79 million. That’s more than 25% of the U.S. population. It’s also the number of people who make up the largest U.S. generation in history—the Baby Boomers.
In just three years, those Boomers will begin to hit retirement age—setting off a mass exodus from the workforce that will last nearly twenty years. Is your organization prepared for their departure?
Companies that don’t begin to address this issue now may find themselves unable to sustain their missions and marketplace. However, organizations that understand the urgency of the Baby Boom exit, and thoughtfully prepare for it, will be in the best position to achieve success.
Here are some steps you can take to start planning now:
- Conduct a knowledge loss “Threat Assessment”.
When people retire, they take their knowledge and experience with them. Do you know where your firm is most vulnerable to knowledge loss?
A knowledge threat assessment is simply an analysis of where talent losses are likely to occur and what information and expertise those people have. The first thing you need to do is figure out how many people at your company are eligible to retire within the next 10 years. While the odds are good that not everyone who is eligible to retire will do so, you need to consider how many people could leave and when.
The next step is to document the specific types of knowledge and expertise those people possess. This can include technical and product knowledge, customer relationship knowledge, internal people and process knowledge, and knowledge of your industry, vendors, and any other information relevant to running your organization.
By taking the time to do an accurate assessment of your knowledge loss risk, you can better plan hiring, retention, training, and succession planning.
- Figure out which specific key players are most at risk.
Senior managers: Senior managers have mission critical knowledge and experience. If you will promote from within to replace departing executives, you may need to start succession planning over a period of three or more years. And if you’ll need to hire replacement talent, you may want to start working with internal and external recruiters six to twelve months in advance of your need to hire.
High-level technicians and craft workers: These are the people who perform hands-on technical work that is hard to outsource or offshore. You will want to be proactive about developing an apprentice type of program well in advance of retirement to ensure that their knowledge is retained.
Knowledge connectors: Knowledge connectors are the people other people call for help because they’re experts or because they know how to find the knowledge to help solve problems. They are vital to your organization. These people’s expertise must be collected and documented prior to retirement.
- Consider knowledge transfer.
- Job shadowing. Job shadowing is one way to transfer knowledge. Identify the less experienced managers that are best qualified to move up. Pair them with the senior managers for help with personal and career development so they’re ready when their time comes.
- Document processes. Think about investing in people to chart and document processes that do not currently have formal documentation.
- Technology. Use simple technological tools, such as electronic discussion groups to capture “shoptalk” and the knowledge that only comes with time on the job. Use a social network analysis to identify which people get contacted to solve specific problems.
- Think about retention efforts tailored to experienced senior workers.
Baby boomers are the healthiest generation to date, and studies show that they still want to make their mark on the world. Organizations that offer opportunities to be creative, express initiative, and make a difference will succeed in retaining these older workers longer.
It’s also important to think about what would make it possible – and desirable – for older workers to continue working. For instance, you may need to modify your policies and procedures for part-time work. Boomers may want a different kind of flextime than younger workers. They might prefer the ability to take more time off to accommodate medical appointments and visits to children.
- Adjust your business processes or equipment to accommodate older workers.
Older workers may be great workers, but they tend to have more physical limitations than younger workers. You may have to modify either processes or equipment so they're older-worker-friendly. You'll be in good company. Toyota has been doing this for some time.
Make sure, for example, that the gauges on equipment are easy to read. If instructions are conveyed orally in a workplace, make sure they're loud enough for older workers to hear.
The Bottom Line.
While the stakes are high, those companies that think through the data, come up with the right questions, and develop a long-term strategy for dealing with Baby Boomer retirement will not only survive this historic wave, but will also have the potential to ride its crest.
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