CEOs reap benefits of boomers delaying retirement, experts say
NEW YORK, UNITED STATES — Baby boomers are increasingly working past the traditional retirement age, and experts say savvy CEOs stand to benefit from this trend.
According to a Pew Research Center survey, one in five Americans over 65 were still employed in 2023, marking a significant increase from 11% in 1987.
Columbia Business School Professor Stephan Meier explains that two opposing factors drive this trend: financial necessity and a desire to continue contributing. “They can bring something to the team that younger workers just can’t because of their expertise,” Meier told Fortune.
Yet, older workers frequently encounter stigma when seeking employment. A Resume Builder survey found that 34% of hiring managers expressed concerns about hiring individuals over 60. Meier argues that these stereotypes are often unfounded and need to be dispelled.
Companies benefit from age-diverse workforce
The benefits of employing older workers extend beyond filling positions. Christine Porath, a professor at the University of North Carolina’s Kenan-Flagler Business School, notes that seasoned workers can offer invaluable mentorship and training to younger colleagues, enhancing the overall knowledge and effectiveness of the workforce.
“They get a boost, a sense of vitality and learning and growing, which is useful, because we know that a sense of thriving increases their performance and productivity,” Porath explained.
Innovative employment strategies
Some companies are implementing “flextirement” options to accommodate aging workers. These options allow older employees to work reduced hours while still contributing their expertise. Meier sees this as a win-win situation for both parties.
“You might not work exactly the same amount of hours, which is a good thing for companies as well, because they can tap into the experience of those older workers without taking them on for like, full time positions,” he said.
As the workforce continues to age, companies cannot afford to overlook this demographic. A recent survey by ResumeBuilder.com reveals that one in eight (12%) American retirees are likely to rejoin the workforce in 2024. The Bureau of Labor Statistics projects that people aged 65 and over will comprise 8.6% of the labor force by 2032.
Porath advises executives to engage with older workers actively, stating, “Looking for ways to embrace them, value them, appreciate them, recognize them, and re-engage them if they’re feeling like they don’t feel a sense of belonging or community, I think is a really valuable investment,” she said.
