:: Hewitt Ezine :: UpFront :: Baby Boomer Exodus: What’s the Plan?

Top Companies Treat Employees More Fairly

New Retirement Plan Attractive to Younger Workers

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Baby Boomers have commanded the attention of the media practically since birth. It’s no surprise that their impending exit from the workforce will also be closely watched—especially from organizations that will be facing a loss of their talent and critical knowledge.

“Companies are feeling increasingly vulnerable to the widescale retirement of the Baby Boomer generation,” explains Jenny Wich, a Hewitt talent and organization consultant. “Everyone is struggling to get their arms around it.”

A recent survey of 79 major U.S. companies focused on mature workers, defined as employees who are currently eligible for retirement or will be within the next five years, revealed that although almost three-quarters of companies have conducted workforce planning analyses, fewer than a quarter have performed the analysis at the skill level. And despite the obvious need for one, only 6% have developed a formal strategy to retain mature workers.

Wich advises that developing an effective retention plan for the mature worker population requires a deep dive into specific functions and skills. “Companies need to seriously ask, Who is it that we can’t live without?” A formal retention plan for the mature worker requires three key components:

Integration with the business unit. A retention plan can’t be run by HR alone. “The solutions have to be supported by the business unit and delivered by the manager. It’s the manager who sits down with the employee to understand what’s important to him or her,” Wich says.

A targeted approach. Retention plans that take a broad-brush approach are expensive and not particularly effective. Adapting your plan to meet individual needs will help you retain the most critical talent and enable you to get more bang for your buck.

Flexibility, flexibility, flexibility. This is the key lever in changing retiree behavior, according to the survey and other Hewitt research. Retirement-ready employees want to continue to work, but on their terms. To develop truly flexible programs, managers must be open to changing how the work will get done, and how the job responsibilities and career progression will change accordingly. “Business units need to get really good at the flexibility piece,” Wich notes.