Using response from human resource (HR) executives from Fortune 1000 companies, the survey confirms that a gap in strategy exists across organizations when preparing for and developing programs to meet the demands of this population as it nears retirement. The findings also suggest that employers may be experiencing a disconnect with this demographic in areas such as succession planning and employee benefits programs. For example, 41% say middle management level employees will be most affected by the brain drain; however, of those with formal succession-planning programs in place, 75% are focused on monitoring senior management only.
Among other key findings in the survey:
- Although 44% say it would be desirable to have senior management stay beyond the normal retirement age, 60% say current programs are “neutral” in terms of encouraging or discouraging retirement at a certain age;
- only 29% are considering phased retirement programs (with only 9% having such programs in place);
- 39% agree health care is the main driver in one’s decision to retire, but 54% are considering increasing employee co-pays that which could lead to the loss of talent.
Source: Ernst & Young News Release (October 22, 2007)