Indiana, like the rest of the nation, is on the brink of a major demographic shift as Baby Boomers enter their elder years. Even more significant is how a large portion of the aging population will be spending at least a portion of that time - working.
Of Hoosier adults age 60 and older, 28% are working part or full time; if everyone in that age group who wanted to work were employed, that number jumps to 47%, according to a report by the Center on Aging and Community at Indiana University. With the current economic downturn, even more employees nearing retirement age are expected to stay in the workforce longer as they rebuild lost savings - and employers will depend on these workers even more for their knowledge and experience.
Workforce Wise, a new initiative from the Indiana Chamber Foundation, aims to find solutions to challenges from the aging and shrinking of Indiana's qualified workforce. It is another evolution of the Chamber's efforts to address workforce matters in Indiana. In 2006, the Chamber launched ReadyIndiana.org to provide solutions to workforce literacy challenges.
"Workforce issues remain a top priority for the Indiana Chamber, and addressing aging workers is the natural progression in our efforts," states Mark Lawrance, Indiana Chamber senior vice president for foundation and operations. "Older workers offer experience and are often engaged in their communities; this initiative will help employers understand how to retain those strengths."
While the graying of workers is something companies notice, many are not prepared. Hoosier businesses have not been implementing specific strategies to retain and retrain older workers, according to a University of Indianapolis Center for Aging and Community report. The 2005 employer survey found:
- 9 in 10 employers indicated there would be a knowledge loss when an older worker leaves, with 3 in 5 indicating it would be a major loss in knowledge
- Only 1 in 10 organizations offered continued full time, part time or contractual employment for retiring workers
- 30% were very or extremely concerned about the number of pending retirements among Baby Boomer-aged employees
Workforce Wise's broad-based steering committee - including representatives from universities, social services organizations, not-for-profits and the business community - is reviewing existing research and determining the next steps for addressing the aging workforce.
Forthcoming studies will examine implications of the aging workforce from a tax/public policy perspective, model employer practices, education/training alternatives and communities; the first of the series is expected to be released this fall. As the Workforce Wise initiative grows, resources will be available for employers on utilizing elder workers as assets.
Indiana is still at the leading edge of the graying population. Over the next 35 years, the 65-and-older group will account for 63% of Indiana's population growth, according to the IU report. Additionally, the 65-plus group will double from 753,000 in 2000 to 1.48 million in 2040.
Lawrance concludes, "As so much focus is placed on the economic downturn, we cannot ignore ongoing workplace issues. By examining this changing demographic now, Indiana employers will be better prepared to face those challenges and will benefit from a more experienced and diverse workforce."
Recent reports on aging (including four-page summaries and full details of the Indiana University and University of Indianapolis studies) and more information about the initiative are available online at www.workforcewise.com.