Four Ways to Adapt to an Aging Workforce
Calls to maximize the utility of older workers — by honoring experience, providing training opportunities, and offering flexible work and retirement options — began to sound at least a decade ago. HBR contributors have suggested we “retire retirement“ and “adapt for an aging workforce.”
But proposing reform is one thing. Instituting it is another. Have companies followed through? Our analysis suggests that some are starting to. We’ve found four best practices for accommodating older workers that should serve as a model for other organizations:
Companies that make these changes have seen tangible improvements in retention and productivity, organizational culture, and the bottom line. Since B&Q began actively recruiting older workers, its staff turnover has decreased by a factor of six, while short-term absenteeism is down 39%. Leaders say its growing ranks ofolder employees have been integral in creating a friendlier, more conscientious work environment. And profits are up 18%. Following its ergonomic changes, BMW has seen productivity jump 7% and its assembly line defect rate drop to zero. United Technologies has boosted its older worker retention rate by 20%, and Unilever UK estimates that it gains six euros in productivity for every one euro spent on wellness. Companies with high over-50 employment rates—at both the staff and executive level—are also proving to be leaders in their respective industries. Michelin and WellStar Health System are two examples.
Given demographic trends in the developing world, corporate workforces are set to age significantly in the next few decades. Is your organization ready to adapt?
Four Ways to Adapt to an Aging Workforce
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