The global workforce is ageing rapidly. By 2050, more than 2.1 billion people worldwide will be aged 60 or older, more than double the number in 2020. In the UK and across the G20, older workers already make up a growing portion of the workforce. By 2040, 4 in 10 workers will be aged 50 or over.
For HR leaders, this isn’t just a demographic trend; it’s a critical workforce planning issue that demands strategic action.
Why the Ageing Workforce Matters
Older workers bring deep institutional knowledge, resilience, and strong problem-solving skills, but as more approach retirement, organisations risk losing critical expertise. In sectors like manufacturing and utilities, the impact is already being felt, with rising vacancy durations and growing talent shortages.
Yet, the ageing workforce also presents an opportunity. If supported effectively, mid- and late-career professionals can enhance productivity, foster innovation, and contribute to the development of the next generation of talent.
Key Challenges for Employers
Despite the value older workers offer, several barriers persist:
- Talent shortages: Fewer younger people entering the workforce means talent pipelines are shrinking.
- Skill gaps: Rapid technological change can leave older employees behind without targeted upskilling.
- Bias and discrimination: Age-related assumptions can lead to under-investment in development and missed hiring opportunities. In fact, 50% of over-50s in England say they’ve experienced age discrimination in the past year.
Strategic Actions for HR and People Leaders
To build an age-inclusive workplace and unlock the full value of older talent, consider these strategies:
- Challenge age bias: Break assumptions around technology, flexibility, and absenteeism. Older workers are just as willing to learn — if given the chance.
- Personalise retirement planning: Not everyone wants to retire at 66. Offer flexible pathways, phased retirements, and open conversations.
- Support lifelong learning: Invest in continuous development and foster inclusive learning and development conversations for every career stage.
- Offer flexibility: Part-time roles, hybrid work arrangements, and job-sharing can help older employees balance health and caregiving responsibilities.
- Focus on health and wellbeing: Address the leading cause of early exits — health — through support for chronic conditions, menopause, and mental health.
- Plan for succession: Identify at-risk roles, enable knowledge transfer, and develop cross-generational pipelines.
- Broaden your talent search: Rethink recruitment strategies to actively attract older candidates and build more resilient teams.
- Use talent intelligence: Benchmark benefits and working patterns across age groups to remain competitive and inclusive.
- Facilitate knowledge transfer by involving older employees in mentoring, training, and documentation to safeguard institutional knowledge.
With the average age of the UK workforce set to rise to 44 by 2050, the time to prepare is now. A future-ready, age-inclusive workforce isn’t just good for business — it’s essential for long-term sustainability. Take the first step today by downloading our free guide to the ageing workforce.