As many companies continue to face challenges in hiring and retaining well-trained employees, offering semi-retirement as an alternative to older employees who are considering leaving could be an attractive option for some.
A recent survey of HR professionals and other executives, conducted by The Harris Poll on behalf of Oklahoma City’s Express Employment Professionals, found that some companies have been successful in keeping employees on board by allowing them to reduce their hours, work more often or to work exclusively from home in order to take on advisory functions or otherwise gradually relieve oneself of daily work.
With employees retiring, who account for a full 28% of office departures, offering part-time retirement could be a strategy to maintain productivity, the survey found.
“With employee turnover showing no signs of slowing, offering older workers the option to defer full retirement may help slow attrition,” Express said in a press release.
Around 30% of HR professionals and other respondents indicated that their companies already offer semi-retirement as an option for employees.
The employees generally welcome the idea. Nearly three in five hiring managers said the number of employees choosing to retire has remained constant since their companies first offered the option. nearly two in five said their number of semi-retired workers has increased.
Reggie Kaji, an Express franchise owner in Michigan, said he’s witnessed such a surge. He theorized that some older workers would prefer to retire more slowly than others, but others would choose the semi-retirement option more for economic reasons. Due to the uncertainty of the current economy, some may choose to extend career tenure to hedge against dwindling retirement funds.
Jon Noceda, an Express franchise owner in California, said such moves could benefit older professionals as well as employers.
“Having someone in a semi-retirement position could benefit a company because of their experience and business knowledge,” he said. “It’s a huge benefit for workers and employers.”
Bill Stoll, CEO of Express Employment International, said labor shortages are only expected to get worse as baby boomers age and consider retirement.
“Semi-retirement is a solution to give experienced employees time to train their successors, ensuring seamless knowledge transfer and business continuity,” he said.