“Leaders who take steps now to destigmatise age, foster intergenerational connections and implement upskilling initiatives will reap the benefits and contribute to more inclusive and harmonious workplaces that will benefit us all.” Sonal Agrawal, AltoPartners Global Chair & Managing Partner at Accord India / AltoPartners India

This year, to celebrate the UN’s International Day of Older Persons on 1 October, AltoPartners asked 20 partners in 14 countries to share their experiences of placing candidates over the age of 50. Our findings in these key markets were mixed: some regions were ahead of the curve, already finding ways to make a multigenerational workplace thrive (admittedly out of necessity), while others clung tenaciously to an outdated idea of what constitutes an executive in their prime, even while struggling to fill key positions.

A global phenomenon in search of solutions

The global population is ageing at an unprecedented rate, with the number of people aged 65 and over projected to reach one in six globally by 2050. This demographic shift, driven by rising life expectancy and falling birth rates, presents both challenges and opportunities for businesses worldwide. Broadly speaking, there are three significant challenges faced by employers and their older employees:

• There are not enough young people. Many countries are experiencing a decline in birth rates, falling below the replacement fertility rate of 2.1. The result is a critical labour and skill shortage affecting diverse industries, from mining and engineering to insurance, hospitality, healthcare and tech.

• People are living longer than they can afford to. Advancements in healthcare and education are leading to longer and healthier lives globally. Few pension plans are designed to last for 40 years, especially in an inflationary, low-growth environment. If pension plans cannot keep up, older people will become dependent on the state or their families. Apart from the distress experienced by people who find themselves in these circumstances, an ageing population strains social security and healthcare systems, potentially leading to higher taxes and reduced government spending in other areas.

• Ageism is hard baked into many organisational cultures, structures and policies and is reflected in who is hired, the conditions of employment and the benefits offered. Many organisations still employ a mandatory retirement model that is better suited to the mid-20th century, with little regard for 21st-century advances in healthcare and technology. As a result, far too many people who are competent, energetic, and willing to mentor younger employees are lost to the system between the ages of 55 and 65. For those who are retrenched or lose their job from the age of 50 onwards, it is particularly difficult to find reemployment because of stigma and prejudice against older employees.

It’s time to rethink retirement

Mandatory retirement ages or client expectations of when employees should retire affect the hiring process. If a candidate is 58 and the company expects employees to retire at 60, there is just not enough runway for that candidate to perform optimally. If the candidate is exceptional and the need is pressing enough, exceptions will be made, but faced with this scenario, clients prefer to hire a younger candidate. Many companies get around this by terminating the employee’s formal employment contract and rehiring them as consultants or interim managers. Done correctly, this can be a win-win for both parties.

Providing a career glide path for older employees, allowing those in the 50 to 70 age group to transition from full-time employment to part-time retirement, goes a long way toward alleviating the worst of these challenges. In high-income countries, where average life expectancy ranges from between 84 and 87 (women typically live longer than men), retirees who exit the formal economy at 55 will need their savings to last around 33 years – which is a big ask, especially since the World Economic Forum is predicting that the number of people living to 100 years and older is expected to reach nearly 3.7 million globally in 2050.

In contrast, low to middle-income countries, particularly in Africa and parts of Asia and Latin America, are experiencing a demographic dividend. This refers to a period of accelerated economic growth resulting from a young and growing workforce. However, this advantage is temporary. As these populations age and the global talent pool shrinks, competition for skilled workers will intensify.

A fix within reach: the multigenerational workplace

While long-term solutions may lie in automation and digitisation on the one hand and immigration on the other, the former can be expensive, and the latter is subject to election manifestos and changes in government policy. Companies have far more control over a known quantity: their own employees.

Successful multigenerational workplaces don’t happen organically. They must be strategically driven. These are workplaces where active steps have been taken to attract and retain employees who span five generations.

The AltoPartners guide to making multigenerational workplaces work

• Rethink the traditional career model: Move away from the outdated “learn/earn/retire” model and recognise the value of older workers in the “grey zone” (ages 50–70) who can help address skills shortages as they transition into retirement at their own pace.

• Implement inclusive policies: Eliminate ageism by rethinking policies, benefits, and practices: mandatory retirement or exclusive benefits for younger employees, such as study loans and childcare, need to be reworked.

• Foster generational curiosity: Create opportunities for employees from different generations to collaborate and learn from each other, promoting mutual understanding and respect.

• Develop intergenerational mentoring programmes: Facilitate mentoring relationships where knowledge and skills are shared between younger and older employees, including reverse mentoring and job shadowing.

• Use technology to support, not exclude: Leverage technology to upskill older workers and adapt work environments (e.g., hybrid models, ergonomic adjustments) to ensure inclusivity and engagement across age groups.

• Select leaders with multigenerational mindsets: Choose adaptable leaders who are willing to challenge traditional career assumptions and who are committed to creating age-inclusive workplaces through education and awareness.

• Communicate intentionally: Acknowledge generational differences in communication styles and clarify expectations to foster effective collaboration.

• Understand what employees want: Tailor benefits and work conditions to the needs of different generations, such as flexibility for older employees or support for younger employees dealing with student debt and childcare. Managing and preventing burnout is also a key priority. Burnout is one of the main reasons why people – especially women - decide to exit the formal workplace in their mid-fifties.

The ageing workforce presents both challenges and opportunities. By embracing a multigenerational mindset, challenging ageist assumptions, and adapting workplace practices, organisations can unlock the potential of this valuable talent pool and create a more inclusive and successful future of work.

Read the full The Ageing Workforce : A dividend to be leveraged or an HR problem to be managed” Report here