Embracing Ageing as Business Strategy in the Longevity Era
Well, if we ever needed proof of the accelerating population ageing trend within Australia, newspaper reports were happy to provide it. The proportion of people over age of 65 has reached a record high of 17.1% whilst the proportion of people 17 or younger, which in the late 1970’s was 31% has fallen to 21.6%. Our traditional working age population is shrinking. So big business and its lobbyists resort to their usual refrain of arguing for increased immigration, letting governments worry about where are the extra population to be housed and increasing problems surrounding social inequality. The silence surrounding utilising older Australian workers, who wish to and can continue to work, as an important element in addressing the increasing labour shortage issue remains deafening.
Meanwhile around the world in response to ageing populations and tumbling fertility rates, other countries are taking a far more progressive attitude to assimilating older workers into their workforces. Business is not arguing ageing societies as a risk, a common position within Australian government and business, but now a simple reality to be dealt with and positively utilised.
In the USA the ‘unretirement’ movement is picking up pace with retired workers wanting to come back to work for all sorts of social and financial reasons. And they are finding work. One quarter of people aged 62 to 85 who had previously retired are now working again with an additional 12% planning to return to the workforce in 2024. Phased retirements are also an emerging innovation providing win- win outcomes to both the employee and company. This reflects recognition that careers are no longer linear; careers are now more fluid allowing an ability to blend work and life more closely.
Signatories of the Club Landoy Charter
In France, the embrace of workforce ageing is now being made explicit. 52 French companies under the aegis of the Club Landoy have committed to a 10-point Charter combatting ageism and developing best practice approaches to improve employability outcomes for those 50 years and over. What grabbed our eye are the commitments to:
Supporting employee skills development at every age,
Recruiting people and offering work offer opportunities at all ages and stages of careers,
Promoting knowledge transfers and experience sharing across generations.
Promoting experienced employees, highlighting inspiring career paths and role models to change ageist perceptions.
Yes, these are nice words and nothing much has so far changed, yet this is the first-time companies have so openly held themselves accountable to a commitment to act in the age inclusive workforce space. Certainly, this example, reflects how some major French businesses are realising that accelerating demographic change is right up there with climate and technological change.
What excites us about the French business example is our first insight into how senior leaders will need to model new leadership behaviours to champion this change. Specifically, business leaders will need to:
Understand the implications and opportunities of the global demographic shifts underway and how they impact both their markets and people.
Promote cultures supporting longevity which will involve letting go of pre-existing management mindsets and language to adapt to the new reality.
Update their people management systems to acknowledge their youth-oriented focus and reliance on short linear careers is no longer fit for purpose.
Integrating longevity thinking into everyday business management practice leads to another major opportunity– the positioning of age in the business world as a critical issue of business strategy, not another identity issue for the Diversity, Equity and Inclusion team to oversee on behalf of the company. Companies will benefit from understanding an ageing world as this century’s biggest demographic trend, opening exciting economic and social opportunities for both organisations and individuals.
Yet, in increasing workforce age inclusivity, more diversity by definition is added into the workplace. And as diversity research continues to demonstrate it matters. In a recent New York Times article defending the ongoing business value of diversity, equity and inclusion efforts research was provided comparing the decision quality of individuals versus teams. All-male teams, the research found, outperformed individuals nearly 60 percent of the time, but gender diverse teams outperformed individuals almost 75 percent of the time. And yes, wait for it, when age was a team variable? Teams that were gender and geographically diverse and had at least one age gap of 20 years or more, made better decisions than individuals’ 87 percent of the time. Another research example highlighting the benefits of age inclusivity within the workforce.
We recommend three actions that can get the longevity revolution rolling in your workplace:
Check if longevity and demographics have made it onto your leadership agenda. How aware are your leaders of national demographic data trends and the potential spending impacts on existing and emerging markets? Do leaders understand the age profile of their workforce and the risks and opportunities presented?
Begin looking both inwards and outwards and establishing a few basic Longevity KPIs to assess the current situation of your markets and people.
Begin defining a longevity strategy for the business.
If our Newsletter has made you reflect on your existing workplace dynamics, please contact us and let us help you take practical steps to transform your workplace into an inclusive age neutral one that embraces the longevity revolution allowing your company to develop its competitive and performance capability in a rapidly changing demographic world.
References
Aratani, L. (2023). Diversity policies face ‘full-out attack’ in 2024, leading HR boss warns. The Guardian (Dec 16). https://amp-theguardian-com.cdn.ampproject.org/c/s/amp.theguardian.com/business/2023/dec/16/diversity-dei-us-companies-backlash
Elkins, C., Frei, F. and Morriss, A. (2024). Critics of D.E.I. Forget That It Works. New York Times (Jan 21.) https://www.nytimes.com/2024/01/21/opinion/diversity-equity-inclusion-dei.html?unlocked_article_code=1.ZU0.pqe6.Hw0ODVhUlOmA&smid=url-share
Nelson, M., Kaplan, D, & Vavrek, C. (2024). Not Retiring, but ‘Phasing Out’. Korn Ferry. https://www.kornferry.com/insights/this-week-in-leadership/not-retiring-but-phasing-out?utm_campaign=03-21-24-twil&utm_source=marketo&utm_medium=email%20&mkt_tok=MjUxLU9MUi05NTgAAAGSAB5WBZZBXy5nHhioLTsOQi6XzhjvTCLHWohY6grxC_QF2oikmwFHkH77v81xp9jkXHanKThmJZLAWbR2pket9ftADCNBYBHn11ln6oqAgL4
SMH – Population is 27 million and still on the rise (March 22 2024) https://www.smh.com.au/politics/federal/australia-s-population-almost-at-27-million-after-another-spike-20240321-p5fe46.html
Wittenberg-Cox, A. (2024). CEO’s Get Serious About Longevity Leadership – In France. Forbes (Feb 1.) https://www.forbes.com/sites/avivahwittenbergcox/2024/02/01/ceos-get-serious-about-longevity-leadership--in-france/amp/
Wittenberg-Cox, A. (2024). 5 Steps to Longevity Leadership - Is Your Business Ready? Forbes (Feb 26). https://www.forbes.com/sites/avivahwittenbergcox/2024/02/26/5-steps-to-longevity-leadershipis-your-business-ready/amp/
