The Advantages of Experience: Why Workers of Older Generations Are Important for Your Business

We live in a time when change is a daily occurrence, and technological breakthroughs happen before our eyes. This dynamic inspires many of us to broaden our horizons, change our geographical location, professions, and more. We usually associate change with youth, as seen in many photographs of business leaders today, where young people under the age of 45 dominate. In a competitive business environment, it is important to have a team of productive, creative, and energetic people ready to change the world.

However, the world does not stand still, and there are many individuals aged 45+ who also seek change, have significant experience, energy, and can be effective for business. In an era where industries are disappearing and new ones are being born, people who are open to change should be able to implement these changes without age restrictions.

In recent years, there has been a positive shift in workplace culture towards greater inclusivity and diversity. However, the world is still prone to ageism, making it more difficult for workers of older generations to compete in the labor market, especially when trying to transition into a new field. So the question arises: is it the right strategy for businesses to focus solely on young talent? What steps should companies take to create conditions for attracting and hiring employees from older generations?

Why is this important at all?

Demographic studies show a trend of increasing life expectancy and declining birth rates in industrialized countries. The number of people over 60 is growing faster than other age groups, and by 2030, they will make up 1/6 of the world’s population. Bain & Company, which studied the G7 countries, cites an incredible figure – 150 million jobs will transition to workers over the age of 55 by 2030.

An example of where we see demographic challenges in real-time is Japan, where today a third of the population is 65 and older. Despite a declining and aging population, the country, along with businesses, is successfully increasing the involvement of workers of older generations in various industries by using various strategies to support their employment.

Due to military actions, the demographic situation in Ukraine is even more acute: birth rates have fallen, the population is aging, life expectancy is decreasing, and a significant portion of the economically active population has migrated abroad. As a result, many of us know people from older generations who are looking for career changes or self-realization but face obstacles in the labor market that can complicate or even block their efforts. These demographic changes are significant for the future labor market in Ukraine and will affect the country’s success and the well-being of each of us in the coming decades.

Since 2022, significant fines have been introduced in Ukraine for including discriminatory remarks in job descriptions. However, in practice, companies can circumvent direct age restrictions by, for example, setting up recruitment automation systems to filter candidates by age without publicly announcing this criterion. Such practices are often based on unconscious stereotypes and the desire to attract young people for their energy and speed. An even bigger problem is identifying the impact of age on the candidate selection process during interviews, where human factors and subjective evaluations sometimes play a key role.

Unfortunately, there are widespread negative stereotypes about age and its impact on productivity, work processes, attitudes, and motivation. It seems that the courage to start new things and the drive for success are welcomed in the young but cause concern in people of older generations.

The business focus on younger workers emphasizes the fallacy of age-related stereotypes, which can ultimately negatively impact business opportunities:

Increasing costs for business

The competition among companies for younger generations creates significant competition in this niche. Employers are increasing investments in the recruitment and retention of such candidates by offering higher salaries and additional bonuses. This happens because qualified professionals in the 25–45 age category are aware of their value in the market and can set their own conditions. At the same time, due to the growing tendency of younger workers to change jobs or fields of activity frequently, companies risk not achieving a return on investment in their training and development.

Competition between companies expands

Younger employees show greater flexibility and are more open to geographic changes for new opportunities or better living or working conditions, forcing companies to compete not only with local market participants but also with employers from other cities or countries. At the same time, employees from older generations generally show greater commitment to their current place of residence, making them more stable in terms of geographic location.

The gap in opportunities for different age groups deepens

As a result, inequality in the labor market continues to grow. Companies actively hire young specialists without significant experience, investing in their development and education, and collaborate with educational institutions to attract workers at the early stages of their careers. This contributes to the popularity of short-term courses and training that allow for quickly mastering a new profession. However, individuals over 45 face greater difficulties and limited opportunities to change their professional path, as there are fewer specialized training programs for them. Also, companies are less likely to provide career growth opportunities to older candidates who have retrained or changed fields of activity.

Can Senior Employees Become an Asset for Business?

The increasing employment of older generations contributes to the overall development of economic activity, the exchange of knowledge and valuable skills, reducing the burden on social security systems, and generating their own income and expenditures.

For employers themselves, there are several advantages in hiring older candidates:

• Older individuals have generally already established personal relationships, so they do not need to worry about building and maintaining a family. They do not face geographical uncertainty, and for this reason, older people focus more on self-development and achieving success at work.
• Senior employees usually demonstrate greater stability in their work and less frequent changes in career. This can be beneficial for the company as it helps reduce employee turnover and ensures greater stability in the workforce.
• The level of engagement and loyalty to the company is higher among senior employees.
• They bring more practical experience and potential expertise in various fields.
• The exchange of knowledge between employees of different generations helps to raise the overall competence level of the company.

Generational diversity is a valuable asset for a company that should be nurtured

According to an international survey of employers in 2020, only 4% of companies participated in programs that help integrate older workers or support generational diversity in the workplace. Given global trends and the intensifying competition for young talent, companies will need to shift their focus to attract more older workers.

Considering demographic trends, international practices, and the Ukrainian context, businesses need to build teams that combine different generations. Recommendations for effectively attracting and retaining senior employees:

• Adjust recruitment processes to value the strengths of different generations. Employers should clearly understand what is important and valuable for each generation when choosing their hiring strategy. “Young workers want to make an immediate impact, the middle generation needs to believe in the mission, and older workers dislike ambiguity” (Harvard Business School).
• Focus on hiring based on skills and motivation, rather than age, and clearly define job responsibilities and requirements.
• Set up an onboarding period for a smooth, clear, and effective adaptation.
• Implement clear and understandable corporate processes.
• Pay additional attention to whether your documented processes and tasks are clear and well-defined.
• Provide open and clear feedback on employees’ work.
• Introduce special upskilling programs, and specialized courses for individuals.

Siemens Case Study

Siemens AS implemented two key initiatives for the development of their senior workforce:

1. Constructive Management Mobility: This program, aimed at leaders aged 55 and older, offered a series of meetings over eight months. The first part included sessions with psychologists, focusing on identifying the personal interests, opportunities, and resources of employees. The second part involved a human resources manager who presented alternative development opportunities within the company.
2. TIPTOP — Senior Resource: A similar program aimed at non-management staff with over 10 years of work experience, focusing on practical tasks and enhancing competencies.

Both initiatives led to significant changes in the roles of participants, increased responsibility, and improved teamwork skills. A year after the completion of the “Constructive Management Mobility” program, two-thirds of the participants experienced significant changes in their work, meaning they received new assignments or changed roles. In some cases, employees moved to another department within the company. About 10% found new jobs outside the company, and only 3% decided to retire early.

How Can Senior Employees Better Position Themselves in the Labor Market?

For senior employees changing companies or fields, it is advisable to:

• Reevaluate their approach to employment and career development, striving for flexibility and openness to new opportunities.
• Not be afraid to seek courses and training programs that will help develop new skills and knowledge.
• Highlight the experience gained in previous jobs, especially in the area of soft skills that may be useful in a new role. Demonstrate the relevance of their skills and experience to the needs of a potential employer.
• Showcase their experience in professional social networks like LinkedIn to increase visibility and search for new opportunities.

Building a team that spans multiple generations is a true art that requires creativity and a constant search for new approaches. Companies that overlook the older generation during recruitment and do not invest in attracting and developing such employees miss out on opportunities and additional benefits that can positively impact team efficiency and expertise, reduce costs, and ensure business stability. Employers need to consider the motivation and values of each generation when developing hiring strategies. Shifting HR strategies towards being more open and adaptive to attracting individuals aged 45 and older can help companies expand the pool of potential candidates, improve their competitive advantage, reduce costs, and focus on products and services, while also becoming more socially and economically responsible.