ERMUSR MICS.ITEMS 11-12-2003 - Laserfiche WebLink

Home Browse Search

The Kiplinger Letter FORECASTS FOR MANAGEMENT DECISIONMAKING 1729 H St. NW, Washington, DC 20006-3938 • KiplingerForecasts.com •Vol. 80, No.41 Dear Client: Washington, Oct. 10, 2003 More hiring, starting next spring, INSIDE THIS LETTER spells more job options for workers. • After three years of issuing pink slips, Politics Calit, Democrats on taxes businesses will once again be on the prowl Business Law High court cases for good workers. And in a rejuvenated economy that will create about 100,000 jobs a month, Asbestos Claims No trust fund employees may see greener pastures elsewhere. Cost of Living Inflation outlook LABOR Your key workers will be most tempted. Energy What you'll pay this winter MARKETS Middle managers, top sales performers and people you rely on to run your computers Health Care Medicare,reservists will seek higher pay and better opportunities. The Economy A weaker dollar Most squeezed: High-tech electronics, nanotechnology, biotech, medical equipment Mideast Politics Tackling Syria and computer firms. Plus many manufacturers. Current shortages of skilled workers will become more severe. Especially hurt: Steel. Power plants. Automakers. Telecommunications. Food processors. Health care providers. Trucking. Drug and RV makers. Taking steps now to hang on to employees is bound to be scary. It may mean absorbing higher costs before business really picks up. But it will pay off later in fewer headaches and lost chances. Consider raising salaries. Compensation is the No. 1 gripe in surveys of workers who have had three years of raises averaging 3.5%. That's a sharp shift from previous recoveries, when the chief motivators for job-hopping were lack of advancement chances and dislike of bosses. Target bonuses to make better use of meager compensation budgets. Base them on merit and achievement and not just on length of service. Now is the time to let valued employees know that you appreciate them. Try not to overburden your workforce with health insurance costs, even if it means swallowing more of a double-digit hike than you'd like. Make flexibility the watchword for revamping benefit plans. "One size fits all" can't meet the needs of three generations of workers. Most desired: Infant and elder care, career development and tuition aid. Offer part-time work to older employees who want to ease into retirement. Remember that turnover can also be an opportunity for a company to bring on board new talent with fresh ideas and skills it now lacks. So get back in touch with old networks and rev up the recruiting engine. And plan for the long haul. The shortages won't go away. Baby-boomer retirements, lower birthrates and new limits on immigration in the wake of 9/11 all point to a scarcity of workers for years to come. At current graduation rates, colleges will award 7 million fewer degrees than will be needed to replace 8 million graduates who will likely retire and to fill the 22 million white-collar jobs that will be added by 2013. The Hip4tger Lefler OSSN 1528-71301 Is Published weeny kr Winne year,$15Awo years.5.22 Three years Subscnp6on inquiries:800-544-0155 or subservietili tiger e, by The Kip'Inger Washington Editors.1729 H St..NW.Washington.DC 20006.3938. POSThab Postagemi a at Washington,DC. Editorial ets@klla110n: Tel,2028B76a62;Far.N2-1188918; POSTMASTER'.Send address mangos to The Kirsiniger Loner,P O.Box 3295,Harlan.IA 51593. email Iefte,s,akkipAngeiOJm:of Web Si19.K1p5rgerfursuasts.mn