Small-business owners aren’t waiting for more evidence of the ‘brain drain.’
As more than 19 million American workers reach traditional retirement age of 65 in the next three years, a new survey reports that 28% of small-business owners are already planning for knowledge transfer from these experienced older workers to other workers.
The National Association of Professional Employer Organizations, NAPEO, sought to examine the plans of owners of small businesses nationwide that are served by professional employer organizations, or PEOs.
Conducted February 12-26, 2008, the survey of 404 owners of small businesses reveals their plans for dealing with the aging workforce. The trade group, whose members manage human resources responsibilities for small businesses, believes these firms are more attuned than some larger ones to the demographic impacts on their competitive advantage.
“For a small business, losing even one seasoned knowledge worker affects them competitively,†says Milan P. Yager, NAPEO’s executive vice president. “These business owners want to ensure that seasoned workers convey their knowledge, or even continue working longer if possible.â€
The owners also know their own value and will not let themselves get caught short when it’s time for them to leave, Yager noted. Looking to their own retirement, 35 percent of the surveyed business owners say their own retirement plan is solid, and another 10 percent will have a plan in place by year-end. Half report their retirement savings goal is at least $1 million, and seven in 10 have set a savings plan to reach their goal.
The small businesses are outpacing larger firms in their planning. Only one-quarter of large organizations are making any effort to transfer knowledge from soon-to-retire baby boomers (those born between 1946 and 1964) to other workers, according to a 2007 report by Novations Group, a global consulting and training firm. Just 4 percent have created a formal process to pass on know-how. Also, Monster reported that knowledge retention is not a high priority among organizations in its September 2007 survey report.
Businesses in NAPEO’s survey have more older workers this year than last. This year 21 percent said at least 5 percent of their workers are ages 60 to 64; last year, fewer (16%) of the respondents reported workers in that age group. And more businesses this year said older workers are delaying retirement; 37 percent, versus 18 percent in 2007. Only 4 percent said that some workers would retire before age 65.
“These entrepreneurial small businesses are ready for the baby boomers’ choices,†Yager said. “Our survey shows their great acumen and flexibility in the midst of major workforce changes.â€
To review the NAPEO February 2008 survey report, go to the NAPEO News Center and this link: http://www.napeo.org/newscenter/research.cfm.
