Guy Garnett delves into the intriguing trend of retirees reentering the workforce, a movement spurred by labor shortages and economic challenges.
A Surprising Shift in Recruitment Trends
According to recent LinkedIn research, nearly 75% of UK businesses are recruiting retirees to combat labor shortages. Major companies like EasyJet, Halfords, and McDonald’s are actively seeking older workers, marking a notable shift in hiring strategies.
This trend is a departure from decades of prioritizing younger generations in hiring. So, what’s fueling this transformation?
The Roots of the Labor Shortage
Two major events—Brexit and the Covid-19 pandemic—have reshaped the UK labor market. The end of free movement limited access to EU migrant workers, creating a talent gap in many industries.
Moreover, the Office for National Statistics (ONS) reports a troubling rise in long-term sickness, with half a million more people out of work compared to pre-pandemic levels. The most significant health decline is among 25- to 34-year-olds, worsening workforce challenges.
This labor shortage has prompted employers to consider older demographics. For retirees and those over 50, returning to work provides financial relief amid the cost-of-living crisis and a chance to regain economic stability.
The Benefits of Hiring Older Workers
Employers increasingly appreciate the value older workers offer: extensive experience, diverse skills, and valuable institutional knowledge. However, hiring from this group requires careful attention to fairness and inclusivity.
Tackling Unconscious Bias in Recruitment
While hiring retirees is promising, it also highlights potential issues like unconscious bias:
- Confirmation bias: Assumptions about older workers’ abilities may unfairly eliminate them before interviews.
- Similarity bias: Younger hiring managers might prefer candidates who share their backgrounds, excluding older applicants.
To counteract this, businesses should:
- Review job descriptions for age-coded language.
- Standardize interview processes by asking all candidates the same questions.
- Evaluate candidates based on skills and qualifications, not subjective views.
Diversity as a Driver of Innovation
Inclusivity is not just ethically right; it’s a business boon. Studies indicate diverse teams can generate up to 19% more innovation revenue. With older workers joining the workforce, businesses can access a wider array of perspectives and experiences.
This recruitment trend may prompt overdue discussions about eradicating ageism, fostering a culture that values contributions from all age groups.
Looking Ahead
The trend of hiring "ex-retirees" is more than a temporary solution; it’s a call for organizations to rethink recruitment and inclusivity. As older workers demonstrate their value, workplaces may evolve to support a truly multigenerational workforce.
For now, this trend presents a positive opportunity for both employers grappling with labor shortages and retirees seeking renewed purpose and financial stability.
By Guy Garnett, Principal Consultant at New Street Consulting Group.
