The U.S. Census Bureau says 76 million people were born in the “baby boom” years from 1946 through 1964. These boomers are now reaching retirement age at a rapid pace, but many are not retiring. In fact, many are working well past their 60s and into their 70s. Having just emerged from the Great Recession, one would think it’s financial reasons that are keeping these boomers working, but often that’s not the case. On the contrary, despite persistent high unemployment levels and the seeming availability of much cheaper, younger workers, many employers are asking their retirement-age workers to stay or consider being “on call” when needed. Why? Because the younger, cheaper resources don’t have the skills, experience, knowledge or often even the desire to do the work. 

Companies, especially those in the oil/gas, nuclear and public utility sectors, find themselves with major skill gaps and fading “tribal knowledge” as their retirees exit the marketplace. The gaps vary from manually intensive roles to high-level technical engineering roles. Some roles just do not appeal to the college student while others require years of hands-on experience, which is difficult for them to obtain in a timely fashion. As for the more manual, intensive roles, many young workers today are just not interested. With advances in technology, we find the thought of doing anything manually less appealing. It’s easy to understand why our Generation X’s and Y’s have no desire to consider hands-on labor as a career choice.

Bridging the gap. Many companies are working with their local colleges and even high schools to educate students of the opportunities that exist. Specialized programs have been designed to produce specifically skilled talent upon graduation. Organizations also utilize their marketing and HR departments at college job fairs and extend internships; but until the influx of new employees can meet their demands, they must consider other options. Utilizing a retiree/alumni program is one way to do this, but it is not easy. Bringing a previous employee back on a temporary or consulting basis can have its risks.

Inquiries from contingent workforce managers regarding retiree/alumni program best practices have spiked significantly. The risk is not only to the benefit plans but can also come from the IRS or state government  if the individual is found to be misclassified. At a minimum, corporate-defined benefit plan documents will need to be reviewed and redesigned carefully to mitigate risks with retiree/alumni in mind, as is the case with any other contingent worker classification.

Communicating opportunities for retirees is also a challenge. Social media and dedicated websites are a great way to reach this audience. Companies are creating retiree and alumni “groups” for previous employees to join.  Posting updates about the company and opportunities that they have for retired employees is part of the content. For employees that are getting ready to retire, offering them to join the group prior to leaving is also a common practice. 

All of this preparation requires a lot of time, effort and coordination, but it can be well worth it when it comes to retaining access to the talent and skills these boomers worked a lifetime to build.

Companies facing this challenge must have a specific program and methodology for re-engaging retired/alumni back into their organization. Partnering with a third-party provider that specializes in retiree/alumni programs is a great place to start. Their insight and expertise along with support from the company’s internal HR, legal and benefits groups will ensure that the program is designed with minimized risk and maximum value to the organization and the individual.