Age-Old Issue

If I hear one more expert complain about retiring baby boomers, the aging workforce, the coming shortage of young workers and what a problem all of this is going to be for employers, I think I’ll whack someone with my walker.

Many in the insurance industry have bought into the scenario that disaster lies ahead because there will not be enough young people to work in agencies or on the underwriting or claims teams.

I think the dire warnings are even older than baby boomers themselves. But the time for warning and whining is over. The future employment market will only be a disaster for employers who have not planned for it and who do not view mature workers as a plus.

A report from The Conference Board goes so far as to suggest that smart companies can actually benefit from this change in the workforce if they plan carefully. “For almost a decade, pundits have used images of natural disasters, like tsunami and tidal wave, to describe the labor shortage that may slam employers as baby boomers begin to retire en masse, potentially dragging down the gross national product in their undertow,” says Mary B. Young, (with that name, how did she get this assignment and title?), senior research associate, The Conference Board, and author of the report.

Yet despite these dramatic metaphors, too many companies have done too little to prepare. The problem, says Young, is that national labor force projections are too generalized to spur employer action. Instead, companies need to analyze their own employee data. That, she says, is the only way to accurately forecast.

Young’s report offers several practical suggestions:

• Organizations can use strategic workforce planning to assess the impact of approaching retirements on their ability to execute business strategy. They can pinpoint potential vulnerabilities and target interventions exactly where they’re needed.
• Companies should effectively manage mature workers, treat them with respect, discern their needs rather than making assumptions, and offer such benefits as flexible work arrangements, affinity groups, and retirement planning. Effective performance management and career development are as important for managing older workers as younger ones.
• Recruiting mature workers may not even be on the radar screen for some companies. Yet, it’s a priority for employers facing a shrinking supply of younger workers, or who want a workforce that mirrors their mature customer base.
• Knowledge transfer from mature and/or retiring workers to younger staff, while currently more an aspiration than a reality, is key to preparing for inevitable retirements.
• Companies may get more bang for their buck when managing and recruiting mature workers through partnerships with other employers, government and nonprofits.

Attracting or retaining mature workers may not be right for every employer but for interested employers, there are things they can do to reap the full value of employees in “late-stage careers,” says Young.

Late-stage careers? That must be the new term for those who have witnessed at least three property/casualty insurance cycles.

For more on this topic, visit The Conference Board at www.conference-board.org.