Making News

(Nov. 15, 2007)

BOOMERS IN THE WORKFORCE
By Nikki Harmon and Mairead Stack

Baby Boomers make up nearly one-third of the U.S. workforce and as retirement nears, many are choosing to stay in the workforce longer. Recent AARP surveys have found that 79 percent of Boomers do not plan to retire when they hit 65 years of age. The emergence of “working retirement” has and will continue to create a new landscape in the workforce, making it vitally important for all generations to be managed properly in today’s complex working environment. 

Whether the reasons are financial or personal, the fact that the Boomer generation will continue to play an active role in today’s corporate culture will help soften the economic impact of a potential labor shortage. In the 1970s, the number of workers increased 30 percent; that number slowed to a rate of 12 percent throughout the 1990s and is expected to decline further to 3 percent by 2010. This illustrates the importance of engaging the Boomers in the workforce as long as possible….something not all companies are doing.

Since World War II, the American workforce has been shaped by three major trends: the entry of the Boomer generation into corporate America, the rapid growth in the number of employed women, and the steady improvement of employee quality caused by higher levels of education. Together, these trends created a workforce that was larger and more skilled than ever before. In addition, the knowledge and life experiences they’ve accumulated over the years make Boomers vital assets to any business.

Often categorized with near-workaholic habits, Boomers’ strong work ethic and drive to succeed helped shaped the 60-hour work week. They are also among the most aggressive, creative and reliable workers in the market. Moreover, Boomers are mature, loyal, reliable, professional, and respect authority. Avoid the mistake of trading “youthful potential” for “proven experience,” by assessing the business risk of phasing out these valuable workers.

Only 18 percent of U.S. employers have a strategy to recruit older workers, while only 28 percent reported having a strategy to retain workers past retirement age (according to the Manpower survey). With a lack of younger workers available to fill the void of traditional Boomer retirement, why not implement programs that seek out talent in existing employees that are willing to continue working?

Another survey, "The Real Talent Debate: Will Aging Boomers Deplete the Workforce?" proved that the departure of senior leadership is one of the greatest potential business risks associated with the retirement of Boomers, immediately followed by the departure of middle managemet. And what’s more problematic is the effective transfer of wisdom and talent to succeeding generations. 

Even though recruiting Boomers may include paying out higher salaries and investing the extra efforts to adapt to their post-retirement needs, the payoff will be significant.

With the prevalence of organizations comprised of multiple generations, it’s crucial that businesses capitalize on the benefits Boomers offer. By 2010, the number of workers aged 35 to 44 will have decreased by 19 percent, while those aged 45 to 54 will increase 21 percent, leaving those 55 to 64 at a 52 percent increase. Boomers, like their parents - the World War II generation - feel a need to contribute to society, and aren’t going to go quietly into retirement. There’s still plenty of time to recruit and retain these experienced, high-quality workers.


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