The workforce is getting older, according to a recent report by the consulting firm Bain & Company. By 2031, workers ages 55 or older are expected to make up more than a quarter of the workforce in G7 countries. Employees in this age group accounted for 20% of the US workforce in 2011, and that figure is expected to rise to 25% within the next eight years.
There are various factors contributing to this trend, including the fact that fewer younger people ages 15 to 24 are entering the labor force, Bain noted. People are also living longer, with global life expectancy at 72 years old as of 2022 and expected to reach above 77 by 2050, according to the United Nations.
Still, few employers have thought about how to support older workers through total rewards, with only 4% responding they currently had benefits designed to appeal to employees throughout their life or career course, according to a 2020 survey by the American Association of Retired Persons (AARP).
As the workforce ages, here are a few programs HR leaders can consider to support employees in later stages of their lives:
Phased-retirement offerings
Benefits leaders may look into phased-retirement, which generally refers to flexible working arrangements that allow employees “to reduce the hours worked or work for their employers in a different capacity after retirement,” according to an AARP white paper.
In some cases, these workers may continue to accrue pension benefits, or start drawing from their pensions while still employed. Scripps Healthcare, for example, allows employees to work part time while drawing some of their retirement funds at the same time.
Should employers wish to implement a phased-retirement program, AARP recommends they analyze their skills and staffing needs, secure buy-in from executive leadership, and identify a group of employees—including benefits and legal counsel—to support implementation. Making sure eligible workers understand such a program is voluntary, as well as how their Social Security and other benefits may be affected, is also key.
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“Snowbird” programs
When workers hit 62, flexibility and good hours, as well as autonomy, become more important to them, according to the Bain worker survey.
Snowbird programs, which allow employees to work from different regions depending on the season, are one way to offer that desired flexibility. In an effort to retain older workers, CVS Caremark in 2004 started allowing employees based in cold-weather states to spend part of the year working in Florida and other warm locations. The Home Depot has offered something similar.
Reskilling older workers
Older workers are offered training less often than their younger counterparts, according to the Bain survey, which can in turn affect their ability to stay in the workforce.
To address skills gaps among older workers, learning & development professionals may consider investing in retraining programs for these employees. The technology firm Atos, for example, launched a program geared toward training workers who are 50 or older with free courses and certifications. As “tenured talent,” these employees also have the opportunity to mentor less experienced workers.
“Grandternity” leave
Some companies now offer paid leave for grandparents, allowing employees time to bond with their new grandchildren. HR departments may start small by offering just one day of leave for grandparents, as Mercer’s Australia and New Zealand offices have done, according to the Wall Street Journal. Other firms offer five days, or even two weeks, of “grandternity” leave.