Retired Workforce: The Next Generation
February 2008

According to the U.S. Bureau of Labor Statistics, people between the ages of 55 and 64 will make up the largest part of the workforce by 2012 and a shortage of skilled workers, due to retirement, will exceed 10 million by 2010. The departure of baby boomers is predicted to create a mass labor shortage, as equal numbers of younger employees will not be able to fill the vacancies. However, many of the baby boomers in question do not view retirement in its traditional form and with concerns surrounding future financial stability and the need for healthcare, many are willing to continue working into the retirement age. Companies that take the initiative to plan for the shortage will be well positioned to make the most of these changing work dynamics.

Retirement was once viewed as an end to work and the beginning of rest, relaxation and travel, but with the shift of the U.S. economy to service and knowledge based, retirement is being seen as an optimistic beginning. Many even view retirement as a reduced work load or week or even the ability to just have greater flexibility. According to research compiled by Monster.com, one in four workers see themselves continuing to work after retirement, whether it be starting their own business, pursuing a new career, working part-time, working remotely or taking on a consulting role.

By formalizing and actively promoting retiree worker programs, companies will be able to tackle the future labor shortage head on. According to the Accountants Inc. 2008 Compensation, Benefits and Workplace Trends Guide, some are already thinking of the future. Almost half of those surveyed (see below) stated that they plan to increase cross-training efforts in order to deal with the anticipated labor shortage. By keeping retirees on in a consulting role with flexible work hours and even given them the ability to work remotely, companies can arrange cross-training for new employees and further help with the new hire onboarding process.

How does your company plan to deal with the anticipated labor shortage?

Our goal is to provide you with information that will help you maneuver your businesses through the year ahead. If you have specific questions or needs, we welcome the opportunity to personally consult with you. For more information on staffing related trends and for a complimentary copy of this year’s Guide, contact your local Accountants Inc. representative today.