Even traditional retirement cannot escape the Gig Economy.
In a recent blog we looked at the new and expanding Gig economy, with this trend being discussed by Faith Popcorn in a Fast Company article. This HRM Canada article takes another perspective and it is called: Are we on a brink of a retirement revolution?
Click here to read more about the retirement revolution.
There are two main reasons: the Gig economy; and we are living significantly longer.
According to Morag Barret, Ph.D. author and seasoned HR professional, “Work is becoming more like tours of duty and statistics from the World Economic Forum say that within the next 10 years, 50 percent of the workforce is likely to be in the gig economy.” This means the Gig economy is strong and getting stronger. Think of the changes that could happen if you took 50% of the working population and placed them in a new employment structure; a structure that is fluid and variable in nature, where individual workers will move in and out of working time disperse with other activities such as sabbaticals, travel and volunteerism.
This is going to drastically affect our current understanding of employment careers. Combine the new Gig economy with the fact that workers in our society are living longer; sometimes 30 to 40 years past the traditional retirement date. These factors will affect retirement and the system of full stop retirement may have to change.
In addition, the career ladder as we understand it is quickly disappearing. HR departments need to start thinking differently about how they are going to recruit, retain and train workers today and for the future. To succeed HR departments must understanding the new Gig economy and the retirement revolution that is fast approaching.
Discussion Questions
- What should HR departments be doing now to assist employees with the new retirement realities?
- What systematic changes should employers be considering now to ensure they keep, engage and retain older workers?