The population is aging and so is the workplace potentially leaving employers with a skills and knowledge shortage. ‘Brain drain’ occurs when experienced employees exit the workforce, leaving a knowledge void behind.
To ward off ‘brain drain’ employers may consider offering Flexible Retirement, a work arrangement which allows older employees to keep working but on a shorter work week.
Another option is Phased Retirement, a form of flexible retirement, in which older workers’ hours are reduced over time until they reach full retirement.
One drawback to “flexible retirement” and “phased retirement” is that both can keep younger workers looking to enter the workforce out of jobs that older workers occupy. Also, some employers prefer to higher young workers because older workers tend to have higher medical costs and often require higher salaries due to experience.
Employers must balance the need for knowledgeable mentors with cost-saving retirement initiatives as well as avoiding violating any Age Discrimination Acts.
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