Companies don't like layoffs, but they also need to cut labor costs. So they're taking a serious thought to phased retirement, according to consulting firm Deloitte.
"Phased retirement allows baby boomers to reduce their work schedules and salaries to fit their maturing lifestyle, and in many cases allows them to work past the traditional retirement age," explains John Fiore, a principal within Deloitte Consulting's Human Capital practice. "This can help a company significantly reduce its labor costs, without allowing critical knowledge and talent to walk out the door. It can also facilitate a smoother transition to the next generation of workers."
