Shrinking the HR talent pool
The latest analysis of our HR community shows a clear spike in retirements coinciding with the COVID-19 pandemic. And interestingly, we found that many of our HR professionals were retiring much earlier than they had planned to.
It is already well documented that the COVID-19 pandemic had far-reaching economic and social impacts. Many individuals experienced financial challenges, health concerns and uncertainty, which may have influenced retirement decisions for some people. Conversely, we expect that others may have delayed their retirement due to market volatility or the need to rebuild their savings given the dive in value of many pension and investment funds during that time.
7 reasons for early retirement by HR leaders
Individual decisions to retire seem to have been influenced by a multitude of personal circumstances and considerations, inclusive of:
Job loss or reduced income: Some who lost their jobs, especially those who were close to retirement age, simply decided to retire early rather than continuing to search for new employment opportunities.
Opportunistic packages: In some cases, companies facing financial difficulties during the pandemic implemented workforce reductions and early retirement packages as part of their cost-cutting measures, and the “golden egg” offer in some of those situations made early retirement a financial possibility for those individuals.
Health concerns: With reports that COVID-19 was primarily affecting older adults and individuals with underlying health conditions, some of those at higher risk opted to retire early to protect their health and reduce their exposure to the virus.
Work-life balance: The pandemic brought about significant changes to work arrangements, such as remote work and flexible work schedules. Some individuals, particularly those who were already considering retirement, saw this as an opportunity to transition into retirement earlier than planned and enjoy more leisure time or pursue other personal interests.
Family obligations: The pandemic also affected individuals' personal lives, with many facing increased caregiving responsibilities for children, elderly family members, or loved ones who fell ill. The difficulties of balancing these responsibilities with work, prompted some individuals to retire early to focus on their families.
Professional goals reprioritisation: Many found the time during COVID-19, to rethink the type of work they actually enjoyed. Some opted for early retirement from the profession in order to pursue other professional interests. In some instances, people set up their own small businesses completely away from the HR field (cake making, wood working, guest houses were just a few of the examples we saw). Others opted to become self employed consulting contractors rather than HR employees. Others still opted to retrain and switch into new specialist fields of work (eg: coaching, accounting, IT).
Burnout: Managing day to day service delivery in addition to the enormous workload burden of pandemic crisis management was simply exhausting for some HR professionals who we know were working “around the clock” and manging inordinate levels of pressure for months on end. Some opted to retire early in order to reset their sanity, mental health and general wellbeing.
It's important to note that while some people may have chosen early retirement due to COVID-19, others may have been forced into retirement due to circumstances beyond their control. Whether any of these people will decide to return to the HR profession in the coming weeks and months….only time will tell.
About the Author
Ian Mael is valued across his HR network for his diligent communications and authentic partnerships. As the leader for interim HR executive hires at Carter Morris, he brings over 15 years of recruitment experience for multi sector hires within demanding deadlines for the full range of specialist roles within the HR profession.