Don’t be blindsided by the surging retirement wave

The workforce is facing an unexpected retirement wave. According to a recent SHRM article, there are 2.7 million more retirees in the U.S. than projected — and that number has jumped by 80% in just the last six months. For comparison, in pre-pandemic years, the U.S. often had fewer retirees than expected. The surge in retirements puts organizations at added risk of losing invaluable institutional knowledge and finding themselves shorthanded for critical roles.

The trend caught my attention because I’ve seen firsthand how challenging it can be when key employees leave abruptly with little time for succession planning. The reasons are multifaceted – improving economic factors, pandemic burnout, and return-to-office mandates pushing some over the edge. But the result is the same: companies are scrambling to backfill positions and losing irreplaceable expertise.

Rather than being reactive, we need to get proactive about retaining valued employees considering retirement, even if it’s only temporary. That’s a big reason why I’m a strong proponent of flexible “step-down” arrangements and alumni networks.

Offering phased retirement options and part-time or project-based roles can be a win-win. Tenured employees can slowly make the transition to retirement while transferring mission-critical knowledge. They remain engaged while achieving better work-life balance. And you, as the employer, maintain vital capabilities while having a longer runway for succession planning.

Similarly, don’t let retirees just walk out the door. Build strong alumni networks and create opportunities for consulting projects or temporary engagements. You get to tap into their expertise when needed, and they get to dip back into work while still pursuing retirement life.

Most importantly, make mentoring and knowledge transfer a priority before they retire. Implement structured job shadowing, cross-training programs, and documentation practices. Leverage your veteran employees to upskill the next generation while their expertise is still in-house.

The retirement wave is crashing. But you can avoid being pulled under by embracing retention strategies that give your most seasoned employees flexible options to keep one foot in the workplace.