Business attitude to the aging population and aging workforce is something that needs to be looked into. A hypothetical scenario of immortal employees is something worth exploring too.
Businesses have different perspectives on the aging workforce, and their views may depend on various factors such as industry, organizational culture, and workforce needs. Some businesses see older workers as valuable assets due to their experience, skills, and work ethic. Others may view them as a liability due to potential health problems, higher compensation demands, and resistance to change. Every employee is an individual with their own
Pros and cons of an older workforce
Business leaders and experts have ranging views about the aging workforce:
- “Older workers have a tremendous amount of experience and institutional knowledge, and they’re often very committed to their work.” – Jeff Miller, CEO of Cornerstone OnDemand
- “Employers need to be aware of the need to support workers’ physical and mental health as they age.” – Kathleen Christensen, senior vice president of the Alfred P. Sloan Foundation
- “Older employees are more loyal, have lower absenteeism rates, and are often more productive.” – Chad Oakley, CEO of Charles Aris, Inc.
- “The age of retirement is likely to rise, and it is essential for employers to take steps to support older workers.” – Natalie Turner, CEO of the consultancy firm Entheo
Pros of an aging workforce:
- Experience: Older workers bring a wealth of knowledge and experience to the job, making them valuable assets to companies that rely on institutional knowledge.
- Work Ethic: Older workers are known for their strong work ethic, reliability, and dedication to their jobs, which can boost productivity and reduce turnover rates.
- Lower Training Costs: Older workers typically require less training than younger employees, as they already have the necessary skills and knowledge to perform their job.
The effectiveness of the workforce can improve with age, provided that older workers are given opportunities to continue learning, growing, and developing their skills. Companies can support older workers by offering training and development programs, flexible work arrangements, and mentoring opportunities. By doing so, they can retain the valuable experience and expertise of their older workers while also benefiting from the productivity and effectiveness that they bring to the job.
Cons of an aging workforce:
- Health Concerns: Older workers are more likely to experience health problems, which can lead to absenteeism, disability, or higher insurance costs for the company.
- Higher Salary Demands: Older workers may require higher salaries or benefits packages due to their experience and skills, which can impact the company’s budget.
- Resistance to Change: Older workers may be resistant to change, which can hinder the company’s ability to adapt to new technologies or processes.
It is important to note that not all older workers experience a decline in effectiveness as they approach retirement. Many older workers remain productive and engaged in their work well into their 60s, 70s, and beyond. Some studies have found that older workers can be just as effective, if not more effective, than younger workers in certain roles, particularly those that require experience, expertise, and interpersonal skills.
Benefits of an older workforce
Age comes with benefits, both to the individual and to the social institutions. As an employee, an older person could be more valuable for a business. The effectiveness of the workforce can improve with age due to several factors. Here are some reasons why:
- Experience and Expertise: Older workers have accumulated a wealth of knowledge and expertise over their careers, making them valuable resources for their employers. They have a deep understanding of their industry, company, and role, which can help them make informed decisions and solve complex problems.
- Strong Work Ethic: Older workers are known for their strong work ethic, reliability, and dedication to their jobs. They are often highly committed to their work and take pride in their performance, which can lead to higher productivity and better outcomes.
- Emotional Intelligence: Older workers may have higher levels of emotional intelligence than younger workers, which can lead to better communication, collaboration, and teamwork. They have developed interpersonal skills over their careers, making them effective at managing relationships and resolving conflicts.
- Adaptability: Contrary to the stereotype of older workers being resistant to change, many are adaptable and flexible in their approach to work. They have experienced multiple changes and disruptions over their careers and have developed strategies for coping with them.
- Reduced Turnover: Older workers are less likely to switch jobs frequently than younger workers. They are often more committed to their current employer and less likely to be lured away by higher salaries or benefits.
Ageism in employment and what are the reasons behind it?
Ageism in the workforce refers to discrimination or prejudice against workers based on their age, usually towards older workers. Here are some examples of ageism in the workforce:
- Hiring Bias: Employers may be less likely to hire older workers or may overlook their job applications due to assumptions about their abilities or concerns about their health or productivity.
- Limited Career Progression: Older workers may face barriers to career progression, such as being passed over for promotions or not being given opportunities to develop their skills or take on new challenges.
- Stereotyping: Older workers may be subject to negative stereotypes, such as being viewed as resistant to change, less innovative, or less productive than younger workers.
- Reduced Training and Development: Employers may invest less in training and development for older workers, assuming that they already have the necessary skills and knowledge.
As workers approach retirement, their effectiveness in terms of value creation may decline due to several factors:
- Health Issues: As workers age, they may experience health issues that affect their ability to work, such as chronic pain, fatigue, or cognitive decline.
- Reduced Productivity: Older workers may have reduced productivity as they approach retirement due to lower energy levels, reduced motivation, or other factors.
- Skill Obsolescence: Workers who have been in the same job or industry for a long time may have skills that are becoming outdated or are no longer in demand.
- Reduced Engagement: As workers approach retirement, they may become less engaged in their work and may be more focused on preparing for retirement or spending time with family.
The average retirement age varies depending on the country, industry, and individual circumstances. In the United States, the average retirement age is 62, while in some European countries, such as Germany, it is 67. However, many workers choose to continue working beyond the typical retirement age, either full-time or part-time, due to financial or personal reasons.
The loss of experience and institutional knowledge when older workers retire is a significant concern for many companies. To address this issue, some businesses have implemented programs to transfer knowledge from older workers to younger employees, such as mentoring or job-shadowing programs. Others have implemented flexible retirement options, such as phased retirement, which allows older workers to gradually reduce their hours or responsibilities over time.
The aging workforce presents both opportunities and challenges for businesses. While older workers bring valuable experience and work ethic, they may also require additional support for their health needs and higher compensation demands. Companies must develop strategies to address these challenges and retain the knowledge and experience of older workers while also attracting younger talent to meet future workforce needs.
What if employees become immortal?
The concept of immortal employees, or employees who don’t age and don’t retire, is purely hypothetical and not currently possible. It is very far-fetched but there ought to be someone in the business world planning for that eventuality. If such a scenario, where employees can work indefinitely were to occur in the future, it would present significant benefits and significant challenges for businesses. Here are some potential strategies that businesses might use to cope with immortal employees:
- Redefine Retirement: If employees never retire, businesses may need to redefine what it means to retire and how they manage their workforce. This could include offering flexible work arrangements, job sharing, or phased retirement programs.
- Reconsider Benefits and Compensation: With immortal employees, traditional retirement benefits such as pensions, retirement plans, and health insurance may need to be reimagined. Businesses may need to develop new compensation models that align with the new reality of an aging workforce.
- Emphasize Lifelong Learning: If employees never retire, they will need to continue learning and developing their skills throughout their careers. Businesses may need to place greater emphasis on lifelong learning and invest in training and development programs that can help employees stay relevant and productive over the long term.
- Redefine Career Paths: With immortal employees, the traditional career path may become obsolete. Businesses may need to create new career paths that allow employees to move between roles and departments throughout their careers, based on their skills, interests, and the needs of the business.
- Foster a Multigenerational Workforce: To accommodate immortal employees, businesses may need to foster a multigenerational workforce that includes employees of all ages and backgrounds. This can help ensure a diverse and inclusive workplace culture that values the contributions of all employees, regardless of age.
It is important to note that the concept of immortal employees is purely hypothetical, and there are no current indications that such a scenario will occur in the near foreseeable future. However, businesses can still benefit from considering how they can adapt to the changing needs of an aging workforce, and implement strategies that can help retain and support their employees as they age. The population is aging, the average employee is older and the pension age is increasing in many countries and may continue to increase