| With 77 million baby boomers reaching retirement, | | | | retirees, in turn, can gain access to group medical |
| and half of the middle to upper management in this | | | | benefits and participate in retirement savings plans |
| country reaching retirement age in the next five | | | | like a 401(k). Also, there is no additional paperwork |
| years, our country is soon to lose many of its most | | | | for human resources to process - most of the |
| experienced workers. By 2015, it is estimated that | | | | administrative burden will be handled by the employer |
| 20% of the workforce will be 55 or older. It is | | | | of record firm. In most cases, for a percentage of |
| imperative that companies realize the value of older | | | | the bill rate charged by the consultant to your |
| workers and work now to develop a plan for | | | | company, the umbrella company will handle all of the |
| keeping these talented professionals on the job. If | | | | paperwork for you and the consultant, both. You are |
| companies allow their experienced workers to retire, | | | | not involved in the employment at all. The umbrella |
| there will be a crisis of inexperience in the workplace | | | | company invoices you for all the services provided |
| in the next ten to fifteen years. | | | | by your consultants, and you pay the consolidated bill. |
| Fortunately, there is an answer. Not all baby boomers | | | | They pay the consultants, and handle any benefits or |
| are anxious to leave the workforce. Many plan on | | | | retirement savings plans that they offer. In addition, |
| staying employed for financial reasons, because they | | | | such companies generally allow the option of keeping |
| enjoy their job, or just because they have nothing | | | | track of the consultants’ hours either through |
| else that they would rather do. Considering this | | | | their system or by integrating with yours, as needed. |
| attitude toward retirement, encouraging retiring | | | | It is possible to employ your retirees as independent |
| workers to remain in their field should not be difficult. | | | | contractors. To do so, it is important that they |
| What can be difficult though is coming to the | | | | provide you with information that guarantees that |
| realization that these aging workers are a valuable | | | | they should not be considered a W-2 employee, and |
| segment of the population, and that one thing they | | | | that this compliance is maintained regularly. If they |
| want more than anything else is flexibility. | | | | are consulting, they should have more than one client, |
| Due to the fact that many baby boomers may not | | | | they should not use your company’s supplies and |
| want to leave their current positions, crafting a | | | | computer equipment and they cannot receive |
| solution that benefits both the boomers and the | | | | benefits through the company. If you choose to hire |
| company is paramount. In many cases, what these | | | | a retiree as an independent contractor, it is important |
| older professionals do want is more flexibility in their | | | | that both the company and the retiree understand |
| job. If they are offered a position with the ability to | | | | specifically why the retiree has been hired as an |
| work shorter hours, have more time off, or just | | | | independent consultant. If the retiree’s situation |
| come in at busy times of the year, many retirees | | | | changes in the future, he or she should let the |
| would consider remaining in the workforce. The job | | | | company know so that you can reexamine the |
| options for the retiree are more limited than for a | | | | previous agreement. Maintaining this kind of |
| younger worker. If the individual has a pension, he or | | | | contractor compliance may become burdensome and |
| she may not be permitted to hold a full time job. | | | | administratively expensive if you have many retirees |
| Additionally, if the retiree previously worked at the | | | | to engage the services of, especially if you have |
| company, hiring him or her back to perform the same | | | | other categories of independent contractors and |
| job they held before as an independent contractor | | | | consultants performing services for your firm. In |
| places the company at risk of misclassification. | | | | addition, simply maintaining the contracts and |
| It is important to work around the limitations of hiring | | | | payments to contractors can be tedious. Consider |
| retirees, because their base of knowledge is so | | | | outsourcing these processes to a competent third |
| extensive. Allowing these individuals to leave the | | | | party firm. Many employer of record companies may |
| workforce is too large a loss in terms of knowledge | | | | offer a full suite of 1099 contractor compliance |
| and experience. To hire a worker out of retirement | | | | management and contractor payrolling and |
| takes creative thinking and problem solving skills. To | | | | consolidation services that can save medium to large |
| encourage retirees to return to the workforce a | | | | sized companies a great deal of money. |
| company needs to offer them what they want. | | | | Experienced retirees are the backbone of many |
| Flexibility, health insurance and 401k plans are all high | | | | companies. It could be a mistake to let these |
| on the list of things that make a job attractive to | | | | talented individuals walk away. Many retirees will hang |
| the retiree. Offering these benefits, though, can | | | | out at the house for a few months and then be |
| prove to be difficult if the company is trying to | | | | ready to return to action. By creating a consultant |
| maintain its classification compliance. There are, | | | | friendly company that offers flexibility and |
| however, ways to keep both the company and its | | | | competitive rates for your consultants, a company |
| valuable retirees happy. | | | | can attract many of the retiring workers that will |
| To prevent your company from running afoul of | | | | return to the job market. When a valuable member |
| costly contractor / employee classification risks, | | | | of your own team retires, let them know that the |
| consider employing your retirees through an umbrella | | | | door is open and that you will work with them to |
| company or a portable employee of record service. | | | | develop a business relationship that works for them if |
| This allows your company the benefit of having | | | | they are looking to return as an independent |
| talented and experienced independent consultants | | | | consultant in the future. |
| available to the company on an as-needed basis. The | | | | |