Do you have a succession plan in place for retiring employees?
If not, now is the time to create one: A staggering 10,000 baby boomers are reaching retirement age every day, according to the AARP.
As these veteran workers retire, they take decades of “tribal knowledge” with them — knowledge that can take years to rebuild or worse, be lost forever.
What’s more, the increased burden on remaining employees and new hires can contribute to even higher rates of turnover.
So what can you do to preserve institutional knowledge and ease the transition? Here are 5 steps to take before key employees retire:
Don’t rely on memory
Picture your most experienced employee — that person who’s been around 10, 20, or 30+ years. Now, imagine they retired tomorrow! Could you quickly locate all of their important files? Would they know exactly which tasks they were working on, and when they’re due?
When you rely on memory to keep track of documents and taks, you run the risk of losing critical information or, at a minimum, wasting massive amounts of time piecing things together when someone retires.
You don’t want to have critical data stored in a spreadsheet that’s buried on the retiree’s computer, for example, or miss a deadline because it’s written on a sticky note on their computer monitor.
Instead, now is the time to create a central record of tasks and information. The best way to do this, as many organizations have found, is with an EHS software system. Using EHS software makes it easier to organize and share important documents and information.
Good EHS software also lets you assign tasks to individuals and view them in a central calendar, so you know exactly what each person is working on and can quickly reassign those tasks if they leave.
Document processes and workflows
Of course, it’s not enough to know what someone is working on — you also need to know how they do it.
Now is the time to start documenting these processes. That can be as simple as having employees take notes as they perform a particular task. If you’re using EHS software, these documents can be attached directly to tasks to provide a record of what’s required for future obligations.
Let new hires shadow retiring employees
Job shadowing is a type of on-the-job training that involves spending time following an employee in their job. Shadowing offers a period of overlap between the employees, and can last anywhere from a few hours to a week or more.
In any case, it’s a valuable time for both retirees and their replacements. For incoming employees, shadowing offers the opportunity to observe day-to-day tasks, learn systems and processes, and ask questions that might otherwise have been overlooked. For outbound employees, it’s a chance to pass along knowledge as well as gain a sense of closure.
Offer partial retirement options
Part-time, remote work, and consulting arrangements are just a few of the ways employees can gradually transition from full-time work to retirement. According to a study by the University of Michigan, more retirement-age employees are opting for partial retirement.
It’s a win-win: employees get to continue collecting a paycheck while they ease into retirement, and organizations get to keep veteran employees around to share their knowledge and wisdom — albeit in a slightly different role.
Don’t wait until the retirement party
The sooner you start planning for succession, the better prepared your organization will be in the event that key employees retire. The best time to start planning for a successful transition is 6 months — 1 year in advance. The second best time is today.
While it does take some effort upfront, succession planning will save your organization time and headaches down the road.