The demographics of the workforce are undergoing a dramatic change. Already, 11 percent of the active workforce is over 56 years old, a percentage that will grow steadily as Baby Boomers age. In fact, between now and 2012, nearly 50 percent of the current workforce will become eligible for retirement. Organizations must prepare now for the steady departure of huge numbers of their most experienced people.

On the heels of retiring Boomers, the much less populous Generation X (now ages 25-38) will provide a shrinking pool of prime-age workers. And even with a modest increase in workforce population among Generation Y (now ages 16-24), there will simply not be enough young workers to fill the void that will be left. As a result, most organizations will face a serious shortage of workers. This is especially true of skilled workers; already, shortages in healthcare, government, education, transportation, non-profit sectors, and manufacturing have reached near-crisis levels. And, due to changing world affairs, immigration will not be a viable solution to the staffing shortages to come.

So, what can your organization do to prepare for the generational shift in the workforce?

1. Forestall the retirement of as many older workers as you possibly can. Whenever feasible, support semi-retirement through flexible work arrangements: flexible schedules, telecommuting, and flexible conditions of employment. Build giant reserve armies of retirees. Immediately begin the process of capturing and transferring the knowledge, skill, and wisdom of older workers.

2. Call upon Boomers to resume their youthful role as change leaders. Now is the time to abandon hierarchical norms, sink-or-swim management, and one-size-fits-all career paths.

3. Prepare Gen Xers for supervisory responsibility and leadership. Gen Xers are now entering their prime working years in short supply and full of attitude. Xers want status, authority, and rewards, but often resist traditional management roles. Create new paths to leadership, redesign leadership roles, and develop the new generation of leaders for those roles.

4. Accelerate the professional development of Gen Y employees. Recruit new employees at younger ages, get them up to speed faster, and trust them with important roles involving critical tasks and responsibilities. There’s no choice; there simply won’t be enough older experienced workers to get all the work done. Teach managers to coach these high-maintenance younger workers every step of the way on every single thing — from time management to customer service.

5. Be prepared to exert more pressure to get more work and better work out of fewer people. Everyone is going to have to work smarter, faster, better, and probably longer and harder too. Highly skilled, hands-on, coaching-style management will still be the key to success.

Bruce Tulgan is the author of Winning the Talent Wars, published by W.W. Norton. Bruce is the founder of RainmakerThinking, Inc., which is a research, training and consulting firm focused on the working lives of those born after 1963. Based on the pioneering employee interview research they have conducted since 1993, RainmakerThinking advises leaders and managers in a wide range of organizations on realigning recruiting, performance management, and retention practices to fit the new “free agent” career path. Visit their Web site at www.rainmakerthinking.com

© Bruce Tulgan, Rainmaker Thinking