A story on an online forum, The Conversation, makes for interesting reading. It reported on what many know – that employers in many countries worldwide are struggling to recruit and are often unable to fill job vacancies.
Some say that hiring issues result from the pandemic and the “great resignation” or “great reshuffle” where workers sought to leave roles they were unhappy in or wanted to improve their work-life balance. Others point to long-term sickness following Covid-related illnesses.
According to Joop Schippers, Professor of Labour Economics at Utrecht University, the real reason is more subtle. He highlights a general decline in workers aged 35 years and under, along with an ageing workforce.
And his perspective is entirely logical.
Birth rates in many countries have been falling since the 1960s – even China has seen a drop in its population. Many countries have a real demographic problem with an ageing population; Japan and South Korea are especially worried.
Fundamentally, fewer young people are entering the workforce to fill vacancies left by retirees. However, a solution might be to target older workers who have much to offer employers and should be thought of as more than just ‘warm bodies’ that can fill a recruitment void.
A 2017 report from the Centre for Ageing Better, What do older workers value about work and why? Noted that there are clear benefits to employers in retaining older workers and keeping them engaged.
It found that older workers’ abilities do not suddenly diminish in the period leading up to and beyond state pension age: “Many older workers may actually be more adept in their role because of the expertise they have gained; they often have highly developed communication skills and can confidently solve problems, handle tricky situations and contribute well to teams. Older workers often have unique insights and good judgement gained from their years of experience.”
The report added “the benefits for employers who take the engagement of older employees seriously include better retention, improved knowledge-transfer, better employee relations and lower recruitment and training costs.”
A story in Forbes, a US business publication, adds more to the argument in favour of the older worker. Arlene Donovan, a Forbes Councils member, wrote that older or mature workers know their strengths, address their weaknesses and are not afraid of their own shadow: “They are team players, know how to lead, can drive business needs and create sustainable outcomes. Not only should you not be overlooking this, but you should be actively seeking out the breadth of knowledge and expertise an older worker possesses. Older workers are determined, innovative, strategic, loyal, revenue-producing and creative problem-solving professionals focused on the big picture.”
While older workers are a great resource, it should also be remembered that many – but not all – have a choice. They are likely to be ‘free’ of children, may have paid off their mortgage, and not only will have accumulated wealth over their working lives but may have received inheritances. In other words, they may not have to work.
This means employers wanting to keep older workers on board need to recognise that they want interesting work that stretches them and makes full use of their skills and experience – a point backed by a 2022 piece in the Harvard Business Review, seven Principles to Attract and Retain Older Frontline Workers. It said: “According to our study, 76% of survey respondents who would recommend their company to others say, “My work has a special meaning: this is not ‘just a job.’”
Of course, there are issues to resolve, such as the flexibility that such workers crave, along with catering for health needs and suitable adjustments. But when combined with a desire to work, learning and serving older workers could be the panacea the trade is looking for.