Baby Boomers Leaving the Work Force – Don’t Let Their Knowledge Leave with Them
According to the Pew Research Center, approximately 10,000 Baby Boomers will reach age 65 every day until the year 2030. It is a good idea for employers to prepare for this exodus of not only the individuals, but the tribal knowledge of your business that will leave with them. One way for employers and employees to transition is by offering partial and trial retirement.
Retirement transition options can be beneficial for both employers and employees. Employers retain access to past experience and knowledge while employees gain benefits valuable to them at their stage of life.
Generally, it consists of a reduced work schedule in some capacity or another. Below is a list of options employers may implement during this transition period:
- An employee could “retire,” but stay on as a contractor, eventually phasing out the number of projects assigned.
- Simply offering a part-time schedule.
- Allowing remote or telecommuting work.
- Offer perks within their benefits package, like financial planning and/or memberships to retirement organizations.
- Allow time off, either paid or unpaid as a way for employees to transition into spending time away from the office.
- While the employee is still employed, offer early payment of partial pension benefits (if a pension is active).
Some benefits to employers offering partial or trial retirement:
- Transitioning gradually allows the retiring employee to train his or her successor.
- Employers are able to retain productive, content employees on the job a little longer.
- Non-retiring employees may choose to stay with the company longer, after seeing the benefits offered to a retiring employee, thus creating employee loyalty.
- This type of benefit can attract potential employees and improve the image of the company.
As you decide which aspects of partial or trial retirement you’d like to implement, it is best to determine the eligibility parameters prior to offering them. Design the plan options up front. In the end, this will increase your uptake and make it easier to track and implement employee options consistently.