As boomers retire, many firms face staffing crunch

Chicago Sun-Times ^ | February 18, 2004 | MICHAEL P. REGAN

[Chi-townChief]

His wife had a long list of household chores ready for Bob Briggs when he retired from his government job in 1999. Fix a few loose door knobs. Paint a few rooms.

''It took about a month to do all the things on the list,'' he said. ''Then I realized I really needed something else to do.''

So Briggs took a job at his local Home Depot in suburban Atlanta, working two or three days a week in the garden section. It was a big change from the job he retired from, program manager for child welfare in the U.S. Department of Health and Human Services. But Briggs soon earned the title of master gardener.

It turns out that Home Depot and many other companies may be in need of more workers like Briggs as the baby boom generation heads toward retirement.

The U.S. work force, which grew at nearly 30 percent in the 1970s, slowed to a 12 percent growth rate this decade and last and is expected to drop to 2 percent to 3 percent growth in the 2010s and 2020s, according to Labor Department figures analyzed by Concours Group, a management consulting firm.

As a result, human resources consultants are warning big companies to come up with strategies to entice boomers to keep working after retirement. ''I know there are many employers who say 'I will deal with this issue when it hits me in the face,''' said Deborah Russell, manager of economic security and work at the AARP. ''I guess my response would be it's going to hit you in the face soon.''

It may be a little hard to believe for a generation of workers that has seen so many jobs sent to other countries, or eliminated due to advances in technology. But to employers who even now are struggling to fill jobs in health care, retail and government services, it's already a big issue.

Atlanta-based Home Depot, which is opening 175 new stores in 2004, has about 35,000 jobs to fill this year, and recognizes that boomers' retirement will leave it with even more openings. The company has teamed with the AARP to try to find workers like Briggs.

Even some high-tech companies are anticipating a disruptive ''brain drain.''

''We've got a demographic train wreck coming down the tracks,'' said Jeff Chambers, vice president of human resources at SAS, a privately held software company with the rare distinction of being singled out by ''60 Minutes'' as a model employer for the benefits and perks it bestows on employees.

Those perks -- like free onsite doctor's visits and subsidized day care -- have kept the company's turnover rate at 3 percent, Chambers said. But looking ahead, the company is trying to do even more. SAS recently added health benefits for retirees, hoping that will keep older employees from leaving for jobs that offer them insurance for their senior years.

And Chambers is considering other enticements to keep boomers in their jobs as long as possible -- perhaps extended time off to travel, or when a grandchild is born. ''I'm sitting here thinking ... if you're a high-level, high-demand technical person, why couldn't an employer say 'Do you want to work 1,200 hours a year?''' he said.

Other companies are talking about phased or flexible retirements among other incentives to keep boomers on the job.

Of course, the potential labor shortage may only be a problem for employers if it's accompanied by a surging economy, according to Paul Osterman, deputy dean of the MIT Sloan School of Management. A slow economy might cause some companies to welcome the retirement of the boomers, especially since there are huge incentives for them to make room for younger workers or continue to offshore what jobs they can.

AP

[KantianBurke]

guess aborting all those millions and voting for Rats who dumded down the ciriculum at the schools wasn't such a hot idea in retrospect huh?

[Dialup Llama]

Because there is such a 'labor shortage' I guess we will just have to flood the labor market with immigrants. More 'Roundtable' BS.

[dyed_in_the_wool]

So we don't have enough employees? Or we have too many? Or we don't have enough smart employees?
I'm missing something here.

[anniegetyourgun]

Wait, I thought we had a jobless economy, outrageous unemployment rate, and were outsourcing for everything but fry cooks?

[Blood of Tyrants]

It's coming back to bite them in the butt. One-third of pregnancies among black women end in abortion. THIS is the REAL genocide.

[sgtbono2002]

I retired 14 years ago havent stopped working yet and get job offers every time I turn around. Employees want people who show up every day, on time, and give them a fair days work. Are jobs hard to find? No; But if you want to start as CEO you got a problem.

[Dataman]

It's coming back to bite them in the butt. One-third of pregnancies among black women end in abortion. THIS is the REAL genocide.

Those aborted in 73 would be 31 years old now. If abortion stopped today, we would have to wait 18-20 years before the unaborted would be able to vote or get a job.

Another problem is the absolute mental vacuousness of younger people. Some of them have trouble being a trustworthy and reliable burger flipper.

[jwalsh07]

So we don't have enough employees? Or we have too many? Or we don't have enough smart employees? I'm missing something here.

You sure are. American birth rates have dropped dramatically in the past 40 years for several reason, the number one being that American women somehow decided that killing their unborn babies was a right to be exercised vigorously.

Now add in the fact that lifespans for Americans are going through the roof. Those old Americans are going to need services up the ying yang, from healthcare to lawn cutting.

When the baby boomers retire there will be a huge shortage of workers. It will result in wage increases, more immigration and higher taxes for the younger folks to support all those old folks with SS and Medicare benefits.

Labor shortages, tens of trillions in entitlement shortfalls and higher taxes are imminent. So yeah, I'd say you are missing a lot.

[LTCJ]

So we don't have enough employees? Or we have too many? Or we don't have enough smart employees?
I'm missing something here.

Well, the answer "Not enough...", is abbreviated "S.S. employees", and rhymes with "Hamish Peeking".

[proxy_user]

You never have enough smart employees.

Once the headcount gets over 1000, the average intelligence of your staff will approach the average intelligence of the entire population. You'll need some smart people to make it all work.

[DonQ]

Someone seems to have neglected the arithmetic. I am a boomer but I am (only) 56 years old and the oldest "boomer" cannot be more than a couple of years more than that. So most boomers are about a decade away from retirment, unless they invested in the stock market in which case the Bush economy has put them about two decades away from retirment.

For myself, I actually have retired .... but I didn't bother to tell my boss and I continue to come to office and draw my paycheck. I recommend this method highly.

[Chi-townChief]

Actually, the market's been working out fairly well as a retirement plan. I made some moves in '98 that cost me at first but then paid off with the crash of 2000.

[Chewbacca]

The boomer generation started in 1946. The year after WWII ended and all the kids were born.

My parents were born in '42 and '43. Pre-boomers. One is retired now.

Anyone 58 and under is part of the boomer generation.

The so called Gen X generation started in the late 60's.

I am 31. Born in 1973. Abortion started in '73. My generation was decimated.

[oceanview]

the tech companies aren't worried at all. there is an infinite supply of labor in India and China for them.

[A. Pole]

It may be a little hard to believe for a generation of workers that has seen so many jobs sent to other countries, or eliminated due to advances in technology. But to employers who even now are struggling to fill jobs in health care, retail and government services, it's already a big issue.

Free market bump.

[A. Pole]

So we don't have enough employees? Or we have too many? Or we don't have enough smart employees? I'm missing something here.

Yes, American workers want better pay (they need to pay the bills). People with additional income (like retirees) might fit.

[mabelkitty]

No kidding.
In two years, the Federal Government will have 50% of its labor force at retirement age.

[SquirrelKing]

They retire and then stand in line in front of my office complaining about my staffing problem and whay they can't be helped faster.

[junta]

I thought technology was going to save us from everything bad?

[Hank Rearden]

His wife had a long list of household chores ready for Bob Briggs when he retired from his government job in 1999.

How can you tell if someone has retired from a government job? I would think the sloth and lethargy levels would remain about constant.

[DannyTN]

"Those old Americans are going to need services up the ying yang, from healthcare to lawn cutting."

Yes they do. And many of them have no money and government keeps cutting back Medicare's payments.

There is a severe nursing shortage. Anyone who wants to go to school and get a reasonable salary can. Of course you have to work 60-70 hours often for a salary, take call, have your licensed threatened by bureacrats over the least complaint, and be assigned more patients than you can handle. Hey but it's a job, who needs a life too. Don't understand why there is a shortage.

[ninenot]

Yeah--but if you think Home Depot will replace your $86K salary as a materials manager, go ahead and apply there.

Maybe if you worked 100 hours/week!!!

[LizardQueen]

But to employers who even now are struggling to fill jobs in health care, retail and government services, it's already a big issue.

Anyone else notice the industries mentioned? Not one of them adds to the real wealth of the country.

LQ

[democrats_nightmare]

Yet another piece of evidence of our policy of infanticide i.e. abortion

[stands2reason]

I noticed your tagline.

So you hope for Kerry to be elected, I take it?

[stands2reason]

unless they invested in the stock market in which case the Bush economy has put them about two decades away from retirment.

Nice. Did I somehow get transported to DU?

[Monty22]

It may be decimated, but jobs would be even harder to find with more midage people around. I'm glad birthrates are low.

[RaceBannon]

We do have a jobless economy, outrageous unemployment, and are outsourcing everything but frycooks.

I have a friend from Church who tells me that the numbers of baby boomers retiring soon is going to be so large, that he is literally starting up a company to IMPORT WORKERS due to the glut of openings he believes the market will see within the next 5 years.

He is a biggie in the advertising world. Me and him get into it on this subject, and I was going to strangle him for saying this. He swears the demographics support his theory.

He also tells me that I will have no luck finding full time engineering work any time soon due to outsourcing, and that within 10 years, over 60% of all companies over 100 people will employ only temps due tothe cost savings!

Hey, once Hillary gets elected, who needs to pay insurance? It will be taxed out of us for the premiums paid to the government anyways!

I wanted to smack him!

He told me to get a job driving a truck, it has the most open position and will provide the longest term employment and at a good rate!

I am considering it!

Through his study of demographics for advertising, he also has a theory that when the most recent bunch of kids born in a large group, the millenials, about age 9 right now, when they hit age 14 through 18, there will be a crime wave of immense proportions! Since it is a documented fact that most crimes are committed by teenagers, he believes we are in serious trouble right about the time the baby boomers start retiring in force by 2010.

[RussianConservative]

The U.S. work force, which grew at nearly 30 percent in the 1970s, slowed to a 12 percent growth rate this decade and last and is expected to drop to 2 percent to 3 percent growth in the 2010s and 2020s, according to Labor Department figures analyzed by Concours Group, a management consulting firm

But what of 12 million Mexicon US "import"? They not fill all available position?

[RussianConservative]

As I know of US, German and Russian tech...all three discriminate to age...all want young smile filled face not anyone over 45...which is consider point of senality for new learning...by manager who not once in life ever wrote code.

[iconoclast]

These jobs we're talking about are not jobs for a head of household.

I know, I have one. It keeps me occupied (golf and internet forums get old after a while) and afford a few bucks for little extras like some vacations that my wife and I might otherwise not take ... but please don't use these to take off on the younger generation.

[Chi-townChief]

The younger generation needs to start helping themselves but I agree; baby boomers pretty much brought down manufacturing.

[sixmil]

This could be Bush's new jobs program - retire the old folks. Seriously, this is just another corporate beggar shilling for immigrants to drive down American salaries. I still believe in supply and demand solving any shortage (real or not), but I'm sure most people around here will support subsidized supply and demand as usual.

[CIB-173RDABN]

"...the Bush economy has put them about two decades away from retirment.

For myself, I actually have retired .... but I didn't bother to tell my boss and I continue to come to office and draw my paycheck. I recommend this method highly.

---

Yeah, it is all Bush's fault you are no longer providing a days work for a days wages (remember this is your description not mine).

[LTCJ]

So you hope for Kerry to be elected, I take it?

Nope. Just want Bush to stop giving us a sneak preview of the DNC spending and government growth program ...

[stands2reason]

So how will "gridlock" happen without Kerry as Prez?

[LTCJ]

I'll take Congressional Republicans grow a spine for $200, Alex.

[thedugal]

Are jobs hard to find? No; But if you want to start as CEO you got a problem.

Actually CEO is the absolute easiest job to get in America. Depending on your state it costs about $50 for the excise tax for a DBA.

[cynicom]

Have heard this sad refrain for 50 years or more. Somehow or another we have always survived. Also society could put the loafers on the street corners to work, drive by them every day, no visible means of support.

[Future Useless Eater]

Your 'friend from church' is no friend at all. He's a liberal
terrorist, trying to spread the maximum amount of worry
and concern over the economy.

He can't have it both ways... Either there could be a
horrible labor shortage because of the baby boomers
retiring as he predicts...

Or there could be a horrible job shortage because of all
the foreign outsourcing...

Or maybe neither. But there CANT be both! He's a lying
fool and mouthpiece for Terry McAwful. Steer clear of
that jerk because he loves to torment people and talk
down the economy.