This is a guest post by Rhiannon Rowley from Connor, an executive outplacement service provider.
Why it’s the right thing to do, the benefits to your business, and how to implement it
Supporting employees in the latter stages of their career might not be at the top of your list of priorities for people development this year, but with research from Aviva telling us that almost 1.4 million people are now working beyond the traditional retirement age of 65 - over 10% of this age group in the population and almost triple the number in 2000 - it is likely you will at some point have a significant proportion of your work force at this stage of their career.
This can present challenges to organisations, particularly when it comes to restructuring or letting people go.
With any employee made redundant there comes a concern about what their next step will be and how best to support them, but with those in the twilight of their career this can feel an even harder decision as you worry about what they might do next and how they will adjust to this next period of life.
The message can often be harder to land in the best way, as often employees don’t anticipate their career exit date and plan being taken out of their hands, and there can also be concerns from an internal PR perspective if colleagues feel that someone who has given years to the company is now being cast aside when a new structure comes in.
How can you look after retiring population in your organisation if you do have to let them go, and what are the benefits of doing so?
There is no blueprint for retirement, no handbook or set way of doing it. If you asked 10 different people what they wanted from their life after work, you would probably get 10 different answers – or else be met with a chorus of “I don’t know.”
It is very hard for us to cognitively consider and visualise something we have never experienced before and carving out the time and head space to do this whilst still employed is especially difficult, as employees are continuing to balance the daily demands of working life.
Offering retirement coaching as part of your redundancy outplacement support means employees will have the guidance and opportunity to work with an expert and think about what they want from this next phase of life, how to achieve balance and structure when stepping away from the routine of working life, and how to best communicate this to those around them.
Employees therefore leave your employment with a clear plan of what they want their happy and healthy retirement to look like and how to make this a reality. Leavers with long service who could be at risk of feeling neglected or overlooked at the end of their career, instead leave as company ambassadors and are invested in a smooth handover.
Those around them can see your company living their values of looking after employees, which can in turn have a positive effect on their own perception of the organisation.
Opening up the conversation about retirement can also be hugely beneficial to your organisation, helping you with succession planning and allowing you to capture as much of the knowledge and experience of your older employees before they do leave.
When difficult decisions have to be made in business you need to know you can continue to function as efficiently and commercially as possible, even with knowledge being lost to the business through redundancy. Getting retirees on side for this knowledge transfer can make a huge difference to how this process flows and the attitudes and emotions of all involved, from the employees directly, to colleagues, to suppliers or customers.
Practical steps you can take to support retiring employees
1) Ensure free, impartial financial information is available to all employees
A huge consideration when approaching retirement is working out whether you can afford to retire and what sort of lifestyle you can expect to have.
Working out how pensions, mortgage, debt, family commitments and future aspirations all come together and the related tax considerations can be very difficult to do alone, and the fear of the unknown often stops people from taking action.
Ensuring employees have access to independent financial advice takes care of this primary concern so that they know what their financial options are and what might be possible with stepping away from work, or whether they will need to continue working part time.
Many outplacement companies will offer this support to those considering retirement, seeing it as a key factor in making a happy and fulfilled transition to life after work.
Bear in mind also that you don’t want to fall into the trap of assuming what someone’s next step might be. You may have an employee who is 68 who is very keen to find another role, or one who is approaching 60 that would like to consider semi-retirement.
To stop people feeling shoe-horned into a decision based on arbitrary things like age or length of service, offer the financial support to everyone so they know what their options are and are able to make an informed decision.
2) Partner with an outplacement company that can support people whatever their planned journey
Those approaching or considering retirement rarely want to follow a stereotypical retirement of putting their feet up in front of the telly all day or pottering round the garden come rain or shine.
More often people want to look at finding a new part time or flexible role, something with less stress or pressure than what they are doing currently, explore pursuing a hobby or interest more actively, or securing voluntary work to feel like they are giving something back.
Ensuring you work with outplacement companies that are able to flex their support regardless of the desired outcome means your people will get what they need, whatever their plan. It also means that if plans change – as they often do when employees get a new or different perspective on life after work – they will still benefit from the support you have invested in.
3) Make sure employees know about the support on offer
Quite often companies invest in support for exiting employees that the rest of the employee population don’t know about until they are in the position of needing to use it themselves.
In doing this, companies are missing a trick of improving employee morale and perception of the company, even if the employee is never impacted by a restructure themselves.
Knowing them and their colleagues will be looked after if the worst happens helps put their own minds at ease and improves the perception that they have of the organisation.
It also means if you are in the position of needing to let people go you might find you have more takers for voluntary redundancy if they know they will be looked after whatever their goal.
So often employees think outplacement support is only there to help you find another job so those considering retirement cling on to what they know even if this isn’t the best solution for them or the organisation.
If everyone knows that redundancy outplacement support and individual outplacement support will also cover those looking to retire, or assessing their options, the fear is taken away and more people are prepared to put their hands up, limiting those that are impacted without a choice.
Final thoughts
Letting people go when they are near to retirement or know they don’t want to find another job can still result in really positive conversations with employees, as long as they continue to feel valued and listened to throughout the process in the same way as their younger, career-driven colleagues.
There are additional factors to consider in your retiring population, but by offering a tailored approach to redundancy outplacement support that gives them what they need, when they need it, your valued employees are able to keep control and visualise a positive life after work.
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About the author
Rhiannon Rowley joined Connor, an executive outplacement service provider, where she leads on the content and delivery expertise for the outplacement proposition. She also supports people practically and emotionally by delivering one-to-one coaching and designing and delivering bespoke workshop solutions in areas such as finding a new role, setting up a business or transitioning to retirement.
