ELDERS AND HOW THEY CAN REINVIGORATE THE WORKFORCE

Practically everybody demands respect from his or her coworkers, so too, should elderly folks be treated. Never undervalue the skills of an older person in the workplace.

Sexagenarians, septuagenarians, octogenarians, and all the other succeeding genarians will soon be in abundance throughout the planet. The post-World War II baby boomer generation is entering its sixth and seventh decades, and the globe is seeing a massive demographic transition as a result. These figures are also expected to have a significant impact on one aspect of life: the workplace. According to a recent analysis by the US Bureau of Labour Statistics, by 2026, more than one in ten workers will be older than 75. It is twice as high as it was in 1996. Similar to the scenario in Japan, the nation with the oldest workforce on the planet, about three out of ten workers will be between the ages of 65 and 74.

There are two reasons why population aging might have a significant negative impact on the economy. One is that an aging population will result in fewer workers overall, which will result in fewer people contributing to the economy. The second factor is the level of productivity of each worker. While there is a natural reduction in mental ability as we age, as our brains might begin to shrivel, these changes mostly impact what is known as "fluid intelligence," or the capacity to tackle new issues. However, "crystallized intelligence," which comprises verbal thinking and learned knowledge, really keeps improving well into our 90s. Additionally, it's crucial to keep in mind that not everyone ages equally or at the same rate; some people in their 70s will still be better at these tasks than much younger workers.

Furthermore, contrary to popular belief, there is no conclusive evidence that older workers are inherently less productive. According to a 2018 study, there is no connection between the success of private sector companies in the UK and the number of older employees they have.

Some countries are already into this. In Japan, Prime Minister Shinzō Abe has become renowned for his ‘Abenomics’ – a set of practical reforms designed to reinvigorate the sluggish economy. As part of his flagship program, he has overhauled the nation’s social security system to make it possible for workers to put off collecting their pensions and keep working for longer.

For one thing, Abe has also vowed to raise the age of retirement. To incentivize companies to hold on to their staff, he’s making it a legal requirement for them to allow their staff to keep working until the age of 70, should they want to.

In Germany, where the number of people of working age is set to?shrink by 10%?between now and 2040, they’re focusing on training. The innovative Initiative 50 Plus program was developed to encourage older workers to remain working longer. It includes schemes such as pairing unemployed young people with unemployed old people, to encourage them to learn from each other. It also provides older workers on lower salaries with financial support.

These incentives aren’t just about being nice to older people. There are real economic gains to be made by investing in these workers.

The idea is to work long and hard. According to a?2015 report?for the UK government by the pensions expert and political campaigner Ros Altmann, holding on to workers for just three years beyond when they would usually retire could add ￡55 billion to the British economy.

As if that weren’t reason enough, the evidence suggests that retaining older workers would also have the tantalizing—and rather unexpected—benefit of boosting the wages and employment prospects of younger generations, too. The idea is that if more older people stay at work, they’ll have more money to spend, and this benefits the economy, which is good for everyone.

The world’s population might be on an unstoppable course toward old age, but this demographic transformation doesn’t have to come with crippling economic consequences; instead, we can view it as an opportunity. And changing our attitudes towards old age – and the potential of older workers – is the first step.

The idea that one generation is superior to another or more effective is a myth. The best businesses combine lessons learned from the past with the independence that comes from having little historical precedent.

by Oladapo Afolabi (OND, Bsc(hons) MBA (OAU Ife), Msc (UoD)