In Brief
- Strategic Alignment: Outsourcing should align with business goals, such as cost savings or efficiency, guided by a clear strategy.
- Due Diligence: Carefully evaluate partners based on expertise, experience, and cultural fit, not just cost.
- Communication & Improvement: Foster open communication and continuously monitor performance for long-term success
For decades, corporate hallways have echoed with familiar laments: a dearth of skilled talent, widening skill gaps, and the perceived waning loyalty of younger generations. Recently, a new concern has emerged: an aging workforce. According to Bain & Company, a significant shift is expected by 2030, with 150 million jobs globally transitioning towards older workers.
Yet, despite this significant demographic shift, organizations rarely implement strategies to effectively integrate older workers into their talent pipelines. This is a lost opportunity because OECD data clearly shows that age-diverse businesses are more productive and have lower turnover rates than their less diverse competitors.
To effectively harness this unique population, it is imperative to first acknowledge the challenges.
Key Example: Data Age-diverse businesses experience, on average, a 10-15% boost in productivity and reduced turnover rates compared to less diverse organizations. (OECD Productivity)
Firstly, the suitability of certain roles for older workers varies significantly. While it’s conceivable for academics or customer service representatives to thrive well into their seventies, the same may not hold true for physically demanding professions like construction or long-haul trucking.
Secondly, career transitions are rarely seamless or rapid. An accountant with a 30-year career trajectory is unlikely to seamlessly transition into a role as a research scientist. Focusing on transferable skills and opportunities for ongoing development is necessary for this. For example, a seasoned manager with decades of experience in a traditional office setting might benefit from training in digital communication and project management tools to adapt to the evolving demands of the modern workplace.
Thirdly, it is important to acknowledge the diversity of the older workforce. Generalizations about their motivations are misleading, as individual aspirations and priorities vary greatly. While some would emphasize flexibility, a lighter workload, or the chance to apply their experience to a worthwhile cause, others could aim to maintain their existing pay levels.
To effectively empower older workers, organizations must adopt a multi-faceted approach.
Step 1: Understanding Motivations
A cornerstone of successful integration lies in understanding the diverse motivations of older workers.
Key Example: IBM’s phased retirement program, informed by employee surveys, allows older workers to transition gradually while contributing meaningfully. (IBM’s Flexible Work Arrangements)
- Conducting Employee Surveys:
Regularly surveying older workers to gauge their satisfaction, identify their career aspirations, and understand their preferred work arrangements (e.g., flexible schedules, remote work options) can provide valuable insights. For example, IBM has successfully utilized employee surveys to identify and address the specific needs and preferences of its older workforce, leading to the implementation of flexible work arrangements and phased retirement programs.
- Offering Career Counseling and Coaching:
Providing access to professional career counselors and coaches can help older workers explore new career paths, identify transferable skills, and develop personalized development plans. To help older people navigate job transitions and find new employment prospects, AARP, for example, has worked with many businesses to provide career coaching and counseling services.
- Creating Mentorship Programs:
Pairing experienced older workers with younger colleagues can foster knowledge transfer, provide valuable guidance, and create a more inclusive and supportive work environment. Google has established effective mentorship programs that match senior employees with junior coworkers, enabling them to exchange knowledge and insights while also gaining access to the new viewpoints of younger generations.
Step 2: Fostering Continuous Learning and Development
To remain competitive, older workers must continually adapt and acquire new skills. Organizations must invest in programs that support lifelong learning and development.
Key Example: Microsoft provides older workers with free access to its learning hub, helping them stay relevant in roles requiring tech proficiency. (Microsoft’s Learning Platform Access)
- Providing Access to Online Learning Platforms:
Offering subscriptions to online learning platforms provides access to a wealth of resources, enabling older workers to acquire new skills at their own pace. Numerous businesses, including Microsoft and Amazon, provide their staff members with access to online learning environments and pay for pertinent professional development courses and certifications.
- Offering Tuition Reimbursement Programs:
Supporting employees in pursuing further education or professional certifications demonstrates a commitment to their growth and development. To encourage staff members of all ages to pursue additional education and skill development, companies such as Google and Intel provide attractive tuition reimbursement schemes.
- Implementing On-The-Job Training Programs:
Providing opportunities for on-the-job training, such as cross-training, mentorship programs, and job shadowing, allows older workers to acquire new skills and knowledge within their current roles. For example, many healthcare organizations implement on-the-job training programs to equip older nurses with the latest clinical skills and technologies.
Step 3: Creating Inclusive and Supportive Work Environments
Creating an inclusive and supportive work environment is paramount to retaining and engaging older workers. This involves fostering a culture of respect, valuing their contributions, and addressing ageism proactively.
Key Example: Accenture’s anti-ageism training reduced age-related grievances by 20% in a single year, creating a more inclusive workplace. (Accenture’s Anti-Ageism Policy)
- Implementing Anti-Ageism Policies:
Clearly communicating and enforcing anti-ageism policies sends a strong message that age discrimination will not be tolerated. To combat age discrimination and foster a more welcoming working atmosphere, several organizations, including Accenture and Deloitte, have put strong anti-ageism policies into place and regularly hold training sessions.
- Promoting Flexible Work Arrangements:
Offering flexible work arrangements, such as flexible schedules, remote work options, and phased retirement programs, can help older workers balance their work and personal lives.
- Recognizing And Rewarding Their Contributions:
Recognizing and rewarding the contributions of older workers through awards, promotions, and other forms of recognition can boost morale and enhance their sense of belonging. Many companies, such as 3M and Johnson & Johnson, have implemented programs to recognize and reward the contributions of older workers, highlighting their expertise and leadership.
Step 4: Adapting Recruitment Strategies
Traditional recruitment strategies often overlook the talents and experiences of older workers. Organizations must adapt their recruitment processes to attract and hire qualified older candidates.
Key Example: AARP’s specialized job board connects employers with seasoned candidates, facilitating targeted recruitment. (AARP’s Senior Job Board)
- Reviewing Job Descriptions and Removing Age-biased Language:
Ensuring job descriptions are free from age-biased language and focus on essential skills and experience can attract a wider pool of qualified candidates. Many companies are now working with HR professionals and diversity consultants to review their job descriptions and remove any age-related biases.
- Utilizing Age-diverse Recruitment Channels:
Exploring alternative recruitment channels, such as senior job boards and networking events specifically for older workers, can help identify qualified candidates who may not be actively seeking employment through traditional channels. For instance, AARP has a job board just for senior citizens, matching them with firms who respect their expertise.
- Partnering With Organizations That Support Older Workers:
Collaborating with organizations that support older workers, such as senior centers and retirement communities, can provide access to a pool of experienced and skilled candidates. In order to give older people, access to career prospects, numerous businesses have joined with nearby senior centers to hold recruitment events and job fairs.
Step 5: Leveraging the Unique Strengths of Older Workers
Older workers possess a wealth of experience, knowledge, and wisdom that can be invaluable assets to any organization. Organizations must actively seek to leverage these unique strengths.
Key Example: Reverse Mentoring at Microsoft Microsoft’s reverse mentoring initiative allows older workers to learn about emerging tech trends directly from younger colleagues.
- Mentoring Younger Employees:
Encouraging older workers to mentor younger colleagues can foster knowledge transfer, enhance employee engagement, and create a more supportive and collaborative work environment. A lot of businesses, including Google and Microsoft, have official mentorship programs that enable senior employees to share their knowledge and perspectives with their younger counterparts.
- Creating Roles That Utilize Their Expertise:
Creating new roles or adapting existing roles to leverage the unique skills and expertise of older workers can maximize their contributions and enhance organizational performance. For example, many companies are creating new roles for “senior advisors” or “knowledge managers” to leverage the expertise of older workers in strategic planning, decision-making, and innovation.
- Promoting Intergenerational Collaboration:
Fostering intergenerational collaboration through team projects, cross-training programs, and social events can break down stereotypes, promote mutual respect, and enhance organizational effectiveness. Many companies are implementing initiatives to promote intergenerational collaboration, such as “reverse mentoring” programs where younger employees’ mentor older workers on emerging technologies and social media trends.
Key Takeaways:
- Embrace The Aging Workforce:
The aging workforce presents a significant opportunity for organizations to access a pool of experienced and skilled talent.
- Focus On Individual Needs:
Recognize the heterogeneity of the older workforce and tailor strategies to address their diverse needs and preferences.
- Invest In Continuous Learning and Development:
Provide older workers with access to training and development opportunities to ensure they possess the skills and knowledge required to succeed in a rapidly evolving workplace.
- Create Inclusive And Supportive Work Environments:
Foster a culture of respect, value the contributions of older workers, and address ageism proactively.
- Leverage Unique Strengths: Actively seek to leverage the experience, knowledge, and wisdom of older workers by creating roles that utilize their expertise and promoting intergenerational collaboration.
