We saw it coming—and now it’s happening. The baby boomers are riding off into the sunset, and the workforce will never be the same.
Sound dramatic? Like that action movie where the cop on the cusp of retirement is called back to do one last job?
This is one time the action movie gets it right. But more on that later.
First, Some Statistics
The baby boomer generation, born between 1946-1964, is the largest generation in American history. 2024 was a record-breaking year as 11,000 people per day reached retirement age. This trend is expected to continue through 2027.
While record numbers of workers are leaving the workforce, the number of workers (of any age) entering the workforce has remained flat for the last two decades.
The math doesn’t lie: the current U.S. birthrate is roughly half of what it was in 1950.
Simply put, the worker replacement rate is quite unbalanced and that is going to place added pressure on an already complex situation.
What’s an Employer To Do?
The good news is, there are concrete steps you can take. Starting now.
1. Hire the Older Worker.
Although 65 has become the “normal” retirement age, there’s no reason it has to be. When the retirement age was set at 65 back in the 1930s, average life expectancy was 62 years. Today, due to advances in science and medicine, it is 79 years, and expected to climb.
Many people in their 60s and 70s (and beyond) are in perfectly good health and see no reason to retire. Today, one in five people 65+ are still working.
The advantages:
- Cost. Don’t fall for the myth that older workers cost more. Research shows that workers over 50 years old are half as likely to take sick days as younger workers. They ‘re also five times less likely to change jobs compared to people 20-24. This lower turnover rate translates to big savings on recruitment.
- Productivity. Some research is showing that older workers are equally, and in some cases, more productive than their younger counterparts. There are a number of reasons for this: primary among them are experience and education. Older workers are also better able to focus on one task to completion without becoming distracted.
- Tech skills. Worried about baby boomers being tech-savvy? Spurred in part by the need to work digitally during the pandemic, adoption of key technologies by those in the oldest age group has grown markedly since about a decade ago, according to Pew Research conducted in 2021. The gap between the oldest and youngest adults narrowed and continues to narrow.
2. Build Inter-Generational Bridges for Knowledge Transfer.
While you have those baby boomers on the payroll, it’s time to formalize the process of knowledge transfer, so your workforce doesn’t lose a generation’s worth of expertise. If in doubt about the depth and breadth of your older workers’ knowledge, consider leveraging assessments or surveys.
Then, develop a strategy that may include:
- Mentoring programs – formal or informal. To encourage engagement, capitalize on Millennials’ desire to advance in their careers. This age group recognizes the expertise of baby boomers, and they know that learning from them will fuel the new opportunities they seek.
Tie knowledge-transfer opportunities to the larger mission of the organization, which is something Millennials want to be part of. - Hands-on training to share knowledge. Foster a give-and-take ecosystem by looking for opportunities for Millennials to share technical knowledge with baby boomers while baby boomers share historical knowledge.
- Succession plan with standard operating procedures. Formalize knowledge transfer by setting up a succession plan. Succession planning ensures that businesses continue to run smoothly and without interruption after leaders retire or move on to new opportunities. A good succession plan should include both mentoring and cross-training.
3. Get Started ASAP.
Suffice to say that with 11,000 baby boomers reaching retirement age every day, you need a solid plan for securing your organization’s future.
Here are some tips for attracting older workers:
- 90% of workers 55+ say a job must feel meaningful in order for them to accept it. Consider this when recruiting and interviewing candidates.
- To keep your current baby boomers, offer upskilling. According to the American Association of Retired People (AARP), two-thirds of older workers want to learn new skills.
- Consider offering flexible schedules and contract or part-time work—perks that older employees tend to prefer.
- Broaden your horizons when looking for talent. That means reconsidering your job descriptions. What skills are really needed versus nice to have? Think about soft skills. And is a college degree really necessary?
What Others Are Doing
To do more to retain the wisdom of their older employees, many organizations have developed new ways of working.
For example, some organizations offer a detailed phased retirement program. At NASA, retirement-eligible employees can work half-time for up to two years and earn partial retirement benefits before transitioning to full retirement. At least 20% of the program participant’s work hours must consist of mentoring and knowledge-sharing activities, including direct mentoring of successors or other staff, developing and/or presenting training, and developing policies and operating processes.
At Cochlear, a global medical device company headquartered near Denver, employees are encouraged to apply for temporary, three-to-six-month assignments in other departments or offices that need additional help. These assignments have proven to be very popular with late-career employees.
And CVS Health has an innovative “snowbird” program that encourages employees in cold climates to transfer to stores in warmer locations for the winter months. This gives workers the flexibility they want and provides the company with much-needed additional seasonal help.
Finding the Talent
Manpower recruiters are skilled at finding talent of all ages, including current retirees who want to return to the job market. And through our MyPath training and education program, these candidates can upskill at no cost, ensuring that they have the skills they need to succeed.
One more note: Our workforce trends report, The Age of Adaptability, identifies the aging workforce as one of the key demographic trends to watch. Download the report for more insights into the trends shaping our future.
