The state of the aging workforce
The world is aging and in turn, countries and organizations need to address this. This was the premise of the 2030 Workforce Crisis by the Boston Consulting Group as highlighted in a 2014 Ted Talk. It has been pointed out that from a workplace perspective, the number needed to address and replace today’s workforce is 2.1. This number takes into consideration births, deaths, immigration, and emigration. Based on numerous writings only two countries have more than 2.1, that is Mexico and India at 2.8. The other countries including the U.S. are at 2.0 and lower.
It has been found that today there are more 60-year-olds than 5-year-olds and that by 2035 65-year-olds will outnumber 18-year-olds. Part of the reason for this is that we are living longer. In the early 1900s the average life span was 47 today it is over 80. In essence, there will be an increase in those over the age of 50, and 70% hope to continue to work. Unfortunately, only 15% of organizations have a strategy addressing this human capital issue as seen in a 2019 study of over 10,000 organizations and 2/3 of them considered the aging workforce a competitive disadvantage.
In spite of this, Forbes found in 2023, that the fastest-growing workforce demographic was those over the age of 75. This is further supported when in addition to the traditional workforce stages of 20 through 30s, 30s through 40s, etc. there is an increase in what has been coined as “legacy careers” which is those in the 50 to 75 age range.
This has not stopped the ongoing discussions regarding beliefs and myths about the aging workforce. Such as that they are too expensive. Yet in the book, The Talent Revolution” the authors refute this indicating that there is no research supporting this and that we are still not including the worker’s expertise and experience. Another myth is that the older worker is not productive enough, yet the research has shown that the older worker is more engaged. Another one is that the older workers are not tech-savvy. Yet the individual considered as the father of the handheld cellphone is Martin Cooper who was close to 50 and is credited with the creation of the first mobile phone known as “the brick” when it came out. These myths along with the 2019 study mentioned earlier are probably why 93% in an AARP study considered age discrimination a common practice.
In spite of this, there is an issue that has also been raised when it comes to older workers is the experience they have when it comes to interpersonal skills. Skills that are needed going forward in spite of the growth of technology and Artificial Intelligence (AI). The older worker is credited with being better in communication, collaboration, critical thinking, and empathy among others which are all needed by organizations today and into the future. Something that some have indicated is in short supply with the younger workers and recent college graduates.
Considerations for organizations and their leaders
Organizations need to assess their organizational strategies and consider what type of workforce they will need going forward. In this consideration they need to assess instead of the 20th-century practices of pushing the older worker out of the organization, they might consider how can we maximize this segment of the workforce and ensure they have progressive strategies and HR practices to engage this segment of the workforce moving forward. Organizations should assess what other organizations are doing to address this. Organizations like Home Depot, BMW, Marriott, Nike, United Technologies, and others are capitalizing on this aging workforce.
Leaders should be trained on these trends, bias awareness, and the DEI business case for such human capital strategies, held accountable, and rewarded for the correct behaviors expected from today’s leaders. To ensure they are helped in creating an inclusive organizational culture and workplace experience where all can contribute and feel engaged.
In this growing era of AI, the organizations that will succeed will be those that create a human-centered and human-intelligent workplace and ensure that everyone is valued and included irrespective of their age. One where the workplace is one where leaders model effective leadership behaviors by creating an organizational culture where the workers’ experience is one of being engaged while collaborating with their diverse team members. It is a workplace where the workforce feels psychologically safe when raising different perspectives, taking risks, being innovative, and/or being creative. It is a workplace where the workforce feels listened to and understood by their leaders. It is a workplace where the workforce finds fulfillment in the work they do and in the organization they work in.
Are your organization and leaders ready for this aging segment of society and workplace? Are they creating an inclusive environment and ensuring they are engaging the older workers and maximizing what they can bring to your organization? Let us know if we at Human Intelligent Workplace can help because today’s and tomorrow’s workplace and workforce will be different.
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