Survey Finds “Brain Drain” Effect Varies by Industry Health care, oil and gas industries to feel brain drain more acutely
June 18, 2007 -- Retiring baby boomers are already creating a significant challenge for U.S. employers in certain industries, according to survey findings by WorldatWork, Buck Consultants and Corporate Voices for Working Families.
The survey, “The Real Talent Debate: Will Aging Boomers Deplete the Workforce?” conducted in October 2006, assessed responses from more than 480 organizations in a broad cross-section of industries.
The aging workforce is especially critical in the health care and oil and gas industries, with 66% and 65% of respondents, respectively, citing the issue as a significant challenge. Industries such as manufacturing and technology are less likely (34% and 23%, respectively) to perceive this issue as a significant challenge.
Forty-two percent of all respondents indicated the aging workforce issue is significant. Of this group, 50% have a majority of mature workers eligible to retire in five to ten years. One-half of respondents in this group also see a current shortage of skilled workers.
"Solving the problems posed by the aging workforce is going to require out-of-the-box thinking,” said Ryan Johnson, Director of Public Affairs for WorldatWork. “We need to get rid of the idea that retirement is freedom from all work, and change it to the notion of retirement as freedom to do different kinds of work."
The departure of senior leadership was identified as the greatest potential risk associated with the exodus of mature workers (52%), followed by the departure of middle management (41%), and technical talent and knowledge workers (39%).
“It’s more than just a problem of not having enough bodies to replace retiring boomers,” said James Sowers, Managing Director of Buck Consultants’ human resource management practice. “The real challenge is transferring their knowledge and talents to succeeding generations of workers.”
However, more than 80% of respondents, regardless of industry, have not surveyed their mature workers to determine future work preferences or intentions. Forty-two percent have not even identified who is responsible in their organization for knowledge transfer and knowledge management.
To address retention of retirement-eligible workers, 48% of respondents currently offer flexible work schedules and 23% plan to adopt them. Forty-two percent currently offer consulting assignments to older workers. Forty-seven percent offer or are considering phased retirement, and 43% offer or are considering alternative job design.
Other key survey findings include:
Cost increases associated with knowledge and skills transfer resulting from the loss of aging workers are perceived as being highly significant by 62% of respondents.
Aging workers want to remain in the workforce because of financial reasons (93%). Correspondingly, benefits are reported to be the most impactful aspect of job quality (86%).
While mature workers are valued for their knowledge, reliability and dedication (74%), more than 50% percent of respondents reported they do not proactively pursue mature workers in recruiting.
WorldatWork (www.worldatwork.org) is an international association of human resource professionals and business leaders focused on attracting, motivating and retaining employees. Founded in 1955, WorldatWork provides practitioners with knowledge leadership to effectively design and implement strategies and practices in total rewards – compensation, benefits, work-life, performance and recognition, development and career opportunities. WorldatWork supports its 30,000 members and customers in 75 countries with thought leadership, education, publications, research and certification.
Buck Consultants, an ACS company, is a leader in human resource and benefits consulting with more than 1,500 professionals worldwide. Founded in 1916 to advise clients in establishing and funding some of the nation’s first public and private retirement programs, Buck is an innovator in the areas of retirement benefits, health and welfare programs, human resource management, compensation, and employee communication. News and other information about Buck Consultants is available at www.buckconsultants.com. Buck is an independent subsidiary of Affiliated Computer Services, Inc.
ACS, a global FORTUNE 500 company with 58,000 people supporting client operations reaching more than 100 countries, provides business process outsourcing and information technology solutions to world-class commercial and government clients. The Company’s Class A common stock trades on the New York Stock Exchange under the symbol “ACS.” ACS makes technology work. Visit ACS on the Internet at www.acs-inc.com.
Corporate Voices for Working Families is the leading national business membership organization representing the private sector voice in the dialogue on public policy issues related to working families. As an independent 501(c) 3, Corporate Voices facilitates research and provides solutions to legislators and business on Early Childhood Education and After School Care, Family Economic Stability, Worker Flexibility, the future of the Mature Workforce, and Youth Transitions. Collectively their 53 partner companies employ more than 4 million individuals throughout all fifty states, with annual net revenues of $1 trillion.
About WorldatWork®:
The Total Rewards Association
WorldatWork (www.worldatwork.org) is a global human resources association focused on compensation, benefits, work-life and integrated total rewards to attract, motivate and retain a talented workforce. Founded in 1955, WorldatWork provides a network of more than 30,000 members in 100 countries with training, certification, research, conferences and community. It has offices in Scottsdale, Arizona and Washington, D.C.
The WorldatWork group of registered marks includes: WorldatWork®, WorldatWork Society of Certified Professionals®, Alliance for Work-Life Progress® or AWLP®, Certified Compensation Professional® or CCP®, Certified Benefits Professional® or CBP, Global Remuneration Professional or GRP®, Work-Life Certified Professional™ or WLCP®, Certified Sales Compensation Professional™ or CSCP™, Certified Executive Compensation Professional or CECP™, workspan®, and WorldatWork ®Journal, and Compensation Conundrum®.
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