Leveraging an age-diverse workforce for competitive advantage

With aging populations and lengthening work lives, the proportion of older workers in the global workforce is increasing. This demographic shift is both a challenge and an opportunity for organizations to leverage the unique skills and experience of older workers to gain a competitive edge.

Understanding and integrating older workers into talent systems can help companies address talent gaps and create high-quality jobs. Bain & Company recently published a report called “Better with Age: The Rising Importance of Older Workers.” The details below summarize this report and provide actionable recommendations for HR and people leaders to benefit from an aging workforce.

Understanding the demographics + motivations of older workers

Older workers, aged 55 and above, will comprise more than 25% of the workforce in Group of Seven countries (Canada, France, Germany, Italy, Japan, United Kingdom, United States) by 2031. As workers age, their motivations shift, with a stronger focus on interesting work, autonomy and flexibility, especially post-retirement. 

Older workers often fall into the archetypes of Artisans and Givers, desiring mastery and service, respectively. 

• Artisans draw their motivation predominantly from the pursuit of perfection in their craft. They want their work to engage their interests, and they cherish the independence to innovate and create.
• Givers find fulfillment through service-centric roles. Seeing the positive effects of their work on others brings them joy and a sense of achievement.
  

Actionable steps for HR/people leaders:

• Develop tailored retention and recruitment strategies emphasizing interesting work, autonomy and flexibility.
• Implement mentoring programs to leverage the knowledge and experience of older workers.
• Consider flexible work arrangements to accommodate older workers' desire for reduced working hours
  

The importance of reskilling older workers

Despite their wealth of experience, older workers may need to upskill or reskill, particularly in technology, to remain productive in the digital and AI age. However, older workers generally assign less importance to learning and growth, and may require encouragement and motivation to participate in training programs.

• Older workers may require reskilling, particularly in technology.
• Training programs should be designed to align with the interests and motivations of older workers.
• Encouragement and motivation from supervisors can increase training participation among older workers.
  

Actionable steps for HR/people leaders:

• Identify skill gaps among older workers and create training programs to address these needs.
• Incorporate elements of interesting work into training programs to increase appeal for older workers.
• Foster a growth mindset among older workers and promote the benefits of continuous learning.

Valuing the strengths of older workers

Older workers often bring loyalty, satisfaction and a wealth of knowledge to their roles. They can provide mentoring, set high mastery standards and add value to the workplace culture. However, age-related work discrimination remains a pervasive issue, underscoring the need for organizations to respect and leverage the strengths of older workers.

• Older workers are often more loyal and satisfied at work, providing stability and mentorship.
• Age-related work discrimination is a widespread issue.
• The strengths of older workers can enhance workplace culture and productivity.
  

Actionable steps for HR/people leaders:

• Promote an inclusive, high-performance culture that values and respects the contributions of older workers.
• Implement mentoring programs that allow older workers to share their expertise.
• Advocate for fair treatment and non-discrimination of older workers in the workplace.

Older workers represent an opportunity if engaged and appropriately developed.

The demographic shift towards an aging workforce presents opportunities for organizations willing to adapt and invest in older talent. By understanding their motivations, offering relevant reskilling opportunities, and recognizing their strengths, companies can tap into this talent pool for a competitive advantage. HR leaders are crucial in shaping these strategies and fostering an inclusive, age-diverse workforce.

‍