Coping with an Aging Workforce: Views from Arizona

How do Arizona business leaders plan to cope with the approaching wave of retirements, which could lead to a loss of institutional knowledge and a worsening shortage of skilled workers. Roughly 15% of Arizona’s workers are age 55 and older, while another 23% are age 45 to 54.

When asked “What percentage of your workforce is age 55 and over?”20.2% of our BLCI panel members indicated 30% or more. Another 12.3% have between 20% and 29% of their workers in that age group.

When asked what the impact of the retiring worker will have, roughly one out of five see this as a significant future problem. Another 4% already see their retiring workforce as a challenge.

Approximately 45% think it will be a minor problem, and over 30% say it will have no impact on their company. Fortunately, a significant 30% of our business leaders either have a planor are working on one. That leaves 40% who expect retirement to bea future problem, but as yet have not developed a strategy to address this issue.

What actions can a company take to retain the services of older workers? Of those companies who have or are developing a plan, most are offering older workers flexible work hours, part-time work, or job sharing. Also popular are phased retirement programs that let older workers ease into retirement mode. Over half surveyed have established mentoring programs, so younger workers can learn from those who will soon depart. Nearly a third plan to hire retirees as consultants or temporary workers. Other initiatives include trying to keep older workers working through continuous training programs (to hold their interest), or other incentives to delay retirement.

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