Labour experts indicated that the aging workforce will likely have to work longer to support themselves, therefore workplaces must now focus on attracting and retaining older workers.
This was discussed during a special panel discussion at the World Economic Forum Growth Summit based on a report by the World Health Organization which indicated that the proportion of the global population aged over 60 is expected to nearly double between 2015 and 2050.
This discussion was titled “Skills for Growth: Creating a Future-Ready Workforce”.
The labour experts which made up the panel were: Nicolas Schmit, the Commissioner for Jobs and Social Rights at the European Commission, Soon-joo Gog, the Chief Skills Officer at SkillsFuture Singapore and Deanna Jones, EVP People, Communications & Transformation at Baker Hughes.
They highlighted that the world is undergoing several simultaneous changes, including a tight labor market, job turnover due to technological advancements, and a declining population. Moreover, people in many countries are now living and working longer.
The experts pointed out that, although traditionally overlooked in many sectors, these older workers could become crucial in filling key roles as populations decline.
For example, Singapore has already achieved full employment, with workers aged 55 and older enjoying one of the country’s highest employment rates.
Addressing the needs of this evolving workforce will therefore require a variety of strategies to benefit society, workers, and businesses alike. The panelists made up of experts therefore proposed various strategies.
Schmit, Gog and Jones recommended the following insights and strategies during the panel session:
The need to invest in development
According to Nicolas Schmit, adapting to the reality of people living and working longer will require a shift in mindset towards continuously developing skills throughout various stages of life, ensuring individuals can remain productive for extended periods.
- “We’re investing in people during the whole working life.”
- “This practice to say, well this person is 50, why should we still invest in this person, this person will retire…is a wrong approach”
Redesign roles for new needs
The panelists all suggested that companies must anticipate a future where labor markets are tight and workforces are aging, necessitating careful consideration of how to retain their experienced employees. Soon-joo Gog, highlights that this might involve reevaluating the nature of tasks assigned to older workers and how these tasks are distributed. Some individuals may be financially secure and not require full-time positions.
- “The question of the mature worker is an important one, I think the current and future has to be considered carefully”, he says.
Create healthier workplaces
Schmit emphasized the increasing importance of workers health and well-being as companies extend the retirement age. He noted that as we move into a period where jobs become scarcer, working conditions will become increasingly significant.
He also noted:
- “We are in the shortage so we have to invest more in the good shape of work.”
Gog agrees, observing that certain organizations are already integrating wellness considerations into their strategic planning.
She notes that when her organization engages in workforce planning with companies, it prioritizes industries with a significant proportion of older workers. It assesses how it can assist companies in job redesign efforts aimed not only at retention but also at enhancing social engagement, thereby promoting longevity.
Create new models that work across age groups
Creating a smooth transition into retirement could create options that work for a variety of workers at different life stages, as Deanna Jones points out:
- “The flexibility that you provide to transition into retirement helps provide a framework by which we can do a better job flexibly at all ages.
- “There is something there around how we work and how we create flexibility in how that allows us to balance the mature workforce, as well as the needs of families and parents through their work as well”, she says.
Stemming from that, Schmit also agrees and therefore points out the need to invest in pension plans for the aging workforce, stating:
- “The transition from work to pension, I think it should be organised differently, much smoother and in a smooth way.”
- “This is also a new view we have to keep on working age.”
