market than workers starting out today. In both big and small ways, these key trends have reshaped the world of work:

Labor force participation
The labor force participation rate has declined, particularly among men, and the number of people not actively looking for work has increased.

Starting work later in life
Younger generations are starting work later and are more likely to find careers in office-based jobs requiring a college degree. Critical industries like food service and skilled trades are already experiencing shortages.

Retirement
Baby Boomers are now retiring in large numbers and leaving behind a workforce that is not keeping pace with the US population growth.

Addiction and incarceration
Unique challenges, including the impact of addiction and incarceration on working-age men, are disproportionately affecting the labor force.

Transfer of wealth
The transfer of wealth from Boomers to Millennials may reduce the motivation for younger generations to participate in the labor force. 

Read more of our advice on managing a multigenerational workforce.

Common mistakes employers make with hourly workers

When 40% of the US labor force is made up of hourly workers, not paying attention to the entirety of your workforce can cost you in turnover.

When salaried employees are exclusively prioritized, employers are likely to be mismanaging their hourly workers. They’re also jeopardizing their budgets, because costs rise when companies fail to acknowledge low-wage workers’ contributions.

These can include:

• Stagnant or lower productivity
• Lower retention
• Higher absenteeism
• More overtime
• Damaged reputation
• Decline in client goodwill
• Loss of institutional knowledge
• Lower morale
• Less revenue
• Recruitment and training of new employees

Organizations have long viewed hourly and contingent employees as replaceable, assuming that low morale and high turnover are unavoidable.

At Adecco, we know that’s not true. Some of the most common mistakes employers make are that they:

• Don’t realize temporary workers want to stay with them
• Minimize the importance of location and stability
• Underestimate workers’ goodwill
• Leave workers to initiate career discussions
• Disregard their strategic importance

Employers should also understand the actual cost savings for them when they support temporary workers, recognize the challenges they face, and offer skill and career development opportunities.

Additional trends we saw:

• Unemployment edged up slightly to 4.2%
• After disruptions from hurricanes and the Boeing strike in October, the labor market rebounded with 227,000 jobs added in November, signaling strong recovery
• Wage growth, 4% year-over-year, was slightly above expectations, reflecting continued pressure for higher pay amidst inflation concerns
• Retail job losses may underline structural shifts, with e-commerce impacting traditional hiring patterns
• Strong gains in healthcare and leisure sectors reflect underlying demand for essential services and recreational activities post-storm recovery

Let’s talk more!

Struggling to manage a diverse workforce? We have the data and the experience to help as you find the right tools and programs to attract and retain great workers for all types of roles.

Contact us today to discuss your unique challenges.