Supporting the Underdog — How Hiring Retirees Boosts the Bottom Line
Hiring managers are seeing a big shift in today’s labor force and are facing new challenges alongside it.
One of many issues HR professionals are struggling with was brought to light in a recent LinkedIn survey, which found that 69% of recruiters struggle to find qualified candidates. Other challenges include increased hiring costs, higher employee turnover, and widening skill gaps needed for certain positions.
So how can hiring managers find dedicated and knowledgeable employees in a quick and efficient manner? One easy way is to look for the underdog’s entering — or reentering — the workforce.
Hiring older workers and retirees returning to the workforce is a great way to fill labor gaps and boost a company’s bottom line.
In this C-Suite 411 article, we will discuss…
- What retirees bring to the table
- The motivations behind rejoining the workforce
- Common myths hiring managers should ignore
The Grand Return
The U.S. Department of Labor’s Employment and Training Administration reported that Gen X (ages 45-60) is the second largest group in the labor force in 2024 at 31%. Baby Boomers (ages 61-70) make up 15% of the labor force and even some of the silent generation (ages 71-90) make up 1%. This shows that although younger generations are steadily growing in the labor force, older generations are staying put for as long as possible. But why?
There are a few reasons why older generations might put off retirement or return to work after. AARP reported in January that financial and economic difficulties are still the leading reason for retirees returning to work or continuing to work past retirement age. The next-closest primary reason is to make a difference or do something meaningful, according to the same report.
This ties into another recent report by the AARP that looked at how older employed workers’ jobs impacted their mental health.
Around half of respondents said their job positively impacts their mental health, citing the social aspect of working as a big factor. These two factors have always been major players but have grown in importance since the isolation and financial instability of the pandemic.
Retirement plans have also evolved and policy changes to programs like the Social Security system have discouraged early retirement. Regardless of the reason, these candidates are itching to get back to work.
What They Offer Employers (And Myths You Should Ignore)
There are lots of benefits to having a seasoned employee on your team. They have years of experience and have worked hard to develop the skill they have today. Not only does this make them good mentors for passing on knowledge and secrets of their trade, but this also adds a unique perspective your workplace might be missing.
Retired workers also have good problem-solving skills after years of experience in and out of their field. These older generations also have the bonus of higher education rates, since today’s older Americans tend to have higher education levels than in the past.
Popular media often pokes fun at older workers by saying they are bad at technology or are averse to change and learning new things. While it may be a fun point of conflict for a movie, it is actually the opposite in real life.
Older workers tend to have a strong work ethic and are very adaptable to changing work environments and technology. Baby Boomers and Gen X worked alongside the rise of technology and its advancements, making them much more flexible in the workspace when it comes to updating technology.
Another myth often spread about retired workers is they are slow and less productive than their younger counterparts. In fact, an international study by the National Library of Medicine found that adults aged 65 to 80 performed more consistently in tests of cognitive abilities, perceptual speed, and episodic memory than did adults aged 20 to 31.
One of the bigger concerns for HR is turnover rates, as a poor culture fit can cost organizations 50-60% of an employee’s yearly salary. Luckily, the U.S. Bureau of Labor Statistics reports older employees are found to be more loyal to employers and less likely to seek change in employment. They typically stay with a company for nearly 10 years, more than three times the rate of workers ages 25-34.
Opening The Door For Retired Workers
Retired workers can bring many assets to the table. They often seek non-strenuous work or part-time jobs, but some look for more impactful work and full-time positions. Some examples of work well suited to older workers include admin assistants, customer service representatives, data entry jobs, or transportation roles. They can also be great gap-fillers in some industry specific positions as they don’t need to be trained from the bottom up when reentering the industry.
Employment data shows that these workers are not ready to stop any time soon. Hiring managers and HR leaders should approach these candidates with open minds and throw assumptions out the door, for these workers might just surprise you.
Next week we will dive into another recruitment underdog — New graduates. Discover why the misconceptions about hiring new graduates are wrong and how companies can benefit in the long run.
Sources: U.S. Department of Labor, AARP, National Library of Medicine, U.S. Bureau of Labor Statistics, LinkedIn
