Industry News
Planning for the Brain Drain
You’ve probably heard it many times: the workforce is aging; retirements will steadily
rise, employers will be left with a massive brain drain. Of course, all of it is
true.
Although the problem is real, employers can minimize the impact by preparing for
it. The Workforce Investment Board of Will County (WIB) offers the following suggestions
in one of their workforce indicator reports:
- Identify vulnerabilities. Do an age profile of workers
by unit to determine who is most likely to retire or leave the company for any reason.
- Identify types of knowledge at risk. Determine what
knowledge is most valuable to your company and focus knowledge retention efforts
accordingly.
- Choose appropriate methods. If there is time, pair younger
workers with older ones and allow enough time for mentoring. If time is short, create
a database and file cabinets of information for quick access by other workers.
While these methods are effective, there are times when you may need to retain the
older worker a little longer. In some cases, financial rewards can induce older
workers to postpone their retirement a year or two. In other cases, part-time employment
is a better solution. WIB recommends offering flexible work arrangements for older
workers that might include three different kinds of choices:
- Choices regarding the number of hours worked which can
mean full time, part time, job sharing, and phased retirement may provide a more
flexible schedule for older workers.
- Choices about where the employee works can include telecommuting
or alternative locations.
- Choices about job assignments can mean redesigning the
job based on worker experience, abilities, and the needs of the employer.
It is also important to hire good replacements for those retiring employees. Most
of them will come from Generation Y workers born between 1982 and 1993. Between
2005 and 2025, Generation Y, as a percentage of the working population, will increase
from 12 to 23 percent in the United States.
Employers will compete vigorously for these workers. Those who form partnerships
with educational institutions to recruit Generation Y people before they graduate
will be in a better position to find the right job applicant for those soon to be
vacant jobs. Modifying the business culture is another way to retain this generation
of workers and employers should look into it.
The bottom line is that there is no boilerplate approach to this problem. Employers
will need to review their situation and make decisions about the best way to retain
older workers while bringing in younger ones to replace them. The focus should be
on the transferring of knowledge and skills. Seminars and classroom training can
help, but nothing will replace the value of mentoring. Employers should plan for
it now, so it will be there when they need it.
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