As the economy has expanded after the COVID-era shutdowns, employers have found it difficult to hire. While the labor market has been improving for employers, the number of baby boomers reaching retirement age, estimated at almost 10,000 daily, means labor shortages persist. Such losses are likely to continue for at least several more years.

Despite often spending thousands to fill open positions, employers are finding employees often jump ship in a matter of months, if not sooner. Studies have confirmed that millennials change jobs on average every six months or so, usually seeking higher pay or more responsibility. They rarely, if ever, take a job intending to make it a career. More often, one job is the jumping off point for the next. They are always looking for the perfect work/life balance.

Given the difficulty in finding suitable applicants to fill open positions, it should be no surprise that employers are seeking to attract older workers. If they have not already considered this potential pool of experienced workers, perhaps they should. There is no question that, in general, the nature of most work today permits workers to be productive much longer than in the past.

Aging advantages

According to Inc. Magazine, more than 76 million Americans have already or will soon reach the age of 60. Many plan to continue working, often out of necessity. The relaxing retirement so many dreamed of has become unaffordable on the limited income from today’s pensions or diminished 401K plans. Many are understandably concerned they will outlive their savings. For an employee to be able to retire comfortably by the age of 67, they should have 10 times their annual earnings saved. In light of this, the greying of the workforce should come as no surprise. According to the Bureau of Labor and Statistics, 25% of all workers are 55 or older. In most workplaces we now have the most workers of different generations working alongside each other than the country has ever seen.

There have been numerous studies and articles over the last several years describing the benefits that older workers bring to the workplace. Many relate to the experience and dedication they bring to the job, including a varied work history and a range of skills that younger workers do not yet have. They require less training for most jobs and can actually be mentors or trainers to less-experienced employees. If some of the “seasoned” employees that are used as mentors are potential retirees who were convinced to stay longer, it has the added benefit of curtailing the loss of institutional knowledge.

Lewis Lustman, a Los Angeles-based journalist, has provided an excellent summary of the advantages to employing “seasoned talent.” He specifically noted that, among other things, older employees are:

• A steady and reliable source of skilled labor;
• Bring years and often decades of experience;
• Are more flexible in their work schedule;
• Are not job hoppers;
• Are more focused on their tasks;
• Are generally willing to mentor younger employees.

He also suggests that older workers may have lesser health insurance requirements than younger employees with families. Many are on or eligible for Medicare. Thus, they may lower overall labor costs.

Given the improving but still competitive labor market, no company can afford to overlook potential employees who could contribute to a successful operation. Sixty may truly be the next 40.