Life expectancy is increasing around the world, and this is having an impact on how we approach work and retirement. By 2054, the average global life expectancy is projected to reach 77.4 years. By the late 2070s, the world’s population of people aged 65 and over is projected to reach 2.2 billion, outnumbering children under 18.1 years of age. The normal retirement age is also expected to increase in many countries.
Increasing life expectancies, declining birth rates, and a looming retirement crisis in some parts of the world are also contributing to people staying in the workforce longer. This environment provides organizations with a unique opportunity to tap into a highly talented workforce that wants to stay engaged in ways that are meaningful to them while ensuring they are financially prepared for retirement. . 2
Debunking age-related stereotypes
Businesses and individuals have an opportunity to benefit from changes in their workforce. Longer careers and significant advances in technology are helping people experience education, exploration, and learning at different stages of life. This change provides opportunities for people of all ages to participate in a variety of activities and challenges stereotypes about age-related abilities.
Recent research 3 reveals how age-related stereotypes are currently being challenged.
Most people want to maintain their skills, and this does not decline significantly with age. The same proportion of people, regardless of age, felt positive about their jobs (just over 50 percent). More people under 45 said they were tired than people over 45. People over 60 were least tired. Older people don’t necessarily want to slow down. More than half of people between the ages of 46 and 60 want to slow down, but only 39 percent of people over 60 want to slow down.
It’s important to recognize the wide range of benefits that older employees bring to your organization. For example, it helps companies understand older consumers, a large group given current demographic trends. Older employees also offer years of experience and developed skill sets that organizations can use to train other employees. In some industries, such as logistics and healthcare, it can take a decade or more for employees to acquire the technical skills needed to excel on the job, making years of experience an important addition to an organization. It will be worth 4.
“We need to accommodate people who are living longer and have more money to spend,” said Marinus Van Driel, a partner in workforce transformation advisory at Aon. “Smart companies know that older employees have more wisdom when it comes to this growing area of the consumer market and, as a result, make older employees a key part of their workforce strategy. should be considered an element.
These measures help foster a workplace where older employees feel a sense of belonging, encouraging them to stay at work by choice rather than being forced to do so for financial reasons.
1. Make the most of the skills of older people
Some of today’s most challenging workforce issues include skills shortages and retention of established professionals. Join older workers who can use their experience, insight, and ingenuity to help develop critical skills while learning new skills to stay competitive in the job market.
Older employees often have a clearer understanding of their role, its associated responsibilities, and how to approach new projects based on past experience. They may also have a better understanding of how to deal with unexpected problems, such as project setbacks or customer complaints. Sharing this knowledge with other employees is not only a significant benefit for the business, but also gives older generations of employees a continued sense of purpose within the team. 5
“Organizations need to consider how to shape the roles of employees entering the latter stages of their careers so that they can demonstrate their skills in the best possible way, which in turn leads to job fulfillment and, in the long term, It can bring benefits to employers,” said department head Rhys Connolly. Client services for talent assessment in Aon’s Talent Solutions practice.
Despite this, the Center for Older People UK found that older workers are the least likely to receive on-the-job training. According to the World Economic Forum’s Future of Jobs Report 2023, only 36% of companies plan to prioritize employees over 55 in their diversity, equity and inclusion programs and focus on developing their workforce’s skills. Only 30% of companies plan to do so.
“As employees reach later stages in their careers, they can feel undervalued by the organization and miss opportunities to choose which employees the company invests in,” says Aon Europe. John McLaughlin, Chief Commercial Officer, Middle East Talent Development. And Africa. “Employers need to make sure their employees understand that ‘we understand your skills, we see how we can use them, and we continue to invest in you.’ I can concentrate.”
Possible solutions should focus on adapting roles to the needs of employees, making it possible and interesting for individuals to stay in a particular role for the long term. This can be achieved by:
conclusion
Here are the key questions organizations should consider when addressing these areas and adapting to the needs of an aging workforce:
How do you secure the knowledge of expert employees who have been in your industry for a long time? How do you give these employees the opportunity to assist in the hiring process and prepare a new generation of employees for success? How can we create and connect older workers with opportunities that align with their later-career goals? 2. Address health and well-being.
Older workers often have unique medical needs, and organizations can address these needs through health and wellness programs that support employees at various life stages.
A 2023 Aon survey of 1,050 workers in Germany found that health is the most influential factor in whether people work longer. 59% of women and 57% of men say health has the biggest impact on when they retire. Next, the pension savings rate was 55% for women and 47% for men. Enjoying work was cited as the third biggest influence, highlighting the importance of a strong value proposition for employees6.