People are living longer and delaying their retirement if they can. Here’s what to consider as the dynamics of the workplace shift.
The traditional view of retirement is changing fast. The combination of an aging population and increases in life expectancy, and the cost of living at retirement has contributed to the growth of an older workforce.
Older workers are an asset to the organization, given their experience and skills in their field. Many employers know the importance of having a diverse and inclusive workforce but may be overlooking age, making this topic the next frontier in diversity.
But such a shift will cause significant disruption throughout our society and economy. The impact on social-security and pension systems has been much discussed, but disruption should also be expected in workplaces where different generations bring different skills and hold different expectations. HR/payroll functions responsible for compliance with laws concerning accounting, retirement and age discrimination will also find themselves under additional scrutiny. The global considerations were spotlighted in a recent EY report (pdf).
Depending on where you do business, an older workforce can present several angles to consider when it comes to regulatory compliance. Companies are required to organize their employment culture, structure, processes, staffing, personnel development and their termination cases in accordance with age-specific risks, needs, qualifications, skills and abilities, always in compliance with statutory regulations and current legal practice.