November 2006: In this issue...

Where has all the experience gone?

By Ron Torch, CEO & Chief Marketing Officer - Torch Group Inc.

Short-term hiring freezes, coupled with a softening economy and an increasing number of baby boomers retiring long-term, have companies wondering where and how they are going to replace all that experience.

I recently met with executives from two major global corporations headquartered in theNortheast Ohioarea. Because of client confidentiality, I can't tell you who they are. But I can say that they --- as well as many other companies --- are concerned about our high-flying economy and where it is headed next year.

Even though the stock market is soaring to new record highs, we may still be headed toward an economic slow down next year driven largely by the slumping housing market. Nevertheless, executives tell me they think we'll see a soft landing for the economy in 2007. But a recent U.S. Commerce Department report said the economy grew by a paltry 1.6 percent in the third quarter, the slowest pace in more than three years. So hopes for a soft landing in the economy might prove more elusive.

Marketing and sales executives are telling me that the expected economic slowdown may mean they cannot justify hiring full-time employees, and may even have to start cutting jobs. The problem, of course, is that these company leaders still have important projects such as marketing research, new product development or segmentation strategies to complete to keep their companies competitive. Yes, executives can set priorities for those projects but they will land on the desk of someone who is already too busy to take on more work, and do it well.

The Big Question

So this brings us to one simple, but business-critical question - Where are you going to find the experienced people to plan and develop marketing and communication strategies and programs if, over the short term, the economy sours and prevents you from making new hires? And, over the long term, how are you going to keep replenishing the experience that the retiring employees are taking with them as they retire in 2007 and beyond?

Competition among corporations and other organizations for talented marketing employees with meaningful experience will increase as the talent pool shrinks. In 2007, we'll see baby boomers begin to retire, and more and more of them will be morphing into retirement over the next two decades.

A Possible Answer

Surprisingly, however, most retirees want to keep working, which will create a new pool of experienced and talented contractors and consultants to contribute to your marketing plans and programs and benefit your company if you know where to reach them and how to qualify them.

I personally think companies need to start rethinking their talent utilization strategy. At the Torch Group, we believe a talent utilization strategy should be a simple and flexible plan that can help your company identify and qualify talented mature professionals, who are becoming a fast growing group in the nation's workforce.

According to aPewResearchCentersurvey, a Washington, D.C.-based independent research organization, 77 percent of today's workers expect to work for pay after they retire. Of those who plan to work after retirement, most say it's because they want to, not because they'll need to. What's more, 79 percent of white-collar workers say they expect to do some kind of work for pay after they retire. Currently, only 12 percent of the nation's retirees are working for pay, but that number is expected to grow.

Moreover, the Pew Research shows that attitudes about retirement have changed. Because people are living longer, some say 60 is the new 40, when many professionals hit a successful stride along their career path. But I also think many people realize now more than ever that meaningful work can keep them active, involved and alive; not to mention helping to pay for the expenses, especially healthcare, of living longer lives.

An emerging trend

So what does all of this mean to you and what I predict will be your company's struggle to find experienced employees in the future? It means that starting in 2007, there is going to be an expanding pool of ready and willing consultants and contractors with tons of real-world experience and knowledge who can take on those strategies and projects that simply couldn't be done well by your spread-thin and less experienced staff.

This up and coming generation of retired professionals is expected to keep growing rapidly for 20 years, and more importantly, it can be a gold mine of talent. Because they have more time on their hands, they can work at the times you need them most. What's more, today's mature workers hail from a generation that has successfully adapted to changes over time. So the generalizations that mature workers may be too set in their ways… may not be willing to change…. just not with it… or not open to explore new ideas… are simply not relevant.

So, as you're completing your business plans for 2007, you may want to be among the first executives to take advantage of the new generation of marketing contractors and consultants whose lifetime of knowledge and experience can add real value to your department and profits to your company's bottom line.

You can start by giving me a call at 440.519.1822, or drop me an e-mail at rtorch@torchgroup.com. Visit us at www.torchgroup.com.

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We can help.

As acknowledged experts in the field of marketing and innovative talent solutions, we’re structured and poised to help you find that perfect CIO -- or complement your existing staff with highly-specialized marketing talent. Whichever way you go, Torch Group can be a valued partner to your company. We’re experienced in finding the talented full-time marketing professionals you need . . . or flexible marketing contractors and consultants if desired. Give me a call at 440.519.1822 or e-mail me at rontorch@torchgroup.com.

Ronald S. Torch
President & CEO
Torch Group, Inc.
. . . your source for marketing talent