Around the world, people are living longer. In the UK and Japan, for example, life expectancy is now over age 80. What’s more, studies reveal we’re staying healthy for longer, which can positively impact and extend our working lives. In this article, we'll consider the aging workforce, and how to make the most of the strengths, skills and experience that older workers can bring to teams and organisations.
The aging workforce
Many adults choose to work beyond retirement age because of lower rates of pension coverage, the high cost of health insurance, and to save more money. For others, it’s about the sense of purpose and fulfilment a job can bring, as well as maintaining social contacts. For many, it may be a combination of the above. Research shows staying in work has a positive effect on our mental health, particularly when we’re free to choose what we do.
At the same time, fewer young people are working. They’re staying in education longer, finding it hard to land jobs in a tough economy, and often lacking the skills required by organisations.
The result of these trends is an increasing number of older people in the workforce. Research shows that, by 2024, one in four workers in the US will be 55 or older. (Up from one in 10 in 1994.)
There are many advantages to hiring and retaining older people. For David DeLong, author of Lost Knowledge: Confronting the Threat of an Aging Workforce, experience is key. He argues that older workers are more likely to have:
Human knowledge – expertise specific to a role such as a legacy system.
Social knowledge – relationship and team-building skills.
Cultural knowledge – the know-how to get things done in an organisation.
Because older workers have had time to find a career they enjoy, engagement levels rise with age. A Gallup study shows that translates into 21% higher profitability, 40% higher quality products and 10% stronger customer loyalty.
What’s more, you can gain a competitive advantage by employing older people who represent your target audience – and a diverse culture. In the US alone, over-50s spent more than $5.6 trillion in 2015 – compared to $4.9 trillion spent by those under age 50.
Tackling the stereotypes
Many concerns about working with older people are based on stereotypes rather than facts. For example, there’s a common belief that aging team members take a lot of time off sick. But Bupa research shows that people over 60 are less likely to be absent from work.
Despite commonly held beliefs, one study showed older team members can be just as productive and motivated as their younger counterparts. Sometimes even more so.
In fact, research across 400 studies debunks many negative stereotypes about older employees. These myths include: they’re resistant to change, not as trusting and more susceptible to work-life balance conflicts.
Top 4 strategies for managing an aging team
Follow these four strategies to manage an aging team effectively:
1. Bust myths
Most of us like to believe we’re unbiased and base our decisions on fact rather than stereotypes. But everyone makes subconscious assumptions and judgments. The key to dealing with negative beliefs about working with older people is to unravel the myths. To do it, you can:
2. Understand motivations
Do you know what drives your people? Deloitte polled over 5,000 workers – asking about their beliefs, motivations and expectations of work. For male and female workers aged 55-64, ‘making an impact’ is the top motivator ahead of money and flexible working.
You can empower older workers by giving them more responsibility and asking for their input. Do that and you’ll improve your understanding and gain knowledge, too.
3. Deal with any resentment
In a Deloitte report, 20% of respondents view older workers as a competitive disadvantage. And 15% think they’re “an impediment to rising talent”.
But research shows older workers lead to better outcomes for younger colleagues – such as reduced unemployment and a higher wage. So, you can bring up the facts to address assumptions and reassure your team members that everyone has an opportunity to progress – regardless of age.
4. Create a positive, safe work environment
Older team members can feel excluded from office culture if their colleagues are much younger. This can create a gap between the generations and dent productivity. To bridge the gap:
Include everyone in team activities. Night outs might be a no-go for some, paintball unattractive for others. So, send round a choice of activities for individuals to agree on.
Mix up teams. Got a new project? Make sure there’s a mix of older and younger staff on the taskforce.
Encourage mentoring. Older colleagues may feel valued at the chance to mentor younger employees. And they can learn new skills from their younger colleagues, too.
Key points
Despite the stereotypes about older team members, many people can and do want to contribute to the workforce as they get older. So, be aware of individual needs and any age-related biases in yourself or the wider organisation. That way, you can manage an age-diverse team in a way that will benefit them throughout their working lives.
Reference:
‘Life Expectancy’. Available at: https://ourworldindata.org/life-expectancy
‘Good health lasts later in life’ (2013). Available at: https://news.harvard.edu/gazette/story/2013/07/good-health-longer/
Cheryl Paullin, ‘The aging workforce: Leveraging the talents of mature employees’ (2014). Available at: https://www.shrm.org/hr-today/trends-and-forecasting/special-reports-and-expert-views/Documents/Aging-Workforce-Talents-Mature-Employees.pdf
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