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The recent Age-Inclusive Management Strategies (AIMS) conference brought together an array of workforce experts, government officials, researchers, and private sector representatives to discuss the challenges and opportunities of America’s aging workforce. A researcher with the Workforce Sciences Institute and Mercer, an assets-management firm, provided these key data points for employers to consider: 

• America’s workforce is aging. The 2020 average age of 42 will climb to 43 by 2030 and higher by 2050. 

• The labor force participation rate of workers aged 65 and over is the fastest growing segment of the workforce, which coincides with an overall lower participation rate by younger workers. 

• Eighty-four percent of employees plan on delaying retirement for years beyond the typical retirement age. 

• Older, tenured workers bring greater value to employers, which exceeds their higher costs.  

Speakers at the conference expressed concern that many employers are unaware of these dramatic demographic trends and lack strategies to adequately manage the challenges and leverage the opportunities they present. Employers can retain and leverage the skills and experiences of older workers with strategies such as: 

• Flexible employment practices and policies, which increasingly are desired by employees of all age groups. 

• Workplace cultures that are inclusive, provide opportunities for all employees to contribute, and value all employees regardless of age or other demographic criteria.    

• Phased retirement options that allow tenured employees to contribute their best without a full-time commitment.  

• Employers can create an age-inclusive workplace with help from outside sources, such as AARP and local workforce partners. 

The research presented at the AIMS conference was clear: Employers with multi-generational workforces and management practices to leverage the experience and skills of tenured older workers achieve higher levels of financial performance. 

 Additional Considerations for Employers 

The issue of aging employees is fraught with peril for employers who do not handle it well. Assuming older workers are incapable or require special assistance due to their age creates legal problems for employers. Legal mandatory retirement, very uncommon, is based on the assumption that aging leads to diminished job performance; examples include air traffic controllers (56) and commercial airline pilots (65). Many consider this legalized age discrimination; indeed, there is no definitive research that supports such universal standards. 

The Age Discrimination in Employment Act (ADEA) grants protections to employees aged 40 and over who claim age discrimination, encouraging employers to take a defensive stance on managing aging workers. While that may be a rational choice of action, it may discourage the  creation of mutually beneficial opportunities. A Wharton Business School report describes the many reasons older workers choose to remain in the workforce (e.g., love of work, need for money, desire to contribute), indicating that employers must manage workplace age diversity with more than compliance in mind.  

Fortunately, research offers fresh perspectives for employers to enhance aging workers’ workplace experiences and boost organizational effectiveness. 

A study published in the MIT Sloan Review identifies important differences between managers who are in their 20s and 30s, versus those in their 50s and 60s. One salient finding is that when making decisions, older managers tend to value relationships, employee emotions, and organizational purpose more than younger managers. This appears to correlate to life experience versus classroom learning. The study concludes that employers benefit from balancing the strengths of younger and older managers and offers a few key takeaways:  

• Enhanced awareness of self and others improves the performance of work teams. 

• Age-diverse teams must acknowledge differences and develop a shared perspective. 

• Age diversity is an asset that can be leveraged. 

An Atlantic Monthly article cites studies that describe how age may impact job performance. Peak performance often occurs in an employee’s 20s or 30s for roles that require “fluid intelligence,” such as leaders of high-tech start-ups. Older workers tend to excel in roles that benefit from “crystalized intelligence,” such as teaching and mentoring. The author urges individuals to face the reality of aging, to not despair, and instead reframe what success looks like. Instead of striving to be the best at what one has always done, identify a new role for the future.  

An employee’s deeply personal “internal conversation” about their career as they age will vary greatly by individual. Employers would be wise to not attempt to take the lead on this issue with their employees. Instead, crafting a workplace culture that values personal development and psychological safety supports an employee’s self-realization journey. Opening a dialogue around goals and skills in an open culture where employees feel safe to be vulnerable is an appropriate way to engage with all employees to discuss their needs and maximize their effectiveness. 

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