Wave of retirements may surprise firms

By Courtney Schlisserman
Bloomberg News Service

Many companies are unprepared for a decline in the number of skilled workers that will result this decade as members of the baby-boom generation reach retirement age, according to a study by the Conference Board.

Of the 150 human resource officers polled by the New York- based Conference Board, 66 percent don't track the age of their workers and 63 percent don't have listings of their company's available skills. Baby boomers were born between the late 1940s and the early 1970s and are the largest generation in U.S. history.

The report comes as companies continue to trim their workforces and rely on higher productivity to meet demand in recent months as they wait to see if the economic expansion gains strength. Companies are also cutting back on spending to groom successors for the jobs that will open because of retirement, the Conference Board said.

"The unprecedented turnover rates in recent years among younger, mid-career employees will further shrink that pool of qualified replacements at many companies," said Howard Muson, author of the report.

Companies that are making moves to ensure they don't have a large decline in skilled workers include Deere & Co. and General Motors Corp., the Conference Board said.

Moline, Ill.-based Deere & Co., the world's largest manufacturer of farm equipment, decided in the late 1990s to increase recruiting of mid-career employees. General Motors, the world's largest automaker, draws up two-year plans that consider the numbers of employees and type of expertise that will be needed.

The United States lost jobs for a seventh consecutive month in August and is forecast to show a decline again in September, economists said. The economy lost 93,000 jobs last month, the Labor Department reported.

The retirement pace will pick up as the economy recovers and reaches "a tipping point later this decade," the Conference Board said.

Persuading workers to stay may be the best way to avoid a large loss of skills, Muson said.

"There is a real question as to how many companies are prepared for the retirement tsunami already under way," Muson said.