GENERATION GAP FOR LEADERS

It happens every time we have a "recession" or economic turndown. But this time it is more daunting not only given the severity of the economic situation, but also given the demographic realities. The talent crunch when the economy turns up and firms are hiring again will be magnified because so many Boomers are approaching the age when they will "retire" from current positions - voluntarily or involuntarily.

In any case they may be gone. And many are managers and executives. Will there be enough people trained, experienced and ready to capably step into their shoes?

A new report from PricewaterhouseCoopers says that in 2008 over 2007, the percentage of managers and executives eligible for retirement within 5 years rose much more dramatically than it did for workers in general. (The survey covered more than 300 companies across 12 industries.)

The current recession has given organizations a breather, and many Boomers would like to keep working for a long time more, even if they can afford to retire. Surveys in 2004 and 2005, when the economy was booming and retirement funds were healthy revealed that about 80% of boomers wanted to keep working after age 65 in some capacity - reinventing retirement, as the then newly coined phrase goes.

The PricewaterhouseCoopers report as covered in the New York Times (12/27/09) contains a graph showing that about 34% of managers and 27% of executives in 2008 would be eligible for retirement in 5 years. They are closer now. The percentage for all workers was about 17%. A great opportunity for the next generation of leaders and managers, but will there be enough of them from the much smaller Generation X, and will they be ready?

Shouldn't this shake up management enough to get some serious succession planning and transitioning going at all levels?

Phyllis Weiss Haserot   www.pdcounsel.com