HR HIGHLIGHTS

In case you missed this article when it was first listed through SHRM in Summer '05...

HR Can Help Stem Boomer Brain Drain

By Kathy Gurchiek

HR can be a strategic partner in preparing for the labor shortage and brain drain that will occur when 78 million baby boomers retire, said Susan R. Meisinger, SPHR, president and CEO of the Society for Human Resource Management (SHRM), June 15 at a national symposium on the aging workforce.

Meisinger was among speakers at “Voice of Business on the Mature Workforce,” a daylong forum in Washington, D.C. SHRM was among the sponsors of the forum, which was aimed at adding the business community’s perspective to the White House Conference on Aging—a national symposium that takes place every 10 years—and providing recommendations for the conference when it assembles in December.

A worker shortage is not far off. The first wave of boomers—those born between 1946 and 1964—reach age 62 in three years, and many will not wait until age 62 to retire, Meisinger said. By 2010 the worker shortage is projected to be 10 million, while the number of employees age 55 and older will increase by 49.3 percent, she said.  It is important for organizations to analyze where they will be in five years and to plan for their workforce needs, she said, because 50 percent of workers age 55 and older will not postpone retirement, leading to a loss of institutional knowledge. However, only 39 percent of organizations are beginning to examine internal policies and management practices to address labor pool issues, she said, and 38 percent are just becoming aware of labor pool issues.

HR professionals can take steps to help their organizations plan strategically for the maturing workforce and its economic impact, she noted, by:

• Conducting studies to determine the projected demographic makeup of their organization’s workforce and projected retirement rates. People are concerned about doing anything that could be construed as discriminatory, she said, but “it’s OK to look at an employee’s age for workforce planning.”

• Developing succession plans and replacement charts. “The pool to draw from is smaller. … How are you mentoring?” she asked.

• Developing processes to capture institutional knowledge. It can be difficult to focus years ahead when an organization’s immediate concern is how it is doing now, she acknowledged. Developing methods to capture institutional knowledge is probably the best tool HR can use to galvanize people and make executive managers aware of the need to plan for the organization’s future, she said.

• Creating or redesigning positions that allow near-retirees to ease into retirement. This requires stepping back and looking beyond job titles and duties and focusing on what needs to be accomplished.

HR professionals also may develop and shape workforce training and development programs. That can include participating in job skills training programs for youth; promoting continuous learning for the incumbent workforce by instituting mentorship programs and professional development; and participating in local workforce training and development programs such as local and regional workforce investment boards.

Employers can be more creative in developing practices and policies for hiring, retaining and retraining older workers, said William D. Novelli, CEO of AARP, another speaker at the forum.  He pointed to the Ann Arbor, Mich.-based Borders bookstore chain as an example. In the late 1990s it scrutinized its customer base and found that people over age 45 purchased half the books sold in the United States. To relate to those customers better and gain a competitive edge, it started a formal hiring and retention program aimed at older workers.  Today, 16 percent of Borders’ workforce is older than 50, up from 6 percent when it started the program, Novelli said, and its turnover rate dropped 30 percent. It has added medical and dental benefits for part-timers to help attract and retain these workers and is working on other incentives.

“For employers to get the most out of an aging workforce, they may need to refine policies with flexible work schedules, telecommuting, training and education, phased retirement and ‘bridge jobs’ that offer new experiences and work/life flexibility,” he said in prepared remarks.

“Older workers are the fastest-growing segment of the nation’s workforce and will be for as far out as anyone can project. In light of the challenges that we face in global competition, it is vital to our economic interest that we fully utilize their skills, experience and work ethic.

“When we do, everybody wins.”

Kathy Gurchiek is an associate editor at HR News.   

Contact Boly:Welch Business Development to see what's happening in the Portland / Vancouver marketplace at busdev@bolywelch.com.