Aging Workforce
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The Aging Workforce: Challenge or Opportunity?
M
Roselyn R. Feinsod
Towers Perrin
uch has been written about the aging of the working population and the potential implications this trend holds for employers, financial markets and the overall economy. The possible workforce
scenarios predicted to play out during the next five to 10 years range from demographic doomsday (i.e., severe labor shortages because of baby boomer retirements) to a soft landing (i.e., minimal workforce disruptions as the boomers continue working past traditional retirement age). Many organizations are beginning to recognize their longer-term business strategies could be compromised by a shortage of available talent if baby
Thomas O. Davenport
Towers Perrin
boomers do, in fact, retire en masse. Thus far, the reported worker shortages have emerged in fields like nursing, engineering (e.g., in the energy industry) and even long-haul trucking. For just about every industry, however, today’s demographic realities raise important issues about what it will take to meet critical business needs for workers, skills and knowledge in the future. Recognizing the importance of these talent-management issues, Towers Perrin analyzed the business case for enhanced organizational focus on hiring and retaining workers aged 50 and older. The research, done for AARP, highlights the need for employers to consider the full range of economic implications associated with the aging of the workforce, taking into account both cost and productivity factors. This paper summarizes the findings of the
14
WorldatWork Journal third quarter
The Aging Workforce: Challenge or Opportunity?
M
Roselyn R. Feinsod
Towers Perrin
uch has been written about the aging of the working population and the potential implications this trend holds for employers, financial markets and the overall economy. The possible workforce
scenarios predicted to play out during the next five to 10 years range from demographic doomsday (i.e., severe labor shortages because of baby boomer retirements) to a soft landing (i.e., minimal workforce disruptions as the boomers continue working past traditional retirement age). Many organizations are beginning to recognize their longer-term business strategies could be compromised by a shortage of available talent if baby
Thomas O. Davenport
Towers Perrin
boomers do, in fact, retire en masse. Thus far, the reported worker shortages have emerged in fields like nursing, engineering (e.g., in the energy industry) and even long-haul trucking. For just about every industry, however, today’s demographic realities raise important issues about what it will take to meet critical business needs for workers, skills and knowledge in the future. Recognizing the importance of these talent-management issues, Towers Perrin analyzed the business case for enhanced organizational focus on hiring and retaining workers aged 50 and older. The research, done for AARP, highlights the need for employers to consider the full range of economic implications associated with the aging of the workforce, taking into account both cost and productivity factors. This paper summarizes the findings of the
14
WorldatWork Journal third quarter