Posted on October 16, 2016

When might a brick be more valuable than a gold watch?  Read on.

According to workers approaching retirement and those who have already crossed the threshold into that next chapter, many organizations have been largely remiss in truly honoring the contributions of its long-term employees.  As we discussed last Monday, a party, several speeches and a gift won’t likely cut it.  Especially when accompanied by:

• Being omitted from key business discussions and decisions soon after the announcement of retirement
• Insufficient involvement of those approaching retirement in planning for their replacement
• A belief imparted by the organization that replacing the retiring individual is a simple matter of recruitment
• A lack of meaningful gratitude for the sacrifices, commitment and contributions those approaching retirement have made to the organization, and
• No invitation to remain involved in the organization after retirement.

The result?  First and most obviously, the loss of institutional knowledge, the loss of expertise and the loss of passion that helped contribute to the organization’s success.

Second, a resentment that is often spread to those who remain and, equally damaging, a negativity communicated to people outside of the organization.  The loss of knowledge, expertise and passion undermines any attempts that have been made to create and sustain an ever-so-important culture of valuing employees.  Resentment has the potential to affect the organization’s ‘employer brand,’ so essential to recruiting top talent, as well as the productivity and commitment of remaining employees.

Overlooked before retirement and forgotten afterward.  Could make someone question whether it was all worth it.

Even if you don’t subscribe to the power of emotion to drive outstanding business performance, consider the impact of losing institutional knowledge and expertise.  Our research indicates that both can have profound, negative effects on a business.  Importantly, both are fully preventable.

So, what’s an organization to do? Seriously consider:

1. Assessing the views and experiences of those approaching retirement and those who have recently retired.  This research is invaluable in revealing the extent to which an organization is perceived to value its long-term employees and its retirees.  It has the added value of demonstrating an organization’s interest in its retirees.
2. Building a program to prepare individuals for retirement, something that goes well beyond typical financial planning and explores possibilities in ‘The Next Chapter.’
3. Developing a way to truly honor retirees.  Something that demonstrates in a heartfelt way that the individual is, and will always be, part of the foundation, the backbone, of the organization.  A gold watch alone won’t do the trick.  Interestingly, an inscribed brick laid in a wall or walkway has far more power and impact, as it suggests that the honoree helped build the organization and will not be forgotten – two things incredibly important to many retirees.
4. Creating meaningful ways to include retirees in the business beyond a quarterly retiree newsletter.  Possibilities include: mentoring new hires, speaking in training courses, assisting in recruiting efforts, supporting outreach programs, providing input to efforts to improve processes the individual had once been a part of.  Anything to keep retirees involved.

Two things to remember:

1. How individuals are treated pre- and post-retirement is a key to short- and long-term business performance, and
2. The negative effects often experienced by those who have given their all to your organization are fully preventable.

Time’s up for us, but hopefully not for your retirees.  See you next week when we broach the topic of Millennials.