According to a new survey from the Society for Human Resource Management, companies are not prepared for dealing with aging workers. Only one-third of companies are actually examining their policies and practices to address this issue. In addition, an extra 20% had decided that no changes are necessary in their existing policies and practices. The survey is really interesting and you can check it out here.
It reminded me of Ted C. Fishman’s book, “Shock of Gray”. The book talks about the aging population and the implications for business, consumers, etc. Frankly, it doesn’t seem logical to think that a large portion of our society is getting older and that it just doesn’t impact the workplace.
However, in speaking with colleagues, maybe businesses do realize that the workforce is aging. And that they need to do something about it. The challenge is reframing the retirement conversation.
It’s not as easy as it looks. People are starting to realize the importance, but it will take a paradigm shift to get the conversations going.
Years ago, retirement was like resigning. You went into the office one day and you said, “I’m retiring.” And you did. When you retired, you stopped working and started collecting your pension. Done. Finito.
Today, retirement looks very different. More older workers are planning to stay full-time longer. They are trying to plan a phased retirement. Some people are announcing their retirement, leaving the working world for a few months, and then asking to return! This could be a challenge in organizations that have never dealt with these situations.
Companies need to figure out how to allow retirement conversations to happen within their culture. The organization will benefit when employees feel comfortable talking about their plans for the future and the company can better positioned to react to them. Valuable historical knowledge about the company can be transferred. Jobs can be redesigned to accommodate part-time or contingent work, allowing the company to retain talent. Older workers can mentor or coach young professionals and help with their leadership development.
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Aging workers and retirement are not a dirty words in the workplace. They are also not synonyms for resignation. Aging workers are thinking about retirement. Companies should be thinking about it as well. There’s an opportunity to create a win-win. But it takes communication.
UPDATE (February 3, 2015): The subject of this post focuses on companies and employees working together in the spirit of creating a win-win where retirement is concerned. And that is very much possible. However, I do want to remind everyone there are risks to these conversations. As one of my astute employment attorney friends reminded me, companies that initiate these conversations then later terminate employees, or otherwise subject them to adverse action such as a demotion, could be opening themselves up for age bias claims. As always, if you have any questions about engaging in this type of discussion, reach out to your friendly labor attorney.
Image courtesy of Sharlyn Lauby
Harold Ingmire says
The statements are right on point, and I know from my conversations with co-workers and my own thoughts who are baby boomers they have several fears to discussing retirement, even though our Company has no history of booting people out that are being productive. First is the fear that if they set a date, they are locked in and can not change their mind if something happens to them health-wise or financially. That is why is it common for individuals to give a very short notice and leave no time for transition which is horribly painful for the company, and third, they are afraid to participate in a secession planning conversation because they believe it will uncover their weaknesses at work and lead to an early career demise. I have friends who are great performers, in their early 60’s and just do not want to openly discuss their plans with their employers due to their fears. They want to go out with dignity, and a Company has to develop a plan to include this concept – while the transition may require department restructuring, looking for new skill/education sets, and a goal of improving with the change it must be done with their (our) dignity in mind. Great post! thank you!
RChilli says
What a concept ?? amazing .
only few organisation thinking that way. In early decades 60’s 70’s 80 or even 90’s no body cares about ageing employees. well raised topic by SHARLYN LAUBY. By Rchilli.com Hr software track the employees data and its previous records very effectively.
Sharlyn Lauby says
@Harold – Thanks for sharing! Totally agree that both employers and employees need to get comfortable talking about their retirement plans. And recognize that those plans might change.
@RChilli – Thanks for the comment. Older workers can still bring tremendous value to the workplace. But, businesses need to be ready to make some changes.
Vivek Patel says
But those companies are doing wrong with their employees. Because those are the employees who give their whole life to the employer.
haragopal says
Senior and aged employees are an asset to any company and any ill treatment will demoralise not only them but entire group of employees.