How to engage an aging workforce

The workforce is getting older. In 2023, retirement age workers who are older than 65 years old increased to 30%. By the early 2030s, nearly 25% of the global workforce across the most industrialized countries will be aged 55 and up, according to a report by Bain Institute. 

That means millions of employers must make adjustments to accommodate for an aging workforce. Being unprepared for an aging workforce can cost employers, business leaders, and talent teams in unnecessarily lost time and money,

Preparing now for an aging workforce can futureproof your business, actively engage your employees and their well-being, and foster a culture that’s supportive and inclusive of all workers.

Engaging the modern employee can feel like a challenge. Employee engagement is at an all-time low: more than two-thirds of today’s employees don’t feel committed, energized, or enthusiastic about their work. 

Every single day in the U.S. 10,000 people turn 65. While a lot of focus has been on satisfying the needs of the next generation, the fastest growing workforce has our oldest people. 

Many workplaces are concerned with filling the roles and knowledge gaps left behind by older and retired workers. However, there is a growing number of workers who can’t retire even if they want to. Today, 1 in 5 workers over the age of 50 have zero savings for retirement. 

People today are living longer. While they may be financially able to retire, many still don’t want to. This is a benefit! It promotes a diverse, inclusive workplace, which leads to more overall employee satisfaction and engagement.

Who employs aging workers?

A lot of workers over 50 work in a few clustered industries that range from business administration to industrial to sales. 

Some industries and sectors with a higher percentage of aging workers include: 

• Real estate brokers and agents
• Accounting (including bookkeeping and administration)
• Assistants and executive administration workers
• Postal workers
• Construction and building workers
• Apparel workers (tailors, sewers) 
• Transit workers (including bus drivers)
• Agricultural workers (including farmers)
  
  
  

Challenges facing an aging workforce 

Aging workers face an increase of challenges in the workplace. From skills gaps to stereotypes to limitation of roles, there are so many ways this group of workers feel left behind. 

Perceived skills gap

The way some tasks were performed 20 or 30 years ago is vastly different to how they are performed today. Many older workers feel left behind by this bias. Rather than being an early adopter of new technologies, older workers often try hard to quickly catch-up.

For example, think of the surge of artificial intelligence in the workplace. In the few years since ChatGPT has appeared, there have been significant changes that may be challenging for anyone to keep up with, let alone older workers wrapping their head around automation. Skills gap is one reason many older workers may be phased out or part of a disturbing trend of being “quietly fired.”

Cost

Employers may see older workers as a burden, which is an unfair stereotype. As workers get older, insurance costs and premiums may rise, and that may impact employers. 

Other costs employers may absorb include ergonomic furniture (i.e. desks and chairs), reduced hours, and potential loss of productivity due to illness. 

Stereotypes and biases

Ageism is a rampant bias: 93% of older people have felt the sting of being too old. As our workers become the oldest working cohort in our history, employers must understand the ways in which our policies, practices, and even lack of patience can leave this cohort of workers behind. 

There is a common perception older workers are bad with technology. In other words, the speed of our digital lives may be difficult for older workers to grasp. They could be slower. 

And some of that may be true, the speed of learning may be reduced, but comprehension doesn’t need to suffer if workers are properly engaged and trained. 

More stereotypes and biases facing older workers include: 

• Perceived lack of flexibility in the workplace (e.g. not adapting to new policies)
• Lack of productivity (e.g. slowing down)
• Health concerns (e.g. age = perceived health concerns that could cost productivity)
• Outdated skills

These stereotypes and biases lead to vast discrimination and, quite frankly, a reduction in historical knowledge. It’s hubris to think only younger workers are the key to any success at a business. A diverse workforce leads to an improved employee experience and engagement. 

Steps to prepare for an aging workforce 

There are solutions for employers, business leaders, and talent teams to consider long before they experience a situation with aging workers. 

Compare expectations with other generational groups in the workforce. Gen Z represents one in five workers in the U.S., and are tracking toward representing a third of the overall workforce. They have different expectations of their employers and needs that 

The following steps may help you save money, time, and turnover, while promoting employee engagement and inclusivity in your workplace. 

1. Create flexibility for schedules and tasks: 

Create opportunities for your aging workers to have a flexible schedule. Not all workers must be full-time if they don’t need to be. For example, if you have an administrative worker over the age of 65, work together on a schedule that makes sense for them. This may be a three-day work week or a five-day work week but only mornings. 

Your employees over 65 can still produce meaningful work and impact your business, while feeling fulfilled in their own way. Whatever flexibility you offer to them creates better employee satisfaction in the workplace. 

Options for flexible work schedules and tasks: 

• Hire aging or retired workers for short-term projects and contracts
• Hire for aging or retired workers for seasonal work (e.g. retail around peak selling season)
• Offer leave policies for grandparents who need to help out with their newborn grandchildren
• Ask your older works what they want their schedule to look like

This flexibility can extend to certain work tasks. Health and wellness are factors to consider when thinking about what work to assign your aging workers. 

For example, if standing or sitting for long periods of time isn’t something your aging worker can do, collaborate with them on a set of tasks and schedules to ensure deadlines are met without sacrificing quality. 

2. Offer learning and development opportunities

Technological development can outpace education of it. If your older employees feel like they are falling behind, create and promote learning and development opportunities that ensure their skills are up-to-date. 

Offer the following: 

• Pay for opportunities like certification to upskill in specific areas
• Opportunities to shadow other workers to learn new programs 
• Up-to-date documentation or guides on how to use critical programs and technology in the workplace
  
  

3. Create mentorship programs

Your older workers have an abundance of historical and interpersonal workplace knowledge. Mentorship can be applied at every level in every industry. For example, if you have an entry-level position filled with a younger worker, pair them with an experienced worker to understand rhythms of a business or work cadence. 

Facilitate knowledge transfer includes workshops and sessions run by a diverse set of workers. Create lunch and learn opportunities, if applicable, or offer office hour slots where they can talk to new or middle-career workers about what they know and opportunities for success. 

4. Offer financial wellness benefits and perks 

Younger workers demand expanded perks and benefits programs as part of their compensation, and that includes financial education and awareness.

Another benefit to consider is earned wage access (EWA), a benefit that lets your workers feel safe in the event of an emergency or need to have access to their wages ahead of payday. 

Other financial perks and benefits to offer include: 

• Discounts on insurance and prescriptions
• Access to gift cards
• Rewards and recognition
• Resources to improve credit score
• Guided tax return help
  
  

5. Address bias with your employees

No workforce will truly be prepared for aging workers if the root biases and stereotypes aren’t addressed in the workplace.

Make your workplace as accessible and inclusive as possible. Create a zero tolerance policy for discrimination against any group or person. Emphasize where your older workers create impact. 

Skilled, reliable, and experienced workers can be found at every stage of their career. 

Engage your experienced workers in ways that work for them now. Provide flexible schedules, offer interesting and new perks like access to discounts on prescriptions, and financial benefits like EWA. By doing this, you’re enriching your workplace, and bolstering employee engagement and satisfaction.