Marc Emmer is president of Optimize Inc. and an author, speaker and consultant specializing in strategy and strategic planning.
Employers are facing a significant problem. According to the Federal Reserve Bank, the labor participation rate of 63% and unemployment rate (below 4%) have barely budged. Even if our economy slows down, it will be some time before there are fewer jobs than people to fill them. It’s time to get creative.
Before the pandemic, many companies were pushing older workers to retire. In 2018, ProPublica published a study that found that more than half of employees over 50 were forced out of their jobs before they were ready to retire. Today, older workers are vastly underutilized.
The key to tapping into these workers is understanding how they differ from younger ones. According to the RAND Corporation, among workers aged 55-70:
• 14% are working part time
• 17% had quit, but have reentered the workforce
• 26% have kept working past 70
In other words, more workers have gravitated toward non-traditional retirement than those who have taken traditional retirement. There are a number of reasons why retirees are returning to work, including:
• Financial need. Many retirees are returning to work because they need the extra income. Rising inflation and potentially underfunded Social Security benefits have put retirees at financial risk.
• Boredom. Some find they are bored after they retire. They miss the social interaction and sense of purpose they got from their jobs.
• A desire to stay active. Other retirees return to work because they want to remain active and engaged. They enjoy the challenge of working and the feeling of accomplishment that comes from it.
For businesses, these individuals can offer experience and new ideas, as well as help create a more diverse workplace.
The Benefits Of An Older Workforce
Companies can benefit from leveraging retirees and “wisdom workers” in many ways. Here are some examples:
Reduce Training Costs
Companies can save money on training costs by hiring retirees and wisdom workers who already have the skills and experience that they need.
Improve Morale
Retirees and wisdom workers can bring a positive attitude and sense of experience to the workplace, which can help to improve the overall employee experience.
Increase Productivity
Wisdom workers can be highly motivated and productive. They may also be more patient and willing to help younger workers learn.
Provide Mentorship And Knowledge-Sharing
Older employees can provide mentorship to younger workers by helping them to develop their career paths, as well as pass on their knowledge and experience, thus helping to close the skills gap.
Bring New Perspectives
Retirees and wisdom workers can bring new perspectives to the workplace, helping companies to innovate and grow.
How To Attract (And Make The Most Of) Wisdom Workers
If you are a business that’s interested in hiring retired workers, there are a few things you can do to attract them and make the most of their talent:
• Create a culture that is a good fit for retirees. Ensure you have a flexible work environment that will be attractive to elder workers and consider offering part-time or contract work. This can allow you to tap into their skills and experience without having to commit to full-time employment.
• Carve out specific job descriptions setting expectations for these positions. Meet candidates where they are in terms of their utilization of technology.
• Be prepared to offer competitive compensation. Retirees are more likely to accept a job if they are offered a desirable salary and benefits package.
• Design a formal internship program for retirees and wisdom workers. This allows you to get to know employees and determine how they can best contribute.
• Create a mentoring program that pairs wisdom workers with younger employees to help facilitate the transfer of knowledge and experience between generations.
• Establish a “wisdom council” that brings together retirees to provide advice and guidance to the company. This can ensure the company is tapping into the best thinking of its most experienced members.
Leveraging retirees and wisdom workers can be a great way for companies to gain a competitive edge. By tapping into the skills and experience of these workers, you can improve your knowledge base, boost innovation and create a more diverse and inclusive workforce.
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