The Bureau of Labor Statistics estimates the number of available US jobs will increase by more than 22 million by 2010, but the civilian labor force is projected to increase by only 17 million. Labor forecasts in much of Europe, Australia and Japan tell a similar tale.  One solution to this critical talent gap? Persuade employees who could retire to stay on. Here are actions you can take to keep them on board.

1. TALK TO POTENTIAL RETIREES ABOUT THEIR OPTIONS. Make it clear to would-be retirees that your company values them and would be glad to keep them on. Have these conversations early, long before they’ve set a retirement date or begun to make plans.

                But first, speak to human resources to make sure you don’t run afoul of age discrimination laws. Once you understand what can and cannot be said, get would-be retirees’ input on where they think the organization should go in the next several years and the talent it will need to get there.                 

2. OFFER FLEXIBLE WORK ARRANGEMENTS. Tired of his long commute, Edward Houghton was counting down the days until he could retire.

                Luckily for his company, Houghton—director of workplace effectiveness at Pitney Bowes, the Stamford, Connecticut, mailstream technology company—made no secret of his plans to leave, and his manager had a chance to respond. Together, they crafted a flexible arrangement under which Houghton retained the same responsibilities but worked a compressed workweek at an office closer to home.

                As the work-force growth rate slows, it becomes more important to meet older workers on their own terms.

                “Find the options that work for the individual and the organization,” advises Robert Morison, coauthor of Workforce Crisis: How to Beat the Coming Shortage of Skills and Talent and executive vice president of Austin, Texas-based research, advisory and technology firm nGenera Corp.

                At Pitney Bowes arrangements might include flextime, telecommuting, part-time work, job sharing or leave time. The company recently launched an intranet site to help employees and managers design flexible work arrangements that support both business and employee needs.

                If pension-plan rules make it unattractive or impossible for the employee to remain on your books, she can come back to your company as a temporary worker. The Principal Financial Group, a Des Moines-based financial services company, hires its retirees through Manpower’s Happy Returns. Such an arrangement provides flexible work for the retiree—and a flexible work force for the employer.

                Another option is an in-house retiree return program, such as California-based Aerospace Corporation’s Retiree Casual program, which enables workers to come back on a per-project basis up to 1,000 hours a year (an hourly restriction imposed by the IRS). At Aerospace, 80 percent of retiring employees sign up for the program.                 

3. KEEP OLDER WORKERS ENGAGED. Employees age 55 and older have the highest rates of job satisfaction, pride in their work and engagement, according to an nGenera survey. These figures climb even higher for the subset of employees age 65 and older. “They’re volunteers,” says Morison. “They’re doing something because they choose to do it.” But don’t take that energy and enthusiasm for granted. Morison says working retirees are looking for two things: continued stimulation on the job, including opportunities to learn and do new things; and the society of the workplace.

                Ask the employee:

                * What’s your passion?

                * What’s the role you’ve always wanted?

                * What role would you like to go back to?

                Deloitte Consulting encourages workers of all ages to make the schedule or role changes they need to stay on board and engaged. In 2002 the company launched Deloitte Career Connection, a Web-based program that offers employees self-assessments, internal job listings, résumé-writing tips and contact with career coaches.

                Stan Smith, national director of Next Generation Initiatives at Deloitte, reports that the coaching element is of particular value to older workers who may struggle with self-doubt.

                Deloitte’s concept of a corporate lattice, instead of a ladder, allows for the different career priorities people have at different points in their lives. For some people nearing retirement, the option of climbing sideways or down is attractive.                 

4. OFFER OPPORTUNITIES TO GIVE BACK. Anne Hartman, founder of Massachusetts-based retirement-focused consultancy Working Differently, says retirement-aged people often feel a need to serve others and give back to the community. To help older workers fulfill this desire, offer volunteer opportunities through the workplace. Or offer mentoring opportunities to help this intensely loyal group give back to the organization.                 

5. KEEP RETIREES CLOSE. If someone chooses to leave the company, don’t write him off. “The average complete retiree starts going stir crazy after about six months,” says Morison. For this reason, Morison recommends staying in touch with your alumni.

                Many organizations maintain retiree associations, through which they share news and arrange occasional gatherings. Even if those retirees never come back to work for you, they’ll be great ambassadors for your company.                 

Cynthia Morrison Phoel is a Boston-based communications consultant. She can be reached at MUOpinion@harvardbusiness.org.

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