Just one calendar day separates 2014 from 2015, but the face of the workplace is going to be much changed in 2015—much younger. This is the year that millennials will outnumber baby boomers in the workplace. (And for the third of you who already report to a younger boss, check out our Orange County Business Journal article about how to work with younger bosses in 2015.) This year, the majority of the workforce will be in their 20s. And by the end of 2015, Generation Z (born 1994–2010) will be graduating college, ready to enter the workforce.

How is this changing landscape expected to affect workforce trends for 2015?

• The skills gap is (still) widening. It’s a sad statistic that, while more than half of recruiters say they can’t find qualified candidates, one-third of college grads ages 25–29 are moving into low-skill jobs after graduation. Worse for recent college grads, 5 percent are unemployed, and 16.8 percent are underemployed. How is this possible with literally millions of jobs available every month? College students are graduating without the skills sought after in the real world. That means the skills gap will continue to gape until colleges and companies work together to identify curriculum that is relevant to the current job market. (Sorry, liberal arts majors.)
• But the wage gap is closing. It may not be until 2016 that the wage gap disappears, but female millennial workers now earn 93 cents for every dollar their male counterparts earn. As male baby boomers retire, well-educated millennial women are rising to take their place. More young women are also choosing long-term career commitments, which will allow them to step into leadership positions.
• Generation Z is taking on internships. If you’re still trying to figure out the millennials, brace yourself for Generation Z. These digital natives have never known a world without the Internet, text messaging, and tablets, rendering their level of tech sophistication even more expert than the millennials before them—and they’re going to be your interns this summer. If that’s not scary enough, high-profile companies such as Facebook, Microsoft, and Lockheed Martin are looking to recruit high school students for internships. This early recruitment may work to foster young talent and to bridge the skills gap.
• Succession planning is inevitable. With 10,000 baby boomers retiring every day, younger workers must be prepared to fill leadership positions. Many companies are building mentorships by hiring their recently retired leadership back as consultants. In fact, 65 percent of workers plan to work for pay in retirement, which will allow critical knowledge to stay within companies as it is passed on to the next generations.

Here at YES! Your Human Resources Solution, we’ll be keeping an eye on these trends to see how they unfold this year!