Retiring baby boomers spur rapid change in workforce

By Clare Costigan

With baby boomers approaching retirement in record numbers, Gen Y staying in education longer and 1 in 3 workers employed on a part time basis, 2011 is forecast  to hit the point of peak labour where there will be more people exiting the workforce than entering according to research conducted by McCrindle.

Mark McCrindle, director of McCrindle research said, "We have an urgent message that every organisation, every product and every brand is just one generation away from extinction unless companies engage with the emerging generations of Y and Z."

There are currently 4.65 million Australians in Gen Y, comprising 21% of the workforce. In 2020 this number will double to 35%.

And as more and more baby boomers say bon voyage to the workplace their presence will decline from 36% to just 15%.

Eighty-six per cent of Generation Y’s expect a promotion within two years compared to 70% of baby boomers.

In addition, with Gen Y already staking their claim in the workforce the outlook is shifting even further into the future with employers setting their sights on the emerging workforce that is Gen Z.

There are 4.22 million Australians in Gen Z and although not currently working, by 2020 they will comprise 12% of the workforce.

The McCrindle research also backs the trend that it has never been harder to attract, recruit and retain staff.

With the torch set to pass to Gen Y, employers are being encouraged to revise their workplace culture and initiatives in order to attract and retain the new work force powerhouse.

According to McCrindle research the top 5 attraction and retention factors for Gen Y are: 

• Work-life balance
• Workplace community
• Management style
• Broad job description
• Training & development

Workers aged between 20 -24 lead the way as the highest flight risk category, being three times more likely to change jobs in a year than those aged 45-54.

In fact, nearly 1 in 4 of those aged 20-24 change jobs in any given year.

The rapid change occurring in society as Australia’s biggest generation heads towards retirement, and generations Y and Z become powerful players in the workforce will be hot topics at the McCrindle  masterclass "the ABC of XYZ" in Melbourne and Sydney this month.