What’s going on:
A study by Bain & Company reveals that by 2031, a quarter of the workforce will be aged 55 or older. This marks a 10% increase from 2011, according to a report by Tech.co. This reportedly translates to approximately 150 million jobs occupied by older employees. While the study predominantly looked at G7 countries, the trend is global, with nations like China predicting a significant increase in its elderly workforce by 2050. Despite this shift, businesses seem unprepared, with a minimal percentage currently having or planning to develop strategies tailored for an older workforce.
Why it matters:
The aging demographic of the global workforce forecasts a substantial change in workplace dynamics, skills availability, and organizational needs. The data emphasizes a need for businesses to reconsider their talent management strategies to ensure that they harness the value that older employees bring — such as experience and industry specific skills accumulated over the years. An unprepared business landscape could face talent management issues, reduced productivity, and potential gaps in skills and experience.
How it’ll impact the future:
The changing demographics will require companies to invest in reskilling programs, as technology and tools used in the workplace are evolving rapidly. The value of work experience will likely be more recognized, but companies will also need to introduce more flexible work arrangements, health and wellness programs better tailored for older workers, and possibly even altered retirement plans. Inter-generational collaboration will become more commonplace in the upcoming years, allowing companies to blend the experience and talent of older workers with the technological efficiency harnessed by the younger generation.