Why the Older Workforce is key to Driving Digital Transformation
Source: rocket50
By: rocket50 Staff
Date: February 17, 2023
Why the Older Workforce is key to Driving Digital Transformation
There’s a digital revolution taking place across the globe. In every workplace, transformation is happening as a result of automation, artificial intelligence, globalization, and demographic changes. What is interesting however, is that the common perception continues to persist that it's only younger employees that are the ones to drive change.
Counter to this widespread belief, companies will need to employ more mature workers if digital transformation initiatives are to be successful. The aim should be to build age-diverse, multidisciplinary teams. In this article, we will look at why 50-plus employees are so important in these times.
Mature Workers Make Up a Growing Portion of the Workforce
Older workers (age 40 and over) make up a sizable portion of the U.S. labor force. Roughly 43% of the labor force in 2020 was above 44, according to the U.S. Bureau of Labor Statistics US Bureau of Labor Statistics with over 23% older than 54.
While older worker participation in the labor force decreased significantly at the beginning of the pandemic, it has rebounded to nearly pre-pandemic levels. In fact, participation of people over 54 in the labor force grew from 32% in 2000 to about 39% in 2020, according to the BLS.
Going forward, the labor force is expected to increase by 8.9 million, or 5.5 percent, from 2020 to 2030 and while the labor force of people ages 16 to 24 is projected to shrink by 7.5 percent from 2020 to 2030, among people age 75 years and older, the labor force is expected to grow by 96.5 percent over the next decade.
Given the increasing number of older people who are working – and those who would love to re-enter the workforce, businesses cannot afford to ignore them during the digital revolution.
Mature Workers Have Soft Skills That Continue To Be Necessary
Employees in almost every field need certain soft skills in order to be effective in their jobs. As the pace of digitization increases, these non-technical skills separate human workers from machines. They relate to how individuals manage their time duties, solve problems, communicate and engage workers and customers. Soft skills can be learned in school, but they become refined with time and experience. That’s why older workers are more likely to be well-equipped with them.
In-demand soft skills include:
- Creativity
- Emotional intelligence
- Adaptability
- Critical thinking
- Teamwork
- Work ethic
Multigenerational Teams Help to Drive Business Success
When teams are made up of people of varying ages, there’s a greater diversity of talent and thought, more opportunities for learning and mentoring and heightened creativity, innovation, and productivity.
Mature employees have both on-the-job experiences and life experiences to guide their younger colleagues. They also possess unique knowledge and strengths gained from the period in which they grew up. Given what they know about career advancement, interpersonal skills, and other crucial areas, they’re assets to any business.
More Committed to the Job
Older workers remain with their employer longer than younger workers, according to the BLS. 35% of workers from age 45 to 54 left their jobs before the two-year mark, while 57% of workers ages 25 to 34 left their employer within two years.
Employees who remain at a company for a number of years are more successful at adapting new technologies and learning and adapting from the culture change that is required for a company to succeed.
Older Employees Can Help to Fill The IT Skills Gap
In the world of IT, "legacy" skills are in demand, according to Greg Schulz, an analyst with StorageIO Group in Stillwater, Minn.
"Many retired IT professionals can take care of, fix and support legacy equipment and software that continues to run in major financial institutions and in large enterprises," Schulz said. "Those in the over-50 crowd grew up in IT in environments that are not that different from what they are today even though the terminology and tools are different. They are a bright bunch and can be brought up-to-date rapidly, should they wish for a new challenge."
Organizations in any industry should look inwards when they face skills gaps. There are numerous benefits to be gained from recruiting internally and engaging 50-plus employees. These include faster onboarding, reduced turnover, and higher morale. Older workers also tend to do an excellent job of maintaining the organization’s culture. By reskilling and upskilling older workers so they can fill newly created positions, organizations can create a bridge between the past and the new, highly digital future.
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