HR must be alert to the dangers of mature workers retiring and taking years of knowledge and experience with them, says Alison Monroe, director at SageCo
1 Do the maths: Crunch your numbers and make sure you have a
rigorous approach to workforce planning. Understand your data story and
know how big your retirement risk is. Put a dollar value on your replacement,
recruitment, restructuring and retraining costs. Warning – even with conservative
estimates you will end up with a big dollar figure.
2 Assess the risks: Work out what your key risks are. Is it knowledge loss
of long tenure employees with specialised, deep smarts? Is it redesigning roles?
Do you need to delay the retirement of a targeted group of workers by a few
years? Is it the ability to manage your mature workers so that they are positive
and productive as they approach retirement? What about wellbeing? Or return
to work? Or injury rates?
3 Calculate the ROI: Your business case to implement any ageing
workforce initiative must be evidence based and include a calculation for return
on investment, otherwise your senior managers will not buy into it. We use a
calculation that incorporates the cost to recruit and replace the number of
employees leaving over a period of time. You may have your own formula.
Whatever it is, use it wisely to show that the money, time and effort you want to
invest in managing your mature talent will return at ten fold to the organisation.
4 Find out who: Numbers are not enough. You now need to know who
could leave due to retirement and what they do. Do they occupy a mission
critical role? How difficult is it to recruit for this role? What are their working
intentions and can you influence them? Have this conversation with a targeted
group of mature employees and listen to what they say.
5 Shift the mindset: Traditionally the work cycle has generally ended with
full time retirement. In Australia at least, many of us have a stereotypical view of
retirement which involves caravans, endless rounds of golf and looking after
grandchildren. This is not the reality. Give your mature employees permission to
think about retirement differently. We hear the catch cry, “I’m happy to work
longer, just not the way I’m working now.” Retirement is a unique proposition to
every individual. Encourage your mature workers to prepare for the transitions
of late career. Help them set goals, deal with their finances, wellbeing,
relationships and identity. Break through the assumption of retirement and have
constructive conversations about their future journey.
6 Provide a pathway: In many organisations
the career path for employees aged over 50 tends
to fizzle out. Establish a career pathway which
includes redesign, redirection, re-careering, phased
retirement, internal consulting and contingent work
options. Know what knowledge you need to keep
and transfer and build a living, breathing
knowledge database that you can tap into at any
time. Help employees identify ways to work with
you beyond the traditional date of retirement.
7 Build your capability: Your HR people are
going to need to build bench depth in workforce
planning, job redesign, career conversations and
knowledge transfer skills. And they’re already busy.
SageCo will provide the resources, online toolkits
and expertise to make it happen and build your
internal capability at the same time.
The ageing workforce ‘issue’ is not a mere glitch
or ‘just a diversity’ initiative; It is core to your
workforce sustainability now and for the future. Put
wisdom to work and contact us for your next steps.
To read The Great Debate on Talent Management see the next issue of HR Leader magazine - hitting desks 14 September.
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