March/April 2005 VOLUME 121, NO. 2
human resources...
Coming Out of the Job Trough
by Gilly Hitchcock and Mike Luciano
Competition is heating up to attract the best and brightest talent, and there are some basic measures a company can take to increase its chances of finding the right person for the right job.
A few years ago if you asked anyone who recruited for the pulp and paper industry what the outlook for the future was, the reply would have been a collective “dismal.” But wait, something is different lately. Companies who have held back in making hiring decisions are suddenly in need of new, and in some cases, additional talent.
Those of us who have been in the pulp and paper industry for any length of time know how cyclical it can be, and it appears that it is starting to cycle up again. Sure, mergers and acquisitions are continuing and older mills and machines are still being phased out. But we are also seeing former closed mills being reopened, “boomers” retiring, rebuilds taking place, and the need for talented human resources getting very competitive.
However, the challenges in obtaining the right talent continue. Many of our best and brightest who were “downsized” found jobs in other industries, some supporting pulp and paper, and some not. New graduates who were frustrated obtaining a job in the industry because of the tightening of the hiring budgets in the past years also went elsewhere.
Aging Workforce. The workforce in mills is aging. The average age of employees has risen to the middle- to high-40s. It gets worse. By 2010 (five years if you're counting), 76 million baby boomers will hit retirement age. The United States will have 10 million more jobs than it will have workers to fill them because there are not enough Generation X, Y, or whatever the next new letter is to fill the gap. New talent would like to get in but Boomers are reluctant to retire because of the losses they took to their portfolios during the past stock dips and the increased cost of health insurance.
Company loyalty is different in this brave new world. Forty-plus years of service has gotten to be the exception and not the rule. The “new” employee has portable benefits, a need for flexibility, and new opportunities in things like biotech and pharmaceuticals.
All companies, not just pulp and paper, are going to be competing for the shrinking talent pool. Those seeking employment are looking for the best total compensation and benefit package and they are finding it either between rival pulp and paper companies or in other industries. Those companies who have not reviewed their compensation and benefit plans because of the tightening of the purse strings during the past years may need to take a closer look.
The main issue still remains that the technical talent is not keeping the pipeline full. Negative press about our industry has slowed enrollment into the pulp and paper programs. Those already employed in the industry call us for many reasons, including lack of growth opportunity, uncertain future, and salary discrepancy between them and their peers elsewhere. (Surprise! They do talk with each other).
Reversing the Talent Drain. Why do companies sometimes lose out attracting new talent? What we see for reasons include non-competitive salary, location, poor relocation packages, inability or refusal to negotiate, taking too much time to make a decision, counter offers from the current employer, fall outs that take place either after taking the job or just before, and lack of succession plans.
So what should be done? First and foremost, we all must make a concerted effort to encourage young people to enter the industry that many of us have spent decades in and are the third or fourth generation to do so. We need to address the “naysayers” and expound on the positives that this industry has done and continues to do for the economy of our respective states and countries.
Each of us should take some responsibility and work to help the industry image whether it is for the industry itself or at the educational or governmental level. Industry and the educational institutions must work together so that each one understands what the other requires.
Companies should review their hiring criteria and procedures as well as their compensation and benefit plans. They also need to take a second look before they discount the older job seeker. Their knowledge and work ethic may prove to be just what is necessary. There are many challenges out there and we must step up to the plate and meet them.
About the Authors. Gilly Hitchcock is president of FPC of Bangor, a recruiting firm specializing in pulp and paper placements, and Mike Luciano is a senior consultant with FPC.
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