They are voted on by whoever is on the voting board which is usually journalists, musicians and some critics. There are plenty of examples of people who keep on doing good work after being inducted. Paul McCartney has been inducted twice as a Beatle and a solo artist. Bob Dylan is still out there and The Rolling Stones are still out there, so it doesn't necessarily mean their careers are over. A lot of people do get inducted after they are deceased or a way past their prime in terms of having stopped making records, but it does not mean that a finality has occurred. The inductions occur annually