Retirement used to be relatively straightforward and simple for companies to manage. Employees reached retirement age, they turned in their paperwork and rode off into the sunset to live the good life. But that was then and this is now. Our grandparents and great-grandparents would hardly recognize what “retirement” looks like today. People are working much later into their golden years than ever before, and everything we once knew about retirement is changing.
A Long Life Is An Expensive Life
Working keeps our brains active and gives us an opportunity to interact with other human beings – and that keeps people sharper and more active later into life. We are living longer, and age 62 doesn’t really seem “old” to most people anymore. Lots of people work later into life simply because they want to.
But some people are working longer because it’s practical, or because they have to. Since we human beings are living longer, we need to be sure that we have enough money to support ourselves once we do retire. That means working as long as possible and socking away as much as possible, especially for employees who didn’t save as much as they should have early in their careers.
Taking Advantage of the “New Retirement”
Many HR departments struggle with skill gaps and knowledge gaps, especially in the face of mass retirement. Instead of assuming all older workers are ready to be put out to pasture, HR teams should work closely with department managers to rethink their approach to retirement. Are there benefits in encouraging older workers to stay?
There was a time when it was common for older workers to feel pushed out of their positions to make room for younger (often cheaper) talent. However, the exodus of the Baby Boomers is going to create a significant knowledge gap and many employers are opting to keep retiring workers on in a part-time, consulting or job-sharing basis to ensure that the people stepping into their position are capturing that knowledge. This gives older employees the chance to enjoy the best of both worlds: more time off while still staying active and engaged on the job. The employer also benefits by protecting the knowledge that would be lost when a talented, seasoned employee retires.
How Does Your Organization View Retirement?
Navigating the way in which your employees want to retire requires a new way of thinking. Three are a number of ways in which companies can take this “new” retirement and make it work to their advantage, but creative thinking requires creative people. If you are looking for forward-thinking HR professionals for your organization, or if you are an HR pro looking for innovative ways to enhance your hiring and retention strategies, reach out to the HR recruiting experts at Contemporary Staffing Solutions to discuss your goals and we will help you develop a strategy to get you there.