The research, commissioned by recruitment firm Robert Half, shows that 92% of businesses – specifically finance directors - are concerned that the departure of Baby Boomers in the job market will have a negative impact on their company over the next two years.
And, 95% say they believe there will be a skills gap due to the retirement of the Baby Boomer generation.
According to Robert Half Senior Managing Director Asia Pacific, David Jones employers need to start preparing now for the predicted skills shortage.
The research does show that to ensure they can manage the loss of the Baby Boomer generation on the workforce, 97% of finance leaders are already taking measures to counter the potential skills gap.
It’s revealed that they are making significant commitments to invest in the next generation and are supporting them through measures such as, training and professional development programs (44%), mentoring programs (36%) and succession planning (29%).
And, according to Robert Half, companies are also considering external solutions and plan to recruit mid-level (38%) and senior-level (31%) employees who, “via the necessary knowledge transfer”, can be used to the maximum extent within the company in the short term.
"A thorough inventory of the core skills that organisations have in-house and the ones they will have to replace is an important first step. Potential successors should subsequently be readied in time by targeted training and mentoring programs,” Jones says.
“For the expertise that is not available internally, companies must look for new employees that possess the necessary skills and expertise. This means there will be new and additional job opportunities and companies are looking at both senior and less senior profiles to fill these roles.”
Jones points out that, although the official retirement age in Australia is set at 65 years, many Baby Boomers will continue to work for several years to come - businesses are therefore making efforts to attract and retain this generation on the workforce by enhancing their employee benefits (39%) or by offering flexible and/or part-time work arrangements (18%).
Concludes Jones: “Baby Boomers generally have extensive experience and specific skills that businesses wish to retain as long as possible. Offering interim or part-time contracts to employees nearing retirement can be an ideal way to keep the knowledge of Baby Boomers in the company while at the same time offering the necessary flexibility.”