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Ray Williams is Co-Founder of Success IQ University and President of Ray Williams Associates, Inc., providing leadership development, personal growth, and executive coaching services. See full bio

May 18, 2009, Work

Why We Need Aging Workers

We need aging workers to maintain a vibrant economy.

The rapidly aging global workforce - caused mainly by the number of retirement-eligible employees continuing to work - is both a challenge and major opportunity for corporations, according to a report by The Conference Board .

Currently, about 28 percent of the U.S. population is 50 or older. Projections show that by 2025, that figure will increase to more than 35 percent . By 2010, the number of 35-44 year olds, those normally expected to move into senior management ranks, will actually decline by 10 percent. Also by 2010, the number of U.S. workers 45-54 will grow by 21 percent, while the number of 55-64 year-olds will expand by 52 percent.

The key to a company's future success will be its adaptability - its capacity to deploy resources quickly to seize competitive opportunities and to draw from a labor pool that features a mix of multi-skilled, full-time workers, and specifically-skilled, contingent employees who contribute on a part-time or temporary basis. Easy, right? Maybe fifteen years ago. But where are companies today supposed to find these quick-draw resources and this bounteous labor pool? With the baby boomers turned off by the downsizing era and ready to collect what is rightfully theirs in the form of Social Security benefits, and younger people today entering the workforce under-equipped professionally, companies will be hard pressed to maintain the status quo, let alone focus on becoming adaptable. This is the scenario unless firms heed the wakeup call and make changes that will convince older Americans to participate longer in the workforce.

The Center for Retirement Research recently reported that attitudes may be changing toward older workers. In the past, some evidence suggested that employers tend to discriminate against older workers. Privately, HR people may not want to hire individuals with engrained bad habits, the potential for higher health care costs and the "I'll do it my way" attitudes of some workers. With the looming international labor shortage, governments around the world are shifting their thinking 180 degrees. They are beginning to provide incentives to older adults to encourage them to remain in the workforce as long as they are able to contribute in a meaningful way - and they are providing incentives to employers to recruit and retain older workers.

And what do aging workers want? According to an AARP study, 70% of baby boomers plan to work after regular retirement, 50% beyond age 70, and 20% beyond age 80. Aging workers want to have flexibility and autonomy in their work, continued opportunities to learn and grow and want to serve as mentors for younger workers.

According to a study by the Jesclon Group, there are myths about aging worker than need to be dispelled: that they are less flexible; that they are not as creative and that they cost more than younger workers.

Given the worldwide talent shortages as we approach economic recovery, particularly in the knowledge industries, we will have no choice but to rethink our views about aging workers. They may be the most valuable human resource in the decades to come.