Three fundamental demographic trends are impacting the workplace today with a lasting footprint for the future: the aging workforce, the rise of the millennial generation, and a more culturally diverse workforce population. This abstract focuses on the aging workforce, or “Silver Tsunami” as it is oft referred to. Since 2011, ten thousand Baby Boomers are turning 65 every day, and this trend will continue unabated through the year 2030. One out of every four employees will be 55 or older in the year 2020. Furthermore, one out of four employees will be age 65 or older in 2024, which is the standard age used to benchmark retirement eligible employees in the workplace. (note: veteran status employees are eligible to receive retirement benefits beginning 55 years of age, which can result in early retirement for that segment of the workforce).
The corporate outlook on managing the timing of employee retirement indicates that a full 80% of organizations surveyed by Willis Towers Watson (see the survey report “Working late: Managing the wave of U.S. retirement”)1 view managing the aging workforce as an important business issue, yet only 25% feel they do so effectively. An aging workforce not only impacts the composition of the workforce in terms of staffing and workforce planning, but the intellectual capital lost can become an immeasurable cost when not managed well. Organizations must understand the composition of their workforce, so they may more effectively manage the timing of those retiring and put succession plans in place. In terms of professional development and reducing the flight of intellectual capital, mentorship programs have proven as effective countermeasures. They help develop the workforce and reduce possible disruption as turnover occurs amongst those retiring.
1 | Source: https://www.willistowerswatson.com/en-US/Insights/2018/12/working-late-managing-the-wave-of-us-retirement
Approaches for HR to overcome aging workforce issues
In order to effectively manage the aging workforce, a clear understanding and measurement of those eligible to retire, and when, is key. We will explore how Ingentis org.manager can help your organization measure the composition of your staff to help you address the following related business issues.
- Which parts of our organization are most susceptible to employee turnover resulting from an aging workforce?
- Do we know when our key Boomer performers in the organization may be eligible to retire?
- Do we know which Boomer employees hold veteran status which could trigger early retirement at the age of 55?
- How can we encourage valuable Boomer employees to postpone retirement?
5. Do we have a Succession Plan to promote internal placement of employees to fill spots opening due to retirement?
6. How can we transfer Boomer employee knowledge, skills and experience to mid-career professionals to help drive succession plans?
7. How can we develop employees across all age groups?
8. How can we attract, engage and retain younger employees?
Charting the composition of the aging workplace
Initiatives such as succession plans and mentorship programs are key drivers of success for organizations with an aging workforce. The ability to measure and monitor the composition of an aging workforce is critical in order for an organization to evaluate how it can best position itself for success, and which employees should be assigned successors or serve as mentors. Ingentis org.manager helps organizations measure retirement eligibility across the entire organization, including providing additional data insights for years of service and identifying high performers and successors, to better understand the composition of the aging workforce and timing of possible retirements. Ingentis org.manager provides clear measures on the percentage of employees eligible to retire in five years or less, and this timing is further segmented for shortterm measurements and planning.
Ingentis org.manager displays an org chart that measures the percentage of employees eligible to retire within 5 years, along with a detail breakdown of the number of employees that are eligible to retire now, within 1 year, within 2-3 years, within 4-5 years, or greater than 5 years.
Ingentis org.manager visualizes the composition of an aging workforce along with measures to better understand the percentages of employees who are retirement eligible along with the potential timing and numbers of employees eligible to retire in the future to facilitate succession planning and engaging those top performers to try to retain their talent for a longer period. The org chart view on the left provides an easy-to-read visualization to better understand the composition of the aging workforce and percentage of employees that are eligible to retire in 5 years or less.
Aging workforce insights down to the individual employee level
While broad measures help drive understanding of the entire workforce and where most employee turnover may occur due to retirement eligibility, it is also helpful to understand and measure the workforce at the individual employee level. Ingentis org.manager provides an org chart view that measures each individual employee – when they will be eligible to retire, if they are a high performer, and their years of service.
Ingentis org.manager can display more than just org charts. Here is an example of our dashboard view that presents the composition of the aging workforce by department and span.
Ingentis org.manager can display retirement eligibility timing for each employee, as well as their total years of service and if they are a high performer (blue icon with star). The views can be filtered easily to display, for example, only those employees eligible to retire in 3 years or less. You can decide which employees will be displayed based on the attributes you select.
Aging workforce reporting made easy
Ingentis org.manager can help your organization by automatically creating org charts and dashboard views without any manual steps required. The org charts can be updated on a recurring schedule and include print and data export capabilities, so you can easily share this information, e.g. by including the latest findings in a PDF or part of an overall slide presentation.
Organizations need to drive more informed business decisions to better manage the timing of retiring employees. Furthermore, through mentorship programs, you can further leverage the intellectual capital of your workforce by developing longer-term career professionals, which can lead to a competitive advantage and greater profitability in the workforce. By implementing Ingentis org.manager to help measure and monitor the composition of your workforce down to the individual department or employee level, you will drive more informed business decisions when it comes to driving your aging workforce initiatives.
Enabling more informed aging workforce decisions
Appreciating the importance and impact an aging workforce can have on your organization, it’s critical to have a solution like org.manager so you can effectively visualize, measure, and report on the composition of your aging workforce. Our solution is meant to support the following use cases to help drive informed business decisions around retirement eligibility:
- Can we measure retirement eligibility across the organization?
- Can we attract & retain younger employees?
- Can we measure years of service of employees?
- Can we identify who will be eligible to retire and when?
- Can we easily identify which depts are most likely to suffer greatest employee turnover due to retirement?
- Do we have succession plans in place for incumbent positions that will be eligible to retire within 5 years?
- Have mentoring plans been established to help retain intellectual capital?
- Can we offer plans to help postpone retirement for key employees?
- Are we taking steps to curb bias in the workplace regarding older employees?
Join our free software webinars to learn more about people analytics with Ingentis org.manager
See how visualizing HR data in org charts, dashboards and diagrams created with Ingentis org.manager can provide you with great insights.
Ingentis org.manager webinars
Is there an easy way to keep org charts up-to-date? In real-time? Without investing too much effort? Three times YES!!! Just check out our org charting tool Ingentis org.manager!
Register now for our free online events to learn more about our org chart creator org.manager!
Ingentis org.manager introductory webinars
Ingentis org.manager special topic webinars
CET = Central European Time; PST = Pacific Standard Time
This is how Ingentis org.manager supports you in managing retirement eligibility
Have a look at this video demoing the visualization tools Ingentis org.manager offers to manage the aging workforce within your organization.
Visit our product demo – experience Ingentis org.manager
Would you like to see for yourself how managing the aging workforce works with Ingentis org.manager? Access the demo here.
Do you have any questions regarding the Ingentis org.manager suite? Are you interested in a consultation? Don’t hesitate to contact us via the contact form below. We look forward to you hearing from you!
* = required field