People want more flexibility around work, and that includes the right to work past retirement age. The number of people of working age (15-64) is plateauing across the globe and contributing to a persistent staff shortage.
But 80 percent of over-65s like the idea of working through retirement. Companies looking for experience and proven track records in relevant roles can rely on retired talent to plug those skills shortages, but must be willing to demonstrate flexibility to accommodate their individual needs. Here’s how the rise of unretirement can help businesses, employees and even governments with today’s working-age population problem.
the effects of falling working-age rates
The baby-boomer generation is now 57-75 years old, and many are either due to retire or have already done so. This, in combination with declining fertility rates since the 1970s, means more people are now leaving the working-age bracket (15-64) than entering it. Having a shrinking working-age population isn’t just about growing skills gaps and talent shortages for businesses; it can also limit economic growth, and strain social welfare systems.
Some countries feel the aging population problem more than others, like Japan, but most countries will have to tackle this issue in the coming decades, according to Randstad Insights. And it's not just a problem for governments and businesses — a struggling economy, high inflation, and falling government aid have changed employee's views on when they think they will retire: 70 percent of those surveyed in our latest Workmonitor report said their financial position prevents them from retiring as early as they would like.
an experienced talent pool
Those who are considering unretirement are doing so in part because of financial instability. Last year, 61 percent thought they’d retire before 65, now only half think this. But employment is more than just a paycheck. Nearly a third of survey respondents in the Workmonitor report said they need work in their lives, be that for the social aspect, to achieve unmet goals, or just to keep busy. Midge Streeter, a career coach at Randstad RiseSmart at 72, says she still chooses to work because she is passionate about helping people be the best version of themselves, regardless of age.
Working every day helps me stay relevant, in tune with new technology, economic trends, and continuous learning.
Some people want to work past retirement age or return to work having retired early, and businesses should welcome them back with open arms. Why? In a word — experience. Older members of staff can bring with them a plethora of valuable skills, explains Streeter.
“Older talent provides several benefits to potential employers, including a strong work ethic. These folks don't miss work, they exceed performance expectations, and they collaborate with and influence teammates to reach a higher level of performance.”
Dr Emily Andrews, Deputy Director for Work at the UK’s Centre for Ageing Better, says employers greatly value the experience, skills and perspective that older employees bring. They particularly welcome the varied viewpoints and attitudes a multigenerational workforce can provide, and studies support employers’ views on the benefits.
“Research by the OECD finds that businesses with a 10% higher than the average share of staff over 50 are more productive, while another study has shown that multigenerational workforces rank best for innovation,” Andrews says.
Having experience in handling numerous challenges over many years can help forge excellent problem-solving abilities and build industry-specific wisdom. Plus, using mentorship programs can help preserve that industry knowledge within the company, by facilitating opportunities for older staff to pass down information to younger generations.
facilitating the return to work
Solving the issue of finding these qualified retirees, some businesses are utilizing an alumni approach to stay in touch with ex-staff, leaving the door open for dialogue about returning to work in the future. For those without an alumni network, recruitment adverts that showcase relevant company benefits targeted toward the older generations can help find those who wish to “unretire”, or seek out special interest groups.
“Reach out to organizations where older employees are looking for opportunities, such as the AARP in the US,” advises Streeter. “Use word-of-mouth referrals and current employee referrals; create a formal program to target older candidates as an element of a DEI program; and steer clear of biased questions during the interview process, which may be viewed as age discrimination.”
Andrews also highlights the importance of avoiding bias. “Once employers have crafted their job ads to appeal to the older demographic, the next step is making sure there are no biases in recruitment processes keeping older staff out. Our Good Recruitment for Older Workers guide contains lots of tips on how employers can make their whole recruitment process more age-friendly.”
Cultivating a tolerant and welcoming atmosphere at work goes without saying. Still, companies can emphasize the value of their older workforce to help facilitate what could be a daunting experience for some. Many retirees may have regular commitments with grandchildren, health-related appointments, or perhaps just want to slow down without stopping altogether.
Companies that are flexible on hours or location of work are better placed to attract older employees who may wish to work part-time, opening up their talent pool considerably.
flexibility to transition to retirement
Some talent may be looking to retire soon, but do not wish to move from full-time work to retirement overnight. And some companies are already providing older team members with a transition plan for their eventual retirement, allowing them to gradually wind down work over a period that suits both parties. Empathetic and flexible businesses will win back the talent, and even extend the working life of their experienced workforce.
In return, these employees can plug skill gaps and provide training to the next generation, while bolstering their financial position and finding continued meaning and gratification from work for as long as they want to.
