Wise Workers - The Emerging Value of Older Workers in the Workplace

Source: rocket50 Staff

July 9, 2024

Turns out that the more forward-thinking employers are finally bucking outdated recruiting practices by finally increasing their efforts to attract and retain older workers.  Read on to see why.

More than one-quarter of the workers in G7 countries will be age 55 or older by 2031. The U.S. workforce will reach this milestone even sooner—by 2028. At the same time, global talent shortages are projected to lead to more than 85 million unfilled jobs by 2030, resulting in annual revenue losses of roughly $8.5 trillion. In the U.S. alone, there are presently 9 million open jobs. Clearly, the calls for employers to embrace older workers like never before if they hope to meet their businesses’ future demands and position themselves for long-term success. Organizations simply can’t recruit enough younger workers to fill their talent needs. In fact, a study by Bain & Company estimates that approximately 150 million jobs globally will need to shift to workers 55 and older by the end of the decade.

The availability of talent is the main reasons that organizations are opening up to hiring older workers. In a study by Anselmo Ferreira Vasconcelos found that older workers are seen as more dependable and hard-working than younger workers. Yet, despite all of these factors, employers generally remain slow to shift their talent strategies, opportunity equity and corporate cultures to embrace older workers.

There are very few programs out there to address this

An AARP global survey of employers found that only around 4% had implemented programs to integrate older workers into their talent systems, and only a little more than one-quarter said they’re "very likely" to explore doing so in the future. What’s more, a mere 6% had policies in place related to unbiased recruiting processes that would foster multigenerational workforces. In the U.S., a recent SHRM survey found that 30% of U.S. workers felt they were treated unfairly at some point in their career due to their age, and 26% of workers age 50 and older said they’d been the target of age-related remarks in the previous six months. Among those treated unfairly, 72% said the experience made them feel like quitting their job. Most organizations simply can’t afford to maintain workplace cultures that support these kinds of negative employee experiences, especially in light of how crucial older workers are to their future success and their reputations as employers.

The Benefits Of A Multigenerational Workforce

Research from a variety of sources, including the Organisation for Economic Cooperation and Development (OECD), shows that age-diverse firms have lower turnover and higher productivity rates than their benchmark peers. Plus, "the experience of older workers helps younger workers perform better, thereby boosting productivity directly and indirectly," the OECD states. Employers also report that older workers tend to have superior problem-solving and interpersonal communication skills, possess a strong work ethic, offer a deep understanding of customer service and bring a larger perspective to bear on their work and that of their teammates—all of which complement the skills that younger workers bring to the table. Plus, the skillsets of older workers tend to be ones that AI technologies can’t replicate or replace, which arguably makes them even more valuable. In other words, multigenerational workforces provide deep and varied bench strength to their organizations.

As the AARP research revealed, 78% of surveyed organizations reported having a multigenerational workforce, yet just 42% provide their managers with the training and support necessary to manage such a workforce effectively; only 39% focus on how to avoid age discrimination in recruitment or hiring; and just 38% focus on how to avoid age discrimination in providing access to training opportunities.
As these statistics show, there’s still plenty of progress to be made in shifting workplace policies, cultures and opportunity equity to nurture a multigenerational workforce.

Improving Age-Related Opportunity Equity

Opportunity equity is a particular concern when building a multigenerational workforce. All too often, when speaking about their organizations’ opportunity equity, employers refer only to the hiring, pay and promotional opportunities they provide across genders, races and ethnicities. Employers need to widen their lens to include age-related opportunity equity. As a 2023 Transamerica Institute® report states, one strategy being used by many employers to foster multigenerational workforces is to promote lifelong learning—a powerful indicator that an organization supports age-related opportunity equity. The most frequently cited learning programs include mentorships and reverse mentorships (in which younger workers share their expertise with older workers), specific job training, internships for individuals reentering the workforce and professional development programs. These types of programs are strong incentives for attracting and retaining older workers. Sadly, Transamerica found that only 28% of the nearly 1,900 employers surveyed offer specific training to address generational differences and help prevent age discrimination.
 

Final Thoughts
While welcoming older workers in the workforce may still be in the early stages at many organizations, given the stark realities of talent supply in the face of an aging global workforce, smart employers will take action now to embrace this crucial talent pool and start benefitting from their wise workers now!