What Happens When 25% of Your Workforce Retires?

It’s not just a demographic shift—it’s a cultural and operational reckoning.

According to McKinsey (2025), the proportion of manufacturing employees over the age of 55 has more than doubled in the past two decades. In the next 8–10 years, nearly one-quarter (25%) of the workforce is expected to retire, leaving many organizations on the brink of a massive knowledge drain. We’re not just losing people—we’re losing hard-won expertise, deep intuition, and workplace memory.

Here’s what’s at stake:

• Loss of institutional wisdom: A retiring generation of tradespeople, engineers, and foremen hold legacy knowledge that isn’t codified (Written down).

• Instability Due to Poor Leadership Development: Many organizations have underinvested in succession planning and leadership pipeline development, especially in operational roles.

• Widening gap between onboarding and proficiency: Complex roles take years to master. McKinsey reports that high-complexity jobs can show up to an 800% productivity gap between top and average performers (2025). 

So where does this leave leaders?

Many are scrambling. They’re hiring fast but struggling to close the skill gap. New hires often enter a workplace designed for an era with time-rich apprenticeships—an era that’s gone. It now takes too long to get new team members up to speed, and the productivity loss is real: one hour of unproductive labour per week due to skill gaps can cost as much as $5,900 per employee annually (McKinsey, 2024).

Here’s where it connects to the work we do with teams and leaders:

First, we must move beyond technical upskilling and invest in human infrastructure. That means mentorship frameworks that don’t just teach tasks but build relational trust across generations. Emotional intelligence, communication, and feedback training create the connective tissue that enables faster learning, smoother transitions, and stronger culture.

Second, we need to codify wisdom before it walks out the door. A system of "legacy knowledge capture"—through video libraries, storytelling interviews, and peer-led workshops—helps retain not just the 'how' but the 'why' behind key practices.

The retirement wave is coming. Organizations who navigate it with intention—investing in both the skill and soul of their workforce—will emerge stronger, wiser, and more resilient. 

Is this who you want to be? If so, send me a message and we can chat.