One of the biggest shifts in the workplace is happening right now. And it’s workers themselves who are making it happen – not lawmakers, regulators or expensive consultants. As aging boomers approach retirement with their next eggs considerably compromised, they’re redefining the whole concept of retirement. Instead of the party and the gold watch, they want to stay on the job, but cut back on their hours and set their own schedules.
It’s often a win-win, of course. Older employees can maintain their standard of living, while employers gain the benefit of their experience and skills without having to carry a full-time employee on the rolls. But because these arrangements are often ad hoc, few organizations have taken a strategic approach.
For example, a piece in the Dallas Morning News points out that part-time employment could negatively affect an employee’s benefits, including life insurance and long-term disability insurance; pension calculations, which consider average salary over the final years of one’s career; and social security benefits.
Out of my way, Gramps
There are broader strategic questions as well. Will younger workers see older workers who refuse to step aside at age 65 as an impediment to their own advancement? And how do you compensate formerly salaried workers who are now part time? Do you pay them by the hour? Are they eligible for overtime if they put in longer hours?
Perhaps most important, what role should “phased retirees” play in the organization? Do you use them like other part-timers, to fill in during slow times? Or is there a better use of their talent and experience – for example, should they have a formal role in mentoring and developing younger workers?
These workers can be a tremendous asset to their organizations. Now’s the time for HR to begin thinking about how to make the most of them.
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