Retirees: Guess Who’s Back? Again

Every year, they seem to be on the outside looking in. But instead of going away, they reappear, seemingly stronger, seeking to get back inside—whether they’re invited or not. Guess who’s knocking on the corporate door yet again?

Taking the “unretirement” trend that made headlines last year to a new level, a new wave of retirees are returning to work. According to a new survey, one in eight retirees, about 13%, plan to return to work next year. That’s on top of the 22% of retirees who are currently working in some capacity (more than twice the number who did so in the 1980s). But companies aren’t quite sure whether to welcome them back or not, knowing that they not only can reduce disruptions to business—but can also cause them. “Internal equity is a major consideration,” says Wayne Mealey, vice president of client services at Korn Ferry.

Unretiring, of course, took off in the post-pandemic hiring frenzy, and gained strength as inflation sent living costs soaring. At the time, hiring was strong, and firms needed to fill positions with experienced, skilled workers. Mealey says that this need persists at many firms. “If they’re applying for a role that was in their skill-set sweet spot, firms can get 20-plus years of experience on day one,” he says.

Conditions have changed, however, with hiring and growth slowing, and firms investing heavily in AI, rather than talent, to increase productivity and efficiency. Moreover, organizations are focusing their recruiting efforts on the talent of the future. In fast-moving industries like tech, for instance, there’s concern that retirees may have trouble both in getting up to speed and also in keeping up with the learning and development that’s required, says Barbara Rosen, a senior client partner and global accounts lead for the Technology market at Korn Ferry. To be sure, studies show that the ranks of Gen-Z workers in tech are growing, while the hiring of people over age 40 is declining. 

There are also cultural concerns for firms to consider, say experts. The mass return of retirees could clog up the succession pipeline for eager younger workers. Alma Derricks, a senior client partner in the Culture, Change, and Communications practice at Korn Ferry, says it can be challenging to balance the older workers’ experience with the development younger workers need in order to eventually become managers and leaders themselves. According to the survey, of retirees planning to return to work next year, 13% say they want to work full-time, while 79% intend to work part-time, and 8% are flexible.

Many firms, of course, may decide to take a lot of retirees back. If they do, experts say, they can try to bridge the generational divide by asking retirees to coach or mentor younger workers, or to provide input on specific projects or clients. Other companies are bringing on retirees on a contract or interim basis to fill high-priority needs. By way of example, Rosen cites a large tech client that is developing a program to keep retirees connected to the firm. Arrangements like these, she says, are a great way for firms to generate value for returning retirees by transferring institutional knowledge, building a shared mission and purpose, and helping create engagement and succession pipelines for younger workers. “Retirees often remain passionate about the places they’ve worked and are invested both emotionally and financially,” she says.

Learn more about Korn Ferry’s Talent Acquisition capabilities. 

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