A Dim Future for the AMERICAN WORKPLACE.

• Author: CHALLENGER, JOHN A.

Technological advances and demographic changes are on a collision course. Unless the nation's workers are properly educated, the U.S. will not be able to compete in the global economy.

FOR A SNAPSHOT of tomorrow's workplace, visit Fremd High School in Palatine, Ill., where Motorola engineers interact closely with students to solve real engineering problems. Also, take a look at billboards in central Florida, where Walt Disney World advertises for help.

Teens working on real-world engineering projects and billboards advertising jobs are pictures of today's labor shortage. Yet, the impact on tomorrow's workplace is not clear. Will it continue? If so, how will it affect America?

Two factors--population and technology--will determine the landscape of tomorrow's workplace. The next generation of workers will continue to be a scarce commodity for employers. The Bureau of Labor Statistics projects 151,000,000 jobs by 2006, with 141,000,000 people employed. As often happens today, many of them will be holding two jobs.

Companies will need to offer a wide range of perks and benefits since money alone is not going to be enough to attract employees. Benefits no longer will be viewed as a company-wide provision. Instead, firms may allocate a budget for benefits and empower hiring managers to provide funds to employees within the amount that is budgeted.

If, for example, one needs day care for two young children, paying for that service can become part of the compensation and benefits package. Another may need substantial help with retirement financing, so he or she could get special payroll deductions that can be deposited directly into a personal mutual fund or investment portfolio.

Tailoring benefits will become more crucial as the demographics of the workforce evolve. Changes will come from two diverse groups: teens and those over 50.

The teen population is on the rise. The Department of Education reports high school enrollment will jump 13% over the next decade, adding another 1,900,000 students by 2007.

At the same time, fewer older people are retiring. The Bureau of Labor Statistics reports that, while the overall civilian labor force increased nine percent between 1990 and 1997, the number of workers over 50 rose 21%. Between 1985 and 1995, the number of workers 65 and older grew 31% to 3,800,000.

This will present two possible scenarios for employers. One is polarization of the two groups; the other, a stronger bonding between them. Employers will have to consider ways to avoid polarization between teens and the over-50 worker, and develop policies that will bring them together.

The grandparent/grandchild model can be used as illustration. In families with strong relationships, if the grandparents are still around, there is likely to be a very intimate bond between them and the teenaged grandchildren. That bond usually develops when the grandchildren are very young and continues...