Corporate America Faces a Brain Drain

NEW YORK, Aug. 18 /PRNewswire/ -- As the more than 76 million baby boomers
approach retirement, an imminent talent shortage is affecting the workforce
and many US companies will be challenged with a significant loss of
experienced workers. This talent drain can be partially alleviated if
companies entice older workers to remain in the workforce longer, according to
Joan Strewler-Carter and Stephen Carter, co-founders of the Life Options
Institute, an organization dedicated to helping people plan for life after age
50.
"The coming talent shortage may force employers to overcome their age bias
and introduce new opportunities with which to utilize this powerful asset,"
adds Mrs. Strewler-Carter.
More significant than the talent shortage is the looming "brain drain."
"Few companies have solved the knowledge-transfer problem," says Mrs.
Strewler-Carter. Retaining older workers, even part-time, gives them the
opportunity to teach younger workers what they know. Mentoring and
action-learning teams are techniques that have helped some organizations
succeed in transferring knowledge.
Many experts are predicting a shortage of 10 million workers by the year
2010. By 2014, nearly 20 percent of the workforce will be comprised of people
age 65+. This increase will make mature workers the faster-growing workforce
segment, according to the US Bureau of Labor Statistics.
According to the Merrill Lynch New Retirement Study published in 2006, 71
percent of baby boomers say they will work after retirement. The new
retirement for people 60+ won't involve withdrawing from working life.
Instead, boomers want to find a new life balance that includes some form of
employment, notes Mr. Carter.
A New Employment Paradigm
Retirement for baby boomers will blend work with leisure activities. The
boundaries between work and play will no longer be so firm. Flexible work will
become the rule. The boomer generation will demand more autonomy, flexibility
and satisfaction on the job, cites Mr. Carter.
"To be more precise, the upcoming working retirees want to work on their
own terms," stresses Mr. Carter.
Phased Retirement
An option to be considered is "phased retirement," the gradual tapering
off of working hours and responsibilities, culminating in a final break from
the company. This period of phased employment can extend for years, describes
Mrs. Strewler-Carter.
Although workers age 50+ want to work, many don't want full-time
employment. Some corporate trendsetters are experimenting with phased
retirement -- continuing to work for the same employer but with reduced hours,
cites Mrs. Strewler-Carter.
According to Mrs. Strewler-Carter there are several companies that have
already developed cutting edge programs. For example, Procter & Gamble
developed their own job site, www.YourEncore.com, as a way to attract their
retired employees. General Electric allows retired employees to work up to
1,000 hours per year.
IBM has designed several programs to leverage the knowledge and expertise
of retiring baby boomers. The company maintains a pool of retirees who mentor
and transfer knowledge to younger workers.
San Diego-based Sharp HealthCare has its older employees determine their
preferred work schedule.
Home Depot allows employees to set their work hours. In addition, it has
trained managers in how to deal effectively with older workers.
The Boomerang Year
"A variation on phased retirement is the "boomerang year" in which people
take off a year or two before transitioning into a period of their lives when
they may mix part-time work with leisure activities," advises Mr. Carter.
According to Mr. Carter some corporations have already developed programs
that adapt to the boomerang concept. Traveler's Group allows older employees
who have taken a year or more off the ability to return on a part-time basis
without adversely affecting their pensions.
Polaroid offers older employees the opportunity to take a leave of absence
for up to six months and either return to their job or to a part-time version.
Monsanto allows employees to retire for a few months up to a few years,
and then return to the company in a part-time capacity.
Innovation is not tied to younger workers. More mature workers can
innovate as well. The challenge for employers will be to create cultures that
engage people and motivate performance. Companies that are successful in
renewing their human capital will win.
For additional information please visit www.WhatsNextinYourLife.com, a web
site from Life Options Institute that helps people plans for life after 50 and
includes helpful information on how to remain or re-enter the workforce.
SOURCE Life Options Institute

Brittany Cash, +1-212-787-0787, Brittany@tjsacks.com, for Life Options
Institute