As millions of baby boomers prepare to retire, "the inevitable talent drain threatens to alter the national economy," says Ithaca College sociologist Stephen Sweet, referring to a recent report he coauthored, released by the Sloan Center on Aging & Work, at Boston College. "Cracks have appeared in the foundation of the economy, and the work force is getting older."

The report—The Pressures of Talent Management—examined talent management practices at nearly 700 organizations across 10 leading sectors of the economy. The companies studied employ more than 1 million workers combined and represent businesses that account for roughly 85 percent of the jobs and payrolls in the U.S.

"Four of every 10 employers surveyed anticipate the aging work force will have a negative impact on their business over the next three years," says Sweet.

In 2000, baby boomers represented the largest portion of the U.S. labor force at 48 percent. As of this year, they're projected to shrink to 37 percent of the work force, leading some economists to predict a shortage of 10 million to 15 million workers in the coming decade, with a disproportionate number of inexperienced workers in the overall dwindling labor pool. The retirement boom affects staffing leadership and training as well as overall continuity and engagement within the work force.

"The out-migration of a generation of workers will upset the entire balance of the workplace," says co-author Marcie Pitt-Catsouphes, director of the Sloan Center. "U.S. companies need to start planning strategically for work-force sustainability. The current abundance of older worker talent and experience is going to dry up, and businesses will very soon need to fill hundreds, if not thousands, of jobs."

Though long-predicted, the threat of work force shortages has met with limited planning response from organizations. Realizing that some older workers want to work longer but more on their own terms to fit their changing lifestyles, some organizations created programs to improve employee engagement and productivity, and have a measured way to manage knowledge transfer. Those who heeded the warning and began adapting have a huge potential for a competitive edge.

"Work force planning makes good business sense," says Sweet. "Changing age demographics don't have to disrupt a business—they may present new opportunities or competitive advantages. Employers should take advantage of programs designed to meet the evolving needs of employees nearing retirement, while at the same time meeting business needs by keeping experienced talent longer and ensuring business continuity."

Additional key study findings include the following:

•77 percent of employers surveyed hadn't analyzed projected employee retirement rates or assessed employee career plans.

•56 percent of these businesses hadn't assessed the skills their organizations need today and in the future.

•About one-third of employers reported not having enough programs for recruitment or training of older workers.

An associate professor of sociology at Ithaca College, in Ithaca, N.Y., Sweet studies the intersections between work, family, and community. His most recent book, "Changing Contours of Work: Jobs and Opportunities in the New Economy," examines how economic transformations are reshaping work opportunities in the U.S.