April 18, 2005
COMMENTARY: Opportunity knocks | The aging workforce gives employers dependable workers — and politicians a reason to reduce the size of government
By Dave Tomm
Chairman, Seasoned Workforce Program, Rockland
We are getting old ˆ not just here in Maine, but across the country.
According to the U.S. Census, by early next year 50% of the population will be over 50 years old. In Maine, more than 55% of our population is already over 50. Over the next five to 10 years, half of state employees will be retiring.
In addition, today's graduating classes are smaller, and the pool of qualified workers is smaller. Between the baby boomers (born 1946-1964) and the silent generation (born before 1946), 55% of the workforce is reaching retirement age. The X and Y generations (born from 1965-1977 and 1978-1986, respectively) represent only 40% of the workforce. Together, they simply do not have enough people to replace the millions of people retiring.
At the same time, our state government continues to throw money into dwindling school populations, create more state jobs and fund grant programs that have outlived their usefulness.
The solution seems logical: Reduce the size of government through attrition and, more importantly, eliminate needless duplication between departments. With huge deficits, increasing taxes and now a shrinking workforce, government needs efficient and effective leadership. There has never been a better time to reduce the size of government than right now.
There are other opportunities stemming from the fact that boomers are the largest, healthiest and best-educated generation in history. They'll live 20 to 30 years longer than their grandparents. With regular mental and physical exercise, they can easily live well into their 80s and 90s. The strain this older population places on entitlements ˆ Social Security and Medicare ˆ is already a problem. At the same time, though, businesses cannot grow and prosper without workers. It is obvious that keeping the seasoned worker active has numerous value-added benefits to our society.
In 2002, the Seasoned Workforce Program and the Rockland/Thomaston Area Chamber of Commerce, in coordination with the Camden-Rockport-Lincolnville and Belfast area chambers, implemented an initiative to address Maine's shrinking workforce.
Initially, we hoped a coordinated effort using existing public and private agencies and resources would best address the issue without adding more government or nonprofit organizations. Our results within the private sector have been good, while bureaucratic confusion in the public sector has been disappointing. The SWP is in the process of becoming a nonprofit to help develop programs that will address the many issues surrounding the dwindling workforce.
Educating businesses and the public about the serious economic problems caused by the shrinking workforce tops the SWP agenda. Many businesses pay lip service to the value of older workers, recognizing their reliability and low turnover rates. Yet corporate human resource departments have procedures that frequently eliminate opportunities for these workers because of their age.
The Supreme Court recently ruled on several cases against employers that discriminated against older workers. This should not be a question of law but of common sense for businesses everywhere. Careers that last 30 to 40 years with the same company are now an exception. If the average term of employment with a company today is less than 10 years, a 50-plus worker still can offer exceptional opportunities for a business looking for a reliable, skilled employee.
Progressive organizations are addressing the shrinking workforce challenge through the creation of innovative programs. Home Depot has a "snowbird" program that encourages seasoned workers in retirement to work part-time in Maine during the summer and in Florida in the winter. Borders bookstores are seeking retired teachers and other seasoned people who have worked in publishing or related fields to work part-time at their locations across the country. AARP and a growing number of private sector companies have formed partnerships to recognize and utilize the labor of seasoned workers. Closer to home, L.L. Bean, Hannaford Bros., Microdyne and other companies are hiring seasoned workers.
Still, those hiring seasoned workers do face some challenges, one of which is their frequently inadequate knowledge about new technologies ˆ particularly computers and the Internet. The SWP is trying to coordinate adult education programs within local schools, and investigating possible mentoring programs that will help new employees learn the skills they need.
In the end, seasoned workers have different needs and skills, but they are fully capable of learning and contributing their labor to our economy and our society. As the private sector ˆ the business community ˆ looks for solutions to the looming workforce crisis, there are some spectacular opportunities. But we must act now.
We are getting old ˆ not just here in Maine, but across the country.
According to the U.S. Census, by early next year 50% of the population will be over 50 years old. In Maine, more than 55% of our population is already over 50. Over the next five to 10 years, half of state employees will be retiring.
In addition, today's graduating classes are smaller, and the pool of qualified workers is smaller. Between the baby boomers (born 1946-1964) and the silent generation (born before 1946), 55% of the workforce is reaching retirement age. The X and Y generations (born from 1965-1977 and 1978-1986, respectively) represent only 40% of the workforce. Together, they simply do not have enough people to replace the millions of people retiring.
At the same time, our state government continues to throw money into dwindling school populations, create more state jobs and fund grant programs that have outlived their usefulness.
The solution seems logical: Reduce the size of government through attrition and, more importantly, eliminate needless duplication between departments. With huge deficits, increasing taxes and now a shrinking workforce, government needs efficient and effective leadership. There has never been a better time to reduce the size of government than right now.
There are other opportunities stemming from the fact that boomers are the largest, healthiest and best-educated generation in history. They'll live 20 to 30 years longer than their grandparents. With regular mental and physical exercise, they can easily live well into their 80s and 90s. The strain this older population places on entitlements ˆ Social Security and Medicare ˆ is already a problem. At the same time, though, businesses cannot grow and prosper without workers. It is obvious that keeping the seasoned worker active has numerous value-added benefits to our society.
In 2002, the Seasoned Workforce Program and the Rockland/Thomaston Area Chamber of Commerce, in coordination with the Camden-Rockport-Lincolnville and Belfast area chambers, implemented an initiative to address Maine's shrinking workforce.
Initially, we hoped a coordinated effort using existing public and private agencies and resources would best address the issue without adding more government or nonprofit organizations. Our results within the private sector have been good, while bureaucratic confusion in the public sector has been disappointing. The SWP is in the process of becoming a nonprofit to help develop programs that will address the many issues surrounding the dwindling workforce.
Educating businesses and the public about the serious economic problems caused by the shrinking workforce tops the SWP agenda. Many businesses pay lip service to the value of older workers, recognizing their reliability and low turnover rates. Yet corporate human resource departments have procedures that frequently eliminate opportunities for these workers because of their age.
The Supreme Court recently ruled on several cases against employers that discriminated against older workers. This should not be a question of law but of common sense for businesses everywhere. Careers that last 30 to 40 years with the same company are now an exception. If the average term of employment with a company today is less than 10 years, a 50-plus worker still can offer exceptional opportunities for a business looking for a reliable, skilled employee.
Progressive organizations are addressing the shrinking workforce challenge through the creation of innovative programs. Home Depot has a "snowbird" program that encourages seasoned workers in retirement to work part-time in Maine during the summer and in Florida in the winter. Borders bookstores are seeking retired teachers and other seasoned people who have worked in publishing or related fields to work part-time at their locations across the country. AARP and a growing number of private sector companies have formed partnerships to recognize and utilize the labor of seasoned workers. Closer to home, L.L. Bean, Hannaford Bros., Microdyne and other companies are hiring seasoned workers.
Still, those hiring seasoned workers do face some challenges, one of which is their frequently inadequate knowledge about new technologies ˆ particularly computers and the Internet. The SWP is trying to coordinate adult education programs within local schools, and investigating possible mentoring programs that will help new employees learn the skills they need.
In the end, seasoned workers have different needs and skills, but they are fully capable of learning and contributing their labor to our economy and our society. As the private sector ˆ the business community ˆ looks for solutions to the looming workforce crisis, there are some spectacular opportunities. But we must act now.
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