How to Support the Growing Aging Workforce

Employees over the age of 55 are the fastest-growing segment of the workforce, according to studies by the Pew Research Center and the U.S. Census Bureau. And it’s not likely to slow anytime soon; the U.S. Joint Economic Committee and the U.S. Bureau of Labor Statistics are both reporting that this segment is expected to continue growing for the foreseeable future.

How can I-O psychology professionals help companies adapt to this shift?

SIOP Fellow Margaret Beier, professor and chair of Psychological Sciences at Rice University, and SIOP Member Meghan Davenport, Ph.D., assistant professor at the University of North Carolina at Charlotte, recently addressed this issue.

First, Beier said, it’s important to define the scope of the issue. “It is the fastest-growing, but it’s important to note that it’s not the largest. I think people confuse the two.” 

Population statistics are driving part of the growth. More people ages 55 and older are living longer and are in better health than earlier generations. But the motivation to work is more individual.

“Some of them want an ‘encore career’ or they want to exercise new skills,” Beier said. “Some may work out of financial necessity or the need to interact with others.” 

In fact, unretirement was recently named one of the biggest work trends of 2024. According to LinkedIn data, 13 percent of baby boomers who had retired, unretired at the end of last year.

Experts say these employees can offer a lot of advantages.

“They’ve developed emotional resilience; they’ve ‘been there, done that’ before; they don’t sweat the small stuff,” Beier said.

With those pluses, who wouldn’t hire them? Here come the stereotypes.

Upskilling or reskilling is a common area of concern. While older employees may take longer to learn new skills, they may have strengths in other areas.

“Technology is not only changing the way people learn, but it’s changing jobs and the tasks they do within those jobs,” Beier said. “The availability and ability to learn is kind of a DEI issue ... opportunities like that need to be given to employees of all ages.” 

Getting to know and understand this workforce can help. Older workers are diverse, Davenport said, in their experiences and their motivations.

Some workers are motivated to get ahead, while others want to help the company, so the way you talk to your employees can make a difference, she said.

“Aligning the goals of training with employees' own goals is one way you can be more effective at training your employees,” Davenport said.

And motivation starts even before hiring, “We need to consider the jobseeker’s perspective, particularly older jobseekers who have worse outcomes when seeking re-employment.”