Retirement can be a daunting process for both an employee and their team who wave goodbye to a talented colleague. Graeme Menzies and Sarah Harrison outline why retirement or ‘encore’ coaching may enable a smooth transition.
The retirement landscape has changed radically in the past 20 years. We are living longer and ageing better, which means many people will still have 30 active years ahead of them at 60.
Research shows us what we need to have to age well: meaning and purpose, social connections, the structure of a routine and remaining mentally and physically active. As work gives us so many of these ingredients, it’s no wonder that more people are opting out of traditional retirement.
Many people approaching retirement worry about finances and what life will be like, often asking themselves: “What will be my sense of identity if I stop working?”; “Where will I get my purpose?”; “If I continue working, how can I ask for flexibility to care for parents and grandchildren?” and “What are my employer’s expectations of me as I approach retirement?”
These fears and a general sense of uncertainty can have a detrimental effect on employees’ wellbeing. According to Forbes, the two most dangerous years of our lives are when we are born and when we retire, and one third of retirees will experience depression.
It’s unsurprising that rather than the traditional retirement model of suddenly stopping work, many people are looking for a career ‘encore’ or a portfolio of projects which require a more carefully planned and considered transition.
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Creating a successful encore requires collaboration with the employer. This can help to overcome managers’ concerns such as: “How do we raise the sensitive subject of retirement without sounding ageist?”; “What if this employee suddenly decides to retire with no warning – how can we plan for their succession?”; “How do we plan budgets when older workers are often the highest earners, so their retirement decisions have a significant impact?”; How do we make things fair for everyone?”.
What can HR do?
If your organisation doesn’t have a retirement support strategy in place already, develop one and communicate it regularly across the organisation. It’s important that older workers are celebrated and retirement is seen as a supported and positive experience. Making support available will open up the retirement conversation, and so alleviate uncertainty and the feeling of being ‘in the dark’ about plans and expectations for both the employer and individual.
Drawing on our many discussions with employers about what works for them, we believe a good support strategy needs to include three key things: one-to-one retirement or encore coaching for those that want it; interactive workshops on preparing for retirement or encore, and plenty of content and exercises on your intranet for people to access relevant, self-paced learning. These elements provide a relatively straightforward strategy to address a difficult challenge. Bringing in external coaches and consultants to deliver these interventions can relieve any awkwardness people may feel about talking through their fears and plans.
The benefits of coaching
Retirement or encore coaching helps employees feel listened to and supported by their employer. It enables them to work out what they want to take forward and leave behind; to align their plans with their values; set realistic goals for the next stage of their lives, and create a long-term plan. Importantly, it enables them to own the narrative of their retirement or encore and engage with their employer about their future needs and plans.
The benefits for the employer include: achieving certainty, demonstrating an inclusive and supportive environment, preserving goodwill, creating ‘good leavers’ and brand ambassadors, and agreeing succession planning. Employers who remain open and flexible to different options will help create successful encores and change perceptions of retirement.
Employers who remain open and flexible to different options will help create successful encores and change perceptions of retirement.”
More than an HR issue
In recognising and responding to the needs of older people, firms are tackling more than an HR issue.
Older workers are finally taking the spotlight under the diversity, equity and inclusion banner. A recent CBI webinar discussed creative diversity and inclusion strategies firms can use to mitigate recruitment challenges. Much of the discussion focused on attracting older workers to help solve the labour shortage. Ageism in the workplace was cited as an area of discrimination that is still alive and well.
Research carried out by 55/Redefined, in partnership with ProAge, highlighted that 39% of employers are less likely to recruit people over the age of 50 and only 35% of employers are prepared to invest in retraining over 50s, despite 92% of people in their mid-50s being willing to take a salary cut to retrain in their career. Outdated perceptions of older workers are sliding under employers’ DE&I radar and are in urgent need of change.
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By offering retirement or encore coaching, organisations can show how valued this demographic of the workforce is. People approaching retirement have years of experience behind them and vital skills and knowledge that will continue to benefit your organisation if passed on to younger workers. Supporting them to make this transition will not only help ensure that the retiree leaves on a good note, but will also benefit your employer brand.
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