If you run an organization, you probably have employees retiring every year. These employees work in your organization for years and start a new phase of life with retirement. It’s a significant change that doesn’t come easily for them and sometimes needs preparations for months.
As an employer, you can help them transition into their new life with just a few simple steps. Let’s take a look.
Prepare a Succession Plan
Preparing a succession plan means handing over the duties of a retiree to the next employee in line. It helps prevent any delays or blockages in the organizational process when an employee retires. Start preparing the plan by listing down the duties of the retiree. The position usually goes to the subordinate of the retiree.
However, you can hire a more qualified candidate from outside the organization based on your needs.
Try to hold a knowledge transfer a few months before the last day of the retiring employee. It ensures zero loss of knowledge. The retiree can observe and assess the transition and provide feedback before he exits the company.
Arrange a Retirement Plan
A retirement plan is usually the main source of earnings for a retiree. Having a good retirement package is beneficial to your employees, and attracts top talents during interviews.
The 401(k) and 403(b) plans are popular among employees alongside company stock and profit-sharing options. However, you can decide on the retirement plan based on the company policies and employee eligibility.
Try to educate them on the retirement packages if they seem unsure about them. The packages are usually beneficial and can help them with a smooth transition into the new phase of their life. So, offering good packages will also increase their loyalty to your organization.
Recognize Employee Efforts
Many of your retiring employees will have excellent records and lists of achievements. Recognizing them will motivate everyone in the organization to work harder. Even if you have regular appraisals, you should have a separate program that identifies and awards senior and retiring employees for their exceptional contributions to the growth of your organization. Giving them lifetime contribution awards can end their career on a positive note.
These retirement awards might appear as small gifts. But they mean much more to the employee who has worked for many years in your organization. A customized award or plaque will make them feel appreciated, and they can preserve it as a token of gratitude from your company.
Help Them with a Financial Plan
Every employee has a financial goal, and they begin saving for their retirement five to ten years before the estimated date. It’s a great way to save a significant amount for retirement.
But how can they decide how much to save? They can set a target amount and deduct estimated expenses to calculate how much to save. They can also invest in stocks and businesses to increase their net worth.
But how can you help them as their employer? You can hold information sessions on financial planning or appoint a financial advisor to direct them to the right path.
Educate about Partial Retirement
Many retirees can choose to stay employed even after retirement due to financial setbacks. Some of them do it to stay productive. You can ask them for their preferences because your organization can benefit from retaining these retirees.
As they have known your organization for many years, they can stay back as a part-timer, or assist various departments in specific projects.
As an employer, you can offer them flexible work timings and arrange special training for them if required. You can also have them coach your young employees.
Provide Access to Retirement Resources
Retirement is not only about savings but also about using that money wisely, choosing an investment program, multiplying that amount, or even opening a new business to earn profit. Many retirees relocate and start a new life. They also need to consider their health and ensure safety and access to healthcare.
All these need careful planning and direction, and many employees don’t know where to start.
As an employer, you can provide retirement planning resources to help them make informed decisions. You can introduce a program targeting employees retiring in five years and provide them with online retirement calculators, investment guides, retirement planning seminars, and access to financial advisors or counselors and other necessary resources.
Arrange healthcare workshops
You can arrange a healthcare workshop alongside a financial advisor if you can’t afford a complete retirement planning program. Employees can learn about Medicare, supplemental insurance, and other healthcare coverage options. Retirees can understand how to access safe and quick healthcare options during their retirement. They can ask questions during the workshop and address their concerns. It can help them make informed decisions about their healthcare packages.
Retirement is considered the golden period in an employee’s life. Having access to the necessary knowledge can help them immensely. As an employer, you can help with their smooth transition into their new life by following the above-mentioned steps.