Human resources professionals across the nation face major challenges as employees retire in record numbers. Within the next two years, every tenth worker is set to retire in businesses across the nation and many businesses admit they aren’t prepared. Complicating matters is the fact that many businesses decided to reduce staff during the recent recession, leaving workforces short-staffed as the economy picks back up.
In recent years, each HR agent has been tasked with finding ways to transfer knowledge from one generation to the next. Instead of retiring and never coming back, valued employees can often serve in the role of a subcontractor. This allows them to remain on the payroll without being on staff full-time. Serving as a 1099 employee can also provide validation to these longtime team members that their experience and knowledge is valuable to the organization as a whole.
Recruitment and Retention
As businesses move out of “scale-down mode” and begin realizing the need to increase staff, HR departments will be tasked with aggressively recruiting top talent and improving retention rates. No longer are HR professionals tasked solely with payrolling and handling paperwork to satisfy IRS requirements. It’s important as HR professionals replace exiting employees that they avoid misclassification in an effort to fill positions. Professional networking for referrals will be more important than ever.
With more baby boomers expected to retire in the next couple of years, businesses should make each employee’s retirement contingent on that person training his or her replacement. While this stipulation isn’t enforceable, many boomers will be more than happy to help the next generation of workers. The baby boomers are known for being a generation of workers who took pride in doing a good job and are glad to have information that an organization considers valuable.