No business could have predicted COVID-19, the rise of remote work, supply chain problems, and the attendant labor shortages. Unanticipated developments such as these forced businesses to pivot and improvise in order to continue operating. However, there are some trends that businesses can anticipate and prepare for. One significant workforce trend that is likely to impact businesses for the foreseeable future is the aging of the U.S. workforce.

According to research from Bain & Company,1 older workers will make up a quarter of the U.S. workforce by 2031. One factor driving this change is that more older workers are remaining in the workforce. Additionally, birth rates in the U.S. have been falling for some time, which, in turn, reduces the number of young people entering the workforce.

Opportunities and Dangers for Employers
In many ways, this demographic shift is a perfect storm, one that can present both dangers and opportunities for employers. The benefits were made clear in recent research by the Organization for Economic Cooperation and Development (OECD),which found that age-diverse businesses experience lower rates of employee turnover and higher productivity levels than benchmarks.

At present, too few employers recognize the changing needs and priorities of older workers or seem willing to invest in integrating older workers into their talent system. Yet the employers that will benefit from this demographic shift are those who can focus on recruiting, retaining, and respecting the experiences and strengths of older workers. Creating roles that allow the skills and experiences of older workers to be put to use will help differentiate successful businesses from ones that fail.

With the right attitude and the right tools, employers can turn an aging workforce’s skills and talents into a competitive advantage. Research from AARP2 identified a variety of strategies and measures employers can use to integrate older workers into the workforce.

These include:

  • Mentoring or reverse mentoring programs
  • Unbiased recruiting processes
  • Benefits that appeal to employees at all stages in their careers
  • Reentry or return-to-work programs
  • Intergenerational employee resource groups
  • Purposefully creating mixed-age teams
  • Training and lifelong learning opportunities
  • Phased retirement programs

Employers Need to Be Proactive
To help get ahead of the curve and empower older workers, the Bain & Company paper suggests:

  • Retaining and recruiting older workers by understanding what motivates them at work.
  • Retraining and reskilling older workers in line with the needs of your business for the next 10 years.
  • Respecting the strengths of older workers and giving them room to do what they do best.

Source/Disclaimer:
1Better With Age: The Rising Importance of Older Workers, Bain & Company, 2023.

2Global Insights on the Multigenerational Workforce, AARP Research, 2020.