Close the Talent Gap
With many veteran project managers retiring, how can organizations make sure the next generation of project managers is up to the job?
21 June 2011
The numbers say it all: A talent gap is emerging in project management.
Project professionals around the world are approaching retirement age and there’s a very real possibility that they could take a font of knowledge and expertise with them. And that’s putting several established economic powerhouses in a tough position.
In Japan, the working-age population shrank from 87 million in 1995 to 81 million in 2010.
Germany’s economic boom, meanwhile, may be hurt by a shortage of engineers, with an estimated 80,600 open jobs in the profession in February, according to the Association of German Engineers.
In the United States, an average of 1.2 million job openings will be available each year in project-oriented occupations through 2016, according to a 2008 study by the Anderson Economic Group. Workers leaving the profession, likely due to retirement, will cause about 17 percent of those openings.
And even with many project professionals delaying retirement due to the financial crisis, the need for project managers through 2018 will grow faster than the average for all other occupations combined, according to the U.S. Bureau of Labor Statistics.
To minimize the effects of the looming talent gap, organizations must invest in training and education for their younger project professionals, says George Phipps, PMP, integration team lead at the University of British Columbia and professional strategy coach for Phipps Training Services, Vancouver, British Columbia, Canada.
Organizations should also reevaluate some of their existing talent management practices by creating recruitment and retention strategies, including defined project management career paths and hiring retirees as consultants, Mr. Phipps says.
“The younger generations of employees are more focused on work-life balance and joining organizations that will support their personal growth and development,” he says.
One of the best ways for organizations to groom new project professionals is through mentoring programs, says Jason Hill, PMP, founding partner, Sound Advice Consulting Services LLC, New York. The relationships give younger project professionals access to the organizational and professional knowledge that senior staff has accrued through years of experience.
Veteran project managers can also help by advising management about how to best leverage the new generation of project talent, says Luis Augusto dos Santos, PMP, a São Paulo-based trainer and consultant for the International Institute for Learning and professor at Centro Universitario FEI.
At the same time, younger project managers should continue to invest in their own education and training to maximize their own career potential, Mr. Hill says.
“Organizations are less tolerant in the current economy and don’t have the capacity to get that work force up to speed on industry practices,” he says. “They need employees who can walk in the door and be up to speed.”
The talent gap will affect organizations in different regions in different sectors in different ways. But every organization should go in with a strategic talent acquisition plan to overcome this resource challenge — or face the demographic consequences.
