Retirement is something most workers look forward to.
This transitional period brings the promise of leisure, travel, and enjoying the fruits of your labor. However, a new trend of unretirement is taking hold at workplaces of all kinds, from the average small business to the largest enterprise. Baby Boomers — roughly those born between 1946 and 1964 — are now returning to work.
There are many reasons why this trend has taken hold: unexpected financial challenges, the crushing boredom of unstructured days, or Boomer entrepreneurs experiencing the unfortunate collapse of their businesses. But is returning to work the right move?
Generational challenges and changing workplaces mean Boomers might be in for more than they bargained for. Here’s a look at the pros and cons of the “Boomerang Boomers” trend.
Why Are Boomers Boomeranging Back?
The numbers show that the Baby Boom generation is indeed returning to work in record numbers. Approximately one in five Americans aged 65 or older are now employed. That figure has nearly doubled over the last 35 years. But why are Boomers boomeranging back into the workplace? As it turns out, there are a few converging factors driving workers out of retirement.
For many Boomers, the rising cost of living and the economic uncertainty of the post-pandemic era have made returning to work necessary. Market fluctuations have negatively impacted retirement savings for some, while unexpected healthcare expenses have drained other nest eggs. So, instead of a comfortable retirement, financial challenges of all stripes account for a large segment of Boomers returning to work.
Others are discovering what generations of retirees learned before them — retirement can leave you feeling bored and lacking purpose. Workers of all ages find identity and structure in their careers. The abrupt transition to “the good life” can leave some feeling empty. Returning to work fills that void.
Meanwhile, some Boomers who founded businesses find themselves back in the job market due to the unfortunate failure of those ventures. Market shifts, changing consumer preferences, increased competition, or inadequate succession planning can all cut retirement short. These Boomerangers may want to salvage what they can of their businesses. Others simply need to find new employment to support themselves and their families.
Pros of Boomers Returning to the Workforce
While you might think it’s unfortunate for people of retirement age to be back in the office, there are actually many upsides to the Boomerang Boomers trend. These seasoned professionals offer the following:
- Experience and wisdom: Boomers have accumulated industry expertise, institutional knowledge, and leadership skills for decades.
- Mentorship potential: Returning to work creates opportunities for Boomers to mentor and guide younger employees, fostering a culture of knowledge transfer.
- Work ethic: As a whole, Boomers are known for a strong work ethic, dedication, and commitment to seeing work through to completion.
Cons of the Boomerang Trend
Of course, the Boomerang Boomers trend presents potential challenges for both the returning workers and their employers, such as:
- Cultural misalignment: The modern workplace has evolved significantly in recent years. A greater emphasis on technology, remote or hybrid work, and collaborative team structures may leave Boomers feeling left behind.
- Ego vs. collaboration: Boomers who retired from leadership positions or owned their own businesses may find it hard to transition back to the employee role. Some will have to overcome ego issues to be effective collaborators.
- Financial burdens on companies: Experienced talent costs more in salary and benefits. Boomers offer expertise but are likely to expect significant compensation for it.
Is It Good for Businesses and Boomers?
On the one hand, returning Boomers offer tremendous potential to businesses. On the other, there’s the risk of generational challenges or former entrepreneurs having to quash their egos. So, is this trend good for businesses — or the Boomerang Boomers themselves?
In the right roles and with the right expectations, it can be a good thing for employers and returning workers. Both sides should go into this arrangement with a spirit of finding mutual benefits. Businesses should ensure Boomers are in roles that take advantage of their knowledge and work ethic. Boomers should focus on finding renewed purpose, financial stability, and gaining new skills.
Where things could go wrong is not accounting for — or planning for — the differences between Boomers and younger generations. Promote a multi-generational culture where all employees know the cultural differences, varying work styles, and technology expertise among different age groups. These issues can cause workplace conflicts, but you can address them to create a mutually beneficial work culture.
Boomerang Boomers: What Do You Think?
The amount of older workers returning to the workplace has nearly doubled in a relatively short time. Boomerang Boomers can bring value to modern workplaces when their return is intentional and well-integrated into your company culture. However, it takes awareness of the pros and cons and a workplace culture that values multiple generations. Is your company seeing an uptick in Boomers returning to the workplace? What has your experience been like? Share your thoughts on this growing trend by contacting MRINetwork today.