Newswise — Despite warnings of disaster tied to the impending retirement of the first wave of baby boomers, smart companies can actually benefit from this change in the workforce if they plan carefully, says a new report from The Conference Board.
"For almost a decade, pundits have used images of natural disasters, like tsunami and tidal wave, to describe the labor shortage that may slam employers as baby boomers begin to retire en masse, potentially dragging down the gross national product in their undertow," says Mary B. Young, Senior Research Associate, The Conference Board, and author of the report. Yet despite these dramatic metaphors, "U.S. companies have, for the most part, done little to prepare for baby boomer retirements."
The problem, says Young, is that national labor force projections are too generalized to spur employer action. Instead, companies need to analyze their own employee data. "That's the only way to accurately forecast whether aging and retirement will impact their workforce and, if so, exactly when and where. Once employers know that, they can take the appropriate actions, rather than under- or over-reacting."
The new research, which was conducted for The Conference Board Research Working Group on Mature Worker Engagement and underwritten in part through a grant from the Atlantic Philanthropies, uses case-study methodology to investigate the aging workforce and its ramifications. Companies studied include Abloy Oy (Finland), Bon Secours Richmond Healthcare, Busch Entertainment, Center for Energy Workforce Development, CVS Caremark, Deere & Company, GlaxoSmithKline and Westpac.
From the case studies, the report draws several practical conclusions:
* Organizations can use strategic workforce planning to assess the impact of approaching retirements on their ability to execute business strategy. They can pinpoint potential vulnerabilities and target interventions exactly where they're needed.* Companies that effectively manage mature workers treat them with respect, discern their needs rather than making assumptions, and offer such benefits as flexible work arrangements, affinity groups, and financial and retirement planning. Effective human resource systems in areas such as performance management and career development are as important for managing older workers as younger ones.* Recruiting mature workers may not even be on the radar screen for some companies. Yet, it's a priority for employers who face a shrinking supply of younger workers, or who want a workforce that mirrors their mature customer base. * Knowledge transfer from mature and/or retiring workers to younger staff, while currently more an aspiration than a reality, is key to preparing for inevitable retirements.* Through partnerships with other employers, government programs and nonprofits, companies can get more bang for their buck when forecasting, managing and recruiting mature workers.
For example, when the aging workforce and imminent retirements threaten an entire industry—as is the case in utilities, federal government, education, healthcare, manufacturing and transportation—companies can band together to do workforce planning industry-wide. The Center for Energy Workforce Development (CEWD) demonstrates how companies who do so benefit by pooling resources and sharing best practices.
"Not all employers are red-hot to hire mature job candidates," concludes Young. "If a company is pleased with the quality of the labor pool it recruits from, there may be no incentive to change their recruitment practices to attract mature talent. But most companies already employ mature workers. There are specific things they can do to reap the full value of employees in late-stage careers."
Source: Gray Skies, Silver Lining—How Companies are Forecasting, Recruiting, and Managing for a Mature Workforce, Research Report #1409-07-RR, The Conference Board
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