It is absolutely critical that you find innovative ways of utilising the tremendous source of experienced, loyal, productive human capital you have residing in your business.
How serious is this problem?
It is predicted that by 2020, 50 per cent of our current workforce will have retired. This will leave a gaping hole in the skilled workforce available. Businesses will lose the broad-based business experiences of baby boomers. Their skills are needed to foster and transfer cross-generational knowledge which is so important in modern diverse workplaces.
What does this mean to you and your business?
As your baby boomer workers start to consider retirement, you need to counter the potential ‘brain drain' you may experience by developing flexible working arrangements that enable you to retain the knowledge and skills of these valuable employees.
If you can win over your older workers by accommodating their needs for flexible working arrangements it is definitely a ‘win/win' situation. It is estimated that replacing an experienced worker of any age can cost a business 50 percent or more of the individual's annual salary in turnover-related costs. Add to this the costs of training to get the required qualifications, experience and skills often possessed by 50 plus workers and the costs can be daunting.
If you genuinely regard your people as your business' most important asset, then dealing with the impending loss of these resources should be your organisation's highest priority.
A good place to start is by developing and implementing a mentoring program so that employees nearing retirement age can pass their knowledge, experience and insights on to younger staff.
Are you prepared?
Do you know who of your staff are nearing retirement?
Do you know what their plans are for their future?
Do you know which areas of the business will experience the greatest number of retirements?
Are there areas of your business that are more dependent on essential or unique operational knowledge?
Do you have the processes in place to be able to use Information Technology to capture critical knowledge and processes before key staff retire?
Tips for effectively engaging and keeping your mature workers
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Make sure that your older employees want to stay on. Don't let them feel that they are fast approaching their ‘use by' date.
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Promote opportunities for them to update their skills, both in and out of their areas of expertise.
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Keep them up-to-date with the latest technologies.
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Seek their input and use it.
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Give them recognition, support and praise when appropriate.
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Ensure they know you care about them.
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Encourage a healthy work-life balance and allow flexible working arrangements.
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Offer more flexible hours, job share or part-time jobs.
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Offer the ability to work from home or remotely (telecommuting), part or full time.
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Offer where appropriate, the ability to work only in high productive seasons.
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Consider ways to make your benefits package more attractive to this age group.
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Consider allowing them to work on temporary or short term assignments.
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Tap into their experience, knowledge and loyalty by getting them to act as mentors or coaches to less experienced staff; get them involved in your succession planning; and get them involved in cross generational training and teamwork.
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Explore innovative ways for these employees to be challenged and stimulated and avoid job boredom.
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