Aging Workforce 2023: Understanding and Overcoming

Should we worry about the aging workforce? The aging workforce has been a hot topic recently.

Supposedly, the aging workforce comprises of working individuals aged 40 years or older. But recently, CNBC reported that by 2030, about 150 million jobs will shift to workers aged 55.

The aging workforce consists of individuals who have experience in the field. It is great to have them as they can guide the next generation of the workforce.

However, there are some issues that need to be addressed regarding the aging workforce.

The aging workforce may bring several challenges for organizations. However, some solutions can help address these issues to ensure a smooth transition.

What Is The Aging Workforce?

The aging workforce (as the name suggests) means an increasing number of older workers in the United States.

The now aging workforce includes employees who are 40 years and above. This means the aging workforce includes elder millennials.

Having seniors in the workforce is good because they have experience. However, some challenges and opportunities arise.

One of the main challenges of an aging workforce is talent acquisition. Senior employees will soon retire. This means organizations must find ways to attract and retain younger talent to fill the gaps.

Millennial Workforce

This workforce consists of employees born between 1981 and 1996. It only means that elder millennials are now in their forties.

This generation of the workforce is known as tech-savvy because they grew up in the Internet age.

The question is, does the new aging workforce have a problem keeping up with technology?

Aging Workforce Challenges in the Human Resources (HR) Department

Age discrimination

Here is the central issue that might arise. Older workers are no less human than their peers and the younger generation.

A study suggested a factor that may lead to age discrimination is that the older workforce’s knowledge is outdated, less skillful, and less productive.

However, do not forget that elder millennials are tech-savvy. They grew up in the Internet age, so keeping up with new technology may not be a problem.

Need for training opportunities

Older workers may need additional training to keep up with technological advancement in the workplace.

Holding training may be costly for some companies.

Managing health conditions and disabilities

As people age, workers may develop health conditions or disabilities, thus creating difficulty in working.

Balancing caregiving responsibilities with work

Older workers may be responsible for caring for aging parents or other family members. This is a common issue that most older workers are facing. Balancing work and caregiving responsibilities is genuinely challenging.

Retirement planning 

Unfortunately, many older workers who are nearing retirement have no savings. With that, it is difficult for them to retire even if they want to.

Addressing Aging Workforce

Offering Flexible Working Hours Arrangements

The pandemic proved that working from home with the exact deliverables is possible. However, keep in mind that it only works for some job positions and the nature of work.

Giving work options like part-time schedules, remote work, and job-sharing may allow older employees to balance work with personal needs. Moreover, it reduces the risk of burnout.

Overall, offering work options may help address the aging workforce's common problems.

Maintaining Pay Equity 

Maintaining pay equity practice must be a top priority of every company.

Pay equity refers to equal pay for work of equal value.

Establishing a good pay equity practice plays a significant role in addressing an aging workforce.

Here how pay equity contributes to managing an aging workforce:

• Retaining experienced employees
• Reducing gender bias
• Addressing retirement concerns
• Encouraging older talents to be part of the organization
• Motivating performance
• Fostering skill development
• Creating a positive public image
• Boosting healthy work culture

Promote Health and Wellness Programs

Wellness initiatives promote the physical and mental well-being of all employees.

Health screenings, fitness programs, stress management workshops, and mental health support provide many benefits to healthier and promote a productive workforce.

Adapting Job Roles

Job roles may change depending on the situation, time, and, policy. Updating the job roles to accommodate older workers may affect their physical and cognitive capabilities.

Just a friendly reminder: ensure job tasks align with employees of all ages and provide necessary accommodation.

Employee Engagement

Help senior employees find purpose and belonging in the organization by recognizing their contributions. Celebrating milestones and involving them in decision-making processes boosts their morale and motivation.

Age-Friendly Policies

Establish policies that cater to the needs of older employees. It may include extended leave options, health insurance coverage, and retirement planning resources.

Technology Adoption

Training and support for using modern technologies help all employees. Investing in a training program is a win-win for members of the organization. It enhances their productivity and overall work experience.

Pension and Financial Planning

This includes providing resources and guidance on retirement planning, including pension options, financial planning seminars, and access to financial advisors.

Final Thoughts

In today's work culture, diversity, equity, and inclusion (DEI) has become a priority.

Companies should remain competitive by developing strategies to retain the knowledge and expertise of seniors and effectively pass it on to younger employees.

HR professionals should also consider the generation of the aging workforce. Some elder millennials are now in their forties. This group are the internet generation because they grew up in the time when the Internet started to boom.

Overall, there is a chance that most workers in the aging workforce can keep up with the innovation.

To help you develop an effective strategy for addressing aging workforce, consider using compensation management software.