28.11.2024 Gabriele Strasser 3821

Retain and motivate older employees

More employees are retiring than are coming onto the labor market. In addition, there is a strong willingness among employees to change jobs, which increases fluctuation. One solution: retaining and retaining older employees - even beyond retirement age.

Working longer is the trend

According to figures from the Cologne Institute for Economic Research (IW Köln), employees are staying active on the labor market much longer today than ten years ago. While only around four in ten people aged between 55 and 64 (43.3%) were employed and subject to social security contributions in 2013, this figure had risen to 57.1% by 2023. 

The IAB Short Report 8/22 looked at the motives for gainful employment in retirement, among other things. For most respondents aged between 65 and 74, enjoying work (97%), the need for a meaningful task (92%) and social contacts (91%) were the main reasons. Financial motives played a role for 43%.

Despite this trend, there is a gap in the labor market. More people are retiring than new workers are coming in - and the trend is rising. One way to reduce this gap in your own company is to make efforts to retain employees and recruit older employees.

What advantages do older employees have?

Nils Hofert, Head of HR, and Meike Bukowski, Head of HR Development at pme Familienservice, see many advantages in employing and retaining older team members: "Older team members have a wealth of experience and specialist knowledge that they have built up over many years. This know-how is invaluable. With their informal knowledge, they help younger colleagues to understand procedures, processes and informal rules and to find their way around. We also often find that they provide a lot of continuity and stability in the teams, which is very helpful in challenging times." 

Helpful: a "welcoming culture" for older people

Employees need to feel that their knowledge and skills are in demand and that they are needed. It is therefore important to approach people. "At pme, we signal to all team members that retirement doesn't have to be the end of the road. We proactively ask whether they can imagine staying longer and under what conditions," says Meike Bukowski.

But how can it be determined which employees are open to staying longer and under what conditions? 

It is advisable to address the topic personally, for example in employee appraisals. A survey of employees can also provide valuable information. A positive attitude that signals to employees is generally helpful: "We're happy for you to stay longer!"

What keeps and motivates older employees?

What keeps older employees in their jobs, possibly beyond retirement age? This was the question addressed by the TK Health Report 2024. The results are consistent with a survey conducted by pme Familienservice among its team members in summer 2024. 

More flexibility

In the TK Health Report 2024, more flexible working arrangements is the number one wish.
A trend that Meike Bukowski and Nils Hofert can confirm: "In the survey of our 50-plus team members, the desire for more flexible working models was mentioned particularly often". On the one hand, this includes flexibility in working hours, such as working in blocks with longer periods off, flexible working hour models or the offer of sabbaticals. 

Flexibility in terms of work location is also an attractive criterion for many older employees: in addition to home or mobile offices, workation is very popular. "Workation is not only interesting for working abroad. It also helps many team members to combine work with caring for a relative in another location," says Meike Bukowski. 

Health services/work-life balance

Maintaining or even improving health and employability is an important factor when it comes to successfully retaining and integrating older employees. In terms of a life-phase-oriented HR policy, it is important to examine which "age benefits" make sense - such as recreational or wellness programs, subsidies for age-specific aids or more vacation days for employees over a certain age. "Our internal survey showed that older employees also want consideration, for example for a slower working rhythm or physical changes due to age," say Meike Bukowski and Nils Hofert. They also often wanted more clearly defined tasks and fewer meetings. 

Meaningful tasks and appreciation

According to the TK Health Report, the meaningfulness of work is an important factor. The more meaningful people over 50 perceive their work to be, the later they plan to retire. The same applies to the culture of error and learning. 

Appreciation is also important: all employees need to feel that their knowledge and skills are in demand and that they are needed. This is especially true for older employees. Working at retirement age does not have to be a dead end. Many older employees want to develop further and are keen to take on new challenges.

Knowledge and generation management

There is an increasing focus on cooperation between the generations. Good collaboration is not a foregone conclusion. One example is the different communication styles: while Gen Z has grown up with social media and communicates naturally and confidently via digital messages, members of the baby boomer generation are more adept at face-to-face communication. In the sense of reverse mentoring, the respective strengths can be used profitably. 

Exchange opportunities, mentoring programs (reverse mentoring) or tandems are helpful in promoting cooperation between the generations. "At pme Familienservice , we rely on a wide range of measures. These include exchange formats such as the regular generation talk, mentoring programs and training to become a generation manager," says Meike Bukowski.

The Cologne Institute for Economic Research recommends creating incentives for older employees to contribute their experience for longer, e.g. through further training and knowledge management programs. This allows employees to continue to make their expertise, experience and networks available.

"We rely on a wide range of measures to promote cooperation between the generations"

Information on pensions and earning opportunities

The abolition of the supplementary income limit makes it more attractive to continue working in retirement. But the pension regulations are a closed book for many employees. It is therefore a good service to provide them with information on pensions and earning opportunities in old age. 

Older employees as a target group for new hires

Retaining older employees will not be enough to meet the demand for skilled workers in many companies. However, when it comes to external recruiting, many employers still think primarily of attracting young talent. However, there are many well-trained and experienced people who, after many years in the job, are looking for a new role in another company.  

Sources:

TK Health Report 2024

IAB Brief Report 8/22

KOFA Compact 4/2024: Older employees in the labor market