Despite Warnings, U.S. Companies Remain Unprepared for Baby Boomers' Exodus
With millions of Baby Boomers poised to age out of the workforce,
U.S. companies remain unprepared for an imminent talent drain that
threatens to alter the national economy, according to a new report by
the Sloan Center on Aging & Work at Boston College.
Nearly
70 percent of the almost 700 organizations surveyed do not yet know how
old their workers are or how many are likely to retire. Forty percent
reported that the aging of the workforce will have a detrimental impact
on their businesses by 2012.
"The
out-migration of a generation of workers will upset the entire balance
of the workplace," said co-author Marcie Pitt-Catsouphes, director of
the Sloan Center on Aging & Work. "U.S. companies need to start
planning strategically for workforce sustainability. 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."
The report -- The
Pressures of Talent Management -- examined talent management practices
at 696 organizations across the 10 leading sectors of the economy. 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 the U.S.
Additional key findings include:
- 77 percent of employers surveyed had not analyzed projected employee retirement rates or assessed employee career plans.
- 56 percent of these businesses had not assessed the skills their organizations need today and in the future.
- About one-third of employers reported not having enough programs for recruitment or training of older workers.
Though
long-predicted, the workforce reduction has generated surprisingly
limited responses. 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 predict a shortage of 10-15 million workers in the coming
decade.
"Workforce
planning makes good business sense," said report 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."