Being forced to retire can be devastating for anyone not yet prepared for it. Almost overnight, these workers go from a decent paying job to scrambling to figure things out. In almost every situation, it’s not even their fault!
To avoid forced retirement, the employee must provide such value to the organization, they cannot afford to lose them. This value is conveyed through their personal brand and contributions.
The sad reality is too many organizations are focused on downsizing and other cost cutting measures. Older workers are often targeted as a means to improve the bottom line. In spite of all their experience and knowledge, they are generally the first ones forced out the door.
These companies perceive younger employees revitalize their work force while costing less. This widespread mindset has resulted in over half of all older workers being at risk.
Understanding Forced Retirement
Unfortunately, the practice of eliminating older American workers has become the norm more than ever before. According to ProPublica and the Urban Institute, 56% of employees over the age of 50 will experience job loss before they’re ready or willing to retire.
The job search process can be brutal for older workers taking months and months. In fact, only 10% of these job seekers will find employment with comparable pay. Moreover, about a third of these people will be terminated again.
Expanding upon Investopedia’s definition above, think of forced retirement as job loss which otherwise wouldn’t be your preferred choice. This could be complicated by health issues or company downsizing / restructuring. In many situations, an incentive package may be offered to select employees.
Thus, anyone accepting such an offer might appear to be leaving voluntarily. However, if the employer is targeting certain individuals, they might later be forced to leave with little or nothing. If this is the company culture, one might argue these employees didn’t really have a choice.
Picking up the pieces afterwards can be far more traumatic. Our article on how to deal with being forced to retire goes into greater detail on how to cope with dismissal.
In contrast, mandatory retirement based on age was made illegal in 1986. There are certain exceptions for select professions such as airline pilots or military personnel.
Thus, companies cannot force you out just because of your age. Instead, they’re more creative offering incentives or downsizing through lay-offs, cutbacks, and shutdowns.
Why Does Age Matter?
The corporate mantra seems to be “do more with less”. The goal is to increase profitability by reducing costs. Everyday we hear of layoffs, outsourcing, and shutdowns. While this impacts the entire labor force; it particularly hurts older workers.
As a rather crude analogy, let’s say a company operates a fleet of delivery vehicles. After reaching a certain mileage or age, they become more expensive to operate and repair. At this point, it makes good business sense to replace them.
Management might further determine they could contract out delivery service, further reducing costs. Now, all those expensive vehicles and drivers are eliminated.
The same cost benefit analysis applies to their employees. Older workers are usually perceived as more expensive and less productive than their younger counter parts.
This is age discrimination, yet justified as necessary to remain competitive. The only thing better in the eyes of the company would be outsourcing all these positions.
How To Bulletproof Your Future
Each of us has a different view on the optimal time to retire based on their unique situation and desires. To avoid forced retirement and bulletproof your future, take the necessary precautions to ensure you work for as long as you want doing something you enjoy.
Ultimately, this requires providing such value your employer cannot afford to lose you. In a similar vein, other potential employers might hire you in a heart beat.
Some thoughts on how value could be enhanced include:
Build Your Personal Brand
A personal brand is how we present ourselves to the world. It conveys who we are, what we stand for, and the unique value we bring. In addition, it can bolster your credibility, showcase your expertise, and establish a reputation as being an expert in your field.
Each of us has the ability to shape and promote this messaging. Unfortunately, most workers either don’t understand the value or couldn’t be bothered. This is a mistake as it can greatly influence how others view us and our career opportunities.
Attending company functions and work events are a great way to network. It shows you are engaged and provides others the opportunity to get to know you. If your organization supports a charitable event, get involved and volunteer.
LinkedIn provides 7 tips to building your personal brand, which is extremely helpful for anyone getting started. As they suggest, the true value of the platform is creating meaningful connections with people.
Industry conferences or tradeshows not only keep you abreast of technology, they’re also an effective way to expand your network.
Finally, if you have a flair for writing or are willing to give it a shot, write about something in your field of expertise. When others post information, comment and, if appropriate, reshare their post. Develop a reputation for helping others.
Become The Resident Expert
Another means to avoid forced retirement is to deepen your expertise. While no one is irreplaceable, the deck tilts in your favor when you are the expert. This may be through certifications or in-depth customer knowledge / relationships.
Sadly, as many folks approach retirement, they appear to almost be on cruise control. Instead of actively growing and deepening their expertise, they get by on past experience. While their years of knowledge can be invaluable, in many cases they are technologically falling behind.
This can be a double-edged sword as the employer may not be willing to invest in older workers. They’ll be gone in a few years anyways. Hence, their younger counterparts might be the ones attending courses, seminars, and trade shows.
Transition Into a Higher Demand Position
Certain positions are not considered of high value or critical to organizational success. With the growth of call centers, it would appear in-house sales and customer service positions are not as highly valued as they once were.
This applies to numerous other positions which companies are eager to trim. Alternatively, there are certain jobs which are deemed critical with a shortage of experienced staff. Examples might include project management, safety officers, and quality control.
Depending upon the organization, there may be funding and opportunities to take courses to gain the certifications necessary for these positions.
Even if an employer doesn’t support it, such a career change might be worth pursuing. This, of course, depends on how much cost / effort is required versus the greater job security and renumeration.
Self-Employment
While not a true strategy to avoid forced retirement, self-employment could be an option to extend your working years. This requires an entrepreneurial spirit and the ability to work on your own.
With our years of experience and extensive contacts, baby boomers are the most likely to succeed when starting a new business. They are almost uniquely positioned for success with their years of experience, skill sets, and extensive contacts.
Freelance or contract work come to mind as options. Further to this, the Internet opens up more opportunities than ever before. In fact, there is a growing trend of people pursuing an interest or hobby online which evolves into a side business.
Closing Thoughts on How to Avoid Forced Retirement
The key to avoid being forced to retire is providing such value, your organization can’t afford to lose you. Even so, there are no guarantees as companies continue to restructure and downsize.
This is why creating a strong personal brand, deepening your expertise and being in a high demand field are crucial. Another consideration is starting a business. Never has it been easier and might be far more satisfying than your current position.
Remaining proactive and maximizing your value is the best strategy to bulletproof your future.