The changing work environment favors many employees, accommodating more flexible work schedules and the looming collective retirement of Baby Boomers and Generation X. Companies are shifting toward adaptable employment models to meet their workers’ diverse needs as massive demographic changes dictate the future of employment. Flexible work schedules are no longer simply a benefit but a critical element in promoting business growth and sustainability in the contemporary era.
Many individuals now contemplate alternatives to complete retirement, motivated by increased life expectancy and a desire to remain active in later life. Flexible work arrangements, such as part-time roles or consulting positions, are also growing more popular among older adults, enabling them to combine the perks of retirement with maintained income sources.
61% of corporations have switched to phased retirements, a significant increase from the previous adoption rate of 16%. This approach allows transitioning employees to gradually reduce workloads while continuing to earn income and maintaining important skill sets within the company.
Adapting employment models for phased retirement
Phased retirements has become a favored approach, particularly among Generation X, millennials, and younger demographics.
MasterControl’s Chief Culture Officer, Alicia Garcia, has echoed this sentiment, endorsing phased retirement as a viable approach, beneficial to the organization in terms of knowledge retention, elevated morale, and reduced turnover. Gradually reducing work hours offers a balanced method for securing future plans while maintaining a comfortable present. This also gives individuals time to supplement their savings while adjusting to a post-employment lifestyle, becoming a practical “soft retirement” trend.
Businesses are encouraged to reassess their transition strategies in light of the decreasing tendency to stick with a single employer until the age of 65. By adopting phased retirement strategies, companies can cultivate a more flexible work environment, enabling them to retain experienced workers to impart their knowledge and skills to the incoming workforce. The approach to retirement is also less abrupt for such transitioning employees, making the shift into retirement smoother and less stressful.
Phased retirement also provides flexible work options, such as working fewer hours, negotiating reduced salaries in exchange for continued job benefits, or moving into roles with lesser responsibilities. Importantly, it contributes to organizational diversity by combining different age groups, fostering innovation by facilitating the interaction of fresh ideas and seasoned perspectives. In summary, phased retirement can be a win-win situation for retirement-age individuals and their companies, promoting successful knowledge transfer, employee satisfaction, and overall organizational productivity.
