Last week, as I wrapped up a speaking engagement, I found myself conversing with a small business owner who proudly declared that one of his key strategies was to “attract young workers.” This statement immediately prompted a question in my mind – why the focus on the younger workforce when the potential of individuals aged 50 and above often goes unrecognized? I’ve spoken with numerous business owners on this exact matter.  Today, we will dive into the current workforce landscape, particularly the phenomenon known as Peak 65, and explore the untapped potential of older employees.
The Shifting Dynamics of the Workforce
Across various industries, the shortage of hourly and front-line workers is a constant topic in the news. Foodservice, airlines, home health, gyms, office staff, and senior care companies grapple with the absence of essential workers. The ongoing challenge of finding, hiring, and retaining staff has proven to be a significant struggle for business owners. The initial term coined for this phenomenon right around the Covid years, “The Great Resignation,” is now transforming into what some call “The Great Reshuffle.” This transformation is driven by a growing number of young and middle-aged workers seeking jobs that not only offer fair wages but also align with their vision of a fulfilling work experience.  It also aligns with approximately 4 million Baby Boomers turning 65 this year.

Peak 65: A Demographic Turning Point
In 2024, 2025, and 2026, a staggering 11,200 individuals will turn 65 daily, marking the tail end of the baby boomer generation. This is being called the era of Peak 65. By 2030, every baby boomer will have crossed the threshold into their 60s or 70s. While discussions around Peak 65 have often focused on financial challenges, it also holds significant implications for employers, older workers, and the very concept of retirement.

Cyrus Bamji, Chief Strategy and Communications Officer for the Alliance for Lifetime Income, emphasizes the potential opportunities that Peak 65 offers. He notes, “Peak 65 provides potentially more of an opportunity to get the message out that older workers are good for business and that employers are missing out on opportunities if they don’t tap into Peak 65.” However, studies indicate there is an internal struggle many individuals face as they approach 65. In the worker’s mind, you turn 65 and can’t help but think, ‘Should I continue working?’ It’s a touchstone for this period of self-evaluation. Despite the average retirement age being 62, the trend of working at 65, either part-time or full-time, is rising. This shift can be attributed to longer life expectancies, with many 65-year-olds anticipating living well into their 80s and 90s. Plus, this generation realizes they still have so much to offer in the workplace!

Implications for Companies
A significant shift is underway, with roughly one in five Americans aged 65 and older (19%) still being employed in 2023. This marks a nearly twofold increase from 35 years ago, as highlighted in the Pew Research Center report, “Older Workers Are Growing in Number and Earning Higher Wages.” The U.S. Bureau of Labor Statistics projects this figure to increase to 21% by 2032.

Several factors contribute to the rising employment rate among those aged 65 and older. Richard Fry, the senior researcher for the Pew study, points to increased education levels and better overall health among today’s older adults. The shift in Social Security’s Full Retirement Age from 65 to 67 in 1983 also played a role, encouraging some individuals to continue working. Additionally, the decline in traditional pension plans, which often mandated retirement around age 62, eliminated a disincentive for employees to continue working.

Despite these positive trends, challenges persist. Many individuals approaching 65 may decide to leave full-time positions due to eligibility for Medicare at age 65. Some continue working solely for employer-sponsored health insurance until reaching Medicare eligibility. The labor force dynamics are evolving, opening up opportunities for part-time work in what has been termed “unretirement.”

Adapting to the New Workforce Realities
While older workers are finding new pathways to employment, employers have been slow to adapt their policies and benefits to accommodate the changing needs of this demographic. Approximately 52% of retirees surveyed feel their employers do not understand their needs as they transition toward retirement.

Chris Littlefield, President of Retirement and Income Solutions at Principal, acknowledges the need for flexibility in addressing the tectonic shifts in workforce demographics. He emphasizes that employers must find ways to work with their employee population to manage knowledge transfer and succession planning effectively. Littlefield urges businesses to adopt more flexible work policies and personalized benefits to meet the diverse needs of the Peak 65 workforce.

A paradigm shift is needed in how businesses view and manage their workforce. Bradley Schurman, author of “The Super Age,” notes, “The big story is not just the number of people getting older. It’s the number of younger people coming into the workforce; there’s fewer of them.” Schurman emphasizes the importance of businesses addressing age bias and altering their policies to foster inclusivity.

The World Economic Forum advocates for inclusive working environments for all generations in a January 2024 report on the longevity of the economy. One of the key principles highlighted is the need for companies to evolve job designs for flexibility, allowing older individuals who wish to continue working the ability to do so. As the working-age population declines, creating inclusive workplaces becomes imperative for sustained economic growth.

There is a distinct absence of attention on older workers, specifically those aged 55-90. Many individuals in this demographic, supposedly in retirement, actively seek additional income to supplement their social security, savings, and, if they’re fortunate, a pension. As they face longer, healthier lives, these older adults are also confronted with soaring food and gas prices, reaching unprecedented levels. This juxtaposition leaves many older workers anxious about aligning their shrinking income with escalating consumer prices. It’s crucial to recognize that older workers differ significantly from their younger counterparts in the 25-50 age range. Employers grappling with the challenge of securing reliable personnel would be wise to consider the unique attributes of older workers.

What Can Companies Do?
Creating an inclusive and supportive workplace for older workers involves a thoughtful approach encompassing various aspects.

1. Design Purposeful Roles: Start by crafting roles that go beyond mere job descriptions. Tailor positions that resonate with the company’s mission allow employees to see the direct link between their tasks and the organization’s broader goals. Recognize the importance of making individuals feel indispensable, fostering a sense of purpose by enabling them to contribute to customer service in a meaningful way. This acknowledgment holds particular significance for older workers, many of whom have spent their lives discerning between jobs that held such qualities and those that did not.

2. Arrange Flexible Schedules: Acknowledge the unique needs of older workers by embracing flexibility in scheduling. Understand that the late-life work experience is enriched when individuals can manage shifts and leaves of absence. While industries may have distinct requirements, adopting innovative scheduling solutions allows employees to attend to personal matters, ultimately contributing to increased loyalty and a willingness to go above and beyond when the company requires their support.

3. Pay for the Job, Not for the Tenure: Shift the focus from compensating based on years of service to valuing the contribution and equity of the work performed. According to research by Josh Bersin and Thomas Chamorro-Premuzic, emphasizing job and level equity over tenure is a key factor in the recruitment and retention of older workers. This approach underscores the significance of recognizing the value of their contributions over time.

4. Adapt to Physical Challenges: Consider making modest adjustments to the work environment to accommodate the physical needs of older workers. This might involve offering more frequent opportunities to sit, especially for those who experience discomfort when standing for extended periods. Engage with employees to understand their specific needs, recognizing that individual preferences vary. Such accommodations not only enhance the working experience for older employees but may also contribute to increased efficiency compared to their younger counterparts.

5. Build Community and Camaraderie: Beyond the professional aspects, fostering a vibrant and enjoyable workplace is crucial. If the first principles are in place, it sets the stage for cultivating a sense of community. Consider organizing events such as picnics, costume contests, or seasonal activities to infuse a sense of fun into the workplace. Simultaneously, recognize the importance of compassion by allowing additional time off during personal crises and celebrating life events, creating a workplace where individuals genuinely care for one another.

6. Tackle Ageism: Stand as a beacon against ageism by recognizing and celebrating the talent and contributions of workers, irrespective of their age. Showcase older employees as role models, demonstrating a commitment to anti-ageism principles. Stay vigilant for subtle ageist tendencies and establish a zero-tolerance environment within the company. By fostering a workplace that values individuals based on their abilities rather than their age, you contribute to a more inclusive and enlightened corporate culture.

Of course, our work here at Steople revolves around making workplaces the best ones possible for all stakeholders…as research suggests, this absolutely includes looking at the diversity within a company. Many often overlook the age demographic as a viable option for the talent issue present in so many companies. How have you seen any of this play out in your company? Is this something you need to leverage? We would love to hear from you!

 

When the doorbell rang, I couldn’t help but grin because it meant my all-time favorite meal was here! My workspace was set up like a pro, ready for the evening’s Zoom call. Each year, the Steople team pulls off this amazing global planning session, spanning time zones from Australia to New Zealand and, of course, the U.S. It’s a night (for us in the U.S.) and a morning (for our Aussie and Kiwi buddies) filled with connection, planning, and, most importantly, amazing food. This is hands down one of the best times of the year for us because not only do we get to shape the company’s future, but we also get to hang out with our colleagues from around the world.

Picture this: the U.S. team was soaking up the late afternoon sun, donning short sleeves and sandals, while our mates down under in Australia were all cozied up in sweaters, enjoying fireside chats. This year, our global planning session had a laser focus on our Employee Value Proposition (EVP), and it was a blast exploring all the reasons that make our company so special, backed up by stories from our valued team members.

Now, as for the EVP champions, they’re still rounding up the data from our offsite adventure, but certain themes have already emerged. These themes are all about the heart and soul of our organization: our fantastic people, the flexibility we offer, and the endless chances to learn and grow, just to name a few.

Speaking from my own experience, our company has an incredible knack for supporting our folks when they’re going through tough times. If someone needs to take medical leave or deal with a family emergency, we all pitch in to help with work and anything they need on the personal front. We’ve done everything from sharing food to helping with chores, and I’ll never forget the time a tornado left many without power, and a colleague offered up their fridge space to save everyone’s food from spoiling. That’s what we call integrity and teamwork at Steople.

Now, let me share a heartwarming story I stumbled upon while diving into the world of EVPs. It’s about a former Dodgers player named Andrew Toles. Despite his battles with schizophrenia, the team leadership’s response was nothing short of inspiring. Instead of parting ways with him, they extended a helping hand, allowing him to continue working with the team year after year, primarily for the sake of maintaining his health insurance coverage to address his mental health needs. Talk about taking care of your people!

Ever wondered what makes your company stand out in the crowd? Check out Mark Mortensen and Amy Edmondson’s article, “Rethinking Your Employee Value Proposition.” They break it down into four super interesting categories:

1. Material Goods: These include things like pay, physical office space, location, commuting perks, cool tech gear, flexible work hours, and a bunch of other awesome extras.

2. Opportunities to Grow and Shine: Think about all the ways your company nurtures its employees’ skill sets and enabling them to become more valuable in the job market. It could be through new roles, job rotations, training, or promotions.

3. Feeling Connected and Part of a Community: This is about being appreciated for who you are, having a sense of belonging, and forming great relationships at work. It all starts with having a vibrant culture that lets people be themselves and encourages a sense of togetherness or belonging.

4. Finding Meaning and Purpose: This is your company’s aspirational objectives, aligning with employees’ desire to make a positive impact on local and global communities. These objectives answer the fundamental question of why employees dedicate themselves to the work they do. It’s all about matching your team’s desire to make the world a better place with the work they do every day.

Remember, your Employee Value Proposition isn’t just about the money. Sure, we all need to pay the bills, but think about all the other cool reasons people might want to join your company. We recently helped out an organization with their EVP by doing something called “listening tours.” Basically, we gave every employee a chance to share their thoughts. After a couple of weeks of daily sessions, we collected all their stories (anonymously, of course) and shared them with the big bosses for a day of “sense-checking.” This day was all about understanding the stories and figuring out what truly makes the company special and why people choose to be a part of it.

It was a privilege to be a part of these listening tours, and it was an incredible experience hearing stories from all levels of the company. When the senior leaders joined the sense-checking session, they were blown away by the stories and distilled them into five overarching themes. These themes now guide their talent acquisition playbook, from hiring to development, engagement, and career transitions. So, having a clear Employee Value Proposition can really set the stage for everyone involved.

So, what’s your secret sauce that makes you stand out in the business world? What forms your unique moat in the business landscape?

As I crossed the street in downtown Melbourne with my fellow directors, I reveled in the idle chit-chat I had been missing for 3 years.  I was back in the Land Down Under for our annual Strategic Planning Meeting…out of Zoom Room Purgatory!  As we walked, we randomly talked about the rich history of Italian influence on coffee in Australia, the difference in men’s dress from Sydney to Melbourne, and the politics of the most recently elected prime minister.  How much I had missed my peers and the banter we always had back and forth! We were all energized because we were going to a bonus in-person client event.  This one was special because it was taking place on a Tuesday at lunch at the RACV (Royal Automobile Club of Victoria) with a handful of Aussie clients and colleagues to simply connect and discuss what was weighing heaviest on their minds.

As I entered the venue, it was absolutely gorgeous with antique cars, beautiful furniture, exquisite chandeliers, and elegant waitstaff! We were served appetizers and adult beverages as we were waiting to be seated.  Upon being introduced to people we had not met, we all commented how decadent it felt for a Tuesday afternoon…and, in some ways in our minds, it was a celebration of the return to us getting back to in-person events.  I met several outstanding professionals in the retail, financial, hospitality/food service, government, and not-for-profit sectors.  We were all seated and after putting in our lunch orders we got down to business.  There was no agenda and the question posed was “What are the current wicked problems in your business to be solved?”  It was amazing how similar the themes were, and I have captured them here, hoping that they resonate with you (you are not alone), dear readers.

Current Pressing Problems

1. How can we attract and retain people who are aligned with our purpose and culture?  As we went around the table with everyone introducing themselves it was evident what the biggest pain point was.   It is a run for talent as many of you reading this have experienced.  There is recent inflation of salaries and people jumping from job to job.  Something that was confounding to everyone was how people had evaporated – historically they would have had 1,000 apply for a job and now there were 30 applicants.  On top of that, it was discussed that the power dynamics had shifted. What used to satisfy employees no longer does.  We have had to get much more creative to meet the needs of those we are charged to lead.

What is going on from my point of view?  For many skilled, professional workers, the historical changes to their lives and the way they work over the past two years have essentially flattened Maslow’s hierarchy of needs.  In the past, job security, decent compensation, and at least a tangible opportunity were the price of entry for people coming into organizations. Now a massive number of employees not only want to feel invested in the work they do, but they also want to see that their employer is invested in the same things they value and believe in. Employees, at the very least, want to:

  • Feel valued, have a voice, and have the potential to grow
  • Have a sense of belonging among caring, trusted, and diverse-thinking colleagues
  • Trust that the work that is being done has purpose and meaning
  • Have the flexibility to integrate work with their personal lives

Now, none of this comes as a surprise to any of you, I know.  But, what strategic initiatives have you put in place to address these in your core ideology, hiring practices, employee benefits, DEI work, leadership programs, and ability to build high-performing teams?  With some research on best practices and input from your employee base, you can create strategic initiatives to begin to address these issues.  Yes, it takes time and, just like you, sometimes I feel like I take one step forward and two steps back, but that really is what leadership is. Without the obstacles the journey wouldn’t be as sweet, would it?

2. How can we enhance our employee value proposition (EVP) so it resonates?  One of the clients who was sitting at our table spoke at length about the cultural work their company had done in the past year.  They talked about how important creating a clear core purpose was to establish a great culture. The result was the team rallying around such a deep, important reason for being in existence and that driving performance and engagement within the organization. This conversation led to the group agreeing that previously, having one clear employee value proposition was enough.  Not so now.  The great organizations ask themselves what can we do to make people feel loved and safe?  The employee value proposition is not a one size fits all and there must be several.  Companies must listen and realize what is important to the different groups.

What is going on from my point of view?  With so much riding on escaping “the Great Resignation” unscathed, employers are starting to realize that they must start from scratch and create a strong, multi-dimensional EVP that fully delivers on their company’s employee-experience promise. One that fuels a culture where everyone can bring their full range of talents, feel included and valued, and do great work in a great environment.  In order to have a really great EVP, these are 3 of the things our clients are including in successful ones:

  • Your EVP must be linked to your purpose. People are increasingly looking to join organizations that have a greater purpose beyond profitability. Ensure your EVP clearly articulates this purpose and connects to the employee experience and the role your people have in helping your organization achieve the greater good.
  • You must foster a culture of belonging, flexibility, and growth. How does your organization facilitate connection and inclusion? How does it help people learn and grow? How does it accommodate everyone’s unique needs? These are questions people ask in both their job searches and their own organizations and should be outlined in your EVP.  This absolutely relates to our #1  issue above!
  • You must look inside first and create a movement. Involving your people in the creation process is critical to ensuring your EVP is both real and a little bit aspirational. Soliciting feedback and giving your people the opportunity to show and tell the world about who you are as a company is one of the most powerful ways to bring your EVP to life.

Warren Buffet talks about a Value Proposition is a moat that separates you from your competitors.  It is tough to cross and get to your castle.  In other words, what sets you apart as an employer that would be hard to replicate by other businesses in your sector?  That is your EVP…and you can’t just rely on one.  You have to have several that address the diversity of your employee base.  Don’t you want to be the employer of choice?  It is such hard work!

3. How Can We Convince Leaders That They Have to Lead Differently?  The final theme that jumped out at me as I sat at this luncheon with a room full of incredibly smart, thoughtful people had to do with leadership. Of course, a subject near and dear to my heart. I don’t have to tell you that the pandemic changed leadership forever. It started with CEOs I know having weeks of sleepless nights putting together contingency plans and solving problems for an event that few predicted and even fewer prepared for. If their thinking didn’t flip on its head during this time, then they are being left behind. They had to pivot their thinking on the hybrid work environment, how to hold remote people accountable, how to shift away from the top down, how to create psych safety in a scary environment, how to influence people to get into leadership roles, and how to get more comfortable with technology in a split second…among 100 other 360 degree pivots. We all did. But, what many of us are facing now is not just the logistics of leadership, but also the mindset and that is what this table of high-level thinkers was grappling with.

What is going on from my point of view?  Remember prior to the world shutting down when we used to talk about VUCA?  Wow!  We had no idea what we were even capable of then!  We have come so far, yet we can still start to drift towards old ways of thinking.  The three things I am seeing will not revert back and we need to help leaders need to rally around are:

  • Being agile because the ground is always shifting.  In today’s world leaders are more exposed now than they have ever been before and they are feeling it.  They are having to make rapid and (somewhat) informed decisions amid so much uncertainty.  Gone are the days when leaders could make decisions from muscle memory and their years of experience – using the power of their high-performing teams to co-create solutions is key now more so than ever.  Being able to have other peers that you can discuss some of these challenges might be one way to get innovative in this space.
  • A human approach to staff that puts people first.  Leadership, more than ever, is about creating the conditions in which your people can thrive and perform at their best.  Leaders need to be aware of their own biases towards different ways of working, re-examine various populations of workers that have been underutilized in the past, and role-modeling the right behaviors to break the culture of “having to be present”, while also taking accountability for re-assessing how current policies and processes will disadvantage certain types of workers.  Being able to conduct professional audits and/or engage in coaching to advance your approach to leadership is definitely indicated here.
  • The ability to build inclusive and connected hybrid teams.  One of the biggest needs we are hearing about right now is being able to manage remote teams.  Communication, collaboration, innovation, and building relationships with each other are such a challenge.  While some sales teams have worked this way for years, other teams are just now getting up to speed and, while there are benefits, are also seeing disconnection and lower job satisfaction.  There is a myth out there that the younger generation doesn’t want to come back.  To be honest, we are seeing the opposite – they miss that social interaction!  So getting comfortable with technology and potentially investing in more in-person work pods or off-site opportunities are some examples of the new ways of thinking that leaders are tasked with.

Why Steople?

What was remarkable about sitting around this table was the depth of the conversation at hand.  This was a group of individuals that did not know one another before this event, but they absolutely opened up and discussed some of the most pressing pain points in their own companies freely.  We ended the lunch by asking them what they sought out of a partnership with a company like us.  It warmed my heart that what Steople on the other side of the planet brought was insight, perspective, and a richness of resources.  Partnering with skilled professionals who brought both science and practical business knowledge to accelerate learning and change throughout each organization had been invaluable.  Our value proposition is there for you – deep relationships, research of best practices, and pragmatic solutions.  As always, we are here for you and your leadership journey.  We want nothing more than to see you succeed!