Most companies in every industry focus on employee retention. This enables lower costs and expenses, higher productivity, and even improved brand reputation and culture. But then, the inevitable will happen and your best talents will eventually retire. You will require new people to take over their position and invest resources in training them. One can only hope that the new generation of workers can stay committed as your Baby Boomer employees.
Why Baby Boomers Are Delaying Retirement
Today’s workers are often seen job-hopping. Many millennials and Gen Z claim that poor work-life balance and low engagement leads them to jump from one job to another. As a result, some companies don’t have a choice but to hold on to their Baby Boomer staff for a few more years.
But we cannot simply blame the young generations for this. Sometimes, people enjoy their job so much that they want to spend a little more time staying in their position. They’ve been working hard all their lives and can’t imagine themselves doing nothing in the next couple of years.
The number one reason why Baby Boomers are retiring late is because of financial reasons. According to statistics, many are left with no choice but to continue working due to their depleted savings little-to-non-existent retirement funds. Some failed to boost their wealth when they are still younger only to realize they can’t afford costly medical and long-term care expenses just yet.
It can also be because more seniors are still helping their kids financially. Even before the pandemic, senior parent welcomed their adult kids back home who are struggling financially. Since their expenses increased, some can’t find the heart to stop working for their boomerang kids’ sake.
The Good and the Bad of Delayed Retirement
Delaying retirement allows employees to save longer and take advantage of the benefits their employers are providing them. They can extend their sense of accomplishment knowing they excel in their job, thus boosting their confidence and quality of life. They can also help in finding the best talents who will take over their position and train them until they are ready.
But then, forcing yourself to continue working during your senior years can impact your health. Your productivity can suffer, your family will worry and this can also affect the company in many ways.
For companies, getting to keep your best talents longer allows you to leverage their skills for longer. You can have someone experienced to train their predecessors and ensure the succession will be as smooth as possible. Your other employees will have a boost in their morale knowing you are taking great care of your employee especially you’re your pioneer staff.
But then, when your employees work past their retirement age, this can affect many people in your organization that are below the said staff. No one is rigorously trained to take over their jobs which can affect the succession in the future. With no room for career improvement, you can expect some if not most of your employees to grab the first better opportunity they get.
How to Advocate for Timely Retirement?
Helping your employees retire on time is always a good business strategy. This allows you to leverage on younger and more eager workers who are ready to take bigger and more challenging roles. You are also giving your employees and other talents more reasons to want to become a part of your company thanks to your willingness to better set them up for their future.
Employers should raise financial awareness among their employees. They should ofer retirement plans to their employees, such as a 401K plan and match their contributions. For example, it pays to hire a financial planner that can help Verizon employees better understand their finances, learn more about a Verizon pension retirement plan, and determine if they are on track for a comfortable retirement.
According to the news, people are more likely to contribute regularly if there is an automatic payroll deduction for their retirement plan. But before you automatically enroll your employees, be sure to offer the options first. Remember that your staffs have different plans and goals in mind.
The more you try to be in control of their finances, the more aggressive you will look and the farther you drive them away from your goal. What you can do instead is to educate them on the benefits of saving consistently and regularly for their retirement. The more they understand their options, the more open they will be to payroll deductions, and the more they can grow their money to help prepare themselves for retirement.
You may cherish your senior employees for their great contributions to the company. But there will come a time when you need to let them go and allow them to retire gracefully. It would best that you take responsibility by supporting in saving for a timely retirement. They, in turn, will make the best use of their remaining weeks or months training your new talents to the best of their abilities.