I’m reading Sylvia Ann Hewlett’s “Off-Ramps & On-Ramps”, a book about the impact of the traditional workplace model on the talent pool. A few remarkable statistics caught my eye and underscored the atrocious problem with the U.S.’s less than flexible workplace norms.
A full 67% of “highly qualified” women and 24% of “highly qualified” men off-ramp (drop out of the labor pool) or take the scenic route (switch to part-time or contract work) at some point in their lives. They do so for pull reasons (family needs) and push reasons (work issues). Of those who off-ramp, 45% of women do so to take time for children and a full 52% do so because their career is unsatisfying or they feel stalled. For men, the main reason is career repositioning.
The average time out of the labor pool is only 2.2 years.
Here’s the scary part: Earning power drops on average 11% for those who off-ramp for one year. If you off-ramp 3 years or more, earning power drops on average 37%.
Granted, technology is changing quickly so there are indeed skills which can get stale during even a short break from employment. But it’s insane to punish off-rampers so severely. We’re reinforcing the brain drain. We’re limiting the number of skilled workers we have access to. And we’re driving critical business knowledge out of the company.
It’s time to create a work environment that is hospitable to workers - all workers - and acknowledges that there are lifestages during which careers ebb and flow. It’s important to provide on-ramps to maintain a corporate competitive advantage. And it’s equally important to provide on-ramps to maintain our country’s competitive edge.
The HR model needs to catch up with the times. And we need to treat all our workers with respect and understanding. We’re all pulled in multiple directions. While choices need to be made, those choices don’t need to be so devastating. Reducing your earning potential by 37% for a 3 year gig? It’s downright punitive.
