How the unretirement wave can give your business a competitive edge

Managing a workforce that spans five generations presents numerous challenges, but it also opens up a wealth of opportunities. Here’s a heads-up: The real key to fostering teamwork across generations, enhancing cross-functional cooperation, and deploying enterprise-wide resources and tools to tackle complex issues and capitalize on opportunities lies in focusing on culture, human behaviour, and adaptability—more than on technology, data, and processes. A company culture that honours each person’s uniqueness while promoting unity within a diverse workforce lays the groundwork for a thriving, enduring digital business.

The essence of digital transformation lies in people and their capacity to rally around a shared goal, work together to propel it forward, and adopt new tools in ways that serve the company, its customers, and the wider community effectively. Encouraging collaboration among different generations is a crucial aspect of this endeavour.

Which is why the ‘unretirement wave’ is such a great opportunity for organisations to leverage, particularly with so many South African firms struggling with skills gaps. The ‘unretirement wave’ is growing trend where individuals who have previously retired from the workforce choose to re-enter employment. This phenomenon is increasingly observed across various industries and geographies, driven by a combination of economic, social, and personal factors. Key reasons include the need for additional financial security due to insufficient retirement savings or pensions, the desire for continued engagement and purpose, and the benefits of staying mentally and physically active.

While the economic reasons behind the unretirement wave is a response to rising living costs, healthcare expenses, and the realisation that savings may not suffice for a longer-than-expected retirement period, the social reasons behind it are a great opportunity for businesses to leverage. There is a changing perception of retirement, and talented individuals are looking to maintain their social connections, contribute to society, and leverage their expertise in a business environment.

The advancements in technology and the increased flexibility of work arrangements, such as remote work and part-time positions, have made it easier for retirees to find suitable employment opportunities as well. This trend not only benefits the individuals by improving their financial stability and well-being but also addresses workforce shortages and adds valuable experience and diversity to the labour market.

How to harness the potential of retirees

It is the ideal time for forward-thinking business to reconsider employer strategies to accommodate and harness the potential of older workers re-entering the workforce.

Retirees often seek to maintain a sense of purpose, continue professional development, or enjoy the social interactions the workplace offers. Unretirement allows them to engage in meaningful activities and leverage their skills and experience. This is why ‘unretirees’ often make such good mentors: they want to be engaged and they enjoy sharing their hard-won skills and expertise. For younger tech-savvy employers, this is also an excellent opportunity for skills sharing, where retirees mentor on soft skills, the non-technical, interpersonal, and people skills that enable someone to interact effectively and harmoniously with others in the workplace, in exchange for the technical hard skills that they may be lacking.

Skill sharing in this way can have a positive impact on workplace culture as well. Cross-generational sharing and learning supports a collaborative and continuous learning. A 2020 study conducted by The World Economic Forum revealed that companies with workforces spanning multiple generations gain a substantial competitive edge through a robust talent pipeline, enhanced workforce consistency and stability, and better retention of knowledge.

The unretirement wave offers several benefits to businesses:

Unretiring individuals bring a wealth of knowledge, skills, and experience, which can be particularly valuable in industries facing skill shortages.

Seasoned professionals can mentor younger employees, facilitating knowledge transfer and contributing to workforce development.

Including workers of different ages adds to the diversity of the workforce, which can enhance problem-solving, creativity, and innovation.

Leveraging a new recruitment landscape

Companies may need to adjust their recruitment strategies to attract and retain older workers. This could include offering more flexible working conditions, focusing on meaningful work, and recognising the value of experience. Retention and engagement strategies will also need to shift. Businesses might need to rethink career development and benefits to cater to the needs and preferences of older employees.

However, by leveraging the skills and expertise of retirees, organisations can address immediate skill gaps more efficiently while developing long-term solutions through training and development programs.

How Quest can help

For almost 50 years, we’ve been a trusted link between exceptional talent and employers in the country. We pride ourselves on service excellence and the quality of our people and have maintained connections spanning decades. We provide businesses with flexible access to high-performing talent across different needs and generations, delivered by experts and supported by intelligent insights.

For more thought leadership articles, visit our insights hub: https://www.quest.co.za/insights/