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How Early Retirement is Affecting Recruitment (Hint: It’s Not Good)

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Recruiters face a multitude of hurdles when it comes to hiring today, like combating historically low unemployment rates or retaining finicky millennials. As if these things weren’t difficult enough, there’s a new emerging trend that will only add to the mix – it’s called FIRE.

FIRE stands for Financial Independence, Retire Early, and it’s the latest trend people are following. The idea is to live as frugally as possible in order to save up a certain amount of money – usually in the millions – and retire by mid-thirties to forties. It may sound like the dream to those who can achieve FIRE, but it’s creating a nightmare for recruiters.

The people who can stow away this kind of cash before they’re forty are highly skilled and educated –and are often the types of candidates you dream of finding. But, they’re retiring after only a decade or so in the workforce. This leaves a void in talent for positions that require unique talents or high skill levels. You know, the hard jobs to fill.

Recruiters will be challenged again if these early retirees decide to come back to work. Many FIRE naysayers think retirees will come back to the job market eventually, due to inflation, unforeseen expenses, or just sheer boredom. This will be challenging for everyone since these once adept workers will have outdated skills and will also have to transition from retirement back to the working world, which may change a great deal in their absence.

So, what’s a recruiter to do? Just be prepared and aware of this shift in the workforce. The bright side (well, for recruiters) is that only a small percentage of the population can achieve retirement in their thirties – and many of them admit to having a head start, like having no student loans and a six figure starting salary.

Plus, there are still highly competent candidates out there who aren’t interested in retiring right when their career is taking off.

What do you think about FIRE? Leave us your thoughts in the comments below.

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