The exit of baby boomers from the workforce: Are employers ready?

The next five years will see a massive exit and eventual depletion of baby boomers from the workforce. This should be a major concern to many employers.

Baby boomers have been lauded as the most loyal, dependable and reliable group in the workforce.

This is the segment of staff that would ‘stay’ no matter what, as opposed to millennials who will not only leave when opportunity arises, but will also proactively look for opportunities to leave.

Baby boomers learnt to ‘settle in’ due to the strong connection they developed with their employer.

According to a 2016 Fortune survey by the Associated Press-NORC Center for Public Affairs Research, baby boomers stay an average of 20 years with the same employer.

They are known to have a strong work ethic, and unlike millennials, are more ‘mentally focused’ thus able to concentrate on lengthy assignments, while paying attention to every detail and multitasking effectively.

Loyal to one employer

Given their many years of experience, mostly at the same workplace, baby boomers have taken on leadership positions in most organisations, and no doubt, still make up the large majority of senior management.

They also have great networks with others in leadership positions, which makes them useful while pursuing opportunities and closing certain deals as required in business.

All these qualities are at stake as the baby boomer exits the workforce.

The key concern from every employer should be preparedness for this exodus.

The significant organisational change that this shift will herald cannot be ignored, and it is imperative that employers are sensitive and thoughtful about it.

First, succession planning is vital in managing this transition. Losing such highly experienced and dependable employees will leave a significant gap in many organisations.

Filling these positions can be expensive and challenging, especially for highly specialised roles.

That is why succession planning is critical in ensuring that organisations are well-positioned for continuity, performance and growth, despite the loss of top talent.

Through their Human Resource functions, businesses need to take an inventory of their talent pool, identify the critical roles amongst the baby boomers set to retire, and institute structured succession planning programmes.

Organisations need to put mentorship, coaching and apprenticeship programmes in place to ensure knowledge transfer and prepare younger employees to step into the shoes of the baby boomers.

Succession planning

As part of succession planning, organisations should consider targeted leadership development programmes, through which high potential staff are identified and groomed to take up leadership positions.

Accountability, professionalism, responsibility and resilience are some of the traditional leadership qualities that are hard to come by in the younger generation of employees.

These however can be nurtured through leadership interventions to ensure that younger staff are prepared for senior leadership positions, as changes in most boardrooms loom large. Baby boomers can also be engaged as advisors or mentors to continue to help organisations develop the required talent even after their
‘formal working life’.

Lastly, employers need to consider restructuring their compensation and benefits models
to ensure that the younger workforce remains motivated and engaged to stay longer.

Factors such as recognition, training opportunities, global mobility, challenging work and
flexible work hours are more lucrative to the younger workers than the loans, stability and
pensions that incentivised baby boomers.

It therefore requires creativity on the part of
employers to understand and anticipate the needs of their current workforce and offer
them a benefits package that will foster loyalty, commitment and performance.

Mr Olege is a Management Consulting Advisor at KPMG Advisory Services Limited
([email protected] ). The views expressed herein are personal and do not necessarily represent the views of KPMG

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