Workforces around the world are getting older. “By the end of this decade, at least 35 countries will have more than one out of five people over the age of 65 – a first in the history of the world,” notes Harvard Business Review. In the United States, for example, nearly half the states see more deaths than births each year. This demographic shift has dramatic echoes for employers, write the article’s authors, Debra Sabatini Hennelly, and Bradley Schurman. “Employers that don’t think beyond today’s working-age population will likely struggle to build a reliable workforce that can maintain operational efficiency and effectiveness.”

Unfortunately, while many employers recognize the importance of employing a multigenerational workforce, policies are not widespread. A 2020 AARP survey of global executives found 83% recognized that multigenerational workforces are the key to long-term success. But just over half (53%) said they include age in their diversity, equity, and inclusion (DEI) policies. And 38% said they have mandatory retirement policies.

One finds challenging signals when looking at the sentiments of workers, too. Sixty-two percent of adults over age 50 believe older workers face age discrimination in the workplace, a 2022 AARP survey found.

Such beliefs are not theoretical. Companies open themselves up to legal and financial risk in failing to ensure that older workers receive equitable treatment. A Bloomberg Law report notes that age discrimination is common, and when it goes to court, employers rarely win. (For example, in England and Wales, employers only won 2% of the time.)

But beyond legal risks, there are additional risks of failing to engage older workers. One is the loss of intellectual capital, as older workers take their experience and institutional knowledge with them when they leave, or don’t apply for a job. This at a time when more older workers are interested, either by choice or for economic reasons, in staying employed: “The labor force participation rate of both men and women age 65 and older has trended upward over the last 30 years,” according to research at the Economic Policy Institute.

Another risk of failing to engage older workers is the potential effect of discriminatory practices – however unintentional they may be – on corporate reputation and brand value, as we pointed out in our earlier Viewpoint article.

Yes boomer! We still want you!

Baby Boomers are a talent pool that employers can make an element of their diversity, equity, and inclusion strategies. Learn how in this Viewpoints article at SAP Insights.

In that piece, we looked at what employers should be doing to attract and retain this generation, such as combating bias in hiring policies and setting up Baby Boomers as mentors. Here, we look at what organizations around the world are doing to attract, engage, and retain top talent in this demographic by including them in their DEI efforts and what U.S. employers can learn from them. When studying the examples of strong employer efforts and the current research on engaging and recruiting older workers, four approaches emerge:

• Capitalize on demographic trends.
• Listen to older workers to understand their unique needs.
• Embrace flexible work arrangements.
• Bring generations together in meaningful ways.

These are acts of necessity more than acts of altruism, says Schurman, an expert on demographic change, author of The Super Age and a founder of the demographic strategy and inclusive design firm Human Change. “Engaging older workers, primarily those past traditional retirement age, is essential for organizations now. It’s no longer just a nice thing to do; it’s become really essential to operations,” he says.

Engaged companies recognize the value of older workers

Some companies recognize the value that older workers bring to their roles and are taking steps to engage and retain them. Among their approaches include:

A grandparental leave policy

In Australia, Westpac, a bank, offers a program that allows employees to take extended leave to spend time with their grandchildren – “grandternity leave.” “If you’re a grandparent, you can take up to 52 weeks unpaid grandparent leave to be the child’s primary caregiver up to their fifth birthday,” the company notes on its Web site. This policy has allowed employees to simplify managing commitments beyond work, like family, education, hobbies, and caregiving.

Ergonomics tailored to older workers

In Germany, carmaker BMW has taken steps to extend the work lives of their employees by making improvements to the workplace that include stretching stations, magnifying glasses, ergonomic shoes, and stools. “This not only extended the working lives of older workers but also benefited younger workers by reducing the impact on their bodies,” Shurman says.

Climate controls for menopausal women

In the UK, some companies are putting in “cooling rooms” for perimenopausal and menopausal women, similar to the nursing rooms that were added in workplaces years ago to keep new mothers in the workplace, Bloomberg reports. Over 50 British organizations, including HSBC UK, Unilever UK, and the soccer club West Ham United, are now certified as "menopause-friendly" through an accreditation developed by Henpicked: Menopause in the Workplace, a British professional training firm.

Why is this important? A 2021 Mayo Clinic survey of 4,440 women aged 45–60 found that 13.4% had experienced at least one negative work outcome because of menopause symptoms; 10.8% reported missing work over the past year, HR Brew reported. Mayo researchers estimate that the U.S. loses $1.8 billion every year due to lost workdays because of menopause symptoms.

Active recruiting of seniors

Humana, one of the largest U.S. healthcare companies, has long targeted mature employees in its recruiting efforts. One reason, according to the Age-Friendly Institute, is the company serves over 4 million clients who receive Medicare, the health plan for senior citizens. In 2018, Humana launched its Mature Workers Hiring Initiative to reengage mature workers who had left the workforce, says Carolyn Tandy, SVP, chief DEI officer, at Humana. The company partnered with its mature worker-focused employee resource group to better understand older workers’ needs and gathered input from visits to Humana’s Neighborhood Centers that offer activities and healthcare resources to seniors. Today, Tandy says: “20% of our workforce is 55 and older and hiring for individuals 55–85 has increased by 102% since the Mature Worker Hiring initiative began.”

Enabling “snowbirds” to continue working in partial retirement

CVS Health, the pharmacy and retailer, includes a “talent is ageless” plank in its diversity, equity, and inclusion policy. It’s part of a project that began in 2004 to engage veteran pharmacists and other employees to continue working – such as when a worker in the northern U.S. moves south for the winter. In 2017, CVS reported that 24% of its workforce was over 50 and that they were continuing to recruit older workers.

As these organizations demonstrate, there are multiple ways to engage and recruit older workers. Read on for specific approaches you can adopt.

Capitalize on demographic trends

Population results vary from one geographic area to another. In the U.S., for example, Schurman says “You’ve got fairly young populations in big cities like New York City, Washington, DC, or Chicago. I’m based in DC, where only 12% of the population is over the age of 65.” But rural areas in America are different. In less populated states like Maine, Vermont, Delaware, and West Virginia, the percentage of the population over 65 is higher than the national average.

Businesses operating in these areas may face more workforce challenges due to the higher concentration of older workers in the labor market. And they will need to adjust their recruiting strategies.

Listen to older workers to understand their unique needs

A key to better engaging and retaining older workers is to listen to them and learn what they value. That, says Schurman, is what Westpac, BMW, and others have done to find out specifically what could keep them in – and happier in – the workplace. Some companies are seeking that input through employee resource groups (ERGs).

Humana is one example. In 2018, Tandy says, Humana founded an ERG called GenUs with members that span all generations and a mission to build intergenerational understanding.

“When researching the preferences of mature workers as part of the Mature Workers Initiative, a key learning was that many individuals were hesitant to return to work for a variety of different reasons,” Tandy says. Based on these inputs, they created opportunities to address the needs of mature workers, including part-time and flexible roles, compressed workweeks, job sharing, and contingency or project-based assignments. “We also created on-demand training modules and guidance on frequently asked questions on topics such as income’s impact on Social Security benefits, and role-specific mobility and technology requirements that help applicants gauge if a position will be a good fit,” she says. Their advice to other companies: “Take the time to learn about the preferences and concerns of mature workers and make sure you are offering opportunities and benefits that reflect this.”

Let employees control their working hours

One of the things that employees of all demographics are increasingly demanding is flexibility. Recognizing this, companies like CVS have taken steps to provide flexibility to meet employee needs. This isn’t a one-size-fits-all solution, though.

Claudia Iweorah, vice president of HR functions at Element Solutions, a specialty chemical company with about 5,500 employees, says the company is increasingly recognizing the unique flexibility needs that older employees have and are taking steps toward meeting those needs. Boomers, she says, are “culture carriers” that Element Solutions wants to keep on board. To do so, she says, flexible work options are a must – arrangements, like part-time hours, for example.

However, benefit plan limitations can hinder these flexible options. For example, there may be requirements on working hours for an employee to qualify for healthcare or retirement benefits. Iweorah says the company is taking a case-by-case approach to accommodate employees who may want to work fewer hours or transition into semi-retirement without negatively impacting their plans.

Groups such as the AARP Employer Pledge and the Age Friendly Foundation offer resources to help companies meet the needs of older workers.

Bring generations together in meaningful ways

Bias and misunderstanding are often driven by a lack of awareness. When we take time to interact with others who have different lived experiences, we can build more positive relationships that can minimize these biases. Encouraging intergenerational collaboration and mentoring not only benefits older workers but also provides younger employees with valuable insights and experiences.

Companies are leveraging ERGs to bring generations together for both professional and personal interactions. For example, ThermoFisher Scientific, a life sciences and biotech company, has a Millennials ERG that runs a reverse mentoring program with the goal to “strengthen connection and understanding across generations,” a company report notes. Such programs have an added benefit: retaining valued Millennials, Harvard Business Review explained in a research article.

Publicis Groupe is committed to creating an inclusive workplace for all employees, including older workers. The company has implemented ERGs to support older workers and promote DEI.

Baby boomers: An essential talent resource

Engaging older workers, primarily those past traditional retirement age, is essential for organizations now. “It’s no longer just a nice thing to do; it’s become really essential to operations,” Schurman says.

Businesses need to rethink their strategies “from recruitment to retention and focus on keeping employees for longer periods of time, similar to the past model of lifelong loyalty,” Schurman says. “The labor crunch caused by an aging population won’t go away for at least a generation, as the number of workers over 75 is expected to nearly double.”

Some older workers will need to be coaxed back into the market, Schurman says. “Benefits are going to be one of the ways that businesses get them in or keep them for longer periods of time.”

He adds a caution against making assumptions about Baby Boomers. For instance, declining to include them in development or succession planning efforts could be missing an opportunity to retain their expertise. Similar to the post-war period, he says, older workers could be encouraged to stay in the workforce longer, contributing to businesses and the economy beyond the age of 65 – just as they did in the 1950s.

As HR leaders, it is crucial to acknowledge and address the demographic shift to an aging population. Traditional workforce strategies may not be appropriate in the face of this change. It is essential to include age in DEI policies, eliminate age discrimination, and recognize the value that older workers bring to the table. Learning from global examples, it's clear that flexibility, understanding, and inclusivity are key to retaining and engaging older workers. As the labor market tightens and the number of older workers increases, businesses need to rethink their strategies from recruitment to retention. The demographic shift is not a threat, but an opportunity to influence the experience and skills of older workers, contributing to a more diverse, inclusive, and sustainable future for businesses.

A looming demographic challenge

It’s time for U.S.-based leaders to take recruiting and engagement lessons from their European and Japanese counterparts, says demographic change expert, Bradley Schurman.

Schurman is the author of The Super Age. “Super age” refers to societies where 20% or more of the population is over 65. It’s a demographic shift that countries like Japan, Italy, and Germany – all nations that suffered big population losses in World War II that they didn’t make up – have seen that is predicted to reach the United States by the end of the 2020s. By 2034, the number of people over 65 years old is projected to surpass the number of those under 18.

What employers in countries with smaller working-age populations learned were steps to retain older workers to meet labor demands and maintain business operations. This will be particularly important in the United States, where for decades, older workers have been leaving their jobs behind.

“We went from a 50% participation rate [for older workers] in 1950, down to a participation rate of about 14% by the early 1990s. We eradicated older people from the workplace, and it was both institutional and systemic. I’m not saying there was any grand plan, but that’s what happened as a result,” Schurman says.

“We have to figure out how to do more with less or how to do more with the resources we have at our disposal,” Schurman says.

Employers, Schurman says, must take proactive measures now to engage and retain older workers in their organizations. Failing to do so, he says, will result in a shrinking workforce that could have severe consequences for business operations and profitability.