American business is facing a massive number of worker retirements during the next decade. By 2010, according to the Bureau of Labor Statistics, the population of workers older than 65 will increase by 30%, and the number of those between 55 and 64 will rise by 52%. In the same period, the number of workers aged 35 to 44, the logical replacements for retiring workers, will decrease by 10%. Further compounding this growing problem, the younger segment of the workforce is expected to increase by less than 23%. These demographics, confirmed by the Employment Policy Foundation, clearly define a growing problem that may signal the end for many American businesses.
One would think that the effects a loss of 50% to 70% of an aging workforce will have on corporate survival rates would be a serious concern to most companies. Apparently, this isnt the case. A 2003 survey conducted by the Society of Human Resource Management indicates that less than half the companies surveyed were aware of the aging workforce problem. Thirty-five percent reported not being aware of the growing problem, 35% were just becoming aware, and fewer than 7% had taken any positive actions to mitigate the problem.
So, whats going to happen when we no longer have experienced, skilled people to plan, manage, operate, maintain and support our enterprises? No problem, right? Well simply fall back on our detailed and effective processes, procedures and practices, hire some new workers and continue business as usual.
For years, American business has relied almost exclusively on a mature, experienced workforce, armed with the requisite skills learned on the job, in lieu of established, standardized processes and procedures to survive. Outside each employees sphere of influence, no one has a valid, comprehensive understanding of how we do what we do. Somehow, we manufacture or produce an acceptable product, in sufficient quantity, and at a competitive cost to meet the business plan. Somehow, we meet delivery demands. Somehow, maintenance keeps the equipment and systems in good enough operating condition to satisfy the plan. Somehow, we get new business to feed the manufacturing engine. Somehow? Do you really know how your plant, company or corporation gets things done? Even if your answer is yes, what happens when you retire or move on to new vistas? Will your replacement know?
We must act before its too late. Companies can no longer rely on the knowledge of individual employees. We must document how things actually get done. The process, called workflow mapping, documents step-by-step how your company accomplishes each and every activity, from marketing to shipping. It defines roles and responsibilities and the systems required to support these activities. One immediate benefit of workflow mapping will be the identification of obvious waste and inefficiency. Simply changing the process eliminates these losses.
Knowledge gained from workflow mapping can identify the standard procedures that support continuation of the company as experienced workers retire and are replaced with a new generation. Remember that the work ethic of the retiring generation isnt the same as the replacements, nor does the new workforce have the acquired skills that are the only reason youre still in business. That said, theres a reasonable expectation that the new workforce can support continuation of a viable business -- if they know what to do and how to do it.
Because the existing workforce collectively has the best understanding of how the company currently functions, these employees are the only resource with the knowledge required to develop the workflow mapping. Dont wait until theyre gone and then try to back-fit procedures. It wont work because no one with the required knowledge will be around to write them.
God willing, Ill still be around in 2010 to see which companies survive and which dont. As one of the 10% of the population who will pass the magic age of 65 shortly, I continue to be amazed by the way American industry ignores potentially catastrophic problems and still does nothing. Its going to be an interesting five years. Will your company still be here in 2011?
Contributing Editor R. Keith Mobley, CMRP, is principal consultant at Life Cycle Engineering in Charleston, S.C. E-mail him at [email protected].
