The Silver Tsunami and Reluctant Retirees: A Guide for HR
HR is responsible for many tasks. So many, in fact, that is can be hard for managers to keep up with the current happenings in the field at large.
Right now, there are two major things that HR managers might have missed out on: the ongoing Silver Tsunami and reluctant retirees. Both of which have to do with the Baby Boomer generation exiting the workforce.
Here’s everything you need to know to get up to date:
Preparing and Weathering the Silver Tsunami
The Baby Boomer generation has enjoyed the top spot when it comes to workforce numbers for many years now. In fact, they are just starting to be eclipsed by the Millennial generation that is starting to transform how work is done.
This shift is largely because Baby Boomers are starting to retire, which means that the workforce is going to change quickly over the next couple of years and organizations need to be ready for a wave of retirements.
This “wave” is known as the Silver Tsunami. Basically, current estimates indicate that 10,000 or so Baby Boomers will exit the workforce every day for at least the next decade, creating leadership voids in countless industries.
It is up to HR leaders to figure out how to fill those voids with new - often times Millennial - talent.
In other words, there is a changing of the guard and if your organization isn’t ready for the shift, you will seriously be behind in the market at large.
On the other hand, there’s also a problem with many Baby Boomers simply postponing their retirements for various reasons, which brings us to our next point:
Reluctant Retirees: The HR Problem
While it’s easy to see how the Baby Boomer generation will impact workplace turnover in the next couple of years shearly by their numbers, it’s also to point out that some Baby Boomers will actually decided to work much longer than they should.
These individuals are known as reluctant retirees and they can have the opposite effect of those Boomers that are leaving en masse.
If your organization is filled with long term employees that are well past retirement age, it can stagnate organizational growth by not allowing new leaders to emerge, impacting your organization’s ability to utilize new ideas, technologies, and talent.
Without a healthy amount of turnover, you can fall behind other, more forward thinking, companies, and that is exactly what you - the HR manager - doesn’t want to happen.
What Does All Of This Mean?
Well, to put it simply, right now there is a twofold problem facing many HR departments. On one side, you have a mass exodus of Baby Boomers leaving the workforce, creating voids in upper management, and you have some retirees who will simply try to work forever, causing your company to lose out on valuable new talent.
What’s The Solution?
The best way to deal with both of these impending issues is to create a workforce planning guide so that you know what talent your organization needs, how to retain that talent, and what to do if you long term employees decide to retire. In this plan you should keep an eye out for reluctant retirees who may need motivated - usually through coaching and guidance - to allow new talent to rise.
It’s a tricky situation no matter how you put it, but with proper planning, HR can come out on top.
