Clash of the Generations

PREFACE

By 2020, 25 percent of the labor force will be over the age of 55—and they're not retiring any time soon. The result? A clash of cultures that requires a new management approach.

In recent years there's been a lot of talk about generation‐related issues in the workplace—especially the impending en masse retirement of the Baby Boomers. Senior leaders and HR executives were warned to prepare for the knowledge exodus that would take place when the Baby Boomers retired in droves and to prepare to manage the generations (in particular, the Millennials) that would replace them.

The reality, however, is that Boomers haven't been retiring in the numbers originally expected. In fact, the average retirement age has steadily been creeping up (it's now at 61), and recent statistics indicate that this number will continue to increase. A recent Gallup Poll found that 24 percent of Baby Boomers are waiting until age 65 to retire, and 49 percent are planning to hold off until 66 or older. In addition, researchers at the Stanford Center on Longevity estimate that by 2020, 25 percent of the labor force will be 55 and over—a sharp jump from 13 percent in 2000. In the near future, we may even see people working to 100 (and beyond!).

Because Baby Boomers are prolonging their time in the workplace, the old business model of “the mature retire to make way for the new” no longer applies. Instead of the previous cycle of succeeding generations, companies now find themselves with workforces that ...