There was a recent discussion on Fox Business about raising the retirement age and the impact it might have on business. (Here’s the link – http://tinyurl.com/yetvhqr) What wasn’t included in the discussion was the impact on Corporate Knowledge. Corporate knowledge means profitability and beating the competition. But with so many Boomers retiring over the next 10 years, companies run the risk of a significant drain on this valuable resource. One solution – CONTRACTING!
When Boomers retire it creates a huge talent vacuum in the workforce. And although Boomers will retire, they don’t want to stop working entirely. In actuality, according to many studies, only a small percentage of Boomers (less than 20%) hope to never work again and a certain percentage even envisions the need to work full-time. So that opens the doors for part-time work and/or cycles of work and leisure. Companies can still access their corporate knowledge and skills through consulting relationships and contract projects.
This is also attractive to Boomers in that many are limited in their ability to relocate and are pressured to provide for their children or elderly parents. Some other important factors include the following:
1. Money—The ability to financially supplement a retirement plan or Social Security income is an important factor. Contractors are paid for every hour they work, and they are often paid at a very acceptable rate because of their experience and knowledge.
2. Flexibility—Flexibility is critical to these Baby Boomers, and contract staffing offers that option. They can set their own schedules, work as many or as few hours as they like, take the summer off or time at Christmas, arrange for job sharing, etc. The decision can be made based upon their own unique situations at home.
3. Health Care—Another consideration is health insurance. Although Boomers are healthier than they used to be, certain chronic conditions become more common and usually grow worse with age. And we all know that Americans are living longer than they used to.
What do companies say?
Studies show that older employees tend to be more loyal, detail-oriented, and reliable than younger people. In many cases, Baby Boomers provide a competitive edge because they already have a required skill or knowledge base to handle a specific task or project. Many companies actually try to recruit Boomers and retirees back into the workforce. They have the experience and expertise the client needs, plus if he/she is a retiree, they’re familiar with the company’s operation guidelines, internal procedures, etc.
Contract staffing is an excellent alternative for both the Boomers and companies.