How to support your ageing workforce: Seven key strategies

The global workforce has a very high percentage of senior workers who, in most companies, are not offered an environment that allows them to grow, develop and exploit their full professional potential. 

It really comes as no surprise: so-called "ageism" tends to make people over 50 invisible and, as they get older, "erases" them from the different spheres of life, including the workplace. The reason? Prejudices conceive of older people as outdated and as having few aspirations. 

However, the reality is that this increasingly large and representative group of people in the workforce, especially in developed countries, has the perfect combination of experience, commitment and a desire to continue to grow and contribute to business goals. And this is not just a nice phrase. 

Let's look at it in figures:

A global study from Bain & Company reveals that by 2030, 150 million jobs will shift to workers over the age of 55, a figure nearly equivalent to the entire working population of the US. In G7 countries, experienced workers are predicted to make up a quarter of the workforce by the end of the decade, nearly 10 percentage points higher than in 2011. This trend is particularly evident in high-income countries such as Japan, where workers aged 55 and older will approach 40% of the workforce by 2030. Similar shifts are occurring in Italy, Germany, China, and Brazil, reflecting a global trend towards an aging workforce.

Over the last two decades, the retirement age has been increasing, reversing a long-term trend towards earlier retirement. In the US, 41% of workers now expect to work beyond age 65, compared to 12% thirty years ago. The UK and Japan have also raised retirement ages, with Japan experiencing a particularly challenging adjustment period. 

During the peak-Covid Great Resignation, there was a temporary increase in retirements, but many workers are now returning to the workforce. Despite this shift, organizations rarely have programs to fully integrate older workers into their talent systems, according to James Root, partner at Bain & Company.

Evolving priorities 

Despite the rising numbers of experienced workers in the workforce, few companies are investing in training or upskilling them. This lack of investment can lead to missed opportunities for leveraging the valuable skills and knowledge that older employees bring. Ensuring that experienced workers have access to continuous learning and development opportunities is crucial for maintaining a competitive and capable workforce.

Bain's research into worker motivation, involving 40,000 workers across 19 countries, shows that as workers age, their priorities evolve. Workers over 60 prioritize interesting work, autonomy, and flexibility. Many focus on mastering their craft and making a positive social impact. Older workers are more likely to be part-time or self-employed and feel more loyal and satisfied with their work. 

However, few companies recognize these changing needs. Older workers in the US receive less training than younger counterparts, and multigenerational workforce programs are rare. Andrew Schwedel of Bain & Company suggests that companies that invest in recruiting, retaining, reskilling, and respecting older workers will gain a competitive advantage as workforce demographics continue to shift.

Prejudice against older workers in the workplace can manifest in various ways, often subtly but sometimes overtly. This bias can lead to discrimination and create a hostile environment for older employees. Here are some common forms of prejudice against older workers:

1. Hiring Bias: Older candidates may face discrimination during the hiring process. Employers might assume that younger candidates are more capable, adaptable, or cost-effective, leading to older applicants being overlooked for positions they are qualified for.

2. Promotion and Advancement: Older employees may be passed over for promotions or professional development opportunities in favor of younger colleagues. This can stem from the belief that younger employees have more potential for long-term growth within the company.

3. Training and Development: Companies might invest less in training and upskilling older workers, assuming that they are less likely to adapt to new technologies or methodologies. This can limit older employees' ability to stay current and competitive in their field.

4. Stereotyping: Older workers are often subject to stereotypes that they are less innovative, slower, resistant to change, or technologically inept. These stereotypes can influence how they are treated by managers and colleagues.

5. Job Assignments: Older workers may be given less challenging or less visible assignments based on assumptions about their capabilities or energy levels. This can affect their career progression and job satisfaction.

6. Compensation and Benefits: There may be a perception that older workers are more expensive due to higher salaries and benefits, leading to decisions to hire younger, less costly employees instead.

7. Work Environment: Older employees might experience a workplace culture that subtly favors younger workers, such as through social activities, communication styles, or office design that caters to a younger demographic.

8. Retirement Pressure: Older workers may face pressure to retire earlier than they would like, either through direct suggestion or more indirect means, such as being excluded from important projects or decision-making processes.

9. Microaggressions: These are subtle, often unintentional, discriminatory comments or actions. For example, making jokes about someone’s age or assuming they won’t understand new technology can contribute to a hostile work environment.

10. Health-Related Bias: Assumptions about the health and stamina of older workers can lead to discrimination. Employers might wrongly believe that older employees will take more sick leave or be less capable of handling physically demanding tasks.

Adapting Business Practices for an Aging Workforce

Flexible working conditions, health and wellness programs, and career development opportunities are key strategies for supporting an aging workforce.

Here are 7 strategies:

1. Flexible hours, remote work options, and part-time positions can help older employees manage their work-life balance and health needs, allowing them to remain productive and engaged.

2. Implementing wellness programs that focus on physical and mental health, such as ergonomic assessments, fitness programs, and access to healthcare services, can help older workers stay healthy and maintain their productivity.

3. Providing continuous learning and development opportunities, including training in new technologies and leadership development programs, ensures that older employees can keep their skills up-to-date and continue to contribute effectively.

4. Creating policies that prevent age discrimination and promote age diversity, such as fair hiring practices, anti-discrimination training, and mentorship programs that pair older and younger workers, can help build an inclusive culture.

5. Allowing employees to gradually reduce their working hours as they approach retirement through phased retirement programs helps retain their experience and knowledge within the company, benefiting both the employees and the organization.

6. Adjusting job roles to prevent injuries and improve job satisfaction, such as reallocating physically demanding tasks or providing assistive technologies, ensures that older employees can continue to perform their duties effectively.

7. These strategies collectively support an aging workforce, enhancing their well-being, maintaining their productivity, and fostering a diverse and inclusive workplace.
   
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