How to Manage Gen U: Generation Unretired

As the recession forces more older workers to postpone retirement, a major shift is under way in the makeup of the U.S. labor pool

By Lynn Taylor

Calls for "Tennis, anyone?" are going unanswered. Foursomes on the fairways are few and far between. Retired Americans who thought they would be golfing or shopping with grandchildren are sharpening their tech skills, updating résumés, and scouring job boards instead.

America's recent retirees are talented, innovative and energetic—and millions of them have found that retirement just isn't for them. They're joined by millions more who have realized they can no longer afford to stay retired, following last year's stock market and housing crash.

The AARP says that 8 out of 10 baby boomers will work part- or full-time past retirement age. That's 64 million unretiring Americans, the biggest demographic shift in the American workforce since WWII—and 93% of the growth in the American labor market from now until 2016, according to the Pew Research Center.

Welcome to "Gen U"—Generation Unretired—America's newest, bona fide workforce segment.

To sail through this sea change in the labor pool, managers need to recognize the unique set of opportunities that Gen U presents—and how to navigate any concerns. A major shift in the composition of the workforce such as this requires openness to change, and in this case, a commitment to diversity and greater sensitivity. And that's not for altruistic reasons. It's of tremendous benefit to the bottom line. Understanding the Gen U phenomenon will offer rich rewards for employers and employees alike.

Granted, the high unemployment rate makes any hire seem like a far-off fantasy at the moment. But whether they are hired as consultants, full- or part-timers, as the economy brightens, Gen Uers are here to stay. They are not new, but they have formed a critical mass in Corporate America, and now is the time to becoming attuned to their vast resources.

The First Step: Gen U Hiring Savvy

The most important question being asked by senior management about Gen U is: What can it mean for the company to access this large talent base? But the first step to consider is hiring.

The typical Gen U reentering the workforce is a senior professional with significant depth of experience. Leveraging that experience can put your company at a unique competitive advantage. First, a quick reminder: Hiring managers should be knowledgeable and about employment laws and human resource practices when hiring and working with any "protected class" in the workplace. Gen U often relates to those who are of retirement age—and inquiring about age directly or indirectly, can lead a company straight to the courtroom due to age discrimination.

Here are a couple suggestions for the hiring phase:

• Dig for Gems. Determine Gen Uers' passion and ideal work objectives: How can they can best realize their potential and be most productive? For example, find out what their experiences were during their time away from the workforce; what were their favorite activities, and how might those mesh with your needs. They may have worked as a project volunteer, mentored individuals, or pursued a passion (perhaps in a leadership role) that would lend value to your objectives.

• Team Builder or Solo Flyer? Retirement can be a lonely, and many Gen U workers are looking for team-based camaraderie. Collaboration that makes an impact on the livelihoods of others creates a lasting sense of accomplishment, one that golf or consulting gigs may not live up to. "Manager of the Year" and "Top 100 Company" awards hanging on a retired executive's wall are an example of this.

• Define Roles. How is the former senior vice-president of a multinational going to feel about reporting to a project manager? Your Gen U staff may need to report to others with fewer years of business experience, yet more advanced or specialized skills. While you may not supervise the prospective Gen Uer, it may helpful to engage in some of the interviews so that you better understand the mindset of various Gen Uers.

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