Retaining Talent and Building a Resilient Team Amid the Silver Tsunami

This blog is the second installment of a three-part series inspired by the insights shared during the “Preparing for the Silver Tsunami: Workforce Strategies for Tax Teams” webinar. In this series, we explore actionable strategies that tax teams can use to prepare for an aging workforce and the challenges ahead. Explore the other installments on Tax Knowledge Transfer and Mentorship and Leveraging Indirect Tax Automation.

The “Silver Tsunami” is creating significant vacancies in the workforce as experienced professionals head into retirement. For specialized fields like tax, the departure of these seasoned experts creates a void that is difficult to fill. The consequences extend far beyond empty desks; they threaten the very operational fabric of a company.

As Juan Pizano, Regional Tax Director at Phillip Morris International U.S., explained, “The risk is not the vacancies… It is a risk of operational failure… We are losing knowledge. We are losing historical knowledge, institutional knowledge.” This loss can lead to operational bottlenecks, increased errors, and widespread team burnout. To navigate this challenge, leaders must focus on retaining the talent they have and building a resilient team that can withstand these shifts.

This article provides actionable strategies for creating a positive work environment that fosters loyalty and strengthens your team. We will explore how to empower employees through meaningful growth, create engaging experiences, and build a culture that makes people want to stay.

The Real Cost of Turnover: Burnout and Operational Failure

During the webinar, attendees answered the question, “What’s the biggest challenge your team faces in retaining talent?” There was a clear theme: life balance, workload, repetitive tasks, and burnout.

When a team loses experienced members, the remaining employees are often left to pick up the slack. This added workload, combined with the loss of historical knowledge, creates a high-pressure environment. The team struggles to keep up, leading to a cycle of burnout where even dedicated professionals begin to look for an exit.

Juan Pizano warns that this path leads to operational failure. “You have these knowledge gaps. You have these operational bottlenecks; your team and you as a leader, you will try to deliver… but it’ll end up in burnout.” It is a downward spiral where the loss of one key person puts stress on the team, causing others to leave, which further compounds the problem.

The solution is not to simply work harder. It is to build a resilient organization where processes and culture support the team, making the departure of any single individual manageable rather than catastrophic.

Creating an Environment Where People Want to Stay

Retention is not about lavish perks or forcing people to work late with the promise of free food. As Juan Pizano bluntly stated, “Pizza nights are not a strategy.” True retention comes from creating a work environment where people feel valued, see a path for growth, and believe in the work they are doing.

Sam Dagley, Tax Principal at PWC, emphasizes the importance of a positive environment. The goal is to “create a tax function, you want to create a group or a team where when people do choose to move on, you’re going to miss the relationship with that person, but the work in the organization isn’t going to suffer.”

Here are key elements for building that environment:

• Empowerment Through Ownership: Give your team members the autonomy to be “little entrepreneurs,” as Sam Dagley suggests. When employees have ownership over their work and the ability to improve processes, they become more engaged. This fosters a sense of pride and responsibility that goes beyond just completing tasks.
• A Culture of Belonging: People spend a significant portion of their lives at work. Creating a sense of belonging is crucial. Juan Pizano notes, “I love coming to the office because I can see and I can sense that belonging that I’m doing something with a purpose.” Whether your team is in-office, remote, or hybrid, fostering connection and a shared purpose is fundamental to retention.
• Redefine Urgency: In high-pressure environments, everything can start to feel urgent. This creates constant stress and contributes to burnout. Juan Pizano advises leaders to “rationalize the use of the word urgent… If everything is urgent, go back and see your process because your process is broken.” A well-defined, efficient process eliminates manufactured emergencies and allows the team to focus on what truly matters.

From Experience to Experiences: Fostering Growth

Monotony is a primary driver of turnover. When employees feel they are stagnating, doing the same repetitive tasks day after day, they lose motivation. To combat this, leaders must shift their focus from simply accumulating “years of experience” to creating meaningful “experiences.”

Juan Pizano draws a clear distinction: “Experience is just adding years of whatever you do. But if you can turn that into creating experiences, smaller moments, projects that you participate in… you will feel that things are moving.”

Here is how you can create these valuable experiences:

• Offer Diverse Projects: Instead of confining team members to a single function, allow them to participate in different projects. This broadens their skill set and exposes them to new challenges, keeping their work interesting and dynamic.
• Provide Growth Opportunities: Succession planning is not just for mitigating risk; it is a powerful tool for employee development. When you actively prepare someone for the next step, you show them they have a future with the organization. This builds loyalty and motivates them to invest in their own growth.
• Encourage Continuous Learning: Give your team the time and resources to learn new skills and become more efficient, especially with new technologies like compliance intelligence. This not only makes them more effective but also demonstrates that the company is invested in their professional development. When people feel they are growing, they are less likely to look for opportunities elsewhere.

Building a Resilient Future

Retaining talent in the face of the Silver Tsunami requires a proactive and people-centric approach. It involves building a supportive culture, providing meaningful growth opportunities, and protecting your team from the chronic stress of burnout.

Start by evaluating your work environment. Are your team members empowered? Do they feel a sense of belonging? Is your definition of “urgent” creating unnecessary pressure? By focusing on these areas, you can create a resilient team that not only withstands the challenges of a changing workforce but thrives.

The goal is to build an organization where people are not just cogs in a machine but valued contributors who are excited to be part of the team’s success. This is how you retain your best talent and ensure the long-term health of your tax operations.

This analysis is intended for informational purposes only and is not tax advice.  For tax advice, consult your tax adviser. See the full disclaimer here.