An ageing workforce should be seen as an opportunity rather than a challenge for business, according to a new report.
Employers forget or overlook that older workers can bring experience and contribute to growth if a business has the right support and policies to include workers approaching or past retirement age, says the Organisation of Economic Co-Operation and Development (OECD).
The report has looked at the status of older workers in several countries to consider their impact on the workplace and economies.
The premise was the number of older workers is growing and the OECD wanted to consider how to utilise their increasing influence.
Sandwich generation
Today, the over 65s makes up 8% of the global population, but this is expected to more than double to 17% by around 2050.
The result, says the OECD, is many economies are stressed by the increasing burden of older people who are not financially contributing, while many still have the skills that can make a difference to growing GDP.
The research also points out that this is the first ‘sandwich’ generation which both supports children and older parents.
“The idea that an ageing population is detrimental to economic growth is a fallacy,” said the OECD report. “A lot can be done to embrace older workers in the workplace and as contributors to economic growth.”
Three-point plan
The OECD put forward three points that governments should consider:
- Support aging workers – if they are in turn supporting other generations, they need time to act as caregivers. In the US, caregivers who retire early lose an average $300,000 that they could have earned to help finance their retirement and giving care is one of the main reasons for giving up work
- Help with flexible working – not only does this help caregivers, but other older workers who may have health issues.
- Offer training – keep older workers up-to-date with technology and new methods so they can contribute for longer rather than writing them off as too expensive to train because they will be giving up work soon
“Researching this report, we found that older workers aged between 55 and 64 were responsible for 25% of business start-ups in the US,” said the report.
“Age and entrepreneurship still have a lot to offer the wider economy, providing organisations and governments are prepared to offer support, flexible working and training to individuals who want to carry on working.”
