How to get the best out of an aging workforce

2 May 2024 / Insight posted in Article

There is currently a lot of talk about Millennials and Generation Z and how to attract, retain and motivate them in the workplace. However, we should also be talking as much about the aging workforce, and embracing the good challenge this brings.

The Office for National Statistics stated that in the months April to June 2022, the number of people aged 65 years and over in employment increased by 173,000 on the quarter to 1.468 million. Some of the largest increases were seen in hospitality, the arts, and entertainment sectors.

Using inclusive practice and policies to make work more friendly to an aging workforce and leveraging the opportunity to tap into a fount of talent, your older workforce can be a source of strength and resilience for the future.

One company has taken steps to challenge and dispel the bias often attached to an aging workforce. Daimler AG in Germany has a workforce where over 35% of its employees are aged over 50. To utilise this skill and knowledge, they encourage teams to discuss the age structure of the team and address ways to promote cooperation between the different age demographics.

Other examples are companies running a ‘mature talent’ programme which promotes two-way mentoring between experienced employees and young colleagues, as well as structured transfer of knowledge before older staff members retire.

Achieving the right balance of a competitive salary without overpricing your roles compared to the market, and having an employee benefits package that meets the wants and needs of each generation of your people, makes for a whole lot of creative thinking.

The reward team at Moore Kingston Smith People Advisory have been doing just that with our Reward 360 diagnostic.

Reward 360 Model

We are working with businesses to deliver solutions which understand and meet the demands of an ever-changing workforce, as well as satisfying decision makers and budget authorisers in implementing the right reward strategy.

A flexible approach to benefits and reward has been around for a while and is nothing new and utilising our Reward 360 allows for consideration of options for a multi-generational reward strategy, which connects the understanding of different workplace generations with a flexible, bespoke set-up.

Consideration should also be given to investing in training and development that maintains skillsets over a longer period, and through different phases of an employee’s work life. These can ensure continued contribution for longer.

Implement inclusive recruitment processes – research from Ageing Better shows that more than a third of 50 – 69-year-olds feel at a disadvantage applying for jobs due to their age. By implementing an inclusive recruitment process that encourages applications from all demographics, the opportunity is there for applicants from all walks of life.

By embracing the aging workforce, employers can benefit from a diverse, skilled and loyal workforce that can help them achieve their organisational objectives and gain a competitive edge in the market.

Reimagine your reward with our expertise

Moore Kingston Smith’s People Advisory reward team encompasses over 30 years’ experience in total reward management. We can work alongside your existing HR teams and share our expertise and experience in developing creative and sustainable reward solutions to motivate and incentivise employees, driving business performance through a fit-for-purpose reimagining of a total reward package for your business.

If you would like to know more about how we can help your business or would like further information or advice on the other strategic HR services we offer, please get in touch with us.

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