With an aging workforce across Australia, Australia is on the brink of experiencing one of the most significant workforce transitions in modern history. A term coined in the US as the “Silver Tsunami” refers to the mass baby boomer retirement, who make up a significant portion of Australia’s current workforce and leadership roles.
As this shift is expected to triple the number of people aged 85 and above in the coming decade, businesses must prepare and build smarter, more sustainable workforce strategies. Utilising a highly trusted outsourced HR company, such as E.L Blue, can prepare your business for the rising tide of baby boomer retirement.
What Is the Silver Tsunami?
The silver tsunami refers to the increase in retirement rates as baby boomers and the aging population reach the end of their careers. While it was first coined in the US, this mass exodus is set to put strain on Australia’s businesses and healthcare systems in the coming years as fewer young people enter the workforce.
It is predicted that by 2030, more than one in four Australian workers will be aged 55 and over. This is particularly true for sectors such as healthcare, education, manufacturing, and public service roles where long-standing employees often have been within the same role and company long term.
It is set out that between 2025 and 2035, Australia will experience a sharp rise in retirements in roles of leadership and technical roles. This shift underlines more than a workforce shortage, but rather challenges of knowledge transfer, leadership succession and cultural continuity.
Why HR Needs to Pay Attention to the Silver Tsunami
The Silver Tsunami isn’t just a demographic shift; it marks a strategic workforce risk as the younger population is facing increasing pressures.
Without early intervention, businesses could face:
- Loss of institutional knowledge and intellectual property
- Leadership vacuums that stall growth and performance
- Higher recruitment and onboarding costs as experienced roles become harder to fill
- Generational disconnects, which can impact team cohesion and engagement
This is why succession planning and building out strategies that not only prepare for retirements but also support inclusive, multigenerational workforces that thrive on shared expertise is essential.
5 Workforce Planning Moves to Prepare for the Silver Tsunami
Map Retirement Risk
Start by identifying which departments or roles are most likely to be affected in the next 3–10 years. Use age group data and performance metrics to forecast potential gaps in capability, leadership, and business continuity.
Start Succession Planning Early
It is never too early for HR departments to start succession planning. This ensures that businesses are developing future leaders and establishing a culture of growth and knowledge transfer well before formal retirement takes place.
Capture Critical Knowledge
Using the correct programs to capture critical knowledge is important, helping to preserve operational insights that are often lost when long-term employees leave. This can be done through shadowing programs, video walkthroughs or extensive handover documentation.
Support Multigenerational Collaboration
Cross-generational teams bring diversity of thought and experience. Implement workplace relations through mentorship opportunities, reverse mentoring, and shared projects. HR departments and management should consider communication styles and expectations across age groups when implementing these collaborative sessions. Alternatively, enrol in an employee assistance counselling program for advice on how to implement these sessions.
Rethink the EVP for Older Workers
Not every older employee is ready for full retirement, and many still have valuable contributions to make. Consider offering flexible options such as phased retirement, consulting roles, or contract-based mentoring. These arrangements can ease the transition for both the outgoing generation and the younger workforce stepping into new responsibilities.
Broader Impacts of the Silver Tsunami on Australian Workplaces
The effects of the silver tsunami extend beyond internal HR planning:
- Talent shortages in highly skilled and leadership roles can affect business development and progression.
- Wage pressures as demand rises for scarce expertise can place financial constraints on businesses and governments.
- Organisational restructuring to accommodate new priorities may affect talent attraction and retention.
- Businesses may have to resort to increased use of contingent or contract workers, leading to a less informed or experienced workforce.
- Higher demand for training, coaching, and upskilling programs will be seen across businesses.
Proactive organisations are already shifting their workforce strategies to stay ahead of the curve.
The Bottom Line: A Strategic HR Response Is Critical
The Silver Tsunami is a predictable shift, which means it’s one that businesses can actively plan for. Those who invest in long-term workforce planning today will be better positioned to:
- Retain critical expertise
- Develop next-generation leaders
- Avoid reactive hiring and operational disruptions
For those who delay, the costs will go beyond financial, and businesses place themselves at risk of knowledge loss, and productivity stalled.
Where to Start: HR Tools and Support to Consider
If your organisation hasn’t begun preparing for the silver tsunami, it is time to start now. Whether you are a small business or a large organisation, the mass retirement of baby boomers will affect everyone across the board.
Here are a few practical tips to get started:
✅ Conduct a Workforce Age Audit
Understand the age distribution across your organisation to identify potential retirement risks early.
✅ Document Critical Knowledge and Processes
Capture key operational insights before they’re lost, using tools like SOPs, mentorship, and knowledge-sharing sessions.
✅ Review or Build a Succession Planning Framework
Ensure you have a clear plan in place to develop future leaders and fill critical roles over time.
✅ Engage External HR Support if Needed If internal resources are limited, partnering with a skilled workforce planning consultant can accelerate planning and implementation.
Organisations across Australia are already preparing for the future of work. With over two decades of experience, E.L Blue delivers tailored workforce strategies and succession planning solutions for businesses across a wide range of industries.
Get in touch today to get started on your succession planning.