Incentivizing Faculty Retirement
Recent news has highlighted how the economy is making aging faculty more reluctant to retire and slowing colleges’ ability to hire new faculty. And this week saw a New York Times feature interviewing diverse faculty about the issue. Mary Coussons-Read, a professor of psychology at the University of Colorado Denver, summarizes some forward-thinking approaches institutions have tried to offering faculty retirement incentives. When Buyouts Cost Too Much There are institutions that have tried faculty buyouts — for instance, offering a financial lump sum for faculty who retire at the end of the year — but this can prove quite expensive. Offering an array of options for phased retirement allows you to both manage the expense and negotiate a plan that better fits the needs of your individual faculty. “You want to offer an arrangement that allows your faculty to plan for retirement,” Coussons-Read notes, “and that helps your institution plan ahead for reallocating anticipated salary savings toward new hiring or other investment.” If your faculty are signing three- or five-year retirement agreements, then retirement becomes predictable. “Many faculty face both financial and psychological barriers to retirement, and you need to determine what barriers a particular individual faces and use that knowledge as […]