Page 223 - Finanancial Management_2022

How to mitigate the

risk of retirement

brain drain

Retiring professionals can take decades of experience

with them when they leave, but finance leaders can take
steps to prevent the loss of corporate knowledge.

By Anita Dennis

n 2021, 37% of UK retirees ‘You never want
accelerated retirement because of
COVID-19, according to UK-based to learn what
global investment company abrdn
IPlc. In the US, the number of retirees could have made
aged 55 and older grew by 3.5 million in
2020 and 2021, nearly twice as fast per someone happy in
year than between 2008 and 2019,
according to the Pew Research Center in an exit interview.’
the US.
This loss of experienced workers can be a Alyssa May, finance business partner at
significant threat to a finance team for H.B. Fuller in the US
multiple reasons. Not only can turnover be
costly and disruptive, but retiring
professionals also take with them decades of and the potential for a domestic or global
experience. This ranges from knowledge recession, which may be an unfamiliar
about the organisation’s inner workings to challenge to younger employees. It can leave
first-hand involvement in dealing with finance teams less equipped to respond to
re-emerging threats such as higher inflation both risks and opportunities.

FM-MAGAZINE.COM December 2022 I FM MAGAZINE I 27