In a shrinking labor force, Generation X workers will be a hot commodity.

Gen Xers stand ready to take the reins as baby boomers retire. Problem is, there won’t be enough Gen Xers to fill the job vacancies left by retiring boomers. As businesses compete for their talent, Gen X workers will be able to pick and choose the best jobs—and the most accommodative companies.

Gen Xers were born roughly between 1964 and 1980. They number about 58 million, compared to approximately 76 million baby boomers. Leading-edge Xers are now in their late 30s and are prepared to accept positions of power in their professions.

The good news for small business is that these young professionals bring much needed skills to the workplace.

They’re one of the best-educated generations in U.S. history. Gen Xers grew up on computers and quickly embrace new technology. They’re able to multitask and adapt to changes in the workplace. They’re open to learning new skills and hungry for on-the-job growth.

But Gen Xers also bring new attitudes to the workplace. They watched their baby boomer parents lose long-time jobs to downsizing, so Gen Xers have little faith in job security. They won’t hesitate to jump ship if new and better career opportunities arise elsewhere. They seek a balanced life where their jobs aren’t all consuming.

Retaining and developing Gen X workers who are in mid-career could give small-business owners a big payback as the labor force shrinks.

Yet a 2003 report from The Conference Board showed that while companies devote significant time and money to find replacements for outgoing CEOs and other top officers, they’re expending far fewer resources to groom successors for highly-skilled professionals and making sure that invaluable knowledge is passed on to younger workers.

The report cites Deere & Co., as a major exception to that trend.

The maker of farm tractors and lawnmowers did some rudimentary workforce modeling in the late 1990s. The company discovered that over the next 10 years it could lose almost two-thirds of its salaried workforce from retirements. The company, which had done little hiring for several years, stepped up its recruiting of mid-career employees.

“The leading edge of boomers, now in their mid-50s, are beginning to retire,” says Howard Muson, author of the report, “and not enough people are coming along in the much smaller Generation X, now 25 to 38 years old, to replace them. The unprecedented turnover rates in recent years among younger, mid-career employees will further shrink that pool of qualified replacements at many companies.”