The retirement of the baby booming generation is said to be an economic threat, and now that is here, employers are in a dilemma not knowing how to handle the situation. According to Casselman (2015), nearly a quarter million of the US population turn 65 which means more people are retiring. The recession has caused the government to use billions of paying retirement pensions hence forcing those left in the labor force to work longer than planned. The baby boomers are the lashing force behind the current increased retirements, especially in the public servants’ domain. From "Tap into baby boomers" (2015), they make up two thirds of the labor force and two thirds of retirement. The reality of this is that as these people retire from the businesses they previously worked in, succession planning is required. The baby boomers have been there long enough each in their field of specialty, and therefore it has proven difficult to get someone who is fresh from school and possesses same knowledge as these baby boomers have, or closer it.
Most C.E. O. s feel that they are under pressure of wanting to leave the business strong and in a sustainable future. However, attaining that has proven difficult since finding young people who are willing to incorporate the teachings of the old with the new ones. Canada is worried that if they do not have significant adjustments in due time, their economy will be greatly affected and shrink per capita income. In the year 2015, Canada as a country had more people of the age of 65 and above as compared to those under 15. This means that the age group that makes up the baby boomer generation makes up nearly 30 percent of the population in comparison to 15 percent of the same group two decades ago. This means that the aging population is increasing as years goes by ("Tap into baby boomers," 2015).
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The baby boomers have had the same effect on the US economy too whereby most people who have been running the business and the economy are now at their age of retirement. The US demographics show that the population that is 50 years and older is not as large as compared to other western Europe countries (Casselman, 2015). One of the major reason that has ensured American economy not to be greatly affected is due to the high rate of immigration. Since most immigrants voyage when they are younger, they tend to stabilize the age of the population. Also, as the baby boomers are exiting the business world, their children are replacing them. This means that there is no greater gap left to feel when the baby boomers exit since there are the “echo boomers” who replace them and offset their parent’s exit, therefore the American economy is partially affected by this trend (Herrmann, 2014).
One way that employers can deal with this situation mostly in Canada is by ensuring that before the baby boomers exit the market, they offer proper training to those under them and have the potential of replacing them. By this I mean that organizations can maximize the situation by ensuring that their young employees gain knowledge from their seniors since in future, they will be the ones to take control (Abraham and Harrington, 2015). Also, incorporating a culture whereby organizations’ managers ensure that the organization’s culture is well taught to new employees and they are made to see the importance of carrying on with the trend despite combining it with new trends (Xinxin, 2008). What should be done in places such as Canada is that the government should arrange for initiatives such as raising immigration levels in the country especially for young adults who are skilled, and also raising the retirement age so as to create duration for training those who are to replace them.
References
Abraham, R. & Harrington, C. (2015). Consumption Patterns in the Aftermath of the Financial Crisis: The Case of Baby Boomers. ME , 06 (02), 245-258. http://dx.doi.org/10.4236/me.2015.62022
Casselman, B. (2015). What Baby Boomers’ Retirement Means For the U.S. Economy . FiveThirtyEight . Retrieved 3 October 2016, from http://fivethirtyeight.com/.../what-baby-boomers-retirement-means-for-the- ...
Herrmann, M. (2014). The Economic Challenges of Population Aging in Emerging Markets. ME , 05 (02), 161-173. http://dx.doi.org/10.4236/me.2014.52018
Tap into baby boomers. (2015). Dental Abstracts , 60 (2), e41-e42. http://dx.doi.org/10.1016/j.denabs.2014.10.005
Xinxin, M. (2008). Occupational Career Types of Baby-Boomers and Their Effects on Employment Pattern Selection. Japanese Economy , 35 (4), 64-106. http://dx.doi.org/10.2753/jes1097-203x350403
