With the Baby Boomers plodding closer to retirement, much is being said about the impending “brain drain” on American business. The generation of Americans born between 1946 and 1964 has been considered the culprit for all sorts of high points, low points, market gluts, shortages, and concerns about the future of Social Security benefits. Now it’s being blamed for a critical loss of knowledge and experience in the nation’s businesses.

According to the U.S. Bureau of Labor Statistics, there are nearly 77-million Americans in this age group, and by the year 2010, half of them will be between the ages of 54 and 64. Early retirement programs are making it possible for many of these workers to end their working careers sooner, and as they walk out the door, they take with them a level of know-how and business savvy that can take years to develop.

Of course, not all Boomers are planning for retirement. Studies shows that one in five works age 45 and older are caring for a parent or giving financial support to adult children, and they may be planning to postpone early retirement or opt for semi-retirement.

The resulting “gray ceiling” is a source of frustration for Generation Xers trying to climb the career ladder, and as these workers move on to other companies, they take with them knowledge of technology and other intellectual property that may be hard to replace. Forced layoffs and jobs moving overseas are also adding to the brain drain dilemma.

Whatever the cause, it is important for business to plan now to address the eventual loss of talent, and they plan should include training and employee development.

A company looking to create such a plan should first take a look at its current staff; this should be performed from several angles — starting with age. Look at anyone who is age 55 or older or who will be reaching that mark within the next five years. For organizations with a number of locations, it is also important to note where the possible openings will occur on a regional level.

Next, look at the strengths and capabilities of the current workforce. Who may be retiring and what critical knowledge will they take with them? Have openings been filled successfully with experienced personnel over the past few years? Will there be gaps in critical positions where the company possesses little or not depth?

Another factor to consider is how the industry may be changing, and how prepared the staff is to address new areas of focus and knowledge of the new products that will come with the change. Who has the necessary capabilities in these areas? Is it possible to provide opportunities for growth for these specialists as the demand for their expertise increases?

Ideas for Plugging the Drain

• Paper-based methods — It is important to find ways to hold onto the technical data and knowledge needed to run an organization. It may be helpful to have workers develop desk reference manuals and other aids to pass along to their successors. Make it a point to have employees keep these manuals up-to-date so that new hires will have the most current information on hand.
• Electronic learning — Consider creating tutorials and modules using e-learning media. Computer-based instruction makes on-the-job training easy and consistent, and incumbents will often be more willing to maintain e-learning modules than any other type of training media. Many learning management systems (LMSs) have the capability of publishing and housing customized courses. Be sure to check with the LMS staff for ideas on ways to keep instruction modules current.
• Cross-training and job shadowing — These are great ways to protect a company’s intellectual intelligence. Exposure to the major functions and responsibilities of other departments may spark some interest in cross-training and the creation of backup support for critical roles. Trainees bring a different perspective to a job, and the knowledge they receive in cross training or shadowing helps them to understand their roles in the bigger picture of the organization. Start the process by creating networks between departments and making sure everyone has an understanding of the work others do. Department heads and managers should be expected to be trainers for the job functions that report to them. While no one knows the specific details of a job better than the person doing it, the department head should be able to cover most of the details of the positions under his or her responsibility.
• Blended-learning strategies — Using mixes of media is always recommended and has proven to be effective with adult learners. Using a variety of training methods — for example, classroom, electronic, print, and/or role playing — will help keep training fresh and interesting Managers who can incorporate interactive and hands-on teaching methods into their training are often the most successful.

Preserving Wisdom

It is important to remember that core competencies cannot be taught in an online training modules or in a classroom setting. Some knowledge can only be developed over time, and the culmination and transfer of time-tested information about relationship building, the company’s culture, and decision-making skills is an important part of preparing for the future.

The leadership skills and management practices that make a company successful come from within, and while advances in technology and changes in the industry may change the nature of the products that are sold, the basic way in which a company relates to its customers and associates is the bedrock of the organization It is important to find ways to pass these skills one, and the retiring or soon-to-be-retiring Baby Boomers can often be the best resource for that task.

Just as it takes time to develop business savvy, it takes time to transfer knowledge and experiences that are learned over many years. Help the process along by:

• Asking key senior employees to relate their positive experiences in areas of customer service and management practices
• Helping them to reconstruct and document winning methods and the decision-making practices that were successful for them.
• Encouraging the best performers to share their skills through mentoring programs.

Mentoring does not need to be formal, but it does require oversight, and someone in the organization should be assigned the task to assist in the pairing of mentors and proteges, explaining the degree of time commitment on both sides, and making sure expectations are clear and compatible. With just a few good mentor/protégé relationships in an organization, great strides will be made in passing along the company’s most important skills.

Reassigning or redeploying key senior employees to take on the role of advisor/mentor or trainer does not have to feel like an added expense. Often, those who have the talents that companies want to pass along are the same people who have the financial freedom and desire to work reduced hours and a flexible schedule. According to a study conducted by the Society for Human Resource Management, 55% of large companies are considering ways to offer more flexible work schedules, a continuation of benefits, and even retention bonuses to those individuals who can be counted on to bridge potential training gaps. The benefits of this type of scenario quickly become apparent to both parties.

Recruitment and Retention

Taking charge of and reducing the skills gap in an organization are key to preparing for future loss of know how. To do so, it may be necessary to change thinking from vertical succession (climbing the career ladder) to career latticing or horizontal succession.

Lateral opportunities should be thought of as a way to broaden the talent pool. With horizontal career pathing, associates can be encouraged to take lateral moves with no pay reduction; by broadening their knowledge into different areas, they become resources available to redeployment in a variety of positions where needed. Lateral moves may be attractive to younger associates who are interested in exploring opportunities within the organization, thus improving employee retention statistics.

Strategic succession planning will ensure that an organization is ready to effectively deal with brain drain. Through ongoing performance management systems, the workforce is continually evaluated and the capabilities of those in line for opportunities are assessed. When openings occur, the person next in line is not automatically selected if it haw been determined that the necessary competencies are not there. Accelerated development of younger workers who have leadership potential will reduce the probability that they will find positions elsewhere, and is one answer to the retention question that many companies increasingly find themselves asking.

Because no two organizations are alike, how an individual company prepares for and deal with brain drain will be based on its specific needs. The important thing is to recognize the potential of this concern and to address it strategically.