Old Workers Could be the Key to Success

American businesses could face an enormous problem as 80 million highly skilled and experienced workers of the baby boomer generation reach retirement age.  By 2024, severe labor force shortage on every sector could happen if the 4 million workers leaving the labor pool annually will continue.  Veteran workers bring with them a plethora of business intelligence such as professional networks, specific skills, and organizational know-how.

Job Shortage Feared

Worse, the Bureau of Labor Statistics predicts that the employment figures for the 16 to 25 age group will decline between the period 2006 and 2016.  Employment of 25 to 54 age bracket however will only post a very slight increase during the same period.  The dwindling number of the labor force will not be able to fill up the void left by retiring old workers.  Job shortages will be especially severe on sectors that need highly skilled professionals.

All is not bleak however for the future of the US labor force.  A recent study showed that 70 percent of employees in their 60’s or older intend to continue working beyond their retirement years.  Hiring of old workers belonging to the age bracket 55 to 64 is expected to increase by 36.5 percent.  According to the study, hiring figures for 65 and older workers will likely to go up by 80 percent. 

Telecom, Consulting, Hiring Retired Workers

The telecommunication sector led the way in hiring workers who took early retirement packages.  Companies such as R&B Network Services already hired retired workers who are too energetic to stay at home.  Educational institutions on the other hand search for workers that have at least 25 years of experience.  This means that their average work force will be composed of experienced workers in their 50’s and 80’s. 

Retirees getting back to work are considered by most educational institution as enriching their school environment.  Their experience and knowledge are considered very useful resources.

The government consulting sector is also hiring more retirees.  VectorCSP, a consulting firm that provides services to federal agencies offers an example.  VectorCSP’s work force is composed of ex-Coast Guard officials that have knowledge of VectorCSP’s aviation technology.  The company claimed high rate of retention while their employees are motivated by their sense of duty to continue to offer services for their country.

Companies in the consulting and staffing industry are in a position to find jobs for retirees and fill up vacant posts.  Patrick Jones of Addison Search said that as much as 15 percent of their contractors are old workers in their mid-50s.  The company is doing well after starting to hire retirees and old workers last 2005.

Jones said that retiring workers are the most highly valued employees because of their productivity.  Jones added that companies could get significant benefits by hiring older workers.