How to Manage People's Retirement

Retirement is a major life event, but it can prompt conflicting emotions.

Some people can't wait to retire. For them, it can mean spending more time with their family, working on their hobby, sleeping in, travel.

But for others, it means taking a scary and unpredictable leap into the unknown. It might result in their income dropping. Or, they might love what they do, and fear that retiring will rob them of purpose. Perhaps they feel forced into it because a family member is ill, or because they are legally obliged to do so.

More people than ever before are expected to retire in the next few years. [1] So it's essential that you know how to confidently guide older members of your team through the twilight of their careers.

In this article, we explore eight steps for managing a team member's retirement, and how to handle the impact on your team.

How to Manage a Team Member's Retirement

Managing a team member's retirement can be tricky, particularly if you're unsure whether they are looking forward to it or dreading it.

The following eight steps can help you to manage it sensitively and effectively:

1. Start a Conversation

Before you start planning a team member's retirement, talk to them. It's best to have this conversation well ahead of time (some experts suggest five to 10 years before expected retirement).

Avoid asking them direct questions or using the term "retirement" unless they've already brought it up themselves. Otherwise you may fall foul of age discrimination legislation.

Instead, ask open questions about their aspirations. This will help you to broach the subject sensitively. A good starting point is to ask them where they see themselves in the short, medium and long term.

You could even make these discussions part of your formal appraisal process. This way they won't feel singled out and will more likely raise the issue themselves.

2. Identify Appropriate Support

Many people struggle with the prospect of transitioning from work to retirement. [2] This is hardly surprising. After all, it's a drastic change in lifestyle, not just financially, but psychologically and emotionally, too.

For instance, it will likely mean that your retiree sees less of the people with whom they've developed strong working relationships, or even friendships. They may also worry how they will fill their days once they've retired. Perhaps work gives them purpose. It may even form part of their identity. The loss of it can therefore cause anxiety and possibly even depression.

If you suspect that a team member is apprehensive about retiring, ask your HR department for advice. It might be able to direct them to support groups or offer them some counseling. Your company may even run a retirement preparedness or employee assistance program that can help them to get ready for leaving work.

3. Keep Your Retiree Motivated

Some people "count the days" until they retire. If this is the case with your retiree, it might cause them to lose focus and motivation, and their performance may drop.

In fact, they probably just have a different set of motivators as they approach retirement. Learn what motivates them now, and keep them engaged.

An invitation to produce a "legacy" of good working practices, for instance, may be more appealing to them than a set of targets that will be fulfillled only after they're gone.

4. Start Succession Planning

You'll also need to consider the impact of your retiree's exit on the rest of the team. How will you manage their workload once they've gone? Will you delegate their tasks to other people, or will you need to recruit someone new?

Start succession planning as soon as they commit to a retirement date. Assess your team's capacity to absorb their responsibilities and plan how you'll reassign them. Then, organize a formal handover of responsibilities and schedule regular meetings with them to check the progress of the handover.

5. Capture Knowledge

Your retiring team member likely has an extensive body of knowledge and experience that will prove extremely useful to your team and your business long after they've left. It's important that you capture this!

There are two main types of knowledge that you'll want them to pass on to you or to their successor: explicit and tacit.

Explicit knowledge is obvious and easy to define. It's the tasks that they complete and the processes that they use to do so. Tacit knowledge, on the other hand, is harder to define. It's their experiences, working methods, best practices, and the creative solutions that they've refined over the years.

Use Knowledge Management strategies to capture both types of knowledge. You could, for example, conduct recorded interviews with them, or partner them with a colleague who can "shadow" them in the weeks or months leading up to their retirement.

Alternatively, ask them to write a "legacy document" that covers the different aspects of their role, the best practices that they use, and some "tips and tricks" for their replacement. Legacy documents can be genuinely useful. They provide successors with a blueprint for the role that they will be taking on, and enable retirees to reflect on and be proud of all that they've achieved.

6. Ask Your Retiree to Consider Mentoring

Many large companies ask retiring workers to volunteer as mentors or coaches to their replacements. Retirees are often open to this because it demonstrates that the organization values their wisdom and their years of service. They also gain the personal satisfaction of helping to develop a colleague's skills and knowledge.

Ideally, the mentoring arrangement should begin before the retirement date, but it can continue afterward, assuming that the retiree is willing to take part.

7. Explore Opportunities to "Stay On"

Many older workers naturally feel tired and "ready for a change" before they retire, but that may not mean that they want to sever all ties to their job, particularly if they've worked in a company for a long time.

Ease your team member into retirement by offering them flexible, part-time work or a working from home arrangement.

Alternatively, they could stay on but in a slightly different role. For example, if they began their career on the shop floor before working their way up to middle management, they might consider going back to customer service for a year or two. This would give them fewer responsibilities and less stress, and give you more time to soak up their valuable knowledge.

8. Celebrate Your Retiree's Achievements!

When their last day finally comes around, take the time to celebrate their accomplishments.

Tailor your celebrations to suit their personality. Some people don't like a big fuss and may prefer to keep it small. Respect their wishes, but be sure to say a few words that express your gratitude for their work and acknowledge all that they've achieved during their career.

To prepare, go over the projects that they've worked on. What were the positive impacts on the organization? How have they helped their colleagues out? And what have you learned about them over the years? Creating a positive narrative like this can help you to establish a strong sense of legacy. It'll also ensure that they leave on a high note.