With a current population of approximately 11 million, the older workforce has expanded nearly fourfold since the mid-1980s. This growth is partly fueled by the rising numbers of individuals aged 65 and above, with the majority of the Baby Boom generation now crossing this milestone. In fact, 19 percent of Americans ages 65 and older were employed in 2023—nearly double the share of those who were working 35 years ago. By 2031, 25 percent of the workforce will be over age 55.
An emerging trend reveals a changing perspective among companies regarding the value of older workers, especially as labor shortages persist in specific industries and positions, and 81 percent of talent acquisition professionals find it difficult to fill roles. Increasingly, organizations acknowledge the 55+ demographic as a valuable talent pool to be cultivated.
The benefits senior workers bring to the workforce
The aging workforce presents numerous benefits for employers hiring older workers. Here are some advantages:
- Experience and expertise: Older workers often bring a wealth of experience and expertise to the job. They have typically spent years honing their skills and can offer valuable insights and knowledge to your organization.
- Reliability and work ethic: Based on research from Columbia University, older workers are known for their strong work ethic and lower absenteeism. They tend to be committed to their jobs and have a sense of responsibility toward their work tasks and deadlines.
- Lower turnover rates: Businesses with a 10 percent higher representation of older workers than their competitors experience a 4 percent reduction in turnover rates compared to companies with a lower proportion. Although this disparity may appear modest, losing and replacing an employee typically costs your business one to two times their annual salary. In addition, older workers may have already established their careers and are less likely to change jobs than their younger counterparts.
- Mentorship and training: Mentorship is deemed essential for career success by 79 percent of Millennials, and 73 percent of GenZ employees express a preference for receiving one-on-one instruction. Senior workers can serve as mentors to younger employees, passing on valuable skills and knowledge. They can also participate in training programs—both as learners and as trainers—helping to develop the skills of your entire workforce.
- Diversity and inclusion: Hiring older workers promotes diversity and inclusion in the workplace by creating a multi-generational workforce where different perspectives and ideas can flourish, leading to innovation and improved problem-solving. In addition, a Journal of Applied Psychology study found that participating in a workplace environment comprised of individuals from various age groups increases motivation among both senior and junior workers and bolsters their commitment to remain with the organization.
- Reduced benefit costs: Older workers may already have retirement benefits or healthcare coverage through other sources such as pensions or Medicare, reducing your company’s burden of providing costly benefits.
- Stability and continuity: Senior workers can provide stability and continuity in the workplace, especially during times of organizational change or transition. Their presence can help maintain productivity and morale during challenging periods.
Attracting and retaining senior workers
Your company can attract older workers by implementing strategies tailored to their needs, preferences, and the value they bring to the organization. Here are some specific steps you can take:
- Age-inclusive recruiting practices: Review your recruiting processes to ensure they are age-inclusive and free from bias. Why is this important? An AARP report reveals that around two-thirds of adults over age 50 perceive discrimination against older workers in the workplace and 90 percent consider ageism to be prevalent. Use language in job postings that emphasizes your company’s commitment to diversity and inclusion and actively seek out older candidates through targeted recruitment efforts.
Related: Optimizing Talent Acquisition: Strategies for Maximum Efficiency
- Workplace flexibility: Offer flexible work arrangements such as part-time schedules, remote work opportunities, and flexible hours. Many older workers appreciate the ability to balance work with other commitments, like caregiving, and fulfill personal obligations like grandchild school pick-up and drop-off.
- Competitive benefits package: For those workers who don’t have Medicare benefits and pensions, offer a comprehensive benefits package that includes health insurance, retirement plans, and other offerings that appeal to older workers—such as hearing benefits, more time off to go to doctor’s appointments, and grandparent leave.
- Professional development opportunities: According to 57 percent of workers over age 50, younger employees are given precedence over older colleagues when it comes to access to learning and growth opportunities. And, approximately 20 percent of workers planning to retire within the next year would reconsider their decision if their company offered genuine opportunities for them to acquire and enhance skills. Provide and promote training and development programs that cater to the needs and interests of older workers. Offer opportunities for skill-building, mentorship, and career advancement to help senior employees stay engaged and fulfilled in their roles.
- Phased retirement: Phased retirement—also known as partial retirement—is an arrangement that enables employees to gradually transition into retirement. This approach benefits workers by providing ongoing income and aiding in the adjustment to stopping work. Additionally, companies benefit from phased retirement as it allows retiring employees to train other staff members while sharing and preserving their unique organizational knowledge.
The global talent pool of individuals over 55 is a valuable yet often overlooked resource. As companies prioritize stability and innovation, the pivotal role of the aging workforce becomes increasingly evident. With their experience, reliability, and lower turnover rates, senior workers are indispensable assets. To attract and retain older workers, organizations are reevaluating recruitment and retention strategies fostering inclusivity, offering flexible work arrangements, and prioritizing professional development. Embracing the strengths of older workers is essential for nurturing a diverse and adaptable workforce in the face of talent shortages.
Related: Expanding Talent Pools Through Skills-Based, Neurodivergent, and Senior Hiring
Are you looking to implement strategies tailored to the senior workforce’s needs and preferences but unsure where to start? Contact WorkLink Group today.
