By 2030, a staggering 150 million jobs in the Group of Seven (G7) countries will be filled by those aged 55 and above, as reported by Bain & Company. This marks a remarkable shift in workforce dynamics, with older and seasoned workers projected to constitute over a quarter of the workforce by 2031.
Andrew Schwedel, a partner at Bain & Company, highlighted the significance of this trend during a discussion on CNBC’s “Squawk Box Asia.” He pointed out that Japan is leading the way, with nearly 40% of its workforce already over the age of 55. Europe and the U.S. are catching up, expecting to see 25 to 30% of their workforce in the same age bracket.
This isn’t a phenomenon restricted to developed nations. For instance, China’s senior population (aged 65 and above) is expected to double by 2050. Factors contributing to this shift include declining birth rates and extended education periods. Despite a historical trend towards earlier retirements, data from the OECD indicates a slow reversal of this pattern.
Interestingly, the recent trend of “unretirement,” where retirees are returning to the workforce, is driven by various factors such as a robust job market, rising inflation, and diminishing Covid-related health risks. The surge in retirements at the pandemic’s onset now appears more like a “Great Sabbatical,” as per Bain’s observations.
Understanding and Valuing Older Workers
Amidst increasing retirement ages globally, which has sparked protests in places like France, businesses are grappling with talent shortages. Schwedel urges companies not to wait for policy changes but to proactively implement targeted interventions to integrate older workers.
Surprisingly, a 2020 global employer survey found that only about 4% of firms are committed to programs supporting a multigenerational workforce. Schwedel emphasizes that companies investing in recruiting, retaining, reskilling, and respecting older workers’ strengths will thrive as demographic shifts continue.
Understanding what motivates older workers is key. Bain’s survey of 40,000 workers across 19 countries revealed evolving priorities with age. While workers under 60 are primarily driven by good compensation, those older prioritize interesting work, autonomy, and flexibility. Many older workers are focused on mastering their craft or making a positive social impact.
Strategies to Harness the Potential of Older Workers
Companies are advised to design workplace experiences catering to older workers‘ motivations. This includes equipping them with relevant skills for the next decade. For instance, 22% of respondents aged 55 to 64 expressed a need for enhanced tech skills.
To encourage participation in training programs, companies should design them to align with older workers’ pursuit of interesting work. Moreover, respecting these workers’ strengths and leveraging them through mentoring opportunities can enhance workplace culture for everyone.
As the demographics of the global workforce evolve, recognizing and harnessing the strengths of the 55+ age group will be crucial for businesses aiming to stay ahead in a rapidly changing world.