A 'flex-tirement' policy helps this ad agency's employees ease into retirement

Employees' traditional view of retirement is changing. It's time for employers to embrace that, too. 

Next year will see the greatest number of employees reaching retirement age — it's estimated that 10,000 people will turn 65 every day, according to the Census Bureau, and by 2030, all baby boomers will have reached retirement age. Yet employees aren't all planning to flee the workforce en masse: 55% of employees expect to work in some capacity during retirement, according to the Transamerica Center for Retirement Studies. 

At HireClix, a recruitment advertising firm, a formal "flex-tirement" policy is creating a framework to help employees make the transition from full-time work to retirement. Employees shift to a 30-hour week, and then continue to reduce their hours to 20-25 hours per week, while continuing to receive benefits. Older employees work on more of a consultancy basis, and are also tasked with mentoring younger employees within the company. 

"The notion was, how do we make sure that we keep talented individuals on the team that are nearing retirement age," says Neil Costa, founder and CEO of HireClix. "When you've invested so much in your career, and from the employer side, we invested so much in an employee, you don't want that skill, that leadership, that ability to mentor younger workers to walk out the door." 

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For Michelle Whiffen, retirement is still a few years away, yet she's jokingly "threatened to retire" for years, she says. But going from full time work to being at home isn't how she pictures this next phase of her life. 

"Growing old is a privilege not everyone gets to do, and I've had a great career," Whiffen says. "But of course, at some point, you want to give some time for your own pursuits. The option of flex-tirement gives me the option to wind down, instead of just one day walking out the door." 

Continuing to work into retirement has a myriad of benefits for older workers — the financial support of a paycheck, the ability to continue to save more into retirement savings accounts, better cognitive and physical health outcomes and a sense of community are all tied with staying in the workforce longer. 

From a business perspective, there are benefits to maintaining a multi-generational workforce, too: HireClix has a staff of 55, and three of their employees are over 55-years-old, while a larger portion are in their 40s. Flex-tirement will not only help to retain the older demographic of workers for the long-term, but can cultivate newer talent, or help cover for younger workers out on maternity leave and other life events without disrupting business, Costa says. 

"What we're trying to do here is find an element of flexibility that allows us to retain people and still give them the fit that works as they get closer to retirement," he says. "As we have younger workers that are here, and they start to go out on maternity leave, that could be the opportunity to fill in part-time. It can be a natural progression." 

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Since the flex-tirement policy was implemented, Whiffen has rethought her own retirement plans. Now 58, she had initially planned to leave the workforce at 62. Now, she's willing to be more flexible, with her employer's support. 

"The more I think about it, I just don't know that I'm going to be ready to just walk out the door," she says. "I think as workers get older, there's an opportunity for scaling back, and taking the parts of your job that maybe you're really good at, or maybe really enjoy and use those skills on a part-time basis, instead of just being idle." 

At HireClix, Costa says he hopes all of his employees will make their careers at his company. That means investing in a culture where people feel aligned with the values of the organization, and supported as a team. While only 52, he hopes to participate in the flex-tirement program himself, leading by example. 

"I'm 52, so what's the plan for me? I don't want to just shut it off," he says. "I put a Hail Mary in place to build this company, and it'd be hard to walk away. I would love to see it continue to grow and have my own flex-tirement type of role as well, that fits mentoring and transitioning to a succession plan." 

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Whiffen says while she's been fortunate to have supportive bosses throughout her career, collaborating with Costa on what retirement looks like for her has proven that her organization is committed to supporting her career for the long-term. That's made a difference in how she shows up for others, too. 

"We live in a changing world, so how do you think of retirement differently, and how can you keep people active in employment by giving them that flexibility," Whiffen says. "I'm fortunate to work for a company that recognizes that and is willing to have those discussions about what it will look like in the future, and to have a boss that is willing to have those open and honest conversations."