How an ageing workforce is influencing reward and benefits strategy
Employers today are continually challenged to adapt their strategies to meet the evolving needs of the workforce. One significant demographic shift that is increasingly influencing organisational dynamics is the ageing workforce. As people are living longer and having to work longer, employers must reassess their reward and benefits strategies to attract, retain and engage employees.
Flexibility and customisation
An ageing workforce brings diverse needs and preferences. With younger people now having the poorest mental health of any age group, the priority for this generation is likely to centre on workplace culture, development and mental health support, while older workers may value health benefits and retirement planning options.
Gone are the days when people hit retirement age and stopped work completely. In fact, easing into retirement is often better for employee health in the long run. Employers will need to adopt a more flexible approach to rewards and benefits, offering customisable packages that cater to the varying needs of different age groups.
This could involve providing options for part-time or flexible working, phased retirement plans, and personalised benefits packages tailored to individual life stages.
Health and wellbeing initiatives
As employees age, maintaining and improving their health becomes increasingly important. Living longer has meant working longer, and this has a huge impact on lifestyle.
The older we get, the more likely we are to experience ill-health. But people are working longer and are also enjoying life outside of work in ways they perhaps wouldn’t have done in previous years.
Private medical healthcare and group risk insurance will become expensive options as premiums increase to take account of the ageing workforce. Employers will need to look for new ways to support the health and wellbeing of their workforce.
This may include access to preventative healthcare services, wellbeing programmes, enhancing existing employee assistance programme (EAP) offerings and bespoke support to enable older employees to continue working productively as well as enjoying a full life outside work. Employers will need to focus more on prevention to mitigate ill health and associated treatment costs.
Health and wellbeing services for families
While the older generation don’t seem to struggle as much with their mental health as the younger generation, they may be worried about their children’s mental health. This is where EAPs and healthcare plans that cater for families and dependents could be welcomed by an ageing workforce.
With more children living at home for longer, supporting their financial needs and getting them into work has never been more important. This is why employers offering support, and mental health support in particular for families of employees can be an extremely valuable benefit for older employees.
Recruitment, retention, recognition
With age comes experience, which generally demands greater pay. But at a time when employees are in demand and salaries are unable to keep up with inflation and the cost of living, employers need to think creatively to attract and retain talent – particularly when it comes to older, more experienced employees.
Sickness, injury or disability is the main reason why adults aged between 50 and 64 might not be in work. Employers need to offer health benefits that address the needs of older employees, helping them back into work and ensuring they remain there. Older employees bring valuable experience, expertise, and knowledge to the workplace, and it’s essential for employers to recognise and appreciate their contributions.
As the workforce continues to age, employers must adapt their reward and benefits strategies to accommodate the needs of these individuals. By embracing flexibility, prioritising health and wellbeing and recognising contributions, employers can effectively navigate the impact of an ageing workforce and create a workplace that fosters engagement, retention and productivity for all employees.
In partnership with HCML
HCML is a health and wellbeing provider, offering integrated and personalised healthcare solutions.
