Unleashing the Power of Experience
July 29, 2024 – As the demographics of the workforce shift, the proportion of older workers available and willing to work has increased. Traditional hiring practices often favor younger talent, driven by misconceptions about the capabilities and expectations of older workers, says a new report from Kestria. This overlooks a crucial asset seasoned professionals bring to the table, the study said.
“Hiring talent over 50 is becoming more than just a necessity due to the shrinking pool of younger candidates; it is emerging as a strategic advantage for forward-thinking organizations,” said the Kestria report. These experienced professionals not only bring a wealth of knowledge and expertise but also exhibit a strong work ethic and loyalty, enhancing organizational stability and growth.”
As the workforce evolves, talent shortages stand out as a critical hurdle, as companies struggle to fill positions with qualified candidates, according to the Kestria report. “This issue is compounded by widening skill gaps in rapidly transforming industries due to technological advancements,” it said. “The valuable experience of older workers, with their deep industry knowledge and refined problem-solving skills, can provide a critical advantage. Leveraging this expertise helps organizations navigate workforce complexities effectively.”
Misconceptions About Older Workers
Kestria explains that stereotypes about older workers often unfairly question their productivity, adaptability and technological aptitude. “However, evidence contradicts these stereotypes, showing older workers bring significant benefits to the workplace,” the report said. “Research indicates older employees are highly reliable and maintain productivity levels equal to or better than younger colleagues. Their wealth of experience enables them to adapt quickly to changes and challenges, with a stronger work ethic and professional dedication. Data shows older workers can learn new tools and apply them creatively and efficiently, dispelling myths and showcasing their true value.”
Advantages of Hiring Talent Over 50
Hiring talent over 50 offers multiple advantages stemming from their extensive expertise and experience. Kestria says that they excel in mentoring younger colleagues and stepping into leadership roles when needed. Their depth of knowledge and nuanced understanding of industry dynamics make them invaluable as guides and strategists.
Related: Move Over Millennials, There’s a New Workforce in Town
“Professionals over 50 bring a unique perspective forged through decades of navigating challenges and triumphs,” said Carlos Eduardo Staut, CEO of Kestria Brazil. Their maturity fosters a deep understanding of nuanced complexities, guiding strategic decision-making with a clarity born of seasoned insight. The inclusion of professionals over 50 in the workforce is not just a matter of experience; it’s a testament to the importance of diversity. Their presence adds a crucial dimension to the balance of perspectives within any organization.”
A Look at How the Aging Workforce Has Positive Benefits
It’s a fact, the global workforce is aging. In Lithuania in 2024, for the first time more people will retire than enter the job market. Harvard Business Review found that in Germany, Japan, and Italy, the 55+ cohort accounts for 25 percent or more of the workforce, and according to a Bain & Company study, in just six years 150 million jobs worldwide will shift to workers in that age group. The U.S. Bureau of Labor Statistics projects that by 2032 one in four U.S. workers will be 55 or older, and nearly one in 10 will be 65+.
At the same time, there is a worldwide talent gap, according to recent report from IMSA Search Global Partners’ Jūratė Kubilienė and Irma Simonkevičienė. “Plus, social pressures in favor of diversity and against ageism are shifting the picture – seniors are now being viewed positively as a great untapped labor pool that’s growing,” the study said.
The Kestria report also notes that older employees often set a high standard in terms of work ethic and reliability. “Their dedication is reflected in consistent performance, punctuality and perseverance in achieving company goals,” it said. “This reliability provides tangible benefits for employers, including lower turnover rates and a strong organizational culture of commitment and responsibility. Furthermore, older workers bring diverse perspectives to the table, greatly enhancing decision-making processes and fostering creativity within teams. They provide a broader view that can challenge conventional thinking and inspire innovative solutions. This diversity of thought is crucial in today’s complex business environment, where creative approaches are often the key to overcoming challenges and seizing new opportunities.”
“A diverse workforce that values all age groups can thrive and adapt to changing business landscapes,” said Katerina Meimaroglou, founder and managing director of Kestria Greece.
Strategies for Attracting and Retaining Older Talent
To attract older workers, recruitment efforts should emphasize aspects such as work-life balance, opportunities for part-time roles and consultancy positions that utilize their vast experience without the demands of a full-time schedule, according to the Kestria report. “Highlighting these options in job postings and recruitment conversations can attract candidates over 50 seeking flexibility in their careers,” the study said. “Companies can retain older employees by offering flexible working conditions, including remote work, adaptable hours and the possibility to reduce hours without losing seniority or career trajectory. Continuous learning opportunities are also crucial to keep them engaged and up-to-date with industry changes. Offering access to training programs, workshops and conferences can help them stay relevant and motivated.”
Kestria also explains that health benefits are another crucial factor for this demographic. Enhanced healthcare plans, wellness programs and preventative health initiatives tailored to their needs can be significant draws. The consortium notes that providing ergonomic work environments and promoting a culture that prioritizes mental and physical health will help retain older employees and enhance their productivity and satisfaction at work.
“Organizations have to re-evaluate their people strategies with more of the workforce above 50 years of age,” said Monicca Yan, managing director, Kestria China and Singapore. “This group of employees usually have older children, thus having less demand from the family front and can put in more hours or international travel if the role requires it. They can be valuable resources for the younger employees, involving them in their development as mentors or coaches.”
The report concludes that embracing talent over 50 is not merely beneficial; it’s crucial for the sustained success and resilience of any organization. Research by Bain & Company projects that by 2031, over one-quarter of employees in G7 countries will be 55 and older. “By integrating and valuing older workers, organizations tap into a growing demographic, leveraging their proficiency, reliability and diverse perspectives,” the Kestria report said. “As businesses confront evolving challenges, the role of experienced employees becomes increasingly vital in navigating and thriving within a dynamic corporate landscape.”
Related: A Look at the Age-Agnostic Workplace
Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Executive Editor – Hunt Scanlon Media
