As more of the baby boom generation retires, many U.S. companies are facing a potentially significant loss of talent and institutional knowledge. While the impact of this undeniable trend will vary from industry to industry, companies ahead of the curve are already looking for ways to avoid the brain drain by encouraging today’s workers over 50 to stay longer.
Ten years ago, consulting firm Towers Perrin (now Towers Watson) conducted a prescient study for the AARP that refutes many of the myths about older workers. The analysis showed that replacing an experienced worker of any age can cost 50% or more of the individual’s salary in turnover-related costs and the cost is even higher in jobs requiring the specialized skills and extensive experience often possessed by employees over 50.
