As older workers are preparing for retirement, employers can help them make this sometimes challenging transition smoother by encouraging these employees to think about the steps they can take to create value and improve their well-being before and during retirement, according to an article that appeared in the April 2017 issue of Workspan, a magazine published by HR association WorldatWork.
The article, “How to Help Employees Ease into Retirement,” was written by Lori Block and Alan Vorchheimer of Conduent HR Services. The authors observed that given the extended lifespan of the average retiree, people who are preparing to leave the workforce have to consider the possibility that their retirement could last 20-30 years. Thus, they pointed out, prospective retirees will have to adjust to a number of new realities in order to live “well” during this final, and often extended phase of life.
In their article, Block and Vorchheimer referred to research done by the Gallup organization that identified “five pillars,” or elements of well-being that are essential to most people: namely, career, social, financial, physical, and community well-being. Increasingly, they said, HR professionals are recognizing that the workplace can be the foundation these pillars are built upon, providing people with the tools they need to perform well and feel good throughout their lives.
The authors advised companies looking to boost the professional well-being of their workers nearing retirement to offer these employees access to options like phased retirement, which can help both the employer and the employee gradually adjust to the individual’s departure. They also recommended that employers promote social well-being in the workplace through initiatives like multi-generational “reverse mentoring,” in which younger employees help their co-workers who are closer to retirement understand new technology and industry trends.
In addition, Block and Vorchheimer noted, employers can improve the financial well-being of older employees by offering them access to third-party vendors, voluntary benefits, and other programs they can carry into retirement. Finally, the authors advised employers to promote community well-being by, for example, giving mid-career employees and retirees assistance in transitioning from their current job to a position in a nonprofit organization that would benefit from their skills and experience.
Block and Vorchheimer stressed that applying this five-pillar approach to helping employees transition to retirement can enable employers to live up to their values and honor their commitments to their workers, while also resolving some practical issues. “On a practical level,” they argued, “it enables better workforce management and movement, breaking up possible career bottlenecks for newer employees while retaining and transferring critical knowledge from outgoing senior and experienced people.”
From Benefit Trends Newsletter, Volume 60, Issue 6
The information contained in this newsletter is for general use, and while we believe all information to be reliable and accurate, it is important to remember individual situations may be entirely different. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. This newsletter is written and published by Liberty Publishing, Inc., Beverly, MA. Copyright © 2018 Liberty Publishing, Inc. All rights reserved.