The handwriting is on the wall, but many business people are not paying attention to a trend that will impact their businesses in DuPage County as well as around the nation.

Numerous studies report that employers are well aware of the implications of large numbers of retirees in the coming years. The Baby Boom generation (born 1946-63) this year begins to turn 62, the first of the two typical retirement ages.

But little has been done to prepare for the inevitable, said MaryBeth Marshall, executive director of the DuPage Workforce Board.

The issues related to an aging workforce and shrinking labor force will have an impact on the economy of DuPage County.

“It is critical that efforts be made now to minimize the impact through increased awareness and preparation,” she said.

Toward that goal the Board has issued a report, “Impact of a Maturing Workforce in DuPage County.”

Marshall emphasized that the report should not lead people to conclude that all people are planning to retire at 62 or 65 years of age. She pointed to Marlene M. and Joe M. as examples of people working longer.

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The report notes that the aging of the population along with slow labor force growth will result in fewer workers to produce goods and provide services.

“Without a major increase in productivity or higher than projected immigration, low labor force growth will result in slower growth in the economy,” the report says.

The report not only mentions changing ways of dealing with potential retirees but also with positioning for attracting another group of employees, Generation Y, born between 1982 and 1993. It will become the largest population group since the Baby Boomer generation to enter the workforce.

First, employers need to improve their methods of dealing with Baby Boomers.

“Efforts to manage both the number of individuals leaving the workplace, as well as the loss of institutional knowledge have been minimal,” Marshall said.

Three recommended steps for preventing “brain drain” are:

•Identify vulnerabilities. By doing an age profile of workers by work unit or function, a company can determine the average age of employees and identify who is most likely to retire or leave the company for other reasons.

•Identify types of knowledge at risk. Using interviewing and social networking analysis software will enable a company to identify knowledge that is most valuable and determine where to focus knowledge retention efforts.

•Choose appropriate methods. If the focus is to transfer tacit knowledge or experience that is hard to document, effective methods include mentoring programs or communities of practice that bring older and younger workers together for extended periods. If there is a need to document information quickly before key employees retire, creating databases and other repositories are most effective.

While initiatives aimed at retaining and transferring knowledge are excellent first steps, Marshall said most technical skills are acquired and mastered over time.

Many companies are recognizing that retaining older workers in either a reduced or contractual capacity is a viable solution for “buying” extra time for new workers to mature in their jobs, Marshall indicated.

She said a number of studies have indicated that flexible work arrangements are one of the most effective strategies for retaining older workers. She mentioned “One Size Doesn’t Fit All, Issue Brief 05 from The Center on Aging and Work at Boston College.”

Marshall also pointed to the Cornell Retirement and Well-Being Study, which indicated that 79 per cent of older workers (55 to 74) prefer to remain working, but most of them do not want to work full time.

To meet the needs of this group flexible work arrangements might include:

•Choices regarding the number of hours an employee can work (e.g., full-time, reduced hours, job sharing, or phased retirement) and when those hours are worked (e.g., flexible scheduling and compressed work week).

•Choices regarding places where the employee can work (telecommute or alternative work locations).

•Choices regarding job/task assignments (redesign of job based on worker’s experiences, abilities and preferences).

Once these types of arrangements are made, employers need to also prepare for Generation Y. With a shrinking labor pool in the future, businesses will be competing more than ever for skilled workers, the report noted.

“The smartest businesses, those intending to recruit and retain a highly skilled workforce, are taking steps to understand what their future workforce will want and likely demand,” it said.

Marshall said companies who form partnerships with educational institutions to recruit Generation Y people before they complete their educational programs and offer internships during the summer months, will be positioned to access their future workforce.

Those companies that are successful in transforming their business culture and practices to accommodate Generation Y will have a competitive advantage, she said.

To attract and engage Generation Y employers should provide items such as:

•Long-term career development and multiple experiences within a single organization.

•Sense of purpose and meaning in work.

•Availability and access to mentors and other company champions.

•Work/life flexibility.

•Tech-savvy work environment.

•Open social networks that enhance open/honest communications.

Marshall emphasized that there is no “one size fits all” strategy to ensure that companies can continue to have the workforce necessary to remain competitive in a global economy.

Companies need to access their current workforce, she said, and seek out creative strategies to ensure that they can maintain the knowledge base of their workforce and attract new workers to their industry.

The DuPage Workforce Board, which is a business-led policy and decision-making body, can provide resources to help companies, Marshall said. The local organization was one of many workforce boards created by the 1998 federal Workforce Investment Act. The Act included a mandate to create a workforce development system that meets the needs of employers for qualified workers and expands employment opportunities for residents.

“One certainty is that given the maturing of the workforce, companies need to acknowledge the changes and begin to plan for the future,” Marshall said.