We are in the midst of a huge demographic/personnel shift. Is your business prepared for the talent voids?
Did you know there are now four generations in the workforce? Here’s a quick snapshot:
- Baby Boomers: Born 1946–1964
- Generation X: Born 1965–1980
- Millennials: Born 1981–1996
- Generation Z: Born 1997–2012
- Generation Alpha: There is conflicting data on this generation. It starts somewhere between 2010 and 2013 and ends in 2024 or 2025
Concurrently, massive changes are taking place in the world and industry in terms of the skills needed to ideate, manage, and drive our businesses. To name a few: AI, processor speeds, data collection and usage, genetics, global warming, political tensions, post-COVID attitudes, and more.
Still not convinced that you need to start acting on these changes? There’s more:
- Gen Xers are closing in on 60
- Millennials are now a larger population than Boomers
- Gen Z’s oldest members are 27. People born in the 2000s are college graduates
What about the Boomers? What is happening with that generational group?
They’re leaving the workforce in droves! An estimated 76,000 Boomers are leaving work every week in the United States. That’s nearly 11,000 per day or 4 million each year. The so-called “Peak Boomers,” born between 1959 and 1964, represent over 30 million workers who are expected to retire between now and 2029.
“We are in the early stages of the largest retirement-driven, workforce turnover in our nation’s history,” said Jason Fichtner, who commissioned the labor force analysis by RII study as Executive Director of the Alliance for Lifetime Income’s Retirement Income Institute (RII). “These retirements have already begun and will continue to have a significant impact on our economy.”
Here are some questions you should be asking yourself: What’s my plan for when the Baby Boomers retire en masse? Am I prepared for the talent exodus that’s already underway?
The exit of Baby Boomers in our industry could create a talent gap and brain drain. Their 30-plus years of industry knowledge will walk out the door with them. Think about how much tribal knowledge resides in the heads of our senior people. If too many of these knowledgeable folks leave to enjoy their golden years, we could have costly voids in critical roles.
The U.S. doesn’t have a sufficient number of people who are willing or desire to take on many management roles. Fewer Americans are participating in the job market. The labor force participation rate is only at about 62.5 percent as of January 2024. The U.S. Bureau of Labor Statistics defines the participation rate as the percentage of the population working or actively looking for work.
“Kids nowadays are nothing like we were at that age!” We’ve all heard it, maybe even said it, but let’s be honest—it’s both right and wrong, just as it was when Boomers said it about Gen Xers 40 years ago.
Perhaps I should have titled this story “Wake Up Call!”
This workforce shift isn’t just a challenge—it’s an opportunity:
- Gen Xers, Millennials, and Gen Zers: This is your time to step up and learn, develop, get mentored, and take on larger roles and responsibilities
- Businesses: Start now! Invest in training and upskilling employees to step up and take the place of the managers who will leave the company. Think offense now, not defense/react later
- Boomers, and perhaps some Gen Xers: Plan your exit or your stay; communicate and collaborate with your employer
I know people who have 2–3-year strategies and plans with their employers. This includes mentoring their replacements and methodically letting go of the reins. I know one produce vet who loves working at his company and wants to work until he can’t. His goal is to stay and ease off over time and make less money accordingly while continuing to add value at every stage.
I’ll repeat it: START NOW!
The multi-generational workforce is here to stay, and with it comes a wealth of diversity, innovation, and resilience. Let’s embrace the future together—because the companies that thrive will be the ones that blend experience with fresh perspectives, creating a dynamic workplace for all.
11 Actions to Get Ahead of the Wave:
- Assess your talent for gaps and upcoming gaps.
- Train and cross-train.
- Start mentorship programs.
- Look at creating alternatives to retirement, such as reducing people’s hours and stresses.
- Have proactive planning conversations with those who may be considering retirement in the next few years.
- Offer “returnment” for those who are retiring and may opt to return in a capacity that suits their stage in life.
- Upskill people who have the attitude, aptitude, and desire and need the training and nurturing to develop their abilities.
- Recruit talent early before it becomes a fire.
- Assess your company’s desirability and ability to retain talent. Adjust where needed.
- Map out your succession plans by department.
- Identify the tribal knowledge bases that need to be shared and trained.
The future belongs to the businesses that adapt, invest in their people, and prepare for tomorrow’s talent landscape today. Don’t wait until the gap becomes a chasm. Start taking action now and stay ahead of the curve.
Enjoy the Journey!
P.S. There are some super smart, eager, hard-working people in Gen X, Millennial, and Gen Z. And there are some awesome Boomers who still have tons of passion, energy, and desire to accompany their years of skills and experience. Never discount anyone for their age. 
