The retirement of baby boomers has been looming for years. How will it affect the economy? How will it affect social security? More and more retirement communities are being built, along with smaller, more manageable homes and properties. But how will it affect your company? Depending on the demographics of your company, it could have a pretty devastating effect. Or it could be an opportunity for massive change and growth. Here’s how to prepare for the retirement of baby boomers.
Baby Boomers Age Out
Defined as the generation born between the years 1946 and 1964, baby boomers are now the oldest members of the workforce. Between the years 2011 to 2029, nearly 10,000 baby boomers are expected to retire each day. By 2025, nearly one-fifth of the U.S. population will be 65 or older. Without a doubt, the aging of the baby boomers will impact your business.
Excessive Cashing Out
And so many people retiring in such a short amount of time means that people are cashing out benefits and pension plans all at once, straining your business. Accounting for this financial strain might be the most important way you can prepare for this inevitability.
More Flexibility in the Workplace
Work-life balance has always been a priority for baby boomers, so they’ve set the tone by demanding more flexibility in their work schedules. This means job-sharing, part-time work, and flex scheduling. If your company doesn’t already offer at least some of these perks, you better get on it. They’re becoming so commonplace, most job seekers have come to expect them as the norm.
Skilled Job Openings
Baby boomers are retiring in such great numbers that there are now fewer replacement workers to take over. And the workers that are available to take over are less experienced and possibly not as well trained or skilled as the baby boomers they’re set to replace. This might mean you’d need to hire two new employees to replace your one retiring baby boomer. Or there might be opportunities to adopt some more efficient and innovative technology as a replacement instead. And don’t worry, it won’t take long for those younger employees to catch up.
A Later Retirement Age
Many baby boomers are finding that they’re not quite financially ready to retire at age 65, so a lot are staying in the workforce until 67. And you might have employees who be looking for at least part-time employment for a bit longer. The younger generations have exhibited the habit of a faster turnover rate and shorter-lived jobs in the workplace.
In such a job market, where there are more openings than there are skilled workers, wages will have to increase to attract the most talented candidates. It also means you might be hiring less-experienced workers for whom you’ll have to invest in additional training.
For more tips on preparing for the retirement of baby boomers, contact Pridestaff Thousand Oaks today.