Lifestyle

As Boomers retire, will 'brain drain' leave companies wanting?

Senior Lookout
Anne Springer
Published: August 20, 2008

The Baby Boom generation, one of the most influential in history, is about to change workplace demographics in a big way, and employers and government agencies both will be affected by the changes.

The U.S. Bureau of Labor Statistics estimates that about 76 million Baby Boomers, or 43 percent of the current work force, will be eligible to retire within the next 10 to 15 years. As they retire, the conventional wisdom is that the workforce will shrink, with employers and government alike pondering how the economy will cope. Both are said to be seeking ways in which they can encourage many of the Boomers to retire later, thus softening the blow, since the following generations are much smaller, and with a smaller percentage of qualified workers.

So called "work-life" programs, which include benefits such as flexible work schedules, telecommuting, financial and education assistance, liberal time off policies, dependent care services (child day care, or elder care), liberal caregiver support policies (some companies are beginning to offer paid leave), and other programs that help employees cope with the demands of both their professional and personal lives, are becoming more common.

These programs may have more to do with the general demographic of more women in the workforce, later childbearing, more care-giving at both ends of the life spectrum, and a trend toward flexibility replacing raises, than with the boomer bust. However, employers who do believe that we are facing a "boomer brain drain" are restructuring some jobs to make them less tedious and more interesting, or allowing employees to take time during the workweek to volunteer for a local charity, or get in a round of golf. Such enhancements to the fringe package may keep long-time employees from collecting their gold watch and leaving, taking all their experience and talent with them. And, it may also act to entice younger workers, some of whom would welcome some flexibility, too.

Another way companies plan to avoid the talent drain when Boomers retire is to make mentors out of them, or hire them back as consultants, trainers, or to work on special projects on a contract basis. Long-time employees who are nearing retirement can assist companies in training less-experienced staff, and in planning succession of executive positions, which is good planning anyway. Forming a speakers' bureau and staffing it with retired employees might help some organizations further their marketing goals without disrupting the normal workflow, whether there is an exodus or not.

All these options are on the table for those companies that are interested in retaining or attracting Boomer workers. However, less than 40 percent of companies report having given any consideration to how the "brain drain" of the impending exodus of Boomers will affect their companies or their bottom line.

And, not surprisingly, there are some who think that the Boomers leaving the work force will have no ill effect. One blogger, Laurie Ruettiman, says that there is not going to be a brain drain, and that "your company has no plans to address the impending Baby Boomer retirement crisis, which really isn't a crisis to anyone except the Baby Boomers who can't face old age, irrelevancy, and death. Companies are not aggressively recruiting and developing talent in your organization because it costs too much money. Instead, your company will cut labor costs — by outsourcing your commodity-driven work to...."

Whichever position proves accurate, clearly some effect will attach to the Boomer generation retiring. But, whether it affects companies or the Boomers more negatively remains to be seen. If irrelevancy is our lot, time to plan a second career that isn't dependent on flex time and employee retention plans...

For more information on Boomers and their impending retirement: http://www.aarp.org/research/reference/boomers/

Anne Springer, public relations director for SeniorCare, Inc., which serves Beverly, Essex, Gloucester, Hamilton, Ipswich, Manchester, Rockport, Topsfield and Wenham. Its mission is to provide and coordinate services to elders, enabling them to live independently and remain part of their community.