GME Enterprises (GME) offers expert risk management and advisory services to clients in both the private and public sectors.  We pride ourselves on staying abreast of leading industry practices and emerging trends. One such trend that is poised to impact organizations across a broad spectrum is the record number of employees turning 65 or older who will soon be eligible for and approaching retirement – a phenomenon known as the “Silver Tsunami”.  This demographic shift indicates that the number of employees in this category and likely to exit the labor market will continue to increase through 2027.

Across industries, many organizations already feel the strain caused by turnover and retention issues.  If organizations aren’t prepared by having good policies and procedures in place to easily onboard and train new staff, the results will be a loss of institutional knowledge, knowledge gaps, and compliance issues. This wave of retirements poses unique challenges for businesses across various industries. In this article, we’ll explore strategies that companies can adopt to navigate this impending talent crisis and ensure continuity in operations.

Challenges of the impending “Silver Tsunami” for businesses include:

1. Loss of Institutional Knowledge: Many retiring employees hold critical institutional knowledge and expertise accumulated over decades of experience. Losing this knowledge without proper succession planning can significantly impact operations and hinder business continuity.
2. Succession Planning: Far too few organizations develop formal succession plans. Identifying and grooming successors to fill key roles can be challenging, especially if there is a lack of suitable candidates within the organization or industry. Organizations that make a commitment to developing the bench of future leaders are more prepared for success.
3. Talent Shortages: The sudden exit of a large number of experienced workers can create talent shortages, particularly in specialized fields or industries where skills are in high demand. Introducing cross-training and leadership development are worthy investments in an organization’s long-term health.
4. Workforce Diversity: The retirement of senior employees may exacerbate diversity and inclusion challenges, particularly if efforts to attract and retain diverse talent are not prioritized. Studies have shown the positive bottom-line value of promoting workforce diversity and inclusion as part of the organization’s strategy and culture.

To effectively prepare for the Silver Tsunami, companies can implement the following strategies:

1. Knowledge Transfer: Encourage retiring employees to document their knowledge and expertise through mentorship programs, knowledge-sharing sessions, and the creation of comprehensive documentation.
2. Succession Planning: Identify high-potential employees and provide them with opportunities for development and advancement. Establish clear career pathways and mentorship programs to groom future leaders within the organization.
3. Recruitment and Retention: Proactively recruit and retain younger talent to fill the talent gaps left by retiring workers. Invest in training and development programs to upskill existing employees and attract new talent.
4. Policies and Procedures: Make sure that existing policies and procedures for job processes are current and accurately reflect current processes. Incorporate a periodic review to ensure that changes in processes and roles are updated appropriately.
5. Periodic third-party reviews: As a leading risk management practice, obtaining periodic unbiased assessments can improve an agency’s internal controls and systems by periodically assessing processes, equipment, software, systems, layout, and personnel and identifying opportunities for improvement.
6. Workforce Diversity: Incorporate diversity goals and objectives into organizational strategies.  Incorporate employee engagement activities and employee resource groups to promote a culture that values diversity and inclusion.

The Silver Tsunami presents both challenges and opportunities for companies to adapt and thrive in an evolving workforce landscape. By proactively addressing knowledge transfer, succession planning, talent recruitment, and diversity initiatives, businesses can position themselves to navigate this demographic shift successfully and turn the challenges of the Silver Tsunami into opportunities for growth and innovation.

We want to hear about the challenges you’re facing and welcome the opportunity to support your organizational initiatives. Contact GME today to discuss how we can help you develop strategies to manage this and other emerging risk management trends.