By Longevity Project staff
Over the last decade, diversity & inclusion efforts have become a major focus for many American companies. Indeed, in many companies, diversity goals are increasingly becoming an important part of the evaluation process for CEOs and executive team members. These are important and positive developments, not only from a social equity perspective but from the value that comes to high performing companies from expanding the labor pool and from bringing diverse perspectives to work processes.
But even as corporate D&I goals have expanded over the years, they have rarely included age diversity. This is a rather substantial oversight, given the rapidly changing demographics of the American and global workforces. People over the age of 65+ are the fastest growing part of the American labor force, and workers over the age of 50 will soon be the largest part of the labor force. In 2002, 24.6 percent of the US workforce was fifty or older, a figure that grew to 32.3 percent by 2012. It is projected to be 35.4 percent by 2022 and closer to 40 percent a decade after that. Despite the rapidly changing nature of the labor pool, and the importance of understanding age diversity in the workplace, only eight percent of companies, according to research from PwC, have age as part of their diversity and inclusion strategies. This is a situation that calls for rapid and comprehensive change.
Planning for an age diverse labor force is a competitive necessity in this day and age. Older workers will be the source of most of the labor productivity gains in the coming years, and studies show that older entrepreneurs are, contrary to the public image, much more likely to be successful than younger entrepreneurs. But the opportunity is not just around harnessing the power of older employees but catalyzing work processes through bringing together perspectives from different generations. Age diverse work groups have the advantages of wider range of knowledge and experiences, perform significantly better in finding solutions to complex business challenges, and are more effective in implementing solutions to routine tasks.
Those advantages will be lost to companies if they do not develop intentional strategies for creating an age diverse work force. That means finding new ways to attract, retain and develop older workers. Steps toward a comprehensive strategy starts with establishing clear goals and metrics, and having company leadership highlight the importance of age diversity in the future of the company. Effective programs for the age diverse company could include establishing Employee Resource Groups, developing Returnships and other programs designed to make the workplace conducive for older employees. BMW, for instance, has been lauded for retooling its production lines to accommodate the needs of older workers – and receiving a financial return in greater worker efficiency. Investing in on-going training and education for employees is another method for upskilling workers and attracting new employees who know that lifelong learning will be a key to long-term career success. In 1996, Huntington Ingalls Industries, the largest military shipbuilder in the United States, opened up its apprenticeship program to older workers for the first time, a move that has been subsequently identified by managers as one of the smartest moves the company had undertaken in a long time. Success rates in the apprenticeship program for workers that have been at Huntington Ingalls for several years now significantly outstrips new entrants to the company.
Compared to other aspects of diversity, age diversity remains significantly overvalued. That is why in the coming months we will help launch the GenALL Longevity Pledge, a new project to support companies that are committed to supporting an age diverse workplace. This will be the beginning of a community dedicated to sharing best practices and enhancing the role of all employees, regardless of age, in the workplace. Stay tuned for more information on the GenALL Longevity Pledge in 2020.