The gray tsunami, the silver tsunami, the silver way, and the gray wave. You have likely heard it called a few different names, but what exactly is it? The gray tsunami is in reference to the large population that is reaching retirement age. Baby Boomers are starting to leave the workforce. The problem? The following generation, Generation X, has the smallest amount of people in comparison to other generations. This means there will not be enough Generation X people to take on the vacancies left once the Baby Boomers retire. Millennials and Gen Z will have to step up to the plate for roles they may not have the experience for. This will lead to a talent gap in the workforce.
With the loss of the Baby Boomers in the workforce, companies will be losing industry experts carrying experience and knowledge. This also means they will no longer be available to train the upcoming generations. Organizations need to prepare to avoid talent gaps as these retirements occur.
Placing a succession plan is one way to prepare. Strategically hiring talent to replace critical roles is a proactive approach. Instead of hiring reactively after retirements, create a succession plan. Identify which roles are crucial and which are approaching vacancies due to retirements. Start hiring before retirement happens. That way, training, and preparation can come directly from the knowledge source.
Start training employees now. Not only will proactive hiring help but so will proactive training. Allow employees to start learning and taking on some of these responsibilities. Start the process of the knowledge transfer sooner rather than later.
Many Baby Boomers are choosing to continue to work even after reaching retirement age. Offer benefits or options for those choosing not to retire yet. This could be a more flexible schedule or working part-time. This could help extend the amount of time that these industry experts are willing to stick around to help with training the next generations to take on their roles.
A focus on employee retention will also be crucial. As training and preparations for retirements take place, keeping those employees should be a priority. Training and succession efforts will not be effective if employees do not stay in the organization to implement what they have been trained for. Get creative in ways to keep employees happy and satisfied in their work. This could be through offering strong compensation, good benefits, flexibility, education reimbursement, opportunities to continue education, etc.
Now is the time to act to prepare for the gray tsunami. Help lessen the sting that your organization will feel from retirement. Be proactive in preparing employees to take on those roles. Start now so that your organization has the chance to react proactively and not reactively.
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