There’s going to be a lot of debate in the next few years about easing — or forcing — older workers out of their jobs. A recent New York Times article focused on this problem. But dealing with the departure of aging workers is not that simple, or draconian. In reality, leaders face four distinct scenarios when it comes to handling veteran employees. Each situation calls for very different tactics to create a positive outcome. Which scenario are you facing with individual employees?
Are you dealing with a Betty White, who speeds past normal retirement age, keeps performing at a high level and is fun to have around? Or do you have an Oprah Winfrey on your hands, a star whose departure will seriously hurt company revenues or increase costs? Unfortunately, many veteran employees today are viewed like aging NFL quarterback Brett Favre. Only the organization seems to know his best days are behind him, but who’s going to break the news. And then there are the Johnny Carsons, who know when it’s time to move on, and everybody is happy about the transition. As a leader, you will have to deal with all four types of employees approaching retirement. Do you know how you should be handling these transitions differently?
A. “Betty White: the Old Pro Who Just Keeps Going” – Since the recent recession, more older workers are choosing to keep working beyond retirement and, in some cases, organizations are anxious to have them stay. Welders, nurse managers, and systems engineers are roles that are often hard to fill today, so employers are glad when these skilled veterans stay on. But don’t be lulled into a false sense of security in this scenario. Even Betty White won’t keep doing movies and sitcoms forever. What is your longer-term transition plan for those retirement-eligible employees who remain highly productive? Will their successors be ready to step in when these old pros finally do walk away?
B. “Oprah Winfrey: The Star Whose Shoes Can’t Be Filled” — Sometimes highly productive older workers call it quits, deciding to go on to do something else, even though the company is anxious to keep them on the job. Like Oprah, stars that do leave can be critical to future profitability and performance. Of course, some capabilities and charisma are simply not transferrable. But, where practical, make sure you’re developing an aggressive knowledge retention plan for transferring key capabilities of these essential employees. An excellent tool for this is the Skill Development Plan, which we describe in detail in our new book The Executive Guide to High-Impact Talent Management.
C. “Brett Favre: Breaking Up is Hard to Do” — There can be a host of reasons why managers want older workers to leave — declining productivity, unwillingness to adapt to new technologies, major budget cuts, or suitable replacements available who are younger and cheaper. Like the pro quarterback who doesn’t want to call it quits, this scenario is becoming much more common. That’s because more healthy, older workers with inadequate retirement resources are looking to extend their careers. We don’t want to sugarcoat this category. It can be emotional and painful for both sides. We’re coaching clients on how to resolve these difficult situations fairly and legally, since they will be more frequent in the years ahead.
D. “Johnny Carson: The Retiree Who Believed Timing Was Everything” — Often both you and your employee will agree that it’s time to go, or the structure of the organization’s pension plan makes it inevitable. But even when everyone agrees about the timing of an individual’s departure, don’t overlook opportunities to facilitate knowledge transfer to a successor. Sometimes that can be something as simple as asking the retiring employee to be available by phone or email to answer quick questions from his or her successor. It’s amazing how many organizations can see key retirements coming and still take no productive steps to transfer knowledge needed to sustain performance.
You’ll be faced with plenty of Bettys, Oprahs, and Bretts in the years ahead. Some situations will require particularly creative solutions, while others will take courage and finesse. How you handle these transitions will have a big impact on productivity. Because, regardless of the approach needed, the rest of your workforce will be watching.