The U.S. workforce is on the brink of a Silver Tsunami. Experts estimate that nearly one in three American workers is at least the age of 50. As baby boomers quickly reach retirement age, companies are faced with a shortage of qualified younger replacements, particularly those with science and engineering skills. Aside from the fact that organizations are about to face a high volume of retirement, modern human resource managers grapple with retaining and recruiting the right employees.
Research firm Towers Watson reports that talent challenges are connected primarily to a lack of understanding. Most organizations don’t understand what matters to their workforce, or why employees stay with companies. This lack of understanding could lead to a loss of competitive advantage among organizations of all sizes. Attrition can cause 65 to 75 percent annual productivity losses in a vacated position. In many cases, the companies that grow and thrive will be those who develop a talent retention strategy. Here are five reasons your company should plan for the future.