Aging Baby Boomers Will Affect How Work Is Done

By: David Doyle

Posted on 3/21/07

The Phenomenon

We are currently in a workforce dynamic that historians will someday list with all of the great phenomena of the American labor achievement. Smoke stack industries have given way to the “age of information” and to the “age” of the Baby BOOMERS; 78 million to be more specific.

Born from 1946 through 1964, they have influenced everything from music to politics, from fashion to education. Now they have begun turning 60 and some are considering traditional retirement. But a growing number either need or want to stay in the workforce past traditional retirement age.

The concept of work and retirement is changing. Once workers looked forward to retirement - even early retirement. With longer life expectancies, people are reevaluating their ideas on retirement. The retirement picture now includes things like the need for extended socialization, health insurance and other prolonged benefits, as well as income security.

Those that will stay in the workforce are looking for creative solutions from employers. Many would like to work part-time, from home or on a project basis, just to name a few. In addition, they want assurances on health insurance, paid vacation and accrued pension. This “new” retirement creates new opportunities for those staying in the workforce and the employers who want to retain this talent pool.

The Dilemma

By the year 2008, the number of young adult workers, from 25 to 40 year olds, will DECLINE BY 1.7 million. That’s 1.7 million less workers to replace the nearly 77 million baby boomers who will be eligible for retirement.
—Hudson Institute

It is no secret that there is and will continue to be a shortage of workers. Employers increasingly are hearing and reading about how the shortage of workers will impact their businesses. According to author Ellen Freudenheim, one-fifth of large, established US companies will lose 40% or more of their top-level talent in the next five years. This creates a substantial hole for many companies to fill. Just consider the loss of institutional memory alone. Combine this void with lower birth rates and lower educational standards, and we have a serious workforce problem.

It is safe to say that employers are just beginning to feel the pressure. Dr. Ken Dychwald, foremost visionary on the workforce implications of the “age wave” recommends that employers begin preparing for the looming shortage by considering mature and multigenerational workers. Mature workers bring experience, expertise and dependability that many employers will be craving in the very near future.

The question remains, are employers ready to see the maturing workforce as a solution to the problem? In addition, are employers prepared to change how they function to accommodate the mature workforce? Well, the reality of the “new” retirement and projected workforce shortages are that they may not have a choice.

Opportunity for Solution

There needs to be an “awakening” of both employers and employees of what’s to come. With this ominous workforce crisis threatening the stability of the US economy, boomers themselves have a great opportunity to influence how employers will adapt. However, boomers need to be informed about options and resources available to assist. There are a growing number of professional services geared to the mature worker. One example is the role staffing agencies play. Staffing agencies and the like are working to accommodate both the needs of the mature worker and employers. Many are providing services that cater specifically to the mature worker, offering work flexibility. Some even offer benefits.

In addition to understanding what employment solutions are available, it is especially important for you to understand your financial picture as well. Will you need to work for financial reasons? Do you want to continue to work or give back in a volunteer role? Is it a combination? These are important questions to ask. The answers will help guide how you will influence the evolving modern retirement.

On April 14, 2007, the UWM Center for Workforce Development and Interfaith Older Adults program will present Stay Ahead of the Boom: Create Your Best Life, a one-day conference focused on how individuals can best take advantage of the opportunities offered by a new vision of retirement. More than 15 workshops will be offered that focus on developing new career strategies, reviewing financial stability and exploring how to start a dream business or consulting service. This day-long conference is an opportunity to fine tune what you are looking for from this “new” retirement. In addition, boomers can walk away with ideas on how they can shape solutions for employers.

For complete details visit: www.sce-boomer.uwm.edu

David Doyle is a former radio broadcaster and local expert on mature worker issues. . NO is the CEO of World Domination, LLC