Short dive:
- To support their workforces as work demographics age, employers need to promote age-inclusive work environments and tailor benefits packages, according to an October report from Bank of America and the Global Coalition on Aging to meet the needs of older employees.
- Examples of benefits that better support the needs of older workers include: flexible working and phased retirement options, care and leave for grandparents, menopause support and assistance with financial and health literacy, according to the report, which was shared with HR Dive on behalf of Bank of America.
- To cultivate an age-inclusive workplace, managers should focus on ways to engage multigenerational teams and promote the sharing of knowledge and expertise, the report recommends. Companies can do this by being open to hiring older workers instead of firing them for being overqualified, and by promoting collaboration and two-way mentorship between older and younger workers.
Diving information:
The aging workforce is a trend that consultants and academics have been watching with interest for some time.
In six years, workers aged 55 and older will make up a quarter or more of the workforce in the G7 countries (United States, Canada, United Kingdom, Germany, Japan, France and Italy), an increase of nearly 10%. % compared to 2011, according to a July survey. report by global consultancy Bain & Co.
In the United States, workers are already aging. In 2023, adults 65 and older made up nearly 30% of the American workforce, up from 23% in 2000, the Employee Benefits Research Institute reported in the spring.
Given the change, now is the time to “let go of generational stereotypes, focus on employment factors that matter at all ages, and take a nuanced approach to understanding how different factors interact and influence each individual’s decision to stay or leave.” , the report reads. underlined.
Combating ageism, in particular, makes economic sense, BofA and GCoA said. Ageism targeting those over 50 cost an estimated $850 billion in 2018, they pointed out.
That said, strategies that provide benefits that take age and individual needs into account are key to worker productivity and retention, the report says: 60% of employees say their benefits package makes them feel more valued , and 80% choose additional benefits over total pay, research from BofA and GCoA found.
Benefit packages tailored to older workers are particularly important because they allow older workers to work longer and prepare for retirement on their own terms, the report says.
For many employees this is crucial. According to a recent survey conducted by Economist Impact and TIAA subsidiary Nuveen, nearly 60 percent of U.S. workers at medium-sized and large companies lack confidence in their financial ability to retire at the typical age (65 to 67 years). The sentiment was stronger among Black, Hispanic and Asian workers, compared to white workers, the companies said.
Flexible working and phased retirement are two win-win options, BofA and GCoA highlighted. These options provide older workers with additional financial support and allow them to stay employed longer, while allowing employers to continue to benefit from their experience and expertise, the report explains.
Career extension – offering employees the opportunity to expand their responsibilities within their current roles – is another mutually beneficial option, the report notes. In this regard, career extension has been associated with greater job satisfaction, greater commitment, and better employability among older workers.
However, according to the report, one demographic faces the brunt of both ageism and sexism: older women, who experience more challenging stereotypes than their male counterparts. To address a sensitive but related issue, employers can provide menopause benefits and policies that change the company’s attitude toward it, suggest BofA and GCoA.
While most adults aren’t comfortable talking about menopause, ignoring it comes at a cost, according to a 2022 survey by Ipsos. According to a Mayo Clinic study, symptoms associated with menopause account for $1.8 billion in lost work hours each year in the United States.
Women also bear the burden of caregiving, making up 75% of the caregiving population, the BofA/GCoA report said.
Caregiving can require as many hours as full-time work, but employers have a number of options they can offer to support caregivers, including leave policies that allow employees to take time off for themselves or loved ones, options for remote work, increased paid time off, emergency assistance and respite care, the report said.