HR for Business: Preparing employees for retirement | Loop Jamaica

The content originally appeared on: Jamaica News | Loop News

After several years in the workforce, many employees look forward to retirement. However, there are many others who fear this next phase of life.

In several instances, employees indicate that they are unprepared for retirement and need help with retirement preparations. Though it is critical to prepare the organisation for the employees’ eventual departure (to ensure that business operations aren’t affected), it is also important to help your employees to prepare.

As employers, you can help reduce the fear and uncertainty surrounding retirement and help your employees to have a positive experience by supporting them during the process. There are a few things you can do to help.

Communicate with your employees about their upcoming retirement. This can include discussions about things like when they are expected to retire, financial planning, succession planning, and discussions about benefits that will be available to them after retirement. It’s important to note that communication is not ‘one-size fits all.’ The things you discuss should be customised- areas that you will address for employees who will retire within twelve months will be different than what is discussed with an employee who will retire within two years.

Offer Financial Planning. For several persons, retirement will mean the loss of a fixed income. Provide financial planning for your employees. These meetings can educate employees about savings, investments, pension benefits, tax considerations, long term goals etc.

Phased/ Flexible Transition. Where possible, offer employees the opportunity to gradually transition into retirement. For instance, employees can be allowed to work part-time and/ or for reduced hours each day. This helps the employee to continue earning until they stop working completely.

Mentorship. Provide employees with opportunities to mentor younger workers. Your employees have a significant amount of knowledge and experience, and several employees want to mentor and share their knowledge before leaving the workforce.

Additionally, provide employees with opportunities for reverse mentoring, where younger employees train and mentor older workers.

Reverse mentoring can be particularly beneficial for employees considering working after retirement and want to acquire (or enhance) skills in a particular area. As with all life changes, preparation and planning can make the process less stressful retirement is no different.

Helping to prepare your employees for retirement facilitates a smooth transition for the business and the employee. With preparation and support, you can help your employees to look forward to and enjoy retirement.

Malaika T. Edwards, PhD provides HR Advisory services to business and individual clients. She is also an academic in the Higher Education landscape. You can contact her by email at [email protected] She may also be contacted on LinkedIn at www.linkedin.com/in/malaika-edwards or on Instagram @drmalaika.edwards.