Successfully Aging Employees: What Makes Older People Productive at Work?

There is a stereotypical belief that the older an employee is, the more likely he/she is to be absent from work due to health problems. However, studies show that it often happens so that older team members get more engaged at work and this compensates for the health challenges they experience. Researchers have examined two factors that determine whether more senior staff members will be productive or, on the contrary, more likely to fall ill and miss work days.

Successful aging at work is when a person feels capable and engaged to employ his/her acquired competencies as long as possible. As the world is aging rapidly, this phenomenon becomes particularly relevant, however, differs depending on the country. The researchers from Lithuania, the USA, and Hong Kong, who conducted the study analyzed data from 36 countries, including the USA, all the European Union members and candidates, as well as Norway, Switzerland, and Great Britain.

The study showed that two types of personal resources are particularly important for older workers - physical resources (i.e. health) and motivational resources (i.e. engagement). Most importantly, broader societal factors shape these resources. One of the authors of the study, Professor Bernadeta Goštautaitė of the ISM University of Management and Economics, names two of these societal factors that determine how successfully people age at work.

"We analyzed the studied countries' health care expenditures per capita. We noticed that in countries with less health care spending, such as Romania, Hungary, and others, workers face significantly more physical health issues over the years, i.e. health deteriorates faster over the lifetime compared to countries that spend more on health care, such as Germany or France. In such countries, the health of workers deteriorates at a slower rate, as a result, they remain productive longer, even at an older age," said Prof. Dr. Goštautaitė.

The researchers also investigated the labor force participation rate – the proportion of the population that is economically active. A high labor force participation rate in a country usually reflects societal values, i.e. how much work or occupational activity is valued in a country. It turned out that in countries with high labor force participation rates, such as Sweden, older people become more engaged in work over the years. One possible explanation is that over the course of a career, employees seek out and prioritize activities that they find meaningful.

"In countries where more people are inclined to participate in work, they are more likely to look for meaningful activities at work and find them over time, for example by changing jobs until they find the one that suits them best. Therefore, the engagement of employees in work is generally higher in such countries. Ultimately, higher engagement also leads to successful aging at work - less frequent and shorter periods of sick leave."

According to Prof. Goštautaitė, since the aging of society and the shortage of workforce are an inevitable reality of the modern world, employers must learn how to deal with mature workers. Realizing that investments in employee health bring tangible positive results, responsible businesses should promote a healthy lifestyle among employees, ensure their physical activity, provide stress management programs, and promote a healthy diet.

Employers can also motivate their employees by fostering an inclusive culture and age diversity in organizations. This means that employees of all ages should feel involved at work and appreciated for their competencies, with training and investment in development provided where necessary, regardless of age.