Phased Retirement Programs: Exploring the IssuesHR Resource
March 15, 2013 — 2,375 views
An aging workforce can pose a lot of problems to the employers, as they have to look into a lot of needs of their aged employees. In the US, reports suggest that many employers have introduced new polices to deal with the problems of an aging workforce, and many companies have found that phased retirement programs are a good solution to these problems.
Problems Related to an Aging Workforce
Many organizations have found that an aging workforce is often susceptible to lack of interest. Employees who have been working with a company for more than 15 years don't feel motivated enough to complete their tasks, as they don't find them challenging. Even though, their experience helps them in completing their tasks on time, their lack of interest refrains them from experimenting and improving their skills at a task.
Another major problem associated with an aging workforce is the health component. Elderly people suffer from more health related issues, and as a result they need to take more leaves during their working days. Furthermore, a company that has a large portion of elderly employees needs to update its medical facilities and policies repeatedly, so they spend a lot of their revenue in improving their medical benefits.
Phase Retirement Programs – The Solution to Problems Related to an Aging Workforce
Over the years, many employers and HR departments have found that phased retirement programs are a good solution to deal with the problems of an aging workforce. Employers feel that a phased retirement helps an employee become mentally prepared for his or her actual retirement, and motivates them to take part in the activities of the company. When an employee knows that he or she is going to retire soon, they take part in all the company activities with enthusiasm, as they want to leave the company on a good note.
Furthermore, during a phased retirement, the employers get enough time to replace the retiring employee with a suitable candidate. As a matter of fact, they can hire a new employee and make him or her assist the retiring employee to ensure that he or she learns all the tasks. This helps the company to save up on training costs.
A Good Solution for the Employees
Experts feel that a phased retirement is a good option for the employees as well, since they get many employee benefits during this period. A phased retirement gives an employee enough time to adjust to the fact that he/she is becoming retired, so the employee is not shocked over his or her retirement, and he/she can plan his/her retirement in an organized manner.
This feature also gives the employees an opportunity to explore their options. As a matter of fact, reports suggest that many employees take up part time jobs during their phased retirement period to try and figure out what they would like to do after their retirement. This makes the retirement process less stressful for the employees, and in some cases it encourages them to pursue their passions as well.