Baby Boomer Bust: How Companies Can Handle Their Exit
Companies today are faced with a number of variables
that affect their performance on a daily basis. Not
only is there pressure to stay a step ahead of their
competitors, but as of late companies have encountered
a unique situation many are unsure how to handle,
how to practice effective human capital management
in the wake of Baby Boomers departing the American
workforce. According to data from the 2000 U.S. Census,
Baby Boomers make up at least 82,826,479 of the population.
They age from 41 to 59 years of age, which means
a substantial number of individuals from this generation
will be eligible to retire within six years. Their
exit from the workforce poses as much of a historical
landmark as the generation's entrance into the world
during the Post-World War II era. Never before has
the American workforce been subject to such a profound
shift in labor.
As many of the eldest Baby Boomers begin to depart
their jobs and head into retirement, this allows
us nothing but a glimpse of what the workforce can
expect to see in the coming years, especially when
one considers the pace of retired Baby Boomers will
quickly increase with each passing year. In light
of this, it becomes crucial that preparations begin
in an effort to mollify the impending retirements.
Although the effect of Baby Boomers exit from the
workforce will be felt throughout the U.S., it will
be particular harsh on the companies they are leaving,
especially when considering the fact that there are
just simply not enough individuals to fill all of
the empty positions that will be deserted by the
Baby Boomers absence. |
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Not that anyone could assign any reasonable blame
to Baby Boomers for choosing to enjoy their latter
years rather than remain in the working world they
have been apart of for so long; nevertheless, their
exit still acts as a poignant reminder that companies
will be forced to find creative measures to maintain
their vision while working to fill available positions
left by Baby Boomers with qualified individuals. But
this begs the question, where will they find them?
And, in the event that qualified individuals are found,
will they be able to compete with other companies in
retaining their employment?
Questions like this are all but factors companies
need to take into account when contemplating human
capital management as Baby Boomers begin exiting the
labor force. Such an event will challenge companies
to be creative in their efforts to handle the situation
effectively, while still maintaining their competitive
edge in the marketplace. Not only will companies need
to be strategic in succession planning, but they will
also be faced with another caveat, how they can successfully
attract those qualified individuals remaining in the
labor force to work for them.
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Companies will be competing not only for the interest
of future companies, but also for future employees,
and the race to do so has never been tighter. Since
Baby Boomers make up such a significant number of the
labor force, other generations fail to even relatively
match the Baby Boomers population numbers. For instance,
the succeeding generation, Gen X has only about 50
million members. That means Baby Boomers have almost
a 30 million population lead in their generation in
comparison to Gen X. Such a drastic difference in population
will inevitably affect the pool of employees companies
can recruit, in other words, companies will have more
jobs available than people to occupy them.
Nevertheless, companies can curb the effect the Baby
Boomers exit will have on their personnel by planning
now, being strategic in their efforts to recruit top
talent for their organizations, and even consider developing
incentives to retain their Baby Boomers. Ultimately,
preparation, not crossed fingers, is the only reliable
resource companies have to effectively deal with the
historic Baby Boomer departure from the labor force. |
