As companies look ahead to the remainder of the decade, the phenomenon of Peak 65 looms on the horizon. This term highlights the point in history (the year 2024) when there will be the largest number of the world’s population turning 65 years of age, leading to a subsequent retirement boom. With this boom, havoc is a certainty for companies, especially their HR teams, and it’s predicted to last for more than 10 years.
In an effort to fully unveil the potential impact of Peak 65, CRI and HRO Today conducted a joint research effort that polled HR leaders in North America. The data reflected a low level of interest and preparation among HR leaders regarding Peak 65’s impending challenges, prompting CRI and HRO Today to introduce the term - “The Great Succession” - calling out the imminent hiring challenges organizations will be facing over the next 10 years.
The overall objective of the survey was to create buy-in around the Great Succession and familiarity around the top three factors contributing to it: Peak 65, a limited skilled workforce, and loss of institutional knowledge due to departing employees. The results of the survey will hopefully inspire organizations and their HR departments to prioritize the development of solid succession plans to deflect any disruption to workflow or workforce continuity.
With succession planning, companies can identify the critical positions within the organization and develop action plans for high potential individuals to assume those positions. These comprehensive plans address future staff turnover to ensure there is a consistent pipeline of talent available to continue moving forward with the organization’s business objectives.
Is your company prepared for the Great Succession? Consider these questions:
- Were you aware of the term “Peak 65” before reading this article?
- Were you familiar with the issues Peak 65 will bring to companies and their HR departments?
- If you were previously aware of Peak 65, have you created a succession plan to mitigate the challenges it will bring?
- Do you have enough skilled workers to fill the gaps left by retiring workers?
- Are you aware of institutional knowledge being shared among co-workers?
Even if a company is not as prepared as they would like to be for the Great Succession, there are tactics that can be adopted immediately to alleviate the shock.
First, simply acknowledging the challenges ahead can lead to a proactive and preemptive mindset regarding the Great Succession.
Next, encouraging opportunities for the transfer of institutional knowledge between co-workers can build bridges between new hires and more seasoned employees.
Finally, making sure the HR team has a well-developed succession plan in place to keep the company moving forward will help the company maintain order and productivity among its workforce for years to come.
While the scope and severity of Peak 65 remains to be seen, the simple act of being prepared will be an integral factor for companies hoping to sustain only minor impact during what will be an unprecedented employee exodus.
