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RSI - Executive Search Firm News | Company Newsletter, May 2007

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RSI Executive Search Firm Company Newsletter, May 2007

Issue: #18
Date: May 1st, 2007
Author: Kellie Davis


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Reaction Search International Executive Search Firm - Executive Search, Executive Recruiting & Sales Search, Sales Recruiting Specialists This Month in the RSI Newsletter
» Baby Boomer Bust: How Companies Can Handle Their Exit
Executive Search Firm Newsletter Executive Search Firm Newsletter

Baby Boomer Bust: How Companies Can Handle Their Exit

Companies today are faced with a number of variables that affect their performance on a daily basis. Not only is there pressure to stay a step ahead of their competitors, but as of late companies have encountered a unique situation many are unsure how to handle, how to practice effective human capital management in the wake of Baby Boomers departing the American workforce. According to data from the 2000 U.S. Census, Baby Boomers make up at least 82,826,479 of the population. They age from 41 to 59 years of age, which means a substantial number of individuals from this generation will be eligible to retire within six years. Their exit from the workforce poses as much of a historical landmark as the generation's entrance into the world during the Post-World War II era. Never before has the American workforce been subject to such a profound shift in labor.

As many of the eldest Baby Boomers begin to depart their jobs and head into retirement, this allows us nothing but a glimpse of what the workforce can expect to see in the coming years, especially when one considers the pace of retired Baby Boomers will quickly increase with each passing year. In light of this, it becomes crucial that preparations begin in an effort to mollify the impending retirements. Although the effect of Baby Boomers exit from the workforce will be felt throughout the U.S., it will be particular harsh on the companies they are leaving, especially when considering the fact that there are just simply not enough individuals to fill all of the empty positions that will be deserted by the Baby Boomers absence.

 


Continued...

Not that anyone could assign any reasonable blame to Baby Boomers for choosing to enjoy their latter years rather than remain in the working world they have been apart of for so long; nevertheless, their exit still acts as a poignant reminder that companies will be forced to find creative measures to maintain their vision while working to fill available positions left by Baby Boomers with qualified individuals. But this begs the question, where will they find them? And, in the event that qualified individuals are found, will they be able to compete with other companies in retaining their employment?

Questions like this are all but factors companies need to take into account when contemplating human capital management as Baby Boomers begin exiting the labor force. Such an event will challenge companies to be creative in their efforts to handle the situation effectively, while still maintaining their competitive edge in the marketplace. Not only will companies need to be strategic in succession planning, but they will also be faced with another caveat, how they can successfully attract those qualified individuals remaining in the labor force to work for them.

 


Continued...

Companies will be competing not only for the interest of future companies, but also for future employees, and the race to do so has never been tighter. Since Baby Boomers make up such a significant number of the labor force, other generations fail to even relatively match the Baby Boomers population numbers. For instance, the succeeding generation, Gen X has only about 50 million members. That means Baby Boomers have almost a 30 million population lead in their generation in comparison to Gen X. Such a drastic difference in population will inevitably affect the pool of employees companies can recruit, in other words, companies will have more jobs available than people to occupy them.

Nevertheless, companies can curb the effect the Baby Boomers exit will have on their personnel by planning now, being strategic in their efforts to recruit top talent for their organizations, and even consider developing incentives to retain their Baby Boomers. Ultimately, preparation, not crossed fingers, is the only reliable resource companies have to effectively deal with the historic Baby Boomer departure from the labor force.

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