The majority of organisations in the US are not prepared to manage the skills shortage due to baby boomers retiring, despite acknowledging the reality of the looming talent crisis.

24 August 2006

AMSTERDAM - A new survey reveals that although the talent crisis due to retiring baby boomers is recognised by organisations in the US, the majority are not prepared to manage the skills shortage.

The survey carried out by HR consultancy Knowledge Infusion found that 74 percent of the 375 participating companies believe that the aging workforce will somewhat or greatly impact their organisation's ability to execute goals and strategy by 2010.

The research also shows that larger companies are expecting more of a talent shortage from the upcoming baby-boomer retirements than their smaller counterparts, and half of the organisations indicate that retirements will cause a knowledge/skill gap, which many believe will lead to reduced capacity, lower quality of work, and increased expenses associated with attracting and retaining skilled workers.

The top three operations which companies have put in place to address the knowledge/skill gap according to the survey, are automating processes, formalising succession planning programmes, and mentoring programmes.

"The talent shortage due to retiring boomers is not just an HR problem but a business problem," said Mike Brennan of HR consultancy Cornerstone OnDemand which presented the survey results in collaboration with Knowledge Infusion. "Likewise," he added, "Knowledge mangement is not just an IT problem but a business problem."

[Copyright Expatica news 2006]