Boomers – a profit or a loss?
Since the turn of the century, it has been estimated that 78 million boomers will leave the workforce by 2033. And it’s predicted that the repercussions will be felt worldwide. Here’s what people have been saying about this phenomenon, if you’ve not heard about it.
Finland – 2003, The Ministry of Labour wrote a report, “Preparing for the Labour Market Change Caused by the Baby Boom Generation”. In it they say that from 2010, the population will start to decrease, and by 2030 will have decreased by about 400,000 people, which is equivalent to a decrease of about 20,000 people per year. Labour capacity will continue to fall through the 2010s, with a deficit of 30,000 people a year at its peak. And the irony is, we do not have the people to replace them.
But lead researcher, Kevin Coyne of Coyne Partnership Inc., recently contradicted these predictions. He’s on record as saying that given the current trends of delayed retirement, the total number of retirees over the next quarter century will be below 43 million and possibly as low as 32 million.
US Nations Chief Accountant David M Walker, would certainly disagree with Coyne. Walker has stated on more than one occasion; the baby boom crisis is coming, and will have a devastating affect on the US economy in the foreseeable future.
With so much publicity on the topic comes a lot of opinions and reactions. Some companies are doing something about the problem but many are not.
Thnking things will be the same as before is crazy. True, many companies won’t be so affected, but can you say hand on heart, that it won’t affect the companies you serve – which in turn will affect you anyway; even if indirectly?
If the numbers are right, then the future might look something like this in as little as eighteen months.
Clients will start “freezing” their services to concentrate on keeping their company above water. You could also find your client base slowing dissolving into thin air as companies slowly go under.
For recruitment agencies, competition will become unbearable, as searching for the right calibre of people from an ever decreasing recruitment pool, will become tougher than ever before.
Boomers leaving the workforce is nothing new, but to be able to survive the brain drain that will occur means companies will need to start putting a marketing plan into action now. The 3 strategies are to:
— Get a grip on how the mass exodus could affect you — Design a powerful client profile — Create a focused marketing campaign to build strong relationships
Smart companies who want to thrive now and way into the future, have no option but to start preparing for the overwhelming loss in human capital now, by putting into place a focused marketing campaign.
Filed under: Business