A recent global analysis from Bain & Company predicts that people over the age of 55 would have 150 million more jobs by 2030. 

By 2031, older and more seasoned workers will make up more than a quarter of the workforce in the Group of Seven countries, according to Bain.

“That’s a massive shift,” Andrew Schwedel, partner at Bain & Company, told CNBC.

“Japan is already at the vanguard of this with almost 40% of the workforce over age 55. Europe and the U.S. are not far behind, [with] anywhere from 25 to 30%.”

However, an ageing workforce is not just a problem in industrialised economies; the study estimates that by 2050, China’s elderly population (65 and older) will have doubled.

“Fewer young people are entering the workforce, due partly to lower fertility rates, partly to longer education,” Bain added.

“According to OECD data, a long-term trend toward earlier retirement is slowly going into reverse.”

This is also demonstrated by the current “unretirement” trend, in which retirees re-enter the workforce due to a strong job market, rising inflation, and lowered health risks from Covid.

According to Bain, the rise in retirements that occurred in the first several months of the pandemic now more closely resembles “a Great Sabbatical.”

Countries all throughout the world have raised the retirement ages in recent years, but not without opposition. Protests were started earlier this year when the pension retirement age was raised in France from 62 to 64.

“One thing I hear consistently when I talk to companies is they don’t have the talent that they want in the quantities that they wanted,” Schwedel added.

He therefore recommended companies to “put in place targeted interventions” rather than waiting for policies to be established in nations.

Only 4% of businesses, according to a 2020 global employer study, were dedicated to programmes that promote a multigenerational workforce or help integrate older workers.

“Companies that invest in recruiting, retaining, reskilling, and respecting the strengths of this group will set themselves up for success as the demographics of the workforce continue to shift,” Schwedel added in a press release.

Understanding older workers’ motivations is essential because, according to Bain’s survey of 40,000 workers in 19 countries, priorities change as people become older.

The study discovered that decent pay is the main motivator for the average worker under the age of 60. However, older people are more concerned about doing “interesting work” in a position that gives them freedom and flexibility.

“Many are focused on mastering their craft, while others feel rewarded by seeing their actions make a positive social impact,” the report said.

Schwedel added, “Motivations are different by individual and they change throughout one’s career.”

“That speaks to some of the different things that companies need to do if they’re trying to appeal to younger workers versus older workers.”

According to Schwedel, it is vital for businesses to create work environments that appeal to older employees’ motives.

According to Bain, this can be accomplished by giving them the skills necessary in the following ten years. For instance, 22% of respondents between the ages of 55 and 64 stated that they needed additional tech abilities.

“For older workers to take advantage of training programs, companies need to design programs that appeal to their pursuit of interesting work and encourage supervisors to motivate participation across all age groups,” the press release added.

Finally, employers must appreciate the skills of these individuals and provide them the freedom to perform “what they do best.”

According to Bain, this can occur through mentoring opportunities whereby they assist others in developing their specialties.

″Bringing older workers’ unique benefits to the workplace can strengthen workplace culture for everyone.”

(Adapted from CNBC.com)  

Categories: Creativity, Economy & Finance, HR & Organization, Sustainability, Uncategorized