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Abstract: This article argues that organizations should embrace hiring and retaining older workers due to the many benefits they provide. It dispels common myths that skills and abilities necessarily decline with age by reviewing research showing cognitive abilities remain strong into one's 60s and experience can offset physical declines. The article then presents five key advantages of older workers: they excel at soft skills like leadership and problem-solving; have lower turnover rates which save on training costs; can mentor younger employees and transfer institutional knowledge; bring diversity of perspectives that fuels innovation; and through experience, are able to offset potential physical job limitations. Industry examples from sectors like pharmaceuticals, consumer goods, consulting and retail are given. Overall, the article makes the case that an age-diverse workforce maximizes talent if organizations adopt policies like flexible work arrangements, ongoing skills training, leadership promoting inclusion, and fair performance reviews.
As the workforce ages and the demand for experienced talent intensifies, many organizations are recognizing the value that older workers can bring. However, misconceptions persist about declining skills or abilities with age.
Today we will make the case for hiring older workers based on research and practical experience. We will explore the numerous benefits older workers offer, including invaluable soft skills, institutional knowledge, lower turnover rates, and more. Overall, the evidence shows that age is just a number, and older workers have much to contribute given the right opportunities and work environment.
Research Foundation: What the Studies Say About Older Workers
Before diving into specific advantages, it is important to address common myths and misperceptions about older workers head-on using scientific research as a foundation. Numerous studies have debunked the idea that skills or abilities necessarily diminish with age. While certain physical capacities may decline as the body ages, cognitive abilities remain strong or even improve well into one's 60s for many individuals (Park, 1999; Salthouse, 2012). Areas like wisdom, judgement, decision-making, and emotional regulation - which are key for many roles - tend to peak later in life (Blanchard-Fields, 2007). Research also shows work experience can offset any declines, such that job performance remains stable or improves with age (Ng & Feldman, 2008).
Rather than making broad generalizations, each individual should be evaluated based on their own capabilities. Stereotyping older workers as less capable risks missing out on top talent. A meta-analysis of 14 studies found age was a weak predictor of job performance compared to other factors like experience, training, and adaptive characteristics (Ng & Feldman, 2012). Furthermore, older workers are often highly engaged, with strong organizational commitment due to seniority (Kooij et al., 2013). Their experience also translates to transferring skills across roles with ease (Durso et al., 2020). Overall, the research provides a strong foundation for considering older applicants based on merit rather than age biases.
Benefit #1: Soft Skills and Institutional Knowledge
While hard technical skills may evolve over time, certain soft skills sharpen with age and experience. Older workers often excel at skills highly valued today like leadership, teamwork, communication, problem-solving, and customer service (Department for Business, Energy & Industrial Strategy, 2016). Their people skills, emotional intelligence, and judgment developed through decades of varied interactions cannot be taught. They also have deep institutional knowledge worth preserving as baby boomers retire en masse.
Industry example: At global pharmaceutical company Merck, leaders recognized how valuable it was to retain the expertise of older scientists as new therapies were developed. Rather than mandatory retirement, the "phased retirement" program allows gradual reduction of duties while continuing mentorship. This enables intergenerational transfer of critical technical and compliance knowledge in a regulated industry (Choy, 2020).
Benefit #2: Lower Turnover and Training Costs
Younger workers are more likely to job-hop in today's dynamic market. On average, older workers tend to stay in roles longer since they are closer to retirement. Recent research even found employees over 55 have an average job tenure twice as long as those under 35 (Bureau of Labor Statistics, 2021). With less turnover comes major savings in recruiting, onboarding, training and lost productivity during transitions. It has been estimated replacing an employee costs between 90-200% of their annual salary depending on role (Boushey & Glynn, 2012).
Industry example: At consumer goods giant Procter & Gamble, executives realized significant cost savings by avoiding talent turnover through various programs to retain valued mature workers (Easdon & Innamorato, 2019). Remote work options, job sharing, reduced hours and gradual retirement transitions increase retention of critical skills and tribal knowledge accumulated over decades.
Benefit #3: Mentorship and Transfer of Knowledge
Older workers can pass on invaluable lessons learned to younger colleagues through formal and informal mentoring relationships. They bring a historical perspective on how problems have been solved previously. Their people skills also make them natural teachers able to develop next generation talent. This intergenerational transfer of knowledge helps companies avoid skills gaps and grow internal expertise.
Industry example: Consulting firm EY established its NextGeneration program years ago to merge technological skills of millennials with "soft" abilities of baby boomers. Pairing junior and experienced staff strategically on projects combines digital fluency with judgement that only comes with experience handling complex clients and situations over many economic cycles (EY NextGeneration, 2015). This formal mentoring program has led many protégés to assume leadership roles themselves.
Benefit #4: Diversity of Perspective and Innovation
An age-diverse workforce offers different viewpoints to drive creativity and outside-the-box solutions. Exposure to multiple generations cultivates understanding of varied customer segments and work styles. Recruiting from a talent pool with more age diversity also enhances an employer brand appealing to candidates across age groups. Recent research finds age-diverse companies are more innovative and better able to adapt strategic plans in changing markets (North, 2016; Ma et al., 2020).
Industry example: National retailer Target utilized the unique consumer insights of mature workers starting in the 1990s to better understand purchasing patterns of older shoppers as the population aged. Their suggestions led to innovative store design adaptations still used today like wider aisles, larger signage, seating areas and mobility scooters for accessibility (P. Roese, personal communication, April 12, 2021).
Benefit #5: Experience Offsets Physical Declines
Contrary to assumptions, research shows physical job demands actually decline with age for most roles as careers shift to more cognitive, advisory or leadership responsibilities (Ng & Feldman, 2012). Experience offsets any potential physical limitations through adaptations, efficient work processes and judgment to avoid risks. For physically demanding jobs, simple modifications like flexible hours or job sharing can preserve valued skills and knowledge.
Industry example: Construction companies have found shifting older tradespeople to “working smarter not harder” roles like mentoring, equipment operation training, materials procurement or project oversight maximizes contributions while addressing physical requirements (Expert Group on Future Skills Needs, 2019). Their deep expertise in building codes, material properties and problem-solving often proves invaluable in an inspection or advisory capacity.
Creating an Inclusive Culture for Mature Talent
While benefits of a multi-generational workforce are clear, most companies still have room to improve aging-friendly policies and overcome biases. Simple but meaningful steps create an environment where all feel respected, challenged and able to contribute according to their capabilities:
Flexible work arrangements - Options like telecommuting, adjusted hours, compressed work weeks or gradual retirement transitions help retain workers at all stages
Ongoing skills training - Invest in all generations through continuous learning keeping abilities and interests stimulated
Leadership by example - When management embraces diversity and mentorship, it fosters inclusion at all levels
Fair performance reviews - Evaluate people based on merit, not age stereotypes, with clear expectations and feedback
Accessible technologies - Digital tools and interfaces should consider varying digital literacy to include all
Social activities - Promote intergenerational connections through employee resource groups and fun team-building
When applied systematically with compassion, these practices maximize multi-generational talent while sustaining engagement and productivity for years to come.
Conclusion
Available research and industry examples clearly demonstrate the many advantages that come from leveraging the diverse talents of older workers. Their soft relational skills, accumulated expertise, strong work ethic and unique perspectives represent an underutilized resource at a time when global competition for talent is fierce. However, overcoming biases requires a shift in mindset from viewing age simply as a liability to recognizing each individual’s unique capabilities and potential contributions. With forward-thinking policies and inclusive culture change, every organization can benefit greatly from the maturity, judgement and experience that come only with time. Overall, the evidence makes a compelling case for embracing age diversity as a strategic advantage in today's rapidly changing world.
References
Blanchard-Fields, F. (2007). Everyday problem solving and emotion: An adult developmental perspective. Current Directions in Psychological Science, 16(1), 26–31. https://doi.org/10.1111/j.1467-8721.2007.00469.x
Boushey, H., & Glynn, S. J. (2012, November 16). There are significant business costs to replacing employees. Center for American Progress. https://www.americanprogress.org/article/there-are-significant-business-costs-to-replacing-employees/
Bureau of Labor Statistics. (2021, May 13). Workers with lifetime jobs nearly extinct. https://www.bls.gov/opub/ted/2021/workers-with-lifetime-jobs-nearly-extinct.htm
Choy, R. (2020, February 13). Tapping into the wisdom of an aging workforce. Harvard Business Review. https://hbr.org/2020/02/tapping-into-the-wisdom-of-an-aging-workforce
Department for Business, Energy & Industrial Strategy. (2016). Fuller working lives: Evidence base 2016. https://www.gov.uk/government/publications/fuller-working-lives-evidence-base-2016
Durso, L. E., Lai, J. S., Lochhead, D. E., Londergan, S. E., Brundage, S. B., & Schur, L. (2020). Skills transfer among aging workers. Occupational Medicine, 70(5), 322–329. https://doi.org/10.1093/occmed/kqaa040
Easdon, L. & Innamorato, K. (2019, April 11). Why age diversity is good for business. Procter & Gamble. https://us.pg.com/blogs/why-age-diversity-is-good-for-business/
EY NextGeneration. (2015, June 11). How EY designs projects for intergenerational impact. https://www.ey.com/en_gl/news/2015/06/how-ey-designs-projects-for-intergenerational-impact
Expert Group on Future Skills Needs. (2019). Addressing the challenges of an ageing workforce through upskilling and reskilling. https://epale.ec.europa.eu/en/resource-centre/content/addressing-challenges-ageing-workforce-through-upskilling-and-reskilling
Kooij, D. T. A. M., Bal, P. M., & Kanfer, R. (2013). Future time perspective and promotion focus as determinants of intraindividual change in work motivation. Psychology and Aging, 28(2), 373–384. https://doi.org/10.1037/a0031625
Ma, H., Zheng, X., Meindl, J. R. & Yu, J. (2020). Age diversity and innovation: The moderating role of inclusive leadership. Journal of Applied Psychology, 105(12), 1354-1367. https://doi.org/10.1037/apl0000487
Ng, T. W. H., & Feldman, D. C. (2008). The relationship of age to ten dimensions of job performance. Journal of Applied Psychology, 93(2), 392–423. https://doi.org/10.1037/0021-9010.93.2.392
Ng, T. W. H., & Feldman, D. C. (2012). Evaluating six common stereotypes about older workers with meta‐analytical data. Personnel Psychology, 65(4), 821–858. https://doi.org/10.1111/peps.12003
North, M. (2016). Thinking through diversity: Intellectual roots and political implications. Rowman & Littlefield Publishers.
Park, D. C. (1999). The basic mechanisms accounting for age-related decline in cognitive function. In D. Park & N. Schwarz (Eds.), Cognitive aging: A primer (pp. 3–21). Psychology Press.
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Additional Reading
Westover, J. H. (2024). Optimizing Organizations: Reinvention through People, Adapted Mindsets, and the Dynamics of Change. HCI Academic Press. doi.org/10.70175/hclpress.2024.3
Westover, J. H. (2024). Reinventing Leadership: People-Centered Strategies for Empowering Organizational Change. HCI Academic Press. doi.org/10.70175/hclpress.2024.4
Westover, J. H. (2024). Cultivating Engagement: Mastering Inclusive Leadership, Culture Change, and Data-Informed Decision Making. HCI Academic Press. doi.org/10.70175/hclpress.2024.5
Westover, J. H. (2024). Energizing Innovation: Inspiring Peak Performance through Talent, Culture, and Growth. HCI Academic Press. doi.org/10.70175/hclpress.2024.6
Westover, J. H. (2024). Championing Performance: Aligning Organizational and Employee Trust, Purpose, and Well-Being. HCI Academic Press. doi.org/10.70175/hclpress.2024.7
Citation: Westover, J. H. (2024). Workforce Evolution: Strategies for Adapting to Changing Human Capital Needs. HCI Academic Press. doi.org/10.70175/hclpress.2024.8
Westover, J. H. (2024). Navigating Change: Keys to Organizational Agility, Innovation, and Impact. HCI Academic Press. doi.org/10.70175/hclpress.2024.11
Westover, J. H. (2024). Inspiring Purpose: Leading People and Unlocking Human Capacity in the Workplace. HCI Academic Press. doi.org/10.70175/hclpress.2024.12
Jonathan H. Westover, PhD is Chief Academic & Learning Officer (HCI Academy); Chair/Professor, Organizational Leadership (UVU); OD Consultant (Human Capital Innovations). Read Jonathan Westover's executive profile here.
Suggested Citation: Westover, J. H. (2024). The Untapped Potential of Mature Talent: Making the Business Case for an Aging Workforce. Human Capital Leadership Review, 15(1). doi.org/10.70175/hclreview.2020.15.1.7
