When we talk about the Future of Work, it’s often in the context of how the workforce will adapt to changing technologies and enterprise dynamics. Much of the focus is on attracting, hiring, and then retaining the right candidates for the right roles from a tight and competitive talent pool. But what about the talent that’s been with the organization for several years, if not decades? It may be true that employees within this segment are closing in on exiting the workforce, but it doesn’t mean many are following this traditional trajectory. Quite the opposite. More senior workers are choosing “flextirement” as a preferred option over the immediate workforce withdrawal known as retirement.
Age Is Just a Number
This pivot brings benefits to both individuals and enterprises that can strengthen and support talent strategies. Research from Mercer, a financial services firm, states that between 2015 and 2050, the global population of people 60 years old or older will double. And with growing life expectancy, it presents circumstances (e.g., financial considerations, desire to contribute, etc.) where more seasoned workers will remain in the workforce.
According to Mercer’s Global Talent Trends report, the data indicates that only 16 percent (a decline of 9% from three years ago) plan to stop working entirely following retirement. With 84% anticipating a continued role in the workforce, enterprises are devising options to meet those expectations. The report data highlights the three most popular options:
- Enabling employees to adapt their retirement benefits to meet different personal circumstances (39%)
- Proactively offering older workers different employment options like project-based roles, gig, etc. (38%)
- Offering part-time, flexible, or phased retirement choices (36%).
Such a shifting workforce dynamic is a gateway to diversity, equity, and inclusion (DE&I) programs and initiatives that involve all employees.
DE&I Use Case
Flextirement is a prime example of a DE&I initiative with positive results in the workplace. In his article for Fast Company, Neil Costa, founder and CEO of HireClix, points out the opportunity for enterprises to retain seasoned professionals not only to close knowledge gaps but empower the next generation of leaders. However, an inclusive environment is critical to delivering on those expectations.
“While you might not have any control over their opinion of their career to this point, you do have a say in the values, ethics, and culture your company displays to make these employees feel supported,” wrote Costa.
Individual and Enterprise ROI
With that support, individuals, regardless of generation, can benefit from flextirement programs and deliver a substantial ROI to the enterprise. The following provides the value flextirement can bring to individuals and organizations.
Individual Advantages
- First and foremost, flextirement provides an enhanced work-life balance where seasoned professionals can enjoy greater freedom in their personal lives with fewer hours and flexible schedules. While not fully retired, senior employees have the support of the organization and their colleagues, leading to greater overall well-being.
- Remaining with an organization as they transition gradually into retirement provides senior employees with a continued sense of purpose. Ideally, a flextirement program details the same responsibilities and expectations as any role in the enterprise. Whether it’s specific projects coupled with mentoring or coaching opportunities or other roles, such a program must be approached with intent and purpose.
- Often, a flextirement agreement includes fewer hours as well as a salary adjustment reflecting the change in employment status. However, supplementing a work salary with retirement income contributes to financial security.
Enterprise Advantages
- Retention of experienced employees is valuable to organizations that often face substantial knowledge gaps due to turnover and retirements. Maintaining business continuity and stability through flextirement can mitigate potential skills shortages and allow for necessary succession planning.
- More enterprises are using solutions for greater operational efficiency and productivity. Flextirement complements those efforts with a proactive approach to flexible scheduling and strategic resource allocation. It ensures that seasoned professionals are available during critical times for their knowledge and expertise.
- Organizations should be actively utilizing senior employees in flextirement roles as mentors and coaches to transfer essential process and procedural knowledge to younger workers. Flextirement should be promoted as a workforce learning and development program where generational diversity and collaboration are embraced. Too often, a lack of a knowledge management program leads to productivity losses and operational risks.
As the benefits illustrate, flextirement blends years of knowledge with the evolving workplace. Costa sums up flextirement well: “The concept is representative of where the future of work is headed as it allows the necessary flexibility to prioritize the important things in life, like family, health, and travel, while also allowing skilled workers to continue delivering in the capacity that suits them.”
