If we are going to successfully surf the retirement wave, in-demand jobs need to be filled. The younger generations which include Generation X, Millennials, and Generation Z cannot fill them all. Therefore, one of the main things that needs to change is how we think about retirement. In order to do that, we need to bring pensioners back into the workforce. If we can do that, it represents a potential economic gain of 3.5 trillion USD.
Older workers face challenges in the labor market
Given the trends of an aging society, labor shortages, and pension shortfalls, it is clear that we need to provide the opportunity to participate in the economy to those who want to contribute. According to findings from the Mobilising the potential of active aging in Europe (MoPAct) Project, only 20–25% of healthy life expectancy is genetically predetermined meaning environment and lifestyle choices have a huge impact on quality of life. Working is a lifestyle choice that can positively impact a retiree’s quality of life.
One of the biggest hurdles to the employment of pensioners and older workers is society itself. The main obstacle Silver Agers face is being re-employed after having been let go or having quit. The 55–64 age group has a much lower re-employment rate than the 35–44 age group. If the older generation wants to be a part of society, we should let them. They have a variety of skills and knowledge that make them qualified for many of the jobs that currently sit vacant. They are also eager to work alongside younger generations but due to age discrimination, face an uphill battle when looking for work.
Baby boomers are just as productive as younger generations
In order to change how we see older workers, it is important to re-frame our inherent biases and break these stereotypes. Studies show that Silver Agers are just as productive as any younger demographic. So where does this bias come from? The misconception comes from a lack of contact. Currently, only 3% of young adults speak to someone over the age of 53 outside of their family on a daily basis and vice-versa. This needs to change if both young and old are going to live together and the workplace is the perfect environment for this to happen. It gives everyone the opportunity to learn and grow together.
In order to facilitate the reintegration of pensioners in the workforce, we need to acknowledge that many of them have different preferences with regards to working hours. For example, in Japan, over 50% of people want to work part-time and less than 25% want to work full-time. In Canada, over twice the amount of people over the age of 65 work part-time compared to full-time. In the UK, 60% of those over 50 want to continue working past age 65 but on a part-time basis. The rest would like to continue in their current positions but with more flexible working options. Companies need to consider job redesign strategies to not only retain an aging workforce but also attract an older workforce as well.
The future of work requires public and private sector support
Job sharing is a work arrangement where two part-time workers share the workload of a full-time worker. In order for job sharing to work, communication between the workers sharing the job is key as well as acceptance of this work arrangement by other team members and management. There are various ways to split a job depending on the tasks involved but popular formats include the island approach, where each worker is responsible for tasks that do not overlap, or the twin approach, where job sharers simply divide the days.
Job creation for older workers is also a strategy that should be explored. Silver Agers will be one of the dominant segments of the population, but we continue to target products to younger people even though they have less disposable income than a typical person above the age of 55. It will become increasingly important to get input from this demographic on the usability of products that they themselves will use. The use of assistive information and communication technology that increase the quality of life of Silver Agers is seen as an untapped resource with lots of potential. A strong recommendation from MoPAct is the consultation and participation of Silver Agers in the design process of these future devices.
Widening the diversity of a workforce can also add a significant boost to a company’s bottom line. In the UK, McDonald’s attributed a 20% higher customer satisfaction rate to diversity initiatives, specifically opening up their talent pool to Silver Agers. They implemented a Family and Friends Contract which allowed family and friends working in the same restaurant to cover each other’s shift without prior approval enabling Silver Agers to work as much or as little as they wished depending on their needs.
National initiatives should also be implemented. As a response to the challenges of an aging society, Japan has created a National Silver Human Resources Center (SHRC) which promotes the employment of Silver Agers in the community. As a result of their efforts, Japan has one of the highest employment rates of people aged 60 and above in the world. Their research has shown that 60% of Japanese people wish to work up to more than 70 years old. Around 1/3 of respondents wanted to work as long as they could. The social aspect of work was one of the most important motivators. Over half of those over the age 60 wanted to work so that they could participate in a community.
The majority of them worked in the cleaning, services, and agricultural industries. With a subsidy of approximately 130 Euros for each worker, SHRC was able to secure a multiple of 22 (2,860 Euros) in work compensation. Therefore, it is imperative that local and national governments provide support and funding for these types of initiatives. Wage subsidies have also been found to be effective in increasing employment in various countries in Europe.
From a financial perspective, studies have shown that due to the higher rate of retention of Silver Agers and the resulting increased effectiveness and value received from their training, these benefits outweigh the minor increased costs of absenteeism and work injuries. In a study that compared Australians over the age of 45 with Australians under the age of 45, a yearly benefit of almost 2,000 Australian Dollars per worker was found.
Reintegrating older workers is an economic opportunity
When it comes to hiring retirees, it is important to consider the kinds of jobs most suitable for them. White-collar and less physically demanding jobs are what older workers would prefer to do and they excel in jobs that take advantage of their decades of experience and empathetic nature.
Estimates indicate that in Germany, participation in the labor market of citizens aged 55 and above offers a potential of 1.2 million people which is 22% of the labor shortage. Organizations would fill vacant jobs and increase productivity, Silver Agers would find work and a community, and countries would see an increase in tax contributions and GDP.
In addition to job agencies and government services, Silver Agers need additional resources that are not covered by the standard recruiting solutions. In order to connect retirees with the right jobs, platforms and resources specializing in this area are needed. To address this demand, a few companies in North America and Europe have sprung up. In North America there is BoomersPlus and in Europe, there is WisR. These services specifically serve retirees and pensioners in helping them find the jobs that match their abilities. This targeted approach considers the preferred employment of the job seeker as well as the needs of the employer whose main goals are an increase in hiring effectiveness and less employee turnover resulting in less overall hiring costs.
Silver Agers are a large untapped labor force. Opening the employment doors to them is a win for businesses, a win for society, and a win for the economy.
