Boomers Almost

							 Transferring Boomer Knowledge:
How Organizations Can Prepare for the
  Coming Exodus of the Baby Boomer
              Generation

        Amanda D. Burlison

           April 16, 2008
                                                                 Transferring Boomer Knowledge


The Boomers and Their Effect
Who are the Baby Boomers?
       Those individuals included in the Baby Boomer generation were born between 1946 and

1964, the product of post-World War II fertility across America (Stanley, 2006). Approximations

vary on the exact figure, but the Bureau of Labor Statistics estimates that 78 million people were

born during this time span and comprise the largest generation in American history (Dolezalek,

2007a). While the first of the group was spawned in the years immediately after the War, the

cohort actually spans nearly two decades (Dolezalek, 2007b). In fact, the bulk of the Boomers

were born 15 years after the War in 1959, when more than 4.3 million citizens came into

existence. Compared to the smallest group of 3.4 million Boomers in 1946, the biggest portion of

the generation actually came in the later years (Dolezalek, 2007b).

Scope of Boomer Retirement

       The economic impact of the Baby Boomer generation on the United States workforce

was immense. Due to the Boomer entrance into the economy during the 1970s, the pool of

available workers increased by 29% in a single decade, strengthening growth through a sustained

inflow of workers for nearly twenty years (Dychtwald & Baxter, 2007). However, this

consistency of supply has started running out. Traditional retirement age is creeping up on the

first of the Boomers in a mere 3 years, and the bulk of Boomers will be eligible for workforce

exodus in about 15 years. From the 29% growth in the 1970s, this decade will only see a 12%

growth in the American workforce and a mere 4% in the next decade. (Dychtwald & Baxter,

2007). The root of this collapse in growth is the simple result of demographic shifts within the

United States population.



                                             Page | 2
                                                                  Transferring Boomer Knowledge


       Unfortunately for employers, the generations following the Boomers are much smaller in

number. Over the next ten years, the population of citizens ages 18 to 34 will grow by just 7%. In

the following decade, that same age bracket will halt to a mere 3% rate. Similarly, those cohorts

in the midrange of 35 to 54 will also creep along at steady rates, with little growth in the coming

20 years. The only age cohort that will significantly grow will be those citizens aged 55 and

older, including the Boomer generation. This group will continue to increase by 27-28%, due

mostly to the aging of the Baby Boomers (Dychtwald & Baxter, 2007). Estimates of the

workforce composition by consulting firm Ernst & Young indicate that 25% of the total U.S.

workforce will be eligible to retire in just 5 years, and 43% of all American employees will be

eligible to retire in the coming decade (Fletcher, 2008). These figures indicate that a serious

talent shortage in America’s workforce appears eminent.

       The U.S. Department of Labor and Bureau of Labor Statistics predict that the American

economy will support 168 million jobs by 2010. But even at current levels of immigration, the

workforce will only supply 158 million workers, pointing to a labor shortage of almost 10

million employees (Stanley, 2006). The Employment Policy Foundation further projects a

shortage of 35 million workers by 2030 (Dychtwald & Baxter, 2007). This numerical shortage

should not be the only concern for employers. As Boomers exit their organizations, the

possibility looms of their immense supplies of knowledge and experience walking out too. In

fact, a survey conducted by Robert Half International and CareerBuilder.com in 2006 already

showed that over 81% of hiring managers were finding it difficult to attract qualified candidates,

an increase from 55% in 2005. Moreover, 80% of the same hiring managers anticipated it would

be as hard as or harder to get qualified candidates in 2007 (Dychtwald & Baxter,

2007). Competition over those select few qualified candidates will increase recruiting costs,



                                              Page | 3
                                                                  Transferring Boomer Knowledge


training costs, funds needed for retention, and likely diminish retention as skilled workers have

more employment options. Organizations will also face a potentially damaging loss of

institutional knowledge, company culture and client relationships as their Boomer leaders make

the decision to leave the workforce (Dychtwald & Baxter, 2007).

       While the entire American economy will be influenced by the labor shortage created by

retiring Boomers, some industries will feel the pressure more than others. Sectors like

manufacturing, government, utilities, energy, chemical, and aerospace and defense all tend to

have older employees than other industries (Dolezalek, 2007b). For instance, nearly 400,000

federal employees are already at retirement age, according to the National Institutes of Health

(McAdams, 2006). By 2010, just two years from now, almost 50% federal employees and 70%

of federal senior managers will reach 65-years-old (Phillips et al., 2007). Similarly, consulting

firm Hildebrandt International reports that 70% of law firm partners are Boomers (Goldberg,

2007). Unfortunately, even though some industries are at higher risk for talent shortages, many

are failing to address the issue. A survey of Information Technology professionals found that a

mere 47% of them aged 60 and older are training someone to take over their position, or

transferring their knowledge in some other way (McAdams, 2006).

Baby Boomers on Retirement

       Although numerous Baby Boomers will soon be eligible to leave the workforce, the

generation’s views on retirement can offer some solace to organizational leaders, at least for the

short-term. Surveys conducted by the AARP since 1998 and the Merrill Lynch New Retirement

Study consistently indicate that 66-80% of Baby Boomers plan to work either full- or part-time

past the traditional retirement age (Dolezalek, 2007a; Dychtwald & Baxter, 2007). Joe Nathan,

spokesman for AARP even states, "Not all of [the Baby Boomers] specified what year they


                                              Page | 4
                                                                   Transferring Boomer Knowledge


would retire, but we have members who continue to work into their 80s and some who never

plan to retire at all." (Dolezalek, 2007b, na). As this consistent aversion to traditional retirement

shows, Boomers probably will not follow the retirement plans of past generations because of

distinguishing circumstances for the cohort (Hollon, 2006).

Why the Aversion to Retirement?

       While previous generations, such as the Great Generation of WWII, viewed retirement as

a sign of success and closure, Baby Boomers are increasingly rejecting the notion (Dychtwald &

Baxter, 2007). One of the main reasons for this negative response is the dramatic rise in life

expectancy of the average American (McDonald, 2007). In 1910 a citizen of the US would likely

live to be 50-years-old, but the average person in America today will typically live for 77.6

years, according to the National Center for Health Statistics (Hollon, 2006). Because employees

still have almost 13 years of life after traditional retirement age, the idea of leaving work is often

associated with long-term boredom and isolation (Franklin & Frick, 2008). Therefore, Boomers

plan on working longer be physically and mentally active and socially connected (Dychtwald &

Baxter, 2007).

       Another reason Baby Boomers are rejecting traditional retirement is to maintain their

standard of living in the later years of life (Dychtwald & Baxter, 2007). Consulting firm

McKinsey & Co. reports that nearly 75% of Baby Boomers lack adequate finances to live on for

the rest of their lives (Fletcher, 2008). Similarly, the Center for Retirement Research at Boston

College reported in its Health Care Costs Drive Up National Retirement Risk Index reports that

35% of those born between 1948 and 1954 and 44% of those born between 1955 an 1964 would

be “at risk of being unable to maintain their standard of living at retirement'' even if they worked

to age 65 and annuitized all of their financial assets. Once healthcare costs were taken into


                                               Page | 5
                                                                  Transferring Boomer Knowledge


account, this percentage increased to 61% for those in the latter group (Shidler, 2008). In fact,

Boomers as a group report more pain and chronic health problems than people who were the

same age 12 years prior, leading to more healthcare costs and less financial stability (Butler,

2007). The loss of financial stability due to rising healthcare costs and lack of savings for

retirement create circumstances that not only make retirement undesirable for Baby Boomers,

but impossible in some instances.

Current Responses to Retiring Boomers

       Although Baby Boomers as a generation will cause immense talent shortages and express

clear preferences for working well past traditional retirement age, most organizations have been

slow to recognize or respond to these trends (Fletcher, 2008). Challenger, Gray and Christmas,

an outplacement firm in Chicago, surveyed 350 HR managers about the Baby Boomer

retirement, and 30% said between 10 and 30% of their workforce would be eligible to retire in

the next five years. Of this small number of HR managers who recognized the possibility of

losing a larger percentage of their employee pool, a mere 6% of respondents said that they had

asked those employees whether or not they planned to retire (Dolezalek, 2006). A lack of inquiry

is only the beginning. Merrill Lynch also asked employers if they had given thought to

succession planning for retiring Boomers, and only 33% said they had. Moreover, 40% of

employers said succession planning for Boomers is not viewed as an important priority for HR or

senior management (Butler, 2007). Not only are some organizations failing to plan for

succession, but an alarming number are ignoring the circumstances altogether. In a survey of

1,000 U.S. employers, Manpower Inc. found that 78% of organizations are not concerned that an

aging workforce could hamper their ability to recruit and retain qualified workers in the future




                                              Page | 6
                                                                  Transferring Boomer Knowledge


(Weinstein, 2007). It seems that organizations have not come to the realization that their

struggles in finding qualified candidates are related to the Baby Boomer demographic shift.

Before Selection of Transfer Strategies

       Although a large portion of American organizations are failing to address the serious

implications of the coming Boomer exodus, some companies are increasingly becoming aware of

the value of older workers. The global Future of Retirement Study by the HSBC Group found

that employers indeed consider mature workers as just productive and motivated as younger

workers and more loyal and reliable (Dychtwald & Baxter, 2007). Furthermore, as the pressure

of talent shortages tightens in on American organizations, many will be forced to implement

systems for retaining Boomer knowledge and transferring it to younger generations. Before

organizations begin selecting appropriate strategies for transferring Baby Boomer knowledge,

each unique firm needs to forecast their own workforce aging demographics and retirement

trends and the potential risks confronting their organization, even certain departments within

their organization (Dychtwald & Baxter, 2007; Dolezalek, 2007a).

       To determine the specific needs of a workplace, David DeLong president of research firm

DeLong and Associates suggests thinking of the employees who are close to retirement in three

separate groups: 1.) Those who are aging but relatively easy to replace (i.e., salespeople in less

specialized industries, retail store managers, or middle managers in government agencies), 2.)

Higher-skilled employees and managers (i.e., an engineer at a defense contractor or an aerospace

company) and 3.) Highly skilled employees and managers (i.e., a world-class expert in chemical

engineering or a systems engineer). The latter two groups are the most obvious to develop

transfer strategies for retaining their knowledge, since they are both hard to replace and likely to

have more experience and valuable tacit knowledge (Dolezalek, 2007b). However, because these


                                              Page | 7
                                                                  Transferring Boomer Knowledge


groups are aging, they are likely to be underdeveloped and ignored, perhaps leading them to

leave early and abandon companies before knowledge transfer has taken place (Dolezalek,

2007a). To avoid frustrations over blocked careers and frustrated aspirations, often called

"middlescence," organizations must first identify groups and even individuals in their firms that

are at high risk of retiring, through inquiry or educated projection (Dolezalek, 2007a).

Retaining and Transferring Knowledge
       According the authors of Deep Smarts: How to Cultivate and Transfer Enduring Business

Wisdom, most evidence suggests that it can take at least ten years for an employee to become an

expert in their field (Leonard & Swap, 2006). This Ten Year Rule suggests that organizations

could be facing a very serious learning curve with those employees succeeding the Baby Boomer

generation. Unless more efficient methods for knowledge transfer can facilitate faster learning,

the generations stepping into the shoes of Boomers are in for a harsh transition. While some

employers are searching for a “silver bullet” to solve their Boomer exodus needs, it is more

likely that successful knowledge transfer will come from "a portfolio of strategies and solutions''

that balances the retention of older workers with knowledge transfer to younger generations to

create long-term sustainability (Fletcher, 2008).

Retaining Boomers for Longer

       One way for American companies to address the coming loss of Boomer knowledge is to

encourage Baby Boomers to extend the amount of time these employees will work, thus

retaining the experience and wisdom of these contributors for longer (Stanley, 2006; Marshall &

Heffes, 2006). Persuading Boomers to stay in the workforce past retirement age will buffer the

inevitable difficulty in recruiting and hiring qualified candidates from a shrinking talent pool, as

well as extend the amount of time these workers have to transfer knowledge to their successors

                                              Page | 8
                                                                  Transferring Boomer Knowledge


(Meisinger, 2006; Marshall & Heffes, 2006). These employees already know their companies

and what it takes to succeed in today’s economy. Furthermore, a number of organizations are

realizing that these willing, knowledgeable employees can be a competitive advantage. In fact,

solid values, rich experiences, increased engagement, and dedication are more common in these

aged Boomers than their younger counterparts, according to HR consulting firm Towers Perrin

(McDonald, 2007). Despite higher healthcare costs, older workers also make good financial

sense, as they are more likely to have sent their kids through school, to have paid their mortgage

off, and to accept lower salaries than their levels of experience typically demand (Dolezalek,

2007a). Lastly, if organizations fail to retain these workers, they can easily decide to change

jobs, companies or careers, taking their competitive advantage to another organization willing to

invest in them (Dolezalek, 2007a).

       Despite the advantages of holding on to older Boomer employees and the competitive

risks of losing them to other organizations, America’s employers have failed retain the Baby

Boomer generation thus far. Manpower Inc.’s survey of 1,000 U.S. employers showed that a

mere 28% of companies have a strategy for retaining individuals older than 65-years-old, and

only 18% have recruitment strategies for older workers. "Employers acknowledge they are

having some trouble finding qualified candidates to fill open positions," reports ManPower,

Inc.’s vice president of corporate affairs-North America, "but we are learning they need help

implementing programs tailored to older workers." (Weinstein, 2007, na). Realizing that

employers need assistance in changing their perspectives and their organizations in order to

retain Baby Boomers, academics and practitioners surprisingly spend a considerable amount of

time in the literature discussing the variety of strategies for retaining Baby Boomers long past the

traditional retirement age.



                                              Page | 9
                                                                  Transferring Boomer Knowledge


Phased Retirement

         One of the most frequently mentioned strategies for retaining Baby Boomers and their

knowledge is phased retirements. While there is no formal definition of phased retirement, it

typically includes a slower retirement in which aging workers move to a flexible work

arrangement before fully retiring. Some alternatives to a full-time work arrangement include less

hours per day, fewer work days, a short sabbatical, less travel, job sharing with part-time workers

or other Boomers, telecommuting, less physical demands, and work-at-home arrangements

(Shidler, 2008; Calo, 2005; Dychtwald & Baxter, 2007; Dolezalek, 2007a). Many of these

options were originally introduced to retain mothers or employees with elderly parents, but they

can be just as appropriate for Boomers. Kris Jensen, vice president Wisdom Worker Solutions, a

nonprofit that specializes in executive- and life-coaching for Boomers and companies that

employ them, says the Baby Boomer generation consistently wants flexibility and control over

their environment (Jakobson, 2008). Therefore, flexible arrangements provide a meaningful

incentive to Boomers, allowing them to continue their emotional and social involvement with

coworkers and their financial stability in the face of increasing healthcare costs (Calo, 2005).

Phased retirements not only let companies retain Boomer experience and buy time for

knowledge transfer, but many of these alternatives, such as work-at-home arrangements, save

money for organizations by removing wasted commute times and other related costs (Stanley,

2006).

         Due to these individual and organizational benefits, Ernst and Young reports that 29% of

American companies, such as the Blue Cross & Blue Shield Association, are considering phased

retirement programs. However, a mere 9% of organizations in the US have formally

implemented them (Fletcher, 2008). To succeed with phased retirements, Sonja Coffin, a senior


                                             Page | 10
                                                                   Transferring Boomer Knowledge


manager for Ernst & Young of New York, warns that phased retirements are not a perfect

formula: "It really needs to be a program that a company can react to in a flexible format. Each

individual will need a phased retirement that fits them. Some want shared jobs and other want to

work part time. It's not going to be one solution for an entire population'' (Shidler, 2008, p.24).

While phased retirements should be tailored to individual needs, fair and consistent criteria for

participation should be established, such as eligibility requirements, time limitations, and

approval procedures, to avoid exclusion of valuable employees who may not be at the executive

level (Dychtwald & Baxter, 2007). Moreover, employers need to make sure that phased

retirements are still supporting business objectives, not just catering to individual needs for the

sake of traditional and charity (Dychtwald & Baxter, 2007).

Project-Based Consultation

       Another alternative to full retirement that could help employers retain Boomer

knowledge beyond traditional retirement age is project-based consultation (Weinstein, 2007).

Depending on the needs of an organization, employers could hire Baby Boomers to work on

specific projects throughout a business cycle. This arrangement would be similar to a phased

retirement in that Boomers could contract for various workloads and time parameters, except

they would be working as a consultant on particular projects instead of taking on a normal

variety of job responsibilities (McDonald, 2007). An important advantage of project-based

consultation is that it can allow companies to employ Boomers indirectly when pension

restrictions prevent direct re-employment (Fletcher, 2008). Recognizing the benefits of using

retirees as contractors, Microsoft Corp. has created an employee-emeritus program that

determines consultation pay rates and time preferences as employees are retiring, in case former

employees are needed to consult on a project (McAdams, 2006). Project-based consultation


                                              Page | 11
                                                                  Transferring Boomer Knowledge


would provide flexibility to Boomers in choosing the work they enjoy most and are best at, and

these arrangements can provide invaluable guidance to organizations still developing younger

workers in certain business competencies.

Special Benefits

       As organizations respond to aging workers’ needs, special benefits can provide more

incentives for Baby Boomers to stay on with their employers (Dychtwald & Baxter, 2007). For

instance, employers could offer a partial retirement payout for Baby Boomers who take on a

phased retirement that provides a part-time salary (Marshall & Heffes, 2006). Similarly, pension

benefits could be enhanced if Boomers agreed to work for a longer time (Marshall & Heffes,

2006). These benefits would allow Boomers more financial stability to maintain their standard of

living. Another financial incentive could include retention bonuses paid at retirement age to

ensure additional employment. A full payment could be provided at retirement age, after a

certain time period, or a mix of the two options (Marshall & Heffes, 2006). Non-financial

incentives like allowing spouses to travel on business trips for free could also appeal to Boomers

(Geber, 2000). A more personal benefit that specifically caters to the needs of the Baby Boomer

generation is elder care. As Americans as a group live longer, adults will find themselves with

more responsibilities for elderly parents or other kin. The pressures of caring for these elderly

individuals often manifest as absenteeism and lower productivity for employees, and employees

close to retirement might even leave early due to the stresses involved (Dolezalek, 2007a).

Therefore, elder care benefits are yet another way to encourage Boomers to continue their

involvement in the workforce.

       Because Baby Boomers are experiencing more health problems than many generations

before them and they are facing worse financial circumstances, healthcare benefits are a


                                             Page | 12
                                                                  Transferring Boomer Knowledge


particularly important benefit that can encourage Boomers to keep their knowledge and

experience in the workplace (Butler, 2007). Ernst & Young revealed that over 33% of companies

agree that healthcare is a main factor in an employee’s decision to retire, yet more than 50% of

employers are still considering increases in employee co-pays, essentially discouraging Boomers

from choosing to stay with those establishments (Fletcher, 2008). In addition to keeping co-pays

low, organizations can include other special health benefits. For instance, the Blue Cross & Blue

Shield Association’s Mature Employee Retention Program caters to staff members 50 and older

by offering training programs on health-related topics, half-price financial planning, free flu

shots, preretirement planning seminars and tuition reimbursement for special- interest or hobby-

related classes (Fletcher, 2008). Progressive wellness programs that encourage regular fitness

through free gym memberships would also keep company healthcare costs low (Stanley, 2006).

Lastly, advising Boomers on how to coordinate their company benefits and government assisted

6benefits as well as providing healthcare hotline numbers, seminars, websites, and counseling

can add unique advantages to an organization’s offerings (Stanley, 2006).

Changes to Policies, Procedures, and Regulation

       Despite the fact that retaining Boomers is mutually beneficial for organizations and

individual employees, America’s regulatory environment and corporate policies still fail to

accommodate to creative solutions for retaining older workers (Marshall & Heffes, 2006).

Compensation packages used by organizations in the US are supposed to be designed to retain

key talent, but 60% of current programs are “neutral” in either encouraging or discouraging

retirement as a certain age, according to a survey conducted by Ernst & Young (Fletcher, 2008).

In some industries, such as management consulting and law, retirement at a certain age is even

required (Goldberg, 2007). Moreover, many organizations have policies that require a minimum


                                             Page | 13
                                                                 Transferring Boomer Knowledge


number of hourly work for healthcare benefits eligibility. Also, many of today’s defined benefit

plans base retirement benefits on average pay during the last years of employment. If Boomers

work part-time during a phased retirement, their benefits might be reduced significantly under

these conditions (Dychtwald & Baxter, 2007). These types of procedural barriers make it

difficult for many companies to implement phased retirement programs or other incentives that

might retain Baby Boomers and their knowledge (Dolezalek, 2007a). Even national

governmental regulations such as the Employee Retirement Income and Security Act (ERISA) of

1974 and the taxation of certain benefits create challenges to employers trying to improve their

practices for aging workers (Marshall & Heffes, 2006).

         While many of the policies and regulations in America a cumbersome barriers, some

hope is on the horizon. In August 2006, Congress passed the Pension Protection Act that allows

employees age 62 and older to receive defined benefit contributions while continuing to work,

making the implementation of phased retirement programs easier (Dychtwald & Baxter,

2007). The legal field has also taken steps to make mandatory retirement policies unacceptable,

with the New York State Bar Association and the American Bar Association issuing reports that

oppose the practice on the grounds that it is archaic and unfair (Goldberg, 2007). Lastly, some

employers have started calculating defined benefit plan payouts by the last few years for full-

time employment, removing any part-time or phase retirement years (Dychtwald & Baxter,

2007).

Service and Volunteering

         Another approach to retaining Baby Boomers past their 65th birthday could include an

addition of more service and volunteer activities within an organization, specifically any that

target older workers. Consulting firm McKinsey & Co points out that more than 66% of Baby


                                             Page | 14
                                                                  Transferring Boomer Knowledge


Boomers over age 50 see retirement as a time to contribute to society, and MetLife

Foundation/Civic Ventures found that 50% of Americans age 50 to 70 want jobs that contribute

to the greater good (Fletcher, 2008; Emeagwali, 2007; Court et al., 2007). Also, Experience

Wave, an organization helping older workers continue employment and involvement in society,

found in a survey of Boomers aged 50 and over that almost 60% of those who were planning to

retire, but had not yet done so, said they were likely to do volunteer work for a nonprofit or

community organization (Wofford, 2008). Keeping these desires in mind, organizations can

provide Boomers with opportunities to volunteer within the community on company time, match

charitable contributions to nonprofits, formalize mentoring programs with youth, start nonprofit

ventures run Boomers, or create many other options that allow Baby Boomers to contribute

(McDonald, 2007; Jakobson, 2008). A final possibility might include assigning older workers as

corporate ambassadors in activities of corporate social responsibility. These ambassadors would

have an external focus of supporting their organization by representing CSR ventures to

stakeholders and the public (Calo, 2005).

Positive and Professional Workplace

       To encourage Baby Boomers to continue working past retirement, organizations must

ensure that their workplaces are positive and professional environments that support not only

Boomers but all employees as they progress through their careers (Stanley, 2006). One way to

show respect for every employee, despite age, is to distribute work assignments in a fair manner.

This means giving Boomers meaningful projects, as well as not overloading them and singling

them out (Stanley, 2006). Organizations should also examine company policies and procedures,

like promotions and salary calculations, to ensure there is no discrimination against older

workers (Dychtwald & Baxter, 2007). In fact, promotions should be based on merit and build a


                                             Page | 15
                                                                  Transferring Boomer Knowledge


culture that values experience (Stanley, 2006; Dychtwald & Baxter, 2007). Including aging and

generational issues in all organizational training can add an additional level of respect and

understanding (Dychtwald & Baxter, 2007). Lastly, benefits like personal coached, job rotations,

job shadowing, and executive internships show Boomers that organizations are willing to invest

in their older employees even as they age (Jakobson, 2008).

Training

       Unfortunately, older workers frequently do not receive the same training and

development opportunities that younger employees do. The U.S. Bureau of Labor Statistics

reports that that workers 55 years and older receive only 23 hours of training each year; whereas,

those aged 45 to 54 years receive more than 57 annual hours. Employers may believe that

investing training in older workers is costly since they may leave soon, but turnover among older

workers is in fact lower than that of younger employees (Dychtwald & Baxter, 2007).

Experience Wave, an organization helping older workers continue employment and involvement

in society, actually found that 75% of employers agreed that Baby Boomers could continue

engagement in the workplace if they had access to free or low-cost training to provide new skills

(Wofford, 2008; Dolezalek, 2007a). Therefore, providing training and development opportunities

to Boomers could be yet another way to retain their knowledge and even grow it (Weinstein,

2007). In addition to training on traditional occupational skills, Boomers should be trained on

new technologies and e-learning opportunities, dispelling the myth that older workers cannot

adapt and exhibiting confidence in their abilities (Stanley, 2006; Dolezalek, 2007a). A final

option for training and development could include courses at local community colleges or

technical schools that cater to Baby Boomer needs. For example, Central Piedmont Community

College (CPCC), a large urban two-year college in North Carolina, recently secured a $25,000


                                             Page | 16
                                                                 Transferring Boomer Knowledge


grant from think tank Civic Ventures and the MetLife Foundation for its Encore Career Project.

Among other goals, this project seeks to encourage institutions and other stakeholders to unleash

the potential of Boomers as a new workforce (Dychtwald & Baxter, 2007).

Targeted Recruitment Strategies

       In the event that an organization’s Baby Boomers choose to leave, despite efforts to

retain them, companies can still gain a competitive advantage by recruiting other Boomers that

have decided to switch companies, jobs or careers. Given that over 50% of Boomers want to start

a new career, the chances of this scenario are actually quite significant (Franklin & Frick, 2008).

Also, recruiting Boomers could offer a more successful strategy for finding talent in the face of

shortages of qualified younger employees. (Dychtwald & Baxter, 2007). Since a mere 18% of

American organizations currently have strategies for recruiting older candidates, some

suggestions are probably welcome (Dychtwald & Baxter, 2007). Employers should start by

reviewing their recruitment and promotional language for biases against age, either implicit or

explicit. Boomers will be more attracted to job postings that emphasize experience, knowledge

and expertise, rather than advertisements that discuss words that imply youth, like energy,

willingness to learn and high ambition (Dychtwald & Baxter, 2007). After review of postings,

employers should focus on organizations that are likely to contain the target Boomer population,

such as professional associations, alumni groups, and online communities (Weinstein, 2007). A

consequence of these practices will be building a reputation of an active recruiter and employer

of Boomers. This reputation could even become one of the biggest draws for other older workers

and recruitment advantages, as word spreads among peers (Dychtwald & Baxter, 2007).

       All of the retention strategies above should aid organizations in holding on to their Baby

Boomer employees past traditional retirement age. Keeping these Boomers means that


                                             Page | 17
                                                                  Transferring Boomer Knowledge


institutional knowledge will remain internal while many employers face a talent shortage of

qualified candidates. Moreover, if Baby Boomer employees stay in the workforce longer, more

time is available to pass on valuable knowledge to their successors. However, the Baby Boomer

generation must inevitably leave the workforce. To successfully pass the torch, American

organizations must implement strategies to transfer Boomer knowledge to younger workers.

Transferring Knowledge

       Research on institutional knowledge has found that knowledge is categorized in two

forms: explicit knowledge and tacit knowledge. Explicit knowledge is information that can be

recorded, stored, easily codified, and shared asynchronously (Lahaie, 2005). Therefore, explicit

knowledge can be placed on company intranets or in traditional training programs to be

transferred to younger employees after Boomers retire. On the other hand, tacit knowledge, or

“deep smarts” as Leonard & Swap (2005) call it, is experiential, intuitive, used to interpret other

information, and most effectively communicated and transferred in face-to-face encounters

(Lahaie, 2005). Traditional ways of transferring expertise like corporate training are not

sufficient for transferring these types of knowledge from experienced Boomers to their

successors (Phillips et al, 2007, p.56). Thus, much of the literature on transferring Boomer

knowledge to younger workers focuses on interactive, cooperative strategies, like mentoring.

Mentoring

       One of the most frequently suggested startegies for transferring Baby Boomer knowledge

to the younger generations in the workforce is through mentoring relationships between the two

groups (Phillips et al., 2007; McAdams, 2006; Dolezalek, 2007b). According to the Center for

Creative Leadership, 77% of employers with successful mentorship programs report that those

programs were effective in decreasing turnover. Moreover, other research shows that one-third of


                                             Page | 18
                                                                 Transferring Boomer Knowledge


workers who receive no mentorship in their organization look for another position within a year

(Aiman-Smith et al., 2006). Mentoring provides an intimate, trustworthy setting for Boomers to

pass along the tacit knowledge they have developed. Therefore, it can foster a sense of

contributing something valuable to an organization and society, a desire of many Baby Boomers

(Dolezalek, 2007b; Calo, 2005). However, mentorships must be grounded on more than intrinsic

motivation and provide incentives for the mentor; otherwise, Boomers may feel suspicious of

setting themselves up for forced retirement. One way to formally encourage mentoring would be

to exchange mentorship roles for flexible work arrangements or phase retirement options

(Dolezalek, 2007b). Another method that the Weitz Company uses involves “communities of

practice” that come together to share best practices as a collaborative group (Jakobson, 2008).

Weitz’s former CEO says, “We avoid [giving employees] the idea that if they pass knowledge on

to a young buck they will be pushed out to pasture” (Jakobson, 2008). Intel’s mentoring system

even removes the hierarchical component often inherent in mentoring and pairs employees based

on skills and experience, rather than age or rank (Dolezalek, 2006). Despite the particular

arrangement of the mentorship, companies must focus on the fact that mentoring is a fulfilling

activity for both partners meant to strengthen the whole organization, not forced out Boomers.

Guided Experience

       After a multiyear cross-national research study on learning and transferring knowledge,

Leonard & Swap (2006) determined, “The only path to ‘transferring’ deep smarts lies through re-

creation of experience, since that is how the experts acquired pattern-recognition capability to

begin with…” (p.10). To accomplish this re-creation, Leonard & Swap (2005) suggest that

guided experience is the most effective strategy for transferring knowledge from experts to

younger workers. Guided experience involves older experts becoming knowledge coaches to


                                             Page | 19
                                                                  Transferring Boomer Knowledge


enable successors to learn through supervised activities that shorten the time it takes to develop

tacit knowledge, or deep smarts (Leonard & Swap, 2006).

       Four categories complete the options available for guided experience: guided practice,

guided observation, guided problem-solving and guided experimentation (Leonard & Swap,

2006, p.11). Guided practice involves the expert knowledge coach providing structure practice

for their apprentice, followed by performance feedback. Guided observations are characterized

by younger workers shadowing the expert or by mind-stretching situations that challenge

novices’ current assumptions and expand their potential responses to various circumstances.

Guided problem-solving allows the younger employee a little more autonomy as the coach

merely shares diagnostic approaches to a problem and provides feedback after letting their

successor work through a variety of situations. Lastly, guided experimentation engages the pair

in joint experimentation, where the Boomer expert would merely direct the experimentation

process with no prejudice or sure answers available (Leonard & Swap, 2006).

Utilizing Technologies

       While research has shown that tacit knowledge is most effectively developed and

transferred through interpersonal interactions, the younger generations like Generation Y have

grown up in a distinctly different environment and developed unique expectations about

connectivity, hierarchy, learning, and communication. Thus, even some of the traditional forms

of interpersonal interaction and transfer will not suffice for passing institutional knowledge along

to these successors (Kapp, 2007). Traditional methods of transfer are quickly being viewed as

outdated, inefficient, and misaligned with employee needs, bringing on a new era of informal

knowledge transfer facilitated by various forms of technology (Kapp, 2007). Although, not all

forms of technology-based learning will suffice. The already antiqued e-learning courses


                                             Page | 20
                                                                 Transferring Boomer Knowledge


consisting of long hours, screen after screen of text, linear progression and asynchronous

interaction are proving ineffective in the workplace, with dropout rates as high as 50% (Kapp,

2007). Addressing many of the pitfalls of this type of e-learning, new technologies that

emphasize the connectivity and usability of Web 2.0 will be integral in transferring knowledge to

younger generations in a medium they desire.

Instant messaging.

         Instant messaging allows workers to instantly and informally talk to one another over the

internet or company intranet using a keyboard or microphone, often avoiding small talk and the

wasted time. The technology can also enable groups to chat simultaneously, creating live chat

rooms for information exchange (Kapp, 2007). Using this software, younger generations can

have instant resource centers at their finger tips, as long as Boomer employees have the same

software installed on their machine. Granted, some Baby Boomers may be less comfortable with

this method of transfer and less adept at typing, but instant messaging could be an important

strategy to help young employees reach the information and guidance they need quicker than

traditional methods, particularly if Boomers are taking flexible work-at-home options. Sprint, the

giant telecommunications company, has recognized the value of instant messaging. At Sprint, the

software is seen as necessary and critical for interacting with peers, executives, and even board

members. When the IT department at Sprint wanted to block instant messaging due to a potential

security break, executives intervened, saying the technology increase productivity and allowed

for real-time exchange of information and continuous connectivity. (Kapp, 2007).

Blogs.

         Unlike the audience limitations and transient timing of instant messaging, web logs or

blogs can reach anyone with an internet connection and remain accessible for long after the



                                             Page | 21
                                                                  Transferring Boomer Knowledge


author chooses to discontinue additions (Kapp, 2007). Using these tools, Baby Boomer

employees can document many aspects of their knowledge and post this information online.

However, transfer is further facilitated because newer employees can view this data and make

comments or questions regarding it without changing the content. As Kapp (2007) suggests, “A

boomer expert can discuss his or her experiences, know-how, and perspectives through postings

to a blog, which [newer employees] and others can read, post their own comments, ask

questions, or contact the blogger directly for more information” (p.27). Some DaimlerChrysler

managers manage blogs to talk about problems, share opinions, and document solutions that

have worked for their departments. Workers can then search these sites to find information they

need, allowing these younger employees to essentially see inside the minds of their older, more

experienced managers and leaders (Kapp, 2007).

Wikis.

         A final technological strategy for transferring Boomer knowledge to young workers

involves websites called wikis. Deriving from the Hawaiian word for “fast,” wikis are also

websites where information can be gathered and distributed to multiple users. However, unlike

blogs, which are controlled by one user, multiple people can contribute to wikis. Also, the

information on wikis can be revised and updated, in contrast to the more permanent posts on

blogs. Wikis offer distinct advantages because they can be carriers of collective knowledge and

they are as user-friendly as word processing software. Therefore, retiring Boomers could provide

a wealth of knowledge to these sites using a format they are familiar with, and they could even

have the option of contributing once they retire (Donald, 2007). The Leukemia & Lymphoma

Society has successfully used wikis to disseminate best practices among its chapters across the

nation, creating a single resource center constantly available in a familiar format for organization



                                             Page | 22
                                                                  Transferring Boomer Knowledge


members (Kapp, 2007). Granted, wikis and other technology-based strategies should not replace

the personal interactions between Boomers and their successors, but these methods can

successfully facilitate a more in-depth transfer using a medium that younger generations prefer.

Other Strategies

       In addition to the strategies provided above, many authors have suggested other strategies

for transferring institutional knowledge from the Baby Boomers to younger generations,

although in less detail than other tactics. Some strategies involved more traditional means. For

instance, Baby Boomers could write case studies and their responses to these situations for later

reference by younger workers (Phillips et al., 2007; Aiman-Smith et al., 2006). Storytelling, one

of the most traditional ways of transferring knowledge and wisdom within civilization, can also

be an effective way to pass on institutional information and values (Aiman-Smith et al., 2006;

Leonard & Swap, 2006). Other tactics for transferring knowledge could include technology, such

as video taping Boomers talking about their experiences and lessons learned. Despite the

strategies used, organizations must keep in mind that learning is the center of energy, not simply

capturing information.

Retiree Relations

       Another way for organizations to ensure they transfer Boomer experiences to younger

workers and retain the tacit knowledge developed by older employees is to maintain

relationships with Boomer retirees long after they leave (Fletcher, 2008; Stanley, 2006). Even

though retirees may no longer work for an organization, they can still provide useful insight and

information to workers. Many Boomers feel the need to give back to society, and most

employees link a significant portion of their personal identities to their work. Therefore, given

the opportunity, Boomers can still transfer knowledge even after they retire. For instance, the


                                             Page | 23
                                                                  Transferring Boomer Knowledge


Blue Cross & Blue Shield Association stays in contact with almost 220 retirees and has a

position responsible for retiree relations. The association stays regularly communications with

past employees and invites them to provide insights and ideas with internal and external

organization stakeholders (Fletcher, 2008). Retirees could also be called on to transfer

knowledge in other ways, such as coming back to train new employees, contributing to company

informational media or mentoring younger workers via the internet or telephone (Stanley, 2006).

Lastly, maintaining retiree relations could benefit employers when qualified new hires cannot be

found right away, by providing an experienced pool of temporary help with many advantages

over typical temporary agency workers

as greater relevant knowledge and expertise; familiarity with work environment, projects and
clients; and lower costs. Travelers, which created a highly successful program that brought back
retirees on temporary bases, found that replacing agency temporaries with its own former
employees both saved money by reducing agency fees and improved reliability by reducing
absenteeism (Dychtwald & Baxter, 2007).

Getting Started
       Given the variety of needs and desires expressed by Boomers and their successors,

companies cannot expect to find an easy solution to the impending shortage of employees and

loss of institutional knowledge. However, those who effectively respond can certainly predict

more of a competitive advantage over organizations that ignore the coming challenge

(Dolezalek, 2006). The first step to reacting to Boomer retirements is recognizing the situation as

real and planning for the specific needs of each organization. In fact, “planning has got to be

considered a high priority, and individuals have got to focus time, effort and energy to really get

it done” (Heffes, 2002, p.23). Moreover, planning cannot be successful if only one or two

strategies are considered. David Corbett, founder of a Boston firm that helps middle-aged

executives and professionals plan for their future, certainly agrees: "Many of our clients want a


                                             Page | 24
                                                                    Transferring Boomer Knowledge


'portfolio' of several activities to bring balance to their lives, such as working part-time,

volunteering, taking classes and spending more time with their families. Our most successful

clients are the ones who start planning their transition three to five years in advance" (Franklin &

Frick, 2008). Considering the first of the Baby Boomer generation will be retiring in less than

three years, American organizations expecting to successfully survive the Boomer exodus must

react sooner rather than later to ensure a prosperous future for themselves.




                                               Page | 25
                                                                Transferring Boomer Knowledge


References
Aiman-Smith, L., Bergey, P., Cantwell, A.R., & Doran, M. (July/August 2006). The coming
      knowledge and capability shortage. Research Technology Management, 49(4), 15-23.

Butler, K.M. (2007). Weighing boomer retention against risk. Employee Benefit News, July 1,
        2007, NA. ITEM07183001. General OneFile. Gale. Vanderbilt University
        Library. Retrieved 5 April 2008 from http://find.galegroup.com.proxy.library.
        vanderbilt.edu/itx/start.do?prodId=ITOF.

Calo, T.J. (2005). The generativity track: A transitional approach to retirement. Public Personnel
       Management, 34(4), 301-312.

Court, D., Farrell, D., Forsyth, J.E. (2007). Serving aging baby boomers. McKinsey Quarterly, 4,
       102-113.

Dolezalek, H. (2007). Boomer Bust. Incentive, (August 8, 2007), NA. General
       OneFile. Gale. Vanderbilt University Library. Retrieved 5 April 2008 from
       http://find.galegroup.com.proxy.library.vanderbilt.edu/itx/start.do?prodId=ITOF.

Dolezalek, H. (2007). Boomer Reality. Training Magazine Online, May 10, 2007. Retrieved 5
       April 2008 from http://www.managesmarter.com/msg/content_display/publications/
       e3if330208bec8f4014fac339db9fd0678e.

Dolezalek, H. (2006). Outta here: Are you ready for the baby boomers to retire? You should be
       ...: Here's what you need to know. Training, 43(9), 18-23.

Donald, D. (October 2, 2007). The elements of learning 2.0. Boomer Bulletin. Boomer
      Consulting, Inc. Retrieved March 11, 2008 from http://www.boomer.com/library/
      boomer-bulletin/2007/oct/The-Elements-of-Learning-2-0.html

Dychtwald, K. & Baxter, D. (2007). Capitalizing on the new mature workforce. Public
      Personnel Management, 36(4), 325-335.

Emeagwali, N.S. (2007). Community colleges offer baby boomers an encore: The nation's 1,200
     community colleges are taking notice of baby boomers. Techniques, 82(7), 18-19.

Fletcher, M. Avoiding the boomer brain drain. Business Insurance, 1(Jan 1, 2008), 14.

Franklin, M.B. & Frick, R. (2008). Retire to your dream job. Kiplinger's Personal Finance, 62
       (4), 27-35.

Geber, B. (2000). Who will replace those vanishing execs. Training, 37(7), 49.




                                            Page | 26
                                                                Transferring Boomer Knowledge


Goldberg, E. (2007). Gray matters: As baby boomers reach their 60s, firms are searching for
      ways to keep the most experienced and talented seniors from walking out the door.
      American Lawyer, 29(12), 118-123.

Heffes, E.M. (2002). Grooming successors. Financial Executive, September 2002, 21-24.

Hollon, J. (2006). Gray matters....a lot. Workforce Management, 85(19), 50.

Jakobson, L. (2008). Save the Boomer knowledge. Incentive, Feb 8, 2008, NA. General
       OneFile. Gale. Vanderbilt University Library. Retrieved 4 April 2008 from
       http://find.galegroup.com.proxy.library.vanderbilt.edu/itx/start.do?prodId=ITOF.

Kapp, K.M. (2007). Tools and techniques for transferring know-how from Boomers to gamers.
      Global Business and Organizational Excellence, 26(5), 22-37.

Lahaie, D. (2005). The impact of corporate memory loss. Leadership in health services, 18(3),
       35-48.

Leonard D. & Swap, L. (2006). Preserving deep smarts at NASA. ASK Magazine, Winter 2006,
      9-11. NASA_APPEL_ASK22f_preserving-1.pdf.

Leonard D. & Swap, L. (2005). Deep smarts: How to cultivate and transfer business wisdom.
      Boston, MA: Harvard Business School Press.

Marshall, J. & Heffes, E.M. (2006). Baby Boomers' exit calls for plan changes. Financial
      Executive, 22(7), 11.

McAdams, J. (2006). Boomers bid farewell. Computerworld, July 17, 2006, 34-35.

McDonald, T. (2007). Remake your retirement. Successful Meetings, 56(2), 18.

Meisinger, S. (2006). Workforce retention: A growing concern. HR Magazine, April 2006, 12.

Phillips, J.M., Pomerantz, M., & Gully, S.M. (December 2007). Plugging the boomer drain.
        HRMagazine, 52(12), 54-58.

Shidler, L. (2008). For baby boomers, a longer ride into the sunset; More interest seen in phased
       retirement as health costs rise. Investment News, 12(8), 24.

Stanley, T.L. (2006). Baby boomers: Why these employees matter. Supervision, 67(10), 3-5.

Weinstein, M. (2008). Boomer Retention. Training, Sept 6, 2007, NA. General
      OneFile. Gale. Vanderbilt University Library. Retrieved 4 April 2008 from
      http://find.galegroup.com.proxy.library.vanderbilt.edu/itx/start.do?prodId=ITOF.

Wofford, H. (2008). Why colleges should welcome the return of the Boomers. The Chronicle of

                                            Page | 27
                                            Transferring Boomer Knowledge


Higher Education, 54(22), A1.




                                Page | 28