A Publication of WTVP

In recent years, Human Capital Management (HCM) has become as much a buzzword as ecommerce was in the mid- 1990s, when it burst onto the corporate scene promising to make millionaires of us all. The difference, though, is that attending to HCM now may save our millions, if not make us millionaires.

E&Y research (2006) claims that in the next three years, as the baby boomers retire, the number of US workers between the ages of 45 and 54 will grow by an estimated 21 percent and the number of workers between ages 55 and 64 will grow by over 50 percent. By the year 2030, it is estimated that people aged 65 and older will constitute about 20 percent of the country’s population, or one of every five Americans.

Our experience with Human Capital Management suggests that companies should initiate the following steps to avert the crises they are most likely to face over the next few years:

In addition to existing human capital, companies should also attempt to transfer the knowledge that the retiring employees possess:

The days of unilateral success are over. If we do not shift our focus to a more people-based management style, we may lose the competitive edge we have had for several decades now. IBI