A recent business article suggested conventional management methods won't work on kids coming out of college today. The reason: Modern youths are so digitally adept and Web savvy, they're all out-of-the-box thinkers.

OK, stop smirking. Leadership and management are not going out of style. In fact, the generation now entering the work force is the least of your difficulties. The real problem comes at the other end of age spectrum when the baby boomers start retiring.

In about 2011, the first of the baby boomers, the most experienced people in your company and the most educated in history, start reaching 65.5 years old, the age at which Social Security and Medicare kicks in to make retirement more attractive.

This will be a significant event. To get a handle on it, just look at the numbers: In 2011, some 653,000 more people will be eligible for retirement than in 2010. By 2012, 1,059,000 more than in 2010 might leave. The numbers peak at about 1,642,000 in 2022 and then decline until reaching a “normal” level in about 2030.

Other countries with large older populations will give hints at what's to come. Japan's population now has a negative growth rate of -0.1%, and according to the U.S. Census Bureau, it will drop to -0.7% by 2025. Its demographic chart looks like an inverted pyramid with the old and retired at the top.

Russia's future is darker. Years of thoughtless central planning made it so difficult to raise families, its population began to shrink as far back as 1995. Russia's growth rate is projected to dip to -0.6% by 2025. For comparison, the Census Bureau sees a U.S. population growth rate of 0.8% by 2025.

Such population changes are likely to spur greater automation for anything drawing manpower. Japan may find healthcare workers by opening its doors to other Asian countries such as China or Korea. But countries that cannot offer decent life styles for guest workers might have trouble attracting them. Other government action might raise the retirement age to keep some in the workforce longer and to stretch funds such as Social Security. Federally-sponsored universal healthcare in the U.S. looks more likely, along with more reimbursement codes for new products aimed at all age groups.

People faced with the opportunity to retire will respond in ways that challenge employers. They could walk out never to be seen again. Or, they could continue working because they enjoy their job. In that case you'll continue to benefit from their experience.

A company's challenge is to capture the experience and knowledge of those who leave so others can use it. One idea: Get them to spend the last six months on the job revisiting projects and explaining why decisions went the way they did. Vendors of PLM software claim their products can record such information, but you might challenge them on that point. It is one thing to capture data and information. Capturing knowledge and experience is quite another.

Rather than capture knowledge before it walks out the door, consider ways to keep knowledge people on the job. Possibilities include a part time role for potential retirees with useful skills, or let them telecommute. Longer paid vacations are working for some companies. Perhaps they can define their own projects or spend time mentoring new hires.

How do you envision baby-boomer retirements affecting medical companies?