Putting it Off Until Tomorrow: Ernst & Young LLP Aging Workforce Survey Shows Corporate America Forsees a Looming Wisdom Withdrawal but Delays Addressing the Issue

NEW YORK, Jan. 26 /PRNewswire/ -- A new survey conducted by Ernst & Young LLP, ExecuNet Inc., and the Human Capital Institute reveals that, although corporate America foresees a significant workforce shortage as boomers retire, it is not dealing with the issue at present and may be underestimating the strategic challenges ahead.

The survey, The Aging of the U.S. Workforce: Employer Challenges and Responses, indicates that a little more than half of the respondents agreed that the aging workforce is an issue that must be addressed. While almost two-thirds said that retirements will lead to a "brain drain" in their organization, less than one-quarter said that it is an issue that is strategically very important.

"Approximately every seven seconds in America this year, a boomer turns 60," said William Arnone, an Employee Financial Services practice leader in the Human Capital Practice of Ernst & Young LLP. "Seventy percent of the survey respondents have not yet attempted to identify where business wisdom resides in their organization. This means one thing: corporate America is facing a significant wisdom withdrawal."

While the survey illustrated that employers are putting off tackling the issue of an aging workforce, an overwhelming 90 percent said they are committed to putting formal retention programs in place in the future. Of the 30 percent who have identified where business wisdom resides, only 67 percent have formal processes in place to transmit that business wisdom to the next generation.

"Right now, HR professionals are focusing on other things they consider to be more pressing, such as governance and compliance issues," said Arnone. "As the looming 'wisdom withdrawal' becomes a more immediate concern, they will focus their resources on the issue at that time."

  Aging Workforce by the Numbers

  * Of survey respondents who believe that the aging workforce is an issue
    that must be dealt with, 53 percent said it will lead to a workforce
    shortage.

  * Sixty-three percent said that retirements will lead to a "brain drain."

  * While almost 15 percent of respondents' employees are eligible to retire
    in the next 5 years, they estimate that just over 10 percent of their
    current workers are likely to do so.

  * Approximately 40 percent noted that their top human capital concern is
    the availability of talent over the next five years. Other highly ranked
    areas of concern include retention of key employees and talent
    management (i.e., ensuring that the right employees are in the right
    positions).

  * Over 85 percent had no formal retention programs in place.  Of those who
    did, hiring retirees as consultants or contractors, retention bonuses,
    promoting a culture of generational diversity and pre-retirement
    planning programs proved to be the most popular.

Survey findings are based on responses from a sampling of senior human resources executives from a cross section of some of the largest employers in the U.S. in a variety of industry sectors. The survey was conducted electronically from November 11, 2005, to December 21, 2005.

About Ernst & Young's Human Capital Practice

Ernst & Young's Global Human Capital Practice offers deep technical experience in the areas of financial counseling, corporate HR strategy and design, and global compensation and benefits programs - including health care, finance, tax, HR risk and tax compliance. In the United States, E&Y is a recognized national leader with over 25 years' experience in providing financial education and counseling services to more than three million employees in over 145 organizations. As one of the largest fee-only financial planning firms in the U.S., we are structured to offer objective guidance.

About Ernst & Young

Ernst & Young, a global leader in professional services, is committed to restoring the public's trust in professional services firms and in the quality of financial reporting. Its 106,000 people in 140 countries pursue the highest levels of integrity, quality and professionalism in providing a range of sophisticated services centered on our core competencies of auditing, accounting, tax and transactions. Further information about Ernst & Young and its approach to a variety of business issues can be found at http://www.ey.com/perspectives. Ernst & Young refers to all the members of the global Ernst & Young organization.

About ExecuNet Inc.

ExecuNet, a job search, career management and recruiting network and service for executives and recruiters, is a recognized authority in executive hiring and recruiting trends. ExecuNet helps members identify career opportunities and tactics designed to expand personal and professional networks, and advance in their jobs and careers. Founded in 1988, ExecuNet serves recruiters and corporations as a leading source of top-tier executive talent and proprietary research. For more information on ExecuNet visit http://www.execunet.com/.

About the Human Capital Institute

The Human Capital Institute is a global think tank, educator, and professional association dedicated to the advancement of talent management practices with individuals and organizations. HCI serves as a catalyst for innovative thinking in integrated talent strategy, acquisition, development, engagement, management, and measurement. Through research and collaboration, HCI programs collect original, creative ideas from a field of the brightest thought leaders in talent management. Those ideas are then transformed into measurable, real-world strategies that help its members attract and retain high-performing people, build a diverse, inclusive workplace, and leverage individual and team performance throughout the enterprise. HCI members represent a broad coalition of educators, talent managers and executives. For more information, please visit: http://www.humancapitalinstitute.org/.

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