How to Encourage an Employee to Retire?

The job market is simply catastrophic, from ghost listings to Gen Z recording themselves in uniform to post their grievances or do TikTok challenges to win $10,000 from rappers such as Latto.

Not only that, but according to a study conducted by Robert J. Shapiro, “55% of Peak Boomers say they will retire in the next five years, but the actual number will be substantially higher because people tend to retire a couple of years sooner than planned, either due to illness, an unexpected change in the job including layoffs, or simply a change of mind on when to stop working.”

We couple that with the fact that some jobs are just looking to replace their workers, with RTO mandates being used as a way to force workers back into the office or to resign. If they choose not to resign, companies can simply let them go. But what about those employees who you want to go, and they simply won’t leave or retire? It’s not uncommon for business owners to keep an employee on payroll due to loyalty rather than skill.

But for many of us, this can be problematic because a person who has worked for a company for ten years may no longer qualify for their role and should either retire or resign. A common practice taking place now—especially in retail or customer service industries—is constructive discharge. Employees who are not interested in leaving on their own or resigning are finding it harder to work because they are constantly being placed on a performance plan, which will inevitably lead to them either quitting or getting laid off.

In order for the workforce to regulate itself, older employees will need to retire and be replaced with adequate staff members, but now that we are in an employer market, employers have the power to pay less and still receive a number of qualified, and in some cases, overqualified candidates.

EMPLOYERS NEEDING EMPLOYEES TO RETIRE:

The last thing you want to do is pressure your employee to quit their job or engage in a game of constructive discharge; this will more often than not result in a lawsuit that you will not win. Instead, if there is an employee giving you grief or you just want them replaced, then consider openly communicating this to them and offering to assist them with counseling expenses.

Sometimes the main reason an employee will stay at their job is due to their loyalty to an employer. Maybe when you hired them, they were at a very low point in their lives, and thanks to you, they’ve since been able to travel, afford their home, and much more. It’s okay to schedule a private meeting where you’re discussing their career trajectory and future plans you have for your company. Provide resources and access to financial advisors if needed to help them see that the transition can be smooth.

Next, look into offering them retirement incentives such as a financial package, bonuses, or extended health benefits for retiring early. These incentives can be presented in a way that enhances the retirement lifestyle, making sure to outline that leaving the company can open them up to more time with family, hobbies, and even traveling. The period from working since the age of fifteen for many to sixty-five or even seventy can feel like a traumatic experience when forced to let go.

Not everyone welcomes change because, for many, it’s viewed as failure, and oftentimes they may begin to feel like they no longer have a purpose. But you should do your best to emphasize how this plan can help them maintain social connections and stay engaged in their field. With the economy as bad as it is right now, it’s no surprise that more people are holding onto their jobs, even those who reside in Section 8 housing. However, the downside to this is that the younger generation are having to do without these resources, but they are also having a hard time landing themselves in a quality job or career.

Sadly, there are some Gen Zs and millennials who refuse to work as direct care staff members in group homes where the majority of workers are, in fact, Boomers. So, herein lies another problem. Many people are being picky with the type of work they are willing to do, which is also causing a major problem in the job market. Thus, these jobs aren’t really pressuring their staff to retire, but it is a cause for concern that once they do, these jobs will either become obsolete or the funding will be lowered.

In which case, many families who have developmentally disabled children at home will either have to keep them there or spend more money to get them the proper health care they need around the clock. Now is not the time to laser-focus on groups, but rather on the population as a whole, and perhaps consider that this is why the Biden Administration was so lenient with opening the borders and allowing migrants into the country. These jobs are flooded by migrants—construction, group home, house cleaning, and more. There are just some jobs Americans won’t do, believing themselves to be too good for them. But make no mistake, no one is too good to earn a paycheck.

Dealing with an employee who does not want to retire can either be seen as a gift or a curse, depending on the industry. Either way, if Gen Zs don’t start to change their outlook on the job market—whether that’s demanding to work from home, higher pay, or just refusing certain jobs altogether—then maybe there’s a cause to worry for 55% of the Peak Boomers looking to exit the workforce soon. And for those who aren’t ready just yet, maybe we shouldn’t rush them.

by Riley Cook