Cecily O'Connor
RedwoodAge.com
More than a quarter of U.S. companies are ill-prepared to deal with the effects of an aging workforce, and risk a sudden loss of labor, according to researchers.
The study, which included data from 578 companies in industries such as retail trade, manufacturing and health care, found that 12 percent of businesses had analyzed changes in their workforce demographics to a “great extent.” But the majority of companies had engaged in planning to a limited extent or not at all.
"Even though organizations know that the workforce is
aging and understand that their own workers are looking at retirement, many are
not making plans for how business will adjust to these changes," said
Marcie Pitt-Catsouphes, co-director of the Boston
College Center on Aging and Work.
The number of workers aged 45 to 54 is expected to decline 40 percent between 2002 and 2012. However, about 33 percent of employers reported that their organization had made projections about retirement rates of their workers to either a moderate or great extent.
"Companies that do not plan for this aging workforce may find themselves suddenly faced with a loss of labor, experience and expertise that will be difficult to offset, given the relatively small pool of new workers and the competition for new talent likely to result from so many companies facing the same problem," said Mick Smyer, co-director of the center, in a news release.
About 37 percent of employers surveyed said they had adopted strategies to encourage “late career workers” to stay past the traditional retirement age. Meanwhile, 60 percent of the employers said that recruiting competent job applicants remains a significant challenge.
At least one company contacted by RedwoodAge.com said it has been preparing for the aging of its baby boomer workforce for the past nine years. At Pacific Gas & Electric Corp., one third of its lineman will be eligible to retire within five years, said spokesman Brian Swanson. This expectation is consistent with other U.S. utilities. San Francisco-based PG&E is aiming to fill at least 128 lineman positions this year, after filling 160 positions in 2006.
“PG&E's lineman training program takes 42 months to complete,” Mr. Swanson said. “It's important to train new employees now while veteran linemen are still available to pass on their knowledge and expertise to the next generation. As linemen are retiring, some are coming back to work for the company to help train new employees. As trainers, the retirees have a more flexible schedule, working one or two days a week.”
Young Leaders
As a group, lineman are most susceptible to demographic changes, but PG&E is focused on training other teams as well, Mr. Swanson said. PG&E is investing heavily in recruiting, training and development to prepare the next generation of company leaders, as over 40 percent of this
work force becomes eligible for retirement in the next five years. The company is “refocusing our recruiting efforts, including the nation's top MBA programs, and we are developing current and high-potential leaders through our culture workshops, leadership academy and other leadership development programs,” he said.
Overall, the ability to overcome obstacles associated with an aging workforce requires flexibility on the part of the employer, the Boston College researchers said. For example, older workers who want to remain in the workforce indicate the typically typical 8-hour day/5-day week doesn't work for them, Pitt-Catsouphes said.
The researchers recommended employers begin asking critical questions such as “are some teams more susceptible to age-group changes?” to better prepare for future hirings, and also be aware of options that will help retain older employees.
