How to leverage skills of older workforce cohorts? Focus on passion and autonomy.

Toward mid-summer this year the firm, Bain & Company, published new market research noting that by 2031 over 150 million jobs will shift to workers aged 55 and older. This accounts for roughly one-quarter of the G7’s total workforce. The ageing up of the working population is due to lower birth rates in many more-developed countries and also younger age cohorts spending more time completing their studies. The big question though, and this impacts markets where my teams work such as France and Spain, is how to accommodate and meet the needs of older employee teams.

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Trust and autonomy

Per the research mentioned above, a key trait of the age 55+ workforce is that they like autonomy. They have work experience, and they are skilled problem-solvers. They prefer to be left to get on with getting the job done. This does not mean that they are collaboration-averse. Instead they prefer for employers to acknowledge the skills and experience they have and to agree upfront what market-novel skills they might need to add to their team and then move forward with planning strategy and tackling job assignments. At the same time though, this is an age cohort that has different motivations for why they seek employment or choose to stay employed. Unlike the Gen Z and Millennials cohorts they are not necessarily as concerned about compensation and boosting earnings. Instead, they opt to remain in the workforce because they can engage in jobs that interest them and about which they are passionate.

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It’s a delicate process

Working with older worker age cohorts requires some planning and a lot of diplomacy. Many of this generation’s employees had dreamt of the retirement possibilities that their parents’ generation had. In France, for example, the standard retirement age had been 62 and proposals to lift it to 64 caused mass protests. Both the government and workers are now trying toreach an agreement where retirement can come at an age that does not quickly drain the public coffers, but which also does not mean that work never stops. A more positive way to look at the situation is to explore what potential benefits flexible work (or flexi-work) structures offer and invest time into tailoring longer stays in the workforce to meet the needs of individual employees. The French government has, for its part, launched programmes to make flexible work access for pre-retirees and retirees more readily available. Its current provides professionalisation support for employees aged 45 and above, where the government provides a financial contribution for a maximum 2,000 EUR to support workers who have not been employed during the previous 6 months. This support aims to give more aged employees access to training in new skills and also retraining. The government also supports companies who issue 18-month, fixed-term contracts helping workers aged 57 and over who have been registered as job seekers for more than three months; this in addition to special programmes for long-term work contracts for seniors among the long-term unemployed.

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Many pensioners or retirees active in the workforce have found, however, that they are not necessarily keen to quit active work fully. Engagement in various types of part-time employment helps keep pre-retirees and seniors active, keepstheir minds alert, and also prevents potential social isolation. The big challenge here is to find work scenarios that accommodate the need for perhaps slower-paced work involvement while delivering advanced skills that many employers are currently short on.

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Will seniors fill labour gaps?

Findings from the Bain & Company report advise employers not to wait before scouting senior-aged cohorts for either project-based or part-time (in some cases, even full-time) talent. A study by the US- based AARP group shows that currently only 4% of companies are committed to programmes that focus on integrating older persons or support a multigenerational workforce. So there is room here to grab up high-skilled senior talent or even involve this group in reskilling efforts to curb labour shortages. The Bain study notes that 22% of workers aged 55 to 64 say they need more tech skills. So this is a space where employers can marry, say, 30+ years of work experience with education in use of modern technologies to create employee teams that boast both adaptability and strategic knowledge. Creating a space for multi-generational collaboration and learning can do wonders for making a business more competitive. Senior-junior mentoring programmes and skills sharing can also help strengthen a company culture where upskilling and reskilling are not just about attending specific classes, but also involve on-the-job training through knowledge and experience exchange.

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When looking at the labour market in Spain, there is even greater concern than in other markets in Europe. Spain has one of the oldest populations on the continent with 19% aged 65 and older: a figure expected to rise to 25% by 2050. This could lead to major skills shortages in a number of important economic sectors, e.g., healthcare and education. This lack of skilled labour could eventually reduce the country's economic productivity and competitiveness. Spain is also struggling with issues similar to those faced in France: is it possible to raise the retirement age and encourage people to work longer; can companies be incentivised to work with older employee cohorts?

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As mentioned above with respect to France, and global economies in general, boosting senior activity in flexible jobs and work roles can have broader positive impacts: curbing isolation and loneliness, higher levels of activity keeping seniors healthy both mentally and physically, and enriching workplace teams with broader sets of experience and skills. Spain, for its part, has also put in place legal regulation that supports the hiring of disabled or disadvantaged seniors aged 45 in above, affording companies special bonuses for employing members of this group. Likewise, current Spanish labour laws focus on providing extra emphasis for keeping workers in the pre-retirement age cohort employed should they be at risk of losing their job and especially if the are care-givers (have dependents/children aged below 16).

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For now, no one really has a magic solution to combatting ageism and showing businesses how to benefit from older workers’ skills. But there is evidence that a more active 55+ years worker presence can benefit society as a whole: through a more productive economy and sharper, active seniors.