Understanding the Role of Leadership in Managing the Great Retirement
In 2023, more Canadians chose to hang up the gloves than ever before. If America is suffering the lasting impact of its Great Resignation, Canada’s ‘Great Retirement’ is now firmly underway.
As a business leader, navigating this transitional period is crucial if you hope to maintain organizational stability. While it’s difficult to predict when the brain drain on Canada’s workforce will cease, you have more power to instill change than you might at first believe.
At Cenera, we’ve been collaborating with and supporting leaders for over 25 years and, in that time, we’ve witnessed firsthand how social change impacts and shapes businesses. In this article, we'll examine the role of leaders in The Great Retirement and detail six strategies businesses can adopt to navigate and succeed in an employment landscape that may be fraught with challenges.
Navigating the Great Retirement as a Leader
Canada’s ageing population means large-scale retirement has long been a cause for concern. The last of the baby boomer generation will be turning 65 in 2030, and the 65+ demographic already makes up almost 20% of Canada’s population. It’s no surprise that retirement rates are steadily increasing and the upcoming exodus of the baby boomers will create a large imbalance in the our workplaces.
But an ageing population does little to explain why 21.8% of Canadians aged 55-59 now report they are partially or fully retired. Another key factor to consider is burnout exacerbated by the recent pandemic. An alarming 35% of Canadians say they currently feel burned out at work. Naturally, this most significantly impacts those in the 55+ demographic who may not have considered retirement but now see it as a necessary step to prioritize their wellbeing.
The good news? There are steps you can take as a leader to address and manage this social shift. With a strategy in place to retain highly skilled staff and a cohesive plan to lessen the impact when key employees choose to retire, it's entirely possible to remain robust and organized in the face of unprecedented change.
Let's run through six key considerations that should be at the forefront of your mind.
1. Take the Time to Address Burnout
It’ll come as no surprise that burnout is often a precursor to an early retirement. The lasting impact of the pandemic has amplified this problem, especially in high-stress industries, such as the healthcare and education sectors.
As leaders, knowing how to recognize and manage burnout is a necessary way to foster a healthy working environment. Acknowledging signs of fatigue, stress and overworking within employees is a vital first step toward tackling the issue.
Once you understand that a staff member is experiencing burnout, simply taking the time to raise your concerns in an empathetic way can pave a path to solving the issue. When an employee feels that their problems are recognized, they'll feel empowered to work alongside you to find a solution.
Wellness programs and mental health support arrangements are excellent ways to show employees you value their wellbeing. Taking these fundamental steps will aid you in retaining more experienced professionals and preventing premature retirement.
2. Make Knowledge Transferal a Priority
Are you familiar with the unique, valuable skills your long-serving employees have accumulated through their years of experience? If not, you’re not alone. But a lack of understanding could be harming your business.
To counteract the 'brain drain' caused by The Great Retirement, it's important to facilitate the knowledge transfer process in your organization.
Encouraging near-retirement employees to pass their wisdom down to the younger workforce offers benefits on both sides of the equation.
On the one hand, it reduces the knowledge gap between seasoned professionals and entry-level staff members, preparing younger employees to take on additional responsibilities and get ready for promotional opportunities.
On the other, enabling your near-retirement staff to impart their knowledge shows that you respect and value their expertise and contributions to the team.
To achieve this goal, consider establishing mentorship programs to create structured pathways for knowledge exchange. Encourage regular interactions between retiring employees and their mentees to foster an environment where insights, skills, and experiences can pass seamlessly from one generation to the next.
3. The Case for Flexible Ways of Working
One of the leading causes of burnout is an inability to balance the professional and personal. More than half (55.1%) of employees considering retirement say they would continue with employment if they could work part-time.
While the younger demographic is often more than willing to put their career at the forefront, near-retirement employees seldom see the benefit of pushing for a promotion, making it more likely they'll prioritize their wellbeing when they struggle to find a work-life balance.
A part-time workforce isn’t always ideal, but it’s almost always preferable to losing seasoned professionals without a backup plan in place.
By allowing older employees to transition to a more flexible schedule, you delay the loss of highly skilled workers in strategically important positions. This gives you more time to prepare for the road ahead.
When you delay retirements through flexible work offerings, you give yourself additional time to facilitate mentorship programs, allowing you to better prepare the next generation of your workforce.
4. Empathy Goes a Long Way
Retirement is never a decision that comes lightly, especially for highly skilled employees who have spent years in a specialized role. The possibility of significant change almost always brings conflicting emotions.
Showing that you understand an employee’s situation and care about their wellbeing proves how much you value them. It also opens the door for authentic discussions, allowing you to plan ahead to ensure you're prepared for whatever the future holds.
5. Recognition is a Valuable Commodity
Recognition is much more meaningful than promotion for those who are nearing the end of their working days. A vast number of employees with a retirement plan in place feel as though new opportunities are no longer an option. Changing this narrative can do wonders for morale.
By celebrating accomplishments, you reinvigorate the motivation that may be lacking for some older employees. You may also opt to engage your older workforce by leveraging their experience on a major project, having them mentor a junior colleague, or asking for their valued input on key decisions.
Aside from showing your older staff that you value them, providing recognition for expertise can help to mitigate the feelings of 'coasting along' that many near-retirement employees experience as they near the end of their careers.
6. Plan for change
Despite your best efforts, cultural shifts such as The Great Retirement are often unavoidable.
As a leader, the single most valuable asset you can possess during periods of change is strategic planning. It’s essential that you:
· Take the time to understand the core demographics that comprise your workforce.
· Talk with your employees to gauge their plans.
· Assess the skills that your skilled near-retirement employees possess.
· Create a plan delineating how best to transfer knowledge to your younger staff.
· Support your near-retirement employees in taking their next steps.
With a robust strategy in place, you'll be more prepared to deal with all of the challenges posed by The Great Retirement and better equipped to handle the future employment landscape with confidence.
At Cenera, we’ve been helping organizations create positive working environments for over two decades. We can help you build the skills you need to manage your workforce, retain top employees, plan for change, and prepare for the future. If you’re in the midst of managing Canada’s Great Retirement, give us a call!
