How Will Baby Boomers Retiring Affect the Job Market?
The U.S. has a diverse, multi-generational workforce, one comprised of Baby Boomers, Generation X, Millennials, and Generation Z. However, one major component of it – Baby Boomers – is in the process of retiring. These are the individuals born between 1946 and 1964. How will this mass exodus impact the job market? Here are a few different ways so that you can plan ahead:
More flexible schedules for workers.
Many Baby Boomers are comfortable with traditional office hours and workplace schedules. However, younger generations crave a more flexible schedule, especially considering many households have two income earners. As Baby Boomers are retiring more and more, you’ll see employers meeting the demands of its younger workforce with increased flexibility, including opportunities to telecommute and work a flex schedule.
A more significant knowledge gap.
If you don’t plan ahead to deal with retiring Baby Boomers, your company could experience what’s known as a “knowledge gap.” This happens when those who have a specific and specialized set of skills and experience retire without passing on their knowledge and expertise to the next generation. To avoid this, many companies have knowledge transfer plans in place.
An impact within specific industries.
As Baby Boomers retire and continue to age, it will have a more significant impact on some industries over others. For instance, this generation will be using more health care as they get older, increasing the demand for doctors, nurses, and at-home care professionals. As they retire, there could also be an overall decrease in their non-essential spending since they’ll be bringing in, on average, 80% of the income they made when they were working full-time.
More part-time jobs.
While many Baby Boomers are eligible to retire, many are hesitant to do so. They want more flexibility and freedom in their golden years but still want a structured workday. It’s why more part-time and consulting type opportunities are opening up in the job market for those with a specialized skill set. It enables employers to take advantage of the knowledge Baby Boomers have without adding considerably to their overhead. At the same time, it gives Boomers more flexibility while remaining employed.
Do you need help navigating the challenges of today’s workforce?
Whether you’re looking to hire or train and retain top employees, Gill Staffing is here for you. We have the expertise to help you manage today’s multi-generational workforce and get the right people, in the right positions. Contact us today to learn more!
