Retiring baby boomers creating skills gap headache for more than three-quarters of employers
More than three-quarters (77 per cent) of finance directors are worried that their business will struggle with skills gaps over the next five years as the baby boomer generation reaches retirement age.
Research released today by recruitment consultancy Robert Half found that, of the more than 200 senior finance executives surveyed, 88 per cent were already taking steps to mitigate the impact of their older workers leaving.
Initiatives being implemented to limit the loss caused by retiring baby boomers, who are currently aged between 51 and 69, include increasing training programmes (45 per cent), enhancing benefit offerings (32 per cent) and hiring mid-level staff to build a talent pipeline (27 per cent).
Those in smaller businesses predict they will be worse off, with 84 per cent predicting they will be negatively impacted as the baby boomers leave, compared to 77 per cent in medium-sized businesses and 69 per cent in large businesses.
“Employers are facing a profound shift as baby boomers look to exit the workforce, compounding the existing skills gap,” said Phil Sheridan, UK managing director of Robert Half. “With employers challenged in finding the skills they need to grow their businesses, establishing a succession plan with a robust attraction and retention strategy will be critical to succeed in today’s economy. In some cases, offering project or interim contracts to employees nearing retirement will open up positions for aspiring managers to move up the career ladder, while still operating under the guidance of a mentor.
“However, it is important to recognise that younger generation X and Y employees will expect different social contracts with their employers and that this should form the second phase of any baby boomer transition planning.”