For as long as I’ve been an entrepreneur, the baby boomer generation has been all about the coming retirement wave. We were promised a mass exodus from the workforce, a massive upheaval that would force companies to fill the gap. At Optima Office, an accounting and HR outsourcing company I founded nearly six years ago, we began preparing for the workforce change by focusing on high employee retention. We believed this could be achieved by being responsive to the needs of our employees.
After speaking with some of our baby boomer employees, I realized that many of them loved their jobs—and mentoring younger team members—so much that they didn’t want to quit at 65. This generation was led to believe that retirement was the dream they’d worked so hard for, but upon closer inspection, the stark transition from full-time work to full-time retirement felt more like a demotion than a reward.
While many companies have a rigid ladder-like path to retirement – climb the corporate ladder, reach a certain age, and then retire – this one-size-fits-all approach often leaves retirees struggling with financial worries, identity changes, and a sudden loss of purpose in life. Some forward-thinking companies are rethinking retirement with a new approach, and I decided to create an alternative option at Optima Office: flexible retirement planning.
More relaxed retirement
Flextirement is a flexible working arrangement designed to ease the transition between full-time employment and retirement through flexible working hours, reduced workload and gradual exit from the workforce. This bridging arrangement provides a stress-free transition by easing the transition to retirement by working 10, 20 or 30 hours instead of 40. Flextirees can adapt to an income shift, pursue hobbies and spend more time with loved ones, while also gradually phasing out work. For most of our Flextirees, part-time work is a privilege. For others, it can be a financial necessity. According to a Bankrate Survey56% of workers in the United States believe they are behind on their retirement savings.
For business owners like me, this has many benefits. Experienced employees can become valuable mentors to younger colleagues as they transition to a flexible work schedule. And as an outsourced staffing company, we know that finding and training replacements for experienced employees can be costly. Flexible work schedules offer a cost-effective way to attract and retain experienced employees – and their institutional knowledge.
I have always advocated a very flexible working environment, and Optima Office flexible work schedules from day one. We need highly skilled employees like CFOs, and I’ve found an incredible pool of talent nearing or coming out of retirement to work part-time. It’s important to note, however, that we not only offer a flexible workplace for our near-retirement employees, but we allow people of all ages to work the hours that make sense for them. In fact, only a dozen of our 100 employees work more than 40 hours a week, and that’s by choice.
Flextirement has had an incredibly positive impact on our team at Optima Office. These seasoned veterans, with decades of experience under their belts, didn’t have to give up completely. They were looking for balance – the intellectual stimulation of their careers without a full-time commitment. And for us as a company, the benefits have been undeniable as we have been able to reap the value of their experience and expertise.
Today, 12 of our employees have a flexible work schedule. They work between 12 and 25 hours a week, mentor junior employees and work on special projects where they can use their expertise. They can choose their own working hours and spend time with their grandchildren, but also pass on their many years of experience to companies that need them. Over and beyond In addition to technical expertise, our Flextirees bring a wealth of soft skills honed over decades of experience. They understand team dynamics, the art of negotiation and the importance of clear communication. These are invaluable lessons for our younger employees.
Our Flextirees are proven to be happier and more engaged. They have time for their personal lives, hobbies and family, but still remain connected to the work they love. This in turn fosters a company culture that prioritizes wellbeing and work-life balance. And as I mentioned, it’s not just the baby boomers who benefit from this advantage; I’ve always had our team work part-time when it fits their lifestyle, so there’s no resentment from younger employees.
Flexible working hours
To do this, you could start by offering part-time jobs to the older generation – in the areas where you need them most! This could even be positions like assistant or administrative work. Or it could be high-skilled areas like board level.
Be open-minded when speaking to candidates. Aside from flexible work arrangements, consider how many parents want a more gradual transition out of maternity/paternity leave or want to work part-time while their children are young. As a mother of a toddler, I’ve experienced this first-hand and have since made it an official policy at Optima Office to offer parents additional flexibility so they know they have our support to adjust their work schedule during the different stages of their parenthood. Many of our flexible baby boomers – who now work part-time to take a more active role in their grandchildren’s lives – wish they had had this arrangement when they were new parents.
As the baby boomer generation continues to redefine retirement, flexible retirement is becoming more common. Companies that implement this model benefit from a wealth of experience, knowledge transfer and a happier, more engaged workforce. Here at Optima Office, we don’t just brave the storm of a changing workforce, we ride the wave. Flexible retirement is not a concession, but an unconventional approach to retirement with benefits for companies and their employees.
As more companies adopt this innovative approach, the traditional retirement cliff could transform into a gentle, flexible slope where everyone can find their own comfortable landing point.
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