Chances are, you’re already seeing a steady exodus of retirement-bound workers. After all, 10,000 Baby Boomers turn 65 every day—and after decades in the workplace, they’ve certainly earned it. But if you’re not careful, much of your company’s institutional knowledge may walk out the door with them.
It’s a phenomenon known as Baby Boomer Brain Drain: the loss of knowledge, skills, and expertise that occurs when veteran employees exchange their office chairs for easy chairs. It’s why you need a succession plan. Learn how to create one—or supercharge the one you already have.
According to the most-recent U.S. census, 73 million Baby Boomers—those born between 1946-1964— live in the United States. The first wave turned 65 in 2011. By 2030, the entire generation will be 65 or older. Most Boomers will either be retired or headed in that direction.
In the U.S., the average retirement age is 64, although it varies, depending on factors like financial readiness, health, personal goals—even location. (In West Virginia, the average retirement age is 61; in the District of Columbia, it’s 67.) Although Americans are working longer than they did 25 years ago, the pandemic triggered an uptick in early retirements.
If you’re fortunate, your employees will give you advance notice as soon they decide to retire, allowing you to get your ducks in a row. But that alone is not enough. You need a plan.
Continuity and knowledge retention is essential to the future of your business. Consider this eight-step guide to help prevent brain drain and create an effective succession plan.
If you don’t already know your workforce demographics, now’s the time to take stock. Specifically, which employees—especially those in key positions—are likely to retire in the next few years? Whether they’ve said so or not?
Pay special attention to those in leadership roles, subject matter experts, and other key contributors.
Chances are, you’d like those older employees to stick around, at least until they’ve imparted their hard-earned wisdom. If that’s the case, ask the, what it would take to keep them on board.
Fact: many seniors will jump at the chance to transition to part-time employment, flexible hours or hybrid schedules. Phased retirement programs are beneficial for employees and employers, allowing everyone time to transition. Take advantage of them!