Rather than announcing their retirement, employees at a certain age and stage are, instead, opting for ‘rewirement’ – even if they don’t use that word, writes Kate Kearins.
Giving up full-time or other paid work – the seemingly final act in an active working life – used to be openly referred to as ‘retirement’. But in my experience, fewer colleagues these days seem comfortable talking about retirement.
Their lack of comfort may stem from a reluctance to call time on their paid career, which hopefully has brought professional satisfaction as well as social interaction and routine. There may also be financial concerns about turning off a, if not the, major income tap.
Increasingly employees appear open to different ways of combining some paid work alongside increased leisure and/or family time.
Rather than announcing their retirement, employees at a certain age and stage are, instead, opting for ‘rewirement’ – even if they don’t use that word.
The term ‘rewirement’ is understood as “a proactive and intentional approach to transitioning from one life phase to another, often after a long career, rather than simply retiring”.
Writing in Forbes.com, one senior leader described it as “the process of adjusting a part of your life on a mental and physical level to better reflect your current needs and desires”.
Kate Kearins
Generally, individuals make their own decisions around the end of paid work, based on a range of factors including health and energy levels, job satisfaction, wealth and income needs, and ideas about life expectancy and identity.
There is no official retirement age in New Zealand – and it is a fallacy to assume someone will necessarily (wish to) retire at the age of 65 when superannuation and some other pension payments kick in.
For organisations, the loss of often senior, highly skilled employees can put strain on their internal capacity…
It is not just individuals who may find the transition away from full-time work challenging. For organisations, the loss of often senior, highly skilled employees can put strain on their internal capacity.
Organisational challenges are exacerbated if an employee feels they must keep their plans to retire or rewire private for fear of being prematurely ‘written out’ of the organisational narrative.
The result is problematic for individuals and companies alike since they both miss out on developing valuable transition planning for their respective futures.
The following scenarios bring to life the potential complexities of moving out of full-time work:
- Phased retirement: Someone has become a grandparent and wants to help family with grandchild care – but cannot afford to give up work. Could part time or gig work options be explored?
- Micro-retirement: Someone else is finding their full-time role as a manager stressful, and their health is being adversely impacted. Could they temporarily step back into a non-managerial position or even take a career break?
- Planned retirement: Another person plans to retire fully in two years’ time. When is a good time to start discussing it with their manager?
While none of these scenarios shuts down future (earning) work opportunities, points one and two highlight the increasing appeal of rewirement.
How organisations manage these situations matters. As is so often the case in complex people-centred circumstances, open and honest communication can be the key to successful navigation and outcomes.
When employees feel psychologically safe and confident that they are valued in the workplace, they are more likely to discuss their retirement plans without fear of stigma or prejudice.
Mutually beneficial plans (including wind-down and potential replacement and handover options) can often be developed and agreed…
When this happens, it is feasible that organisations could retain a ‘slice’ of that competent employee who eventually plans to stop working. Mutually beneficial plans (including wind-down and potential replacement and handover options) can often be developed and agreed.
It’s tougher when there is a feeling that retirement cards must be held close to the chest. Individuals may, of course, wrestle with their own feelings about the end of their career.
But it is worth reflecting whether, as an organisation, there is a culture of discomfort, or even shame or stigma, about employees moving towards retirement. Are there ways your company can ensure people heading in this direction feel valued and engaged with until the very end?
Finally, a reminder for organisational managers: employees are generally able to keep working until they choose otherwise.
In many countries, including New Zealand, employees are staying active in the workforce for longer. There are very few situations where an employer can ask someone to retire – and doing so could provoke a personal grievance.
Better all round is to embed a culture of trust, ongoing professional growth, and continuous learning in the workplace. Across the board, engaged workers – including those who feel supported on their path toward retirement or rewirement – actively contribute to enhanced organisational performance.
Kate Kearins is Pro Vice Chancellor and Dean of the Faculty of Business, Economics and Law at Auckland University of Technology. She is a regular contributor to Management magazine.
