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Companies Unready for Exodus of Older Workers
By
Stephen J. Baetge
Staff Writer
Despite
repeated dire warnings about the negative impact of the loss of experienced
workers due to their retirement from the work force, U.S. companies
remain unprepared for an imminent talent drain that threatens to
alter the national economy.
Concerns about losing large numbers of experienced workers as the boomer generation
retires have been raised since the mid-1990s. Some companies have been researching
ways to limit the impact through creative efforts to retain or rehire older workers
who fulfill vital business functions — especially those requiring life
skills that can only be learned through experience.
According to a new report, “The Pressures of Talent Management” by
the Sloan Center on Aging and Work at Boston College, nearly 40 percent of the
almost 700 organizations surveyed reported that the aging of the work force will
have a detrimental impact on their businesses by 2012. Nearly 70 percent of the
companies surveyed do not yet know how old their workers are or how many are
likely to retire.
“The out-migration of a generation of workers will upset the entire balance
of the workplace,” stated study co-author Marcie Pitt-Catsouphes, director
of the Sloan Center on Aging and Work.
Companies need to get ready for this shift, according to researchers.
“U.S. companies need to start planning strategically for work force sustainability,” Pitt-Catsouphes
remarked. “The current abundance of older worker talent and experience
is going to dry up, and businesses will very soon need to fill hundreds, if not
thousands, of jobs.”
To perform the study, researchers examined talent management practices at 696
organizations across the leading 10 economic sectors in the United States. The
companies studied employ more than one million workers combined and represent
businesses that account for roughly 85 percent of the jobs and payrolls in America.
The study found that nearly 77 percent of employers surveyed had not analyzed
projected employee retirement rates or assessed employee career plans. Additionally,
56 percent of these businesses had not yet assessed the skills their organizations
need today and in the future.
According to the study, not only are companies unprepared to retain older workers,
many of them will be unprepared to hire older workers when they need them.
Approximately one-third of the employers studied reported not having enough programs
for recruitment or training of older workers.
Though long-predicted, the work force reduction has generated surprisingly limited
responses in the workplace regarding keeping older workers.
In 2000, baby boomers represented the largest portion of the U.S. labor force,
at 48 percent. By 2010, they’re projected to shrink to 37 percent of the
workforce, leading some economists to predict a shortage of 10 to 15 million
workers in the coming decade.
“Work force planning makes good business sense,” advocated researcher
Stephen Sweet. “Changing age demographics don’t have to disrupt a
business — they may present new opportunities or competitive advantages.”
“Employers should take advantage of programs designed to meet the evolving
needs of employees nearing retirement while at the same time meeting business
needs by keeping experienced talent longer and ensuring business continuity,” Sweet
concluded.
This page and its contents ©2009
Metropolitan News Company, Inc.
