Workforce Management Featured Article
Dealing with an Aging Workforce
The workforce is aging, and businesses need to make sure they are staying on top of the trend.
There are several reasons why an increasing number of workers can be found on the job. First, there’s a skills shortage; while there may be a not-insignificant number of younger workers without jobs, these workers are not always trained and educated for the jobs that employers are needing them to perform. Many families also were hurt by the financial crash and ensuing financial and employment instability, and now need to stay in the workforce or reenter it to make ends meet.
On the one hand, older workers are a liability for businesses. Productivity can be reduced with increased age, healthcare costs are higher, salaries typically are more than with younger workers, and in some cases there are safety issues.
On the other hand, older workers come with distinct benefits. The experience of older workers can offset productivity losses and even add to overall productivity. Older employees often are more flexible due to their experience, too, and they can update their skillset through training to offset any loss of relevant skills. And, of course, there’s a lot to be said for experience.
To properly handle the aging workforce takes thought and data, however.
Senior managers need to understand the business impact of an ageing workforce and make a thorough audit of the challenges the organization faces as workforce growth slows and the proportion of older to younger workers increases.
They also need to get real-time feedback on how their employees are performing, so they can identify which older employees need retraining and which are more of a benefit than a liability. A good workforce solutions such as that offered by Monet Software can help managers keep their finger on the pulse of workforce productivity and issues.
Adjusting for an older workforce does not just mean collecting data, however; it also means putting into place education programs through HR, and leveraging older workers as a competitive advantage.
Leveraging the experience of older workers can be done mostly simply through a good mentoring program, with older employees sharing their skills with younger workers. This can take advantage of their age and experience, and deliver increased satisfaction for these workers. Everybody wants to feel needed and valued.
The aging of the workforce is happening. The question is how businesses will adjust.
Edited by Stefania Viscusi