TalentTalent DevelopmentMaximising the value of an ageing workforce

Maximising the value of an ageing workforce

With many employees working for longer, there are many companies that struggle to deal with an older workforce. John Deacon, Head of Employee Benefits at Buck, discusses how to maximise the full potential of this opportunity

The number of older workers in employment is on the rise, resulting in record high employment levels. The reasons for this trend are numerous – from macro-scale challenges such as the UK’s aging population to more personal issues, such as the rising cost of living or lack of savings.

As a result, while many businesses are busy investing in recruiting new, young talent to the company, they are likely to face challenges unless they ensure plans and initiatives are in place for these older employees too.

Balancing value, offsetting risks

There is no reason for businesses to see older workers as a problem. These staff hold a wealth of knowledge about the industry as well as the company’s processes and practices that can easily be lost when they leave. Not only that, but these employees are also likely to possess close relationships that help keep the business running – with colleagues, clients and even suppliers. These benefits are a direct result of having spent years in the role and are vital to keeping the business functioning smoothly.

Of course, not every employee working past the retirement age will bring these advantages, as those who remain in the company unwillingly are likely to struggle. The reason that some older employees continue working is simple enough; in many cases, they don’t have the savings they need to retire comfortably and therefore need to stay employed in order to bolster their savings. But while the cause of this problem may be easy to see, finding a solution is often more difficult.

Seeing finances positively

To address this issue, businesses need to consider what role they should play in supporting their employees’ financial security over the long-term. For example, many businesses provide a basic pension scheme and nothing more, which is rarely enough to provide a comfortable retirement.

Wellness has become a growing priority for organisations, yet many businesses totally overlook the role that employees’ finances play in their wellbeing, which means that staff may suffer from stress as a result. Some businesses may not feel that they have any responsibility here – after all, one could argue that employee savings are the individual responsibility of each member of staff.

However, by providing training, advice and benefits that support their older employees’ financial wellbeing, the company will not only see a rise in staff engagement but will also futureproof the business against the potential pitfalls of an aging workforce.

Making it work

In practice, businesses need to incorporate two different elements into their wellbeing strategies in order to cater for their older workers. First, they can consider a number of lifestyle initiatives. For example, encouraging these employees to work flexibly, remotely or even adjusting their role to part-time will limit the inevitable dip in motivation and engagement that staff in this position often experience.

Encouraging junior members of staff to support these employees will also allow a smoother transition when these older workers retire. Younger staff will feel more motivated too, as they will have more responsibility and the opportunity to step into a more senior role once the employee has left the business. As a result, the company can successfully manage both age groups and their respective career goals.

That is the second element that businesses need to consider when it comes to wellbeing: ensuring that younger staff are also prepared for retirement. Providing training sessions on financial wellbeing, offering suggestions for longer-term investments or even giving the team access to a financial adviser can give every employee the information they need to save for their retirement.

Businesses can support these initiatives by offering practical ways to save as well, such as season ticket loans or by arranging employee discounts on various products or services. This way, staff will not only know how to save, but will also have the extra money they need to do so.

What's Hot

Learning to win the talent war: how digital marketing can develop its people

Whitepaper | Talent Development Learning to win the talent war: how digital marketing can develop its people

1w

Learning to win the talent war: how digital market...

This report documents the findings of a Fireside chat held by ClickZ in the first quarter of 2022. It provides expert insight on how companies can ret...

View resource
HRD Roundtable Report: Strategies For Re-Engaging The Hybrid Workforce

Roundtable Report HRD Roundtable Report: Strategies For Re-Engaging The Hybrid Workforce 5 May 2022

2w

HRD Roundtable Report: Strategies For Re-Engaging ...

We know hybrid working is here to stay, forcing many organisations to experiment with innovative and creative strategies from 4-day working weeks to u...

View event
HRD Roundtable Report: Making it ‘Worth It’ – What We Need to Reward, Engage and Retain

Roundtable Report HRD Roundtable Report: Making it ‘Worth It’ – What We Need to Reward, Engage and Retain 3 March 2022

2w

HRD Roundtable Report: Making it ‘Worth It’ – What...

We know the pandemic has caused many people to revaluate their careers and relationships with work and have been seeing the impact in global trends in...

View event
Dave Ulrich: How can business and HR leaders simplify complexity?

Leadership Development Dave Ulrich: How can business and HR leaders simplify complexity?

4m Dave Ulrich

Dave Ulrich: How can business and HR leaders simpl...

HR thought leader Dave Ulrich outlines ways leaders can deal with complexity in an increasingly busy world, including how to think critically and turn...

View article
HRD Roundtable Report: Using HR Data to Inform Organisational Decision Making

Roundtable Report HRD Roundtable Report: Using HR Data to Inform Organisational Decision Making 5 May 2022

2w

HRD Roundtable Report: Using HR Data to Inform Org...

Historically, HR hasn’t been as effective as it could be in sharing and communicating data with wider teams. It’s paramount that we remove the self-in...

View event
Digital transformation investment grows but critical skills gaps remain - Coursera report

Digital HR Digital transformation investment grows but critical skills gaps remain - Coursera report

4m Leah Belsky

Digital transformation investment grows but critic...

Covid-19 has accelerated the rate of digital learning on a global scale. Coursera's latest report provides an update on employee proficiency in a numb...

View article
Wellbeing in the hybrid workplace: how to successfully drive engagement

Employee Engagement Wellbeing in the hybrid workplace: how to successfully drive engagement

4m Alara Basul | Sponsored

Wellbeing in the hybrid workplace: how to successf...

Remote working has impacted the way we communicate as a workforce, but striking the right balance between creating an engaged workforce and a successf...

View article
How to create a company culture capable of empowering the modern workforce

Culture How to create a company culture capable of empowering the modern workforce

4m Alara Basul | Sponsored

How to create a company culture capable of empower...

While new working patterns that emerged from the pandemic have earned a permanent spot in the workplace, creating a purpose-driven culture based ...

View article
WATCH: Connection and collaboration in a hybrid workplace

Leadership Learnings WATCH: Connection and collaboration in a hybrid workplace

4m Amy Kirkham

WATCH: Connection and collaboration in a hybrid wo...

Alison Noon-Jones, VP of People & Culture at Leidos UK & Europe, shares how crucial employee engagement and participation is when shaping the people s...

View article
Turbulence ahead: Why it’s time to be bold in your leadership

Leadership Development Turbulence ahead: Why it’s time to be bold in your leadership

4m Terence Mauri

Turbulence ahead: Why it’s time to be bold in your...

HRD thought leader and Hack Future Lab founder Terence Mauri sets out why the biggest risk to leadership is not turbulence itself, but leading with ye...

View article

While these practices will not immediately reduce the number of employees unable to retire, it will provide a healthier longer-term strategy for the future. Ultimately, with these initiatives and training in place, employees will establish good financial habits from the start of their career, rather than leaving it too late.

Comments are closed.

What's Hot

Learning to win the talent war: how digital marketing can develop its people

Whitepaper | Talent Development Learning to win the talent war: how digital marketing can develop its people

1w

Learning to win the talent war: how digital market...

This report documents the findings of a Fireside chat held by ClickZ in the first quarter of 2022. It provides expert insight on how companies can ret...

View resource
HRD Roundtable Report: Strategies For Re-Engaging The Hybrid Workforce

Roundtable Report HRD Roundtable Report: Strategies For Re-Engaging The Hybrid Workforce 5 May 2022

2w

HRD Roundtable Report: Strategies For Re-Engaging ...

We know hybrid working is here to stay, forcing many organisations to experiment with innovative and creative strategies from 4-day working weeks to u...

View event
HRD Roundtable Report: Making it ‘Worth It’ – What We Need to Reward, Engage and Retain

Roundtable Report HRD Roundtable Report: Making it ‘Worth It’ – What We Need to Reward, Engage and Retain 3 March 2022

2w

HRD Roundtable Report: Making it ‘Worth It’ – What...

We know the pandemic has caused many people to revaluate their careers and relationships with work and have been seeing the impact in global trends in...

View event
Dave Ulrich: How can business and HR leaders simplify complexity?

Leadership Development Dave Ulrich: How can business and HR leaders simplify complexity?

4m Dave Ulrich

Dave Ulrich: How can business and HR leaders simpl...

HR thought leader Dave Ulrich outlines ways leaders can deal with complexity in an increasingly busy world, including how to think critically and turn...

View article
HRD Roundtable Report: Using HR Data to Inform Organisational Decision Making

Roundtable Report HRD Roundtable Report: Using HR Data to Inform Organisational Decision Making 5 May 2022

2w

HRD Roundtable Report: Using HR Data to Inform Org...

Historically, HR hasn’t been as effective as it could be in sharing and communicating data with wider teams. It’s paramount that we remove the self-in...

View event
Digital transformation investment grows but critical skills gaps remain - Coursera report

Digital HR Digital transformation investment grows but critical skills gaps remain - Coursera report

4m Leah Belsky

Digital transformation investment grows but critic...

Covid-19 has accelerated the rate of digital learning on a global scale. Coursera's latest report provides an update on employee proficiency in a numb...

View article
Wellbeing in the hybrid workplace: how to successfully drive engagement

Employee Engagement Wellbeing in the hybrid workplace: how to successfully drive engagement

4m Alara Basul | Sponsored

Wellbeing in the hybrid workplace: how to successf...

Remote working has impacted the way we communicate as a workforce, but striking the right balance between creating an engaged workforce and a successf...

View article
How to create a company culture capable of empowering the modern workforce

Culture How to create a company culture capable of empowering the modern workforce

4m Alara Basul | Sponsored

How to create a company culture capable of empower...

While new working patterns that emerged from the pandemic have earned a permanent spot in the workplace, creating a purpose-driven culture based ...

View article