Aging Workforce Poses ‘Unique Dilemma,’ but Some Employers Rise to the Opportunity

Media Contacts: Emily Gowdey-Backus, director of media relations, and Nancy Cicco, assistant director of media relations

In 20 years, the employment rate of senior citizens, those aged 65 and above, hasn’t just remained steady, it has steadily increased and is expected to continue to rise.

“Organizations are facing a unique dilemma: people are aging, but not retiring,” said Catherine Rymsha, a visiting faculty lecturer in management at UMass Lowell.

When the clock ticked from 1999 to 2000, 24.5% of the workforce was made up of employees aged 65-69 while those aged 70-74 made up 13.5%. A decade later, in 2010, those figures grew to 31.5% and 18%, respectively. U.S. Bureau of Labor Statistics figures for 2020 found one third of the labor force (33%) reflected workers aged 65-69 and 18.9%, nearly one in five, aged 70-74.

By 2030, the expected employment rate of those aged 65-69 will be 39.6% and 23.8%, nearly one quarter, for those aged 70-74.

For many employers, explained Rymsha, retention of retirement-age employees is a two-sided coin.

“While retaining talent is always a priority, aging talent, especially those in leadership roles, can be a detriment to future leaders. Younger talent will leave if they don’t see a path to leadership or growth opportunities,” she said.

And for members of the C-suite, she added, “it can be particularly hard to walk away from what they consider their legacy – work that enabled them to reach a pinnacle in their company or industry.”

On the flip side, she explained, some organizations have begun to create more paths of employment to ensure a flawless transition through all stages of life. These new tracts, some of which may be part time, include mentorship roles, emeritus status, and technical and thought leadership positions.

“This way, aging employees who are still considered experts can pass their knowledge on while remaining in high-level roles,” said Rymsha. “Plus, tracts like this can give people who are reticent to become managers new paths to aspire to.”

Catherine M. Rymsha, Ed.D., is a leadership expert, author, lecturer and TEDx speaker. With extensive experience in marketing and communications, she studies leadership, corporate succession and talent management.

To arrange an interview with Rymsha, contact Emily Gowdey-Backus or Nancy Cicco.