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Employers brace for baby boomers and seniors to leave jobs

Fifty years ago the nation welcomed more than 75 million babies.

But now, these baby boomers are nearing retirement age and employers are facing a loss of up to half their upper-level work force.

The biggest boom in births now is leading to a retirement crunch for many companies, including some of the biggest employers in Fort Collins.
Technology impact

According to the National Science Foundation, by the age of 62, about 50 percent of science and engineering professionals are retired. That leaves Hewlett-Packard with the task of preparing to lose a large portion of its work force.

“HP, like most large companies, is experiencing the baby boomer retirement phenomenon,” said Betty Smith, university recruiting manager for the Americas region.

In 2004, it was estimated that HP’s Fort Collins site employed 3,000 individuals. But Ed Woodward, media spokesman for HP, said the company doesn’t have demographic breakdowns for specific sites to show the number of individuals nearing retirement age.

In an effort to help fill those jobs, HP is partnering with universities in a heavy recruiting endeavor.

“We know very well we’re going to have a lot of our work force to replace,” Smith said. “(The) job market is very hot in the (United States) right now.”

But the majority of HP hires are experienced rather than entry-level and HP is in the developmental stage for a new program that will help prime existing employees for more advanced jobs.

“Some companies have talked about it, but we’re actually doing it,” Woodward said.
Education impact

Good news from the higher education sector in Fort Collins: Colorado State University doesn’t anticipate a huge crunch to fill a large number of jobs.

Taking a proactive rather than reactive step, Vice Provost for Faculty Tom Gorell said the university tries to stay ahead of the game with about 1,000 faculty members, hiring about 30 to 40 new faculty members each year.

So rather than waiting for employees to retire and then looking to fill those jobs, the university conducts job searches while older employees prepare for retirement.

“We like to know ahead of time so we can plan,” he said of the many faculty members who give about a year’s notice of their impending retirement.

CSU also provides the option of transitional retirement, depending on eligibility. That means one to four years before permanently retiring, employees can work on a part-time basis, giving the university time to find a replacement. Gorell estimates about 40 percent to 50 percent of faculty go on transitional retirement.
Government impact

Although the city of Fort Collins is not prepared for the impending baby boom retirement phase, it might have an easier time because of its contrast with the private sector.

The average age of a city employee is 47, not including seasonal employees, said Janet Miller, human resources director.

But higher retention rates could prove to be a detriment to the city as more begin to retire.

The city has more than 700 workers in the 43-to-61 year old age range, a larger percentage of the 1,200 member work force.

“This is really a nationwide problem or opportunity, depending on how you look at it,” Miller said, adding that the key for the next eight to 10 years is to focus on attracting a younger generation of workers.

While the city is discussing plans to help fill jobs lost to retirement, those plans are only in their infancy, Miller said.

One example would include a phased retirement, a concept gaining popularity. For those considering retirement, the city would decrease their workloads and possibly use them in other capacities, such as mentoring fellow employees.

“We’re also worried about the knowledge drain as we watch this population leave institutions,” she said. “This is a whole different ball game. It’s not limited to a particular career or field.”
Bridging the gap: New hires

As millions of people are thinking about or actually retiring, companies are left with spots in desperate need to be filled. Many companies are looking for top-notch college graduates who have the potential to rise into those high-level jobs.

The Career Center at CSU is working to bridge the gap between students and some of the region’s most powerful companies, such as Hewlett-Packard.

Coming up with more creative ways to reach soon-to-be college graduates, employers are taking advantage of things such as podcasts and blogs, in addition to the traditional career fairs and focus groups.

To prepare students for all careers, including business, science and engineering and arts, the university requires many seniors to complete senior capstone classes.

“It stimulates real world experiences,” said Brian O’Bruba, associate director of the Career Center, including teaching students how to handle generational differences of working with people traditionally seen as their superiors rather than peers.