As Indian businesses grapple with talent shortages, a critical question emerges: are management practices doing enough to retain experienced, older workers? New research highlights that a significant opportunity is being missed, but the solution lies in universal flexibility and smart work reorganisation.
The Stark Reality: Companies Are Not Prepared
A revealing 2022 study conducted for the Comité consultatif 45+ (Advisory Committee on Workers Aged 45 and Over) surveyed over 2,000 individuals aged 50 to 75 in Québec, alongside 279 private, public, and non-profit organisations. The findings are a wake-up call for global markets, including India's.
The research found that only 37 per cent of organisations had implemented specific measures to encourage employees aged 50 and over to stay. The private sector performed slightly better at 46 per cent, while the public sector lagged at a mere 24 per cent. This indicates a widespread failure to strategically manage an ageing workforce.
Prejudice remains a barrier. Many companies dismiss older workers or fail to incentivise them to stay. They often cease offering training, interesting projects, or mentoring opportunities to this group—despite the fact that mentoring can give work renewed meaning and encourage retention. Biases about their ability to innovate or master new technology persist, even as companies acknowledge their expertise and commitment, particularly in customer relations.
Why Workers Leave and What Would Make Them Stay
The employee survey revealed that while 26 per cent of retired respondents had extended their careers, half had no interest in continuing, suggesting a natural limit. However, for the other half, specific obstacles and incentives play a decisive role.
Reasons for retirement include the desire to travel or volunteer (30 per cent), a spouse's retirement (21 per cent), and caregiving responsibilities, which disproportionately affect women (12 per cent). Barriers to staying employed are significant: 37 per cent had early retirement options, 42 per cent were financially ready to retire, and many cited overload, fatigue, excessive mental strain (28 per cent), and health problems.
Notably, more women than men cited excessive mental strain (34 per cent vs 22 per cent) as a key reason for leaving.
The study clearly identified what would motivate older employees to remain:
- Phased retirement without an obligation to leave (54%)
- Opportunity to work as a self-employed consultant for the company (52%)
- Option to retire and return to a similar or different role (46%)
- Joining an on-demand expert pool (45%)
In terms of work organisation, the top motivator was the desire to transfer skills and knowledge (55%). This was followed by adapting the physical workload (45%), taking on training/supervisory roles (44%), access to training after 50 (42%), task time adjustments (40%), and reducing mental workload (39%).
A Blueprint for Indian Organisations: Universal Flexibility
The research provides a actionable blueprint for Indian companies. While personal factors are outside an employer's control, work organisation is not.
Organisations can proactively reduce physical and mental strain. They can develop different forms of reduced hours, such as a four-day week or extended holidays. Implementing flexible working hours, time banks, or allowing annualised hours can cater to diverse needs.
A crucial insight is that flexibility benefits all generations. Young employees seek time for study and travel, parents need work-life balance, and older workers pursue volunteering or other activities. By offering the same flexible measures to everyone, companies can avoid allegations of age-based favouritism while solving a critical retention problem.
Finally, companies must ensure greater recognition for experienced workers, entrust them with stimulating assignments, and instil a genuine sense of purpose in their roles. Only through these combined measures—universal flexibility, workload adaptation, and meaningful engagement—can organisations successfully retain their invaluable older workforce and turn the ageing demographic challenge into a competitive advantage.
