Losing seasoned employees to retirement may seem like a scary idea, but it doesn't have to be. Actually, retirement has its advantages.
Rather than worry about your aging workforce, try these six ways you can leverage retirement to your company's benefit.
1. Use your retirement plan as a recruitment tool
Obviously, when employees retire they need to be replaced. It's easier said than done. As many as 78% of manufacturers are concerned about what will happen when their workers retire, according to The Manufacturing Institute. The first step is to start recruiting.
Does your company have an impressive plan for retirement? If so, put that information somewhere that prospective employees might see. Post it on your careers page, job descriptions or anywhere that may attract workers. Otherwise, revise your company's retirement strategy and make improvements where available.
2. Provide retirement and financial savings resources as a means of engagement
Keeping workers engaged is critical to retaining them. Whether they're aging workers or fresh-faced newbies, disengaged employees aren't good for anybody. Retirement seminars, financial savings resources and other tools can help educate the workforce about retirement.
3. Set an example with retiring employees
Celebrating your retirees is a good way of expressing gratitude for the whole company to see. Let it be known how much a worker's tenure has meant to the company. Other workers will gain a sense of reassurance that management is there for their well-being. What's more, it may go a long way toward worker retention.
4. Establish a mentorship program
As aging workers leave the workforce, so too will their knowledge and experience. This is why transferring knowledge to the younger employees is so vital. However, according to a report by Panopto, many large businesses are failing to transfer knowledge. In fact, resulting inefficiencies cost them over $47 million per year. Mentoring young workers is critical to preserving institutional expertise at any company.
5. Use phase-out schedules to your advantage
Start phasing out employees who have decided to retire. Easing them into retirement helps both the worker and the business. As they prepare for life after work, the business can save overtime costs in the short term.
6. If an employee is unsure of retirement, suggest extended sabbaticals
Sometimes, in any industry, the prospect of retirement seems unbelievable. When a worker is on the fence about their decision, suggest taking an extended sabbatical. While they get a brief taste of retirement, they also weigh the pros and cons. If they decide to return to work they'll feel renewed and ready.