Solving the delayed retirement puzzle … and creating win-win opportunities
| Pages | 123-130 |
| Published date | 09 April 2020 |
| DOI | https://doi.org/10.1108/SHR-03-2020-0015 |
| Date | 09 April 2020 |
| Author | Patti Phillips,Jack J. Phillips |
| Subject Matter | HR & organizational behaviour,Employee behaviour |
Solving the delayed retirement puzzle ...
and creating win-win opportunities
Patti Phillips and Jack J. Phillips
Abstract
Purpose –The population across the industrialized world is aging to the extent never experienced
before in history,living 10 years longer on averagethan the previous generation and nearlytwo decades
longerthan two generations ago.
Design/methodology/approach –To date, this rapidlygrowing segment of the population is not always
addressed in inclusion and diversity plans and has often been overlooked as a source of competitive
advantage,rather seen as a cost and a burden in someorganizations.
Findings –Leaders in industrial nations agree that to continue strong economic growth, it is vital to
support people to live healthier lives and stay in the workforcefor longer. By doing so, we can not only
improve well-being and enable people to remain active and economically productive but also reduce
dependency,bringing down the burdens on health,pensions and social systems.
Originality/value –When this challenge isaddressed, important motivational and productivitybenefits
will result from the seasoned talent segment staying a little longer with the organization. They will stay
longerbecause they want to, not because they cannotafford to retire.
Keywords Learning and development, Engagement, Talent management,Strategy, Knowledge
Paper type Conceptual paper
The situation
Leaders in industrial nations agree that to continue strong economic growth, it is vital to
support people to live healthier lives and stay in the workforce for longer. By doing so, we
can not only improve well-being and enable people to remain active and economically
productive but also reduce dependency, bringing down the burdens on health, pensions
and social systems (Milligan etal., 2019).
From an organization’s perspective, the notion of extended retirement has its positives and
negatives. In the negative category, older employees sometimes have much higher
salaries, and this sometimes places a burden on compensation expenses. Then there are
rules, regulations, practices and stigmas that prohibit extending the retirement age,
particularly in governments,large organizations and unionized firms. Additionally,there may
be others in the organization who wish the older employees would retire. Gen Xers and
millennials want those jobsto open up, creating more opportunities for promotions.
On the positive side, extending retirement means you keep the expertise you need, and
knowledge is retained in the organization. This gives more time to ensure that this
knowledge is shared and acquired by others. Because of the tight labor markets, it may be
difficult to obtain replacements for this level of talent, so extending retirement could help
relieve the current talentshortage.
Our labor forces fuel economic growth –their size and participation rates as well as their
productivity. We are now experiencing a slowing down in the rate of economic growth after
11 yearsof strong growth. Unemployment is at a historical low point, fueling wage growth.It
Patti Phillips and
Jack J. Phillips are both
based at ROI Institute,
Birmingham, Alabama,
USA.
DOI 10.1108/SHR-03-2020-0015 VOL. 19 NO. 3 2020, pp. 123-130, ©Emerald Publishing Limited, ISSN 1475-4398 jSTRATEGIC HR REVIEW jPAGE 123
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