The Age-Inclusive Workforce Train: Are You Onboard for the Ride?

29 Jan

Over our Christmas break we had a chance to catch up with two major research studies of last year examining global predictions surrounding the evolution of older workforces and the ongoing business change resistance to the trend. One report is from the OECD exploring the challenges of an ageing workforce through mid- career development opportunity. The other through the global management consultant Bain& Co is jumping on the older worker bandwagon with its analysis of the rising importance of older workers. The underlying common message in both is a clarion call for urgent action considering the relentless pressure of global demographic changes. After sleepwalking for decades on addressing issues surrounding inhabiting a world of increasing ageing, governments and business now need to become wide awake as the impacts of this trend are becoming clearer. Business as usual is not an option.

A few insights grabbing our attention include:

Today, people between the ages of 45 and 64 account for some 40 percent of the working-age population in OECD countries, up from 28 percent in 1990.
According to Bain analysis by 2030 150 million jobs will have shifted to older workers globally.
In the G7 country bloc workers aged 55 and older will exceed 25% of the workforce by 2031, nearly 10 percentage points higher than in 2011.

Yet despite these trends and forecasts, the reports reinforce the continuing entrenched issues of ageism in business and a lack of corporate interest in quickly adapting to this demographic mega-trend. The different reports note:

The employment age profile follows an inverted-U shape; employment rises and peaks around age 45 and then declines sharply after age 50.
Hiring managers cling to a deeply held perception bias against job candidates over the age of 45, still believing they are less able to adapt to new technologies or learn new skills.
Workers aged over 45 account for an outsized share of the long-term unemployed – 44 percent on average in the OECD report.
In a 2020 AARP global employer survey fewer than 4% of firms were already committed to programs to integrate older workers into their talent system.
Only a further 27% said in the AARP report they were “very likely” to explore this path in the future.

The findings of inverted U shape age employment profiles and a lack of company interest in integrating older workers into their talent systems is no surprise to us. Our regular readers know that we believe the term ‘talent’ has become synonymous with younger workers and explicitly ageist in its meaning for hiring managers. We maintain for older workers to be seriously considered as both hires and succession planning candidates business needs to drop the ‘talent’ term from its corporate lexicon.

However, both reports highlight factors that provide some grounds for optimism. The positive news that emerges includes:

When companies do hire people over 45, those workers perform on the job just as well as or even better than their younger counterparts.
Companies with thriving intergenerational workforces tend to see higher productivity than those skewed too heavily toward just one end of the age spectrum.
Older workers feel more loyal to their employers with data showing workers aged over 55 are five times less likely to change jobs compared with workers aged 20-24.

A need for companies to challenge their existing ageist thinking and facilitate pathways towards age friendly workplaces is also matched by a requirement for older workers to be open and adaptable in their thinking. The reports highlight two important factors older workers need to be sensitive to:

Addressing their own biases particularly overvaluing the perceived benefit to an organisation of their experience. Increasingly, employers are putting a premium on candidates who have engaged in relevant training and upskilling.
Midcareer and older workers because of the above will need to keep building their skills, particularly digital ones.

The reports highlight companies and policymakers have an important role in increasing older worker employment opportunities. A lack of training opportunities for mid-career and older workers is highlighted as a significant barrier. Two critical actions companies should be implementing include:

Targeted interventions aimed at making training more engaging and available for workers around the critical midcareer moment of age 45 and older.
Altering their recruiting processes to remove the pervasive biases that currently exist against midcareer and older job candidates.

We at EncourAGEEQUALITY can think of a number of other age inclusive workplace initiatives companies could be undertaking that would benefit employees of all ages and contribute to improved business results.

In 2024 the global ageing demography clock continues to tick louder. The consequences continue to become more apparent to companies around the world and their senior leadership moanings about talent shortages, skill gaps and the weakening loyalty of younger workers to their firms. One ready solution presents itself to the extent companies are willing to embrace a simple workplace innovation- the development of age inclusive workforces. Research and increasing practical evidence is demonstrating the inclusion of more older workers within the workplace is delivering stronger business outcomes than workforces heavily skewed to a younger age. The age inclusive workforce train is leaving the station. Are you on for the ride or still left at the station of yesteryear?

If the above insights have made you reflect on your workplace dynamics, please contact us and let us help you take practical steps to transform your existing workplace into an inclusive age neutral one that develops your competitive and performance capability.