A numbers game
Article by Steve Hibberd in Human Resources, Singapore - March 2009
A numbers game
With a rapidly ageing population, employers can’t run away form hiring staff of an older generation. But how can employers turn the issue into an opportunity instead?
We are all overwhelmed by the constant communication about the ageing population and the challenges this will bring to our organisations and more broadly our economies. It is not all issues and challenges though, with this trend comes great opportunity.
The older population is growing faster than the total population in practically all regions of the world and the difference in growth rates is increasing. By 2025-2030, projections indicate that the population over 60 will be growing 3.5 times as rapidly as the total population1. The ageing workforce is often seen as an issue to be dealt with, instead of an opportunity to be leveraged. So what do companies do?
First, let’s consider the benefits the older employee offers an organisation:
• An invaluable source of knowledge on the organisation’s history
• Far more loyal than their younger colleagues
• Less demanding than their younger co-workers, not as impatient or pay-hungry
• Bring established skills and knowledge to educate and guide the less experienced.
To leverage these benefits and generate real cultural and commercial value for the organisation, HR needs to consider what is important to the older employee:
• To make use of their skills, not to have to learn a whole new way of thinking and operating
• To have the flexibility to work in a way that suits their habits and energy levels
• To feel respected for their knowledge and experience
• To feel valued and be recognised for their contributions
• And, to be remunerated in a way that meets their financial needs - more so today and less in 20 years.
Understanding what is important to any employee is critical to them delivering a role well and having an associated reward structure that will not only retain them, but see them perform at their best. The older worker is no different. They may be more patient and tolerant, however regardless of their seniority; they have all seen, heard and gone through more than most.
So let’s look at some practical ideas HR could consider to tap into the benefits these older employees offer the organisation whilst at the same time meeting their needs:
1. Engage older employees from all role types within the organisation on functionally focused advisory boards (i.e. customer service, logistics, product development) to both recognise and leverage their knowledge and experience.
2. Create an opportunity, and deliver related education and training, for older employees to take on coaching and mentoring roles within the organisation.
3. As a sign of respect for their commitment and loyalty, empower older employees with knowledge of the organisation’s policies, processes and top level plans. HR can also involve them as buddies in the induction process for new younger employees.
4. Deliver length of service awards not only for service to the organisation, but as a sign of respect for the service these current older employees have given over their many years in the workforce. This is a strategy that will have a positive impact on all employees and differentiate the company as an employer of choice.
5. Involve older employees as advocates of the communication medium and longer term value of staying with your organisation, to provide some perspective to younger employees during performance review processes or during other career assessment events.
If employers are prepared to think outside of the box, they will find older employees do offer a great opportunity to improve the company’s culture, employee retention and operational effectiveness in many areas of the organisation.
1 Department of Economic and Social Affairs - Population Division, World Population Ageing: 1950-2050