U.S. firms, as of New Year’s Day, will no longer be on the brink of facing a labor shortage as baby boomers retire.

They’ll be there. In fact, a woman who will be 62 on Jan. 1, 2008, became the first person in her generation to officially file for Social Security benefits when she did so on Oct. 15 in Washington, D.C..

While it is highly unlikely that the majority of the 80 million Boomers will leave the workforce en masse during the next five years, the U.S. is facing a situation that will see up to 10,000 retiring each day, reports the American Association of Retired Persons.

This demographic accounts for 45 percent of the current workforce. The replacements for the Boomers, GenX workers, or those between 35-45 years-old, number 45 million. Prospects may be good if someone is searching for a job, but employers will be facing fewer candidates and tougher competition for talent.

“The way we recruit today is different than 20 years ago,” said Jayne Zouvas, senior consultant for Human Resource Management Systems, LLC in Naperville. “Firms can’t be thinking just about job openings. You always should be cognizant of what talent is needed. The start-stop method of recruitment doesn’t work.”

Zouvas said that acquiring talent has become a supply chain function and can almost be seen as a marketing responsibility now. Companies should treat the situation as if they are consumer advertisers.

Because candidates will presumably have many opportunities to choose from, top talent will be harder land. In the past employers could afford to be selective, but in today’s market the company offering the position is undergoing an interview of sorts as well.

“When a candidate comes into your office treat them like they are a guest in your living room,” she said. “Top talent will be sizing you up. Candidates are not lining up at the door today like they used to.”

An important part of the recruitment process is to understand the differences between the motivating factors for Baby Boomers and GenXers, said Zouvas.

Baby Boomers could be lured by monetary compensation and the opportunity for promotion within an organization, while the Gen X demographic focuses on things such as time off and the ability to work independently, she said.

“The GenX generation is fast-paced,” Zouvas said. “The way to retain them is to pay attention to their needs. It has become a science to retain and attract talent.”

Retention will be a problem for employers as well. Dissatisfied employees will have more opportunities to find new jobs and the cost of turnover could be high.

“The cost of turnover can sometimes be 1-2 times the cost of the salary you are recruiting for,” said Zouvas. “If you have a retention problem, you will have a recruiting problem.”

The best way to recruit is to have employees do it through referrals. It shows that an employee is satisfied enough with a company to recommend it to a friend and it cuts down on the cost of a search.

Zouvas said that the process of taking out an advertisement in the Sunday paper is outdated and that today’s job searcher will be looking for positions on-line. Companies must also be aware of their competition’s practices and benefits if they hope to entice candidates with equal or better offers.

The most common mistake made by recruiters is not clearly defining what kind of candidate they are looking for, she said.

While turnover will be costly regardless, if a company has a focused recruiting process, it will save money in the long run.