Older workers will be essential in a changing global economy

A new report from consulting firm Bain & Company underscores the rising importance of older workers as global populations age and labour markets face growing talent shortages. The study focuses on the demographic of employees aged 50 and above, whose experience, stability, and institutional knowledge make them invaluable assets to businesses. It reveals that while older workers often demonstrate adaptability, problem-solving abilities, and a strong work ethic, organisations frequently overlook their contributions due to outdated stereotypes and rigid employment practices.

The report points to the economic and social shifts that have amplified the need for retaining and supporting older workers. Declining birth rates and increasing life expectancies mean that a larger proportion of the workforce now consists of individuals over 50. This trend is particularly pronounced in high-income nations, though similar patterns are emerging in middle-income countries. As a result, companies must rethink traditional career trajectories and retirement norms to harness the potential of this growing segment.

A key recommendation is for businesses to adopt inclusive policies that value the skills and perspectives of older workers. Flexible work arrangements, such as part-time roles and remote opportunities, are vital for enabling continued participation while accommodating the physical and lifestyle needs of this demographic. Additionally, providing access to training and reskilling programmes can empower older employees to adapt to technological changes and evolving job demands.

Bain & Company highlights several organisations that have successfully embraced this approach, benefiting from a multigenerational workforce. These companies report improved team performance, higher employee retention, and enhanced innovation through diverse perspectives. However, the report cautions that significant structural barriers remain, including age discrimination and inadequate support for lifelong learning.

The economic case for retaining older workers is compelling. With many economies struggling with talent shortages, tapping into the expertise of older employees can alleviate pressures on businesses and contribute to sustainable growth. Furthermore, enabling longer careers reduces the financial strain on public pension systems and enhances the overall quality of life for ageing populations.

Ultimately, the report emphasises the need for a cultural shift in how society views ageing and employment. By recognising the value of older workers and addressing systemic challenges, businesses can build a more resilient and inclusive workforce. The study calls on employers, policymakers, and educators to collaborate in creating opportunities that allow people to remain active contributors to the economy throughout their lives.

The full report, titled Better with Age: The Rising Importance of Older Workers, is available on the Bain & Company website here.