CSCMP's Supply Chain Quarterly
March 22, 2019
Forward Thinking

Strategies for filling the retirement gap

Comment
Studies show that companies could lose more than half of their senior managers in the next three years to retirement. Yet many CEOs and senior leaders may be unprepared to deal with that possibility.

When baby boomers—people born in the 1950s and 1960s—start retiring in droves, companies will find themselves facing a talent void that will be hard to fill.

Studies show that companies could lose more than half of their senior managers in the next three years to retirement. Yet many CEOs and senior leaders are unprepared to deal with that possibility, writes Eric Herzog in his new book, Future Leaders.

One of Herzog's suggested remedies is phased retirements: If Baby Boomers ease themselves out of the workforce by working part time, organizations will be better able to prepare younger workers to replace them.

Companies will also be struggling to fill technical and line-management positions, Herzog predicts. These demographics could have a troubling effect on supply chain management. COSTCO Wholesale Corporation prepared for that eventuality by creating "COSTCO University." The book details how the store chain established a structure for experienced warehouse managers to teach best practices, leadership, and problem-solving skills to other employees. As a result, COSTCO developed a pool of new managers from within its own ranks— enough to allow the company to keep up with normal attrition rates while opening 40 new locations.

Future Leaders can be purchased at www.atlasbooks.com.

Editor's Note: CSCMP's 2007 Annual Conference will feature an address by Joseph Coughlin, director of the Massachusetts Institute of Technology's AgeLab, on the business impact of an aging workforce and consumer base.

Join the Discussion

After you comment, click Post. If you're not already logged in, you will be asked to log in or register.


Want more articles like this? Sign up for a free subscription to Supply Chain Executive Insight, a monthly e-newsletter that provides insights and commentary on supply chain trends and developments. Click here to subscribe.

We Want to Hear From You! We invite you to share your thoughts and opinions about this article by sending an e-mail to ?Subject=Letter to the Editor: Quarter 2007: Strategies for filling the retirement gap"> . We will publish selected readers' comments in future issues of CSCMP's Supply Chain Quarterly. Correspondence may be edited for clarity or for length.

Want more articles like this? Subscribe to CSCMP's Supply Chain Quarterly.